Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
19 February 2026
Five Individuals Charged with Multi-Million Dollar Mortgage and Apartment Fraud SchemeRead the Press Release
BOSTON – Five individuals have been charged for their alleged involvement in a scheme to obtain millions of dollars of mortgage loans and dozens of luxury apartment leases by submitting fraudulent applications and forged financial records.
The following individuals have been indicted on one count of conspiracy to commit wire and bank fraud:
- Sniders Jean-Jacques, 38, of Miami;
- German Olivo, 41, of Weston, Fla.;
- Jim Kelly Michel, 50, of Delray Beach, Fla.;
- Tanya Pierre, 28, of Miami; and
- Rosalie Clement-Jackson, 55, of Sunrise, Fla.
Jean-Jacques and Pierre were arrested and appeared in federal court in Miami. Olivo, Michel and Clement-Jackson were also arrested and appeared in federal court in Fort Lauderdale, Fla. The defendants will appear in federal court in Boston at a later date.
According to the charging documents, Jean-Jacques operated a purported tax preparation and credit repair business with offices in Boston and Miami. For Jean-Jacques’s clients with poor credit who needed a mortgage loan or apartment rental (“Fraudulent Applicants”) the defendants allegedly conspired to prepare fake paystubs and forged bank statements. They allegedly obtained so-called “tradelines,” in which the Fraudulent Applicants were added to the credit accounts of individuals with strong credit histories, in order to fraudulently boost the Fraudulent Applicants’ credit scores. Additionally, it is alleged that they used other people’s identities to hide the Fraudulent Applicants’ savings and credit history from mortgage lenders and landlords.
Kelly Michel allegedly provided the tradelines and victim Social Security numbers for the Fraudulent Applicants to use. Olivo allegedly altered the Fraudulent Applicants’ bank statements to show significant balances and deposits corresponding to fake paystubs Jean-Jacques allegedly sent him, all to suggest the Fraudulent Applicants’ ability to pay a lender or landlord. It is further alleged that Pierre worked as Jean-Jacques’s assistant and allowed Jean-Jacques to use her identity to rent apartments in Miami on behalf of Fraudulent Applicants in order to hide the true tenants’ identities from landlords. Clement-Jackson allegedly worked as a mortgage broker and directed Fraudulent Applicants to Jean-Jacques for fake paystubs and forged bank statements. It is alleged that, between in or about May 2018 and in or about June 2025, the defendants and others applied for more than $6.7 million and obtained more than $3.7 million, in mortgage loans from lenders and applied for and obtained dozens of apartment rentals for Fraudulent Applicants.
Jean-Jacques and Pierre were also charged in a separate indictment with conspiracy to commit wire fraud related to a scheme to obtain loans under the Paycheck Protection Program.
The charge of wire and bank fraud conspiracy provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Office; Amaleka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration Office of Inspector General, Eastern Region; and Randy Maloney, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement today. Valuable assistance was provided by the Federal Housing Finance Agency Office of Inspector General and the Department of Housing and Urban Development Office of Inspector General. Assistant U.S. Attorney Kristen Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Final man pleads guilty in multimillion-dollar Ponzi schemeRead the Press Release
HOUSTON – A 40-year-old Katy resident has admitted to his role in a scheme to defraud dozens of victims of over $17 million, announced U.S. Attorney Nicholas J. Ganjei.
Christopher Knight Lopez pleaded guilty to conspiracy to commit wire fraud.
From May 2015 to January 2025, he and his brother, Jayson Lopez, conspired with others to defraud their clients by providing false information about the companies in which the clients invested. They used forged bank letters and fabricated account statements to mislead investors about the companies’ financial strength.
They operated under several LLCs, to include Knight Nguyen Investments, Knight Advisory and Planning, Aevum Holdings Inc., Exempt Management LLC, and Ping An Financial Services Pte.
The Lopez brothers misappropriated their clients’ funds for personal use and to pay purported returns to other investors to mislead their clients into believing their investments were profitable.
Christopher and Jayson Lopez also admitted they falsely claimed access to $2 billion in U.S. Treasury bonds. They told their clients they could use these funds to finance their clients’ businesses if the clients paid large advance fees. The brothers collected the fees from their clients but never issued the loans.
The scam resulted in an approximate loss of $17 million for over 40 victims that included senior citizens and others looking to invest their retirement savings and children’s college funds, as well as local and international businesses.
“These defendants turned an investment firm into their own personal piggy bank, leaving shattered futures in their wake. Christopher Knight Lopez’s clients trusted him with their life savings—he rewarded that trust with lies in the form of false promises, forged documents, and fictitious assets,” said Ganjei. “The Southern District of Texas can be counted upon to relentlessly pursue those who would financially prey on members of our community. Be warned; if your business model is nothing more than a scam, and your clients are nothing more than intended victims, you can expect a visit from us.”
“For over a decade, Christopher Lopez shamelessly defrauded senior citizens, local businesses, close friends, and international acquaintances out of more than $17 million through deceit and lies,” said Special Agent in Charge of FBI Houston Jason Hudson. “Even after being federally charged, Lopez continued to scam victims, resulting in a superseding indictment. Today’s conviction is a testament to the FBI’s commitment to aggressively pursue fraudulent schemes that target members of our communities, especially our senior citizens.”
U.S. District Judge Keith Ellison accepted the plea and set sentencing for May 7. At that time, Lopez faces up to 10 years in federal prison as well as a possible $250,000 maximum fine.
Jayson Lopez, 43, Orlando, Florida, previously pleaded guilty to the same charge. He is set for sentencing April 2, 2026.
Nadir Abdel Torres 46, Mandan, North Dakota, was also charged and previously pleaded guilty to conspiracy to commit wire fraud, admitting he assisted the brothers by helping them obtain the forged letters and bank statements. He faces up to five years at his sentencing, which is set for March 12.
The FBI conducted the investigation with the assistance of the Securities and Exchange Commission. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
Felon Who Stole 100 Guns Sentenced to 100 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Rodney W. Sippel on Thursday sentenced a man who stole about 100 firearms to 100 months in prison.
Jeremy Lorenz, 31, of St. Charles, pleaded guilty in October to one count of being a felon in possession of a firearm. He admitted stealing the guns from a federal firearms licensee’s storage site in St. Louis County on Nov. 15, 2024. Lorenz was arrested four days later and officers found him with a pistol and a shotgun that had been reported stolen. Investigators caught him with a stolen pistol the next day. They found six stolen guns in the car he was driving and 13 more in his girlfriend’s home. In an interview with investigators, Lorenz admitted being a convicted felon and stealing the guns. He also told agents that he’d sold some of the guns, and agents have been able to recover about 75 of the stolen firearms so far.
“Stealing 100 firearms is a brazen act that puts communities at immediate risk,” said Bernard “Butch” Hansen, Special Agent in Charge of the ATF Kansas City Field Division. “We recovered most of the stolen firearms, but every weapon taken in this theft had the potential to fuel violent crime. Stolen guns routinely end up in the hands of people who are prohibited from possessing them. We are grateful for the successful prosecution by the U.S. Attorney’s Office and the partnership from St. Louis County Police Department and the Missouri State Highway Patrol that ensured justice was served. This case demonstrates that those who traffic in stolen guns will be held accountable.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Louis County Police Department and Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Nichole Frankenberg prosecuted the case.
Felon Sentenced for Illegal Possession of Pistol That He Fired Inside a SE Apartment ComplexRead the Press Release
WASHINGTON – Larry Johnson, 26, a previously convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to 50 months in prison in connection with his illegal possession of a 9mm pistol that he fired twice inside of an apartment where a woman and her two children were present, announced U.S. Attorney Jeanine Ferris Pirro.
Johnson pleaded guilty Nov. 5, 2025, before Chief Judge James E. Boasberg to a count of unlawful possession of a firearm and ammunition by a felon. In addition to the 50-month prison term, Chief Judge Boasberg ordered Johnson to serve three years of supervised release.
According to court documents, on Aug. 10, 2025, Metropolitan Police officers responded to the 2200 block of Town Center Drive, SE. Officers learned of an altercation that had occurred about 11:36 p.m. inside an apartment on the fourth floor. During the altercation, Johnson fired a gun twice while inside of the apartment in the presence of a woman and her children.
Officers recovered a Springfield-Armory XD-9 Mod.2 Sub-Compact 9mm pistol from a shelf in a bedroom closet. Johnson was not licensed to possess a firearm in the District and had been previously convicted on a felony robbery count in Montgomery County, Maryland.
This case was investigated by the Metropolitan Police Department and the Bureau of Alcohol Tobacco and Firearms. It was prosecuted by Assistant U.S. Attorney Caelainn Carney.
Officers recovered a Springfield-Armory XD-9 Mod.2 Sub-Compact 9mm pistol from a shelf in a bedroom closet.
25cr247
Federal grand jury indicts man arrested with weapons near airportRead the Press Release
COLUMBUS, Ohio – A federal grand jury today indicted the man who allegedly had multiple loaded guns near the John Glenn Columbus International Airport last month.
William T. Griffith, 40, of Delaware, Ohio, was charged by federal criminal complaint in January. The indictment returned today charges him with illegally possessing firearms as a convicted felon.
According to charging documents, on Jan. 9, local law enforcement responded to a 911 call at approximately 4am regarding Griffith trespassing in a construction area at the airport. Law enforcement officers discovered firearms at the scene. The indictment details Griffith possessing a rifle, a pistol and a revolver.
At the time of Griffith’s arrest, he was dressed in military-style fatigue trousers. Body armor with ceramic plates and a ballistic helmet with night vision were also located nearby.
In 2011, Griffith was convicted of kidnapping, prohibiting him from possessing firearms or ammunition.
Dominick S. Gerace II, United States Attorney for the Southern District of Ohio; and Jason Cromartie, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and members of the FBI’s Joint Terrorism Task Force announced the charges. Assistant United States Attorney Damoun Delaviz is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
# # #
Federal Jury Convicts Los Angeles Man Caught Transporting 30 Kilograms of Methamphetamine in OklahomaRead the Press Release
OKLAHOMA CITY – A federal jury has convicted GUSTAVO DE ALBA, 48, of Los Angeles, California, of drug conspiracy and possession of methamphetamine with intent to distribute, announced U.S. Attorney Robert J. Troester.
According to the public record, on June 13, 2025, law enforcement stopped a vehicle being driven by De Alba, on I-40 near Sayre, Oklahoma. After a K-9 unit alerted to the presence of narcotics inside the vehicle, law enforcement searched the vehicle and recovered approximately 30 kilograms of methamphetamine stored in a sophisticated after-market compartment concealed behind the backseat. De Alba and the passenger, codefendant WALTER LUIS ZAPATA MANZANARES, 36, also of Los Angeles, California, were arrested.
On July 1, 2025, a federal Grand Jury charged De Alba and Zapata Manzanares with drug conspiracy and possession of methamphetamine with intent to distribute. On February 18, 2026, after a two-day trial, a federal jury found De Alba guilty on both counts. Zapata Manzanares had previously pleaded guilty to a Superseding Information charging drug conspiracy on October 9, 2025.
At sentencing, De Alba faces up to life in federal prison and fines of up to $20 million, and Zapata Manzanares faces up to 20 years in federal prison and a fine of up to $1,000,000.
This case is the result of an investigation by the Drug Enforcement Administration and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorneys Stephen Hoch and Drew E. Davis are prosecuting the case.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Reference is made to public filings for additional information.
Federal Jury Convicts Lexington Man for Possession of Child Sexual Abuse MaterialRead the Press Release
SPARTANBURG, S.C. — William Steven Wooten, 46, of Lexington, has been convicted by a federal jury following two days of trial. Wooten was found guilty on one count of possession of child sexual abuse material.*
Evidence introduced at trial showed that the Federal Bureau of Investigation was conducting a stolen valor investigation related to Wooten’s possession and use of a fraudulent form DD-214, a military discharge document. Wooten purported to be a combat veteran and to have earned a Purple Heart. In truth, Wooten had never served in the military. Wooten used the fraudulent document in an effort to obtain employment and to convince a single mother that he was an upstanding citizen who could be trusted around her young children.
The FBI obtained a search warrant for Wooten’s phone and discovered child sexual abuse material, in addition to the fraudulent DD-214. FBI forensic examiners located 203 images depicting child sexual abuse. Search terms indicated Wooten was seeking images of young girls, including children being abused by adult males.
Just eight months before the FBI found Wooten in possession of child sexual abuse material and the fraudulent discharge document, Wooten was found guilty in state court for criminal sexual conduct with a minor. Approximately two weeks before his federal trial, Wooten pleaded guilty to possessing the fraudulent DD-214.
Wooten faces a mandatory minimum sentence of 10 years on the child sexual abuse material conviction, a fine of up to $250,000, and restitution. U.S. District Judge Donald C. Coggins presided over the trial and will sentence Wooten after receiving and reviewing a pre-sentence report from the U.S. Probation Office.
The case was investigated by the FBI Columbia Field Office and the Spartanburg County Sheriff’s Office. Assistant U.S. Attorneys Bill Watkins and Winston Marosek are prosecuting the case.
###
Federal Charges Filed Against Sacramento Man for Possessing a Firearm in a School ZoneRead the Press Release
A criminal complaint was filed today against Brian Richard Girardot Jr., 20, of Sacramento, charging him with possessing a firearm within a school zone, U.S. Attorney Eric Grant announced.
According to court documents, on Feb. 18, 2026, Girardot, a previous student at St. Mary Parish School, dropped his younger relative off at St. Mary Parish School in Sacramento. Girardot returned at approximately 9:30 a.m. and walked onto the property of St. Mary Catholic Church/St. Mary Parish School. He walked to the front of the church building and attempted to enter with a loaded firearm. The church was in the process of holding an Ash Wednesday mass, which had begun at 8 a.m. Girardot had additional ammunition and a camouflage jacket in his vehicle, which he had parked nearby.
Law enforcement conducted a search of Girardot’s home and found a series of handwritten notes in a stack in his bedroom that contained references to suicide and threats.
The Federal Bureau of Investigation and the Sacramento Police Department are conducting the investigation. Assistant U.S. Attorney Elliot Wong is prosecuting the case.
In addition to the federal charge, Girardot has been charged criminally in state court.
If convicted, Girardot faces a maximum statutory penalty of five years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fayette County Man Sentenced for Threatening a Kentucky Commonwealth AttorneyRead the Press Release
LONDON, Ky. – A Lexington, Ky., man, Christopher Rhodes, 41, was sentenced on Tuesday by U.S. District Judge Claria Horn Boom to 42 months for interstate communication of a threat.
According to his plea agreement, on May 22, 2025, Rhodes used his Google account to send an email to Jackie Steele, who is the Commonwealth Attorney for Laurel and Knox Counties. Rhodes intended the email as a threat and specifically indicated that Steele needed curtains in his residence and made references to his wife and children and that he should fear for the safety of his family. This message was sent as part of a series of emails that spanned multiple weeks that expressed Rhodes’ anger with Steele based on Steele’s service as Commonwealth Attorney.
Under federal law, Rhodes must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years.
Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing.
The investigation was conducted by the FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Jason Parman.
— END —
El Paso Real Estate Accountant Sentenced to Federal Prison for Wire FraudRead the Press Release
EL PASO, Texas – An El Paso woman was sentenced in federal court Wednesday to 33 months in prison for wire fraud, announced U.S. Attorney for the Western District of Texas, Justin R. Simmons.
According to court documents, Carol Talamantes, 61, was employed as a certified public accountant for multiple real estate businesses operating in Texas and New Mexico, from which she stole $603,738.96 between Oct. 20, 2020, and Oct. 31, 2024. Talamantes fraudulently wrote company checks to herself, electronically transferred money from company bank accounts to her personal bank accounts, and transferred funds to herself via Automatic Clearing House (ACH) transactions through the real estate businesses. Talamantes initiated more than 90 fraudulent transactions from the real estate businesses directly to herself and used the proceeds for her own personal benefit, including to pay her home mortgage and personal credit card bill.
On Sept. 26, 2025, Talamantes was summoned to federal court, where she pleaded guilty to one count of wire fraud and was granted a $20,000 bond. She also agreed to a money judgment of $603,738.96.
The FBI investigated the case.
Assistant U.S. Attorney Phillip Countryman prosecuted the case.
###
Drug Trafficker Sentenced to over 17 Years in Federal PrisonRead the Press Release
POCATELLO – U.S. Attorney Bart M. Davis announced today that Franklin Ryan, 45, of Sparks, Nevada, was sentenced to 210 months in federal prison for distributing methamphetamine and fentanyl in eastern Idaho.
According to court records, Ryan sold large quantities of methamphetamine and fentanyl in eastern Idaho between March and September of 2024, including eight pounds of methamphetamine he sold to another person. Investigators recovered financial records that showed that over $100,000 in drug proceeds were funneled through accounts controlled by Ryan, indicating he was involved in a large-scale drug distribution operation. Ryan also illegally possessed and sold firearms as a part of his methamphetamine and fentanyl distribution business.
Ryan pleaded guilty to the charge on August 26, 2025. Four other defendants are charged as co-conspirators in the same case. Their cases are still pending.
U.S. District Judge David C. Nye also ordered Ryan serve five years of supervised release following his prison sentence.
U.S. Attorney Davis made the announcement and commended the work of the Federal Bureau of Investigation and Idaho State Police, which led to the charges.
Assistant U.S. Attorney Blythe McLane prosecuted the case.
This case was investigated through the Federal Bureau of Investigation in coordination with the Idaho State Police and the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) program. HIDTA is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multiagency drug enforcement initiatives, including the BADGES Task Force.
The BADGES Task Force is a collaboration of federal, state, and local law enforcement agencies
that focuses primarily on drug trafficking crimes in Bannock County and throughout the region.
###
Dauphin County Man Indicted for Production, Receipt, and Possession of Child PornographyRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gregory Strickland, age 45, of Hummelstown, Pennsylvania, was indicted on February 18, 2026, by a federal grand jury for production, receiving, and possessing child pornography.
According to United States Attorney Brian D. Miller, the indictment alleges that Strickland used a minor to produce child pornography on 12 separate occasions in 2022, 2023, and 2024. The indictment further alleges that Strickland received child pornography via the Kik application in 2022 and 2025 and possessed child pornography in 2025.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Christian T. Haugsby is prosecuting 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.
The maximum total penalties for the offenses charged are 420 years’ imprisonment, a term of supervised release of up to life following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Convicted Sex Offender Sentenced to 35 Years in Prison for Distribution, Receipt, and Possession of Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Robert Redding, 43, of Philadelphia, Pennsylvania, was sentenced today to 35 years’ imprisonment and 10 years of supervised release by United States District Judge Gerald J. Pappert for child pornography offenses. Judge Pappert also ordered Redding to pay $25,000 in restitution to the minor victims.
The defendant was charged by indictment in March of last year with one count of distribution and attempted distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. In August, he pleaded guilty to all charges.
As detailed in court filings and statements, Redding had previously served more than a decade in prison for hands-on sexual offenses committed against a 13-year-old girl, and after his release, was required to register as a sex offender under Megan’s Law.
While still under the supervision of Pennsylvania State Parole, Redding resumed his criminal activities, this time by participating in an online child pornography community, trading videos depicting children, including some as young as babies and toddlers, being raped by adult men, and uploading images of child sexual abuse to online accounts.
The defendant committed some of these new crimes while residing at Kintock Residential Reentry Center as a condition of his state parole and used at least one electronic device unknown to and unauthorized by his parole officer, to commit some of the offenses.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit projectsafechildhood.gov.
The case was investigated by the FBI and prosecuted by Assistant United States Attorneys Kelly Harrell and Eileen Castilla Geiger.
Colombian Transnational Robbery Crew Member Pleads Guilty to $5 Million Dollar Organized Jewelry Theft Ring in MiamiRead the Press Release
MIAMI – The last member of a transnational Colombian robbery crew in Miami pleaded guilty on Feb. 12 for his role in a series of robberies of and thefts from jewelry couriers that targeted high-end retailers and resulted in losses exceeding $5 million dollars. Leroy Ortega, also known as “El Enano,” 43, of Miami, was the last of 11 defendants indicted as part of an operation against South American theft groups operating in the Southern District of Florida.
The 11 defendants were each convicted as part of Operation Boujee Bandits, an investigation of a Colombian South American Theft Group targeting jewelry salespersons in South Florida and elsewhere. The investigation resulted in three indictments and an information that charged robberies and money laundering activity from September 2019 to July 2021.
“This transnational theft crew came to the United States to steal from American businesses and preyed upon unsuspecting, hard-working citizens who were just trying to do their jobs as jewelry couriers,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Leroy Ortega played an integral role with other already convicted defendants to execute sophisticated, high-value robberies that caused millions of dollars in losses. The Criminal Division will investigate and prosecute organized theft networks and hold to account those individuals who participated in them at all levels.”
“These defendants operated as part of a coordinated South American theft group that targeted hardworking jewelry couriers and sales professionals transporting high-value diamonds, watches, and other merchandise,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “They followed their victims from jewelry exchanges, used fraudulent identification to rent vehicles, and relied on force and violence to steal valuable inventory. Those who commit organized robberies in South Florida will face federal prosecution and significant prison time. We will continue dismantling theft crews that threaten the safety of our community and the integrity of our marketplace.”
“Eliminating these brazen South American Theft Groups reinforces the FBI’s mission of ensuring public safety,” said Special Agent in Charge Matthew Fodor of the FBI Atlanta Field Office. “With our hardworking special agents, analysts, and professional staff triaging leads and sharing threat intelligence with law enforcement partners around the world, we’ve been able to efficiently and effectively disrupt these criminal groups.”
According to court documents, Ortega was part of a group that forcefully took jewelry and other property from victims they believed were in the business of buying and selling jewelry throughout South Florida. To commit the robberies, defendants rented vehicles using false identification documents to follow jewelry salespersons from the International Jewelry Exchanges or the Seybold Jewelry Building. They would then rob victims of the jewelry that they were transporting, sometimes brandishing a knife-like weapon to ensure victims’ compliance.
Ortega admitted that he committed two robberies. On Oct. 16, 2019, Ortega and his co-defendants identified a person they believed was carrying a case of jewelry. In fact, the victim was not a jewelry courier but rather a professional photographer who had been photographing jewelry. Following the victim to a shopping center, co-defendant Allan Lucas, 33, of Miami, pushed the photographer and Ortega grabbed the photographer’s case, which contained photography equipment and a computer. The photographer chased Ortega and Lucas to their get-away car. When the photographer tried to open the car door to get his case back, Ortega reversed the car, causing injury as the photographer was thrown to the ground.
Then, on Nov. 7, 2019, Ortega and his co-conspirators, including defendants Andres Barahona Poveda, 51, a national of Colombia, and Edwin Castillo, 45, of Pembroke Pines, robbed a jewelry salesman of approximately $125,000 of assorted jewelry. Ortega and his co-conspirators followed the salesman to his business in Miami Beach. As the salesman sat in the vehicle, Ortega approached and smashed the salesman’s windows while another co-conspirator took the salesman’s backpack containing the jewelry. When the salesman tried to exit the vehicle, Ortega held the salesman’s door shut trapping him inside the vehicle. To conduct the robbery, defendant Carlos Morales, 47, of Miami rented a vehicle using a fraudulent Venezuelan driver’s license.
Ortega pleaded guilty to Hobbs Act robbery conspiracy and two counts of Hobbs Act robbery. He is scheduled to be sentenced on May 1 and faces a maximum penalty of 20 years in prison.
Defendants convicted under this Operation, in addition to Ortega, include the following:
Allan Lucas, who was sentenced to 168 months in prison;
Diana Grisales Basto, 41, a national of Colombia, who was sentenced to 97 months in prison;
Carlos Morales, who was sentenced to 60 months in prison;
Giovanni Cardenas, also known as“El Mono,” 40, a national of Colombia, who was sentenced to 110 months in prison;
Andres Barahona Poveda, who was sentenced to 87 months in prison;
Edwin Castillo, who was sentenced to 108 months in prison;
Demian Gonzalez Contreras, 30, a national of Colombia, who was sentenced to 74 months in prison;
Victor Fabian Valenzuela, 39, a national of Colombia, who was sentenced to 57 months in prison;
Hernando Rodriguez Mahecha, also known as “Nando,” 42, a national of Colombia, who was sentenced to 60 months in prison; and
Mark Simon, 57, of New York, was sentenced to 57 months in prison.
The FBI Tampa Field Office is leading the investigation of the case with valuable assistance from the FBI Miami Field Office, Miami-Dade State Attorney’s Office, Miami-Dade Police Department, Miami Beach Police Department, Tampa Police Department, Boca Raton Police Department, Palm Beach Sherriff’s Office, Boynton Beach Police Department, Fort Pierce Police Department, and the Jewelry Security Alliance. The Justice Department’s Office of International Affairs and the Criminal Division’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance.
Assistant U.S. Attorney Brian Dobbins for the Southern District of Florida and Trial Attorneys Lakeita F. Rox-Love and Christopher D. Usher II of the Justice Department’s Violent Crime and Racketeering Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20272.
###
Chinese National sentenced for role in pig butchering schemeRead the Press Release
TYLER, Texas – A Chinese national has been sentenced to federal prison for his role in a scheme to launder the proceeds of cryptocurrency investment scams and other fraudulent schemes involving millions of dollars in victim funds, announced Eastern District of Texas U.S. Attorney Jay R. Combs.
Fei Liao, 31, of San Gabriel, California, pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in federal prison by U.S. District Judge J. Campbell Barker on February 19, 2026. Liao was ordered to forfeit over $2.3 million in seized currency and to pay restitution of more than $2.8 million to the victims that directed money to his accounts.
According to information presented in court, Liao and others conspired to open shell companies and bank accounts to launder victim proceeds of cryptocurrency confidence schemes – also known as “pig butchering” scams. Pig butchering fraud schemes (a term derived from a foreign-language phrase used to describe these crimes) consist of scammers encountering victims on dating services or social media, or through unsolicited messages or calls, often masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making investments using cryptocurrency. Once funds are sent to scammer-controlled accounts, the investment platform often falsely shows significant gains on the purported investment, and the victims are thus induced to make additional investments. Ultimately, the victims are unable to withdraw or recover their invested funds and suffer significant financial losses.
This case was investigated by the U.S. Secret Service, Tyler Resident Office and was prosecuted by Assistant U.S. Attorney Robert Austin Wells.
If you or someone you know is a victim, report it to www.IC3.gov. In the report, please reference “Pig Butchering PSA” and include as much information as possible in the complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
###
Chinese National Found Guilty of Smuggling 207 Pounds of Marijuana into the United StatesRead the Press Release
SYRACUSE, NEW YORK – Wenjian Zhuo, age 32, a Chinese national and lawful permanent resident of the United States, has been found guilty of possession of a controlled substance with intent to distribute following a jury trial in federal court in Syracuse.
First Assistant United States Attorney John A. Sarcone III, Robert Garcia, Chief of United States Border Patrol, Swanton Sector, and Farhana Islam, Special Agent in Charge of the New York Enforcement Division of the Drug Enforcement Administration (“DEA”), made the announcement.
Evidence presented during the two-day trial proved that on January 22, 2025, Zhuo drove from New York City to the Akwesasne Mohawk Indian Reservation where his van was loaded with 94 kilograms (approximately 207 pounds) of marijuana. Zhuo began to transport the marijuana back to New York City where he intended to deliver it when Border Patrol pulled him over and seized the marijuana.
First Assistant U.S. Attorney Sarcone stated, “For far too long, criminal networks have exploited the Akwesasne Mohawk Indian Reservation as a gateway for smuggling illegal drugs into our country. We will not tolerate anyone using this border region as a safe haven for trafficking. If you attempt to move narcotics through this corridor, you will be investigated, arrested, prosecuted, and held fully accountable. Border Patrol and DEA work every day to close this valve and this time, they were successful.”
Chief of United States Border Patrol, Swanton Sector Robert Garcia stated, “Swanton Sector Border Patrol agents remain vigilant in protecting the nation from the dangers posed by human and narcotics trafficking. This case demonstrates the dedication and teamwork of our agents and all our law enforcement partners in the area, including the United States Attorney’s Office, in intercepting illicit drugs before they reach our communities. We also commend the United States Attorney’s Office for their dedication to prosecuting those who attempt to exploit our border for criminal activity, ensuring they are held accountable and brought to justice.”
DEA Special Agent in Charge of the New York Enforcement Division Farhana Islam stated, “Once again, justice is being delivered to those criminal networks and individuals flooding the Northeast corridor with illegal marijuana. Today’s guilty verdict against Wenjian Zhuo reinforces our commitment to identify, target, and prosecute all those who profit from illicit drug distribution. The DEA New York Enforcement Division remains steadfast in our pursuit of holding accountable anyone trafficking drugs across our borders and into our neighborhoods.”
Zhuo will be sentenced on June 23, 2026, by United States Senior District Judge Glenn T. Suddaby, who presided over the trial. The charge of conviction against Zhuo carries a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and a term of supervised release of at least 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines and other factors.
Border Patrol and DEA investigated this case. Assistant U.S. Attorney Douglas Collyer prosecuted the case
Chesapeake man sentenced to 10 years in prison for attempting to receive a meth deliveryRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to 10 years in prison for attempted possession with intent to distribute methamphetamine.
According to court documents, on March 18, 2025, law enforcement intercepted a parcel containing 2,618 grams of methamphetamine addressed to a residence on Rystrom Run in Chesapeake. After intercepting the package, investigators replaced the meth with sham narcotics and conducted a controlled delivery. The package was brought into the residence by a child. Geno Cassell Smith, 64, later entered the residence and opened the package.
Soon afterward, investigators entered the residence and executed a search warrant. The investigators found the sham narcotics as well as a handgun with two magazines. Smith previously was convicted of marijuana possession and distribution and assault and battery on a family member. As a previously convicted felon, Smith cannot legally possess firearms or ammunition.
The Drug Enforcement Administration’s Washington Division, Virginia Beach Police Department, and Virginia Beach Sheriff’s Office with the assistance of K9 “Pablo” investigated this case.
Assistant U.S. Attorney Amanda L. Cheney and Special Assistant U.S. Attorney Kelly Anne Cournoyer 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. 2:25-cr-104.
Career Offender from Alexander Sentenced to 15 Years in Federal Prison for Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
LITTLE ROCK—Kevin Williams, who has been convicted of multiple drug and gun felonies, will spend the next 15 years in federal prison for possession of a firearm in furtherance of a drug trafficking crime. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down today by United States District Judge D.P. Marshall, Jr.
A federal grand jury indicted Williams, 46, of Alexander, in a three-count Indictment for being a felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute methamphetamine. On September 22, 2025, Williams pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. At the time, Williams was already serving state sentences for possession of a firearm by certain persons and possession of methamphetamine with purpose to deliver. Judge Marshall ordered the 180-month federal sentence to be served consecutively to Williams’ state sentences, and also sentenced Williams to three years’ supervised release. There is no parole in the federal system.
In March 2023, an investigation revealed that Williams, who was on active parole with a search waiver on file, was in possession of a large amount of methamphetamine and firearms. On March 20, 2023, agents with the Drug Enforcement Administration executed a search warrant at the hotel room where Williams resided. During the search of Williams’ hotel room, agents located 900 grams of methamphetamine in a suitcase and 850 grams of methamphetamine in a safe. Agents also located in the safe a Canik, Model TP9SF 9mm loaded firearm containing 15 rounds of ammunition, 107.5 grams of marijuana, five pills marked “M30,” and a digital scale. Agents located a second safe in the room that contained $10,900.
Williams has at least two prior convictions for a violent felony or serious drug offense and is therefore classified as a career offender. His criminal history includes four convictions for possession of methamphetamine with purpose to deliver, three convictions for possession of drug paraphernalia, and a conviction for possession of firearms by certain persons.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Little Rock comprises agents and officers from the Drug Enforcement Administration, New Orleans Field Division, Little Rock District Office, and the Saline County Sheriff’s Office, with the prosecution being led by the United States Attorney’s Office for the Eastern District of Arkansas.
This case was investigated by the Drug Enforcement Administration with assistance from the Saline County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Edward Walker.
# # #
Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
California man sentenced to nine years in prison for trafficking victims in prostitutionRead the Press Release
ALEXANDRIA, Va. – A California man was sentenced today to nine years in prison for coercion and enticement to travel in interstate for prostitution, which involved two adult women.
According to court documents, in August 2023, Demarco Raushi Coney-Jones II, 31, of Merced, coerced a victim to travel from Las Vegas, Nevada, to Alexandria, Virginia, to engage in prostitution. Between Oct. 2 and Oct. 8, 2023, Coney-Jones coerced another victim to travel to Alexandria, this time from California, to engage in prostitution.
Coney-Jones committed part of this offense while detained on charges stemming from his alleged involvement in the theft of jewelry valued at more than $3 million from a sex buyer of one of his trafficking victims. Despite a prior conviction for possessing an unregistered firearm, Coney-Jones possessed a stolen handgun and an AK-47 assault rifle with an obliterated serial number at the time of his arrest.
The FBI Washington Field Office investigated this case with assistance from the FBI Baltimore Field Office and the Frederick County Sheriff’s Office.
Assistant U.S. Attorney Alessandra Serano and former Assistant U.S. Attorney Meredith J. Edwards prosecuted the case.
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. 1:24-cr-176.
This release was revised on February 27, 2026, to recognize the assistance of the FBI Baltimore Field Office and the Frederick County Sheriff’s Office.
California Man Found Guilty of Eight Drug OffensesRead the Press Release
A California man who helped bring methamphetamine and fentanyl from California to Iowa was convicted by a jury today after a three-day trial in federal court in Cedar Rapids.
Joshua James Cannady, age 51, from Yucca Valley, California, was convicted of conspiracy to distribute a controlled substance and seven counts of distribution of a controlled substance. The verdict was returned this afternoon following about 90 minutes of jury deliberations.
The evidence at trial showed that Cannady worked with others to send methamphetamine and fentanyl to Cedar Rapids and Mount Vernon, Iowa, between May 2023 and November 2024. Law enforcement officers seized over 500 grams of actual methamphetamine and 1,700 fentanyl pills from seven different packages sent from California. Cannady’s fingerprints were on three of the packages.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Cannady remains in custody of the United States Marshal pending sentencing. Cannady faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of lifetime imprisonment, a $43,000,000 fine, and a lifetime term of supervised release following any imprisonment.
The case was prosecuted by Special Assistant United States Attorney Michael Hudson and Assistant United States Attorney Dillan Edwards, and it was investigated by the Drug Enforcement Administration, the United States Postal Inspection Services, the United States Marshals Service, the Federal Bureau of Investigation, the San Bernardino County, California, Sheriff’s Office,
the Riverside County, California, Sheriff’s Office, the Iowa Division of Narcotics Enforcement, the Mount Vernon-Lisbon Police Department, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-00025-CJW.
Follow us on X @USAO_NDIA.
Box Elder man sentenced to over 4 years in prison for assault on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS – A Box Elder man who impaled an individual’s eye with a cane on the Rocky Boy’s Indian Reservation was sentenced yesterday to 51 months in prison, followed by 3 years of supervised release, U.S. Attorney Kurt Alme said.
Mario Patacsil, Jr., 57, pleaded guilty in October 2025 to one count of assault resulting in serious bodily injury.
U.S. District Judge William W. Mercer presided.
The government alleged in court documents that On July 22, 2024, law enforcement officers were dispatched to a house after a 911 call reporting that the defendant, Mario Patacsil, Jr., had shot John Doe in the arm. When officers arrived, Doe stated that he had not been shot, but Patacsil had beaten him with a wooden cane and stuck him in the eye. Officers could see Doe’s right eye was swollen and had a circular wound around it. The wound appeared consistent with being prodded with the bottom of a cane. Doe also had bruising on his forearm. The officers arrested Patacsil and found a wooden cane in his car.
The FBI interviewed both Doe and Patacsil. Both described an argument that resulted in Patacsil, Jr. “poking” Doe with his cane before he fled the scene.
Doe was seen at Benefis Hospital in Great Falls. He was admitted with a ruptured orbital globe with no vision or light perception in his right eye and underwent surgery. In August, Doe went out of state for additional surgery in an attempt to save his eye. There he underwent a vitrectomy to remove the fluid within his eye, a lensectomy to remove the lens of his eye, and a retinectomy to remove the retina. Doe permanently lost vision in his right eye.
The U.S. Attorney’s Office prosecuted the case. The FBI and Chippewa Cree Law Enforcement Services conducted the investigation.
XXX
Bergen County Accountant Admits to Defrauding Investors Through Multi-Million Dollar Ponzi Scheme and Failing to File Income Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County accountant and tax preparer on February 17,2026 admitted to running a Ponzi and bank fraud scheme that bilked victims out of more than $10 million dollars and a related bank fraud scheme, among other crimes, Senior Counsel Philip Lamparello announced.
Evangelos Drosos, 51, of Glen Ridge, New Jersey, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with three counts of wire fraud, one count of bank fraud, and one count of failure to file an individual income tax return.
“For years, Evangelos Drosos abused the confidence his clients placed in him, operating a Ponzi scheme that funneled millions of their hard-earned dollars into his own lifestyle instead of legitimate investments. When investor funds ran dry, he escalated his conduct with additional fraud to keep the scheme going. This guilty plea holds him accountable and sends a clear message: those who run Ponzi schemes and exploit the faith of investors for personal gain will be identified, prosecuted, and brought to justice.”
- Senior Counsel Philip Lamparello
“Mr. Drosos created a complex fraud scheme that turned trusting investors into devasted victims,” stated Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office. “IRS-CI will continue working with our law enforcement partners to investigate those who betray the public’s trust and hold them accountable.”
According to documents filed in this case and statements made in court:
From 2013 through June 2025, Drosos used various businesses that he controlled to run a Ponzi scheme to falsely represent to his clients and other victim investors that he would manage their money through various investment strategies. In reality, Drosos did not invest his clients’ money and, instead, co-mingled those funds with his other accounts, and used the funds either to repay other investors or pay his personal expenses, including vacations, a luxury vehicle, and real estate. In order to hide the scheme , Drosos provided his victim investors with false account statements. Drosos caused his victims to send him more than approximately $10 million, resulting in aggregate losses of more than approximately $3 million to victims.
In June 2024, the Ponzi scheme fell apart, and Drosos no longer had sufficient investor deposits to repay other investors. To cover his tracks, Drosos engaged in a check-kiting scheme in which he cut checks that exceeded the funds in his bank accounts, then deposited and quickly withdrew funds from other bank accounts before the bogus checks bounced. Using this scheme, Drosos fraudulently obtained nearly $500,000 from the victim banks.
Drosos also admitted that he failed to file an individual income tax return for tax year 2023.
The counts of wire fraud each carry a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1,000,000, or twice the gross loss to the victim or gain to the defendant, whichever is greatest. The count of failure to file a tax return carries a maximum penalty of one year in prison and a fine of up to $100,000. Sentencing is scheduled for June 23, 2026.
Senior Counsel Lamparello credited special agents of the FBI’s Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Michael Carpenter; and the U.S. Postal Inspection Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to this guilty plea. He also thanked the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella; and the Sussex County Prosecutor’s Office, under the direction of Prosecutor Daniel M. Perez, for their assistance.
The government is represented by Assistant U.S. Attorneys Robert L. Toll and George L. Brandley (Unit Chief) of the U.S. Attorney’s Office’s Health Care Fraud & Opioids Enforcement Unit in Newark.
###
Defense counsel: Maximillian Novel, Esq.
drosos.information.pdfBell Man Pleads Guilty to Making Numerous Threats to Kill Newspaper Reporter, Muslims, and PoliticiansRead the Press Release
GAINESVILLE, FLORIDA – Peter Daniel Ring, 31, of Bell, Florida, pleaded guilty in federal court to sending multiple threatening interstate communications to kill or cause physical injuries. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “My office takes seriously any threat of violence, and we have zero-tolerance for criminal threats directed toward others because of their religious or political affiliation.”
Court documents reveal that in June 2025 the Federal Bureau of Investigations (FBI) received a complaint from the Washington Post newspaper that it had received a threat to kill one of its reporters. The defendant was identified as the source of the threat, and when contacted by the FBI he said he would not make any more threats. However, two months later, the FBI received a tip that the defendant was posting religiously and politically motivated threats of violence against Muslim people, members of the media, and prominent politicians. Between May and September 2025, the defendant made threats to kill or cause physical injury to at least fourteen victims.
Ring faces up to 10 years’ imprisonment upon sentencing, which is scheduled for April 28, 2026, at 4:00 pm, at the United States Courthouse in Gainesville before Chief United States District Judge Allen C. Winsor.
The case involved an investigation by the Federal Bureau of Investigations and is being prosecuted by Assistant United States Attorney Christie S. Utt.
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 https://www.justice.gov/usao-ndfl.
Armed Church Intruder Sentenced to Federal PrisonRead the Press Release
OKLAHOMA CITY – FERNANDO JESUS VILLEGAS, 41, of Oklahoma City, has been sentenced to serve 77 months in federal prison for possession of a firearm after a previous felony conviction, announced U.S. Attorney Robert J. Troester.
According to public records, on May 21, 2025, the Oklahoma City Police Department (OCPD) responded to a metro church near the intersection of S. Shartel Avenue and SW 25th Street, on reports of an armed intruder. Church members told OCPD that the intruder, later identified as Villegas, forced his way into the basement of the church where there were multiple people, including children, and demanded they help hide him. Witnesses reported that Villegas brandished a handgun, pointing it at a member, and waving it in the air. When officers arrived, Villegas fled from the basement and exited the church but was located and arrested nearby a short time later. During the arrest, officers seized a handgun from his front pocket.
On August 5, 2025, a federal Grand Jury charged Villegas with being a felon in possession of a firearm. Villegas pleaded guilty on October 22, 2025, and admitted he possessed a firearm despite his previous felony convictions.
Public records reflect that Villegas has multiple felony convictions in Oklahoma County District Court, including:
- possession of drug proceeds and possession of marijuana in case number CF-2003-3981;
- possession of methamphetamine in case number CF-2015-1908; and
- possession of methamphetamine and aggravated eluding a police officer in case number CF-2016-364.
At the sentencing hearing on February 18, 2026, U.S. District Judge David L. Russell sentenced Villegas to serve 77 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted its concern for protecting the public considering Villegas’ criminal history.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and OCPD. Assistant U.S. Attorney David Nichols, Jr., prosecuted the case.
Reference is made to public filings for additional information.
18 February 2026
West Bloomfield Resident Sentenced for Multi-State Unemployment Fraud SchemeRead the Press Release
DETROIT - A West Bloomfield resident was sentenced today for his role in a multi-state unemployment insurance fraud scheme, announced United States Attorney Jerome F. Gorgon Jr.
Joining in the announcement were Anthony P. D’Esposito, Inspector General, Department of Labor, Office of Inspector General, Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation and Jason Palmer, Director, Michigan Unemployment Insurance Agency.
Arron Howard, 33, was sentenced to 41 months in federal prison after having pleaded guilty to committing wire fraud.
According to court records, Howard obtained over $626,000 in fraudulent unemployment insurance benefits for dozens of third-party claimants. Howard admitted that he kept a portion of those fraudulent benefits for himself. In executing his scheme, Howard submitted fraudulent unemployment insurance applications to the states of Arizona, California, and Michigan.
Howard was sentenced by Judge Mark A. Goldsmith. As part of his sentence, Howard was ordered to pay $626,960.88 in restitution.
This case was investigated by the Department of Labor—Office of Inspector General, the Federal Bureau of Investigation andthe Michigan Unemployment Insurance Agency.
The case was prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Washington area airbag thieves sentenced to prisonRead the Press Release
ALEXANDRIA, Va. – Three men have been sentenced to prison for their roles in a conspiracy to engage in interstate transportation and sale of stolen goods involving an airbag theft ring in the metro Washington area.
According to court documents, in August 2022, Chinese national Yuchen Zhang, 28, and Adisorn Damrongchai, 47, of Alexandria, began stealing airbags from vehicles in Virginia and transporting them to Maryland to sell them to Keith William Smith, 45, of Severn, Maryland, who sold used car parts, including stolen airbags.
On November 13, 2022, Zhang and Damrongchai were arrested in Arlington County just after they had stolen several airbags. Zhang and Damrongchai were in possession of window punches, screwdrivers, pliers, and a hand-held flashlight as well as six stolen airbags.
After their arrest, Zhang and Damrongchai resumed stealing airbags and selling them to Smith. On Sept. 20, 2024, Zhang drove to Silver Spring, Maryland, stole an airbag, and returned to Virginia with it. On Oct. 4, 2024, Zhang picked up Damrongchai from his residence and traveled to neighborhoods in Fairfax and Herndon where they stole airbags from multiple vehicles. Later that day, law enforcement searched Zhang’s residence and vehicles and Damrongchai’s residence and recovered 14 airbags, some of which had been stolen earlier that morning.
Smith paid Damrongchai a total of $47,170 and Zhang a total of $37,220 for stolen airbags. Together, the three men were responsible for hundreds of stolen airbags across northern Virginia.
Zhang pled guilty in Arlington to grand larceny and destruction of property valued in excess of $1,000. On Dec. 18, 2024, he pled guilty in the Eastern District of Virginia to conspiracy to engage in interstate transportation of stolen property and was sentenced on March 7, 2025, to three years and two months in prison. In 2020, Zhang was convicted in the Eastern District of Virginia of conspiracy to commit wire fraud for his role in a $1.1 million fraud scheme involving gift cards. For that conviction, Zhang was sentenced to seven months in prison.
Smith pled guilty on March 10, 2025, and was sentenced on May 28, 2025, to six months in prison.
On February 21, 2025, Damrongchai was convicted in Arlington of tampering with a vehicle, destruction of property, two counts of destruction of property greater than $1000, sale of stolen property greater than $1,000, and possession of burglarious tools. Damrongchai pled guilty in the Eastern District of Virginia on Dec. 3, 2025, to conspiracy to engage in interstate transportation and sale of stolen goods. Damrongchai was sentenced to a total of two years and nine months in prison.
The FBI Washington Field Office, Alexandria Police Department, and Fairfax County Police Department investigated this case with valuable assistance from the Arlington County Police Department, Howard County Police Department, and Manassas City Police Department.
Assistant U.S. Attorney Katherine E. Rumbaugh and Special Assistant U.S. Attorney Lyndi McVey prosecuted the case.
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 Nos. 1:24-CR-261 (Zhang), 1:25-CR-58 (Smith), and 1:25-cr-199 (Damrongchai).
USAO Collects More Than $134M from Civil and Criminal Actions in Fiscal Year 2025Read the Press Release
CLEVELAND – United States Attorney David M. Toepfer announced that for fiscal year 2025 (FY2025), the U.S. Attorney’s Office for the Northern District of Ohio (USAO) collected a total of $134,018,633.20 from criminal and civil actions. This includes amounts collected for both the district, as well as other components of the Department of Justice (DOJ).
The USAO collected $18,220,994.34 in total, with $9,650,947 derived from criminal actions and $8,570,047.34 from civil actions. In cases pursued jointly with other DOJ components, the USAO collected an additional $115,797,638.84. Of this amount, $57,063.17 was collected from criminal actions and $115,740,575.67 was collected from civil actions.
In addition to the criminal and civil collections, the USAO, working with partner agencies and divisions, garnered $14,523,149 in asset forfeiture funds in FY2025. Forfeited funds deposited into the Department of Justice Asset Forfeiture Fund are used to restore monies to crime victims and for a variety of other law enforcement purposes.
“These amounts represent the dedication of the men and women in our office who come to work each day on a mission to make sure that justice is served and victims of crime are made whole,” said U.S. Attorney Toepfer. “We are grateful to our local, state, and federal law enforcement partners who work with us to hold both individuals and organizations accountable for breaking federal laws.”
U.S. Attorneys’ Offices throughout the country, along with the DOJ’s litigating 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 some federal crimes, who have suffered a physical injury or financial loss. While restitution is paid directly to a victim, criminal fines and felony assessments are paid to DOJ’s Crime Victims’ Fund, which then distributes the funds to federal and state victim compensation and victim assistance programs.
Notable cases that contributed to the amounts collected in FY25 include:
U.S. v. Lima Refining Co. – The USAO’s Civil Division and DOJ’s Environmental and Natural Resources Division settled a lawsuit against the Lima Refining Company for violations of the Clean Air Act. This suit related to violations of federal regulations governing emissions standards. The settlement required the Allen County oil refinery to pay a $19 million civil penalty and implement approximately $150 million in capital improvements to reduce emissions of benzene, a carcinogen, as well as other hazardous air pollutants and volatile organic compounds. The civil penalty has been paid in full.
U.S. v. ex rel Novik v. Cosmax USA et al. – This lawsuit was filed by a former employee of Cosmax USA, alleging that false information was submitted in connection with eligibility for Paycheck Protection Program funds. Cosmax USA agreed to pay $6 million to resolve the allegations. Of that amount, $3 million was earmarked for restitution payable to the Small Business Association. The settlement has been paid in full.
Fresh Mark, Inc. – Fresh Mark, Inc., a nationwide supplier of specialty meat products, entered into a non-prosecution agreement with the USAO, related to a former hiring manager’s involvement in an identity theft scheme, that involved undocumented, alien employees working at the company’s processing plants. Fresh Mark paid a $3,719,997 penalty as part of the agreement. Pursuant to the Victims of Crime Act, the money will go to the federal Crime Victims Fund.
BBR Investments v. Michael’s, Inc. – In 2024, the USAO appeared in a state foreclosure proceeding against Michael’s, Inc., a hospitality and catering company, and asserted an interest on behalf of the U. S. Small Business Association (SBA). The SBA’s interest arose from a second mortgage between the SBA and Michael’s. The USAO worked quickly to establish priority to the foreclosure proceeds and secured $767,773.99 for the SBA.
U.S. & State of Ohio v. City of Youngstown – Pursuant to a 2002 Clean Water Act Consent Decree, the City of Youngstown was required to adhere to a long-term control plan to control the overflow of untreated wastewater. The city failed to meet requirements of the plan and paid a penalty of $739,500 as a result. The funds will go to the Environmental Protection Agency.
U.S. v. Mark Brant – The defendant pleaded guilty to one count of Maintaining a Drug-Involved Premises. On Sept. 11, 2024, Brant was sentenced to 18 months incarceration and ordered to pay a $500,000 fine. The full amount was paid and deposited into the federal Crime Victims Fund.
U.S. v. Paul Spivak et al. – The defendant and his co-conspirators were convicted of Conspiracy to Commit Securities Fraud. The fraud resulted in a loss to investors of more than $6 million. In FY25, the USAO recovered over $360,000 in restitution owed to the fraud victims.
Notable cases that contributed to forfeitures in FY25 include:
U. S. v. 8,207,578 Tether (USDT) Cryptocurrency –This cryptocurrency investment fraud scam was perpetrated against victims throughout the country. In May 2025, the subject $8.2 million USDT in cryptocurrency was forfeited to the United States. The final order of forfeiture provided that, “Returning forfeited assets to victims is one of the primary goals of the U.S. Department of Justice’s Asset Forfeiture Program.” Accordingly, the USAO and the FBI are taking steps to allow all 38 identified victims the opportunity to recover their stolen monies.
U. S. v. Edward Oluwasanmi and Joseph Oloyede – The defendants pleaded guilty to Conspiracy to Commit Wire Fraud, Money Laundering, and tax charges related to COVID business loan programs. In addition to being ordered to pay more than $5.6 million in restitution, the defendants also forfeited approximately $715,162.21 seized from financial accounts and properties valued at approximately $1.2 million.
U. S. v. $774,830.00 – Defendant Alexandre Haussmann was driving a rental car from Chicago to New York when he was stopped for a traffic violation on the Ohio Turnpike. During the stop, a state trooper’s drug canine alerted to the trunk of the vehicle, which resulted in a search of the trunk and the seizure of $774,830 in cash. During discovery in the civil forfeiture case, Haussmann refused to answer any questions about the source of the currency. This resulted in the district court ultimately striking his claim and entering a default judgment for the $774,830 in favor of the government.
USA Attorney Ellis Boyle Meets with Law Enforcement Officers in Kitty Hawk, NCRead the Press Release
USA Attorney Ellis Boyle met with the outstanding and remarkable Kitty Hawk Police Department team. They were joined by Mayor Charlotte Walker and Councilman Peter Mantz. Thank you for all you do for Kitty Hawk and North Carolina.
U.S. Attorney's Office Collects Nearly $12 Million in Civil and Criminal Actions in Fiscal Year 2025Read the Press Release
LAS VEGAS – The District of Nevada collected $11,808,878.69 in criminal and civil actions in Fiscal Year 2025, announced First Assistant United States Attorney Sigal Chattah. Of this amount, $11,184,107.37 was collected in criminal actions and $624,771.32 was collected in civil actions.
Additionally, the District of Nevada worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $15,031.84 in cases pursued jointly by these offices. Of this amount, $100 was collected in criminal actions and $14,931.84 was collected in civil actions.
“The District of Nevada is committed to collecting restitution for victims of federal crime and criminal and civil debts owed to the United States,” said First Assistant United States Attorney Chattah. “The Financial Litigation Unit and Asset Recovery Unit are a critical part of fulfilling our mission by collecting restitution and debts owed. Thanks to the dedicated Assistant U.S. Attorneys and professional staff we are holding wrongdoers financially accountable for their crimes.”
The U.S. Attorneys’ Offices, along with the department’s litigating 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.
Additionally, the District of Nevada, working with partner agencies and divisions, collected $30,514,684.99 in asset forfeiture actions in Fiscal Year 2025. Forfeited assets are used to restore funds to crime victims and for a variety of law enforcement purposes.
- In December 2024, a victim received $3,443,286.03.
- In April 2025, the District of Nevada and the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) authorized the forfeited $531,308.46 of the fraudulently obtained Paycheck Protection Program (PPP) loans be paid to the Small Business Administration.
- In May 2025, the District of Nevada and MNF authorized the forfeited $1,068,123.94 of the fraudulently obtained PPP loans be paid to the Small Business Administration.
- In July 2025, a victim received $32,193,787.94.
###
U.S. Attorney Zachary A. Keller Highlights Seven Recent Prosecutions Involving Threats and Assaults Against Federal Law Enforcement and Public OfficialsRead the Press Release
LAFAYETTE, LA – Today, United States Attorney Zachary A. Keller highlights a series of recent prosecutions undertaken by the Office that reflect its ongoing commitment to protecting federal law enforcement officers and public officials, to safeguarding the integrity of the judicial process, and to holding accountable those who threaten, assault, or seek to interfere with the administration of justice.
“Every attack or threat against our law enforcement officers, our public officials, or our courts is an attack on the rule of law itself,” said U.S. Attorney Keller. “These arrests, indictments, and convictions show our Office’s commitment alongside our federal partners to vigorously pursue and prosecute those who perpetrate these acts.”
The following seven ongoing cases show the Office’s commitment to ensuring the safety of our federal law enforcement officers and public officials:
Justin Chadwick Butler, 31 of Shreveport, was arrested by criminal complaint on February 13, 2026, after posting repeated violent threats on social media targeting Speaker Mike Johnson and the President Donald Trump. These charges came after authorities identified several social media posts in which Butler advocated for Speaker Johnson’s death or execution, including stating for example that “Mike Johnson couldnt [sic] lie so smoothly with bullet holes in his face.” Butler faces up to 10 years in prison for the charges currently pending. The matter is being investigated by the United States Capitol Police, United States Secret Service, Homeland Security, Caddo Parish Sheriff’s Office, Louisiana State Police, FBI and United States Marshals Service and is being prosecuted by Assistant U.S. Attorney William Gaskins with assistance from Legal Assistant Amanda Morgan.
Avieyle Moore, 40 of Jackson Parish, who was incarcerated at the time of the offense, pled guilty on January 30, 2026, to mailing a threatening letter to the Supreme Court of the United States that falsely claimed to be laced with fentanyl that would kill its reader. The letter, which contained approximately one tablespoon of a white, powdery substance and stated, “IF You Are Reading this you are gonna die soon because this letter is laced with Fentanyl!!”, caused the evacuation of the Supreme Court’s warehouse facility and prompted a hazardous materials response. Moore faces a maximum penalty of five years in prison and three years of supervised release. The matter was investigated by the United States Supreme Court Police, United States Secret Service and the FBI and is being prosecuted by Assistant U.S. Attorney Seth Reeg with assistance from Legal Assistant Stevie Hickman.
Alex Taylor Fontenot, 27 of Lake Charles, was indicted on February 4, 2026, after allegedly posting a social media video threatening Immigration and Customs Enforcement (“ICE”) agents. In the video, Fontenot allegedly stated that if ICE agents “step foot on to my house, you’re leaving in a body bag” and that they would “be dropped like flies, immediately, so [they] won’t feel a thing.” If convicted, Fontenot faces up to five years in federal prison and three years of supervised release. The matter is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney John W. Nickel with assistance from Legal Assistant Dru Casebonne.
Justice Hunter, 41 of Alexandria, was indicted on February 4, 2026, following his January arrest for striking a Courtroom Security Officer (“CSO”) at the United States Federal Courthouse in Alexandria, Louisiana. According to court documents, Hunter stood outside the courthouse yelling profanities and making statements about a coming revolution before entering the building and continuing to act disruptively. After refusing repeated orders to leave, Hunter allegedly struck a CSO in the face and resisted officers attempting to detain him. If convicted, Hunter faces up to 20 years in federal prison and three years of supervised release. The matter is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen with assistance from Legal Assistant Christy Angelle.
Matthew Reardon, 38 of Oxford, Mississippi, was convicted at trial on January 16, 2026, of disorderly conduct after he repeatedly obstructed the entrance to the John M. Shaw Federal Courthouse in Lafayette, Louisiana and harassed CSOs in an escalating pattern of conduct while refusing to leave the premises. Reardon faces up to 30 days in prison. The matter is being investigated by the United States Marshals Service and prosecuted by Assistant U.S. Attorney LaDonte Murphy with assistance from Legal Assistant Christy Angelle.
Maximiliano Perez-Perez, 22 of Mexico, is detained pending trial after he was indicted in December 2025 for biting an ICE officer while being detained for being an illegal alien subject to removal. Perez-Perez faces up to 20 years in prison as well as three years of supervised release. The matter is being investigated by ICE and Homeland Security Investigations and is being prosecuted by Assistant U.S Attorneys Craig Bordelon II and Lauren Sarver with assistance from Legal Assistant Dru Casebonne.
Micah James Legnon, 29, of New Iberia, is detained pending trial after being charged by criminal complaint in December 2025 for allegedly making a threat against New Orleans-based ICE officers. On December 5, 2025, Legnon allegedly posted that it was “time to recreate Waco TX with these f***ers,” and one week later allegedly drove toward New Orleans with body armor, an assault rifle, a handgun, and a gas cannister. A subsequent search of his residence resulted in the seizure of additional weapons, ammunition, and tactical training materials. The investigation remains ongoing, is being investigated by the FBI, and is being prosecuted by United States Attorney Zachary A. Keller and Assistant U.S. Attorney John W. Nickel with assistance from Legal Assistant Dru Casebonne.
These cases reflect the Office’s ongoing priority to vigorously enforce federal laws designed to protect law enforcement officers, our judicial process, and those who serve the administration of justice. Federal law provides significant penalties for threats, assaults, and obstruction of officers and court personnel, and those who violate these statutes will be held accountable.
Criminal complaints and indictments are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
CONTACT
Public Affairs
United States Attorney’s Office
Western District of Louisiana
www.justice.gov/usao-wdla
Twitter @USAO_WDLA
Two-Time Felon Sentenced for Illegally Re-Entering the United StatesRead the Press Release
A man who illegally re-entered the United States after having been convicted of two federal immigration-related felony offenses was sentenced February 18, 2026, to a total of four years in federal prison.
Jesus Banuelos-Lepe, 49, who is a citizen of Mexico but had been living in Maurice, Iowa, received the prison term after a September 30, 2025, guilty plea to one count of illegal re-entry as a felon. Additionally, at the time he was found illegally in the United States, he was on federal supervised release from another 2023 federal illegal re-entry conviction which included conditions he neither illegally re-enter the United States, nor commit new law violations. The hearing on February 18, 2026, was a combined sentencing for the 2025 illegal re-entry conviction, and for the violations of his 2023 supervised release terms.
At the combined hearing, Banuelos-Lepe admitted that on July 20, 2025, he was arrested in Sioux County, Iowa, for operating while intoxicated after he was found passed out behind the wheel of his vehicle in the middle of the road after consuming 12 beers. Following his arrest, he was booked into the Sioux County Jail but provided an alias to law enforcement. Further investigation proved his true identity as Banuelos-Lepe, a citizen of Mexico, who had been removed from the United States on five occasions and did not have permission to legally be in the United States.
Banuelos-Lepe had previously been convicted of federal felony transportation of an illegal alien, in April of 2007, in the United States District Court for the District of Oregon. This offense involved defendant smuggling two aliens into the United States from Mexico then holding one of them against their will pending additional smuggling fees.
Banuelos-Lepe was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Banuelos-Lepe was sentenced to 24 months’ imprisonment for this 2025 illegal re-entry conviction and 24 months’ imprisonment for violating conditions of supervised release from his 2023 conviction. Those periods of incarceration are to be served consecutively, for a combined sentence of four years’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Banuelos-Lepe is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Department of Homeland Security.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-04045 and 25-CR-4057. Follow us on X @USAO_NDIA.
Two Mexican nationals removed to U.S. to face federal drug trafficking charges in New MexicoRead the Press Release
ALBUQUERQUE – Two Mexican nationals were removed to the United States to face federal drug trafficking charges in New Mexico.
Daniel Alfred Blanco-Joo, 39, made his initial appearance today in New Mexico after being removed from Mexico on a five-count indictment charging him with conspiracy, distribution of fentanyl, distribution of an analogue of fentanyl, and international money laundering conspiracy.
David Eliezer Seas-Centeno, 43, made his initial appearance today in New Mexico after being removed from Mexico on a charge of conspiracy to distribute fentanyl.
Federal agents assumed custody of Blanco-Joo and Seas-Centeno from Mexican authorities on January 21, 2026. If convicted, both face no less than 10 years and up to life in prison.
First Assistant U.S. Attorney Ryan Ellison made the announcement on behalf of the Homeland Security Task Force.
Assistant U.S. Attorneys David B. Hirsch and Blake Nichols are prosecuting these cases.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Region II CORE 7 is comprised of agents and officers from Homeland Security Investigations (HSI), the Federal Bureau of Investigations (FBI), the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service (IRS), Customs and Border Protection – Office of Field Operations (OFO), U.S. Border Patrol (USBP) and Air and Marine (AMO), Office of Professional Responsibility (OPR), United States Department of the Interior – Bureau of Land Management (BLM), Joint Task Force North (JTF-N), United States Postal Inspection Service (USPIS), United States Marshal Service (USMS), Department of State, Bureau of Diplomatic Security (DSS), U.S. Citizenship and Immigration Services (USCIS), Texas Department of Public Safety (TXDPS), El Paso Police Department (EPPD), New Mexico State Police (NMSP), West Texas / New Mexico High Intensity Drug Trafficking Areas (HIDTA), Albuquerque Police Department, New Mexico Sixth Judicial District, Las Cruces/Dona Ana County Metro Narcotics Agency, and the prosecution is being led by the Office of the United States Attorney for the Districts of Western Texas and New Mexico.
View the Indictment (Seas-Centeno).pdf View the Indictment (Blanco-Joo).pdfAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Fraudsters Sentenced for Stealing Nearly $1,300,000 over Six Months from Monroe County BusinessRead the Press Release
MOBILE, AL – Between 2023 and 2024, two college friends, Dustin Cole Mosley, 40, and Jason Robert Riel, 41, concocted and executed a scheme for them to steal money from Mosley’s employer, the Alabama River Cellulose plant (“ARC”), in Monroe County, Alabama. The United States Attorney charged the pair with a Conspiracy to Commit Wire Fraud, to which they pleaded guilty.
The pair created a shell safety services and supplies business, which billed the ARC for fake safety services and supplies purportedly provided to the ARC. Mosley worked as the ARC’s Safety Manager, and it entrusted him to approve invoices for safety services and supplies provided to the ARC. He approved payment to his friend’s shell company more than 20 times, for a total of nearly $1,300,000, which the pair split. The Court sentenced Mosley to serve 18 months in prison and Riel to one year and one day in prison and ordered them both to pay restitution. Mosley received a harsher sentence based on his violation of a position of trust.
“Financial crimes leave paper trails that we and our investigative partners—here, the FBI—can and do follow. It’s only a matter of time before they are caught. Whatever short-term monetary benefit they received evaporates, replaced by prison time, and repayment of the money they stole.” U.S. Attorney Sean P. Costello said. “Together with our law enforcement partners, we will continue to aggressively investigate and prosecute anyone who victimizes businesses to line their own pockets.”
The FBI’s Mobile Division investigated the case. Its Special Agent in Charge, Sara Jones stated, “The FBI is committed to investigating those who exploit the American people for financial gain and seeing through the prosecution of those individuals. These sentences are another example of our collaborative efforts to combat criminal activity in conjunction with our partner agencies. The hard work of our agents and professional staff, along with a dedicated United States Attorney’s Office, assures that these criminals will not go unpunished for their actions.”Assistant U.S. Attorney Alex F. Lankford, IV, prosecuted the case on behalf of the United States.
Two Former BOP Employees Sentenced for Separate Bribery and Illegal Gratuity OffensesRead the Press Release
LEXINGTON, Ky. – Two former employees at the Federal Medical Center Lexington (“FMC Lexington”), a federal prison managed by the Bureau of Prisons, were sentenced last week for separate incidents related to receiving illegal bribes and gratuities.
A. Jade Howard, 36, of Port Charlotte, Fl., was sentenced to 12 months and 1 day by U.S. District Judge Karen Caldwell for bribery. According to her plea agreement, from 2021 through October 2024, Howard was employed as a correctional officer and then as a materials handler. Howard knew that inmates were not allowed to possess contraband, including cigarettes and other illicit substances, and that she had a duty to report any such possession. Nonetheless, after being approached by an inmate at FMC Lexington about smuggling cigarettes into the facility, Howard agreed to bring the contraband into FMC Lexington in exchange for money. Howard smuggled tobacco cigarettes for the inmate, and later smuggled in what she believed to be synthetic marijuana (subsequently determined through laboratory testing to be 5F-ADB, a Schedule I controlled substance). In exchange, between December 2023 and December 2024, Howard received $18,602 through mobile banking applications.
Ariel Zulewski, 29, of Georgetown, Ky., was sentenced to 12 months, by U.S. District Judge Karen Caldwell for abusive sexual contact and receipt of an illegal gratuity. According to her plea agreement, from December 1, 2023, through February 29, 2024, Zulewski was employed at FMC Lexington as a recreational specialist. During that time, Zulewski engaged in sexual contact with an inmate, knowing that any sexual contact between FMC staff and inmates was strictly forbidden. Furthermore, Zulewski brought the inmate contraband, including tobacco and vapes, and knew that the inmate possessed a cell phone, which was also prohibited. On December 9, 2023 and January 17, 2024, Zulewski accepted CashApp payments totaling $500 for providing the inmate with the contraband and concealing his possession of contraband.
Under federal law, Howard and Zulewski must serve 85 percent of their prison sentence. Upon their release from prison, they will each be under the supervision of the U.S. Probation Office for one year.
Paul McCaffrey, First Assistant United States Attorney for the Eastern District of Kentucky; William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentencing.
The Howard investigation was conducted by DOJ-OIG and FBI. The Zulewski investigation was conducted by DOJ-OIG. The U.S. Attorney’s Office was represented by Assistant U.S. Attorney Emily Greenfield.
— END —
Twice-Convicted Accountant Is Sentenced for Embezzling More Than $1.1 Million from EmployerRead the Press Release
CHARLOTTE, N.C. – A twice-convicted accountant was sentenced to prison today for embezzling more than $1.1 million from her employer, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Mandy Deann Urban, 49, formerly of Charlotte, was ordered to serve 41 months in prison followed by two years of supervised release, and to pay more than $1 million in restitution.
U.S. Attorney Ferguson is joined in making today’s announcement by Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Estella D. Patterson of the Charlotte Mecklenburg Police Department.
According to court records, from January 2019 to June 2022, Urban was employed as a senior staff accountant for a Charlotte-based company. In that capacity, Urban was responsible for maintaining the company’s general ledger, preparing financial statements, and reconciling the company’s accounts payable and receivable and bank statements. Court records show that Urban executed a scheme to defraud her employer by misusing her access to make multiple transfers from the company’s bank accounts to accounts under Urban’s control. Urban then falsified the company’s books and records to conceal the scheme. Urban made more than 245 fraudulent transfers from the accounts of the company totaling $1,115,344.73.
Urban was previously convicted of Grand Theft in Florida for stealing approximately $135,000 and was sentenced to five years of supervised probation in 2015. Urban was convicted again in Florida for a different scheme to defraud and sentenced to two years in prison in June 2022 and was ordered to pay approximately $283,000 in restitution.
On March 26, 2024, Urban pleaded guilty to wire fraud. She will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Ferguson commended HSI and CMPD’s Financial Crimes Unit for their investigation of the case.
Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Third Nigerian Extradited to U.S. in Connection with the Sextortion and Death of an Area Young ManRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Afeez Olatunji Adewale, 26, was extradited from Nigeria to the United States to face charges related to the sexual extortion and death of a young man in the Eastern District of Pennsylvania.
Adewale is charged by indictment with wire fraud and money laundering conspiracy. He appeared in federal court in Philadelphia before U.S. Magistrate Judge Lynne A. Sitarski yesterday.
Adewale was arrested in Nigeria on August 17, 2023, as part of a wider operation with the FBI to apprehend sexual extortionists targeting minors in the United States. He was extradited to the United States on Friday, February 13, 2026, with the assistance of the Justice Department’s Office of International Affairs, the FBI Legal Attaché in Abuja, and the FBI, who took him into custody. The support and assistance of Nigerian security authorities was essential to this effort, notably that of Nigeria’s Attorney General of the Federation and Minister of Justice, the Federal Ministry of Justice’s International Criminal Justice Cooperation Department, and the Economic and Financial Crimes Commission.
Adewale’s co-defendants, Imoleayo Samuel Aina, aka “Alice Dave,” 27, and Samuel Olasunkanmi Abiodun, 26, were extradited to the U.S. in August 2024.
Abiodun pleaded guilty to money laundering conspiracy and wire fraud and was sentenced by United States District Judge Joel H. Slomsky in June 2025 to five years in prison.
Aina later pleaded guilty to cyberstalking, interstate threat to injure reputation, receiving proceeds of extortion, money laundering conspiracy, and wire fraud, and was sentenced by Judge Slomsky in October 2025 to six years in prison.
This case was investigated by FBI Philadelphia’s Fort Washington Resident Agency and the Abington Township Police Department and is being prosecuted by Assistant United States Attorney Patrick Brown.
The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.
Texas and Maryland women plead guilty to COVID fraudRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Brandie S. Williams, 45, of Dallas, Texas, and Brittany L. Herbert, 39, of Brandywine, Maryland, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit wire fraud and bank fraud, which carries a maximum penalty of 30 years in prison and a $1,000,000 fine. In addition, defendant Herbert also pleaded guilty to bank fraud.
Assistant U.S. Attorneys Colleen M. McCarthy and Charles M. Kruly, and Ariel Glaser and Jennifer L. Bilinkas of the Criminal Division’s Fraud Section, who are handling the case, stated that between May 2020 and June 2021, Williams and Herbert conspired with Adam Arena and Amanda Gloria, and others, to fraudulently obtain and misuse multiple COVID-19 Paycheck Protection Program (PPP) emergency relief loans, including:
- Williams, Herbert, and Gloria worked together to fraudulently obtain an approximately $292,700 loan for Williams’s business, Beyond the Next Level, Inc. including by, among other things, preparing and submitting a fraudulent IRS tax form as part of the PPP loan application, which falsely stated that Williams’s business had 25 employees and paid total payroll expenses of $1.4 million in 2019 when, in fact, the business had no employees. After receiving the PPP loan, Williams did not use the funds for legitimate business-related purposes. Instead, Williams used the funds for her own personal enrichment and transferred over $43,000 to bank accounts controlled by Gloria and Herbert.
- Williams, Herbert, Gloria, and Arena also worked together to fraudulently obtain a loan for approximately $954,000 for Arena's business, ADA Auto Group. After the PPP loan proceeds were transferred into an account controlled by Arena, he conducted a series of financial transactions, including for his own personal benefit, for Gloria's benefit, and for the benefit of others.
Adam Arena and Amanda Gloria were previously convicted for their roles in the conspiracy.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The pleas 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 T. Chavis, Jr.; the United States Postal Inspection Service, Boston Division, under the direction of Acting Inspector-in-Charge Nicholas J. Bucciarelli; and the Social Security Administration Office of Inspector General, under the direction of Special Agent-in-Charge Michael McGill, New York Field Division.
Brandie Williams is scheduled to be sentenced on June 11, 2026, and Brittany Herbert is scheduled to be sentenced on July 8, 2026, both before Judge Sinatra.
# # # #
Texas Man Sentenced to 30 Years in Prison for Traveling to North Carolina to Engage in Sexual Activity with A ChildRead the Press Release
CHARLOTTE, N.C. – A Texas man was sentenced to 30 years in prison today for traveling to North Carolina to engage in sexual activity, enticement, and production of child pornography with a child, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Rusty Joseph Whittaker, 44, of Austin, was also ordered to serve 10 years of supervised release and to register as a sex offender. A federal jury convicted Whittaker in September 2025, following a four-day trial.
Reid Davis, Special Agent in Charge of the FBI in North Carolina, and Chief Estella D. Patterson of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making today’s announcement.
“Predators like Rusty Whittaker are a parent’s worst nightmare,” said U.S. Attorney Ferguson. “This defendant traveled across state lines to exploit a child, used technology to conceal his crimes, and inflicted long-lasting trauma on a vulnerable victim. A lengthy sentence ensures that Whittaker will never have the opportunity to harm another child.”
“Whittaker intentionally targeted, groomed, and violated a child for his own sexual gratification. While it is difficult to understand how anyone could do something like this, it is the stark reality of the danger lurking online every day. We must talk to our children to prevent them from being victimized by disgusting predators like Whittaker,” said FBI Special Agent in Charge Reid.
According to filed court documents, evidence presented at trial, and witness testimony, Whittaker met the minor in an online platform called Antiland, which provides its users anonymity and automatically deletes messages and content shared by its users. Whittaker then moved the conversation to Snapchat, which also automatically deletes messages and content. Using these online messaging platforms, online payment platforms, and other means, Whittaker solicited and viewed sexually explicit images and videos of the victim while continuing to pressure the victim to meet him in person for illicit sexual activity. On May 20, 2023, Whittaker traveled from Nashville, where he was attending a conference, to Charlotte for the purpose of engaging in illicit sexual activity with the minor. Trial evidence showed that Whittaker waited for the minor’s father to fall asleep, picked her up from her home, drove her to a hotel, and engaged in sexual activity with the minor. Whittaker provided the minor things of value before driving her back home and dropping her off a distance away from her home, leaving her to walk barefoot.
In sentencing Whittaker, Senior U.S. District Judge John A. Gibney, Jr., said, “This is a case that is very serious. It involves planning and manipulation of a child. The word needs to go out that we won’t put up with this.”
Whittaker remains in the custody of the U.S. Marshals Service until he is transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The FBI investigated the case assisted by CMPD.
Assistant U.S. Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Texas Man Guilty of Possession with Intent to Distribute CocaineRead the Press Release
NEW ORLEANS, LOUISIANA – COREY TOLIVER, a/k/a “Woog” (“TOLIVER”) age 45, a Texas resident, pled guilty on February 10, 2026, before United States District Judge Darrel James Papillion to possession with intent to distribute five hundred (500) grams or more of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 851, announced U.S. Attorney David I. Courcelle.
According to court documents, in April 2025, TOLIVER transported, and possessed, approximately two (2) kilograms of cocaine with intent to distribute them into and within the Eastern District of Louisiana.
At sentencing, TOLIVER faces a mandatory minimum sentence of ten (10) years imprisonment, and up to life imprisonment, a fine of up to $8,000,000, at least 8 years of supervised release, and a mandatory special assessment fee of $100.
The case was investigated by the Federal Bureau of Investigation, the Jefferson Parish Sheriff’s Office, and the Louisiana State Police. It is being prosecuted by Assistant U.S. Attorney Lynn E. Schiffman of the Narcotics Unit.
* * *
Tampa Man Indicted for Coercing a Minor to Engage in Sexual Activity, Producing Child Sexual Abuse Material, and Transferring Obscene Material to a MinorRead the Press Release
Tampa, Florida – Angel Rivera (49, Tampa) has been charged by indictment with coercion and enticement and attempted coercion and enticement of a minor to engage in sexual activity, production of child sexual abuse material, and transfer of obscene material to a minor. If convicted on all counts, Rivera faces a maximum penalty of life in federal prison. U.S. Attorney Gregory W. Kehoe made the announcement.
According to the indictment, between October 15 and November 22, 2025, Rivera knowingly persuaded, induced, enticed, coerced and attempted to persuade, induce, entice, and coerce an individual under the age of 18 to engage in sexual activity. On October 16, 2025, Rivera attempted to transfer obscene material to an individual who he believed to be under the age of 16. On October 19 and October 22, 2025, Rivera allegedly employed, used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by the FBI and Tampa Police Department. It will be prosecuted by Assistant United States Attorney Courtney Derry.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Suburban Chicago Man Sentenced to 37 Years in Prison for Sexually Exploiting Nearly 100 ChildrenRead the Press Release
CHICAGO — A federal judge has sentenced a Chicago man to 37 years in prison for sexually exploiting nearly 100 children with whom he communicated on social media.
In 2022, SHAUN HEALY used Snapchat to contact and persuade young girls to create and send him sexually explicit images and videos of themselves. Healy often posed as a young girl himself to gain his victims’ trust and induce them to produce the sexually abusive material. He provided graphic, step-by-step instructions to his victims, including the type of explicit conduct they should engage in and how to record and send it to him.
Healy also extorted his victims by threatening to publish the images and videos they sent him if they didn’t produce and send him even more such materials.
In December 2022, law enforcement arrested Healy at his residence in Elburn, Ill., and searched his cellular phone. Law enforcement discovered a password-protected album on the phone that contained dozens of carefully organized folders of children that Healy had stored from his Snapchat account. Each folder contained the child’s Snapchat username, image, and a catalog of the sexually explicit videos and images that he instructed them to produce and send.
Healy, 45, pleaded guilty last year to child exploitation charges. U.S. District Judge Sharon Johnson Coleman imposed the 37-year prison sentence during a hearing on Feb. 12, 2026, in federal court in Chicago.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Matthew J. Scarpino, Special Agent-in-Charge of Homeland Security Investigations (HSI) in Chicago. Valuable assistance was provided by the Illinois Attorney General’s Office’s Internet Crimes Against Children Task Force.
“Defendant is a child predator,” Assistant U.S. Attorneys Saqib Mohammad Hussain and Elly Moheb argued in the government’s sentencing memorandum. “And not just a child predator, but one who ruthlessly sexually exploited young girls and prided himself on it. What defendant made these children do will affect them for the rest of their lives in ways that we cannot appreciate.”
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat child sexual exploitation and abuse. PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, while also providing critical services to victims.
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
For more information about HSI’s efforts to protect children from sexual predators, visit Know2Protect.gov.
St. Louis County Man Sentenced to 90 Months in Prison for Carjacking 72-Year-OldRead the Press Release
ST. LOUIS – U.S. District Judge Joshua M. Divine on Wednesday sentenced a man to 90 months in prison and fined him $3,000 for carjacking a 72-year-old in 2023.
Kirk Hall, now 25, was one of two men who stole a BMW X5 on July 7, 2023, from a St. Louis County apartment complex. Shortly before 1:00 a.m., the victim parked at the complex. Hall and the other gunman ordered the driver and passenger out. The other gunman then stole the vehicle, taking the driver’s cell phone and other personal items. Hall followed in another vehicle. The unoccupied BMW was found a few hours later.
Hall pleaded guilty in November to one count of carjacking and one count of possession of a firearm in furtherance of a crime of violence.
The St. Louis County Police Department investigated the case. Assistant U.S. Attorney Nichole Frankenberg prosecuted the case.
Sports Equipment Company Owners and Sales Professional Indicted for Bid Rigging Schemes Affecting Mississippi Public SchoolsRead the Press Release
On Wednesday, Feb. 11, a federal grand jury returned an indictment against Jon Christopher Burt (also known as Tank) of Columbus, Mississippi, Gerald Steven Lavender (also known as Jerry Lavender) of Columbus, Mississippi, and Jack Nelson Purvis Jr. (also known as Jay Purvis) of Laurel, Mississippi, for orchestrating bid rigging conspiracies targeting the sale of sports equipment to public schools in Mississippi.
The indictment, filed in the Northern District of Mississippi, alleges that, from approximately July 2010, up to and including July 2023, Burt, Lavender, and Purvis engaged in a conspiracy to rig bids for the sale of sports equipment to Mississippi public schools. The indictment further alleges from approximately June 2016, up to and including September 2022, Burt was engaged in a separate conspiracy to rig bids for the sale of sports equipment to Mississippi public schools. The Defendants’ conduct affected at least 44 public schools and millions of dollars of taxpayer funds.
“Where our country sees an opportunity for children to shine, the defendants conspired to rig bids to benefit themselves,” said Acting Deputy Assistant Attorney General Daniel Glad of the Justice Department’s Antitrust Division. “Public school funding — in this case for school sports — enriches the lives of these students in Mississippi and will be protected from fraudulent schemes. The Antitrust Division will continue to ensure that opportunities for public school children and taxpayer dollars receive the benefit of a competitive bidding process.”
“Stealing from public schools is stealing from the American people – plain and simple,” said Special Agent in Charge Robert Eikhoff of the FBI Jackson Field Office. “The egregious fraud carried out through bid-rigging schemes represents a blatant betrayal of public trust. Burt, Lavender, and Purvis allowed greed to drive them to mislead multiple schools, manipulate the competitive bidding process, and exploit the desire to provide children with quality sporting equipment for their own personal gain. The FBI and our federal partners will not allow criminals to rob our public-school systems and walk away without consequences. They will be held accountable and face justice.”
According to the indictment, Burt, Lavender, and Purvis engaged in these conspiracies to circumvent the Mississippi procurement laws requiring two competitive bids for procurements over $5,000. Burt, Lavender, and Purvis, along with their co-conspirators, including some school coaches acting as co-conspirators, agreed in advance who would win the bid. The conspirators agreed to provide complementary, intentionally higher-priced fake bids often referred to as “second quotes” to Mississippi public schools, submitted the higher-priced bids to the schools, and received procurements for school sports equipment where the complementary bids were submitted.
Burt, Lavender, and Purvis are charged with one count of violating Section 1 of the Sherman Act, and Burt is charged with an additional count of violating Section 1 of the Sherman Act.
The maximum penalty for the Sherman Act for individuals is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
These indictments result from an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the school sports equipment industry being conducted by the Antitrust Division’s Washington Criminal Office and the Federal Bureau of Investigation with assistance from the U.S. Attorney’s Office for the Northern District of Mississippi. Assistant Chief Laura Butte, Trial Attorneys Marc Hedrich and Jessica Bigby, and Senior Litigation Counsel Paul Torzilli are prosecuting the case.
The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sherwood Man Sentenced to More Than 29 Years in Federal Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—Giovanni Ibarra will spend 350 months in federal prison for production of child pornography. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on February 12, 2026, by United States District Judge James M. Moody, Jr.
On October 9, 2024, Ibarra, 27, of Sherwood, was indicted by a federal grand jury on two counts of production of child pornography and three counts for distribution and attempted distribution of child pornography. On July 28, 2025, Ibarra, pleaded guilty to production of child pornography. Judge Moody also sentenced Ibarra to 10 years’ supervised release. There is no parole in the federal system.
An investigation revealed that on September 5, 2024, a CyberTipline Report from the National Center for Missing and Exploited Children was received by the Arkansas Attorney General’s Office. The tip referenced video files uploaded to the KIK social media platform on May 19, 2024, and June 10, 13, and 20, 2024. Some of the videos depicted adults performing sex acts on children, including an infant.
Agents subpoenaed records from the internet provider relating to the CyberTipline Reports and on August 29, 2024, learned the name of the subscriber. During the investigation, agents discovered on September 23, 2024, a Facebook page belonging to the subscriber that contained images of the infant victim agents observed in some of the videos uploaded to KIK. On September 24, 2024, agents conducted surveillance of the subscriber’s Sherwood residence and observed two males exiting the residence and entering a vehicle. They then drove to a local retail establishment in Sherwood with one of the males wearing all black with cat ears on his head. After further review of the subscriber’s Facebook page, agents identified the male observed in the establishment as Ibarra.
Agents contacted the U.S. Postal Inspection Service to determine a list of individuals who receive mail at the Sherwood residence. Ibarra was identified as one of the individuals receiving mail at the residence. At the time of his arrest, Ibarra consented to an interview with agents and a search of his phone. Ibarra admitted to agents that he uploaded the videos to KIK and the infant in one of the videos was a child who he knew. Ibarra also admitted that he shared the videos on KIK because people always ask for that type of content. He further admitted to watching the video involving the infant and then deleting it because he knew it was not okay.
“Giovanni Ibarra is a despicable human being who took advantage of vulnerable children to satisfy his wicked sexual desires,” stated Ross. “This defendant did not care about the harm he inflicted upon these children and their families, but as demonstrated by the excellent work on this investigation, our law enforcement partners do. This sentence serves as a warning to others that if you commit heinous acts against children, our office will seek to have you sent to federal prison for the greatest length of time as the law will allow.”
“This investigation and the resulting sentence highlight Homeland Security Investigations’ steadfast commitment to combating child exploitation and ensuring that sexual predators like Ibarra are brought to justice. Through our strong partnerships with the Arkansas Attorney General’s Office, the U.S. Postal Inspection Service, and other law enforcement partners, HSI will continue to leverage every available resource to protect children and hold offenders accountable,” said Acting Special Agent in Charge Matt Wright of Homeland Security Investigations New Orleans.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. Parents are encouraged to always monitor your children’s online activity.
The investigation was conducted by the Arkansas Attorney General’s Office, U.S. Department of Homeland Security Investigations, and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
# # #
Additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
X (formerly known as Twitter):
@USAO_EDAR
San Antonio CEO Pleads Guilty to over $69 Million Investment Fraud SchemeRead the Press Release
SAN ANTONIO – A San Antonio man who conducted a $69.5 million fraud scheme pleaded guilty in federal court Tuesday to one count of wire fraud, announced U.S. Attorney for the Western District of Texas, Justin R. Simmons.
According to court documents, from January 2023 to March 2025, Devin Ward Elder, 47, fraudulently raised more than $69.5 million from approximately 345 investor victims that participated in 17 real estate investments. Elder was the founder and CEO of the San Antonio-based investment firm, DJE Texas Management Group, LLC, which was formed in March 2015 and employed dozens of people. DJE invested in multifamily apartments, industrial flexible workspace units, land projects, commercial building projects, and offered investment in a so-called “Income Fund.” Fourteen of DJE’s 17 offered investments acquired real property, and each property was owned by a separate LLC created for the limited purpose of purchasing and owning the investment property.
Elder induced his victims to invest with him and made a series of material misrepresentations promising high returns with low risk. Among many other false representations, Elder promised that he would “co-invest” his own money. Additionally, in classic Ponzi fashion, Elder made interest payments to investors of one project using investor funds from other projects without disclosing the nature or source of those interest payments. Over the 26-month life of the scheme, investors received approximately $8.8 million in payments that Elder purported to be “interest” and “principal” payments. In reality, many of the payments consisted of the investments of investors in other funds rather than actual investment returns.
In March 2025, Elder halted interest payments to the victim-investors. He notified the investors that his businesses were having financial difficulties, the projects would not be completed, and they should expect to lose a large portion of their investments.
Elder was charged with one count of wire fraud on Jan. 28 and summoned to appear in federal court on Feb. 17, at which time he pleaded guilty. Elder is scheduled to be sentenced the week of June 2 and faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Assistant U.S. Attorneys William R. Harris, Steven Seward and Ray Gattinella are prosecuting the case.
###
Serial Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
GAINESVILLE, FLORIDA – Tyrese Da’Jon Jones, 26, of Gainesville, Florida, has pleaded guilty to possession of a firearm by a convicted felon. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “Kudos to the excellent work by the Alachua County Sheriff’s deputies who took this violent felon off our streets so we could follow that up with a successful prosecution to put him behind bars where he belongs. The Department of Justice’s Operation Take Back America continues to deliver wins for community safety as we fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi that we will aggressively prosecute violent felons like this defendant to clean up our streets.”
Court documents reflect that on July 2, 2025, the defendant was approached by law enforcement while he was exiting a restaurant. The defendant fled from law enforcement and dropped a fully loaded pistol on the ground. After he was taken into custody, the defendant admitted that he pulled the firearm while he was fleeing and that he recently took MDMA. The defendant was not permitted to have a firearm because he has five prior felony convictions from two states, including a prior conviction for possession of a firearm by a convicted felon.
Sentencing is scheduled for April 28, 2026, at 10:00 A.M. in Gainesville, Florida, before Chief District Judge Allen C. Winsor.
The case involved a joint investigation by the Alachua County Sherriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. The case is being 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.
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 http://www.justice.gov/usao/fln/index.html.
Repeat illegal reentry lands four-time DUI offender in federal prisonRead the Press Release
HOUSTON – A 38-year-old Mexican national who illegally resided in Houston has been ordered to federal prison for illegally reentering the United States for the third time, announced U.S. Attorney Nicholas J. Ganjei.
Odon Chavez-Esquivel pleaded guilty Sept. 30, 2025.
U.S. District Judge Andrew S. Hanen has now ordered Chavez-Esquivel to serve 21 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
Chavez-Esquivel has multiple previous convictions for illegal reentry and driving under the influence of alcohol.
Authorities first removed Chavez-Esquivel from the United States in May 2003. He later returned illegally in April 2011 and August 2012. Most recently, authorities found him again in the United States in August 2022 following a fourth conviction for driving under the influence of alcohol.
Chavez-Esquivel has been and will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
Immigration Customs Enforcement – Enforcement Removal Operations conducted the investigation. Special Assistant U.S. Attorney Carrie Law 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
Repeat Offender Receives Maximum SentenceRead the Press Release
Defendant tried to kill a witness, but the gun misfired
KALAMAZOO, MICHIGAN – U.S. Attorney for the Western District of Michigan Timothy VerHey today announced that Maurice Ray Jr., 32, of Grand Rapids, Michigan was sentenced to 15 years in prison for being a felon in possession of a firearm. When imposing the statutory maximum term, U.S. District Judge Paul L. Maloney noted that Ray posed a “very serious danger to the public.”
Evidence at trial established that in April 2025, Ray’s girlfriend called 911 to report she was being kidnapped on a ride to Lansing, Michigan. Ray threw her out of the moving car, dragging her down the street on her knees. After a neighbor came out to assist her, Ray returned with a gun drawn. He forced the girlfriend back into the car, pointed the gun at the neighbor and pulled the trigger, but the gun did not fire.
Police located Ray based on the neighbor’s description and pulled him over. After a standoff, Ray sped off with the injured girlfriend still trapped in the vehicle. Ray led multiple patrol cars on a three-mile pursuit through Lansing, at times exceeding 90 miles per hour. When he was eventually cornered and arrested, Lansing police retraced the chase route and found a loaded 9mm semiautomatic pistol on the side of the road with Ray’s DNA on the trigger. The unexpended round in the chamber had a striker mark, indicated it had misfired.
U.S. Attorney VerHey said, “Anyone who would try to murder a woman just because she was trying to be a good Samaritan deserves to go to prison. I am glad the ATF and the Lansing Police Department brought this case to my attention so that my office could send him there.”
“Maurice Ray Jr. is an ATF poster child of an individual 100% deserving of federal prosecution for their illegal possession of a firearm,” said James Deir, Special Agent in Charge of the ATF Detroit Field Division. “He illegally armed himself, kidnapped and assaulted his girlfriend, and then attempted to fire a gun at a neighbor who stepped in to help. The only explanation why this incident did not result in a murder is because that firearm malfunctioned. This sentence ensures an armed violent, career criminal is off the streets for 15 years. ATF will continue to work relentlessly with our partners to identify, investigate, and prosecute armed felons who threaten the safety of our community.”
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). For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case was investigated by the ATF and the Lansing Police Department. Prosecution was assigned to Assistant United States Attorneys Nils Kessler and Olivia Ghiselli.
President of Insurance Brokerage Firm and CEO of Marketing Company Sentenced in $233M Affordable Care Act Enrollment Fraud Scheme that Preyed on Vulnerable ConsumersRead the Press Release
MIAMI – Two executives were sentenced to 20 years in prison after being convicted for their roles in a years-long scheme to steal from the Affordable Care Act (ACA) program. The defendants — the president of an insurance brokerage firm and the CEO of a marketing company — preyed on tens of thousands of vulnerable consumers to improperly enroll them into fully subsidized ACA plans, for which the defendants earned millions of dollars in commission payments from insurance companies.
“Preying upon medically compromised consumers to rob hundreds of millions from taxpayer-funded programs is evil and unforgivable,” said Attorney General Pamela Bondi. “Fraud schemes like this rob citizens and shake faith in our institutions — today’s sentencing is the latest example of this DOJ’s commitment to fighting fraud nationwide.”
“These defendants will rightly spend decades in prison for taking advantage of thousands of vulnerable people and stealing millions from a health care safety net designed for working families,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “These defendants were sophisticated, licensed insurance brokers. They had everything and intentionally took advantage of people who had nothing. The message from these sentences is simple: those who seek to line their own pockets with taxpayer dollars, victimize our most vulnerable and deplete federal programs will be held accountable.”
“These defendants didn’t just steal money — they built a $233 million fraud scheme on the backs of vulnerable people,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “They targeted individuals struggling with homelessness, addiction, and mental health challenges, manipulated them for profit, and jeopardized their access to legitimate medical care. In the process, the federal government paid out at least $180 million in fraudulent subsidies — money stolen from the American people and a health care safety net designed for working families. That level of calculated exploitation demands serious prison time, and today’s sentences reflect the scale and cruelty of this crime.”
“These defendants didn’t just commit fraud; they built a business model around exploiting people at their most vulnerable,” said FBI Director Kash Patel. “They targeted vulnerable individuals in the community, manipulated federal health programs for profit, and put victims at risk of losing critical medical care so they could cash in. Stealing hundreds of millions of taxpayer dollars while endangering lives is as callous as it gets. The FBI and our partners will continue to track down and hold accountable anyone who treats vulnerable Americans as a payday.”
“These defendants designed a purposeful scheme to profit from human suffering, targeting individuals at their most vulnerable moments, solely for personal gain,” said Inspector General T. March Bell of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Their callous greed put lives at risk, and such disregard for human dignity is unacceptable. HHS-OIG will continue to work tirelessly with our law enforcement partners to ensure that those who defraud federal health care programs and endanger public health are brought to justice.”
“Benefit fraud against public programs isn’t just a crime — it hurts real people, especially the most vulnerable,” said IRS Criminal Investigation Chief Guy Ficco. “These sentencings send a powerful message: cheating a federal program comes with serious consequences. IRS-CI and our law enforcement partners will stop at nothing to track down those who exploit these programs and bring them to justice. If you steal from the public, you will be caught — and you will pay the price.”
According to court documents and evidence presented at trial, Cory Lloyd, 47, of Stuart, and Steven Strong, 43, of Mansfield, Texas, engaged in an extensive fraud scheme that sought over $233 million in fraudulent ACA plan subsidies for which the federal government paid at least $180 million. As proven at trial, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Evidence presented at trial showed that Lloyd and Strong conspired to enroll these vulnerable consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced serious disruptions in their medical care or their prior insurance coverage under Medicaid or other programs. These individuals were put at risk of losing access to life-saving treatments for opioid use disorders, mental health disorders and serious infectious diseases.
The evidence at trial further showed that Lloyd received commissions and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd paid commissions to Strong in exchange for consumer referrals. To maximize these commission payments, Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially stated to insurance agents that they had no income. Lloyd and Strong also conspired to bypass the federal government’s attempts to verify income and other information and deliberately submitted thousands of applications to Medicaid for various individuals in a way that guaranteed their denial so that they could sign up these same consumers for a fully subsidized ACA plan outside of the open enrollment period and therefore maximize their commissions year-round.
Evidence presented at trial showed that Lloyd and Strong exchanged text messages bragging about the money they were making and belittling the people they victimized in the process. In one text exchange, Strong suggested to Lloyd that the pair send street marketers into hurricane shelters in Florida. Lloyd replied, “It’s a killer idea, if we could pull it off! … I want to rake the shelters! R*pe.” Strong replied, “Haha I’m not kidding,” and Lloyd confirmed, “Me either…let’s f*uck em up.”
Lloyd and Strong used money from the scheme to purchase luxury homes, including a waterfront home in the Florida Keys depicted below, an 80-foot yacht and a Tesla.
Waterfront Home in the Florida Keys
In November 2025, Lloyd and Strong were both convicted of one count of conspiracy to commit wire fraud, three counts of wire fraud and one count of conspiracy to defraud the United States. Strong was also convicted of two counts of money laundering. Lloyd and Strong were both sentenced to a total of 20 years in prison and ordered to pay $180.6 million in restitution.
A third defendant, Dafud Iza, previously pleaded guilty to major fraud against the United States and was sentenced to 35 months in prison in connection with his role in the scheme.
FBI, HHS-OIG and IRS-CI investigated the case.
Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section prosecuted the case, and Assistant U.S. Attorney Daren Grove for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
###
President of Insurance Brokerage Firm and CEO of Marketing Company Sentenced in $233M Affordable Care Act Enrollment Fraud Scheme that Preyed on Vulnerable ConsumersRead the Press Release
Two executives were each sentenced to 20 years in prison after being convicted for their roles in a years-long scheme to steal from the Affordable Care Act (ACA) program. The defendants — the president of an insurance brokerage firm and the CEO of a marketing company — preyed on tens of thousands of vulnerable consumers to improperly enroll them into fully subsidized ACA plans, for which the defendants earned millions of dollars in commission payments from insurance companies.
“Preying upon medically compromised consumers to rob hundreds of millions from taxpayer-funded programs is evil and unforgivable,” said Attorney General Pamela Bondi. “Fraud schemes like this rob citizens and shake faith in our institutions — today’s sentencing is the latest example of this DOJ’s commitment to fighting fraud nationwide.”
“These defendants didn’t just commit fraud; they built a business model around exploiting people at their most vulnerable,” said FBI Director Kash Patel. “They targeted vulnerable individuals in the community, manipulated federal health programs for profit, and put victims at risk of losing critical medical care so they could cash in. Stealing hundreds of millions of taxpayer dollars while endangering lives is as callous as it gets. The FBI and our partners will continue to track down and hold accountable anyone who treats vulnerable Americans as a payday.”
“These defendants will rightly spend decades in prison for taking advantage of thousands of vulnerable people and stealing millions from a health care safety net designed for working families,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “These defendants were sophisticated, licensed insurance brokers. They had everything and intentionally took advantage of people who had nothing. The message from these sentences is simple: those who seek to line their own pockets with taxpayer dollars, victimize our most vulnerable and deplete federal programs will be held accountable.”
“These defendants designed a purposeful scheme to profit from human suffering, targeting individuals at their most vulnerable moments, solely for personal gain,” said Inspector General T. March Bell of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Their callous greed put lives at risk, and such disregard for human dignity is unacceptable. HHS-OIG will continue to work tirelessly with our law enforcement partners to ensure that those who defraud federal health care programs and endanger public health are brought to justice.”
“Benefit fraud against public programs isn’t just a crime — it hurts real people, especially the most vulnerable,” said IRS Criminal Investigation Chief Guy Ficco. “These sentencings send a powerful message: cheating a federal program comes with serious consequences. IRS-CI and our law enforcement partners will stop at nothing to track down those who exploit these programs and bring them to justice. If you steal from the public, you will be caught — and you will pay the price.”
“These defendants didn’t just steal money — they built a $233 million fraud scheme on the backs of vulnerable people,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “They targeted individuals struggling with homelessness, addiction, and mental health challenges, manipulated them for profit, and jeopardized their access to legitimate medical care. In the process, the federal government paid out at least $180 million in fraudulent subsidies — money stolen from the American people and a health care safety net designed for working families. That level of calculated exploitation demands serious prison time, and today’s sentences reflect the scale and cruelty of this crime.”
According to court documents and evidence presented at trial, Cory Lloyd, 47, of Stuart, Florida, and Steven Strong, 43, of Mansfield, Texas, engaged in an extensive fraud scheme that sought over $233 million in fraudulent ACA plan subsidies for which the federal government paid at least $180 million. As proven at trial, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Evidence presented at trial showed that Lloyd and Strong conspired to enroll these vulnerable consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced serious disruptions in their medical care or their prior insurance coverage under Medicaid or other programs. These individuals were put at risk of losing access to life-saving treatments for opioid use disorders, mental health disorders and serious infectious diseases.
The evidence at trial further showed that Lloyd received commissions and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd paid commissions to Strong in exchange for consumer referrals. To maximize these commission payments, Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially stated to insurance agents that they had no income. Lloyd and Strong also conspired to bypass the federal government’s attempts to verify income and other information and deliberately submitted thousands of applications to Medicaid for various individuals in a way that guaranteed their denial so that they could sign up these same consumers for a fully subsidized ACA plan outside of the open enrollment period and therefore maximize their commissions year-round.
Evidence presented at trial showed that the defendants exchanged text messages bragging about the money they were making and belittling the people they victimized in the process. In one text exchange, Strong suggested to Lloyd that the pair send street marketers into hurricane shelters in Florida. Lloyd replied, “It’s a killer idea, if we could pull it off! … I want to rake the shelters! R*pe.” Strong replied, “Haha I’m not kidding,” and Lloyd confirmed, “Me either…let’s f*uck em up.”
The defendants used money from the scheme to purchase luxury homes, including a waterfront home in the Florida Keys depicted below, an 80-foot yacht and a Tesla.
Waterfront Home in the Florida KeysIn Nov. 2025, Lloyd and Strong were both convicted of one count of conspiracy to commit wire fraud, three counts of wire fraud and one count of conspiracy to defraud the United States. Strong was also convicted of two counts of money laundering. Both Defendants were sentenced to a total of 20 years in prison and ordered to pay $180.6 million in restitution.
A third defendant, Dafud Iza, previously pleaded guilty to major fraud against the United States and was sentenced to 35 months in prison in connection with his role in the scheme.
FBI, HHS-OIG and IRS-CI investigated the case.
Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section prosecuted the case, and Assistant U.S. Attorney Daren Grove for the Southern District of Florida is handling asset forfeiture.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.