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Wednesday 21 January 2026
Rapids Theatre owner and co-defendant sentenced for defrauding COVID programs out of more than $1.8 millionRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that John L. Hutchins, 72, of Lewiston, NY, and Roberto Soliman, 45, of Niagara Falls, NY, who were convicted of conspiracy to commit wire fraud and bank fraud, were sentenced by Judge Meredith A. Vacca. Hutchins was sentenced to serve 14 months in prison, while Soliman was sentenced to serve 20 months. Both defendants were also ordered to pay full restitution to the Small Business Administration and the victim banks.
Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose, who handled the case, stated that between March 2020, and March 2024, Hutchins and Soliman conspired with others to file fraudulent loan applications to obtain money through Economic Injury Disaster Loans (EIDL), the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG). The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). Hutchins and Soliman applied for loans under the following companies, which were owned by Hutchins:
• Rapids Theatre Niagara Falls, USA, Inc.
• 1711 Main, LLC
• Bear Creek Entertainment, LLC
• Hutch Enterprises, LLC
• The Hutchins Agency, LLC
• CWE Entertainment, Corp. (owned by defendant Soliman)
Between March and August 2020, Hutchins and Soliman received Economic Injury Disaster Loans totaling $779,500.00, SVOG loans totaling $989,905.05 and PPP loans totaling $115,978. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications.
“These defendants conspired with others to take advantage of government programs designed to assist struggling businesses during the COVID 19 epidemic,” stated U.S. Attorney DiGiacomo. “By submitting false and fraudulent applications, Hutchins and Soliman lined their own pockets, thereby depriving struggling businesses that were actually eligible for this money.
“Hutchins and Soliman abused a system of benefits put in place specifically for businesses experiencing hardships. Instead of using the money legitimately, the pair stole nearly $2 million from the program while others still waited in line. Today’s sentencing means that each of these fraudsters will now face the punishment of their illicit, greedy behavior,” said Harry T. Chavis, Jr., Special Agent-in-Charge of IRS-CI New York.
The sentencings are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Philip Tejera, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry Chavis, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline.
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Putnam County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Richard Charles Cart, 42, of Poca, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on February 28, 2025, Cart sold a Ruger model LCP .380-caliber pistol at a pawn shop in Charleston.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Cart knew he was prohibited from possessing a firearm because of his prior felony convictions for grand larceny in Kanawha Circuit Court on May 23, 2022, and for possession of methamphetamine in Jackson County, Georgia, Superior Court on August 8, 2019.
United States Attorney Moore Capito made the announcement and commended the investigative work of the Kanawha County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney JC MacCallum 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 (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. 2:25-cr-108.
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Ponzi Schemer Admits Bilking Investors in Missouri, Elsewhere out of $25 MillionRead the Press Release
ST. LOUIS – A former Texas-based investment adviser on Wednesday admitted running a Ponzi scheme that cost investors in Missouri and elsewhere more than $25 million.
Siddharth Jawahar, 38, pleaded guilty in U.S. District Court in St. Louis to three counts of wire fraud.
Jawahar ran a Texas-based investment company called Swiftarc Capital LLC. He initially invested in a diverse array of securities, but in 2015, began investing client funds in a single investment, Philip Morris Pakistan (PMP). Eventually, 99% of client funds were consolidated into PMP. When the value of PMP declined, Jawahar did not tell investors, instead claiming that shares were trading at a much higher price and that they were making profits. Jawahar used money from new investors to repay older investors and to fuel an extravagant lifestyle that included flights on private planes, stays at luxury hotels and expensive outings at fancy restaurants.
Jawahar on Wednesday also admitted misleading investors by falsely entering into agreements in which he agreed to invest their money in a specific company or companies, including one Missouri investor who gave him $175,000, another Missouri investor who gave him $75,000, a New York investor who handed over $350,000 and an Ohio investor who gave him $250,000. Jawahar never made the promised investments.
From about July 2016 through December 2023, Jawahar took in more than $35 million from Swiftarc investors but invested only about $10 million.
Jawahar also managed additional entities that he utilized during his scheme, including Swiftarc Fund LP, Swiftarc LLC, Swiftarc Holdings, SJ Investment Holdings LLC, Order of Magnitude Ventures LLC, Extra Sensory Perception Inc., Swiftarc Growth Fund LP, Swiftarc Opportunities Fund LP, SJ Investment Holdings LLC, SV Labs SPV 1 LP, Swiftarc Venture Labs Fund GP LLC, SJDB Ventures LLC, Swiftarc Ventures LLC, Swiftarc Venture Labs Fund LP, Swiftarc Telehealth Labs Fund LP, NI Stubbs LLC and Swiftarc Beauty Fund LP.
Jawahar is scheduled to be sentenced on April 21. The wire fraud charges are each punishable by up to 20 years in prison and a $250,000 fine, or both. He will also be ordered to repay investors.
The FBI and the Manhattan District Attorney’s Office investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Penitas resident sentenced for impeding federal law enforcement during arrest of othersRead the Press Release
BROWNSVILLE, Texas – A 19-year-old South Texas man has been ordered to federal prison for interfering with officers in the course of their duties, announced U.S. Attorney Nicholas J. Ganjei.
Diego Masiel Torres pleaded guilty Oct. 29, 2025.
U.S. District Judge Rolando Olvera has now ordered Torres to serve six months in federal prison. At the hearing, the court described Torres’ conduct as unlawful towards someone performing their official duties. In handing down the sentence, the court noted his sentence is warranted as no one is above the law.
“There is, at present, an unfortunate belief that the public can freely obstruct law enforcement from carrying out their duties, and do so without consequence. Today’s sentence shows just how mistaken that belief is," said Ganjei. “If you want to express your disagreement with a particular federal law or policy, there is a right way to do so, and a wrong way — and tangling with the police is one hundred percent always the wrong way. Today, Mr. Torres learned that lesson the hard way.”
“Those who endanger our agents and undermine the safety of our communities will face serious consequences,” said acting Special Agent in Charge John A. Pasciucco of HSI San Antonio. “Interfering with federal law enforcement is a grave offense, and today’s sentencing makes clear that such actions will be met with swift and decisive justice.”
On Aug. 27, 2025, authorities were conducting a consensual worksite enforcement operation in Harlingen. Upon their arrival, several people fled from the area. While authorities attempted to apprehend an illegal alien, Torres attempted to physically interfere by trying to remove the individual from custody and placing the law enforcement officer in a chokehold. Additional agents intervened and subsequently arrested Torres.
He has been and will remain in custody.
Immigration and Customs Enforcement - Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney L. Salazar 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.
Passaic County Man Sentenced for Fentanyl Distribution and Money Laundering ConspiracyRead the Press Release
A New Jersey man was sentenced today to 12 years in prison following his conviction for drug trafficking conspiracy and international promotional money laundering conspiracy.
According to court documents and statements made in court, William Panzera, 53, of North Haledon, was a member of a drug trafficking organization responsible for the importation and distribution of hundreds of kilograms of fentanyl analogues. Panzera and other members of the conspiracy agreed to import and distribute controlled substances and analogues, including fentanyl analogues, MDMA, methylone and ketamine. The co-conspirators placed orders with a source in China and agreed to distribute, and did distribute, the controlled substances and analogues in New Jersey, both in bulk and in the form of counterfeit pharmaceutical pills that actually contained fentanyl analogues. In total, they imported over a metric ton of fentanyl-related substances and other drugs into the United States. They also sent hundreds of thousands of dollars to China using wire transfers and Bitcoin to pay for the drugs.
Panzera was convicted at trial in January 2025. Eight other defendants have previously pleaded guilty in related cases.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Senior Counsel Philip Lamparello of the U.S. Attorney’s Office for the District of New Jersey made the announcement.
The Newark Field Division of Immigrations and Customs Enforcement Homeland Security Investigations (HSI) led the investigation, with assistance from HSI in Philadelphia, the FBI Newark Field Office, U.S. Postal Inspection Service Newark Field Office, IRS-Criminal Investigation, U.S. Customs and Border Protection in New Jersey, New York and Kentucky, the Newark Police Department and the Essex County Prosecutor’s Office.
This case is being prosecuted by Deputy Chief Stephen Sola of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorney Sammi Malek and Special Assistant U.S. Attorney Alexander Hasapidis-Sferra for the District of New Jersey. Financial Investigator Kathryn Montemorra of MNF supported the investigation.
Panama City Felon Indicted for Unlawful Possession of a FirearmRead the Press Release
TALLAHASSEE, FLORIDA – John D. Ford, 50, of Panama City, Florida, has been indicted in federal court for possession of a firearm by a convicted felon. John P. Heekin, United States Attorney for the Northern District of Florida announced the charge.
Ford appeared in federal court for his arraignment before United States Magistrate Judge Martin A. Fitzpatrick in Tallahassee, Florida. Jury trial is scheduled for February 23, 2026, at 8:30 am before District Court Judge Mark E. Walker in Tallahassee, Florida.
Ford faces up to 15 years’ imprisonment if convicted.
The case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bay County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney James A. McCain.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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, human and drug trafficking.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
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.
Owner of Money Service Business Unlawfully Residing in the United States Sentenced for Conspiring to Launder Drug ProceedsRead the Press Release
PORTLAND, Ore.— A Guatemalan national unlawfully residing in the United States was sentenced to federal prison today for laundering money for drug traffickers in the Portland metropolitan area through her money service business La Popular.
Brenda Lili Barrera Orantes, 40, was sentenced to 41 months in federal prison and three years of supervised release.
According to court documents, Barerra Orantes owned and operated La Popular stores in Hillsboro, Beaverton, Woodburn, Odell, and Canby, Oregon, as well as in Vancouver, Washington. From August through November 2024, La Popular stores sent over $4.2 million dollars through wire transfers to places in Mexico associated with drug trafficking. During this same time period, Barrera Orantes and other co-conspirators accepted $49,500 in cash that was represented as drug proceeds and laundered it through La Popular stores.
Barrera Orantes accepted cash she believed was generated from drug dealing, and in exchange for a 10% commission, conducted wire transactions using techniques that made the laundered funds harder to detect, including using false sender information, structuring wire transfers into smaller amounts, and using different La Popular stores to help conceal the drug proceeds.
On April 16, 2025, investigators executed federal search warrants at Barrera Orantes’ Beaverton residence and three La Popular stores in Beaverton, Hillsboro, and Vancouver and arrested Barrera Orantes. During the warrants, agents seized more than $300,000 in cash, a 2021 Cadillac Escalade, jewelry, and high-end clothing.
On May 13, 2025, a federal grand jury in Portland returned a 23-count indictment charging Barrera Orantes with money laundering and conspiracy, failure to file a currency transaction report, and failure to file a suspicious activity report.
On October 24, 2025, Barrera Orantes pleaded guilty to one count of conspiracy to launder monetary instruments. She also agreed to forfeit her Beaverton residence and all the seized cash and other property involved in her money laundering offense.
This case was investigated by the Internal Revenue Service, Criminal Investigation, Homeland Security Investigations, the Federal Bureau of Investigation, and the Westside Interagency Narcotics Team. Assistant U.S. Attorneys Christopher L. Cardani and Julia Jarrett prosecuted the case.
Operation Tidal Wave: Seven Indicted in $7.1 Million Money Laundering Conspiracy Following Investigation That Resulted in One of the Largest-Ever Firearms Seizures in the History of the Northern District of New YorkRead the Press Release
ALBANY, NEW YORK – Iziah Cox, 38, of Albany, Kaya Cox, 41, of Albany, Sincere Cox, 26, of Albany, Davion Carrington, 38, of Albany, Jahmell Manso, 27, of Albany, Tiffany Banks, 42, of Albany, and Tamicca Jennings, 34, of Troy, New York were charged last week with conspiring to launder $7.1 million in proceeds of a complex fraud scheme with victims from all over the world, according to an indictment unsealed earlier today. Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation (“FBI”), made the announcement.
The indictment is the latest result in the Operation Tidal Wave investigation led by the U.S. Attorney’s Office and the FBI’s Albany Regional Financial Crimes Task Force that resulted in the seizure of 135 firearms last August. See https://www.justice.gov/usao-ndny/pr/two-albany-men-charged-fraud-investigation-resulted-one-largest-ever-firearms-seizures.
According to the indictment and documents previously filed in the case, Iziah Cox and his coconspirators were part of a scheme to defraud businesses, individuals, and financial institutions and launder over $7.1 million in illegal proceeds through transactions designed to conceal and disguise the nature, location, source, ownership, and control of their ill-gotten gains. The victims of the fraud were located all over the world, and many of them were businesses that were victimized by business email compromises (“BECs”). Through these BECs, the businesses received an email that appeared to be from a legitimate company with which they had an ongoing financial relationship. But the email accounts were controlled by members of the conspiracy, who instructed the businesses to wire future payments to bank accounts controlled by other coconspirators. To make the bank accounts appear legitimate and trick the victims and financial institutions into authorizing the payments, the conspirators registered “doing business as” (“DBA”) entities, in Albany County and elsewhere, in the names of real companies from all over the world. Those DBA registrations were then used by the conspirators to open bank accounts in the names of those companies, which in turn were used to receive and rapidly disburse the fraud proceeds.
The investigation began last summer after a local financial institution, headquartered in Albany, New York, alerted the FBI to a series of account openings and fraudulent financial transactions at its Capital Region branches. On August 19, 2025, the FBI’s Albany Regional Financial Crimes Task Force, which is comprised of members of local, state, and federal agencies, executed search warrants at numerous locations throughout the Capital Region. In executing those warrants, agents uncovered and seized a total of 135 firearms, including machineguns, high-capacity magazines, and firearms with obliterated serial numbers.
Iziah Cox was separately charged by the grand jury with illegal possession of a firearm as a felon in connection with the firearms seizure.
“I commend the tireless work of my Assistant U.S. Attorneys, the FBI, the IRS, and the Albany and Troy Police Departments in spearheading this investigation and terminating this worldwide fraud scheme,” Acting U.S. Attorney Sarcone said. “I also thank our local banking partners for their hawkish effort in spotting this scheme, which ultimately led to law enforcement seizing scores of dangerous firearms and getting them off our streets. We have all saved lives here.”
FBI Special Agent in Charge Craig L. Tremaroli stated: “This meticulous investigation produced one of the largest weapons seizures in the Northern District of New York, and today’s indictments illustrate the staggering depth of the alleged financial fraud that led to that seizure. The alleged scheme was complex, but thanks to our invaluable private sector and state and local law enforcement partnerships – especially the Capital Region Crime Analysis Center – these individuals are all facing serious federal charges and our communities are undoubtedly safer. This investigation should send a very strong message that the FBI will not tolerate any criminal looking to fund their illicit business on the backs of hardworking Americans.”
Troy Police Chief Dan DeWolf said “the excellent partnerships with our Federal, State and local law enforcement partners are the reason for this very successful investigation. The arrests of several unscrupulous defendants and the large seizure of firearms certainly help make our communities much safer. I’m proud and grateful for the hard work of all those involved in bringing this investigation to a triumphant finish.”
Albany Police Chief Brendan Cox said, “Operation Tidal Wave indictment represents the culmination of an extensive multi-agency investigation. The message is clear, criminal activity of this magnitude will not be tolerated. We are grateful for our strong partnership with our federal, state and local law enforcement partners, whose combined efforts were critical in the success of this operation.”
The money laundering conspiracy charge carries a maximum sentence of 20 years in prison, a fine of up to $500,000, and a term of supervised release of up to three years. The firearm charge against Iziah Cox carries a maximum sentence of 15 years, 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 particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines and other factors.
The charges in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The FBI and its Albany Regional Financial Crimes Taskforce is investigating the cases, with assistance from Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, the New York State Comptroller’s Office, the Albany County Sheriff’s Office, the Albany Police Department, the Troy Police Department, the New York State Police, and the Capital Region Crime Analysis Center and the New York State Intelligence Center. Assistant U.S. Attorneys Benjamin S. Clark, Matthew M. Paulbeck, and Joshua R. Rosenthal are prosecuting the cases.
Oklahoma Man Charged with Threatening on YouTube to Kill Federal Agents and OthersRead the Press Release
Note: View complaint here.
A federal criminal complaint has been unsealed charging Taylor Ryan Prigmore, 30, of McLoud, Oklahoma, with threatening to kill federal agents and others.
“As attacks on law enforcement rise around the country, this Department of Justice will continue to identify and prosecute violent threats against the brave men and women who keep us safe,” said Attorney General Pamela Bondi. “Hiding behind a screen will not protect you from severe legal consequences.”
“This individual allegedly made statements that he would kill ICE agents and others. If you threaten to harm law enforcement officers, the FBI and our partners will find you and hold you accountable,” said FBI Director Kash Patel. “There will be no free passes for threats against the hard-working men and women who wear the badge and protect our communities.”
According to court records, on Jan. 17, the FBI received information from Google regarding several threatening statements made by a YouTube user. The YouTube account holder — alleged to be Prigmore — posted several comments on videos between May 9, 2025, and Jan. 17 threatening to kill Immigration and Customs Enforcement (ICE) agents and others. Court records further reflect that Prigmore left eight threatening comments last week alone expressing his desire to kill federal agents and others. Prigmore also threatened to kill any law enforcement officers that came to his residence, stating he would kill “as many as possible.”
On Jan. 19, Prigmore was charged by complaint with communicating a threat through interstate commerce. He was arrested by the FBI the same day. He appeared yesterday before a U.S. Magistrate Judge for the Western District of Oklahoma and was ordered detained pending trial. If found guilty as charged, Prigmore faces a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Robert J. Troester for the Western District of Oklahoma joined in making today’s announcement.
The FBI Oklahoma City Field Office’s Joint Terrorism Task Force investigated the case, with assistance from Homeland Security Investigations and the Oklahoma Highway Patrol.
Assistant U.S. Attorneys Arvo Mikkanen and Matt Dillon for the Western District of Oklahoma are prosecuting the case.
A complaint merely contains allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Pleads Guilty to Fentanyl CrimesRead the Press Release
CHARLESTON, W.Va. – Roderick Tyrone Boyd, 30, of Vandalia, Ohio, pleaded guilty today to distribution of fentanyl and to aiding and abetting the distribution of fentanyl.
According to court documents and statements made in court, on March 26, 2025, Boyd aided and abetted another individual in the sale of fentanyl and distributed a quantity of fentanyl on April 26, 2025. Both transactions occurred in Cross Lanes, West Virginia.
Boyd is scheduled to be sentenced on May 19, 2026, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a fine of up to $1 million.
United States Attorney Moore Capito made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting 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. 2:25-cr-165.
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New York Men Plead Guilty to Mortgage Fraud Conspiracy to Buy Illegal Marijuana Grow HousesRead the Press Release
BANGOR, Maine: Two New York men pleaded guilty today in U.S. District Court in Bangor to conspiring to defraud Maine banks of mortgage funding to buy houses used to illegally cultivate marijuana.
According to court records, Tony Liang, 37, of Brooklyn, New York, orchestrated the conspiracy to fraudulently obtain over half a million dollars in residential mortgage loans from two Maine banks. Liang and co-conspirators used the funds to purchase properties in Bucksport, Eddington, and Canaan. Throughout the loan application process, Liang emailed and DocuSigned materially false information to the banks, including by creating and submitting fake documentation. Liang and his co-conspirators misrepresented to the banks that the three properties would be used as residences. Instead, each property was used to illegally cultivate and manufacture marijuana.
Liang also pleaded guilty to maintaining a marijuana-involved premises at the Bucksport property. Liang maintained that property from January 2021 through February 2022 for the purpose of manufacturing marijuana, until a severe house fire disrupted the operation. The State Fire Marshal’s Office investigated the fire, discovering the remains of the illegal marijuana grow. The surviving portion of the property was filled with grow materials, chemicals, and high-powered lighting. Charred marijuana plants, processed marijuana, and hydroponics equipment also were found.
Yongliang Deng, 35, of Queens, New York, provided his personal information and government-issued identification documentation to Liang, who used Deng’s information from November through December 2020 to apply for and obtain a residential mortgage loan from a Maine bank to buy the Eddington property. Deng used his own bank accounts to make the down payment and pay the closing costs required for the purchase, with money received through Liang. Deng granted a mortgage to the Maine bank for the Eddington property. He obtained the mortgage by misrepresenting that he would occupy and use the property as his primary residence. Liang agreed to pay Deng money each month in exchange for Deng nominally holding the property as its owner. In May 2024, federal law enforcement agents interviewed Deng. During the interview, Deng admitted that the property in Eddington was an investment which had been rented out, and that he had never resided there.
Neither defendant nor any property associated with the conspiracy was licensed through the Maine Office of Cannabis Policy.
Liang and Deng each face up to 30 years in prison and a maximum fine of $1 million for the mortgage fraud conspiracy. Liang also faces 20 years in prison and a maximum fine of $500,000 for maintaining the marijuana-involved premises. Each defendant will be sentenced after the completion of presentence investigative reports 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.
The FBI, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and IRS-Criminal Investigations investigated the case, with assistance provided by the Penobscot County Sheriff’s Office and the Maine Fire Marshal’s Office.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. The Maine HSTF comprises agents and officers from FBI; HSI; DEA; IRS-Criminal Investigations; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Diplomatic Security Service; U.S. Customs and Border Protection; U.S. Border Patrol; Coast Guard Investigative Service; and Transportation Security Administration, with the prosecution being led by the United States Attorney’s Office for the District of Maine.
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New York Man Who Used Stolen Identities in U.S. Postal Service Fraud Scheme Sentenced to 2 Years in Federal PrisonRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that EZEKIEL BAILEY, 33, of Brooklyn, New York, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to 24 months of imprisonment and one year of supervised release for using stolen identities to defraud the U.S. Postal Service.
According to court documents and statements made in court, the U.S Postal Inspection Service began an investigation after receiving reports that an individual had been passing, and attempting to pass, bad checks to purchase thousands of dollars in postage stamps from U.S. Post Offices in Connecticut and surrounding states. The investigation revealed that Bailey had used the identities of three separate victims, fake driver’s licenses, and checks linked to empty bank accounts that had been created in the victims’ names, to purchase or attempt to purchase $134,297 in stamps from U.S. Post Offices in Connecticut, Rhode Island, New York, Massachusetts, and elsewhere.
On January 20, 2023, Bailey was arrested on related state charges after he attempted to purchase 25 books of postage stamps for $300 at post office in Stonington. He possessed two fake driver’s licenses in the names of identity theft victims at the time of his arrest. He was charged federally on November 26, 2024.
On September 15, 2025, Bailey pleaded guilty to aggravated identity theft, an offense that carries a mandatory term of imprisonment of two years.
This investigation was conducted by the U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Daniel George.
New Jersey Man Charged with Federal Hate Crimes for Targeting Jewish VictimsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Terence G. Reilly, announced today the unsealing of an Indictment charging ALAZIM BAKER with two counts of committing hate crimes in connection with his assaults of Jewish victims in Manhattan on October 27, 2025. BAKER was arrested this morning and will be presented later today before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge Arun Subramanian.
“As alleged, Alazim Baker deliberately targeted Jewish victims with violence,” said U.S. Attorney Jay Clayton. “Violence motivated by antisemitism or any other anti-faith bias has no place in this great city. Our collective strength as a city is the result of mutual respect for each other’s beliefs and rule of law. The women and men of our Office are dedicated to protecting life, property and faith.”
“Alazim Baker allegedly committed despicable hate crimes against multiple members of the Jewish community,” said FBI Assistant Director in Charge Terence G. Reilly. “Hate crimes like those in this indictment tear at the fabric of our communities. The FBI remains dedicated to holding perpetrators of these offenses accountable to deliver justice for victims and reaffirm to the American people that targeted violence will not be tolerated.”
According to the allegations in the Indictment, other public filings, and statements previously made on the record in this case:[1]
On October 27, 2025, BAKER approached a visiting Israeli rabbi (Victim-1) while Victim-1 was walking on the block of a well-known kosher restaurant in Manhattan. BAKER repeatedly and aggressively asked Victim-1, “What is your religion?” When they approached the restaurant, BAKER refused to let Victim-1 enter. BAKER then grabbed Victim-1’s yarmulke and threw it on the floor. He then stomped on the yarmulke and spit on it before punching Victim-1 in the face. The punch caused Victim-1 to fall to the ground and into the bike lane. While Victim-1 was lying on the ground and bleeding, Baker yelled toward Victim-1, in sum and substance: “let me spit on that Jew.” The punch left bruises on Victim-1’s face and knee and resulted in Victim-1 suffering a brain bleed.
BAKER also made antisemitic statements to two individuals who sought to intervene to help Victim-1—both of whom were wearing yarmulkes. BAKER yelled, in sum and substance: “your people own everything,” “I want my reparation,” and “I’m going to jail today.” BAKER punched one of the intervening individuals (Victim-2) in the head, causing pain and swelling for several days. The other individual (Victim-3) observed brass knuckles on BAKER’s hand. After punching Victim-2, BAKER aggressively pursued Victim-3, who collided with a large, hard object while evading BAKER. The collision caused serious swelling and bruising on Victim-3’s leg for several days. During this part of the interaction, Victim-1 ran for safety into the restaurant.
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BAKER, 29, of Irvington, New Jersey, is charged with two counts of committing hate crimes, each of which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the FBI and thanked the Manhattan District Attorney’s Office, the New York City Police Department, and the Port Authority Police Department for their assistance.
The prosecution of this case is being handled by the Office’s Civil Rights and Human Trafficking Unit in the Criminal Division. Assistant U.S. Attorneys Sam Adelsberg and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Montgomery County Man Who Fraudulently Obtained More Than $240,000 in Disability Benefits from the VA Sentenced to 18 Months in PrisonRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Victor Milbourne, 52, of King of Prussia, Pennsylvania, was sentenced today to 18 months in prison, three years of supervised release, $241,690 in restitution, a $20,000 fine, and a $1,000 special assessment by United States District Judge Paul S. Diamond for defrauding the Department of Veterans Affairs (VA) out of approximately $241,260 in benefits.
The defendant was charged by indictment in August 2022 and pleaded guilty in September of last year to 10 counts of theft of government funds.
As detailed in court filings and admitted to by the defendant, from December 1, 2013, through December 1, 2022, Milbourne knowingly defrauded the VA by claiming that he was severely disabled and unable to work due to service-connected injuries, in order to receive disability benefits to which he was not entitled.
In reality, the defendant led a very active lifestyle, including international travel, running his own business, and doing intensive physical workouts multiple times a week. Milbourne used the funds he stole from the VA to support his preferred lifestyle, including frequent dinners out and luxury vacations.
This case was investigated by the Department of Veterans Affairs Office of Inspector General and FBI Philadelphia’s Fort Washington Resident Agency and prosecuted by Special Assistant United States Attorney Laura Bradbury and Assistant United States Attorneys Anthony Scicchitano and MaryTeresa Soltis.
Monessen Resident Indicted for Violating Federal Narcotics and Firearms LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Monessen, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, First Assistant United States Attorney Troy Rivetti announced today.
The three-count Indictment named Anthony Crews, 52, as the sole defendant.
According to the Indictment, on or about June 25, 2025, Crews possessed with intent to distribute crack cocaine. The defendant is also charged with possessing a firearm in furtherance of a drug trafficking crime and possession of a firearm and ammunition after having been convicted of multiple prior felonies, including on state aggravated assault, drug trafficking, and firearm offenses. Crews also was previously convicted on a federal drug trafficking offense. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $5.5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney V. Joseph Sonson is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Minneapolis Gang Member Convicted of Murder and RICORead the Press Release
Following a two-week trial, a federal jury in Minneapolis convicted William Johnson today for his involvement in a violent Minneapolis street gang and a gang-related murder in August 2021.
“This is the Criminal Division’s fifth successful trial against members of this violent Minneapolis gang,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Department’s firm resolve to stop violent crime in Minneapolis and around the country remains a top priority of this Administration. We will continue to obtain justice for crime victims in Minneapolis and around the country to halt senseless gang killings wherever they occur.”
“This conviction reflects sustained effort by investigators and prosecutors,” said Special Agent in Charge Travis Riddle of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) St. Paul Field Division. “These cases do not end with a single verdict. ATF and our partners will continue holding every individual involved in this RICO conspiracy accountable for their actions.”
“Criminal gangs who threaten and terrorize our communities will be tracked down and held accountable by the FBI and our partners,” said Acting Assistant Director Mark Remily of the FBI’s Criminal Division. “The danger the Highs have brought onto our streets will not be tolerated. Today’s conviction is another step in dismantling these criminal enterprises and stopping their acts of violence.”
“William Johnson and the Highs criminal street gang did not simply commit isolated acts of violence — they imposed control through killings, robberies, and assaults, leaving the entire community to live under threat,” said Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS-CI) Chicago Field Office. “This conviction holds Johnson accountable for a murder carried out to advance a violent criminal enterprise that treated fear as a tool and human life as disposable. IRS-CI will continue working alongside our federal, state and local partners to dismantle these organizations at every level. We will follow the money, expose the structure behind the violence, and help ensure that gangs that terrorize communities in Minnesota are brought to justice.”
“Today’s conviction should put violent gang members on notice. The U. S. Postal Inspection Service will target anyone who uses the U. S. Mail to conduct and fund illegal criminal enterprises,” said Inspector in Charge Bryan Musgrove of the U. S. Postal Inspection Service Denver Division. “Residents deserve to feel safe in their communities. We remain dedicated to tracking criminals down and bringing them to justice, no matter their affiliation.”
According to court documents and evidence presented at trial, William Johnson, 35, of Minneapolis, was a member of the Highs — a criminal gang that controlled territory north of West Broadway Avenue in Minneapolis. Highs members committed murders, firearms crimes, burglaries, assaults, and robberies on behalf of the gang. As part of his membership, the gang expected Johnson to retaliate against their rivals, namely, the Lows gang, which operated south of West Broadway Avenue.
As proven at trial, the gang war between the Highs and Lows escalated when on Aug. 7, 2021, a prominent Highs member was shot and killed by a Lows member at a gas station — a notorious High’s hangout. The next day, Highs members organized a memorial for the deceased member at the gas station. During the memorial, they distributed firearms and told one another to retaliate against Lows members for the murder. Defendant Johnson and other Highs conspirators all attended.
Later that day, Johnson and two other Highs members went looking for Lows members to shoot and kill. Johnson drove himself and others to Skyline Market, a well-known favorite Lows’ hangout. Seeing the victim and mistakenly believing him to be a Lows member, they shot at him inside of the store. The victim ran from the store and into the street where another Highs member was driving two juveniles in a stolen Porsche. The juveniles exited the vehicle and chased the victim into a nearby alley where they fired additional shots at him. He died at the scene. Johnson drove the two Highs members away and back to the memorial site.
The defendant faces a maximum penalty of life in prison. His sentencing date has yet to be set by the court. Two other defendants in prior trials in this case, Dantrell Johnson and Gregory Hamilton, have already been sentenced to life in prison. A third co-defendant, Keon Pruitt, was sentenced to over 37 years in prison. Numerous other Highs members have been sentenced to penalties in excess of ten years.
To date, 42 Highs members or associates have been convicted of federal charges.
The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U. S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U. S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to the investigation.
Trial Attorneys Brian Lynch and Alyssa Levey-Weinstein of the Justice Department’s Violent Crime & Racketeering Section and Assistant U. S. Attorneys Albania Concepcion, Carla J. Baumel, and Rebecca E. Kline of the District of Minnesota are prosecuting the case.
Middle District of Florida U.S. Attorney’s Office Collects More Than $47.8 Million in Civil and Criminal Actions in Fiscal Year 2025Read the Press Release
Tampa ― U.S. Attorney Gregory W. Kehoe announced today that the Middle District of Florida (MDFL) collected $47,802,832.17 related to local criminal and civil matters in the fiscal year ending September 30, 2025 (FY 2025). Of this amount, $35,353,280.69 was collected in criminal cases and $12,449,551.48 was collected in civil actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $163,931,176.51 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to civil recoveries in local cases noted above, the District’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $151,481,625.03 in FY 2025 in these jointly handled cases.
“The Middle District of Florida has a proud record of achievement in the recovery of losses suffered by crime victims and federal programs damaged by white collar fraud schemes,” said U.S. Attorney Kehoe. “The substantial criminal and civil penalties collected in the past fiscal year is tangible evidence of our commitment to this vitally important part of our district’s mission.”
U.S. Attorneys’ Offices, along with the Department’s litigation divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The MDFL’s Asset Recovery Division, led by Acting Chief Nicole Andrejko, recovered a total of $35,393,845.89. This amount has two components―criminal monetary penalties and forfeiture. First, in addition to the $35,353,280.69 in criminal monetary penalties collected in cases prosecuted by the District, the Asset Recovery Division worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $40,565.20 in criminal monetary penalties in cases pursued jointly by these offices.
Additionally, the District’s Asset Recovery Division, working with partner agencies, forfeited $28,968,242 from criminal and civil asset forfeiture actions in FY 2025. For instance, in FY 2025, $22,441,475 forfeited in the MDFL was returned to victims of the criminal offenses, and more than $2,203,808 was shared with federal, state, and local law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Significant Affirmative Civil Enforcement Cases
United States ex rel. Novak v. Walgreens Boots Alliance
Case no. 1:15-cv-5452 (N.D. Ill.)
Four independent qui tam whistleblowers filed lawsuits under the False Claims Act in various districts around the country, including one in the Middle District of Florida captioned United States ex rel. K&V Group v. Walgreens Boots Alliance, et al., case no. 8:19-cv-2736-MSS-CPT (M.D. Fla.). Each whistleblower alleged that Walgreens had engaged in a nationwide scheme to defraud federal and state healthcare programs by dispensing dangerous opioid medications pursuant to facially illegitimate prescriptions. Working jointly with the Department of Justice Civil Frauds Section and Federal Programs Branch, as well as with a number of other U.S. Attorneys’ Offices around the country, the Middle District of Florida investigated these claims and corroborated the allegation that Walgreens had ignored “red flags” associated with opioid prescriptions on a nationwide basis, and falsely billed government programs for having dispensed those medications. The United States transferred the qui tam cases to the Northern District of Illinois where Walgreens is headquartered and filed a complaint in January 2025. In April 2025, the United States announced a settlement of these allegations in return for $350 million, in what is the largest civil Controlled Substances Act settlement in MDFL history.
Press release: https://www.justice.gov/opa/pr/walgreens-agrees-pay-350m-illegally-filling-unlawful-opioid-prescriptions-and-submitting
United States ex rel. Kane v. Semler Scientific, Inc.
Case no. 3:16-cv-1516 (M.D. Fla.)
A whistleblower filed a complaint in the Jacksonville Division of the Middle District of Florida alleging that Semler Scientific, a manufacturer of a device used for non-invasive vascular testing services, conspired with a distributor of the device (C.R. Bard, Inc.), to defraud Medicare through a scheme that falsely billed federal healthcare programs for testing services used in assessing certain arterial diseases. Working jointly with the Department of Justice Civil Frauds Section, the MDFL Civil Division corroborated the allegation that these defendants caused false billings to the Medicare program for services that did not meet the program’s reimbursement requirements. On September 26, 2025, the United States announced settlements with Semler Scientific and Bard to resolve these claims for $29.75 million and $7.2 million, respectively.
Press release: https://www.justice.gov/opa/pr/semler-scientific-inc-and-bard-peripheral-vascular-inc-pay-nearly-37m-resolve-false-claims
United States ex rel. Stuckmeyer et al. v. LiveCare Health
Case no. 8:22-cv-1880 (M.D. Fla.)
In August 2022, a whistleblower filed a lawsuit under the False Claims Act in the Middle District of Florida alleging that LiveCare had entered into an agreement with a marketing company that violated the federal anti-kickback statute. In July 2023, LiveCare made a voluntary disclosure of an agreement that paid a marketing company a flat rate for lead generation services. LiveCare cooperated with the government’s investigation and in December 2024, agreed to pay the United States $4.9 million to resolve the claims in full.
Press release: https://www.justice.gov/usao-mdfl/pr/livecare-inc-agrees-pay-49-million-resolve-false-claims-act-allegations
United States v. Mahir Taneja
Case No. 8:21-cv-2102 (M.D. Fla.)
The United States filed a civil suit in the Middle District of Florida in January 2021 alleging that a Tampa investor, Mahir Taneja, had conspired with Larry Smith and Smith’s pharmacy, Oldsmar Pharmacy, LLC, as well as with a marketing company, Centurion, Inc., to defraud the TriCare health program through a kickback scheme associated with compounded pain creams. Smith resolved the civil claims against him through an ability to pay agreement that paid the government $600,000. After four years of litigation, the United States announced a settlement that paid $2 million in resolution of its claims with Taneja.
Press release: https://www.justice.gov/usao-mdfl/pr/tampa-man-agrees-pay-us-government-2-million-his-role-medical-kickback-scheme
Brandon Eye Associates, LLC and Pinellas Eye Care, P.A.
Working jointly with the DOJ Civil Frauds Section, the Middle District of Florida’s Civil Division investigated allegations that two Tampa Bay area ophthalmology practices, Brandon Eye Associates and Pinellas Eye Care, had defrauded the Medicare and Medicaid programs by submitting false claims for reimbursement of ultrasound procedures that were medically unnecessary, premised upon false diagnoses, and arose from unlawful kickback arrangements. The allegations were corroborated, and ultimately the government’s claims under the False Claims Act were resolved in two separate agreements, with Brandon Eye and Pinellas Eye Care for $1.3 million and $615,000, respectively.
Press release: https://www.justice.gov/usao-mdfl/pr/florida-ophthalmology-practice-agrees-pay-615000-resolve-allegations-fraudulent-claims
https://www.justice.gov/usao-mdfl/pr/florida-ophthalmology-practice-agrees-pay-13m-resolve-allegations-fraudulent-claims
New Horizons Computer Learning Center.
The Middle District of Florida’s Civil Division participated in a national investigation into allegations that franchises of a federally subsidized provider of computer technology training had defrauded the Veterans Administration’s subsidy program in various ways, notably by paying improper incentives to recruiters for the program and by defying program rules governing the numbers of veterans who could participate in the program on a subsidized basis at any given time. The government’s claims against the Jacksonville franchise of New Horizons were resolved pre-suit for $500,000.
Press release: https://www.justice.gov/usao-mdfl/pr/new-horizons-computer-learning-center-jacksonville-and-owner-resolve-gi-bill
Mexican Felon Sentenced to 32 Years in Federal Prison for Possessing Multiple Firearms, Selling MethamphetamineRead the Press Release
SAN ANTONIO – A Mexican national was sentenced in a federal court in San Antonio today to 384 months in prison for selling methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and illegal re-entry into the United States.
According to court documents, Ricardo Mujica-Calderon, 36, sold methamphetamine from his vehicle at a motel in San Antonio in January 2022. During a search warrant on his residence in April 2022, Mujica-Calderon fled through his backyard and was located approximately one block away. He falsely identified himself with a Mexican ID card in another person’s name. During his transport to jail, Mujica-Calderon slipped his left handcuff and became violent with a law enforcement officer, who was able to re-secure Mujica-Calderon.
In the search of Mujica-Calderon’s home, Drug Enforcement Administration agents found 13 kgs of methamphetamine in a guest bedroom closet and five firearms in the master bedroom, several of which were loaded with extended magazines. Also in the master bedroom, DEA agents discovered a safe containing approximately 192.5 grams of methamphetamine and 227.7 grams of cocaine, as well as $12,725 and a semi-automatic pistol that had been reported stolen.
Mujica-Calderon was named in a six-count indictment on May 4, 2022. On Oct. 17, 2025, he pleaded guilty to one count of possession with intent to distribute more than 500 kgs of a mixture or substance containing methamphetamine, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of illegal re-entry into the United States. U.S. District Court Judge Jason K. Pulliam presided over the case.
“This successful prosecution of a felon with multiple convictions for illegal re-entry, assault of a family member, and a DWI with a child under 15 years of age is a great example of the level of collaboration that can be achieved between federal, state, and local law enforcement,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “In the Western District of Texas, we will continue to work with all of our law enforcement partners to hold criminal illegal aliens accountable for poisoning our communities and committing violent crimes.”
“Mujica-Calderon profited from peddling poison in our San Antonio neighborhoods,” said DEA Special Agent in Charge of the San Antonio Division Miguel Madrigal, "When DEA agents searched his home, they found not only lethal drugs but also numerous firearms, some of which were stolen. We've seen time and time again that when drugs and guns are together, violence is always looming. There will never be a place for those who bring about devastation to our communities.”
“ICE will continue working with our law enforcement partners to identify illegal aliens who are not only illegally present in this country, but also commit crimes and endanger our communities,” said ICE San Antonio Enforcement and Removal Operations Field Office Director Miguel Vergara. “ICE placed a detainer on this criminal illegal alien. Upon his release from custody, he will be transferred to ICE and deported to his home country.”
The DEA, ICE, Texas Department of Public Safety, and Devine Police Department investigated the case.
Assistant U.S. Attorney Eric Yuen 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 (TCOs), and protect our communities from the perpetrators of violent crime.
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Mentmore Man Sentenced for AssaultRead the Press Release
ALBUQUERQUE – A Mentmore man was sentenced to 37 months in prison for assaulting and strangling the victim and causing substantial bodily injury
There is no parole in the federal system.
According to court records, on December 5, 2024, Alery Al Reid, 27, an enrolled member of the Navajo Nation, punched, strangled and threatened to kill Jane Doe.
Reid subsequently pled guilty to assault of an intimate partner by strangling and assault of an intimate partner resulting in substantial bodily injury. Upon his release from prison, Reid will be subject to three years of supervised release.
First Assistant U.S. Attorney Ryan Ellison and Justin A. Garris, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Mark A. Probasco is prosecuting the case.
McLoud Man Charged with Threatening to Kill Federal Agents and Others on YouTubeRead the Press Release
OKLAHOMA CITY – A federal criminal complaint has been unsealed charging TAYLOR RYAN PRIGMORE, 30, of McLoud, Oklahoma, with threatening to kill federal agents and others, announced U.S. Attorney Robert J. Troester.
“As attacks on law enforcement rise around the country, this Department of Justice will continue to identify and prosecute violent threats against the brave men and women who keep us safe,” said Attorney General Pamela Bondi. “Hiding behind a screen will not protect you from severe legal consequences.”
“This individual allegedly made statements that he would kill ICE agents and others. If you threaten to harm law enforcement officers, the FBI and our partners will find you and hold you accountable,” said FBI Director Kash Patel. “There will be no free passes for threats against the hard-working men and women who wear the badge and protect our communities.”
According to court records, on January 17, 2026, the FBI received information from Google regarding several threatening statements made by a YouTube user. The YouTube account holder—alleged to be Prigmore—posted several comments on videos between May 9, 2025, and January 17, 2026, threatening to kill Immigration and Customs Enforcement (ICE) agents and others. Court records further reflect that Prigmore left eight threatening comments last week alone expressing his desire to kill federal agents and others. Prigmore also threatened to kill any law enforcement officers who came to his residence, stating he would kill “as many as possible.”
On January 19, 2026, Prigmore was charged by Complaint with communicating a threat through interstate commerce. He was arrested by the FBI the same day. He appeared before a U.S. Magistrate Judge yesterday and was ordered detained pending trial. If found guilty as charged, Prigmore faces up to five years in federal prison, and a fine of up to $250,000.
The public is reminded that this charge is merely an allegation, and that the defendant is innocent unless and until proven guilty beyond a reasonable doubt.
The FBI Oklahoma City Field Office’s Joint Terrorism Task Force investigated the case, with assistance from Homeland Security Investigations and the Oklahoma Highway Patrol. Assistant U.S. Attorneys Arvo Mikkanen and Matt Dillon are prosecuting the case.
Reference is made to public filings for additional information.
The federal criminal complaint can be accessed here.
Massachusetts Man Pleads Guilty to Animal Welfare Act ViolationRead the Press Release
PROVIDENCE – A Massachusetts man has pleaded guilty in federal court in Rhode Island for sponsoring and exhibiting roosters in an animal fighting venture, announced United States Attorney Charles C. Calenda.
Luis Castillo, 35, pleaded guilty to violating the Animal Welfare Act, in connection to his role and participation in a cockfighting derby in 2022. Castillo admitted travelling from Massachusetts to Rhode Island and bringing roosters to cockfight for sport, wagering and entertainment. He will be sentenced on April 21, 2026. The sentences imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Senior Trial Attorney Gary Donner and Assistant Chief Stephen Da Ponte of the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John McAdams for the District of Rhode Island prosecuted the case.
This case was investigated by the Department of Agriculture’s Office of Inspector General, the Postal Inspection Service, and the Food and Drug Administration’s Office of Criminal Investigation. Valuable assistance was provided by the U.S. Marshals Service, U.S. Fish and Wildlife Service’s Office of Law Enforcement, U.S. Customs and Border Protection, Rhode Island State Police, Massachusetts State Police, Animal Rescue League of Boston’s Law Enforcement Division, Rhode Island Society for the Prevention of Cruelty to Animals and Providence, Woonsocket, and Attleboro Police Departments.
Maryland U.S. Attorney’s Office Announces Recent Prosecutions in Connection with DOJ Take Back America InitiativeRead the Press Release
Greenbelt, Maryland – U.S. Attorney Kelly O. Hayes announced today, the U.S. Attorney’s Office for the District of Maryland’s recent prosecutions in connection with the Department of Justice’s Operation Take Back America.
Hayes announced the superseding indictment and sentences with Acting Field Office Director Vernon Liggins, U.S. Immigration and Customs Enforcement (ICE-ERO) – Baltimore Field Office.
U.S. District Judge Deborah K. Chasanow recently sentenced Edwin Armando Sanchez-Montiel, 32, a national of El Salvador residing in Silver Spring, Maryland, to 16 1/2 months in federal prison for re-entry of an alien removed after being convicted of accessory after the fact to first degree murder in Montgomery County, Maryland, an aggravated felony.
Additionally, U.S. District Judge Deborah L. Boardman recently sentenced Cesar Odilo Contreras-Lopez, 27, a Guatemalan national residing in Hyattsville, Maryland, to 63 days in federal prison for re-entry of an illegal alien after a prior removal.
In addition, a federal grand jury recently indicted Willians Elenilson Beltran-Quintanilla, 39, of El Salvador, charging him with illegally re-entering the United States after two prior removals.
These cases are 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.
U.S. Attorney Hayes commended ICE-ERO for its work in these investigations. Ms. Hayes also thanked the Assistant U.S. Attorneys who prosecuted these federal cases.
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 and justice.gov/usao-md/community-outreach.
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Man Sentenced to 25 Months in Federal Prison for Failing to Register as Sex OffenderRead the Press Release
PIERRE - United States Attorney Ron Parsons announced today that U.S. District Judge Eric C. Schulte has sentenced a South Dakota man convicted of Failure to Register as a Sex Offender. The sentencing took place on January 20, 2026.
David George Flute, III, 36, was sentenced to two years and one month in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Flute was indicted for Failure to Register as a Sex Offender by a federal grand jury in June 2025. He pleaded guilty on October 20, 2025.
Flute was previously convicted of Aggravated Sexual Abuse of a Child. Due to this conviction, he is required to register as a sex offender. Flute has seven prior convictions for Failure to Register as a Sex Offender and is well-aware of his obligation to register and to keep his registration current. Following his most recent release from federal prison on November 11, 2024, Flute decided to abscond from probation and remain on the lam until located and arrested by United States Marshals in Sioux Falls on May 21, 2025.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Flute was remanded to the custody of the U.S. Marshals Service to serve his federal sentence.
This case was brought as a 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. Attorney’s Offices and the DOJ’s Child Exploitation and Obscenity Unit 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.
Mexican National Sentenced to Sixteen Months in Prison Following Armed Standoff with Law EnforcementRead the Press Release
GAINESVILLE, FLORIDA – Camerino Perez Perez, a/k/a “Squirrel,” 42, of Mexico, was sentenced to sixteen months in prison after previously pleading guilty to possession of a firearm and ammunition by an alien unlawfully in the United States. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “This case demonstrates the remarkable danger our law enforcement officers face on a daily basis, and I applaud the skill and professionalism with which they acted to incapacitate this violent, armed illegal alien. My office will continue to deliver successful prosecutions like this one to fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America from the violent criminal aliens who have illegally entered our country and who threaten the safety of our communities.”
Court documents reflect that on May 25, 2025, the defendant was holding a loaded rifle when law enforcement responded to a residence in Levy County for a domestic disturbance call. The defendant had to be tased after he refused to comply with law enforcement’s instructions in English and Spanish to drop the firearm and then flipped a table towards the law enforcement on scene. After the defendant was detained, law enforcement found an additional twenty-four rounds of ammunition in his pocket. The defendant, a citizen and national of Mexico, is prohibited from possessing a firearm and ammunition because he entered the United States illegally and was not authorized to remain in the United States.
The defendant will be held for deportation proceedings at the conclusion of serving his federal sentence.
The case involved a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Levy County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Adam Hapner.
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, human and drug trafficking.
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 http://www.justice.gov/usao/fln/index.html.
Local Restaurateur Sentenced for Filing False Tax ReturnsRead the Press Release
BOSTON – The former owner of two restaurants was sentenced today in federal court in Boston for filing false tax returns.
Remigijus Mikelenas, 55, of Gilford, N.H., formerly of Canton, Mass. was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison, to be followed by one year of supervised release. Mikelenas was also ordered to pay more than $800,000 in restitution to the Internal Revenue Service and more than $100,000 in restitution to the Commonwealth of Massachusetts. In August 2024, Mikelenas was arrested and charged with three counts of filing false tax returns.
Mikelenas was the owner of a café and a juice bar in Canton. Between approximately 2012 through 2020, Mikelenas deliberately failed to report more than $3.5 million in gross receipts at his businesses to the Internal Revenue Service (IRS). As a result, Mikelenas avoided paying more than $820,000 in federal income taxes.
During the investigation, Mikelenas told an undercover agent posing as a prospective buyer for the businesses, that he regularly underreported his gross receipts to the IRS and showed the agent a copy of the “real” books that reflected the businesses’ true earnings. During the meeting, Mikelenas asked the agent whether he worked for the IRS, and added, “If I get caught, I’ll be screwed.”
United States Attorney Leah B. Foley and Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Leader of Terrorist-Designated Mexican Drug Cartel Indicted in Washington D.C.Read the Press Release
WASHINGTON – Armando Gomez Nunez, a Mexican national and senior leader of the Cartel de Jalisco Nueva Generacion (CJNG), was charged in a two-count indictment unsealed today in U.S. District Court with conspiracy to distribute cocaine, fentanyl, and methamphetamine for importation into the United States and carrying and using firearms, including machine guns and destructive devices, in furtherance of a drug trafficking offense, announced U.S. Attorney Jeanine Ferris Pirro.
“President Trump has made it clear that we will pursue every legal avenue to hold transnational criminal organizations accountable for their crimes against the American people,” said U.S. Attorney Pirro. “Now one of the most dangerous criminals in Mexico is in U.S. custody as we continue our fight against one of the largest, most violent drug trafficking organizations in the Western Hemisphere.”
CJNG is one of the largest and most violent drug trafficking organizations operating in Mexico and is responsible for exporting tonnage quantities of cocaine, methamphetamine, and illicit opioids into the United States. CJNG was designated by the U.S. Department of State as a Foreign Terrorist Organization (FTO) for conducting intimidating acts of violence, including attacks on Mexican military and police with military grade weaponry, the use of drones to drop explosives on Mexican law enforcement and assassinations or attempted assassinations of Mexican officials.
Gomez Nunez, aka “Delta 1” and “Maximo,” is the reputed leader and commander of Los Deltas, a violent enforcement and assassination cell of CJNG. Mexican authorities arrested Gomez Nunez in December 2025. He is one of 37 Mexican nationals who arrived in the United States on Jan. 20, 2026 following their expulsion by Mexico.
“Securing the largest transfer to date of fugitives from Mexico to the United States is another victory in the Department of Justice’s battle to eliminate transnational criminal organizations and secure our border,” said U.S. Attorney General Pamela Bondi. “Mexico’s use of its National Security Law to transfer these 37 fugitives ensures that justice will neither be delayed nor denied. With great thanks to our law enforcement partners and the Government of Mexico, the Department of Justice intends to move swiftly to prosecute each fugitive to the fullest extent of the law.”
This transfer marks only the third time that Mexico has used its National Security Law to expel fugitives to the United States. It is also the largest such transfer of fugitives to occur—the first transfer, on Feb. 27, 2025, involved 29 fugitives, and the second, on Aug. 12, 2025, involved 26 fugitives.
The investigation is being conducted by the Drug Enforcement Administration, FBI, U.S. Marshal’s Service, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations. It is being prosecuted by the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
u.s._v._gomez_nunez_-_superseding_indictment_-_foreperson_redacted_002.pdfLead Narcotics Distributor for the Violent H-2 Drug Trafficking Organization Transferred from Mexico to Face Narcotics Trafficking and Firearms Charges in Federal Court in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, Jair Francisco Patron Tobias, also known as “Crixus,” “Junior,” and “Gannicus,” was arraigned on an indictment charging him with participating in a large-scale narcotics distribution conspiracy and using one or more firearms in connection with those narcotic offenses. The defendant, a Mexican citizen, was arrested in Mexico on a provisional arrest warrant issued from the Eastern District of New York and transferred from Mexico to the United States on January 20, 2026. Today’s proceeding was held before United States Magistrate Judge James R. Cho. The defendant was ordered detained pending trial.
Patron Tobias was among 37 Mexican nationals who were transferred to the United States from Mexico yesterday to face a range of federal criminal charges around the country.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Associate Chief of Operations, U.S. Drug Enforcement Administration, Northeast Region (DEA), and Anthony Chrysanthis, Special Agent in Charge, DEA, Los Angeles Field Division which oversees the Las Vegas District Office (DEA), announced the arraignment.
“As alleged in the indictment and court filings, the defendant was one of the lead drug distributors for a vicious cartel responsible for sending massive quantities of dangerous drugs into the United States,” stated United States Attorney Nocella. “Today’s arraignment in a U.S. courtroom is the first step in holding him accountable for his serious crimes and the immense harm that he has caused. Our Office is working with federal and international partners to dismantle drug cartels and prosecute high-level drug traffickers responsible for flooding our country with dangerous drugs that leave death in their wake.”
Mr. Nocella thanked the DEA’s offices in Mexico City, Mexico and New York, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, and the Government of Mexico for their invaluable assistance.
“Once again we see the power of collaboration between our DEA’s offices, the HSTF, and our law enforcement partners in holding accountable those who traffic illicit narcotics while using violence, intimidation, and fear as a means to push their poison into American communities” stated DEA Northeast Regional Associate Chief of Operations Tarentino. “The DEA is committed to targeting those drug trafficking organizations and individuals, like Jair Francisco Patron Tobias, who are responsible for causing the most harm. This is the DEA’s focus, both here and abroad, and we will continue this fight until we have a drug-free America.”
“In recent years and through today, our country has suffered one of the biggest and most destructive drug crisis ever imagined. DEA is tackling this problem head on, and with urgency. Working in conjunction with national and international partners, we are intent on dismantling these violent global drug networks. They unleash poison onto our streets, lining their pockets with no regard to human suffering. Make no mistake, the heads of these drug emporiums will be held accountable. Today’s indictment of an alleged narcotics kingpin is just one example of more to come,” stated DEA Los Angeles Special Agent in Charge Chrysanthis.
According to the indictment and other court filings, the defendant was a lead distributor for the H-2 Drug Trafficking Organization (the H-2 DTO), a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico. The H-2 DTO was previously led by the defendant’s father, Juan Francisco Patron Sanchez, also known as “H-2,” who was killed in 2017. After Juan Francisco Patron Sanchez’s death, his brother Jesus Ricardo Patron Sanchez (the defendant’s uncle) assumed principal leadership over the H-2 DTO. The H-2 DTO had numerous distribution cells in the United States, including in New York, Los Angeles, Las Vegas, Ohio, Minnesota, and North Carolina. The DEA estimates that between January 2013 and February 2017, the H-2 DTO distributed, on a monthly basis, hundreds of kilograms of heroin, cocaine, and methamphetamine, as well as thousands of kilograms of marijuana, into the United States and earned millions of dollars in illegal proceeds in return. The H-2 DTO used firearms and physical violence in furtherance of its drug trafficking operation.
Between June 2013 and December 2016, the defendant directed the distribution of large quantities of cocaine, heroin, methamphetamine, and marijuana from Mexico throughout the United States, including the Eastern District of New York. The defendant also coordinated money laundering activities of the H-2 DTO to ensure the proceeds of their drug trafficking were transferred back to Mexico. The defendant worked closely with his father and uncle to expand the H-2 DTO’s power and territory by prohibiting rival drug trafficking organizations from manufacturing heroin.
This prosecution is also 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 charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi D. Berenson, Raffaela S. Belizaire, and Andrew D. Wang are in charge of the prosecution.
The Defendant:
JAIR FRANCISCO PATRON TOBIAS
Age: 31
MexicoE.D.N.Y. Docket No. 16-CR-241 (S-2) (CBA)
La Jolla-Based Couple Charged with $100 Million FraudRead the Press Release
SAN DIEGO – Brett Rosen and Deborah Rosen of La Jolla were indicted by a federal grand jury on charges that they, through their joint investment business, RB Capital Partners, Inc., engaged in a years-long securities fraud and money laundering scheme.
According to the 24-count indictment, since 2020, the Rosens engaged in a market manipulation scheme through financing, promoting, and selling the stock of six publicly traded companies – Optec International, Inc., Sunshine Biopharma, Inc., BlockQuarry Corp., Solar Integrated Roofing Corp., Cyberlux Corp., and Ilustrato Pictures International, Inc.
The indictment alleges that the Rosens’ promotions of these companies provided false and misleading information to investors, potential investors, and the market about their financing of and stock positions in these companies. The false and misleading information was designed to encourage the public to invest in these companies while the Rosens secretly dumped their own stock in these companies to make millions of dollars.
According to the indictment and court documents, the Rosens used the profits of their massive securities fraud scheme to fund their lofty lifestyle, including to purchase a multi-million dollar home in La Jolla Shores.
The United States acknowledges the assistance and cooperation of the Securities and Exchange Commission and the Criminal Prosecution Assistance Group of the Financial Industry Regulatory Authority.
This case is being prosecuted by Assistant U.S. Attorneys Janaki G. Chopra and Joseph S. Smith.
DEFENDANTS Case Number 26-CR-0192-DMS
Brett David Rosen Age: 45 La Jolla, CA
Deborah Rachel Rosen Age: 44 La Jolla, CA
RB Capital Partners, Inc. La Jolla, CA
CHARGES
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalties: Five years in prison; $250,000 fine
Securities Fraud, in violation of 15 U.S.C. §§ 78(b), 78ff & 17 C.F.R. §. 240.10b-5
Maximum Penalties: Twenty years in prison; $5 million fine
Conspiracy to Launder Monetary Instruments, in violation of 18 U.S.C. § 1956(h)
Maximum Penalties: Twenty years in prison; $500,000 fine or twice the amount of the criminally derived property involved in the transaction
Money Laundering, in violation of 18 U.S.C. § 1957
Maximum Penalties: Ten years in prison; $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Justice Department Files False Claims Act Complaint Against Priority Hospital Group and Three Long Term Care HospitalsRead the Press Release
WASHINGTON — On Jan. 16, the United States filed a complaint under the False Claims Act against Priority Hospital Group LLC (PHG), a Louisiana-based hospital management company, three PHG-managed long term care hospitals, and a doctor, alleging False Claims Act violations based on medically unnecessary care and patient referrals in violation of the Anti-Kickback Statute and Stark Law.
Long term care hospitals (LTCHs) provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. Medicare reimburses LTCHs based, in part, on a patient’s length of stay. According to the United States’ complaint, PHG and the LTCH defendants allegedly held patients in the hospital longer than medically necessary in order to increase their Medicare reimbursement. The United States alleges that PHG and the LTCH defendants delayed discharging certain patients, even when their course of treatment had been completed or when they could have been transferred to a lower level of care, because doing so would have resulted in lower payments from Medicare.
The United States’ complaint also alleges that one LTCH, Riverside Hospital of Louisiana, entered into medical directorship agreements with a doctor, and provided him other remuneration, to induce him to refer patients to Riverside in violation of the Anti-Kickback Statute and Stark Law.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration of items or services covered by Medicare and other federally funded programs. The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Medicare patients deserve to receive care based on their clinical needs, not the financial interests of a hospital or doctor,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department is committed to pursuing cases where financial interests have improperly influenced the medical decision-making of providers participating in federal health care programs.”
“Billing federal healthcare programs for medically unnecessary treatment undermines the viability of those programs and exploits our most vulnerable citizens,” said U.S. Attorney Zachary A. Keller for the Western District of Louisiana. “Our Office will continue to combat fraudulent billing by unravelling these schemes and holding the perpetrators accountable.”
“Schemes that involve false claims and unlawful referrals erode the integrity of federal health care programs and betray the trust placed in providers,” said Acting Deputy Inspector General for Investigations Scott J. Lampert at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “The False Claims Act is a critical tool for protecting Medicare and ensuring that patient care decisions are driven by medical necessity—not financial gain. HHS-OIG will continue to work with or partners to hold accountable those who put profits over patients.”
The LTCHs named in the United States’ complaint are: Riverside Hospital LLC and Riverside Hospital of Louisiana, Inc. (collectively doing business as Riverside Hospital); Post Acute Enterprises, LLC (doing business as Mid Jefferson Extended Care Hospital); and New Lifecare Hospital of North Louisiana, LLC (doing business as Ruston Regional Specialty Hospital).
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Michaela DeVos, a former employee of Riverside Hospital. Under the False Claims Act, private parties file an action on behalf of the United States and receive a portion of the recovery. The False Claims Act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the False Claims Act, the United States may recover three times the amount of its losses plus applicable penalties.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of Louisiana (W.D. La.) are handling the matter with assistance from HHS-OIG. The case is captioned United States ex rel. DeVos v. Priority Hospital Group LLC, et al., No. 20-cv-01041 (W.D. La.).
This case is being handled by Trial Attorney Emily Bussigel of the Justice Department’s Civil Division and Assistant U.S. Attorney Melissa Theriot for the Western District of Louisiana.
The claims asserted in the complaint are allegations only, and there has been no determination of liability.
###
CONTACT
Public Affairs
United States Attorney’s Office
Western District of Louisiana
www.justice.gov/usao-wdla
Twitter @USAO_WDLA
Justice Department Files False Claims Act Complaint Against Priority Hospital Group and Three Long Term Care HospitalsRead the Press Release
On Jan. 16, the United States filed a complaint under the False Claims Act against Priority Hospital Group LLC (PHG), a Louisiana-based hospital management company, three PHG-managed long term care hospitals, and a doctor, alleging False Claims Act violations based on medically unnecessary care and patient referrals in violation of the Anti-Kickback Statute and Stark Law.
Long term care hospitals (LTCHs) provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. Medicare reimburses LTCHs based, in part, on a patient’s length of stay. According to the United States’ complaint, PHG and the LTCH defendants allegedly held patients in the hospital longer than medically necessary in order to increase their Medicare reimbursement. The United States alleges that PHG and the LTCH defendants delayed discharging certain patients, even when their course of treatment had been completed or when they could have been transferred to a lower level of care, because doing so would have resulted in lower payments from Medicare.
The United States’ complaint also alleges that one LTCH, Riverside Hospital of Louisiana, entered into medical directorship agreements with a doctor, and provided him other remuneration, to induce him to refer patients to Riverside in violation of the Anti-Kickback Statute and Stark Law.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration of items or services covered by Medicare and other federally funded programs. The Stark Law forbids a hospital from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
“Medicare patients deserve to receive care based on their clinical needs, not the financial interests of a hospital or doctor,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department is committed to pursuing cases where financial interests have improperly influenced the medical decision-making of providers participating in federal health care programs.”
“Billing federal healthcare programs for medically unnecessary treatment undermines the viability of those programs and exploits our most vulnerable citizens,” said U.S. Attorney Zachary A. Keller for the Western District of Louisiana. “Our Office will continue to combat fraudulent billing by unravelling these schemes and holding the perpetrators accountable.”
“Schemes that involve false claims and unlawful referrals erode the integrity of federal health care programs and betray the trust placed in providers,” said Acting Deputy Inspector General for Investigations Scott J. Lampert at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “The False Claims Act is a critical tool for protecting Medicare and ensuring that patient care decisions are driven by medical necessity—not financial gain. HHS-OIG will continue to work with our partners to hold accountable those who put profits over patients.”
The LTCHs named in the United States’ complaint are: Riverside Hospital LLC and Riverside Hospital of Louisiana, Inc. (collectively doing business as Riverside Hospital); Post Acute Enterprises, LLC (doing business as Mid Jefferson Extended Care Hospital); and New Lifecare Hospital of North Louisiana, LLC (doing business as Ruston Regional Specialty Hospital).
The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Michaela DeVos, a former employee of Riverside Hospital. Under the False Claims Act, private parties file an action on behalf of the United States and receive a portion of the recovery. The False Claims Act permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the False Claims Act, the United States may recover three times the amount of its losses plus applicable penalties.
The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of Louisiana (W.D. La.) are handling the matter with assistance from HHS-OIG. The case is captioned United States ex rel. DeVos v. Priority Hospital Group LLC, et al., No. 20-cv-01041 (W.D. La.).
This case is being handled by Trial Attorney Emily Bussigel of the Justice Department’s Civil Division and Assistant U.S. Attorney Melissa Theriot for the Western District of Louisiana.
The claims asserted in the complaint are allegations only, and there has been no determination of liability.
Jury Convicts Fayetteville Man on Drug and Gun Offenses at Fort BraggRead the Press Release
WILMINGTON, N.C. – A federal jury in Wilmington found Muwsay Ibn Ibrahim Tulu, of Fayetteville, guilty of possessing fentanyl and cocaine while armed and with the intent to distribute the drugs, and felon in possession of a firearm.
“We appreciate the partnership with the Fort Bragg Police, Army CID, ATF, and the Fayetteville Police Department to get this Big Shark Bad Boy off the streets,” said U.S. Attorney Ellis Boyle. “We will continue to focus on making Eastern North Carolina safer for the good citizens who proudly live here.”
According to court records and evidence presented at trial, on July 13, 2023, military police found Tulu passed out behind the wheel of a running vehicle in the middle of the road on Fort Bragg with drugs and a loaded ghost gun with an extended magazine at his feet. Months later, agents executed a search warrant at a Fayetteville residence linked to Tulu and recovered more drugs, a firearm, ammunition, scales, and ledgers consistent with drug trafficking.
At trial, Tulu argued that although he possessed the guns and drugs, he was only a user and not a distributor.
Tulu now faces a mandatory minimum sentence of 10 years imprisonment, with a maximum of life, when sentenced later this year.
Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The Fort Bragg Provost Marshals Office, Army CID, and the ATF investigated the case with the assistance of the Sampson County Sheriff’s Office and Assistant U.S. Attorney John Newby and Special Assistant U.S. Attorney Jessica Stark are prosecuting 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. 5:24-CR-00108.
Jacksonville Businessman Pleads Guilty to Tax EvasionRead the Press Release
A Jacksonville businessman pleaded guilty yesterday to evading millions of dollars in federal income taxes.
According to court documents and statements made in court, Phillip Mak, a sales representative, earned more than $10 million during 2008 through 2020. Mak owed more than $3.7 million in federal taxes on that income but did not pay them when required to do so. The IRS sent Mak notices about paying his taxes and filed a Notice of Federal Tax Lien against his property. Nevertheless, by the end of 2021, Mak still had not paid any federal income tax for the last 13 years.
Mak also took steps that moved his assets out of the reach of the IRS. Between 2019 and 2021, Mak, instead of paying his taxes, transferred $1 million to his domestic partner. He also transferred ownership of his personal residence to a trust created and controlled by his domestic partner. Finally, he created a corporate entity and deposited his personal income into the corporate entity’s bank account. Mak admitted that he committed at least one of these acts with an intent to evade payment of his taxes and knew that his conduct was against the law.
Mak faces a maximum penalty of five years in prison. The court has not yet scheduled a sentencing date.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd and Michael Jones of the Criminal Division’s Tax Section and Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida are prosecuting the case.
Jacksonville Businessman Pleads Guilty to Tax EvasionRead the Press Release
A Jacksonville businessman pleaded guilty yesterday to evading millions of dollars in federal income taxes.
According to court documents and statements made in court, Phillip Mak, a sales representative, earned more than $10 million during 2008 through 2020. Mak owed more than $3.7 million in federal taxes on that income but did not pay them when required to do so. The IRS sent Mak notices about paying his taxes and filed a Notice of Federal Tax Lien against his property. Nevertheless, by the end of 2021, Mak still had not paid any federal income tax for the last 13 years.
Mak also took steps that moved his assets out of the reach of the IRS. Between 2019 and 2021, Mak, instead of paying his taxes, transferred $1 million to his domestic partner. He also transferred ownership of his personal residence to a trust created and controlled by his domestic partner. Finally, he created a corporate entity and deposited his personal income into the corporate entity’s bank account. Mak admitted that he committed at least one of these acts with an intent to evade payment of his taxes and knew that his conduct was against the law.
Mak faces a maximum penalty of five years in prison. The court has not yet scheduled a sentencing date.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Isaiah Boyd and Michael Jones of the Criminal Division’s Tax Section and Assistant U.S. Attorney John Cannizzaro for the Middle District of Florida are prosecuting the case.
Ithaca Man Sentenced for Drug and Firearms OffensesRead the Press Release
SYRACUSE, NEW YORK – Zachary Jackson, age 38, of Ithaca, New York, was sentenced on Friday, January 16, 2026, to 15 years (180 months) in federal prison for possessing with intent to distribute cocaine; possessing a firearm in furtherance of a drug trafficking crime; and possessing a firearm as a convicted felon. Acting United States Attorney John A. Sarcone III and Farhana Islam, Special Agent in Charge of the U.S. Drug Enforcement Administration (“DEA”), New York Enforcement Division, made the announcement.
As part of his guilty plea, Jackson admitted that on November 19, 2024, he possessed a kilogram of cocaine and a Glock handgun which he used to protect himself while distributing controlled substances in the Ithaca and Auburn, New York areas. Jackson could not legally possess a firearm because he had been previously convicted of assault with intent to cause serious physical injury with a weapon, a felony offense for which he served over 10 years in prison.
Acting United States Attorney John A. Sarcone III stated: “Drug dealers, especially ones with violent criminal histories like this defendant, should know that law enforcement in the Northern District of New York will find them and put them behind bars. Thanks to the investigative efforts of local agencies and the DEA, our communities are now safe from this dealer, his drugs, and his gun.”
“Once again, DEA’s New York Enforcement Division and our partners removed a repeat drug trafficker who relied on violence to fuel his criminal enterprise,” stated DEA New York Enforcement Division Special Agent in Charge Farhana Islam. “The sentencing of Zachary Jackson sends a clear message to those who look to poison our communities; that the DEA will target you and bring you to justice! We are committed to preserving public safety and remain focused on keeping our neighborhoods safe.”
United States Chief District Judge Brenda K. Sannes also imposed an 8-year term of supervised release to begin after Jackson is released from prison.
DEA investigated the case with assistance from the Federal Bureau of Investigation (FBI); New York State Police; the Finger Lakes Drug Task Force (FLDTF); the Auburn Police Department; the Ithaca Police Department; and the Onondaga, Cayuga, and Tompkins County District Attorney’s Offices. Assistant U.S. Attorney Ben Gillis prosecuted the case.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
High-ranking members of two Mexican cartels appear in the Southern District of Texas on drug trafficking indictmentsRead the Press Release
HOUSTON – Two members of prolific transnational criminal organizations have appeared in Houston federal court for significant drug trafficking offenses and/or allegedly running a continuing criminal enterprise, announced U.S. Attorney Nicholas J. Ganjei.
Mexican national Juan Pedro Saldivar-Farias aka “Z-27,” 42, and Ricardo Cortez-Mateos aka “Billeton,” 41, were transferred to U.S. authorities Jan. 20. Saldivar-Farias is set for a detention hearing Friday Jan. 23 at 10 a.m. Cortez-Mateos made his appearance and will be transferred to Brownsville for his arraignment. Both remain in custody pending further criminal proceedings.
The alleged cartel members were indicted in separate cases in 2021.
Saldivar-Farias was allegedly a Los Zetas plaza boss and then regional commander of the northern region of Mexico, while Cortez-Mateos was a high- ranking member of the Cartel del Gulfo (CDG), according to the charges.
Court documents allege the Zetas were a drug trafficking and money laundering organization which imported and distributed marijuana and cocaine from Mexico into the United States and controlled miles of Mexican territory along the border of Mexico and the United States, including the cities of Zapata as well as Nueva Cuidad Guerrero, Tamaulipas, Mexico. Saldivar-Farias case allegedly oversaw all narcotics moving through the area. Throughout the conspiracy, Saldivar-Farias and other Zetas members and associates, secured, maintained and regulated the transportation routes used to import marijuana from Mexico to the United States across Falcon Lake, according to the allegations. Saldivar-Farias allegedly charged and collected a “piso” or “tax” for permission to store and transport marijuana and other controlled substances through the transportation routes and areas he controlled. The indictment alleges individuals who did not pay the “piso” or “tax” faced a potential consequence and potentially would be threatened, beaten, kidnapped, tortured or murdered.
According to the charges, Saldivar-Farias caused the delivery of more than 1,000 kilograms of marijuana and five kilograms of cocaine for importation into the United States during the nine-year conspiracy.
Cortez-Mateos was involved in significant drug trafficking between 2015 through 2021, according to his indictment. Those charge also allege CDG is a violent transnational organization based in northeast Mexico involved in drug trafficking, kidnapping, extortion, human smuggling and other illicit activities. CDG employs violence, including assassinations of civilians and government officials to intimidate the public and control territory.
Saldivar-Farias is charged with conspiracy to import and distribute marijuana and cocaine from Mexico into the United States and importation and distribution of cocaine and marijuana. He faces up to life in prison as does Cortez-Mateos if he is convicted of conspiracy to possesses with intent to distribute and conspiracy to unlawfully import more than 50 grams of meth, more than five kilograms of cocaine and more than 400 grams of fentanyl.
The FBI and Border Patrol conducted the investigation into Saldivar-Farias with the assistance of Drug Enforcement Administration and Texas Department of Public Safety, while DEA and Immigration and Customs Enforcement’s Homeland Security Investigations handled the investigation into Cortez-Mateos. The Department of State, Department of Justice’s Office of International Affairs and Government of Mexico provided invaluable assistance resulting in their transfers into U.S. custody.
Assistant U.S. Attorneys Casey N. MacDonald and Anibal J. Alaniz are prosecuting the case against Saldivar-Farias while AUSA Lance Watt is handling the Cortez-Mateos matter. Both cases are now part of the Homeland Security Task Force 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 these organizations commit, 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 cases are also a part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Franklin Man Sentenced to 60 Years in Federal Prison for Sexual Exploitation of ChildrenRead the Press Release
Bowling Green, KY – A Franklin man was sentenced on January 20, 2026, for multiple child exploitation offenses.
U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Acting Special Agent in Charge Colin W. Jackson of the Homeland Security Investigations Nashville, and Sheriff Jere Hopson of the Simpson County Sheriff’s Office made the announcement.
Joseph Roush, 27, was sentenced to 60 years in federal prison, followed by a term of lifetime supervised release, for one count of distribution of child pornography, one count of possession of child pornography, and one count of sexual exploitation of a child. The Court ordered Roush to pay $69,000 in restitution, $3,000 to each of the identified victims.
Over the course of several years, Roush possessed and distributed tens of thousands of images and videos containing child sexual abuse material. Investigators located approximately 20,000 images and videos across his numerous devices. Roush participated in the hands-on sexual exploitation of children in other countries via an online streaming platform and used a child entrusted to his care to produce images containing child sexual abuse material.
United States Attorney Kyle Bumgarner stated, “While our prosecutors sadly see the worst in humanity, Roush stands out as particularly sadistic. Roush systematically abused and forever altered the lives of innocent children throughout the world. The destruction that Roush left in his wake cannot be overstated. His 60-year sentence is essentially a life sentence. My hope is he spends every last day of his life incarcerated and reflecting upon his despicable acts. And to every other pedophile out there, I hope that you look at Roush and immediately stop your immoral and horrific conduct because we will find you and you will spend the rest of your life in prison next to Roush.”
“I was impressed with the spirit of cooperation between our Detective and the Federal Agents he worked with. The joint effort led to making our community a safer place,” stated Sheriff Jere Hopson.
There is no parole in the federal system.
This case was investigated by HSI and the Simpson County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Former airman pleads guilty to sex crimes against childrenRead the Press Release
EAST ST. LOUIS, Ill. – A former airman stationed at Scott Air Force Base appeared in district court to plead guilty to federal charges for sexually exploiting minors and distributing images and videos of child sexual abuse material.
Michael E. McCay, 32, pleaded guilty to two counts of sexual exploitation of a minor and one count of distribution of child pornography.
“Sex crimes against children are a profound betrayal of everything decent because they exploit the innocent, shatter trust, and inflict lasting harm. This former airman has deeply dishonored himself and the military he served,” said U.S. Attorney Steven D. Weinhoeft. “Our military institutions and servicemembers command the highest respect, and we are proud of our strong partnership with Scott Air Force Base. Together we remain committed to protecting our country and holding this offender fully accountable under the law.”
According to court documents, law enforcement executed a search warrant on McCay’s residence on Scott Air Force Base related to receipt and distribution of child pornography in February 2023. Agents reviewed McCay’s cell phone and identified more than 4,000 known images and videos of CSAM and more than 18,000 unidentified images.
Agents also found communications with purported minors on McCay’s cell phone. He admitted to requesting sexually explicit images of the minors, sending threatening messages and distributing the received CSAM.
“The exploitation of children has a lasting and profound effect on everyone involved, from the victims to the investigators,” said Special Agent Elijah Bell with the U.S. Air Force Office of Special Investigations. “Through the collaboration between our agents, the U.S. Attorney’s Office, and our international and local law enforcement partners, we were able to swiftly pursue justice.”
In January 2024, a second search warrant was executed on McCay’s new cell phone. Agents again located thousands of images and videos of CSAM and additional communications with minors.
Law enforcement identified at least two minor victims, a 12-year-old and an 11-year-old, that McCay was sexually exploiting through online applications, including Roblox, Kik, Snapchat and Likee.
Convictions for sexual exploitation of a minor are punishable by a minimum of 15 years up to 30 years’ imprisonment and distribution of child pornography is punishable by a minimum of 5 years up to 20 years. McCay’s sentencing is scheduled for April 7 at the federal courthouse in East St. Louis.
The U.S. Air Force Office of Special Investigations led the investigation, and Assistant U.S. Attorney Ali Burns is prosecuting the case.
Former Zynex, Inc. Executives Charged with Health Care and Securities Fraud and Related OffensesRead the Press Release
PROVIDENCE – A federal grand jury in Rhode Island has returned an indictment, unsealed today, charging the former Chief Executive Officer and Chief Operating Officer of Zynex, Inc., a medical device company, with conspiracy to commit health care fraud, securities fraud, and mail fraud, among other violations.
Thomas Sandgaard, 67, a resident of Castle Rock, Colorado and a dual citizen of the United States and Denmark, and Anna Lucsok, 39, a resident of Denver, Colorado and a dual citizen of the United States and the Ukraine, were indicted on one count of conspiracy to commit health care fraud, mail fraud, and securities fraud; nine counts of health care fraud, two counts of mail fraud and three counts of aggravated identity theft, announced United States Attorney Charles C. Calenda.
The indictment alleges that from at least 2017 through late 2025, Sandgaard and Lucsok orchestrated a scheme to fraudulently obtain millions of dollars from government and private health care payors and patients, and to defraud investors in Zynex by concealing that the company’s billings and revenues were driven by fraud.
In total, Sandgaard and Lucsok caused Zynex to collect more than $873 million for its products, including more than $600 million for supplies. The vast majority of the supplies’ billings were unnecessary and improperly billed. The indictment alleges that supplies were shipped in excessive volumes, sometimes as large as 32, 64, or 128 electrode pairs per patient each month. Sandgaard and Lucsok used these fraudulent billings, and the revenues derived from them, to fraudulently inflate the company’s financial reporting and drive up the stock price of Zynex.
“This case represents a troubling abuse of patients seeking care, as well as the federal healthcare benefit system,” said United States Attorney Charles C. Calenda. As alleged, the defendants’ conduct undermined programs intended to serve patients in need. Our office remains committed to protecting the integrity of these programs and holding accountable those who seek to exploit patients, payors, and investors.”
Sandgaard and Lucsok caused Zynex to submit millions of dollars in fraudulent billings for medical devices and supplies that were not medically necessary, not covered by these insurance programs and not agreed to by the patients. They continued these practices despite being notified many times that their billing practices were fraudulent, and even when patients told Zynex to stop sending those supplies because they already had too many. They also continued these practices despite objections from their own employees, and patient complaints to Zynex and the Better Business Bureau such as:
- 1/11/2022: [T]hey kept mailing me supplies and I kept getting denials. I called today and was informed that I owe a tremendous amount of money…. I live on $1100.00 dollars a month and cannot [sic] afford much period. …. She informed me that there still would be a rental fee and supply fees. I told her that I could not even afford food at this point.
- 1/24/2023: I received the product and then continued to receive [sic] batteries and electrodes. AFTER NINE MONTHS I received a bill with 27 charges for supplies. This was the first bill I ever received, they just kept racking up the charges and they waited nine months to send the bill. The minute I received it, I called the company, and they were unable to connect me with the billing department, we set-up a call back – still waiting. I feel like this company is a total SCAM.
When financial reporters raised questions about Zynex’s business practices, including shipping unnecessary electrodes, among other things, Sandgaard hired an individual to attempt to disrupt the reporters’ personal lives. These efforts included signing reporters up for therapy sessions and listing conditions such as erectile disfunction. They also sent used female underwear to a reporter’s spouse at the reporter’s home with a thank you card addressed to the spouse, detailing the reporter’s alleged “illicit behavior” – all apparently with the intent to convince the spouse that her husband was being unfaithful.
The United States has sought to restrain assets of Sandgaard or related entities, including a Porsche, a BMW, a Mercedes-Benz, real properties in Colorado and Florida, multiple bank accounts, and a Gulfstream G-IV aircraft. The government has also sought to restrain the assets of Lucsok including real property, a Porsche, a Volkswagen SUV, and various bank accounts.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty
The case is being prosecuted by First Assistant United States Attorney Sara Miron Bloom and Assistant United States Attorneys Peter I. Roklan and Milind M. Shah.
The case was investigated by the Federal Bureau of Investigation’s Colorado Field Division with the assistance of the Boston Field Division; U.S. Department of Health and Human Services Office of the Inspector General; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Department of Veterans Affairs Office of Inspector General; the Office of Personnel Management Office of Inspector General; the United States Postal Service Office of Inspector General and the FDA’s Office of Criminal Investigations.
Assistance was also provided by the Defense Contract Audit Agency, the United States Securities and Exchange Commission and the National Insurance Crime Bureau – Northeast Region.
- 1/11/2022: [T]hey kept mailing me supplies and I kept getting denials. I called today and was informed that I owe a tremendous amount of money…. I live on $1100.00 dollars a month and cannot [sic] afford much period. …. She informed me that there still would be a rental fee and supply fees. I told her that I could not even afford food at this point.
Former Suburban Chicago Police Officer Convicted of Federal Corruption ChargesRead the Press Release
CHICAGO — A former suburban Chicago police officer has been convicted of federal corruption charges for conspiring to steal cash and drugs from occupants of vehicles during traffic stops.
ANTOINE LARRY was serving as a patrol officer for the Phoenix, Ill. Police Department when he conspired with another officer to corruptly solicit cash and drugs from the occupants of vehicles during traffic stops in exchange for reducing, dropping, or declining to press charges or allowing the vehicles to avoid impoundment. The officers falsified police reports to conceal their corruption. The criminal conspiracy began in at least 2020 and continued until 2022.
After a two-week trial in U.S. District Court in Chicago, a jury on Friday convicted Larry, 49, of Bolingbrook, Ill., on all four counts against him, including charges of conspiracy, extortion, and attempted extortion. The extortion and attempted extortion charges are punishable by a maximum sentence of 20 years in federal prison, while the conspiracy charge is punishable by up to five years. U.S. District Judge John F. Kness set sentencing for April 22, 2026.
The other officer—JARRETT SNOWDEN, of Lansing, Ill.—pleaded guilty to a conspiracy charge prior to trial and admitted his role in the scheme. Snowden is awaiting sentencing.
The convictions were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Alexandra Morgan, Ramon Villalpando, and Prashant Kolluri.
Former Georgia State Representative Pleads Guilty to Pandemic Unemployment Fraud SchemeRead the Press Release
ATLANTA – Karen L. Bennett, who resigned from her position as an elected member of the Georgia House of Representatives on January 1, 2026, has pleaded guilty to making false statements to fraudulently obtain thousands of dollars of emergency pandemic unemployment assistance payments.
“Bennett was elected to represent her fellow citizens and took a solemn oath to promote the best interests and prosperity of the State of Georgia,” said U.S. Attorney Theodore S. Hertzberg. “Instead, she violated that oath and, during an unprecedented emergency, lied to line her own pockets with taxpayer money intended to help community members in need.”
“Public trust is fundamental to our system of government, and elected officials are expected to uphold the law—not exploit it,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our law enforcement partners to identify and hold accountable anyone who abuses emergency relief programs, especially those who knowingly divert critical assistance away from individuals and families who truly need it during times of crisis.”
“Karen Bennett, while serving her constituents as an elected member of the Georgia House of Representatives, unlawfully enriched herself with taxpayer funds from an unemployment program intended to assist American workers who lost their jobs through no fault of their own,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor, Office of Inspector General. “We will continue our efforts to investigate and bring to justice all who defraud taxpayers by exploiting Department of Labor programs.”
“Karen Bennett lied to obtain personal benefits and as an elected official should rightfully be considered the lowest of the low,” said Nigel Lange, Inspector General, State of Georgia Office of Inspector General. “Her sentencing should serve as a warning for others who have taken an oath of office that there is zero tolerance for this type of crime in Georgia.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: In 2020, in response to the forced closures of businesses and unprecedented economic hardship resulting from the COVID-19 emergency, the U.S. Congress created special unemployment compensation programs to provide cash assistance to individuals who lost their jobs due to the pandemic. Applicants for the programs had to provide their recent work histories and confirm, among other things, that COVID-19 was the reason they were unemployed. Applicants also had to provide a certification for every week for which they wished to claim benefits, attesting to whether they were actively seeking work for the week and the reason they were unemployed.
Bennett, while serving as the Georgia House Representative for District 94 in 2020, applied for and submitted weekly certifications to claim pandemic unemployment assistance benefits for weeks in March through August 2020. In those forms, she claimed that her only earnings were $300 per week from the Georgia General Assembly, that her other employer – Metro Therapy Providers, Inc. – would not let her return to her office because of COVID-19 protocols, and that she was actively looking for other work.
However, in reality, Bennett was concealing that she was also receiving a steady paycheck of $905 every week from her employment at a church. Additionally, she was the sole owner of Metro Therapy Providers, Inc., and her work for that company consisted of administrative functions she performed from her home even prior to the pandemic. The business continued to function and generate revenues for her, she continued her work to support it from her home office, and she was not looking for any other employment.
As a result of the false statements in her application and weekly certifications, Bennett collected $13,940 of pandemic unemployment benefits to which she was not entitled.
Karen Bennett, 70, of Stone Mountain, Georgia, pleaded guilty to making false statements to obtain funds administered by the U.S. Department of Labor. Sentencing is scheduled for April 15, 2026, at 10:30 a.m., before U.S. District Judge Eleanor L. Ross.
This case is being investigated by the Georgia Office of the State Inspector General, U.S. Department of Labor – Office of Inspector General, Federal Bureau of Investigation, and DeKalb County District Attorney’s Office.
Assistant U.S. Attorney Garrett L. Bradford is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Firefighter Sentenced to over 12 Years in Federal Prison for Sexual Exploitation of Children and Interstate Travel with Intent to Engage in Illicit Sexual ActivityRead the Press Release
PORTLAND, Ore.—A man from St. Helens, Oregon, was sentenced to federal prison yesterday for ordering live-streamed child sexual abuse and traveling to the Philippines to engage in illicit sexual activity while working as a firefighter for the Lake Oswego Fire Department.
Kenneth Green, 57, was sentenced to 151 months in federal prison and a lifetime of supervised release. He was also ordered to pay a $50,000 special assessment under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
According to court documents, from 2017 through 2019, Green paid for and received livestreamed shows featuring the sexual abuse and exploitation of children in the Philippines. During the shows, Green gave child sex traffickers in the Philippines specific instructions on how to abuse the children and received child sexual abuse material from the traffickers. Devices seized from Green’s residence pursuant to a search warrant revealed additional chats with child sex traffickers.
In 2019, Green spent months communicating with a trafficker in anticipation of traveling to the Philippines to abuse children. He discussed details related to travel, accommodations, and the sexual abuse of children ages 9 to 17 years old. In November 2019, Green traveled to the Philippines with the purpose of engaging in illicit sexual conduct with minors. Upon arriving, defendant claimed to get sick and could not meet with the trafficker.
On February 7, 2024, a federal grand jury in Portland returned a four-count indictment charging Green with sexual exploitation of children, receiving child pornography, interstate travel with intent to engage in illicit sexual activity, and attempted foreign sex tourism.
On October 24, 2025, Green pleaded guilty to sexual exploitation of children and interstate travel with intent to engage in illicit sexual activity.
Homeland Security Investigations investigated this case. Assistant U.S. Attorneys Eliza Carmen Rodriguez and Charlotte Kelley prosecuted the case.
This case was brought in collaboration with 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 www.justice.gov/psc.
If you or someone you know are victims of human trafficking or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888 or text 233733. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week. You can also submit a tip on the NHTRC website.
Financial Advisor Pleads Guilty to Orchestrating Massive $380 Million Ponzi SchemeRead the Press Release
ATLANTA – Todd Burkhalter, the founder and chief executive officer of the Georgia-based financial advisory group Drive Planning LLC, has pleaded guilty to wire fraud for masterminding a years-long Ponzi scheme that allowed him to live a lavish lifestyle while causing thousands of investors to lose hundreds of millions of dollars.
“Todd Burkhalter perpetrated what is likely the largest Ponzi scheme in Georgia history,” said U.S. Attorney Theodore S. Hertzberg. “Unbelievably, Burkhalter shamelessly continued to scam his victims even while under federal investigation. Today’s guilty plea is just the first step in holding Burkhalter accountable for the considerable harm he caused.”
“Todd Burkhalter built a massive Ponzi scheme on lies, exploiting trust to steal hundreds of millions of dollars from more than 2,000 victims while funding an extravagant lifestyle,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI will continue to aggressively pursue those who weaponize fraud and deception against investors, and we are committed to holding them fully accountable and seeking justice for every victim harmed.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: between September 2020 and June 2024, Drive Planning, at Burkhalter’s direction, marketed several investment opportunities, including the “Real Estate Acceleration Loan” opportunity (“REAL”) and the “Cash Out Real Estate Fund” (“CORE Fund”). Drive Planning claimed that investing in REAL and the CORE Fund was “easy and simple,” telling prospective investors that they did not need to be accredited investors to participate and encouraging them to invest money from retirement accounts, savings, and lines of credit.
REAL was Drive Planning’s primary investment vehicle, which Burkhalter fraudulently marketed as a bridge loan opportunity that would guarantee investors a 10% return every three months. Drive Planning claimed that it offered short-term loans—the bridge loans—to real estate developers who needed immediate cash flow to complete existing projects or fund new ones. Burkhalter and Drive Planning deceived investors into believing their investments were safe by claiming that they were fully collateralized by real estate. To perpetuate these lies, Burkhalter directed Drive Planning to prepare fraudulent “collateral sheets” identifying properties—some of which did not even exist—with fictitious valuations that purportedly served as collateral for investments.
Burkhalter and Drive Planning also falsely represented the extent of its relationship with real estate developers. In particular, Drive Planning highlighted its supposed relationship with a well-known real estate developer in Atlanta, Georgia (“Real Estate Developer-1”). In promissory notes with investors, Drive Planning falsely claimed investments were secured by real property within Real Estate Developer-1’s portfolio of properties. Eventually, Real Estate Developer-1 became aware that Drive Planning and Burkhalter were fraudulently using its name to promote the REAL investment. Real Estate Developer-1 sued Drive Planning and Burkhalter seeking to enjoin them from further using Real Estate Developer-1’s name.
For the CORE Fund, Drive Planning falsely claimed that it provided “100% Passive Income from Tax Liens.” Drive Planning guaranteed investors a return of 10% every six months or a 22% return per year for up to three years. Drive Planning further misrepresented that investors’ contributions to the CORE Fund were pooled together, government-protected, and fully collateralized. Additionally, Burkhalter and others at Drive Planning failed to disclose that Drive Planning did not invest any funds in the CORE Fund after approximately December 9, 2022. In total, Drive Planning received at least $4.1 million from individuals who sought to invest in the CORE Fund.
Burkhalter operated REAL as a Ponzi-scheme from its inception. In September 2020, after Drive Planning received its first $50,000 investment in REAL, Burkhalter used at least $21,000 to repay an earlier Drive Planning investor. None of the REAL funds were used for their supposed intended purpose—to finance bridge loans or enter joint ventures with real estate developers. Instead, within the first couple of months of marketing REAL, Burkhalter used at least $80,000 in investor money to pay his ex-wife’s attorneys and expenses related to recreational vehicles.
Throughout the scheme, investors’ monies were used to pay off other Drive Planning investors, make commission payments to Drive Planning’s agents, and pay for personal expenditures. For example, Burkhalter spent approximately:
- $2 million to purchase a yacht;
- $2.1 million as part of a purchase of a luxury condo in Cabo San Lucas, Mexico;
- $800,000 on multiple luxury vehicles, including a 2020 Prevost Marathon motorcoach and two 2024 Land Rovers;
- Millions of dollars on luxury travel, including chartering private jets; and
- $320,000 on clothing, jewelry, and beauty treatments.
Even after the Securities and Exchange Commission (“SEC”) began investigating Drive Planning in approximately March 2024, Burkhalter and others continued to solicit tens of millions of dollars in investments for REAL and the CORE Fund. Over the course of the scheme, Burkhalter defrauded more than 2,000 investors out of approximately $380 million.
In August 2024, the SEC obtained a temporary restraining order against Drive Planning and filed civil enforcement actions in federal court against Drive Planning and others related to the above-described scheme. Court-appointed receiver Kenneth D. Murena is responsible for attempting to recover funds and sell assets to repay Drive Planning’s many victims.
Sentencing for Todd Burkhalter, 54, of St. Petersburg, Florida, will be scheduled at a later date before U.S. District Judge Tiffany R. Johnson. Pursuant to a plea agreement, the government has conditionally promised to recommend that the Court sentence Burkhalter to 17 and a half years of imprisonment. The Court is not bound by the government’s recommendation, and, in determining the actual sentence, it will consider the United States Sentencing Guidelines, among other factors.
David Bradford, the former chief operating officer of Drive Planning, pleaded guilty to conspiracy to commit wire fraud on December 16, 2025, based on his involvement in the CORE Fund scheme. His sentencing hearing is scheduled for March 17, 2026 at 11:00 a.m. before Judge Johnson.
This case is being investigated by the Federal Bureau of Investigation with substantial assistance from the Securities and Exchange Commission.
Assistant U.S. Attorney Alex R. Sistla is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Prison Nurse Sentenced for False Statements Relating to Her Relationship with an InmateRead the Press Release
ST. PAUL – Jessica Lynn Larson, age 38, was sentenced yesterday in United States District Court to six months imprisonment followed by a year of supervised release for one count of false statements, announced U.S. Attorney Daniel N. Rosen.
While working as a nurse at FMC Rochester, Larson had a compromising sexual relationship with an inmate. Larson and the inmate exchanged sexually explicit love letters in which they professed their love for one another and discussed various sexual acts. In April 2024, Larson and the inmate had a sexual encounter. Sexual relationships between staff and inmates are prohibited due to the power imbalance between them.
Shortly after, other nurses at FMC Rochester reported the inappropriate relationship. When confronted about the relationship, Larson falsely accused the inmate of sexually assaulting her, forcing her to engage in a “fantasy” relationship, and threatening to hurt her children if she refused or reported the conduct. Bureau of Prisons staff members later found the love letters they exchanged proving Larson was lying.
Moreover, several months later after being placed on administrative leave, Larson drove to Ohio from which she sent another love letter to the inmate who had been moved to another prison location.
“The DOJ-OIG’s commitment to rooting out inappropriate relationships within correctional facilities is paramount. Such misconduct frequently facilitates contraband smuggling and bribery, directly compromising the safety of both staff and inmates,” said OIG Acting Special Agent in Charge Matt Nutt.
This case is the result of an investigation conducted by the Department of Justice Office of Inspector General.
Special Assistant U.S. Attorney Jeanne Semivan prosecuted the case.
Fayette County woman sentenced to prison for committing identity theft, money launderingRead the Press Release
EAST ST. LOUIS, Ill. – A district judge sentenced a Fayette County woman to 30 months’ imprisonment for working as a “money mule” within a foreign-based scam conspiracy to defraud victims out of tens of thousands of dollars and use their stolen identities.
Elizabeth Conrad, 55, of Ramsey, pleaded guilty to one count of conspiracy to commit mail fraud, one count of mail fraud, one count of conspiracy to commit access device fraud, one count of access device fraud, one count of money laundering – concealing nature of fraudulent proceeds and one count of aggravated identity theft. She was ordered to pay $78,480.26 in restitution to the victims.
“Foreign-based fraud conspiracies rely on money mules residing within the U.S. to receive their illicit proceeds and distance themselves from prosecution,” said U.S. Attorney Steven D. Weinhoeft. “Elizabeth Conrad knowingly supported the fraud conspiracy, ignored multiple warnings from law enforcement and laundered proceeds from victims.”
According to court documents, Conrad served as a “money mule” for foreign scammers in a conspiracy to defraud U.S. victims from 2019 through 2022. Money mules are people who, at someone else’s direction, receive and move money or valuables obtained from victims of fraud. Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace stolen funds.
Conrad accepted packages at her home sent through the mail from victims containing cash, checks, gift cards and electronics. Knowing the goods were fraudulently acquired, Conrad would then repackage the items and send them off to co-conspirators. On two occasions, Conrad received deposits from fraudulently acquired PPP loans into her bank account. Conrad also attempted to deposit checks and wired funds in cryptocurrency to her co-conspirators.
“The U.S. Postal Inspection Service is charged with defending the nation’s mail system from illegal use. With the collaborative efforts of our federal law enforcement partners, Postal Inspectors investigate fraudsters who utilize the U.S. Mail to perpetuate financial schemes to defraud others to enrich themselves. Postal Inspectors seek justice for victims including those most vulnerable,” said Acting Inspector in Charge, Mary Johnson, who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Domicile Office.
Conrad’s convictions for access device fraud, identity theft and money laundering stem from her and conspirators using victims’ names to acquire debit cards. Conrad received the debit cards in other people’s names at her home in Ramsey and used them to make withdrawals in the Ramsey and Vandalia area. Conrad and conspirators used at least 69 fraudulent debit cards to rack up over $30,000 in charges.
The U.S. Postal Inspection Service St. Louis Field Office led the investigation, and Assistant U.S. Attorney Zoe Gross prosecuted the case.
Fatal bus shooting investigation results in federal weapons chargesRead the Press Release
HOUSTON – An 18-year-old Houston resident has been charged with illegally possessing a machine gun and unlawful receipt of a firearm and ammunition following the recent fatal shooting on a local Metro bus, announced U.S. Attorney Nicholas J. Ganjei.
Patrick Santana Scott remains in custody on related charges and is expected to make his initial appearance in federal court at a later date.
According to the criminal complaint filed Jan. 16, a Houston Metro bus was in service and carrying passengers Jan. 7. The charges allege Scott was seated near the rear of the vehicle with a backpack when it stopped at an intersection. At that time, another individual allegedly entered, walked toward the back of the bus and fired a weapon in Scott’s direction. Scott then retrieved a firearm from his backpack and pointed it towards the shooter, according to court documents.
The gunfire allegedly resulted in the death of a female passenger seated in front of Scott, who succumbed to a gunshot wound to the head. The charges allege a juvenile male passenger was also treated for a gunshot wound.
Court documents indicate that one of the shell casings from the scene was from a 9mm Glock handgun recovered the following day and linked to Scott. The weapon allegedly had a machine gun conversion device - commonly known as a “switch” - designed to convert it from semi-automatic to a fully automatic firearm.
The charges further allege Scott was under indictment in Harris County for aggravated robbery at the time of the shooting. As such, he is prohibited from possessing firearms or ammunition per federal law.
“SDTX has zero tolerance for those violent criminals who would turn our public transit into battlefields,” said Ganjei. “Scott is alleged to have violated his bond conditions by possessing a firearm—a decision that directly contributed to the death of innocent young woman and the wounding of a teen bystander. The facts, as alleged, paint the picture of somebody with no respect either for the law or for the life and health of his fellow citizens. With these federal charges, the Southern District aims to change his way of thinking.”
“While out on bond for aggravated robbery charges in Harris County, Patrick Scott was the last person who should have allegedly been in possession of a machine gun conversion device,” said FBI Houston Special Agent in Charge Douglas Williams. “A young woman was killed and a teenager endures a long recovery because of the disregard Scott and a teen rival held for innocent lives on that bus that afternoon. FBI Houston applauds the United States Attorney’s Office for holding alleged repeat violent offenders accountable at the federal level. We hope these charges make others consider the life-and-death consequences of their irresponsible actions.”
If convicted, Scott faces up to 10 years in federal prison for possession of a machine gun and up to five years for receipt of a firearm and ammunition while under indictment. Both charges also carry the possibility of a $250,000 maximum fine.
FBI conducted the investigation with the assistance of Houston Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Byron Black is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Fallcatcher Principal Who Defrauded Investors Out of Approximately $5 Million Sentenced to Five and a Half Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Henry Ford, also known as Cleothus “Lefty” Jackson, 51, of Port St. Lucie, Florida, was sentenced today to 66 months in prison, three years of supervised release, and $2,095,480 in restitution by United States District Judge Joel H. Slomsky, for defrauding investors out of approximately $5 million.
Ford was charged by indictment in March 2023 and pleaded guilty in May of last year to one count of securities fraud and seven counts of wire fraud.
According to court documents and statements made in court, Ford founded and operated a business named Fallcatcher, the stated goal of which was to develop and market an electronic system designed to track use of medication by addiction recovery patients to prevent relapse.
In May 2018, Ford was seeking additional investors in Fallcatcher, which had been running out of funding. At this time, Ford used an acquaintance in the Eastern District of Pennsylvania who had access to a network of investors to raise funds from these investors. Ford provided his acquaintance false and misleading information about the Fallcatcher investment proposal, so that the acquaintance would agree to send the information to his investor network.
Additionally, Ford made presentations in person to potential investors, who were part of this acquaintance’s network, at locations in Pennsylvania and New Jersey. During these presentations, Ford made false and misleading statements regarding the proposed investment opportunity and showed investors a fraudulent letter of interest, which falsely stated that a major insurance company had agreed to conduct a pilot program using Fallcatcher’s system. Ford caused his acquaintance to distribute further false and misleading statements after these presentations.
As a result of these deceptive fundraising efforts, Ford caused approximately 60 investors to invest about $5 million in total in Fallcatcher.
In 2018, the Securities and Exchange Commission (“SEC”) began to investigate Ford’s acquaintance, which resulted in a request for documents from Fallcatcher. During the SEC investigation, in the fall of 2018 and the first half of 2019, Ford took various actions to conceal his fraud upon the investors in Fallcatcher. For example, Ford, through his counsel, produced to the SEC an email purporting to show that the fraudulent letter of interest described above was legitimate. In fact, the email produced to the SEC, like the letter of interest, was also shown to be false and fabricated.
This case was investigated by the FBI and prosecuted by Assistant United States Attorneys Patrick J. Murray and Francis A. Weber. The SEC’s New York Regional Office investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the criminal prosecution.
Former Postal Worker and Accomplice Federally Indicted for Mail Theft, Bank Fraud & Aggravated Identity TheftRead the Press Release
TALLAHASSEE, FLORIDA – Jaheed Anthony Lloyd Williams, 25, and Taija Avion Smith, 26, both of Tallahassee, Florida, have been indicted in federal court. Williams has been charged with one count of conspiracy to commit mail theft, unlawful possession of a mail key, theft of mail, bank fraud conspiracy, 15 counts of bank fraud, and three counts of aggravated identity theft. Smith has been charged with one count of conspiracy to commit mail theft, theft of a mail key, bank fraud conspiracy, and two counts of aggravated identity theft. John P. Heekin, United States Attorney for the Northern District of Florida, announced the charges.
Williams and Smith appeared in federal court for their arraignment before United States Magistrate Judge Martin A. Fitzpatrick in Tallahassee, Florida. Jury trial is scheduled for February 24, 2026, before Chief District Court Judge Allen C. Winsor in Tallahassee, Florida.
Williams and Smith face the following penalties, if convicted:
- Conspiracy to Commit Mail Theft: maximum of five years’ imprisonment, followed by a maximum of three years’ supervised release.
- Unlawful Possession or Theft of a Mail Key: maximum of 10 years’ imprisonment, followed by a maximum of three years supervised release.
- Theft of Mail: maximum of five years’ imprisonment, followed by a maximum of three years supervised release.
- Bank Fraud Conspiracy: maximum of 30 years’ imprisonment, followed by a five years’ supervised release.
- Bank Fraud: maximum of 30 years’ imprisonment, followed by a five years’ supervised release.
- Aggravated Identity Theft: mandatory consecutive term of two years’ imprisonment, followed by one-year supervised release.
This case was jointly investigated by the Tallahassee Police Department, the United States Postal Inspection Service, the Florida Department of Law Enforcement, and the United States Postal Service Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Justin M. Keen.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
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.
Defendant Sentenced to 11 Years in Prison for Kidnapping and Sexually Abusing a MinorRead the Press Release
Earlier today, in federal court in Brooklyn, Ahmed Alaahri was sentenced by United States District Judge Eric Komitee to 11 years in prison for kidnapping and sexually abusing a 17-year-old victim (John Doe). In March 2023, Alaahri and co-defendant Bilal Nagi, along with a co-conspirator (CC-1), lured John Doe into their car and filmed themselves restraining him after pulling off his clothing and brutally assaulting him. In February 2025, Alaahri and Nagi pleaded guilty to kidnapping. In August 2025, Nagi was sentenced to 17 ½ years in prison. Alaahri and Nagi are citizens of Yemen and both face deportation from the U.S. after the completion of their sentences.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, Terence G. Reilly, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the sentences.
“The defendants’ lengthy prison sentences are well-deserved given their depraved and violent conduct,” stated United States Attorney Nocella. “The sentences also make clear that crimes which brutalize, degrade, and exploit others, especially minors, will not be tolerated.”
“Ahmed Alaahri and Bilal Nagi kidnapped and sexually abused a minor victim in the backseat of their car using a weapon and threats to induce compliance. These defendants exploited a teenager’s terror by disseminating the recorded attack for further victimization and humiliation. May today’s sentencing serve as a reminder of the FBI’s promise to leverage its law enforcement partnerships against any individuals targeting minors,” stated FBI Acting Assistant Director in Charge Reilly.
According to court filings, on March 11, 2023, Alaahri, Nagi, and CC-1 kidnapped John Doe and sexually abused him. Nagi had contacted John Doe, a 17-year-old with whom he was acquainted, and arranged to pick him up at his home in Brooklyn, New York. Nagi arrived at John Doe’s home in a car with Alaahri in the front passenger seat and CC-1 in the backseat. When John Doe entered the car, Alaahri and CC-1 began punching him in the face while Nagi drove to Floyd Bennett Field located on federal park land in southeast Brooklyn.
Once at Floyd Bennett Field, the defendants continued to assault and humiliate John Doe. Eventually, John Doe’s pants were removed and Nagi began video recording John Doe with a cellphone. During the assault, Alaahri restrained John Doe in the backseat of the car. Alaahri then held a knife up to John Doe while Nagi further threatened John Doe, saying “you’re going to let me do whatever I want, or we’ll kill you.” John Doe was also told that there was a gun in the car. John Doe was ultimately released, but the defendants stole his cellphone and money. John Doe immediately called 911 to report the attack. Officers from the NYPD responded to his home and commenced an investigation.
Following the kidnapping and assault, Nagi disseminated a portion of the video on the Internet and through Instagram showing John Doe being restrained in the back seat of the car. In the video, John Doe is seen being restrained by Alaahri with his pants pulled down, exposing his genitals. After the defendants were arrested for a gunpoint robbery in the Bronx, law enforcement discovered portions of the kidnapping video on their cellphones. In a text message exchange found on one of the cellphones, Nagi discussed planning the kidnapping with CC-1.
The government’s case is being handled by the Office’s General Crimes and National Security and Cybercrime Sections. Assistant United States Attorney Gilbert Rein is in charge of the prosecution.
The Defendant:
AHMED ALAAHRI
Age: 23
Brooklyn, New YorkCo-Defendant Who Was Previously Sentenced:
BILAL NAGI
Age: 31
Bronx, New YorkE.D.N.Y. Docket No. 23-CR-524 (EK)
D.C. Man Sentenced to Federal Prison for Unemployment Insurance Benefits Scheme During COVID-19 PandemicRead the Press Release
Greenbelt, Maryland – U.S. District Judge Lydia Kay Griggsby sentenced Isiah Lewis, 35, of Prince George’s County, Maryland, to 53 months of imprisonment for conspiracy to commit wire fraud and aggravated identity theft, in connection with a conspiracy and scheme to defraud the Maryland Department of Labor (MD-DOL) and California Employment Development Department (CA-EDD).
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Troy W. Springer, National Capital Region, U.S. Department of Labor’s Office of Inspector General (DOL-OIG), and Special Agent in Charge Kareem A. Carter, Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office.
According to the guilty plea, from at least June 2020 through March 2021, Lewis conspired with Michael Cooley, Jr., 26, of Prince George’s County, Maryland, and Alonzo Brown, 28, of Richmond, Virginia, to devise and execute a scheme to defraud victim individuals and multiple state workforce agencies, including in Maryland and California, of more than $800,000 in unemployment insurance benefits, and successfully obtained more than $300,000. Griggsby previously sentenced Cooley and Brown to 87 months and 45 months, respectively.
Through the sophisticated scheme, co-conspirators used the personal identifiable information of more than 60 individuals, such as name, date of birth, and social security number, to file online UI applications in Maryland and California, using anonymous email addresses to obscure their identities and avoid detection.
At sentencing, Judge Griggsby ordered Lewis to pay restitution of $310,428.08 to the crime victims in the case and to forfeit money, property, and/or assets derived from the scheme.
This case is part of the District of Maryland COVID-19 Strike Force, a Strike Force that is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information about the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Hayes commended DOL-OIG and IRS-CI for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Bijon A. Mostoufi and Jared M. Beim, who prosecuted the federal case, along with Joanna B.N. Huber, who supported the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Convicted felon sentenced to 13 years in prison for being caught with a firearm six months after release from murder sentenceRead the Press Release
RICHMOND, Va. – A Glen Allen man was sentenced today to 13 years in prison for being a felon in possession of a firearm.
According to court documents, on Dec. 2, 2024, Henrico Police conducted a traffic stop on a vehicle in which Charles Bryan Alexander, 50, was a passenger. Alexander was the subject of outstanding arrest warrants. During the stop, Alexander was in possession of a loaded handgun with a 17-round magazine and a round in the chamber.
On July 29, 2011, Alexander was convicted in the Circuit Court of Henrico of first-degree murder, attempted robbery, and conspiracy to commit robbery, for which he was sentenced to 60 years with 45 years suspended. As a previously convicted felon, Alexander cannot legally possess firearms or ammunition. Alexander was released from prison only six months before he was found in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division and the Henrico County Police Division investigated this case.
Special Assistant U.S. Attorney Eric Gilliland, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Janet Jin Ah Lee 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 protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood (PSN).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:25-cr-39.