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18 December 2025
Pensacola Man Sentenced to Federal Prison for Distributing Drugs and Illegally Possessing FirearmsRead the Press Release
PENSACOLA, FLORIDA – Carlton D. Shoemaker, 51, of Pensacola, Florida, was sentenced to 106 months in prison after previously pleading guilty to two counts of distribution of methamphetamine and cocaine, one count of possession with intent to distribute cocaine and marijuana, one count of possession of a firearm in furtherance of a drug trafficking offense, and one count of possession of a firearm by a convicted felon. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “This substantial prison sentence sends a strong message that my office will aggressively prosecute and seek maximum punishment for anyone who floods our streets with poisonous drugs and threatens the safety of our community. Through Operation Take Back America, President Donald J. Trump and Attorney General Pam Bondi made a promise to the American people that we will deploy the full power of the law to take back our streets from the drug traffickers and violent criminals who have plagued our communities for too long, and this successful prosecution delivers on that promise.”
According to court records, the defendant worked as a security guard at the Venus Relax Inn in Pensacola, Florida. He also lived in one of the motel rooms. After developing evidence that the defendant was selling cocaine and methamphetamine from the motel, law enforcement executed a search warrant at Shoemaker’s motel room in June of 2025. Officers located cocaine, marijuana, and two firearms in the room. The defendant has multiple prior felony convictions for charges including burglary, grand theft, grand theft of a firearm, possession of a short-barreled rifle, and possession of cocaine.
The case involved a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Florida Department of Law Enforcement. The case was prosecuted by Assistant United States Attorney Christopher C. Patterson.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
The 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 for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Panama City Man Sentenced to Five Years in Federal Prison for Receipt of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Chad Ryan Puffinbarger, 39, of Panama City, Florida, was sentenced to five years’ imprisonment, followed by five years of supervised release, for receipt of child pornography. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “The distribution of child sexual abuse material is a heinous, disgusting crime that has the effect of re-victimizing the innocent children who have been exploited each and every time those disturbing videos and photographs are shared. Our outstanding state and federal law enforcement partners remain committed to identifying, targeting, and arresting those sick predators who seek to sexually exploit our children, and my office will continue to back up those arrests with successful prosecutions and federal prison sentences.”
Court documents reflect that the defendant came under investigation in 2021 when it was suspected he had been using a peer-to-peer network to download child pornography from the internet. Law enforcement sought a search warrant for the defendant’s residence, and he admitted to viewing child pornography. Examination of his electronic devices resulted in locating more than 3,000 images of minors being sexually abused by adults.
“Collecting and possessing a cache of vile images depicting the sexual abuse of children is not a victimless crime—as every image represents a real child who has been exploited and harmed,” said Homeland Security Investigations Tallahassee Assistant Special Agent in Charge Nicholas Ingegno. “This abhorrent behavior inflicts profound harm on these children that lasts a lifetime, all in the name of selfish deviant gratification. The perpetual sharing of this vile content online continually perpetuates the horrific trauma these children have endured, and HSI is committed to eradicating this evil.”
The case involved a joint investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Florida Department of Law Enforcement (FDLE). The case was prosecuted by Assistant United States Attorney Meredith L. Steer.
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 www.projectsafechildhood.gov.
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.
Oklahoma Man to Serve Ten Years in Federal Prison for Federal Hate Crime ViolationRead the Press Release
OKLAHOMA CITY – BRADEN BIRDSONG, 28, of Oklahoma City, appeared before U.S. District Court Judge Bernard Jones for the Western District of Oklahoma today and was sentenced to serve 120 months in federal prison after previously pleading guilty to a federal hate crime violation.
According to filed plea documents and today’s court hearing, on August 25, 2023, Birdsong, a white man, attacked D.G., a Black man, while D.G. was cleaning the parking lot of the Oklahoma City restaurant at which he worked. Birdsong used racial slurs and other anti-Black rhetoric as he punched D.G. in the head multiple times. D.G. suffered bodily injury because of the attack. Birdsong admitted that he assaulted D.G. because of D.G.’s race and color.
“This defendant’s actions were driven by hate and resulted in a violent attack against a victim targeted simply because of his race,” said U.S. Attorney Robert J. Troester. “Crimes motivated by hate threaten the safety and dignity of our communities and will be met with firm accountability. The Justice Department remains committed to enforcing federal civil rights laws and protecting individuals from hate-based violence. I commend our law enforcement partners and prosecutors for their dedication to seeking justice in this case.”
“There is no place in our society for the hatred and prejudice that fueled this vicious attack, and no one should fear being targeted simply because of who they are or what they look like,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “We hope today’s sentencing brings some measure of justice to the victim of this senseless act of violence.”
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Douglas M. Goodwater of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Taylor Payne of the Civil Rights Division’s Criminal Section prosecuted the case.
Oklahoma Man to Serve 10 Years in Federal Prison for Federal Hate Crime ViolationRead the Press Release
Braden Birdsong, 28, of Oklahoma City, appeared before U.S. District Court Judge Bernard Jones for the Western District of Oklahoma today and was sentenced to serve 120 months in federal prison after previously pleading guilty to a federal hate crime violation.
According to filed plea documents and today’s court hearing, on August 25, 2023, Birdsong, a white man, attacked D.G., a Black man, while D.G. was cleaning the parking lot of the Oklahoma City restaurant at which he worked. Birdsong used racial slurs and other anti-Black rhetoric as he punched D.G. in the head multiple times. D.G. suffered bodily injury because of the attack. Birdsong admitted that he assaulted D.G. because of D.G.’s race and color.
“This defendant’s actions were driven by hate and resulted in a violent attack against a victim targeted simply because of his race,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Crimes motivated by hate threaten the safety and dignity of our communities and will be met with firm accountability. The Justice Department remains committed to enforcing federal civil rights laws and protecting individuals from hate-based violence. I commend our law enforcement partners and prosecutors for their dedication to seeking justice in this case.”
“There is no place in our society for the hatred and prejudice that fueled this vicious attack, and no one should fear being targeted simply because of who they are or what they look like,” said Special Agent in Charge Doug Goodwater of the FBI Oklahoma City Field Office. “We hope today’s sentencing brings some measure of justice to the victim of this senseless act of violence.”
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Douglas M. Goodwater of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Taylor Payne of the Civil Rights Division’s Criminal Section prosecuted the case.
Ohio Man Sentenced to Prison for Lying About Health Issues to Obtain Government BenefitsRead the Press Release
CLEVELAND – A Portage County man has been sentenced to federal prison for obtaining government assistance by making false and misleading statements regarding his state of health.
Michael W. Honaker, 55, of Windham, Ohio, was sentenced to 31 months in prison by U.S. District Judge David A. Ruiz, after he pleaded guilty in December 2024 to wire fraud and theft of government property. He was also ordered to serve three years of supervised release and pay restitution of $432,254.07 to the Ohio Bureau of Workers’ Compensation, $82,400.20 to the Social Security Administration (SSA), and $22,417.00 to the Portage Metropolitan Housing Authority. Judge Ruiz imposed the sentence Dec. 12.
“Mr. Honaker’s deception was truly shameless. He had no problem going to great lengths to hide his deceitful behavior and reap the benefits from programs that are meant for people who truly need them,” said United States Attorney David M. Toepfer for the Northern District of Ohio. “We are thankful to the Ohio Bureau of Workers’ Compensation who identified the fraud, and to the Housing and Urban Development and Social Security investigators who were able to put a stop to this waste of taxpayer money.”
According to the indictment, Honaker began to receive workers’ compensation benefits in 1998 due to an on-the-job injury he sustained. The following year, he applied for—and received—Social Security disability benefits in the form of monthly cash payments. Later, he was accepted into a housing program administered through the U.S. Department of Housing and Urban Development (HUD) and began to receive subsidized-housing benefits in March 2012. In 2014, he began to reside at a residence on Greenmeadow Road in Windham. While there, he misrepresented information about himself for the purpose of receiving increased workers’ compensation benefits. In one application submitted, he falsely claimed that “going up and down the stairs several times a day is very painful” and, therefore, needed a lump-sum payment to renovate his home to be handicap-accessible. During a doctor appointment, Honaker pretended to have difficulty walking and dragged his right leg and indicated that he required a wheelchair to maneuver. In another instance, he falsely told an investigator with the Ohio Bureau of Workers’ Compensation that he used crutches all day and had a “brain injury.” In all instances, the defendant admitted to knowing that these statements were not truthful.
“Honaker’s selfish actions put HUD’s housing assistance programs at significant risk and jeopardized the amount of available funding to low-income families who rely on these programs,” said Special Agent in Charge Shawn Rice with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to profit by abusing HUD-funded programs.”
“By falsely portraying himself as disabled and continuing to collect Social Security benefits, Michael Honaker committed a serious fraud that cost taxpayers more than $82,000,” said Special Agent in Charge Stephanie Rodriguez with the Social Security Administration-Office of the Inspector General, Chicago Field Division. “Cases like this demonstrate our continued commitment to identifying, investigating, and holding accountable those who exploit programs designed to help the most vulnerable.”
"Our Special Investigations Department did an exceptional job uncovering and securing the conviction in this complex fraud scheme," said Administrator/CEO Stephanie McCloud of the Ohio Bureau of Workers’ Compensation. "Their collaboration with local police and federal agencies was instrumental in saving money for the State Insurance Fund."
Co-defendant Nichole E. Johnson, 42, also of Windham, began to reside at the Greenmeadow Road residence in 2016 without HUD authorization to do so. She was previously sentenced to 24 months of probation for her role in facilitating the scheme, after she pleaded guilty to making a false statement to the SSA regarding Honaker’s state of health. She was also ordered to pay $4,624 in restitution.
The U.S. Department of Housing and Urban Development-Office of Inspector General Cleveland Field Office, the Social Security Administration Office of the Inspector General, the Ohio Bureau of Workers’ Compensation, and the Windham Police Department investigated this case.
Special Assistant United States Attorney Jason W. White prosecuted the case for the Northern District of Ohio.
Ohio Man Convicted for Stalking, Threatening, Sexually Exploiting Minors on Social MediaRead the Press Release
COLUMBIA, S.C. — Jack Keegan Davis, 22, of Columbus, Ohio has pleaded guilty to cyberstalking, coercion and enticement of a minor, and receipt and distribution of child sexual abuse material* for a scheme where he posed as a minor while operating 130 social media accounts, which he used to exploit minors.
According to court documents and statements made in court, from August 2022 through October 2024, Davis operated 130 display names on the social media platforms Snapchat, Instagram, Wizz, and Discord, where he posed as a minor and caused others to believe they were speaking with a minor. He used those platforms to convince minors to engage in sexual conduct and to produce child sexual abuse material.
Once Davis received the explicit material, he sent it to others on the internet, including to other minors and classmates of one of his victims. He caused one minor to believe they were in a relationship with Davis, and when the minor began to withdraw, Davis began a campaign of stalking and threats towards the minor and their family, despite being served with a restraining order.
Davis repeatedly threatened to kill the minor and their family by direct message and through public posts, including: “Im going to kill [the minor] and [the minor’s] family,” “[Minor Victim] ur ded,” “Im going to f***ing kill [the minor],” “I am not kidding I am going to kill [the minor] and [the minor’s] family,” “If [the minor] doesn’t answer me I’m going to [the minor’s] house,” and “I won’t stop until you’re dead.”
Davis also shared the minor’s home address and said he would be there when the minor’s father was in another town, where he worked. He promised “revenge if it’s the last thing I do,” and wrote, “lol I just want [the minor] to suffer.” Davis has multiple minor victims in multiple states.
Davis faces a mandatory minimum of 10 years in prison a maximum of life in prison, and he will be required to register as a sex offender upon release from prison. He also faces a fine of up to $250,000 fine, restitution, and supervision by the U.S. Probation Office following any prison term. United States District Judge Joseph F. Anderson accepted the guilty plea and will sentence Davis after receiving and reviewing a pre-sentence report from the U.S. Probation Office.
The case was investigated by the FBI Columbia Field Office, the Kershaw County, S.C. Sheriff’s Department, and the Franklin County, OH Sheriff’s Department. Critical assistance was provided by the U.S. Attorney’s Office for the Southern District of Ohio. Assistant U.S. Attorneys Elliott B. Daniels and Ariyana N. Gore are prosecuting the case.
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* The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child. The Associated Press Stylebook also discourages the use of the phrase “child pornography.”
Over $200,000 in Cryptocurrency Forfeited in Scam Involving Elderly VictimsRead the Press Release
United States Attorney Kurt L. Wall announced that U.S. District Judge Brian A. Jackson ordered the forfeiture of various cryptocurrencies seized from a foreign digital currency exchange. This forfeiture order will now allow the U.S. Department of Justice to begin the process of returning these funds back to the multiple victims, all of whom lost funds in this cryptocurrency emergency scam.
On December 15, 2025, a Final Order of Forfeiture was signed in a civil forfeiture action which formally forfeited 1.96356404 BTC and 60,139.5734 USDT, as digital currency involved in wire fraud and money laundering offenses. This bitcoin and USDT, also known as Tether, were seized from a wallet address in the name of an Indian national, which wallet address was held at a digital currency exchange located in the Seychelles, Africa. The combined forfeited bitcoin and tether are worth over $200,000.
At least four elderly victims were targeted and manipulated to send a certain amount of funds to a cryptocurrency address to supposedly safeguard their funds or to avoid criminal charges. All four of the victims followed the instructions of the subjects by withdrawing cash from their bank accounts, depositing the cash into bitcoin ATMs, and then sending the bitcoin to designated cryptocurrency addresses controlled by the subjects. Of these four victims, all over the age of 70, two resided in Louisiana, one in Texas, and one in Minnesota. The U.S. Secret Service Cyber Fraud Task Force worked with multiple agency partners to gather information from the victims to help trace the scammed funds.
In one case, the victim spoke with whom she believed was her bank fraud department who advised that her bank account had been hacked and that there were “child pornography charges on her account.” After the subject threatened that she would be arrested, the subject advised that she could avoid arrest if she withdrew $31,000 from her account and deposited it into a Bitcoin Depot ATM and subsequently transferred it to a “secure” account designated by the subject. The victim complied. In another case, the victim was advised on her laptop that her device had been hacked and that, to avoid a scheduled automatic payment to a child pornographic website, she had to contact whom she believed was her bank fraud department. After speaking with this supposed bank representative, she was instructed to withdraw $30,000 from her bank account and deposit it into a Bitcoin ATM in two separate, equal amounts of $15,000 and transfer to a wallet address given to her by the bank representative.
A cryptocurrency emergency scam involves subjects who impersonate bank representatives or government officials using high-pressure tactics and fake crises, such as that a victim’s funds are at risk, to trick victims into withdrawing cash from their bank accounts, buying cryptocurrency at an ATM, and then forwarded this cryptocurrency to a supposedly secure account or wallet address. These scams often target the elderly and use urgency to the scammer’s advantage by exploiting victims’ emotions and convincing them that their funds are at risk of being depleted.
This case was investigated by the U.S. Secret Service Cyber Fraud Task Force with assistance from the East Baton Rouge Parish Sheriff’s Office, Avoyelles Parish Sheriff’s Office, Randall County Sheriff’s Office (Texas), and the Renville County Sheriff’s Office (Minnesota), and was prosecuted by Assistant U.S. Attorney J. Brady Casey.
The United States Department of Justice implemented an Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at www.justice.gov/elderjustice.
Norfolk man sentenced to 13 years in prison for firearm charge related to a shootingRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced yesterday to 13 years in prison for being a felon in possession of a firearm.
According to court documents and evidence presented at trial, on Jan. 21, 2023, Arthur Julius Cherry, 38, attempted to kill another individual after pursuing him from a Norfolk convenience store. Cherry pursued the target in his vehicle and fired at the target’s vehicle when it stopped. The target avoided being shot by ducking, but his brother was shot in the back. Cherry left multiple casings at the scene, which were matched to a firearm recovered from Cherry two weeks later.
At the time of the incident, Cherry previously was convicted of several other crimes, including malicious wounding for shooting a man after a verbal altercation, possession with intent to distribute heroin, assault, and possession or use of a weapon. As a previously convicted felon, Cherry cannot legally possess firearms or ammunition.
“This case exemplifies the importance of keeping firearms out of the hands of convicted criminals,” said Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia. “Arthur Cherry has a history of violence and a disregard for the law. Such lawless behavior represents a significant danger, and my office is resolved that such behavior will be met with serious consequences.”
“This 13-year sentence reflects the seriousness of illegally possessing a firearm and attempting to take a life—especially by someone who had already demonstrated a history of violent behavior,” said Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division. “Through coordinated efforts of our law-enforcement partners and the use of ATF’s technology –the National Integrated Ballistic Information Network (NIBIN), a dangerous individual has been held accountable and removed from our community. This outcome truly reinforces our shared commitment to maintaining public safety and preventing acts of violence.”
Assistant U.S. Attorney Joseph E. DePadilla and former Special Assistant U.S. Attorney Graham Stolle 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. 2:25-cr-25.
Norfolk man sentenced to 10 years in prison for coercion and enticement of a minorRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 10 years in prison for coercion and enticement of a minor.
According to court documents, in June 2024, law enforcement learned of an Instagram user selling CSAM. Investigators traced the user to the Norfolk residence of Isaiah Amery Muniz, 21. An examination of Muniz’ Instagram accounts suggested that Muniz was engaged in the sale and distribution of child sexual abuse material (CSAM). From one of those accounts, Muniz encouraged a 12-year-old victim to produce and send CSAM to him, at one point offering to send the victim $50 via Cash-app. Later that day, Muniz, again using Instagram, unsuccessfully attempted to obtain CSAM from another suspected minor.
Investigators identified approximately 800 CSAM images on Muniz’s phone.
“Isaiah Muniz’s crimes are abhorrent,” said Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia. “The images Muniz obtained through the exploitation of children caused irreparable harm to his victims. Such conduct underscores the profound damage inflicted by those who exploit children for profit, and this office will use every tool at its disposal to identify and prosecute such offenders.”
“This case is a stark reminder that behind every image is a real child being harmed," said Dominique Evans, Special Agent in Charge of the FBI Norfolk Field Office. “This sentence sends a clear message: those who exploit children will be found and held accountable. Crimes against children are among the FBI’s highest investigative priorities, and we will never stop working tirelessly with our partners to identify predators, protect victims and keep our children safe.”
Assistant U.S. Attorney Kristen S. Taylor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-94.
Nigerian National Convicted by Federal Jury of Wire Fraud, Aggravated Identity Theft, and Unauthorized Access to Protected ComputerRead the Press Release
Greenbelt, Maryland – After a six-day trial, a federal jury convicted Olusegun Samson Adejorin, 32, a Nigerian national, of wire fraud, aggravated identity theft, and unauthorized access to a protected computer to obtain information. Adejorin was previously extradited from Ghana in connection with the case.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty verdict with Special Agent in Charge Jimmy Paul, Federal Bureau of Investigation (FBI) – Baltimore Field Office.
According to the evidence presented at trial, between June and August 2020, Adejorin perpetrated a scheme to defraud Victim 1, a charitable organization located in Maryland, providing investment services to other organizations. Additionally, through the scheme, Adejorin defrauded Victim 2, a charitable organization located in New York, by gaining access to employee email accounts and impersonating employees to induce financial transactions.
Among the acts in furtherance of the fraud scheme, Adejorin registered spoofed domain names, which he used to pose as employees of Victim 2 to request withdrawals of Victim 2’s funds from Victim 1. Adejorin also fraudulently obtained access to email accounts of Victim 1, which he used to send emails falsely confirming the fraudulent requests made in Victim 2’s name. He ultimately caused more than $7.5 million of Victim 2’s funds to be sent, pursuant to the fraudulent withdrawal requests, from Victim 1 to bank accounts that were not Victim 2’s bank accounts.
Adejorin faces a maximum sentence of 20 years in federal prison for each of the five counts of wire fraud, a maximum of five years for unauthorized access to a protected computer, and a mandatory two years, consecutive to any other sentence imposed, for aggravated identity theft. U.S. District Judge Theodore D. Chuang scheduled sentencing for Friday, April 10, 2026.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayes commended the FBI for its work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Joshua Rosenthal and Darren S. Gardner who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
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Myrtle Beach Pastor Indicted for Cyberstalking Wife Before Her DeathRead the Press Release
FLORENCE, S.C. — A federal grand jury in Columbia returned a two-count indictment against John Paul Miller, 46, of Myrtle Beach, for cyberstalking and making false statements to federal investigators.
The indictment alleges that beginning in November 2022, Miller sent unwanted and harassing communications to his estranged wife until her death on April 27, 2024. The harassing behavior included Miller posting a nude photo of the victim online without her consent, causing tracking devices to be placed on her vehicle, and in one instance, contacting her over 50 times in a single day. The indictment also alleges he interfered with her finances and her daily activities and on one occasion damaged her vehicle tires.
Federal investigators interviewed Miller about these allegations and Miller lied in his responses. Miller said he did not damage the victim’s tires, when in fact he purchased a tire deflation device online and sent messages to others regarding the victim’s vehicle.
Miller faces a maximum penalty of five years in prison for cyberstalking and two years in prison for his false statements. He also faces a fine of up to $250,000. His arraignment is scheduled for Jan. 12, 2026, in federal court in Florence.
The case was investigated by the FBI Columbia Field Office, the South Carolina Law Enforcement Division, the Myrtle Beach Police Department, the Horry County Police Department, the Horry County Sheriff’s Office and the Robeson County, NC Sheriff’s Office. Assistant U.S. Attorneys Elle E. Klein and Katie Stoughton are prosecuting the case. Assistant U.S. Attorneys Elle E. Klein and Kathleen Stoughton are prosecuting the case.
All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Missouri Felon Sentenced to 33 Years in Prison for Child Pornography, Meth CrimesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Thursday sentenced a man who recorded his criminal sex act with a child and possessed drugs to 33 years in prison.
Rayshaun Reed, 37, pleaded guilty in July to three felonies: possession with the intent to distribute methamphetamine, sexual exploitation of a minor and possession of child pornography. He admitted recording a sex act with the teen, possessing drugs and possessing other images containing child sexual abuse material (CSAM). The victim’s parents triggered the investigation by contacting the Hayti Police Department with concerns about Reed. Officers conducted a court-approved search of Reed’s motel room and found six bags of meth totaling about 25 grams in weight, three bags of marijuana totaling about 22 grams, a bag of "K2" synthetic marijuana and clothing belonging to the victim. His phone contained at least 16 videos depicting CSAM that had been downloaded from the internet.
Reed was on supervised release at the time of his crimes, having previously been convicted of distribution of methamphetamine. Judge Limbaugh sentenced Reed to 36 months for violating his supervised release and a total of 30 years for his new crimes. Reed will be on supervised release for 20 years after his release from prison and will receive sex offender treatment while in custody.
The Hayti Police Department and the FBI investigated the case. Assistant U.S. Attorney Timothy Willis 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. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Sentenced to over 3 Months for Illegally Reentering the United StatesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on December 17, 2025, Samuel Alfaro-Sanchez, 31, of Mexico, was sentenced by United States District Judge Geoffrey Crawford to a term of 3 months and 20 days’ imprisonment. Alfaro-Sanchez previously pleaded guilty to illegally reentering the United States after having been found in the District of Vermont on August 13, 2025, without any lawful status to be in the country.
According to court records, Alfaro-Sanchez, illegally entered the United States on numerous prior occasions. In 2008, Alfaro-Sanchez voluntarily returned to Mexico after having been apprehended near Tucson, Arizona. In 2018, Alfaro-Sanchez was removed from the United States twice after having been apprehended first near Paso Del Norte, Texas in March and then again near Sasabe, Arizona in July. In 2019, Alfaro-Sanchez was again removed from the United States after having been apprehended near El Paso, Texas. In 2020, Alfaro-Sanchez was expelled from the United States twice in September after having been apprehended on two separate occasions near Douglas, Arizona. In 2021, Alfaro-Sanchez was expelled from the United States after having been apprehended near Douglas, Arizona.
First Assistant United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.
The case was prosecuted by Special Assistant United States Attorney Charles W. Kirkham. Alfaro-Sanchez was represented by Assistant Federal Public Defender Charles N. Curlett, Jr.
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.
Mexican National Sentenced for Illegally Reentering the United States and Felon in Possession of a FirearmRead the Press Release
KANSAS CITY, Mo. – A Mexican National illegally residing in Kansas City, Mo., was sentenced in federal court today for Illegal Re-entry by an Alien Previously Removed and Felon in Possession of Firearm.
Tomas Alejandro Yanez-Fraide, 23, was sentenced by Chief U.S. District Judge Beth Phillips to four years federal prison followed by three years of supervised release.
On August 21, 2025, Yanez-Fraide pleaded guilty to illegally re-entering the United States after previously being removed following a conviction for an aggravated felony and felon in possession of a firearm. Yanez-Fraide admitted he knew he did not have permission to enter the United States lawfully and that, as a felon, he knew he was prohibited from possessing a firearm.
Under federal law it is illegal for an alien to knowingly re-enter the United States without permission after being removed. Yanez-Fraide had previously been removed from the country in 2022 after he was convicted in Jackson County, Missouri of robbery in the second degree. He unlawfully returned sometime after his 2022 removal and was found in the Western District of Missouri when he was arrested in February of 2025 by the Kansas City, Missouri Police Department. At the time of his arrest, Yanez-Fraide was in possession of Glock 9 mm firearm, an extended magazine and live ammunition. Under federal law it is illegal for a person convicted of a felony to possess a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Kansas City, Missouri Police Department and Immigration and Customs Enforcement.
Operation Take Back America
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.
Mexican Cartel Leader Sentenced to over 11 Years in Prison for International Money LaunderingRead the Press Release
A foreign national and a leader of the Cártel de Jalisco Nueva Generación (CJNG) was sentenced today to 140 months in prison and three years of supervised release for an international money laundering offense.
“Cristian Fernando Gutierrez-Ochoa epitomizes the arrogance of the cartels – laundering millions in drug profits, stockpiling cash and ghost guns, kidnapping military officials, and believing he could live in luxury and anonymity on American soil,” said DEA Administrator Terrance Cole. “He was wrong. Today's sentencing sends a clear message: DEA is dismantling CJNG piece by piece – the financiers, the lieutenants, the safe houses, and the pipelines that sustain these narco-terrorists. We are targeting their money, their leadership, and their infrastructure, and we will not stop until these organizations are eliminated, and American lives are no longer threatened by their greed.”
“Cristian Gutierrez-Ochoa laundered money for one of the most violent and prolific cartels in Mexico and funded his lavish lifestyle — including luxury homes, cars, watches and jewelry — with its drug trafficking proceeds,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Cartels like the CJNG traffic substantial quantities of illegal drugs into the United States, profiting from their distribution at the expense of people’s lives and the safety of our communities. Gutierrez-Ochoa’s sentence demonstrates the Criminal Division’s commitment to disrupting and dismantling dangerous drug trafficking organizations, including CJNG, and keeping our country safe.”
According to court documents, Gutierrez-Ochoa, 28, of Michoacán, Mexico, worked with other CJNG operatives in Mexico and the United States to launder millions in U.S. currency of CJNG drug proceeds, including to purchase a luxurious residential property in Riverside, California. Gutierrez-Ochoa lived in that residence under a fictitious identity for at least a year with the daughter of the CJNG leader, Nemesio Oseguera Cervantes, also known as El Mencho. The residence was purchased under the name of a Mexican company owned and controlled by the CJNG. Gutierrez-Ochoa admitted to keeping over $2.2 million of drug proceeds in bulk cash at the residence and possessing two untraceable firearms in furtherance of the underlying money laundering offense. Gutierrez-Ochoa also used CJNG drug proceeds to purchase items of value, including jewelry, watches and vehicles.
Gutierrez-Ochoa pleaded guilty to conspiracy to launder CJNG’s drug proceeds. As part of his plea agreement, Gutierrez-Ochoa agreed to forfeit the residence and the seized bulk cash, jewelry, watches, vehicles and other items of value.
Gutierrez-Ochoa allegedly entered the United States illegally in part to avoid arrest in Mexico. Specifically, in late 2021, Gutierrez-Ochoa allegedly kidnapped two members of the Mexican Navy to force the Mexican authorities to release El Mencho’s wife from custody.
The DEA’s Special Operations Division Bilateral Investigations Unit Los Angeles investigated the case. The Office of International Affairs provided valuable assistance.
Trial Attorneys Kaitlin Sahni, Lernik Begian and Douglas Meisel of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) prosecuted the case. Trial Attorneys Stephanie Williamson and Chelsea Rooney of MNF assisted with the forfeiture proceedings.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Homeland Security Task Force and Project Safe Neighborhoods.
Member of Deadly Human Smuggling Organization Extradited from CanadaRead the Press Release
A dual Canadian-American citizen made his initial appearance in court in Plattsburg, New York, today after being extradited from Canada to face charges relating to his role in a deadly human smuggling conspiracy that left a family of four, including two small children, dead in the St. Lawrence River.
In June 2024, a federal grand jury in the Northern District of New York returned an indictment against Rahsontanohstha Delormier, also known as Storm, 31, of the Akwesasne Mohawk Indian Reservation (AMIR), Canada, for conspiring to engage in alien smuggling and four counts of alien smuggling for profit.
According to court documents, Delormier was arrested in Canada in August 2024 along with co-conspirator Stephanie Square at the request of the U.S. government. Delormier’s and Square’s extraditions followed extensive coordination and cooperation between U.S. and Canadian law enforcement authorities. Square, 52, of the AMIR, was extradited in October 2025. Co-conspirator Timothy Oakes, 34, from the AMIR, was arrested on June 15 and remains detained pending trial for his role in the alleged deadly conspiracy. U.S.-based co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of the AMIR in New York, and Janet Terrance, 45, of Hogansburg, New York, entered guilty pleas on Jan. 23, 2025, Oct. 8, 2024 and March 6, 2025, respectively.
According to court documents, Delormier was allegedly a member of an alien smuggling conspiracy which resulted in the deaths of eight migrants. As alleged, Delormier, a Native American Indian living on the Canadian portion of the AMIR — which overlaps the United States and Canada — was a known alien smuggler and smuggled aliens by boat utilizing the St. Lawrence River. The evidence establishes that during the week of March 27, 2023, a prolific Canadian smuggler contacted co-conspirators Sharrow and Square to smuggle a family of four across the St. Lawrence River into the United States. Both Square and Sharrow had previously moved aliens for the alien smuggling organization. Delormier was allegedly recruited by Square to assist in the movement of the aliens and agreed to enter the conspiracy despite the dangerous conditions on the St. Lawrence River.
According to court documents, Delormier provided co-conspirator Montour access to a pickup truck to transport the aliens via roadways from mainland Cornwall to co-conspirator Oakes’ residence on Cornwall Island, Canada, which serves as a notorious staging area for smugglers to cross contraband and people across the river from Canada into the United States.
Pursuant to surveillance footage and hotel records, Montour picked up the family of four, including two small children, from the Elect Inn in Cornwall, Canada on March 29, 2023, at approximately 3:21 a.m.
Mother and child departing room 140 at the Elect Inn walking towards Montour’s vehicle on March 29, 2023 at 3:21 a.m. Father and child departing room 140, pulling the door closed before the father walks towards Montour’s vehicle on March 29, 2023 at 3:21 a.m.On March 29, 2023, at 3:26 a.m., Montour crossed the Seaway International Bridge Toll Plaza onto Cornwall Island and then traveled on Island Road towards Buckshot Road and Timothy Oakes’s residence.
According to court documents, while the aliens were in transit in Delormier’s pickup truck driven by Montour, Delormier was delivering a small green boat that Square had purchased to transport the aliens across the St. Lawrence River. Delormier assisted Square in picking up the boat and attempted to stage the boat for the aliens’ transportation. However, during Delormier’s attempt to stage the boat, Delormier lost control of the vessel and ended up stranded in the frigid St. Lawrence River. On March 30, 2023, at approximately mid-day, the Akwesasne Mohawk Police Service (AMPS) rescued Delormier from an abandoned cabin on St. Regis Island. Delormier was suffering from symptoms of hyperthermia. AMPS also recovered a submerged green boat with Delormier, which AMPS photographed and seized. The boat was identified by a cooperating witness as being the same boat sold to Square and Delormier earlier for the alien smuggling event.
As alleged, undeterred by the loss of Delormier and the boat to the St. Lawrence River, Square recruited and paid Oakes to transport the aliens across the St. Lawrence River in his small boat. The family of four arrived at the Oakes’s residence on March 29, 2023, at approximately 3:35 a.m. and stayed until that same evening. On March 29, 2023, Square, Montour and Oakes negotiated the family’s perilous crossing.
According to court documents, on March 29, 2023, at approximately 9:29 p.m., Oakes’ vehicle with a light blue boat in tow is recorded traveling eastbound away from the Oakes’ residence towards a public boat launch. The vehicle depicted was registered to Oakes.
Oakes’s vehicle with light blue boat in tow on March 29, 2023, at 9:29 p.m., appearing to match the boat found in the river during recovery efforts.According to court documents, on March 29, 2023, between 10:09 p.m. and 10:50 p.m., AMPS received multiple calls from citizens on Cornwall Island reporting hearing cries for help on the St. Lawrence River. The callers also reported the terrible weather conditions. During this time, Square instructed Montour to search the banks of the St. Lawrence River for the missing family.
On March 30, 2023, AMPS received a report that Casey Oakes, Timothy Oakes’ brother, was missing since the evening of March 29, 2023. Between March 30 and 31, 2023, AMPS conducted a riverine search for Casey Oakes. During the search, AMPS recovered the bodies of eight deceased foreign nationals, including two small children, from the frigid St. Lawrence River near Cattle Island and Chatelain Island. AMPS also recovered a light blue boat. On July 3, 2023, the decomposed body of Casey Oakes was recovered near Ross Island, approximately eight miles from the eight deceased migrants.
Timothy Oakes’ light blue and white boat being recovered from the St. Lawrence River near the bodies of the eight deceased migrants.Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, Acting U.S. Attorney John A. Sarcone III for the Northern District of New York and Special Agent in Charge Erin Keegan of the Immigration and Customs Enforcement Homeland Security Investigations (HSI) Buffalo Field Office made today’s announcement.
HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center International Interdiction Task Force, New York State Police, Canada Border Services Agency, Akwesasne Mohawk Police Service, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests and securing the arrest and extradition of Delormier.
The investigation and indictment were coordinated and prosecuted by Joint Task Force Alpha (JTFA), the Department’s lead effort in combating high-impact human smuggling and trafficking committed by cartels and Transnational Criminal Organizations (TCOs). A highly successful partnership between the Department of Justice and the Department of Homeland Security (DHS), JTFA investigates and prosecutes human smuggling and trafficking and related immigration crimes that impact public safety and border security. JTFA’s mission is to target the leaders and organizers of Cartels and TCOs involved in human smuggling and trafficking throughout the Americas. The Attorney General has elevated and expanded JTFA to target the most prolific and dangerous human smuggling and trafficking groups operating not only in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras, but also in Canada, the Caribbean and the maritime border, and elsewhere. Led by the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and supported by the Money Laundering, Narcotics and Forfeiture Section, the Office of International Affairs and the Office of Enforcement Operations, among others, JTFA has dedicated Assistant U,S, Attorney-detailees from the Southern District of California; District of Arizona; District of New Mexico; Western and Southern Districts of Texas; Southern District of Florida; Northern District of New York; and District of Vermont. JTFA also partners with other USAOs throughout the country and supports high-priority cases in any district. All JTFA cases rely on substantial law enforcement resources from DHS, including ICE/ HSI and CBP/BP and OFO, as well as FBI and other law enforcement agencies. To date, JTFA’s work has resulted in more than 425 domestic and international arrests of leaders, organizers and significant facilitators of alien smuggling and/or trafficking; more than 375 U.S. convictions; more than 325 significant jail sentences imposed; and forfeitures of substantial assets.
Trial Attorney Jenna E. Reed of the Criminal Division’s HRSP and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maryland Registered Sex Offender Sentenced to over 22 Years in Prison for Attempting to Coerce and Entice Minors Using WhatsApp and Kik ApplicationsRead the Press Release
Registered sex offender Scott Lee Dye, 47, of Baltimore, Maryland, was sentenced today to 270 months imprisonment and a lifetime of supervised release for attempted coercion and enticement after he used multiple messaging applications — including WhatsApp and Kik — to attempt to meet and have sexual intercourse with individuals he believed to be minors.
Dye pleaded guilty to the charge on June 16, 2025, in the U.S. District Court for the District of Maryland. He was also ordered to lifetime supervised release and to continue to register as a sex offender.
According to court documents, in October 2022, law enforcement learned that Dye was engaging in sexual communications with a minor after the minor’s parents reported the communications to the school, who in turn notified the police. Around the same time, local law enforcement in New Jersey notified Maryland law enforcement that Dye had been communicating with an individual Dye believed to be a 13-year-old girl, but was actually law enforcement. Dye’s communications with the purported minor included graphic descriptions of the sexual acts he wanted to perform with the minor. Dye’s accounts and devices were searched and found to contain images and videos of child sexual abuse material.
This case was investigated by the Department of Homeland Security with substantial assistance from the Maryland State Police and Evesham Police Department in New Jersey. It is being prosecuted by Trial Attorney Angelica Carrasco of the Child Exploitation and Obscenity Section and Assistant U.S. Attorney Michael Aubin for the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Man Charged with Operating Online Marketplaces Selling Fraudulent Montana Driver’s Licenses and Other Identity Documents Used by CybercriminalsRead the Press Release
BOZEMAN – The operator of illegal online marketplaces that sold digital templates of false identity documents, such as passports, social security cards, and driver’s licenses, was charged in a nine-count federal indictment unsealed in the District of Montana today, U.S. Attorney Kurt Alme said. The United States also announced that it seized three of the marketplace domains used for selling fraudulent identity documents around the world.
Zahid Hasan, 29, of Dhaka, Bangladesh, is charged with six counts of transfer of false identification documents, two counts of false use of a passport, and one count of social security fraud. If convicted of transferring false identification documents or false use of a passport, as charged in counts 1 through 8, Hasan faces up to 15 years of imprisonment on each count. Social security fraud, as charged in count 9, carries a maximum sentence of 5 years. Each count also carries a maximum fine of $250,000 and three years of supervised release.
The indictment alleges that from at least 2021 through 2025, Hasan operated multiple online businesses based out of Bangladesh, named “TechTreek” and “EGiftCardStoreBD.” These websites electronically sold and transferred digital versions of false government-issued identity and other documents, including U.S. passports, U.S. social security cards, and Montana driver’s licenses. The false identity documents were the types commonly used to create fraudulent online accounts at banks, online processors, social media sites, and digital currency platforms. Customers to these marketplaces could use virtual currencies, such as Bitcoin, to purchase a U.S. passport template for the equivalent of $12, a U.S. social security card for $9.37, and a Montana driver’s license for $14.05. Over a four-year period of operation, Hasan is alleged to have received more than $2.9 million through sales on TechTreek from more than 1,400 customers located around the world.
On May 13, 2025, Hasan accepted Bitcoin payments through TechTreek and EGiftCardStoreBD from an individual in Bozeman, Montana and then transferred or attempted to transfer fraudulent templates of U.S. passports, U.S. social security cards, and Montana driver’s licenses to that individual.
As part of its investigation, the United States seized three domains operated by Hasan to further his fraudulent documents businesses: www.techtreek.com; www.egiftcardstorebd.com; and www.idtempl.com. Visitors to these sites now receive the following message:
Assistant U.S. Attorney Benjamin Hargrove is prosecuting the case. The FBI’s Billings Division and Salt Lake City Cyber Task Force conducted the investigation in coordination with FBI’s International Operations Division and the Dhaka Metropolitan Police Department’s Counterterrorism and Transnational Crime Unit.
The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
PACER case reference. 25-44.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Mexican National Pleads Guilty to Firearms OffenseRead the Press Release
United States Attorney Kurt L. Wall announced that Avelardo Ahumada-Vega, age 49, an illegal alien from Mexico, pleaded guilty before U.S. Chief Judge Shelly D. Dick to possession of a firearm by an alien illegally and unlawfully in the United States.
Ahumada-Vega’s conviction is punishable by up to fifteen years imprisonment. He also faces a $250,000 fine, supervised release, and is subject to removal or deportation from the United States upon completing his sentence.
According to admissions made during his plea, on August 2, 2025, Ahumada-Vega was encountered by deputies from the East Baton Rouge Parish Sheriff’s Office following reports of gunfire around a residence located on Tracy Avenue. When deputies arrived, they observed Ahumada-Vega in a vehicle. When he was removed, he had a Ruger American 9mm pistol in the front waistband of this pants. Ahumada-Vega was given Miranda rights, and he admitted that he discharged a firearm into the air. Ahumada-Vega also admitted to stealing the pistol several months prior to his arrest. U.S. Immigration and Customs Enforcement determined Ahumada-Vega was not a citizen of the United States and was illegally and unlawfully present in the United States.
This matter was being investigated by U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and East Baton Rouge Parish Sheriff’s Office, and is being prosecuted by Assistant United States Attorney Lyman E. Thornton III and Special Assistant United States Attorney Allen L. Ross.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Louisiana Man Sentenced to Six Years in Prison for Mail Theft, Fraud, and Aggravated Identity TheftRead the Press Release
MOBILE, AL – A Slidell, Louisiana man was sentenced to 72 months in prison for theft of mail, bank fraud, and aggravated identity theft.
According to court documents, Rashawn Anthony Robinson-Mills, 25, admitted that between August 2023 and January 2024, he traveled along the Gulf Coast breaking into blue U.S. Postal Service letter boxes and stealing mail. Robinson-Mills broke into multiple boxes at several locations in Alabama and Mississippi. He then fraudulently altered and deposited multiple checks and money orders belonging to mail-theft victims, including but not limited to a church in Mobile, Alabama. In conducting these fraudulent transactions, Robinson-Mills used victims’ identifiers without authorization.
On January 12, 2024, surveillance cameras at the Walmart on U.S. Highway 98 in Daphne, Alabama captured Robinson-Mills using a crowbar to pry open a letter box in front of the store. Later that day, sheriff’s deputies in Harrison County, Mississippi stopped Robinson-Mills on Interstate 10 eastbound and found the crowbar he used to steal mail in the trunk of his vehicle. Agents searched Robinson-Mills’s cell phone, which contained dozens of photos depicting checks and money orders that he had stolen from the mail and fraudulently altered to be made payable to him.
In October 2025, after Robinson-Mills had pleaded guilty in federal court and was awaiting sentencing, police in Pell City, Alabama arrested Robinson-Mills for breaking into multiple vehicles and stealing credit cards while working as an Amazon delivery driver. Robinson-Mills admitted to committing the thefts, which resulted in revocation of his release conditions. At sentencing, the court reviewed evidence that Robinson-Mills used the stolen credit cards to try to purchase a penile girth enhancement at Alabama Men’s Clinic.
In addition to the 72-month prison term, U.S. District Judge Terry F. Moorer ordered Robinson-Mills to serve a five-year term of supervised release upon his release from prison, during which time he will be subject to credit restrictions. The court did not impose a fine, but Judge Moorer ordered Robinson-Mills to pay $200 in special assessments and $64,434.18 in victim restitution.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, the United States Secret Service, the Mobile Police Department, the Daphne Police Department, the Biloxi Police Department, the Harrison County Sheriff’s Office, and the Slidell Police Department investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Local Physician Pleads Guilty to Adulterating and Misbranding Medical Devices with the Intent to DefraudRead the Press Release
First Assistant United States Attorney Pete Serrano announced that on December 17, 2025, Dr. Eric Edward Haeger, age 57, of Brewster, Washington, pleaded guilty in Eastern District of Washington to adulterating and misbranding medical devices with the intent to defraud or mislead.
In June 2021, Philips Respironics initiated a recall for certain CPAP and BiPAP devices due to potential health risks associated with the foam used in the devices for sound abatement. The potential health risks identified at the time included inflammatory response, asthma, nausea or vomiting, and toxic or cancer-causing effects.
Based on court documents, between July 2021 and July 2023, Dr. Haeger purchased through online resellers and caused to be shipped to the Eastern District of Washington over 500 used and recalled CPAP and BiPAP devices. Dr. Haeger and others at his direction would then open the devices, attempt to remove the foam using screw drivers, hooks, and other tools, and then put the devices back together. This conduct occurred in locations that were not designed or operated as clean rooms for the purpose of manufacturing medical devices.
Dr. Haeger and staff at his sleep clinic under his control and supervision would then provide the recalled devices to Washington State Medicaid patients. Staff at the sleep clinic under Dr. Haeger’s direction and control would then bill the used, recalled devices to Medicaid with the false and fraudulent representation that they were actually new devices that were in good working order.
Dr. Haeger is scheduled for a sentencing hearing on March 24, 2026. The Plea Agreement can be found here
The case is being investigated by the Food and Drug Administration Office of Criminal Investigations, the Washington State Medicaid Fraud Control Division, the Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jeremy J. Kelley.
2:25-cr-00187-RLP
Little Rock Woman Sentenced to Two Years in Federal Prison for COVID Relief FraudRead the Press Release
LITTLE ROCK—Chandler Carroll will spend 24 months in federal prison after admitting to fraudulently obtaining nearly $2.1 million in federal loans designed to assist businesses during the COVID pandemic. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, and Alica D. Corder, Special Agent in Charge of the FBI Little Rock Field Office, announced the sentence, which was handed down today by United States District Judge D.P. Marshall, Jr.
On July 8, 2025, Carroll, 33, of Little Rock, pleaded guilty to a superseding information charging her with one count of wire fraud. The single count was in reference to a fraudulently obtained $1.6 million Paycheck Protection Program (PPP) loan. In her plea agreement, Carroll admitted to receiving federal payments from a total of four fraudulent loans totaling $2,087,623.00. Of that total, $159,572.62 has been recovered and Carroll has been ordered to pay the remaining restitution in the amount of $1,928,050.38. Judge Marshall also sentenced Carroll to two years’ supervised release.
Enacted in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act federal law provided economic relief to individuals and businesses impacted by the Coronavirus pandemic. Economic relief under this law included the Paycheck Protection Program (PPP), which are forgivable business loans guaranteed by the Small Business Administration (SBA). The SBA also administered a program, the Economic Injury Disaster Loan (EIDL), that provided low-interest financing to small businesses impacted by declared disasters.
An investigation revealed that Carroll was the owner of Wilson Carroll Research Services, LLC (WCRS), a Texas-based limited liability company, and WilCarr Ventures, LLC (WilCarr Ventures), an Arkansas-based limited liability company. On April 6, 2020, Carroll applied for an EIDL loan for WCRS, listed herself as the CEO and represented that she owned 100% of the company. On the application, Carroll certified “that all information in [your] application and submitted with [your] application is true and correct to the best of [your] knowledge, and that [you] will submit truthful information in the future.” Based on the fraudulent representation, Carroll received $149,900 for this loan.
From April 2020 through March 2021, Carroll submitted applications to various financial institutions under the PPP loan program, with deposits to her totaling more than $1.9 million. On May 28, 2020, Carroll, the sole owner of WilCarr Ventures, applied for a PPP loan and it was approved, with $1,600,000 deposited into an account she represented to belong to WilCarr Ventures. Two other PPP loans totaling $337,723 on behalf of WCRS were deposited into Carroll’s accounts.
Carroll made various fraudulent purchases using the proceeds of the loans made to WCRS and WilCarr Ventures. The fraudulent purchases include two vehicles (2020 Ford F-150 Raptor and a 2020 Ford Explorer), two watches, (Patek Philippe Manual Watch and a Crocodile Brown Rolex Cellini Moonphase), jewelry (diamond earrings and a diamond), 1.5 acres of land, and a home on the White River in Baxter County.
“What a tangled web she wove,” United States Attorney Ross said. “A web of lies and deceit to steal emergency relief funds from the American treasury in order to line her pockets with more than $2,000,000—not for her employees’ sake but for trucks, jewels, and a second home with a river view. But now that the FBI has untangled her web and brought her to justice, she can go to her new second home—a federal prison.
“If you know of anyone else who defrauded the Pandemic Relief Fraud, please report it online to the federal government’s Pandemic Oversight (www.pandemicoversight.com) website. Because Congress lengthened the statute of limitations for this type of crime to 10 years through the year 2031, our office still has plenty of time to hold more of these thieves accountable.”
“When fraud is perpetrated against federal programs intended for the public good, we all lose,” Special Agent in Charge Corder said. “It undermines public confidence, deprives those in need of resources, and misuses taxpayers’ money. This sentence affirms our commitment to accountability and the protection of federal funds.”
This investigation was conducted by the FBI, with assistance from the U.S. Treasury Inspector General for Tax Administration, Small Business Administration, and the Federal Deposit Insurance Corporation, Office of Inspector General.
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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
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Leader and Co-Defendant in Multi-Million Dollar Money Laundering Conspiracy Plead GuiltyRead the Press Release
Baltimore, Maryland – Yahya “Cash” Sowe, 42, of Silver Spring, Maryland, and Victor Killen, 32, of Hyattsville, Maryland, pled guilty to conspiring to engage in a large, multi-member, money laundering conspiracy. As part of his guilty plea, Sowe admitted that he served as a manager or supervisor of the money laundering conspiracy, personally obtained at least $1 million for participating in the conspiracy, and helped facilitate more than $11 million of money laundering, involving more than 12 different victim entities. Killen admitted as part of his plea that at least $3 million in money laundering occurred pursuant to his direct participation in the conspiracy.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Acting Special Agent in Charge Evan Campanella, Homeland Security Investigations (HSI) – Maryland; Special Agent in Charge Kareem A. Carter, Internal Revenue Service-Criminal Investigation (IRS-CI) – Washington, D.C. Field Office; and Acting Special Agent in Charge George Golliday, Environmental Protection Agency, Office of Inspector General (EPA-OIG).
The U.S. Attorney’s Office for the District of Maryland charged 14 defendants in connection with Sowe’s and Killen’s money laundering conspiracy. Thirteen have now pled guilty. Faizou Gnora, 28, previously of Alexandria, Virginia, remains a fugitive from justice.According to the plea agreements, beginning in 2021, and continuing into February 2024, Sowe conspired with multiple individuals to launder proceeds of a large-scale wire fraud. The co-conspirators engaged in various financial transactions to conceal the nature, location, source, ownership, and control of the wire-fraud proceeds, while carrying out the wire-fraud schemes. The victims included government agencies, organizations, and companies, including an environmental trust, urban redevelopment program, medical center, transportation and logistics company, school district, college, and county government, among others.
Sowe, Killen, and their co-conspirators used and controlled several different encrypted electronic communication accounts, which they used in furtherance of the money laundering, to supervise and manage the money laundering conspiracy. Sowe, Killen, and their co-conspirators worked with members of the conspiracy to create limited liability companies to serve as shell entities; open bank accounts and/or cause bank accounts to be opened in the name of shell entities; and receive and launder fraud proceeds.
Pursuant to the conspiracy, the co-conspirators often engaged in multiple financial transactions in quick succession, frequently layering wire fraud proceeds in multiple subsequent transactions. These financial transactions made it more difficult for the victims and law enforcement to recover the fraud proceeds.
Additionally, Sowe admitted engaging in a credit-card fraud scheme in which unauthorized charges were made using a merchant services account. Sowe also acknowledged that in 2023, he engaged in an attempted fraud, involving false and fraudulent employee retention credits (ERC). He stipulated that he worked with his co-conspirators to engage in pandemic-related fraud by submitting false and fraudulent ERC tax filings, and that he and his co-conspirators sought more than $1 million in ERCs.
Sowe and Killen are facing a maximum sentence of 20 years in federal prison. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Matthew J. Maddox scheduled sentencing for Sowe and Killen for Thursday, March 26, 2026, at 2 p.m. and Thursday, April 16, 2026, at 10 a.m., respectively.
In connection with this prosecution, Gedeon Agbeyome, 31, of Montgomery County, Maryland, and Areal El-Lovieta Harris, 24, of Hanover, Maryland, previously pled guilty, admitting to conspiring to commit money laundering.
Additionally, Adanegbe Gift Osemwenkhae, 39, of Upper Marlboro, Maryland; Emily Gil Arias, 28, of Silver Spring, Maryland; Fatoumata Boiro, 32, of Largo, Maryland; Lawrence Ogunsanwo, 33; Lakeisha Parker, 33, of Baltimore, Maryland; Martin Ogisi, 37, of Severn, Maryland; Blondel Ndjouandjouaka, 31, of Silver Spring, Maryland; Kevin Colon, 34, of Curtis Bay, Maryland; and Lorena Perez Herrera, 29, of Silver Spring, Maryland, previously pled guilty to conspiracy to commit money laundering. Agbeyome also admitted engaging in aggravated identity theft and Parker acknowledged engaging in a conspiracy to commit wire fraud.
The District Court previously sentenced:
- Lawrence Ogunsanwo to 40 months in federal prison, followed by one year of supervised release and restitution of $5,648,816.23
- Lakeisha Parker to 36 months in federal prison, followed by three years supervised release and restitution of $8,306,930.95
- Martin Ogisi to 33 months in federal prison, followed by one year of supervised release and restitution of $11,077,044.17
- Blondel Ndjouandjouaka to 24 months in federal prison, followed by one year of supervised release and restitution of $733,941.48
- Kevin Colon to 27 months in federal prison, followed by two years of supervised release and restitution of $2,515,159.63
U.S. Attorney Hayes commended the HSI-led Document and Benefit Fraud/Mid-Atlantic El Dorado Task Force, and thanked IRS-CI and EPA-OIG for their work in the investigation. Ms. Hayes praised the Anne Arundel County, Prince George’s County, and Montgomery County Police Departments for their assistance. She also thanked Assistant U.S. Attorneys Harry M. Gruber, Bijon A. Mostoufi, and Jared M. Beim, who are prosecuting the federal case, and Paralegal Specialist Joanna B.N. Huber for her assistance.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
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Leader of Tren De Aragua Charged in Manhattan Federal Court with Racketeering, Terrorism, Drug Importation, and Firearms OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the Special Operations Division of the Drug Enforcement Administration (“DEA”), Louis A. D’Ambrosio, Co-Director of Joint Task Force Vulcan (“JTFV”), Jacob Warren, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, Special Agent in Charge of the Houston Field Office of the FBI, Douglas Williams, and Special Agent in Charge of the Andean Division of the DEA, Eugene L. Crouch, announced today the unsealing of an Indictment charging HECTOR RUSTHENFORD GUERRERO FLORES, a/k/a “Niño Guerrero,” a/k/a “El Cejón,” a/k/a “El Innombrable,”[1] in connection with GUERRERO FLORES’s leadership role in Tren de Aragua (“TdA” or the “Enterprise”), a transnational criminal organization operating throughout North America, South America, and Europe, which has also been designated as a foreign terrorist organization. GUERRERO FLORES is currently at large. The U.S. Department of State is offering rewards of up to $5 million for information leading to the arrest and/or conviction of GUERRERO FLORES. The case has been assigned to U.S. District Judge Andrew L. Carter, Jr.
“As alleged, Hector Rusthenford Guerrero Flores has been the mastermind of Tren de Aragua’s evolution from a Venezuelan prison gang into a transnational terrorist organization that committed countless acts of violence, extortion, and drug trafficking all over North America, South America, and Europe,” said U.S. Attorney Jay Clayton. “In the Southern District of New York, we have now charged over 30 members or associates of Tren de Aragua with federal crimes, and we are committed to bankrupting the cartels and transnational gangs who flood our streets with deadly drugs and pursue death, violence and corruption as a way of life. This is what New Yorkers want, and it is what they deserve.”
“Guerrero Flores operated Tren de Aragua like a multinational crime syndicate—laundering money through cryptocurrency, trafficking drugs by the ton, selling weapons of war, and orchestrating acts of terror across borders,” said DEA Special Agent in Charge Louis A. D’Ambrosio. “He ran this empire from prison, shielded by corruption, and in collaboration with a narco-state cartel intent on flooding the United States with cocaine. This case exemplifies today’s threat: criminal organizations that function like terrorists and terrorize like insurgents. DEA and our partners are dismantling them piece by piece—targeting their leadership, finances, weapons, and networks.”
“For more than a decade, as alleged in the Indictment unsealed today, Nino Guerrero has led TdA from its inception as a prison gang in Venezuela to a transnational terrorist organization,” said JTFV Co-Director Jacob Warren. “TdA has inflicted widespread harm in the United States through extortions, kidnappings, murders, drug trafficking, gun trafficking, prostitution, sex trafficking, robberies, bank burglaries, and money laundering. The charges unsealed today in the Southern District of New York are directly in line with JTFV’s mission: a collaborative, whole of government effort, to destroy TdA. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York and our law enforcement partners who worked tirelessly to investigate and bring these important charges.”
“As alleged, Niño Guerrero has for decades led one of the fastest-emerging foreign terrorist organizations to encroach upon American soil: Tren de Aragua,” said HSI Special Agent in Charge Ricky J. Patel. “This reputed leader grew TdA from a Venezuela-based prison gang to the vile, vicious organization it has become. Together with our partners, HSI and the HSTF New York will continue to wage an unyielding campaign against cartels, drug traffickers, and transnational criminal organizations who seek to sow destruction and death. Together, we will ensure that no corners of their criminal empires are beyond the reach of justice.”
“Hector Guerrero Flores is the alleged leader of a Venezuelan foreign terrorist organization sowing violence, murder, and misery into communities and nations throughout the Western Hemisphere,” said FBI Houston Special Agent in Charge Douglas Williams. “Under the leadership of Guerrero Flores, Tren de Aragua translates the suffering and death of thousands into profits for its members. Tren de Aragua, under the guidance of Guerrero Flores, saw members commit murders; violent robberies; sex trafficking; and weapons and narcotics trafficking impacting communities across the United States.”
“DEA is unwavering in its mission to dismantle the command and control of Tren de Aragua, a designated foreign terrorist organization that thrives on drug trafficking and violence,” said Special Agent in Charge Eugene L. Crouch of the DEA Andean Division. “For years, TdA has exploited corruption to expand its reach and evade justice, but those days are over. DEA is relentlessly targeting TdA’s leadership, financial networks, and infrastructure, and we will not rest until these individuals are brought to justice. We are grateful to the Colombian National Police and the Colombian Attorney General’s Office for their invaluable partnership in this investigation.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
GUERRERO FLORES and others known and unknown were members and associates of TdA, a criminal organization that operated throughout North America, South America, and Europe, including in the United States, Venezuela, Colombia, Peru, Chile, Brazil, Mexico, and Spain. TdA—literally meaning “Train from Aragua”—originated in the Venezuelan state of Aragua in the 2000s, and TdA used the Tocorón Prison in Aragua as a center of operations to orchestrate and conduct criminal activities. TdA was largely composed of persons from South America, mostly from Venezuela. In the following years, gang members and associates left Venezuela and spread throughout North, South, and Central America and Spain, which expanded TdA’s presence.
TdA members and associates established a presence in other countries in South America, Central America, and the United States by engaging in the following pattern of behavior: First, TdA members and associates infiltrated other countries by illegally crossing their borders and finding cities and other residential neighborhoods where they could easily establish control over civilian populations. Next, TdA members and associates committed crimes and other acts of terrorism to assert control over their territory and enrich themselves through extortions, kidnappings, robberies, murders, drug trafficking, prostitution, sex trafficking, and trafficking of guns, grenades, and ammunition. Many of the crimes and acts of terrorism committed by TdA members and associates were ordered, directed, facilitated, or otherwise supported by TdA leadership in South America, including GUERRERO FLORES. Finally, TdA members and associates would spread to other locations, forming cells with their own local leadership and structure. TdA’s violent tactics often resulted in entire neighborhoods and apartment buildings being subject to TdA’s control. TdA members and associates laundered the proceeds of their criminal activities, including through cryptocurrency, and transmitted a portion of the proceeds to TdA leadership in South America, including GUERRERO FLORES.
Through this pattern of behavior, TdA members and associates established a strong gang presence in other countries in South America, Central America, North America and Europe, like Colombia, Peru, Chile, Brazil, Mexico and Spain. TdA members and associates also illegally crossed the border into the United States and established a presence in various parts of the country, including New York, Colorado, New Mexico, Texas, Nebraska, Illinois, and Florida. As a result, TdA operated as a national and international criminal organization with its members and associates regularly conducting gang activities and acts of terrorism transcending national boundaries across the Western Hemisphere.
TdA members and associates also worked in concert with some of the largest cocaine trafficking organizations in the world, including the Cártel de los Soles, or “Cartel of the Suns.” The Cártel de los Soles is and, at all relevant times, was, a Venezuelan drug-trafficking organization comprised of high-ranking Venezuelan government officials who corrupted the legitimate institutions of Venezuela to facilitate the importation of tons of cocaine into the United States, including through the use of maritime drug distribution routes with boats and ships carrying hundreds or thousands of kilograms of narcotics, including cocaine. It is and was the goal of the Cártel de los Soles to “flood” the United States with cocaine, as it has sought to weaponize the drug and inflict its harmful and addictive effects on users in the United States. Members and associates of the Cártel de los Soles have included, among others, the most powerful politicians in Venezuela, former military officials, and some of the largest and most violent cocaine traffickers in the world. In turn, certain of these politicians have controlled the locations from which TdA grew in power and influence. Members and associates of the Cártel de los Soles relied upon corruption and violence as they transported cocaine from Venezuela en route to the United States. In Venezuela, politicians aided cocaine traffickers by offering them safe passage for their cocaine, protection from arrest, and, at times, the support of the police and military. And Cártel de los Soles’s cocaine traffickers relied on violence throughout their cocaine distribution route—including the use of firearms, kidnappings, and murder—to protect their cocaine, their distribution networks, and themselves.
For over a decade, GUERRERO FLORES served as either the leader or co-leader of TdA, acting as the mastermind over TdA’s expansion across the Western Hemisphere. During much of that time, GUERRERO FLORES operated from Tocorón Prison, where the Venezuelan government allowed GUERRERO FLORES to control the day-to-day operations of the prison. Under GUERRERO FLORES’s direction, TdA members and associates engaged in a wide range of crimes, including extortions, kidnappings, murders, drug trafficking, gun trafficking, prostitution, sex trafficking, robberies, bank burglaries, and money laundering. GUERRERO FLORES and other high-level leaders of TdA would collect a “causa” or fee from income generated by lower-level members of TdA, thereby enriching themselves from income earned by other TdA members. As the leader of TdA, while operating from Venezuela and elsewhere, GUERRERO FLORES ordered, directed, facilitated, and supported acts of violence and terrorism transcending national boundaries, including murders, kidnappings, extortions, and maiming against victims located inside and outside the United States.
GUERRERO FLORES and other members and leaders of TdA also worked with several of the largest cocaine traffickers in Venezuela to transport tons of cocaine from Venezuela for eventual distribution in the United States. GUERRERO FLORES both directed and personally facilitated the transportation of this cocaine by supplying teams of heavily armed individuals to protect and transport cocaine shipments for his trafficking partners and associates. These individuals were armed with, among other automatic weapons, AK-47s, MP5s, and AR-15s, as well as grenades.
The cocaine that GUERRERO FLORES helped distribute was manufactured in Colombia and Venezuela. The cocaine shipments were then transported from their point of origin and flown from clandestine airstrips or transported by maritime routes from Venezuela to Central America. From there, drug trafficking associates working with the Venezuelan distributors transported this cocaine north, through Mexico, and across the U.S. border. These drug trafficking associates included members of the largest, most violent, narcotics trafficking organizations in Mexico. At times, GUERRERO FLORES personally accompanied large cocaine loads as they were guarded by teams of armed men, en route to airports or airstrips for transport north and eventual distribution to the United States. GUERRERO FLORES was paid a fee per kilogram transported or received an interest in portions of these massive cocaine shipments in lieu of payment. The traffickers that GUERRERO FLORES worked with moved thousands of kilograms per shipment, multiple times per month, resulting in the distribution of hundreds of tons of cocaine to the United States.
In addition, GUERRERO FLORES also sold firearms to large-scale cocaine traffickers operating out of Venezuela. These traffickers purchased from GUERRERO FLORES automatic weapons including AK-47s, MP5s, and AR-15s, and then used the weapons they purchased from GUERRERO FLORES to protect their cocaine loads.
* * *
GUERRERO FLORES, 42, of Venezuela, is charged with participating in a racketeering conspiracy, which carries a maximum sentence of 20 years in prison; conspiracy to provide material support to terrorists, which carries a maximum sentence of 15 years in prison; cocaine importation conspiracy, which carries a maximum sentence of life and a mandatory minimum of 10 years in prison; and using and carrying firearms, machineguns, and destructive devices in furtherance of drug trafficking, which carries a maximum sentence of life and a mandatory minimum of 30 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of DEA’s Bilateral Investigations Unit and Bogotá Country Office, HSI New York, FBI Houston, and the New York City Police Department. Mr. Clayton also thanked Colombia’s Office of the Attorney General; Colombian National Police’s Unified Action Group for Liberty (“GAULA”); Araphoe County District Attorney’s Office; Aurora Police Department in Aurora, Colorado; New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); U.S. Customs and Border Protection’s National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area; the Harris County Sheriff’s Office; and the Houston Police for their assistance with the investigation.
This case is part of JTFV, which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country. Those include Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Eastern and Western Districts of Virginia; Southern District of Florida; Eastern District of Texas; Western District of Oklahoma; Northern District of Indiana; and the District of Nevada; , as well as the as well as the Executive Office for U.S. Attorneys Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI, DEA, HSI, ATF, USMS, and the Federal Bureau of Prisons are essential law enforcement partners with JTFV. The Justice Department’s Office of International Affairs and the Criminal Division’s Office of Judicial Attaché in Bogotá, Colombia, has also provided significant assistance.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
This case is being handled by the Office’s Violent Organizations & Crime Unit, National Security & International Narcotics Unit, and JTFV. Assistant U.S. Attorneys Nicholas S. Bradley, Andrew K. Chan, Kaylan E. Lasky, Henry L. Ross, Kevin T. Sullivan, Kyle A. Wirshba, and Jun Xiang are in charge of the prosecution, with assistance from Trial Attorneys Jason Harley and Josie Thomas from JTFV.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Justice Department Sues Four States for Failure to Produce Voter RollsRead the Press Release
Today, the Justice Department’s Civil Rights Division announced it has filed federal lawsuits against four jurisdictions — District of Columbia, Georgia, Illinois, and Wisconsin — for failure to produce their full voter registration lists upon request. This brings the Justice Department’s nationwide total to 22. In addition, three states — Louisiana, Mississippi, and Tennessee — today announced to the Justice Department their intent to voluntarily provide their full registration lists, pursuant to the Department's request. This brings the number of states that are either in full compliance or in the process of compliance to 10.
“The law is clear: states need to give us this information, so we can do our duty to protect American citizens from vote dilution,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Today’s filings show that regardless of which party is in charge of a particular state, the Department of Justice will firmly stand on the side of election integrity and transparency.”
According to the lawsuits, the Attorney General is uniquely charged by Congress with the enforcement of the National Voter Registration Act (NVRA) and the Help America Vote Act (HAVA), which were designed by Congress to ensure that states have proper and effective voter registration and voter list maintenance programs. The Attorney General also has the Civil Rights Act of 1960 (CRA) at her disposal to demand the production, inspection, and analysis of the statewide voter registration lists.
Justice Department Secures $480,000 Settlement in Sexual Harassment Lawsuit Against Ohio Landlords and Property ManagersRead the Press Release
The Justice Department announced today that the owners and operators of rental properties in and around Athens County, Ohio have agreed to pay $480,000 to settle a lawsuit alleging that their former rental manager, Joseph Earl Lucas, sexually harassed female tenants and prospective tenants of rental properties for almost twenty years, in violation of the Fair Housing Act.
“No one should have to endure sexual harassment to keep a roof over his or her head,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This settlement underscores the Justice Department’s commitment to holding landlords and housing providers accountable for illegal harassment of their tenants.”
“The provision of housing should not be conditioned on sexual favors or otherwise involve sexual harassment,” said U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio. “My Office will continue to enforce the Fair Housing Act against landlords and property managers who engage in such exploitive conduct.”
“The defendants severe abuse of power victimized our most vulnerable community members for almost twenty years and stripped them of their basic right to safety and dignity,” said Special Agent in Charge Shawn Rice of the U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG). “Sexual misconduct is never a misunderstanding of boundaries. It is coercion and it is violence disguised as authority. HUD OIG will continue to work with the US Attorney’s Office to hold housing providers accountable for this type of horrible conduct.”
The department’s lawsuit, filed in the United States District Court for the Southern District of Ohio in August 2023, alleged that, from at least 2004 until at least 2023, Lucas, a former resident of Amesville, Ohio, subjected female tenants and applicants to severe and pervasive sexual harassment. In addition to Lucas, the lawsuit named as Defendants Jacob and Emily Bush, and Joie and Jeremy Carr, who held ownership interests in properties managed by Lucas and retained him to manage the properties on their behalf. Jacob Bush and Joie Carr are Lucas’ grandchildren. The Department of Housing and Urban Development’s Office of Inspector General participated in the investigation that resulted in the department’s lawsuit.
Under the settlement, the Bushes and Carrs will pay a total of $470,000 to women harmed by Lucas’ harassment and a $10,000 civil penalty to the United States. The agreement also:
- prohibits the Bushes and Carrs from retaining or otherwise permitting Lucas to manage their rental properties;
- requires the Bushes and Carrs to adopt policies and procedures to prevent future sexual harassment at their properties; and
- requires the Bushes and the Carrs to attend training on the requirements of the Fair Housing Act, including its prohibition on sexual harassment.
If you are a victim of sexual harassment by a landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative, led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 52 lawsuits alleging sexual harassment in housing and recovered nearly $16.6 million for victims of such harassment.
Justice Department Resolves Criminal Trade Fraud Investigation with Plastic Resin Distributor; Former Executive Agrees to Plead GuiltyRead the Press Release
The Department of Justice today announced a resolution of a criminal trade fraud investigation into MGI International, LLC and its subsidiaries Global Plastics LLC and Marco Polo International LLC (collectively, MGI), a leading global plastic resin distributor, pursuant to Part I of the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). The resolution relates to a scheme to falsify Country of Origin declarations to avoid Section 301 duties owed on products of Chinese origin. As part of the resolution with MGI, the department has declined to prosecute MGI and agreed to credit $6.8 million previously paid to resolve MGI’s civil liability under the False Claims Act for knowingly failing to pay customs duties on certain plastic resin imported from China.
Separately, MGI’s former Chief Operating Officer was charged yesterday by criminal information and has agreed to plead guilty to conspiracy to smuggle goods into the United States. According to court documents, in 2021, David Guimond, 48, of Manchester, New Hampshire, instructed subordinates to misrepresent the manufacturer and country of origin on paperwork that was submitted to the U.S. Customs and Border Protection in order to avoid paying the required Section 301 duties.
“As this announcement demonstrates, the department will hold to account individuals and corporations who lie to evade tariffs and duties,” said Deputy Attorney General Todd Blanche. “This resolution makes clear what the incentives for corporations are to voluntarily self-disclose and remediate identified criminal conduct.”
“David Guimond is charged with lying to avoid paying customs duties to enrich his companies and himself,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Trade fraud deprives the government of revenue and harms American manufacturers. This corporate resolution and plea agreement demonstrate that the Criminal Division will hold accountable those who defraud the public fisc.”
“Our systems of commerce depend on the fair and accurate application of tariffs,” said Special Agent in Charge Michael J. Krol for Immigrations and Customs Enforcement Homeland Security Investigations (HSI) New England. “When bad actors attempt to evade these tariffs, they undermine the integrity of our trade system and disadvantage honest businesses. We are committed to enforcing tariff regulations and will relentlessly pursue those who seek to circumvent them. This company worked with the government to bring past violations to light and cooperated fully with our investigations. Their actions highlight the importance of corporate responsibility and the value of transparent self-disclosure in maintaining the integrity of our tariff enforcement efforts.”
The department resolved its investigation into MGI after considering the factors set forth in the CEP, including (1) MGI’s timely and voluntary self-disclosure of the misconduct; (2) MGI’s full and proactive cooperation in this matter; (3) the nature and seriousness of the offense; (4) MGI’s timely and appropriate remediation, including termination and disciplinary actions against the employees involved in the scheme, an internal review of the misconduct, an internal review of its compliance program and internal controls, a thorough and systematic root-cause analysis and enhancements to its broader compliance program; (5) the absence of aggravating factors that, when weighed against MGI’s cooperation and remediation, warrant a disposition other than a resolution under Part I of the CEP; and (6) the fact that MGI has already repaid the evaded tariffs.
Guimond has agreed to plead guilty to one count of conspiracy to smuggle goods into the United States and faces a maximum penalty of five years in prison. His change of plea hearing will be scheduled by a federal district court judge.
HSI is investigating the case.
Trial Attorneys Jennifer Bilinkas and Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Yasir Sadat for the District of New Hampshire are prosecuting the case.
These actions were coordinated through the Department of Justice Trade Fraud Task Force, a cross-agency law enforcement effort involving the Criminal Division’s Fraud Section, the Civil Division, the Department of Homeland Security and U.S. Attorney’s Offices nationwide. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Criminal Division, in coordination with the Task Force, leverages all the department’s tools and authorities to fight fraud on the federal government and recover funds for the public fisc.
Justice Department Reaches Agreement with South Carolina to Ensure Adults’ Access to Community-Based Mental Health ServicesRead the Press Release
The Justice Department announced today that it secured a settlement agreement with the State of South Carolina to resolve the department’s findings and complaint alleging that South Carolina violates the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C. by unnecessarily segregating adults with serious mental illnesses in institutional settings, called Community Residential Care Facilities.
“The Department and South Carolina are working together to ensure that people with serious mental illnesses can be served in the community when they want to be,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This is a great day for the people of South Carolina and demonstrates the substantial work that can happen when the federal government and states work together.”
As part of the agreement, South Carolina will ensure that it provides community-based mental health services to enable people with serious mental illness to live in the most integrated setting appropriate to their needs. South Carolina will expand capacity in intensive mental health, housing, and peer support services; ensure mobile crisis response is available in all areas of the state; and identify people who are living in or referred to the Care Facilities, providing them with case management and connections with community-based mental health services, consistent with their individual needs and informed choices.
Yesterday, the parties filed a stipulation in the U.S. District Court for the District of South Carolina to dismiss the Department’s complaint while South Carolina implements the settlement agreement. The Department recognizes South Carolina for its commitment to compliance with the Americans with Disabilities Act.
Additional information about the Civil Rights Division is available at www.justice.gov/crt.
Members of the public may report possible civil rights violations at civilrights.justice.gov/.
Justice Department Highlights Nationwide Crackdown on Tren de AraguaRead the Press Release
WASHINGTON – The Department of Justice announced the unsealing of multiple indictments against more than 70 individuals, including leaders and members of designated foreign terrorist organization Tren de Aragua (TdA), linked to various violent crimes inside and outside the United States, including murder, robbery, extortion, kidnapping, money laundering, and controlled substance trafficking. These actions include indictments across five U.S. Attorney offices, including the District of Colorado, District of Nebraska, District of New Mexico, Southern District of New York, and the Southern District of Texas.
Since January 20, 2025, the Department has federally indicted over 260 members of TdA.
“Immediately upon taking office, I directed the Department of Justice to fiercely pursue the total elimination of cartels and transnational criminal organizations,” said Attorney General Pamela Bondi. “This latest multi-state series of charges underscores the Trump Administration's unwavering commitment to restoring public safety, dismantling violent trafficking networks, and ridding our country of Tren de Aragua terrorists.”
“Tren de Aragua is a terrorist cartel that exploits our borders to bring murder, drugs, and chaos into American communities,” said Deputy Attorney General Todd Blanche. “This Department is crushing their leadership, dismantling their networks, and cutting off their money across the United States. There will be no safe haven here. If you cross our border to commit violent crime, we will find you, prosecute you, and put you away.”
“The FBI is committed to investigating members of violent transnational gangs whose actions violate our laws and put American lives at risk,” said FBI Director Kash Patel. “The existence of TdA is a direct threat to our national security, and we will not allow such a dangerous criminal organization to take root in our communities. Together with our law enforcement partners at every level, we are working to bring these ruthless criminals to justice.”
“Tren de Aragua is a ruthless, highly organized, and rapidly expanding foreign terrorist organization that thrives on chaos and human suffering,” said DEA Administrator Terrance Cole. “They exploit alliances with other terrorist-designated groups and transnational networks, including the FARC, ELN, and Cartel de los Soles, fueling instability, corruption, and violence across the region while endangering American communities. DEA is confronting this threat by relentlessly targeting their leadership, financial networks, and infrastructure. Those who align with TdA are standing against the United States and will face the full force of federal law enforcement.”
“The United States Marshals Service makes this point clear to all members of gangs like Tren de Aragua, we are coming for you,” said Gadyaces S. Serralta, Director of the United States Marshals Service. “We will not give you a moment of rest. We will find you. We will arrest you. You will be made to answer for your crimes. We will continue to work with all of our federal partners, to rid you from our country. Together, we are making the communities of America safer.”
“The foreign terrorist organization known as Tren de Aragua has used illicit firearms to maintain and expand control of its criminal enterprise, and imparted untold violence, widespread narcotics addiction, and death in American communities,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Deputy Director Rob Cekada. “The men and women of ATF, along with our federal law enforcement partners, have worked tirelessly to bring the members of this organization to justice. We will continue to systematically dismantle Tren de Aragua and other foreign terrorist organizations to ensure our communities are protected from harm. The days of Tren de Aragua running roughshod over the American public, preying on, and profiting from American citizens is over.”
“These actions reflect the strength of our partnerships and our determination to dismantle criminal networks like Tren de Aragua,” said BOP Director William K. Marshall III. “The Federal Bureau of Prisons is proud to support this mission by providing critical intelligence and secure management of offenders, ensuring justice and safety for our communities.”
A case summary is below:
DISTRICT OF COLORADO:
Two alleged leaders of TdA have been indicted by a federal grand jury in connection with a series of crimes in Colorado. These defendants are facing several charges including a Racketeer Influenced and Corrupt Organization (RICO) conspiracy. The indictment alleges that from May 2024 through on or about March of 2025, the defendants conducted activity for TdA through a pattern of racketeering activity that included robbery, extortion, kidnapping, money laundering and controlled substance offenses. The defendants are also charged with conspiracy to commit robbery and two counts of Hobbs Act Robbery and firearms offenses in connection with the armed robberies of two jewelry stores in the Denver, Colorado area in June of 2024.
DISTRICT OF NEBRASKA:
A grand jury returned two indictments charging a total of 54 individuals, some associated with TdA, for leading and facilitating a large-scale conspiracy to use malware to steal millions of dollars from U.S. financial institutions by hacking ATMs. Charges against some of the defendants included conspiracy to provide material support for terrorism, in addition to conspiracies to commit bank fraud, money laundering, bank burglary, and computer fraud and abuse.
DISTRICT OF NEW MEXICO:
Federal prosecutors have indicted 11 alleged members and leaders of TdA on racketeering charges, accusing them of kidnapping, brutally interrogating, and strangling a victim in an Albuquerque apartment, before burying his body in a remote desert grave. Some defendants were also directly involved in an armed confrontation at an apartment complex in Aurora, Colorado, during which rival groups exchanged gunfire and a victim was killed.
SOUTHERN DISTRICT OF NEW YORK:
An indictment has been unsealed charging Hector Rusthenford Guerrero Flores, a/k/a “Nino Guerrero,” in connection with a leadership role in TdA operating throughout North America, South America, and Europe. For over a decade, Guerrero Flores has served as either the leader or co-leader of TdA, acting as the mastermind over TdA’s expansion across the Western Hemisphere. While operating from Venezuela and elsewhere, Guerrero Flores ordered, directed, facilitated, and supported acts of violence and terrorism transcending national boundaries, including murders, kidnappings, extortions, and maiming against victims located inside and outside the United States, and facilitated the transport of tons of cocaine from Venezuela to the United States. Guerrero Flores is currently at large, and the U.S. Department of State is offering rewards of up to $5 million for information leading to his arrest and/or conviction.
SOUTHERN DISTRICT OF TEXAS:
A six-count superseding indictment has been unsealed charging four Venezuelan nationals, including multiple alleged high-ranking members of TdA, for conspiring to provide and providing material support to TdA, and for conspiracy and distribution of cocaine in Colombia intended for distribution in the United States. According to court records, two of the defendants are some of the topmost TdA leaders, with one allegedly exercising command and control over all of TdA’s criminal operations, including the illegal importation and smuggling of gold and narcotics, extortion, and murder. The two other defendants are also high-ranking TdA leaders who operate out of multiple South American countries and direct operations to include gold smuggling, narcotics export and violent crime.
These cases are part of Joint Task Force Vulcan (JTFV), which was created in 2019 to eradicate MS-13 and now expanded at the direction of Attorney General Bondi to target Tren de Aragua. JTFV is comprised of U.S. Attorney’s Offices across the country. Those include Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Eastern and Western Districts of Virginia; Southern District of Florida; Eastern District of Texas; Western District of Oklahoma; Northern District of Indiana; and the District of Nevada; as well as the as well as the Executive Office for U.S. Attorneys Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI, DEA, HSI, ATF, USMS, and the Bureau of Prisons are essential law enforcement partners with JTFV. The Justice Department’s Office of International Affairs and the Criminal Division’s Office of Judicial Attaché in Bogotá, Colombia, has also provided significant assistance.
TdA is a violent transnational criminal organization that originated as a prison gang in Venezuela in the mid-2000s. TdA has expanded its criminal network throughout the Western Hemisphere and established a presence in the United States. TdA’s criminal activities include a variety of violent and criminal offenses, including drug trafficking, firearms trafficking, commercial sex trafficking, kidnapping, robbery, theft, fraud, and extortion. TdA members also commit murder, assault, and other acts of violence to enforce and further the organization’s criminal activities. TdA has also developed an additional source of revenue stream through financial crimes that target financial institutions throughout the United States, including using jackpotting to steal millions of dollars in cash.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jose Cesari, Leader of Sophisticated Armed Beer Theft Enterprise, Sentenced to 63 Months in PrisonRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that JOSE CESARI, a/k/a “Cry,” was sentenced to 63 months in prison for conspiring to commit—and committing—theft from interstate or foreign shipments. Between approximately 2022 and 2024, CESARI led the “Beer Theft Enterprise,” a Bronx-based criminal organization focused on breaking into railyards and beverage distribution facilities throughout the Northeast and stealing beer—primarily Corona and Modelo, shipped from Mexico—to bring back to the Bronx to sell. CESARI pled guilty in July 2025 before U.S. District Judge Edgardo Ramos, who imposed today’s sentence.
“Jose Cesari led an armed crew that repeatedly targeted railyards and warehouses, stealing massive quantities of beer and treating it like easy money,” said U.S. Attorney Jay Clayton. “He took part in more than three dozen thefts and recruited others into the scheme. No more. Today’s sentence should send a message to anyone who thinks about stealing from businesses in the Southern District of New York: the women and men of this Office take these crimes seriously, and we will not tolerate them.”
According to the allegations in the Indictment and statements made in public court filings and proceedings:
Between July 2022 and April 2024, the Beer Theft Enterprise carried out dozens of beer thefts, which cumulatively resulted in losses to certain railroad and beverage distribution companies of at least hundreds of thousands of dollars. During at least one of those thefts, the crew carried a gun. In a typical theft, the Beer Theft Enterprise operated during the night. The members of the Beer Theft Enterprise working on a particular night usually assembled in the Bronx before traveling to that night’s target railyard or beverage distribution facility. Normally, the group brought at least one U-Haul box truck to the target railyard or warehouse to be filled with cases of stolen beer. Once they arrived at their target location, members of the Beer Theft Enterprise typically broke into the railyard or warehouse, breached the railcar or area containing Corona or Modelo beer, and transported that beer—often hundreds of cases—to their waiting vehicles. The Beer Theft Enterprise then took the stolen beer back to the Bronx, where it was inspected and made available for sale. After assisting in a beer theft, each of the participating members of the Beer Theft Enterprise was typically paid hundreds of dollars for the night’s work.
As the leader of the Beer Theft Enterprise, CESARI participated in more than three dozen beer thefts in Connecticut, Massachusetts, New Jersey, and New York, and recruited other members to the group. CESARI acted brazenly and without regard for the law. For example, as shown in the image recovered from CESARI’s phone below, CESARI had his picture taken in the midst of one particular beer theft, scaling a railcar filled with Corona beer and holding a yellow angle grinder:
CESARI played a crucial role in ensuring the success of the Beer Theft Enterprise. CESARI regularly used his Instagram account to recruit new members. For instance, CESARI advertised on social media that he could provide a “police scanner” from the “precinct of your choice with the purchase of train method” and promised recruits “100k in ten days sorry not a month.”
CESARI also frequently bragged about how much money he made from his beer heists. For example, as shown in the image below, CESARI posted to his Instagram account an image of himself in a Corona t-shirt, and boasted that, while some people “got rich off of corona virus [virus emoji],” he “got rich off coronas [train emoji],” referring to the Corona beer that he had stolen:
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In addition to the prison term, CESARI, 29, of the Bronx, New York, was sentenced to three years of supervised release. He was also ordered to forfeit $473,710.52 in proceeds from his participation in the Beer Theft Enterprise and make restitution in the amount of $518,710.52.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation, the Port Authority Police Department, and the CSX Railroad Police Department.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Adam Z. Margulies and Joseph H. Rosenberg are in charge of the prosecution.
Jamestown woman pleads guilty to drug conspiracyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Susan Walker, 31, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between 2020 and 2023, Walker conspired with others to sell narcotics for profit, utilizing social media to conduct her drug trafficking activities. Walker and co-defendant David Sekerak Ledesma also maintained two Lafayette Street residences in Jamestown for their drug trafficking activities. The investigation included a series of controlled purchases and the execution of two search warrants at Walker and Ledesma’s Lafayette Street residence, during which investigators seized cash, which represented drug proceeds, drug paraphernalia, and cellular phones.
In July 2020, Ledesma sold drugs to an individual identified as A.R., who overdosed and suffered seriously bodily injury. He was previously convicted and is awaiting sentencing.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, III, New York Field Division, the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
Sentencing is scheduled for June 10, 2026, before Judge Sinatra.
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International ocean bottom seismic operations company pays over $4 million to settle False Claims Act allegationsRead the Press Release
HOUSTON – A Houston-based company that provides ocean bottom node seismic acquisition services to energy companies has paid to resolve allegations of fraudulently securing Paycheck Protection Program loans, announced U.S. Attorney Nicholas J. Ganjei.
In 2020 and 2021, Magseis FF LLC was a subsidiary of Magseis FF AS, which Norway-based Magseis Fairfield ASA owned. The company and its affiliates offer 3D and 4D data services to oil and gas exploration and production companies.
From March 23, 2021, to Jan. 11, 2022, Magseis applied for a “Second Draw” PPP loan and requested forgiveness. The CARES Act created the PPP to provide forgivable loans to small businesses affected by the COVID-19 pandemic. To qualify for these loans, companies had to have fewer than 300 employees or meet industry-specific size limits. Those with shared ownership had to count all affiliated employees.
The settlement resolves allegations that Magseis misrepresented its total employee count to obtain PPP funds and loan forgiveness.
The company has now paid $4,155,333 to resolve the claims and has cooperated throughout the investigation.
The U.S. Attorney’s Office conducted the investigation in coordination with the Small Business Administration. Assistant U.S. Attorney Paul B. Moore is handling the matter along with Attorney Amber Perez, Office of General Counsel for the SBA.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Indian National Indicted for Threatening to Kill a Victim Living in CanadaRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Jasmeet Singh, 30, an Indian national who had been living in Fresno, charging him with transmitting threats to injure another person, United States Attorney Eric Grant announced.
According to court documents, on May 27, 2024, Singh sent multiple threats to a victim living in Canada, threatening to kill the victim because of that victim’s prior cooperation with Indian law enforcement. Singh sent the victim a picture of the victim’s car in front of the victim’s residence, told the victim he knew the victim’s daily habits, including the type of coffee the victim drank, and that the victim could not run because Singh and his associates would kill him/her.
This case was the product of an investigation by the Federal Bureau of Investigation and the Langley Detachment of the Royal Canadian Mounted Police, with assistance from U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant United States Attorney Adrian T. Kinsella is prosecuting the case.
Singh is currently detained in federal custody while awaiting trial.
If convicted, Singh faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Illegal Alien from Honduras Pleads Guilty to Selling Ten FirearmsRead the Press Release
ROANOKE, Va. – A citizen of Honduras, living illegally in Roanoke, pled guilty yesterday to selling ten firearms, including a short-barrel shotgun, to an undercover source working with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Alcides Castro-Martinez, 42, pled guilty yesterday in U.S. District Court in Roanoke to one count of being an illegal alien in possession of a firearm.
According to court documents, between February 2025 and August 2025, ATF utilized a confidential source to conduct seven separate controlled purchases involving a total of ten firearms from Castro-Martinez. On each occasion, Castro-Martinez personally delivered the firearms to the confidential source.
Acting United States Attorney Robert N. Tracci and Anthony A. Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement made the announcement
The Bureau of Alcohol, Tobacco, Firearms and Explosives is investigating the case.
Assistant U.S. Attorney Keith Parrella and Special Assistant United States Attorney Juan Vega, an Assistant Attorney General with the Virginia Attorney General’s Office are prosecuting the case.
Howland Man Sentenced for Passport FraudRead the Press Release
BANGOR, Maine: A Howland man was sentenced today in U.S. District Court in Bangor for making false statements on a passport application.
U.S. District Judge Stacey D. Neumann sentenced Eric Ericson, 73, to time-served (14 months and 8 days) in prison to be followed by three years of supervised release. On October 16, 2025, Ericson was found guilty of passport fraud following a three-day trial.
According to court records and evidence presented at trial, Ericson applied for a U.S. passport at a U.S. Post Office in Bangor on March 24, 2023. When asked about any other names he had used, Ericson failed to disclose his multiple aliases on his passport application. Ericson also falsely reported that he had never applied for or been issued a U.S. passport before, when in fact he had previously applied for and obtained a passport under a different name. He falsely certified that the information in his application was true and correct. Ericson is a registered sex offender, following his Maine state convictions for Gross Sexual Assault, Unlawful Sexual Contact, and Sexual Abuse of a Minor in 2010.
The Diplomatic Security Service Portsmouth Resident Office investigated the case with assistance from the Maine State Police.
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Honduran Man Indicted for Possessing Fraudulent Green CardRead the Press Release
Honduran Man Indicted for Possessing Fraudulent Green Card
CONCORD – A Honduran man has been indicted for possessing a fraudulent immigration document after being encountered by U.S. Border Patrol, U.S. Attorney Erin Creegan announces.
Hector Ariel Ortiz-Guillen, 26, was charged with one count of knowingly possessing a fraudulent or forged Permanent Resident card. According to the charging documents and other publicly filed documents in the case, U.S. Border Patrol encountered Ortiz-Guillen during a traffic stop on December 5, 2025. Ortiz-Guillen is a citizen of Honduras and was not legally present in the United States. During processing at the U.S. Border Patrol station, he was found to be in possession of a forged or fraudulent Legal Permanent Resident card bearing his own photograph but the alien number of a different person, among other irregularities.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charging statute provides for a sentence of up to 10 years in prison, and up to 3 years of supervised release. Ortiz-Guillen is also subject to removal from the United States. 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.
The investigation was led by the United States Border Patrol. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
Hobbs Man Sentenced for Drug Trafficking and Firearms OffensesRead the Press Release
ALBUQUERQUE – A Hobbs man was sentenced to 26 years in prison for drug trafficking and illegal firearm possession as a convicted felon.
There is no parole in the federal system.
According to court documents, on October 19, 2023, agents with the Lea County Drug Task Force stopped a SUV driven by Robert Louis Ortiz III, 39, in Hobbs, New Mexico. During the stop, a canine alerted to narcotics, and Ortiz admitted to possessing three firearms and approximately 3,800 fentanyl pills.
Less than a month later, on November 9, 2023, agents attempted to stop a sedan driven by Ortiz with his co-defendant, Amber Dawn Rogers Johnson, as the passenger in Tatum, New Mexico. The couple fled, crossing into Yoakum County, Texas, where Johnson fired shots at pursuing deputies and threw a backpack containing narcotics and firearms from the vehicle. The chase ended when the vehicle crashed in Hobbs, and both fled on foot before being apprehended.
Law enforcement recovered from the discarded backpack and vehicle search approximately 10,000 fentanyl pills, over 827 grams of pure methamphetamine, and four firearms, along with additional ammunition and magazines.
Ortiz, a previously convicted felon prohibited from possessing firearms, pled guilty to possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, using and carrying a firearm during and in relation to a drug trafficking crime and possessing said firearm in furtherance of the drug trafficking crime, and being a felon in possession of a firearm. Upon his release from prison, Ortiz will be subject to five years of supervised release.
Johnson pleaded guilty to two counts of possession with intent to distribute methamphetamine and two counts of possession with intent to distribute fentanyl and one count of using and carrying a firearm during and in relation to a drug trafficking crime. She was sentenced to 19 years in prison followed by five years of supervised release.
U.S. Attorney Ryan Ellison and Omar Arellano, Special Agent in Charge of the Drug Enforcement Administration, made the announcement today.
The DEA’s El Paso Division investigated this case with the assistance of the Lea County Drug Task Force, Fifth Judicial District Attorney’s Office, Yoakum County Sheriff's Office and the Gaines County Sheriff's Office. Assistant U.S. Attorney Kirk Williams is prosecuting this case.
Highs Gang Members Convicted of RICO Conspiracy and Using a Firearm to Murder Sentenced to Life ImprisonmentRead the Press Release
Highs gang member Dantrell Johnson was sentenced today to life imprisonment for his role in a racketeering conspiracy and gang-related murder. On Dec. 16, Highs gang member Gregory Hamilton was also sentenced to life imprisonment.
Following a federal jury trial, both defendants were convicted of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and using a firearm to cause death.
“The defendants orchestrated a calculated campaign of violence that included ruthless shootings and murders,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “They armed themselves, enlisted others – including juveniles – and hunted down perceived rivals, demonstrating the extreme danger posed by violent gangs. These life sentences reflect the Criminal Division’s unwavering commitment to holding gang leaders accountable and restoring safety to communities terrorized by gang violence.”
“These life sentences reflect our unwavering commitment to hold the most dangerous offenders accountable and remove violent gang networks from our communities,” said Assistant Director of Field Operations Brent Beavers of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) “ATF dedicated hundreds of hours to this investigation alongside our law enforcement partners. We are proud of the meticulous work that brought this ruthless gang to justice.”
“The people of Minneapolis deserve to feel safe and protected in their neighborhoods. The defendants took that right away from them by unleashing violence and terror in their streets,” said Acting Assistant Director Rebecca Day of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates that those who threaten and terrorize innocent community members with violence will be held accountable by the FBI and our partners."
After a two-week trial in April, a federal jury found Gregory Hamilton, 29, and Dantrell Johnson, 32, both of Minneapolis, guilty for their roles in the Highs, a violent Minneapolis street gang, and for a gang-related murder on Aug. 8, 2021.
According to court documents and evidence presented at trial, Hamilton and Johnson were members of the Highs, a criminal enterprise that controlled territory north of West Broadway Avenue in Minneapolis. The evidence established that Hamilton, Johnson, and other Highs members committed murders, narcotics trafficking, weapons violations, burglaries, assaults, and robberies to further the enterprise. As a member of the Highs, the defendant was expected to retaliate against the rival Lows gang, which operated south of West Broadway Avenue.
Trial evidence showed that, on Aug. 7, 2021, a prominent Highs member was shot and killed by a Lows member at the Winner gas station, a known Highs hangout. The following day, Aug. 8, 2021, Highs members organized a memorial at the gas station, where firearms were distributed and members encouraged one another to retaliate against Lows members for the murder. Hamilton, Johnson, and other Highs members were present at the memorial.
Later that same day, Hamilton and Johnson drove to a Lows hangout, Wally’s Foods, and shot a Lows associate (Victim 1), who survived his injuries. Approximately two hours later, Hamilton, Johnson, and other Highs members drove to Skyline Market, another known Lows hangout, intending to shoot another Lows member.
Hamilton and Johnson followed Victim 2 into the store, where surveillance cameras captured them shooting him. The defendants mistakenly believed Victim 2 was a member of the Lows. Victim 2 fled the store and into the street, where another Highs member, Keon Pruitt, who was driving a stolen Porsche with two juvenile Highs members inside, stopped the vehicle and let the juveniles out. The juveniles chased Victim 2 into a nearby alley and fired additional shots. Victim 2 was shot at least eight times and died at the scene.
On Nov. 16, 2025, Highs gang member Keon Pruitt was sentenced to a 451-month term of imprisonment after a federal jury trial found him guilty of Racketeer Influenced and Corrupt Organizations (RICO) Conspiracy and using a firearm to cause death.
These cases against the Highs resulted from an investigation conducted by the ATF; the FBI; the Minneapolis Police Department; IRS Criminal Investigation; the U.S. Postal Inspection Service; the Hennepin County Sheriff’s Office; the Minnesota Bureau of Criminal Apprehension; and the Minnesota Department of Corrections, with assistance from the U.S. Marshals Service, the DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to this investigation through reports or evidence control.
Trial Attorney Brian W. Lynch of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Thomas Lopez-Calhoun, Albania Concepcion, and Rebecca Kline for the District of Minnesota prosecuted the case.
Hammond Man Sentenced to 27 Months in PrisonRead the Press Release
HAMMOND – Yesterday, Anthony Juan McClendon, 30 years old, of Hammond, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to conspiracy to commit bank fraud, announced Acting United States Attorney M. Scott Proctor.
McClendon was sentenced to 27 months in prison, 4 years of supervised release, and ordered to pay $41,426.14 in restitution to victims of the offense.
According to documents in the case, throughout the summer of 2024, McClendon organized and led a scheme to defraud area financial institutions using U.S. Postal Service money orders that had been altered to reflect higher face values than the amounts for which they had been purchased. McClendon recruited additional individuals to the scheme, enabling him to expand the criminal enterprise to victimize banks and credit unions located throughout Northern Indiana. In total, the conspiracy produced and negotiated over $120,000 worth of altered money orders. Prior to this offense, McClendon had received three state convictions for fraud against a financial institution in various Indiana counties.
McClendon is the third defendant to have been convicted and sentenced in this case. On October 22, 2025, co-Defendant Reginald Russell was sentenced to 18 months’ imprisonment to be followed by three years of supervised release for his role in altering low-dollar Postal money orders to reflect higher dollar values at McClendon’s direction. On November 13, 2025, the court also sentenced co-Defendant Austin Hartman to 18 months’ imprisonment followed by three years of supervised release for his role in cashing altered money orders at a local credit union. Russell and Hartman were both ordered to pay restitution to the victims of the offense.
“In this case, Anthony Juan McClendon and his associates exploited the services of community banks and the United States Postal Service in an effort to make money through fraud” said Proctor. “As the court’s sentences in this case demonstrate, serial fraudsters will be met with serious consequences for their conduct in the Northern District of Indiana.”
This case was investigated by the United States Postal Inspection Service, with assistance from the Porter County Sheriff’s Office, Cook County Sheriff’s Office, Munster Police Department, Hammond Police Department, Lansing (Illinois) Police Department, and others. The case was prosecuted by Assistant United States Attorney Zachary D. Heater.
H Block Gang Member Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – A member of the violent Boston-based gang, H-Block, pleaded guilty yesterday in federal court in Boston to drug conspiracy charges.
Eric Celestino, 31, of Boston, pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 18, 2026.
Celestino was one of 10 H-Block gang members and associates charged in August 2024 following a multi-year investigation beginning in 2021 in response to an uptick in gang-related drug trafficking, shootings and violence. According to court documents, over 500 grams of cocaine, cocaine base (crack cocaine) and fentanyl, as well as over 20,000 doses of drug-laced paper were seized during the investigation.
Since the investigation began in 2021, law enforcement attributed 12 incidents of gunfire to growing tensions involving H Block gang associates. Six H Block members and associates were arrested and charged with drug dealing in Boston and surrounding communities. Four additional H Block members and associates were already in state custody at the time of the arrests. Additional drugs and four firearms were seized during the subsequent arrests.
From 2022 through 2023, Celestino, a long-time H Block gang member, participated in a conspiracy to distribute various controlled substances, in particular, powdered cocaine and cocaine base (crack). According to court filings, Celestino was a supplier of cocaine to his co-conspirators, who engaged in various drug deals with an undercover officer.
According to the charging documents, the H Block Street Gang is one of the most feared and influential city-wide gangs in Boston. Originally formed in the 1980s as the Humboldt Raiders in the Roxbury section of Boston, the gang re-emerged in the 2000s as H Block. Current members of H Block have a history of violent confrontation with law enforcement, including an incident in 2015 when a member shot a Boston Police officer at point blank range without warning or provocation.
The charge of conspiracy to distribute and possess with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. 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.
Celestino is the eighth defendant to plead guilty in the case.
United States Attorney Leah B. Foley; Jarod A. Forget, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Special Agent in Charge Randy Maloney of the U.S. Secret Service Boston Field Office; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of the Depart of Labor, Office of Inspector General; and Boston Police Commissioner Michael Cox made the announcement. The investigation was supported by the Massachusetts State Police; Suffolk County District Attorney’s Office; Massachusetts Department of Corrections; and the Braintree, Quincy, Randolph, and Watertown Police Departments. Assistant United States Attorney John T. Dawley of the Organized Crime & Gang Unit and Jeremy Franker of the Justice Department’s Violent Crime & Racketeering Section are prosecuting the cases.This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Boston is comprised of agents and officers from HSI, FBI, DEA, ATF, USMS, IRS-CI, USPIS, DOL-OIG and DSS, as well as several state and local law enforcement agencies, with the prosecution being led by the United States Attorney’s Office for the District of Massachusetts.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Greenwich Investment Advisor Pleads Guilty to Tax EvasionRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, Thomas Demeo, Acting Special Agent in Charge of IRS Criminal Investigation in New England, and P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JEFFREY ARSENAULT, 63, of Greenwich, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in New Haven to tax evasion.
According to court documents and statements made in court, Arsenault was the managing member and majority owner of Old Greenwich Capital Advisors LLC (“OGCA”), which is the investment manager of Old Greenwich Capital Partners LP (“OGCP”), a private equity fund of funds. From 2013 through 2022, OGCP received investment distributions of at least $9.1 million, which should have been distributed to OGCP investors, reinvested, or used to pay authorized expenses. Instead, Arsenault used approximately $5.2 million of the total to pay his personal expenses or other unauthorized expenses, including payments for college tuition and golf club dues.
From 2019 through 2022, Arsenault, through OGCA, also received approximately $2.2 million in net income for performing consulting services for third party investment firms. Although he knew that he was entitled to only 70 percent of the net income based on his OGCA partnership agreement, he kept all of it and used that money for his personal expenses.
From 2013 to 2016, Arsenault failed to report the proceeds from his embezzlement scheme on his individual federal income tax returns, resulting in income tax due and owing of approximately $1,160,161. From 2017 through 2022, Arsenault failed to file any individual tax returns, resulting in total tax due and owing of approximately $1,002,709.
As part of his embezzlement and tax evasion scheme, from 2017 to 2020, Arsenault booked false intercompany loans between OGCA and OGCP to conceal his misappropriation of investor funds, which caused OGCA and OGCP to file false Forms 1065 and provide Arsenault false Schedule K-1s. From 2019 to 2022, Arsenault mischaracterized and concealed from his accountants financial activity, including deposits and wire transfers into his personal bank account, which caused them to prepare false accounting records and tax returns for OGCA.
Arsenault has agreed to pay restitution of $2,162,870 to the IRS. He has also agreed to pay restitution of $4,668,523.75 to victims in a related civil case, Securities and Exchange Commission v. Jeffrey Arsenault, 3:24cv1633.
Arsenault is released on a $50,000 bond pending sentencing, which is not scheduled. Tax evasion carries a maximum term of imprisonment of five years.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation, with the assistance of the Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Heather Cherry.
Georgia Man Guilty of 69 Counts in Dog Fighting CaseRead the Press Release
ALBANY, Ga. – A well-known dog-fighting breeder and trainer in Southwest Georgia was convicted this week of dozens of federal animal welfare charges, along with possessing guns and manufacturing drugs.
Dun Bradford, of Sale City, Georgia, was found guilty of 67 counts of possessing a dog for use in an animal fighting venture, one count of manufacture of and possession with intent to distribute a controlled substance and one count of possession of a firearm in furtherance of a crime on Dec. 16, following a two-day trial that began on Dec. 15, before Chief U.S. District Judge Leslie Abrams Gardner. Bradford faces a maximum of life in prison. Sentencing will be scheduled at a later date.
“The cruel and inhumane realities of dogfighting are closely linked to illegal drugs, firearms and other serious crimes,” said U.S. Attorney William R. “Will” Keyes for the Middle District of Georgia. “Our office will use every available resource alongside our federal, state and local law enforcement partners to dismantle dog fighting organizations and bring those responsible to justice. I am grateful to the concerned citizen who reported the abused dogs, whose tip ended a long-standing criminal operation gravely harming animals and the entire community.”
“The defendant had extensive involvement in dog fighting and had garnered a reputation as a dog fighting breeder and trainer, which is an especially brutal pursuit,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “His conviction highlights local, state and federal law enforcement working together and applying our expertise and resources to rescue 67 abused dogs and get a notorious player out of the dog fighting criminal enterprise.”
“This case demonstrates the good results achieved when local, state and federal law enforcement agencies collaborate to rescue dogs suffering at the hands of those involved in dog fighting and related crimes,” said U.S. Marshal Stephen Lynn of the Middle District of Georgia. “The U.S. Marshals remain committed to supporting law enforcement in bringing those responsible for dog fighting to justice and ensuring that rescued canines are placed in protective custody, giving them a chance at a better life.”According to court documents and statements referenced at trial, the Mitchell County, Georgia, Sheriff’s Office and Code Enforcement Office responded to a citizen complaint of animal tethering and neglect at a 17-acre property owned by Bradford in Sale City. Officers saw many pit bull type dogs on heavy chains outside the residence, with some exhibiting aggression toward one another. Agents and animal experts with the U.S. Department of Agriculture (USDA) and U.S. Marshals Service (USMS) were called and search warrants were obtained and executed on the property.
Agents rescued 67 dogs on chains, many without food, water or shelter. Many of the dogs had recent injuries and scars consistent with dog fighting, including one with severe, recent fighting wounds. A shed on the property held a large amount of dog fighting equipment such as veterinary drugs and devices; anabolic horse steroids; a “breeding stand” used to forcibly breed dogs; training and execution items; and paper pedigrees documenting the fighting history of the dogs.
Evidence presented at trial showed Bradford’s home was an area that was used for a long time to breed and train dogs for fighting. Officers also found firearms in Bradford’s home and crack cocaine, along with evidence that the crack was manufactured in Bradford’s kitchen.The case was investigated by the USDA, USMS and the Mitchell County, Georgia, Sheriff’s Office and Code Enforcement Office, with assistance from the Georgia Bureau of Investigation (GBI).
Senior Trial Attorney Ethan Eddy with the Justice Department’s Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Criminal Chief Leah McEwen with the U.S. Attorney’s Office for the Middle District of Georgia 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. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Georgia Man Guilty of 69 Counts in Dog Fighting CaseRead the Press Release
Note, the press release has been updated to include a quote from USDA OIG.
A well-known dog-fighting breeder and trainer in Southwest Georgia was convicted earlier this week of dozens of federal animal welfare charges, along with possessing guns and manufacturing drugs.
Dun Bradford, of Sale City, Georgia, was found guilty of 67 counts of possessing a dog for use in an animal fighting venture, one count of manufacture of and possession with intent to distribute a controlled substance, and one count of possession of a firearm in furtherance of a crime.
“The defendant had extensive involvement in dog fighting and had garnered a reputation as a dog fighting breeder and trainer, which is an especially brutal pursuit,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “His conviction highlights local, state, and federal law enforcement working together and applying our expertise and resources to rescue 67 abused dogs and get a notorious player out of the dog fighting criminal enterprise.”
“The cruel and inhumane realities of dogfighting are closely linked to illegal drugs, firearms and other serious crimes,” said U.S. Attorney William R. “Will” Keyes for the Middle District of Georgia. “Our office will use every available resource alongside our federal, state and local law enforcement partners to dismantle dog fighting organizations and bring those responsible to justice. I am grateful to the concerned citizen who reported the abused dogs, whose tip ended a long-standing criminal operation gravely harming animals and the entire community.”
“This case demonstrates the good results achieved when local, state, and federal law enforcement agencies collaborate to rescue dogs suffering at the hands of those involved in dog fighting and related crimes,” said U.S. Marshal Stephen Lynn for the Middle District of Georgia. “The U.S. Marshals remain committed to supporting law enforcement in bringing those responsible for dog fighting to justice and ensuring that rescued canines are placed in protective custody, giving them a chance at a better life.”
“The U.S. Department of Agriculture (USDA) Office of Inspector General (OIG) appreciates the collaboration with our law enforcement partners and the prosecutors in this case,” said USDA OIG Special Agent-in-Charge Miles Davis. “USDA OIG is committed to investigating individuals who choose to participate in animal fighting activities and engage in violations involving animal welfare. We thank the U.S. Marshals Service, the Mitchell County, Georgia, Sheriff’s office and Code Enforcement Office, the Georgia Bureau of Investigation, the Middle District of Georgia, and the Environment and Natural Resources Division of the Department of Justice for their partnership with us on this impactful investigation.”
According to court documents and statements referenced at trial, the Mitchell County, Georgia, Sheriff’s Office and Code Enforcement Office responded to a citizen complaint of animal tethering and neglect at a 17-acre property owned by Bradford in Sale City. Officers saw many pit bull type dogs on heavy chains outside the residence, with some exhibiting aggression toward one another. Agents and animal experts with the U.S. Department of Agriculture (USDA) and U.S. Marshals Service (USMS) were called and search warrants were obtained and executed on the property.
Agents rescued 67 dogs on chains, many without food, water, or shelter. Many of the dogs had recent injuries and scars consistent with dog fighting, including one with severe, recent fighting wounds. A shed on the property held a large amount of dog fighting equipment such as veterinary drugs and devices; anabolic horse steroids; a “breeding stand” used to forcibly breed dogs; training and execution items; and paper pedigrees documenting the fighting history of the dogs.
Evidence presented at trial showed Bradford’s home was an area that was used for a long time to breed and train dogs for fighting. Officers also found firearms in Bradford’s home and crack cocaine, along with evidence that the crack was manufactured in Bradford’s kitchen.
Bradford faces a maximum penalty of life in prison. Sentencing will be scheduled at a later date.
The case was investigated by the USDA, USMS, and the Mitchell County, Georgia, Sheriff’s Office and Code Enforcement Office, with assistance from the Georgia Bureau of Investigation.
Senior Trial Attorney Ethan Eddy with ENRD’s Environmental Crimes Section and Criminal Chief Leah McEwen with the U.S. Attorney’s Office for the Middle District of Georgia 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. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Fraudster Sentenced to 71 Months in Prison for Crypto Ponzi Scheme “IcomTech”Read the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that Magdaleno Mendoza was sentenced to 71 months in prison for his role in the large-scale cryptocurrency Ponzi scheme known as IcomTech and for reentering the United States illegally after having been deported. MENDOZA pled guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry before the Honorable Paul G. Gardephe, who imposed today’s sentence.
A number of MENDOZA’s co-conspirators—David Carmona, IcomTech’s founder; Marco Ruiz Ochoa, IcomTech’s purported CEO; Gustavo Rodriguez, IcomTech’s web developer; and David Brend, Juan Arellano, and Moses Valdez, all senior IcomTech promoters—have been convicted and sentenced separately for their roles in the IcomTech Ponzi scheme.
“As a senior promoter of IcomTech, Mendoza helped prey on Spanish-speaking victims who lacked investment experience, including our fellow New Yorkers,” said U.S. Attorney Jay Clayton. “By exploiting trust and the promise of ‘crypto,’ he and his co-conspirators stole millions from working-class people. Today’s sentence provides a measure of justice.”
According to the Indictment, public filings, and public court proceedings:
IcomTech, which launched in mid-2018, was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. In reality, IcomTech was a multi-level marketing Ponzi scheme. By at least December 2018, MENDOZA, who previously promoted at least two other similar cryptocurrency Ponzi schemes, was promoting IcomTech and recruiting victim-investors. MENDOZA was one of the most senior promoters of IcomTech and was in regular contact with IcomTech’s founder, David Carmona.
MENDOZA and the other promoters of IcomTech falsely promised their respective Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and MENDOZA and IcomTech’s other promoters used Victim funds to pay other Victims to further promote the scheme and enrich themselves. MENDOZA and other IcomTech promoters primarily targeted working-class, Spanish-speaking Victims who had little to no prior experience with cryptocurrency.
IcomTech promoters, including MENDOZA, traveled throughout the U.S., where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. MENDOZA personally hosted IcomTech promotional events at his restaurant in the greater Los Angeles area, where he collected thousands in cash from his Victims as purported IcomTech investments.
Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including MENDOZA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate.
At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including MENDOZA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech. Promoters of the scheme claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims.
By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed. After IcomTech, MENDOZA moved on to promote at least three other cryptocurrency Ponzi schemes.
MENDOZA was residing in the United States illegally when he promoted IcomTech and the other cryptocurrency Ponzi schemes. He had been residing in the United States illegally for decades, and had previously been deported or removed four times, including once using a false identity.
* * *
In addition to the prison sentence, MENDOZA, 56, a citizen of Mexico, was ordered to pay restitution to victims in the amount of $789,218.94 and forfeiture in the amount of $1,500,000. He was also ordered to forfeit his interest in his residence in Downey, CA, which was purchased using proceeds from the crime.
Mr. Clayton praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Clayton also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance.
The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Michael D. Maimin, T. Josiah Pertz, and Cecilia E. Vogel are in charge of the prosecution.
Four Mexican Nationals Unlawfully Residing in the United States Accused of Illegally Possessing Firearms and False StatementsRead the Press Release
MEDFORD, Ore.— Four Mexican nationals unlawfully residing in the United States made their initial appearance today after allegedly making false statements on their application to purchase firearms and for illegally possessing firearms.
Samuel Rodrigo Melo Santos, 27, Samuel Amador Ortega, 23, Aldo Melo Amador, 23, and Oscar Amador Ortega, 21, have been charged by criminal complaint with alien in possession of a firearm and making false statements on ATF Form 4473.
According to court documents, in July 2025, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigators, as part of a compliance inspection, began reviewing ATF Form 4473, known as the Firearms Transaction Records, of a Federal Firearms Licensee (FFL) in Cave Junction, Oregon. ATF Form 4473 must be completed by the person who is purchasing a firearm. During the inspection, investigators observed repeated sales of the same make and model of firearm by a group of individuals sharing the same address in O’Brien and Medford, Oregon, indicative of firearms trafficking.
As of July 22, 2025, O. Amador Ortega, has purchased 25 firearms from the FFL in Cave Junction and two other FFLs located in Southern Oregon. Since April 4, 2025, S. Amador Ortega has purchased a total of 16 firearms from this FFL. Melo Amador began purchasing firearms from the FFL in March 2024 and his last purchase was on June 14, 2025. In total, Melo Amador purchased 36 firearms from this FFL, and five other firearms from two other FFLs located in Medford. Since May 2024, Melo Santos has purchased 91 firearms from this FFL.
On ATF Form 4473, defendants wrote “Mexico” for place of birth and checked the box next to the United States for country of citizenship. An immigration query into Melo Santos, S. Amador Ortega, Melo Amador, and O. Amador Ortega concluded they have no legal status in the United States and are residing unlawfully in the United States.
Melo Santos, S. Amador Ortega, Melo Amador, and O. Amador Ortega made their first appearance in federal court today before a U.S. Magistrate Judge. They were ordered detained pending further court proceedings.
ATF is investigating the case with assistance from the Drug Enforcement Administration and Homeland Security Investigations. Assistant U.S. Attorney Judith Harper is prosecuting the case.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Founder of Private Equity Firm Charged with Defrauding Investors Out of MillionsRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging JAY LUCAS, the founder and managing partner of Lucas Brand Equity LLC (“LBE”), a private equity fund based in Manhattan, with securities fraud, investment adviser fraud, wire fraud, and money laundering. The charges in the Indictment arise from an alleged scheme by LUCAS to raise more than $50 million from investors by falsely representing that their money would be invested in early-stage health and wellness companies, when in fact it was diverted to cover personal expenses, promote unrelated ventures, and make Ponzi-like payments to earlier investors. LUCAS was arrested today and will be presented in the District of New Hampshire. The case has been assigned to U.S. District Judge Jennifer L. Rochon.
“As alleged, Jay Lucas promised investors he would use their hard-earned money to grow wellness businesses, with everyone sharing in the profits,” said U.S. Attorney Jay Clayton. “Instead, Lucas allegedly lied, frittered away investor money on personal vanity projects, and betrayed his obligations to his investors. With the assistance of our dedicated law enforcement partners, our Office will continue to aggressively prosecute fraud in our public and private markets.”
“Jay Lucas allegedly systematically misappropriated millions of dollars from his investors, diverting their money to personal expenses, repayments to other investors, and his wife’s business,” said FBI Assistant Director in Charge Christopher G. Raia. “As the fund’s managing partner, Lucas’s alleged deceit not only failed to sustain his company’s operations but also betrayed the trust of his clients and employees. The FBI remains committed to investigating any business executive who abuses their authority to satisfy selfish interests at the cost of others.”
According to the allegations contained in the Indictment unsealed today:[1]
LUCAS is the founder and managing partner of LBE and three private funds: Lucas Brand Equity LP (“Fund One”), L.B. Equity Emerging Growth LP (“Fund Two”), and L.B. Equity Wellness Growth L.P. (“Fund Three”). Since 2017, LUCAS has defrauded investors through fabricated credentials and systematic misappropriation of their funds.
LUCAS falsely claimed to have co-founded a well-known private equity firm, which he did not, eventually prompting a cease-and-desist demand from that firm’s lawyers. He told investors that LBE’s “core strategy is to invest in these small to mid-size emerging brands, provide value-added services to differentiate them and catalyze growth to a sufficient scale for exit.” In reality, LUCAS spent investor money on personal expenses including alimony, rent, a vanity newspaper project in his hometown, and political consultants. He used new investor money to pay earlier investors in Ponzi-like fashion, enriching himself while starving the Funds and portfolio companies of capital. LUCAS also funneled investor money to Immunocologie, a luxury skincare business run by LUCAS’s wife. Most purported investments in Immunocologie went to “marketing” expenses, such as parties and trips to luxury resorts where LUCAS’s wife promoted “brand awareness.” Investors were unaware that LUCAS was using their money to fund his wife’s social calendar, and many investors did not even know that the person operating Immunocologie was married to LUCAS. Moreover, LUCAS arranged for LBE, not the Funds, to take majority ownership interest in Immunocologie, giving himself and not his clients an equity interest in the business.
LUCAS’s misconduct left the Funds chronically undercapitalized and unable to cover basic fund expenses, including salaries for LBE employees. When LBE employees confronted LUCAS about his misuse of investor funds, he dismissed their complaints. Internally, employees continued to express frustration about LUCAS’s misuse of investor money, writing that LUCAS’s spending was “not spending on LBE,” was “literally fraudulent,” and was “a huge betrayal of investor trust and most likely illegal.” After multiple confrontations, employees feared pressing further would cost them their jobs.
As of the date of this Indictment, none of the Funds’ investments have paid off, and no investors have received returns. The Funds and their portfolio companies have hemorrhaged cash and been unable to cover basic expenses while LUCAS and his family have taken the Funds’ money to serve their own interests.
* * *
LUCAS, 71, of Portsmouth, New Hampshire, was charged in an Indictment with one count of securities fraud, one count of wire fraud, and one count of money laundering, each of which carries a maximum term of 20 years in prison, and one count of investment adviser fraud, which carries a maximum term of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI. Mr. Clayton also thanked the U.S. Securities and Exchange Commission for their assistance and cooperation in the investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam S. Hobson and David J. Robles are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Fort Dodge Man to Federal Prison for Distributing MethamphetamineRead the Press Release
A man who distributed methamphetamine on two occasions while on state probation was sentenced yesterday to more than seven years in federal prison.
Desmond Collins, age 34, from Fort Dodge, Iowa, received the prison term after an August 13, 2025, guilty plea to two counts of distribution of a controlled substance.
At his plea and sentencing hearings, Collins admitted that in October 2024, he distributed a total of approximately three ounces of methamphetamine to a person cooperating with law enforcement in Fort Dodge, Iowa. At the time of the distribution, Collins was on state probation for three separate crimes: assault with a dangerous weapon and criminal mischief; driving while barred; and possession of marijuana. Collins has an extensive criminal history including multiple eluding convictions and four domestic assault convictions.
Collins was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Collins was sentenced to 90 months’ imprisonment for each count, to be served concurrently. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system.
Collins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Webster County Sheriff’s Office and the Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-03021. Follow us on X @USAO_NDIA.
Former Voice of America Employee Pleads Guilty to Making Threats Against Rep. Marjorie Taylor GreeneRead the Press Release
WASHINGTON – Seth Jason, 64, of Edgewater, Maryland, pleaded guilty today in U.S. District Court to making anonymous, telephonic threats against Rep. Marjorie Taylor Greene between October 2023 and January 2025, announced U.S. Attorney Jeanine Ferris Pirro and United States Capitol Police Chief Michael Sullivan.
Jason pleaded guilty to one count of Interstate Communications with a Threat to Kidnap or Injure and one count of Anonymous Telecommunications Harassment.
U.S. District Judge Emmet G. Sullivan set a sentencing date for June 18, 2026.
“Seth Jason repeatedly threatened to assault and kill Rep. Marjorie Taylor Greene and did so from inside Voice of America where he was employed. No one should have to live their life in fear wondering if those threats are about to be fulfilled,” said U.S. Attorney Pirro. “Today’s guilty plea sends a clear message—my office will not take these threats lightly—think twice because we will find you and we will convict you.”
According to court documents, Jason made eight calls between Oct. 11, 2023, and Jan. 21, 2025, to the congressional offices of a member of the House of Representatives. In those calls, Jason repeatedly threatened the Representative, the Representative’s family, and the Representative’s staff.
The threats escalated over time, culminating with two threats coinciding with the Presidential Inauguration. Specifically, on Jan. 8, 2025, just 12 days before the Inauguration, Jason left a voicemail with the Representative’s office stating that the Representative would not “see the inaugural,” and that the Representative, the Representative’s staff, and the Representative’s family would be dead. Then, on Jan. 21, 2025, Jason left another threatening voicemail with the Representative’s congressional office, stating the Representative and the Representative’s staff “were as good as dead,” and to “make your last will ready, because we are coming after you, and the only thing you’re going to hear is bang…I’m yearning to hear you cry for your last breath.”
The investigation revealed that Jason, a former Voice of America employee, placed each of the eight calls while he was working inside of the VOA headquarters, which is in the District of Columbia.
Jason faces a statutory maximum sentence of five years in prison on the charge of Interstate Communications with a Threat to Kidnap or Injure and two years in prison on the charge of Anonymous Telecommunications Harassment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Capitol Police and Department of State Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Brendan Horan and Travis Wolf.
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Former Principals of “Pre-IPO” Fund Plead Guilty to $65 Million Fraud and Money Laundering SchemesRead the Press Release
Earlier today, in federal court in Brooklyn, John Cangialosi, Peter Girgis, and Gene Sarabella, also known as “Jerry,” pleaded guilty to all counts of a five-count indictment charging them with conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, investment adviser fraud, and money laundering conspiracy. The proceedings were held before United States District Judge Carol Bagley Amon. When sentenced, the defendants each face up to 60 years in prison. The defendants had been scheduled to go to trial on January 12, 2026.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.
“The defendants were the architects of a vast fraud scheme targeting investors here in the Eastern District of New York and all throughout the country,” stated United States Attorney Joseph Nocella. “They hid excessive fees, concealed their identities, and lied about the securities they sold to investors. They then used investor funds to enrich themselves, principally through the purchase of millions of dollars in luxury watches. The Office is committed to protecting the public from predatory fund managers who get rich deceiving investors out of their hard-earned savings.”
Mr. Nocella expressed his appreciation to the Securities and Exchange Commission (SEC), Washington, D.C. Home Office, for its significant cooperation and assistance during the investigation.
As set forth in court filings and during court hearings, the defendants operated Max Infinity Management LLC, Elder Fund Management LLC, and a related series of funds (collectively, Max Infinity), which operated as a boiler-room style call center. Max Infinity marketed investments in securities of privately-held companies that were purportedly planning to go public through an initial public offering (IPO) in the immediate future. The defendants made numerous material misrepresentations and omissions about the terms and structure of their investments and Max Infinity itself. For example, among other things, the defendants and their employees falsely claimed that Max Infinity would make money only when its investors made money through a 20% share of the profits upon an eventual IPO. In truth, Max Infinity secretly charged investors a significant mark-up, at times more than 95% of the value of an investment, and paid commissions to sales agents from investor capital, sometimes 15% of the value of each investment, all of which the defendants hid from investors.
The defendants also lied to investors about when and how Max Infinity acquired interests in pre-IPO companies, the use of investor funds, Max Infinity’s track record of performance, and the returns they could expect on their investments. For instance, the defendants and their employees told investors that Max Infinity acquired shares directly from the issuers and from the issuers’ employees. In fact, Max Infinity acquired the majority of the interests that it sold from other investment funds or through online platforms that were widely available to the investing public. The defendants and their employees told investors that “shares” were “in inventory,” and that investor money would be held in escrow. In truth, in many cases the share interests had not yet been purchased and the defendants comingled and spent nearly all investor capital, including through secret distributions to themselves totaling millions of dollars. The defendants and their employees also falsely claimed to investors that Max Infinity had conducted extensive due diligence and had a history of similar, successful transactions. For instance, Max Infinity employees claimed that Max Infinity had invested in, among other companies, Palantir, Facebook, and Airbnb. In truth, all of these companies went public before Max Infinity was even founded, and Max Infinity had never returned a profit to any investor.
The defendants further misled investors about Max Infinity itself and their involvement in the company. Max Infinity employees claimed to investors that Max Infinity was “registered” with the SEC and filed regular reports with the SEC. To lull prospective investors, the defendants and their employees sent clients a link to a website that purported to show that Max Infinity was registered with the SEC when it was not. They also took steps to hide Girgis’s and Cangialosi’s roles at Max Infinity from regulators, investors and prospective investors, because the two were subject to staggered, nine-month suspensions imposed by the Financial Industry Regulatory Authority (FINRA) and had lengthy disciplinary histories.
As part of their criminal scheme, the defendants used scripts with high-pressure sales tactics and solicited investments from elderly victims who were particularly susceptible to their lies. Among other false claims, scripts used by the defendants promised “triple digit returns,” that securities sold marketed by Max Infinity were “dirt cheap,” and that the company spent “millions of dollars, sometimes tens of millions on research before we ever recommend an investment to a client.” The defendants received millions of dollars of profits from their scheme, which they laundered through various purchases, including dozens of high-end watches.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and the General Crimes Section. Assistant United States Attorneys Sarah M. Evans, Nicholas M. Axelrod and Eric Silverberg are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett. Assistant United States Attorney Michael Castiglione of the Office’s Asset Forfeiture Section is handling forfeiture matters.
Defendants:
JOHN CANGIALOSI
Age: 44
Manalapan, New Jersey
PETER GIRGIS
Age: 44
Staten Island, New YorkGENE SARABELLA (also known as “Jerry”)
Age: 37
Monroe, New JerseyDefendants Who Previously Pleaded Guilty:
ENRICO CARINI (also known as “Ed”)
Age: 40
Staten Island, New YorkCANER OTAR (also known as “John”)
Age: 38
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-363 (CBA)
Former Ohio Senate Candidate Pleads Guilty to $4.5M Wire Fraud SchemeRead the Press Release
CLEVELAND – A Summit County man has pleaded guilty to wire fraud after defrauding his employer, a police organization, and an online fundraising company out of millions of dollars.
According to court documents, from about March 2022 to November 2024, Jonathan Leissler, 44, of Stow, Ohio, worked at an industrial supply company in Warrensville Heights, Ohio, as its chief financial officer (CFO). This role allowed him access to sensitive data such as payroll, expenditures, accounts payable, and company credit cards. He created fake payroll records to receive unauthorized payments, with amounts ranging from about $5,000 to $20,000 per transaction in addition to his regular salary.
In December 2023, he began his bid for a seat on the Ohio Senate representing District 28. He utilized an online fundraising platform to collect donations toward his election campaign which were deposited into a designated “Leissler for Ohio” bank account. Using his employer’s company credit cards, Leissler proceeded to make unauthorized donations to his own election campaign. Then, he would request a refund of the donation. The refund request would trigger the fundraising platform to withdraw funds from the “Leissler for Ohio” bank account. However, Leissler changed the bank account associated with his campaign to a different, non-existent bank account before the funds could be withdrawn to process the refund.
Leissler also had access to a second source of funds through a local fraternal order of police (FOP). From about December 2021 to November 2024, he was the treasurer for the organization and held a debit card and checkbook for the FOP account, which he used to make numerous unauthorized withdrawals and expenditures. He regularly reported to FOP leadership that the account balance was significantly higher than he knew it to be.
Federal investigators found that Leissler used embezzled funds to charter private planes, travel, provide a down payment for a vacation property in South Carolina, and make mortgage payments for the vacation property as well as his residential home. He also used funds to pay for credit cards, vehicles, cryptocurrency mining equipment, and to start up a side business. He also paid for advertising to encourage voters to support his election to the Ohio Senate.
Leissler’s actions resulted in victims being defrauded of approximately $4.5 million in combined losses.
Leissler was charged by a bill of information on Nov. 12 and pleaded guilty Dec. 17 to three counts of wire fraud. Leissler faces a maximum penalty of 20 years in prison. Sentencing is scheduled for April 8, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This investigation was conducted by the FBI Cleveland Division.
Assistant United States Attorney Megan R. Miller is leading the prosecution for the Northern District of Ohio.
Note:
Updated 2-5-26 with sentencing date.