Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 December 2025
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:
* * *
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.
# # # #
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.
###
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.
###
25cr191
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.
Florida Man Pleads Guilty to Health Care Fraud and Kickback ConspiracyRead the Press Release
NEWARK, N.J. – A Florida man pleaded guilty to conspiring to bill Medicare for medically unnecessary prescriptions, Senior Counsel Philip Lamparello announced.
Eric Van Vleet, 30, of Delray Beach, Florida, pleaded guilty to a superseding information charging him with conspiracy to commit health care fraud and conspiracy to violate the federal Anti-Kickback Statute, before U.S. District Judge Madeline Cox Arleo in Newark federal court.
According to documents filed in this case and statements made in court:
From February 2018 to September 2019, Van Vleet operated Hype Med LLC, which generated medically unnecessary prescriptions through a telemarketing and telemedicine scheme. As part of the health care fraud and kickback conspiracy, Van Vleet and Hype Med identified Medicare beneficiaries to target for expensive drugs. Call center employees contacted beneficiaries to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, migraine medication, and a combination of prescription medications to be used as a “foot soak.” Van Vleet and Hype Med then sent recordings of calls with the beneficiaries, along with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. Hype Med paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions.
Van Vleet then directed the prescriptions to pharmacies, including Apogee Bio-Pharm LLC, located in Edison, New Jersey, with which Hype Med had a kickback arrangement. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare. The pharmacies, including Apogee, then paid a portion of each reimbursement to Hype Med as a kickback. Van Vleet and Hype Med received at least approximately $343,683.69 in kickback payments from the owners of Apogee. The principals of Apogee—William Welwart, Ethan Welwart, and Gary Kaczka—are charged with health care fraud and related offenses in a separate indictment. Elan Yaish, former President of Apogee, previously pleaded guilty to an information charging conspiracy to violate the federal anti-kickback statute. As a result of medically unnecessary prescriptions generated by Hype Med, Medicare paid at least $1,399,812.52 based on false and fraudulent claims.
The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison, and the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of 5 years in prison. Each count is also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.
###
Defense counsel: Michael Baldassare, Esq.
van_vleet.information.pdfFederal grand jury indicts Buffalo man on multiple counts of production of child pornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney Michael DiGiacomo announced today that a federal grand jury has returned an indictment charging Eddie Franceschini, 34, of Buffalo, NY, with eight counts of production of child pornography and three counts of possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on eight separate occasions between December 1, 2023, and July 26, 2024, Franceschini coerced a minor victim to engage in sexually explicit behavior, and then produced a visual depiction of the conduct. In addition, between June 27 and July 27, 2025, Franceschini possessed images of child pornography on three different cellular telephones.
Franceschini was arraigned before U.S. Magistrate Judge Michael J. Roemer and was detained.
The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Alphonso Wright and Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Federal Inmate to Serve 11 Additional Years in Federal Prison for Possession of and Assault with a "Shank"Read the Press Release
OKLAHOMA CITY – BRYAN JOSHUA TEWANEMA, 32, of Arizona, has been sentenced to serve 132 months in federal prison for possessing a prohibited object at the Federal Transfer Center (FTC) in Oklahoma City and for assault with a dangerous weapon and possessing a prohibited object at the Grady County Jail, announced U.S. Attorney Robert J. Troester.
“This case demonstrates that the danger posed to corrections staff and inmates does not evaporate simply because they are behind bars,” said U.S. Attorney Robert J. Troester. “We appreciate the important work performed by corrections officers every day, and our office will continue to hold inmates accountable if they assault or present a danger to corrections staff or other inmates.”
According to public record, on May 29, 2024, corrections officers with the FTC discovered a sharpened piece of plexiglass, a “shank,” hidden in Tewanema’s pant leg. Evidence at trial indicated that this incident was the fourth time a “shank” had been located either on Tewanema’s person or in a cell assigned to him. At the time, Tewanema was in federal custody as part of a 355-month prison sentence for second-degree murder and use of a firearm during a crime of violence in Indian Country following his conviction in the District of Arizona in case number CR-17-08223.
On July 17, 2024, a federal grand jury charged Tewanema with possession of a prohibited object. On December 4, 2024, after a two-day trial, a federal jury found Tewanema guilty of the charge.
While awaiting sentencing in the case described above, and while temporarily being housed at the Grady County Jail while in United States Marshals custody, court records show that on March 31, 2025, Tewanema stabbed a fellow inmate with another “shank.”
On April 16, 2025, a federal grand jury charged Tewanema with assault with a dangerous weapon and possession of a prohibited object. On July 9, 2025, following another two-day trial, a federal jury found Tewanema guilty of both charges. The assault charge is in federal court because Tewanema is a member of the Navajo Nation and the crime occurred within the boundaries of the Chickasaw Nation.
At a sentencing hearing on December 18, 2025, Chief U.S. District Judge Timothy D. DeGiusti sentenced Tewanema to serve 132 months in federal prison, to run consecutive to his ongoing federal sentence.
This case is the result of an investigation by the Federal Bureau of Prisons’ Special Investigative Services and the Grady County Criminal Justice Authority. Assistant U.S. Attorneys Tiffany Edgmon and Jordan Ganz prosecuted both cases.
Reference is made to public filings for additional information.
Federal Inmate Sentenced to Life Term in Connection with Murder of Fellow InmateRead the Press Release
ROCKFORD — A federal prison inmate has been sentenced to a term of life imprisonment in connection with the murder of his cellmate.
HOUSTON CLYDE, 28, formerly of the Navajo Nation in Arizona, stabbed his cellmate to death while the pair were incarcerated in November 2020 at the United States Penitentiary in Thomson, Ill. The fatal stabbing occurred while Clyde was serving a 17-year sentence for a 2016 murder in Tuba City, Ariz.
Clyde pleaded guilty earlier this year to a second-degree murder charge. U.S. District Judge Iain D. Johnston imposed the life sentence during a hearing on Wednesday in federal court in Rockford.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.
“Nothing is more abrupt or final than the taking of another’s life by a violent act,” Assistant U.S. Attorney Jessica Maveus argued in the government’s sentencing memorandum. “This murder extends beyond the taking of a life—it shattered the lives of those expecting the victim to return home from prison.”
Federal Grand Jury Indicts Man on Terrorism and Arson Charges for Lighting Train Passenger on Fire and Setting Chicago City Hall Ablaze Days EarlierRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a man on terrorism and arson charges for allegedly lighting a passenger on fire on a Chicago Transit Authority train and setting fire to Chicago City Hall three days earlier.
The indictment against LAWRENCE REED, 50, of Chicago, was returned on Wednesday in U.S. District Court for the Northern District of Illinois. The charges in the indictment are punishable by a maximum sentence of life in federal prison.
The indictment renews the terrorism offense for which Reed was initially charged last month. Reed allegedly approached a woman aboard a Chicago Transit Authority train on Nov. 17, 2025, ignited a bottle containing a liquid substance, and used it to light the victim on fire. The victim was engulfed in flames but was able to depart the train. She remains hospitalized with critical injuries.
The indictment for the first time charges Reed with arson for allegedly setting a fire to Chicago City Hall on Nov. 14, 2025. The indictment accuses Reed of maliciously damaging and attempting to destroy the building, which is located at 121 N. LaSalle St. in downtown Chicago.
Reed was arrested by Chicago Police officers on Nov. 18, 2025, and he remains detained in federal custody without bond. Arraignment for the charges in the indictment is scheduled for Dec. 19, 2025, at 12:00 p.m. before U.S. Magistrate Judge Laura K. McNally.
The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Chicago Transit Authority. The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Ronald L. DeWald.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
reed_indictment.pdfFather and Son Tax Preparers Indicted on 24 Counts in Defrauding the IRSRead the Press Release
WASHINGTON – Vincent Larry Phillips, Sr., 60, and Vincent Michael Phillips, Jr., 36, a father and son who operated a tax return preparation business in the District of Columbia, were charged in an 24-count indictment unsealed today in U.S. District Court in connection with an alleged yearslong scheme that defrauded the Internal Revenue Service, announced U.S. Attorney Jeanine Ferris Pirro.
The indictment charges one count of conspiracy, 14 counts of aiding in the preparation of false returns, four counts of false statements, and four counts of aggravated identity theft.
Phillips Sr. surrendered today to federal authorities. Phillips Jr. was arrested this morning in the District.
Since 1995, Vincent Larry Phillips Sr. has owned and operated Tax Express LLC on the 1300 block of Pennsylvania Avenue SE. Phillips Jr. occasionally worked for his father’s business, which was alternatively named Nubian Tax Service, Nubian Tax Express, Nubian Tax Express 1, Express Tax, and Express Tax.
“Phillips Sr. has done this before, he pleaded guilty to a similar offense in 2010,” said U.S. Attorney Pirro. “Rest assured after this he will not do it again. My office and President Trump are intent on cutting fraud, waste, and abuse and will prosecute those offenses wherever we find it.”
According to the indictment, father and son each prepared false and fraudulent tax returns that in various ways either improperly inflated the client’s claimed refund or resulted in the client claiming a refund when they should have owed taxes. The Phillips allegedly often did this without the knowledge of their clients and allegedly would skim part of the refund for their personal use.
In March 2022, IRS Special Agents conducted an undercover operation at Tax Express. Father and son allegedly prepared separate false returns for the undercover agents. Each preparer allegedly claimed expenses for a fictional “geothermal heat pump” that reduced the tax burden. The agents had not reported the purchase of a heat pump. A correctly prepared return would have showed that the undercover agents were either getting a small refund or owed a small tax. Instead, the documents that the Phillips submitted to the IRS claimed a more substantial refund. The Phillips did not tell the undercover agents that they had added heat pump expenses to their tax returns.
Among other allegations included in the indictment, the elder Phillips allegedly used the identity of a female associate to disguise the fact that the returns were prepared and electronically filed by a business he operated. The IRS had previously expelled Phillips from the IRS’s e-file program and revoked his business’s EFINs as a consequence of his criminal conviction in 2010 for tax crimes.
This case is being investigated by Internal Revenue Service-Criminal Investigation, the U.S. Attorney’s Office for the District of Columbia, and the Department of Justice Criminal Division. It is being prosecuted by Assistant U.S. Attorney Sarah Ranney and Criminal Division Trial Attorney Emerson Gordon-Marvin.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Farmington Man Who Threatened to Kill Public Officials is SentencedRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that KASEY CHARLES HAWORTH, 30, of Farmington, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to approximately 25 months of imprisonment, time already served, and three years of supervised release for threatening to kill members of Congress and other public officials.
According to court documents and statements made in court, in October 2023, the U.S. Capitol Police reviewed a series of posts on the social media platform X explicitly threatening to kill and maim various public officials, including two members of Congress. Investigators determined that Haworth was the user of the X account and, on October 24, 2023, the U.S. Secret Service and Farmington Police interviewed him at his residence and confirmed that he had written the posts. On October 30, 2023, Haworth made additional threatening X posts, including one stating “Anyone working in law enforcement in the USA that tries to shoot me will be killed by me, if you see me trying to take back my government don’t try to stop me or you will be the one who dies and thats it!”
Haworth was arrested on November 2, 2023, and has been detained since his arrest. On October 20, 2025, he pleaded guilty to making threatening communications.
Judge Hall ordered, as part of his supervised release, that Haworth continue mental health treatment, not have any contact with victims, and allow his electronic devices to be monitored by the U.S. Probation Office.
This matter was investigated by the U.S. Capitol Police with the assistance of the U.S. Secret Service and the Farmington Police Department.
FDC Philadelphia Correctional Officer Pleads Guilty to Sexual Abuse, Violating Inmate’s Civil RightsRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Michael Jefferson, 43, of Cherry Hill, New Jersey, a correctional officer at Federal Detention Center (FDC) Philadelphia, entered a plea of guilty before United States District Judge Joshua D. Wolson Wednesday afternoon on one count of aggravated sexual abuse, one count of sexual abuse, one count of sexual abuse of a ward, and one count of deprivation of rights under color of law, arising from his sexual abuse of an FDC inmate under his authority.
The defendant was charged with those offenses by indictment in May of this year.
As detailed in court filings and statements, in the early morning hours of July 6, 2024, Jefferson entered the cell of an inmate at the FDC and forced the victim to engage in a sexual act, resulting in bodily injury to the victim. While acting under color of law, Jefferson willfully deprived the victim of her right not to be subjected to cruel and unusual punishment, a right secured and protected by the Constitution and laws of the United States, which includes the right to be free from sexual abuse by a correctional officer.
Jefferson has been suspended from his position by the Bureau of Prisons.
He is scheduled to be sentenced on April 7 and faces a maximum possible term of life imprisonment.
This case was investigated by the Department of Justice Office of Inspector General and is being prosecuted by Assistant United States Attorney Meghan Claiborne Bisio.
Eleven TdA Members Indicted in New Mexico on RICO Conspiracy and Violent ActsRead the Press Release
ALBUQUERQUE – Federal prosecutors in New Mexico have indicted 11 alleged members and leaders of the violent Venezuelan gang Tren de Aragua 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.
According to court documents, Henderson Yofre Mavo Finol, 39, and Adan Jose Ramirez Sanchez, 38, both Venezuelan nationals illegally present in the U.S., are alleged leaders of the Tren de Aragua (TdA) enterprise who directed acts of violence to maintain and increase their positions within the organization. On or about June 16, 2024, Mavo Finol and Ramirez Sanchez, allegedly directed the kidnapping of a victim identified as John Doe 1. Hagy Jose Barrios Rojano, 31, a Colombian national illegally present in the U.S., carried out the kidnapping by luring him to an apartment at the Peaks at Sandia View complex in Albuquerque.
Once inside the apartment, Leonel Arquimedes Bustamante Sanchez, 27, Yefeso Rafael Colina Quiroz, 26, Maikol David Aponte Ramos, 26, Ichiro Eduardo Yamawaki Berrio, 22, Yorvis Michel Carrascal Campo, 26, all Venezuelan nationals illegally present in the U.S., and other TdA members allegedly restrained and assaulted John Doe 1. During the assault, Bustamante Sanchez allegedly struck John Doe 1 in the head and face with a firearm, rendering him incapacitated.
After John Doe 1 was restrained, TdA members at the apartment allegedly placed a phone call to Mavo Finol, who conferenced in Ramirez Sanchez and other TdA leaders and associates, located in the United States and abroad. During this call, the defendants allegedly interrogated John Doe 1 about his loyalty to TdA and his suspected connections to rival gangs. Following the interrogation, a TdA leader participating in the call allegedly ordered that John Doe 1 be killed.
Acting on that order, Colina Quiroz, Yamawaki Berrio, Aponte Ramos, Carrascal Campo, and Milton Jesus Lopez Guedes, 23, a Venezuelan national illegally present in the U.S., allegedly strangled John Doe 1 until he died. After the killing, TdA members allegedly photographed the victim’s body and sent the images to Mavo Finol and other TdA leaders to confirm that the murder had been carried out as directed.
Following the murder, Antoni Alfredo Herrera Montanez, 27, a Venezuelan national illegally present in the U.S., allegedly obtained luggage to transport the victim’s body and later obtained cleaning supplies to help conceal the crime. Colina Quiroz, Aponte Ramos, and Carrascal Campo allegedly cleaned the apartment to remove evidence of the killing. Between June 16 and June 17, 2024, Colina Quiroz and Ron Saez allegedly searched for a burial site, obtained shovels, shared a digital map location with other TdA members, and transported the victim’s body in a suitcase using a red Chevrolet Sonic owned by Herrera Montanez. Colina Quiroz, Aponte Ramos, Barrios Rojano, Carrascal Campo, Lopez Guedes, and Ron Saez allegedly buried John Doe 1 in a remote location within the District of New Mexico.
The indictment further alleges that Ramirez Sanchez was directly involved in an armed confrontation at an apartment complex in Aurora, Colorado, on or about August 18, 2024, during which rival groups exchanged gunfire and a second victim, John Doe 2, was killed.
In addition to the violent crimes, Colina Quiroz is charged with possessing ammunition in Albuquerque in February 2025. Aponte Ramos and Herrera Montanez are charged with possessing firearms, extended magazines, ammunition, controlled substances including cocaine, ketamine, methamphetamine, MDMA, fentanyl, and marijuana, materials used to manufacture tusi, a narcotic drug popular in Venezuela which typically contains a mixture of controlled substances, including methamphetamine, cocaine, and fentanyl, and is typically manufactured to be pink in color, and fraudulent immigration and identification documents.
Henderson Yofre Mavo Finol, Adan Jose Ramirez Sanchez, Hagy Jose Barrios Rojano and Leonel Arquimedes Bustamante Sanchez are charged with conspiracy to conduct racketeering activity, murder in aid of racketeering, kidnapping in aid of racketeering and drug trafficking conspiracy. If convicted, they face up to life in prison.
Yefeso Rafael Colina Quiroz, Ichiro Eduardo Yamawaki Berrio, Maikol David Aponte Ramos, Antoni Alfredo Herrera Montanez, Yorvis Michel Carrascal Campo, Milton Jesus Lopez Guedes and Yhon Deivis Ron Saez are charged with conspiracy to conduct racketeering activity, murder in aid of racketeering and drug trafficking conspiracy. If convicted, they face up to life in prison.
Acting U.S. Attorney Ryan Ellison made the announcement today on behalf of the Homeland Security Task Force.
Assistant U.S. Attorneys Timothy Trembley, Nora Wilson and Randy Castellano are prosecuting the case along with Deputy Director Jeremy Franker and Trial Attorney Jason Harley from the Department of Justice’s Joint Task Force Vulcan (JTFV). The Justice Department’s Office of International Affairs and the Criminal Division’s Office of Judicial Attaché in Bogotá, Colombia, provided significant assistance.
JTFV 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 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.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Region II CORE 7 is comprised of agents and officers from Homeland Security Investigations (HSI), the Federal Bureau of Investigations (FBI), the Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Internal Revenue Service (IRS), Customs and Border Protection – Office of Field Operations (OFO), U.S. Border Patrol (USBP) and Air and Marine (AMO), Office of Professional Responsibility (OPR), United States Department of the Interior – Bureau of Land Management (BLM), Joint Task Force North (JTF-N), United States Postal Inspection Service (USPIS), United States Marshal Service (USMS), Department of State, Bureau of Diplomatic Security (DSS), U.S. Citizenship and Immigration Services (USCIS), Texas Department of Public Safety (TXDPS), El Paso Police Department (EPPD), New Mexico State Police (NMSP), West Texas / New Mexico High Intensity Drug Trafficking Areas (HIDTA), Albuquerque Police Department, New Mexico Sixth Judicial District, Las Cruces/Dona Ana County Metro Narcotics Agency, and the prosecution is being led by the Office of the United States Attorney for the Districts of Western Texas and New Mexico.
Indictments and criminal complaints are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
View the Indictment (TdA).pdf
DOJ Announcement: justice.gov/opa/pr/justice-department-highlights-nationwide-crackdown-tren-de-araguaSDTX: justice.gov/usao-sdtx/pr/tren-de-aragua-senior-leadership-charged-terrorism-and-international-drug-distribution
SDNY: justice.gov/usao-sdny/pr/leader-tren-de-aragua-charged-manhattan-federal-court-racketeering-terrorism-drug
DCO: justice.gov/usao-co/pr/alleged-tren-de-aragua-leaders-indicted-multiple-charges-including-rico
DNE: justice.gov/usao-ne/pr/tren-de-aragua-members-and-leaders-indicted-multi-million-dollar-atm-jackpotting-scheme
Effingham County man sentenced to 12 years in federal prison for financially exploiting an elderRead the Press Release
BENTON, Ill. – A district judge sentenced an Effingham County man to 12 years’ imprisonment after he admitted to exploiting an 89-year-old man out of more than $400,000.
Edward L. Stief, Jr., 42, pleaded guilty to one count of wire fraud, one count of mail fraud and one count of unlawful monetary transactions in criminal derived property. The judge ordered him to pay $411,773.51 in restitution.
“Not only did Stief manipulate his victim into cashing life insurance policies and draining his bank accounts, but he also convinced the man to leave the care of a nursing home where he was harmed after being isolated,” said U.S. Attorney Steven D. Weinhoeft. “This 12-year prison sentence sends a clear message that we will protect vulnerable populations against predators who would prey upon them.”
According to court documents, Stief met the victim in May 2023 after becoming acquainted with him while offering lawn care and landscaping services. Shortly thereafter, Stief used several misrepresentations to convince the victim to appoint him as his Financial and Healthcare Power of Attorney.
"The defendant in this case didn't just steal money; he systematically targeted an individual's life under the guise of care and friendship. By exploiting the legal authority of a Power of Attorney for personal gain, he violated the most fundamental level of trust,” said FBI Springfield Special Agent in Charge, Christopher J.S. Johnson. “Removing predators like this from our neighborhoods is essential to making our community a safer place for everyone, especially our seniors.”
After becoming the victim’s Power of Attorney, Stief became a signatory on the victim’s bank accounts. In August 2023, he talked the victim into cashing out his life insurance policies and deposited most of the victim’s money into Stief’s personal bank accounts. Over the course of the next several months, Stief spent the entirety of the victim’s life savings on himself. In addition, Stief also took the majority of the victim’s personal items including his gold coin collection, gold necklaces, guns and watches.
In October 2023, Stief persuaded the victim to leave a nursing home facility and move into his full-time care. Under Stief’s supervision, the victim was not cared for and his medical needs were not met.
The FBI Springfield Field Office and the Effingham Police Department contributed to the investigation. Assistant U.S. Attorney Kathleen Howard prosecuted the case.
The National Elder Fraud Hotline is a service from the U.S. Department of Justice that helps victims over 60 years report crimes and access resources. The hotline is available Monday through Friday, 10 a.m. until 6 p.m. ET, at (833) 372-8311 or (833) FRAUD-11. Callers can remain anonymous, and translation services are available.
Dunnsville man sentenced to over six years in prison for federal drug trafficking and firearm convictionRead the Press Release
RICHMOND, Va. – A Dunnsville man was sentenced yesterday to six years and eight months in prison for distribution of methamphetamine and sale of a firearm to a convicted felon.
According to court documents, during seven controlled buys conducted by law enforcement from Jan. 16, 2024, to Feb. 25, 2025, Brian Keith Anderson, 48, distributed a total of 117.29 grams of methamphetamine. During a controlled buy conducted on June 14, 2024, in addition to 4.85 grams of methamphetamine, Anderson sold a handgun to an individual he knew was a convicted felon.
On March 5, investigators searched Anderson’s residence and vehicle and recovered $1,160, nine firearms, firearm magazines and ammunition, two digital scales containing methamphetamine residue, and one square tab containing LSD.
“Brian Anderson endangered his community for personal profit, trafficking dangerous narcotics and selling a firearm to a convicted felon,” said Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia. “This investigation and prosecution removed a supplier of guns and drugs from our streets, and the Eastern District of Virginia will continue to hold accountable those who threaten public safety.”
“This sentencing reflects the joint efforts of multiple law enforcement agencies committed to protecting our communities,” said Ian Kaufmann, Special Agent in Charge of the FBI’s Richmond Field Office. “Dangerous drugs like methamphetamine have no place in our neighborhoods. FBI Richmond is proud to work alongside our partners to hold accountable those who distribute drugs and endanger our welfare.”
“Virginia State Police is grateful for the combined efforts in securing this important conviction. We are always proud to work with our federal partners and will continue to do so,” said Col. Matthew D. Hanley, Superintendent of Virginia State Police. “Public safety is our top priority and that includes doing everything we can to ensure dangerous drugs and drug traffickers are off Virginia’s streets."
Special Assistant U.S. Attorney Eric Gilliland, an Assistant Attorney General with the Virginia Attorney General’s Office, and Assistant U.S. Attorney Angela Mastandrea prosecuted the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood (PSN).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:25-cr-64.
Dominican National Pleads Guilty to Conspiring to Distribute FentanylRead the Press Release
Dominican National Pleads Guilty to Conspiring to Distribute Fentanyl
CONCORD – A Dominican man pleaded guilty today in federal court to conspiring to distribute fentanyl, U.S. Attorney Erin Creegan announces.
Marcos Alcantara Hernandez, 30, a citizen of the Dominican Republic, pleaded guilty in federal court in Concord to one count of conspiracy to distribute 400 grams or more of fentanyl. U.S. District Court Judge Landya B. McCafferty scheduled Hernandez’s sentencing for April 6, 2026.
According to the charging documents and statements made in court, in May 2021, Hernandez conspired with Kevin Rodriguez and others to sell approximately 500 grams of fentanyl to a customer in New Hampshire. On May 19, 2021, a DEA cooperating source (“CS”) negotiated the sale of fentanyl with an individual the CS knew as “NH Dude.” After the CS and “NH Dude” reached an agreement on the quantity, price, and location of the sale, Hernandez coordinated with Rodriguez and others to obtain the drugs from a supplier. After Rodriguez obtained the fentanyl, Hernandez texted Rodriguez the meet location in Portsmouth and followed Rodriguez to New Hampshire where Rodriguez sold the drugs to the CS.
The charge of conspiracy to distribute a controlled substance carries a sentence of up to 20 years’ incarceration, not less than 3 years of supervised released, and a fine up to $1,000,000. 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 Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Matthew T. Hunter is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Domestic Abuser and Drug User Who Illegally Possessed a Firearm Sentenced to Federal PrisonRead the Press Release
Brandon Mitchell, 29, from Mason City, Iowa, was sentenced December 18, 2025, in federal court in Sioux City, Iowa. Mitchell pled guilty April 30, 2025, to being a prohibited person in possession of a firearm. Mitchell was previously convicted twice for domestic abuse assault in the Iowa District Court for Cerro Gordo County. The convictions prevented Mitchell from legally possessing firearms.
Evidence at the plea and sentencing hearings showed that Mitchell had two prior convictions for misdemeanor domestic violence and was an unlawful user of marijuana. Evidence further showed that on February 24, 2024, when Mitchell possessed the 9mm pistol, he was under state felony indictment for attempted murder, intimidation with a dangerous weapon, and possession of a firearm by a domestic abuser. Mitchell also admitted that during a search warrant at his residence he discarded the 9mm pistol out of a bedroom window in an attempt to avoid being found in possession of a firearm.
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.
Sentencing was held before United States District Court Judge Leonard T. Strand. Mitchell was sentenced to 57 months’ imprisonment and must serve a 2-year term of supervised release following imprisonment. There is no parole in the federal system. Mitchell remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Division of Narcotic Enforcement, and Mason City Police Department and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-3038. Follow us on X @USAO_NDIA.
Doctor Indicted for Orchestrating $45M Botox Fraud Scheme Targeting MedicareRead the Press Release
A federal grand jury in California returned a superseding indictment yesterday charging a doctor for allegedly submitting more than $45 million in false and fraudulent claims to Medicare for Botox injections and for obstructing a criminal investigation by allegedly submitting falsified medical records in response to a grand jury subpoena.
According to court documents, Violetta Mailyan, 45, of Los Angeles County, owned and operated Healthy Way Medical Center (Healthy Way), which allegedly billed Medicare for Botox injections that were medically unnecessary and never provided, including for injections on dates when Mailyan was traveling internationally, on dates when the Medicare beneficiary who supposedly received the services was traveling internationally, on dates when the Medicare beneficiary who supposedly received the services was in federal prison, and on dates when Healthy Way was closed.
Mailyan is charged with nine counts of wire fraud and three counts of obstructing a criminal investigation of health care offenses. If convicted, she faces a maximum penalty of 20 years in prison on each wire fraud count and five years in prison on each obstruction count.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Assistant Director in Charge Akil Davis of FBI’s Los Angeles Field Office made the announcement.
FBI and HHS-OIG are investigating the case.
Trial Attorney Sandor Callahan of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Department of Justice Agents Seize $8.5 Million in Cryptocurrency and Disrupt Investment Fraud SchemeRead the Press Release
Adobe Stock ImageRALEIGH, N.C. – Federal agents seized nearly $8.5 million worth of Tether, a cryptocurrency pegged to the U.S. dollar. Investigators traced the seized funds to a cryptocurrency address allegedly linked to money stolen from victims of cryptocurrency investment scams, commonly known as a “pig butchering scheme."
“By seizing these stolen funds, we strike at the heart of organized criminals who use scams to prey on hardworking, innocent citizens,” said E.D.N.C. U.S. Attorney Ellis Boyle. “Our office will continue working with the FBI and other law enforcement partners to disrupt fraud schemes, protect victims, and hold bad guys who exploit the promise of new technologies to commit old crimes accountable.”
“This substantial cryptocurrency seizure is an example of the FBI’s commitment to fight for victims in this ever changing cyber-fraud landscape,” said FBI Charlotte Special Agent in Charge James C. Barnacle Jr. “One victim dipped into a child’s college savings and a spouse's retirement fund before being locked out of the account, losing hundreds of thousands of dollars in an instant. This seizure helps claw back the money that rightly belongs to victims.”
According to court filings, criminal actors approached and recruited victims by disguising themselves to build trust through a business or romantic relationship. Fraudsters typically sent victims an innocuous and misleading text message or an unsolicited message to a social media account or online dating profile. Once they established contact, scammers claimed they could help victims make large profits trading cryptocurrency. Then the criminals steered victims to fictitious cryptocurrency trading platforms that gave the false appearance of being legitimate. These fake platforms displayed fabricated investment portfolios with abnormally large returns to entice victims to invest more money.
When victims later attempted to withdraw funds, the fraudsters refused and froze the accounts. In some cases, the criminals demanded victims pay a “tax” or “penalty” before accessing their money. Some fraudsters even posed as a “cryptocurrency recovery firm,” offering to retrieve lost investments for an upfront fee, further compounding the injury.
Victims unknowingly sent their investments to wallets controlled by these scammers rather than to accounts in their own names. Scammers immediately transferred those funds to several other wallets to hide the nature, source, and ownership of the money. Agents and analysts from the FBI traced those funds into and through several cryptocurrency wallets used as a part of the fraud and money laundering scheme, recovering all funds subject to seizure.
Since 2024, the FBI has partnered with the U.S. Attorney’s Office for the Eastern District of North Carolina to seize over $15 million on behalf of victims of cryptocurrency investment fraud. Other seizures include:
$2.6 million seized on behalf of multiple victims, including a 61-year-old man in Spring Hope and a 50-year-old man in Raleigh. Each victim believed he was in a romantic relationship with the fraudster, exchanging messages via the WhatsApp platform.
$4.99 million seized on behalf of multiple victims, including a 67-year-old man from Angier. This victim also believed he was in a romantic relationship with the fraudster, using the WhatsApp and Telegram platforms to communicate.
Avoid falling victim to cryptocurrency or romance scam fraud by following these steps:
If someone you don’t know contacts you online or by phone, never give any personal information. In fact, the FBI advises you should always ignore a random stranger’s attempt to connect or befriend you, if you don’t already know them in real life.
Do not invest money based on advice from someone you’ve met solely online.
Verify the validity of any investment opportunity or cryptocurrency investment with your own independent research, separate and apart from what the unknown scammer tells you.
If you already invested funds and believe you are or may be a victim of a scheme, do not pay any additional fees or taxes to withdraw your money. Just cap your losses.
Do not pay for services that claim to recover lost funds. It’s a trap.
Be on the lookout for domain names that impersonate legitimate financial institutions, especially cryptocurrency exchanges.
Misspelled URLs, often with just a slight deviation, like an extra letter or missing one letter, from the actual financial institutions’ real website, may be, indeed almost certainly are, fake.
If it sounds too good to be true, it is. There is no such thing as a get-rich-quick scheme. Certainly not from a random stranger you never met in person who targeted you on the internet.
The Department of Justice acknowledges Tether for its assistance in effectuating the transfer of these assets.
If you are a victim of a cryptocurrency scam, or other scam involving the use of the Internet, please file a report with the IC3 at www.ic3.gov and with the FTC at www.reportfraud.ftc.gov.
Customs Broker Sentenced to More Than 4 Years in Federal Prison for Defrauding Clients Out of Millions of Dollars and Cheating on TaxesRead the Press Release
LOS ANGELES – A Riverside County man and customs broker was sentenced today to 51 months in federal prison for defrauding his clients – businesses who ship goods into the United States from foreign countries – out of more than $5 million, including after he already had been indicted on federal fraud charges, and to committing more than $1 million in tax evasion.
Frank Seung Noah, 63, of Corona, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $7,579,141 in restitution.
Noah pleaded guilty on February 7 to one count of tax evasion and two counts of wire fraud.
Noah owned and operated Comis International Inc., a Cerritos-based logistics and supply-chain company, which offered customs import brokerage services on behalf of businesses. From 2007 to 2019, Comis was a customs import broker for Daiso, a Japan-based variety and value store with stores in the United States, including Southern California.
During that time, Noah provided Daiso with false customs duty forms and invoices in support of fraudulent requests for reimbursement for duty fees. These forms differed materially from those Noah submitted to U.S. Customs and Border Protection (CBP) and inflated the total amounts, resulting in Daiso overpaying Noah nearly $3.4 million.
After Noah was indicted for defrauding Daiso in 2022, he continued to defraud his other clients out of more than $2 million using a different fraud scheme. Noah defrauded two other client companies by invoicing and receiving funds from the two victim companies, and then simply pocketing the funds instead of paying the customs duties to CBP. After CBP notified the victim clients of their unpaid customs duties, they asked Noah about the unpaid fees, and he sent the victim clients altered bank statements falsely reflecting that he had paid the customs duties.
Noah also willfully evaded payment of federal taxes resulting in a loss to the IRS of approximately $2.4 million, with penalties and interest continuing to accrue. After agreeing with the IRS that he owed more than $1 million in taxes in 2014, Noah actively avoided IRS attempts to collect the amount owed. This included paying for two homes in his former girlfriend’s name, using check cashing businesses to avoid IRS levies of his bank accounts, lying to IRS collection agents, and spending thousands of dollars on country club memberships, travel, and golf purchases.
IRS Criminal Investigation and Homeland Security Investigations investigated this matter with the assistance of United States Customs and Border Protection.
Assistant United States Attorneys Nandor F.R. Kiss and Robert J. Keenan of the Orange County Office prosecuted this case.
Crownpoint Man Sentenced for Possession of Child PornRead the Press Release
ALBUQUERQUE – A Crownpoint man was sentenced to 15 years in prison after admitting he knowingly received and possessed hundreds of images and videos depicting the sexual abuse of young children.
There is no parole in the federal system.
According to court records, the case originated from an FBI investigation into a convicted sex offender who was distributing child sexual abuse material (CSAM) and attempting to engage in sexual acts with children. During that investigation, agents identified Blayne Ashley, 36, as an individual who exchanged CSAM and engaged in graphic online discussions about sexually exploiting children. Ashley sent multiple images of CSAM depicting the sexual abuse of young children, including victims as young as 4 to 9 years old. He also discussed his desire to engage in sexual activity with minors, including offering access to an underage relative.
Further review revealed that Ashley communicated with multiple individuals about child sexual exploitation using various online platforms, including Facebook, Discord, Kik, and others. In one conversation, he posed as an adult female with a young daughter and discussed ways to sexually abuse a child.
On June 7, 2024, FBI agents executed a search warrant at Ashley's residence in Crownpoint. Initially, Ashley provided a false name to agents. A forensic examination of his primary cellphone revealed 77 confirmed images and 23 videos of CSAM, including depictions of children between 3 and 8 years old, as well as hundreds of age-difficult images and videos.
Ashley pled guilty to receipt of child pornography and possession of child pornography. Upon his release from prison, Ashley will be subject to five years of supervised release and must register as a sex offender.
Acting U.S. Attorney Ryan Ellison and Justin A. Garris, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Federal Bureau of Investigation’s Albuquerque Field Office investigated this case. Assistant U.S. Attorney Jesse Pecoraro prosecuted the case as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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 Justice.gov/PSC.
Council Bluffs Man Sentenced to 77 Months in Federal Prison for Firearms Charge While on Federal Supervised ReleaseRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today, December 18, 2025, to 77 months in federal prison for possessing firearms as a felon.
According to public court documents, Cornelius Lavaughn David, 37, possessed two loaded firearms, which were recovered during a traffic stop in April 2025. One of the firearms David possessed had an extended magazine loaded with 25 rounds of ammunition. David was also in possession of methamphetamine and Xanax.
At the time of the traffic stop, David was on federal supervised release for a 2023 conviction for possessing a firearm as a felon. He had been released from prison in November 2024. David was sentenced to 18 months imprisonment for violating his terms of supervised release, consecutive to the 77-month sentence.
After completing his term of imprisonment, David will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Council Bluffs Man Sentenced to 77 Months in Federal Prison for Firearms Charge While on Federal Supervised ReleaseRead the Press Release
COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today, December 18, 2025, to 77 months in federal prison for possessing firearms as a felon.
According to public court documents, Cornelius Lavaughn David, 37, possessed two loaded firearms, which were recovered during a traffic stop in April 2025. One of the firearms David possessed had an extended magazine loaded with 25 rounds of ammunition. David was also in possession of methamphetamine and Xanax.
At the time of the traffic stop, David was on federal supervised release for a 2023 conviction for possessing a firearm as a felon. He had been released from prison in November 2024. David was sentenced to 18 months imprisonment for violating his terms of supervised release, consecutive to the 77-month sentence.
After completing his term of imprisonment, David will be required to serve a three-year term of supervised release. There is no parole in the federal system.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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.
Connecticut Resident Sentenced to 37 Months in Prison for Fraudulently Obtaining $1.2 Million in Unclaimed PropertyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Henry J. White, Jr, age 75, of Connecticut, was sentenced by United States District Judge Karoline Mehalchick to 37 months in prison for submitting false and fraudulent claims for unclaimed property to state treasuries.
According to United States Attorney Brian D. Miller, White, along with his sister and codefendant, Patricia A. White, together received over $1.2 million in false and fraudulent claims for unclaimed property from state treasuries around the United States. Henry J. White, Jr., using the names of corporate entities with which he was not affiliated and which he had no lawful authority to use, applied for and received unclaimed property from state treasuries throughout the United States. This scheme took place over the course of approximately ten years, from around 2013 until around 2022. State treasuries, relying on the certifications provided by Henry J. White, Jr., under penalty of perjury, issued payment checks, which were generally sent by U.S. mail to the shared home address of both defendants.
From there, the Whites deposited and cashed these fraudulently obtained payment checks, and these funds were then used for personal expenses, including for mortgage payments for their shared home in Old Greenwich, Connecticut.
Patricia A. White’s sentencing hearing, which has yet to be scheduled, will occur at a later date.
In addition to the term of imprisonment, Judge Mehalchick also ordered that White pay $1,208,271 in total restitution to approximately 30 state treasuries.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ravi Romel Sharma prosecuted the case.
# # #
Connecticut Man Sentenced to 30 Months’ Imprisonment for Role in $7.8 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – A Connecticut man was sentenced yesterday to 30 months’ imprisonment for his role in a multimillion-dollar durable medical equipment (DME) health care fraud and kickback scheme, Senior Counsel Philip Lamparello announced.
Jesse Foote, 60, of Fairfield, Connecticut, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a two-count information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
From December 2017 to March 2021, Foote conspired with overseas telemarking call centers, DME suppliers, telemedicine companies, and doctors to submit fraudulent claims to health care benefit programs, including Medicare and TRICARE, through a circular scheme of kickbacks and bribes. Foote controlled a marketing company through which he purchased patient “leads” from overseas telemarking companies. The leads consisted of information about Medicare and other beneficiaries and pre-written doctors’ orders for DME. The telemarketing call centers targeted Medicare beneficiaries and others with health insurance to persuade them to accept DME, including orthotic braces, without regard to medical necessity. Foote paid bribes and kickbacks to telemedicine companies, which in turn paid bribes and kickbacks to doctors, to obtain doctors’ orders for DME based on the leads. The doctors often approved the DME orders without having any contact with the beneficiary and without making a bona fide assessment that the DME was medically necessary. Foote then sold the signed doctors’ orders to others with whom he had kickback arrangements. The doctors’ orders were ultimately submitted to DME suppliers, including DME suppliers controlled by Foote, which submitted fraudulent claims for reimbursement to health care benefit programs including Medicare, TRICARE, and private insurance companies.
In total, Foote and his co-conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling more than $7.8 million for DME.
In addition to the prison term, Judge Salas sentenced Foote to three years of supervised release and ordered him to pay $7,878,991.56 in restitution.
Senior Counsel Lamparello credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Christopher M. Silvestro, with the investigation.
The government is represented by Assistant U.S. Attorney Katherine M. Romano, Chief of the General Crimes Unit in Newark.
###
Defense counsel: Charles Alvarez, Esq.
Columbia Man Indicted on Hate Crime and Firearm ChargesRead the Press Release
COLUMBIA, S.C. – A federal grand jury in Columbia, South Carolina returned an indictment charging Jonathan Andrew Felkel, 34, with violating the housing rights of his black neighbor, J.M., and for using a firearm in the commission of a crime of violence.
According to court documents, on July 17, Felkel, while driving into the gated community where both he and J.M. lived, fired a gun and shouted at J.M., “You better keep running, boy!” while J.M. was standing at the gate to the community.
If convicted, Felkel faces a maximum penalty of 10 years in prison on the housing charge, and an additional 10 years in prison on the firearms charge.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division; U.S. Attorney Bryan P. Stirling for the District of South Carolina; and Special Agent in Charge Kevin Moore of the FBI Columbia Field Office made the announcement.
The FBI Columbia Field Office and the Richland County Sheriff’s Department investigated the case. Assistant U.S. Attorneys Elle Klein and Lamar Fyall of the District of South Carolina and Trial Attorney Sarah Armstrong and Special Legal Counsel Mark Blumberg of the Civil Rights Division’s Criminal Section are prosecuting the case.
All charges in the complaint are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.###
Co-Founder of Paycheck Protection Program Lender Service Provider Sentenced for $65M COVID-19 Relief Fraud SchemeRead the Press Release
A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendant was also ordered to pay over $66 million in restitution.
“This defendant orchestrated one of the nation’s largest schemes to defraud the Paycheck Protection Program during a global pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Stealing money from federal relief programs is stealing money contributed by taxpayers to help individuals and small businesses survive economic hardship. This sentence sends a clear message that people who exploit government programs to enrich themselves will be brought to justice.”
“In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his own pockets via his massive fraud scheme,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “He and others who criminally exploit federal funding will be prosecuted to the fullest extent in our district.”
“Abusing government programs and exploiting a national emergency will never be tolerated,” said Acting Assistant Director Rebecca Day of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s commitment to holding accountable those who defraud the government in an effort to benefit themselves.”
“Nathan Reis orchestrated a massive fraud that siphoned tens of millions of dollars from a program meant to save small businesses during a national emergency,” said Acting Deputy Chief Justin Campbell of IRS Criminal Investigation. “Today’s sentence is a testament to the strength of federal partnership and coordinated investigative work. The women and men of IRS-CI remain committed to investigating complex financial crimes and ensuring that those who abuse government programs for personal profit will face justice.”
“This sentencing underscores the SBA Office of Inspector General’s unwavering commitment to holding accountable those who exploit taxpayer funds for personal gain,” said Deputy Inspector General Sheldon Shoemaker. “At a time when these programs were designed to support small businesses and workers facing unprecedented hardship, fraud of this magnitude undermines public trust and diverts critical resources from those who truly needed them. We will continue to work closely with our law enforcement partners to investigate and pursue those who abuse SBA programs.”
“This sentencing holds accountable and brings to justice a fraudster who stole millions of taxpayer dollars intended to help small business owners for their own personal gain,” said Acting Special Agent in Charge Don Daley of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Western Region. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to achieve this result.”
According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications to receive loan funds for which they were not eligible. In April 2020, Reis co-founded Blueacorn, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrowers fees based on a percentage of the funds received. In total, Reis and his co-conspirators processed over 530 fraudulent loans causing over $65 million in losses.
In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud.
The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and SBA Office of Inspector General investigated the case.
Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section; Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section; and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Co-Founder of Paycheck Protection Program Lender Service Provider Sentenced for $65M COVID-19 Relief Fraud SchemeRead the Press Release
A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendant was also ordered to pay over $66 million in restitution.
“This defendant orchestrated one of the nation’s largest schemes to defraud the Paycheck Protection Program during a global pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Stealing money from federal relief programs is stealing money contributed by taxpayers to help individuals and small businesses survive economic hardship. This sentence sends a clear message that people who exploit government programs to enrich themselves will be brought to justice.”
“In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his own pockets via his massive fraud scheme,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “He and others who criminally exploit federal funding will be prosecuted to the fullest extent in our district.”
“SBA was proud to support the Justice Department in their work to bring one of our nation’s largest pandemic fraudsters to justice," said Small Business Administration (SBA) Administrator Kelly Loeffler. "At the SBA, we are tirelessly working to hold criminal actors accountable and claw back the taxpayer dollars that were stolen from honest American families and small business owners.”
“Abusing government programs and exploiting a national emergency will never be tolerated,” said Acting Assistant Director Rebecca Day of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s commitment to holding accountable those who defraud the government in an effort to benefit themselves.”
“Nathan Reis orchestrated a massive fraud that siphoned tens of millions of dollars from a program meant to save small businesses during a national emergency,” said Acting Deputy Chief Justin Campbell of IRS Criminal Investigation. “Today’s sentence is a testament to the strength of federal partnership and coordinated investigative work. The women and men of IRS-CI remain committed to investigating complex financial crimes and ensuring that those who abuse government programs for personal profit will face justice.”
“This sentencing underscores the SBA Office of Inspector General’s unwavering commitment to holding accountable those who exploit taxpayer funds for personal gain,” said Deputy Inspector General Sheldon Shoemaker. “At a time when these programs were designed to support small businesses and workers facing unprecedented hardship, fraud of this magnitude undermines public trust and diverts critical resources from those who truly needed them. We will continue to work closely with our law enforcement partners to investigate and pursue those who abuse SBA programs.”
“This sentencing holds accountable and brings to justice a fraudster who stole millions of taxpayer dollars intended to help small business owners for their own personal gain,” said Acting Special Agent in Charge Don Daley of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Western Region. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to achieve this result.”
According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications to receive loan funds for which they were not eligible. In April 2020, Reis co-founded Blueacorn, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrowers fees based on a percentage of the funds received. In total, Reis and his co-conspirators processed over 530 fraudulent loans causing over $65 million in losses.
In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud.
The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and SBA Office of Inspector General investigated the case.
Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section; Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section; and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Clarinda Man Sentenced to Nine Years in Federal Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – A Clarinda man was sentenced today, December 18, 2025, to nine years in federal prison for receipt of child pornography.
According to public court documents, the National Center for Missing and Exploited Children received CyberTips that an account, later determined to be associated with Rodney Ray Biggerstaff, 54, uploaded files containing child sexual abuse material. Law enforcement seized electronic devices during a search of Biggerstaff’s Clarinda residence. A forensic examination of a seized electronic device revealed images and videos containing child sexual abuse material depicting mostly prepubescent females.
After completing his term of imprisonment, Biggerstaff will be required to serve a five-year term of supervised release. There is no parole in the federal system. Biggerstaff was also ordered to pay $3000 in restitution.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Department of Public Safety-Division of Criminal Investigation-Internet Crimes Against Children Task Force and the Federal Bureau of Investigation-Child Exploitation Task Force, with assistance from the Clarinda Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Clarinda Man Sentenced to Nine Years in Federal Prison for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, Iowa – A Clarinda man was sentenced today, December 18, 2025, to nine years in federal prison for receipt of child pornography.
According to public court documents, the National Center for Missing and Exploited Children received CyberTips that an account, later determined to be associated with Rodney Ray Biggerstaff, 54, uploaded files containing child sexual abuse material. Law enforcement seized electronic devices during a search of Biggerstaff’s Clarinda residence. A forensic examination of a seized electronic device revealed images and videos containing child sexual abuse material depicting mostly prepubescent females.
After completing his term of imprisonment, Biggerstaff will be required to serve a five-year term of supervised release. There is no parole in the federal system. Biggerstaff was also ordered to pay $3000 in restitution.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Department of Public Safety-Division of Criminal Investigation-Internet Crimes Against Children Task Force and the Federal Bureau of Investigation-Child Exploitation Task Force, with assistance from the Clarinda Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Civil Rights Division Obtains Settlement with a Michigan IT Company for Discriminating Against U.S. WorkersRead the Press Release
The United States Department of Justice’s Civil Rights Division announced that it has secured a settlement agreement with Tekshapers Inc., (Tekshapers), a Michigan company that provides IT recruitment and staffing services, to address allegations that the company violated the Immigration and Nationality Act (INA) when it advertised employment opportunities favoring temporary employment-based visa holders over U.S. workers.
“Recruitment companies cannot place unlawful restrictions based on citizenship status,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “U.S. workers are highly skilled and deserve equal access to all jobs.”
This settlement is the fourth since the Department re-launched its Protecting U.S. Workers Initiative to enforce the law against companies that illegally discriminate against U.S. workers in favor of those with employment visas. Under the settlement, Tekshapers will pay civil penalties to the United States and financially compensate a U.S. citizen applicant who was not given fair consideration for employment. Tekshapers also has agreed to undergo training, revise its employment policies, and agreed not to limit positions based on citizenship status without a lawful reason.
The public can call IER’s free hotline at 1-800-255-7688 for workers or at 1-800-255-8155 for employers (1-800-237-2515, TTY for hearing impaired) for informal assistance between 9am and 5pm Eastern Time, Monday - Friday; sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit www.justice.gov/ier.
Chief Executive Officer of Tax Preparation Firm Charged with Federal Tax OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced today the unsealing of an Indictment charging STEVEN HOLTZ, ISRAEL PELLOT, and ALTON SCOTT with conspiracy to defraud the United States and aiding and assisting in the preparation and filing of false federal tax returns. The charges relate to a tax fraud scheme operated by several tax return preparers of The Holtz Group, Inc. and Zirin Tax Company, Inc., doing business as SL Tax Centers (together, “The Holtz Group” or “Holtz Group”). HOLTZ is the owner and chief executive officer of The Holtz Group and was the leader of the fraudulent scheme in which tax preparers at The Holtz Group, including HOLTZ, PELLOT, and SCOTT, falsified information on Holtz Group clients’ federal income tax returns in order to fraudulently reduce the tax liability of the clients and improperly increase the tax refunds they claimed from the Internal Revenue Service (“IRS”). This, in turn, allowed HOLTZ to charge tax preparation fees that were, at times, tens of thousands of dollars and, in some instances, more than one hundred thousand dollars for certain clients. The case has been assigned to U.S. District Judge Mary Kay Vyskocil.
“As alleged, Steven Holtz led a massive tax fraud scheme that deprived the American people of significant tax revenue,” said U.S. Attorney Jay Clayton. “The false tax returns Holtz and other tax preparers at the Holtz Group are alleged to have filed generated substantial refunds to which clients were not entitled and enormous fees for the firm. According to the indictment, Holtz funded a lavish lifestyle, including homes in Manhattan and East Hampton, at the expense of the tens of millions of honest, hardworking American taxpayers. Our Office will have zero tolerance for fraudsters who steal from the public to enrich themselves.”
“For more than a decade, Holtz used the backdrop of a successful and legitimate tax business to hide a fraud that concealed significant income from the IRS,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr. “Holtz and his cohorts were creative in their alleged scheme, using various deductions and expenses to evade taxes for their clients. While Holtz told his clients they should be happy to pay him rather than pay the government, he failed to remind them that the money to the government means benefits for the American people. Now is the time that they each face justice for their alleged criminal acts.”
As alleged in the Indictment unsealed in Manhattan federal court:[1]
From at least in or about 2014 through at least in or about 2025, HOLTZ, PELLOT, SCOTT, and other co-conspirators executed a fraudulent scheme led by HOLTZ in which they falsified information on Holtz Group clients’ federal income tax returns. Each year, Holtz Group clients—at least some of whom have professional degrees and annual income of hundreds of thousands of dollars—met with Holtz Group personnel at one of the Holtz Group’s offices (or, at times, remotely by videoconference and/or telephone). At these meetings, and during the course of any necessary follow-up discussions, HOLTZ, PELLOT, SCOTT, or other Holtz Group personnel, prepared the clients’ tax returns.
HOLTZ, PELLOT, SCOTT, and others included materially false and fraudulent information on the Holtz Group clients’ tax returns in order to reduce the clients’ tax liabilities or increase their refunds. The false items included on income tax returns for Holtz Group clients included inflated and fictitious deductions, including but not limited to: itemized deductions, such as charitable contributions and unreimbursed employee expenses; business expense deductions; capital losses, such as deductions for bad debt; losses and expenses from rental real estate businesses and unreimbursed partnership expenses; casualty and theft losses; losses from sales of business property; and losses from sales and other dispositions of capital assets. These false items were reported on Schedules A, C, D, and E as well as other tax forms. At times, the defendants also inflated and falsified clients’ income in order to improperly qualify clients for refundable Earned Income Tax Credits and/or fraudulently elected “head of household” filing status for married clients and other clients who did not qualify for that filing status, among other things.
As the owner of The Holtz Group and its affiliated entities, HOLTZ trained PELLOT, SCOTT, and others on how to falsify tax returns to carry out the scheme. For example, HOLTZ instructed PELLOT, SCOTT, and others to urge clients to set up business entities, such as partnerships and S Corporations, through the Holtz Group, for which clients paid additional fees. HOLTZ then directed the return preparers to use these business entities to fraudulently claim additional tax deductions, such as deductions for unreimbursed partnership expenses, meals, travel, gifts, and other expenses.
The Holtz Group based the fees charged to the clients on the amount of purported “tax savings” the firm supposedly generated for clients. HOLTZ used these purported “tax savings” to justify The Holtz Group’s fees, which were as high as tens of thousands or even more than one hundred thousand dollars for certain clients. For example, after billing a fee of $175,000 for preparing a client’s 2021 return, HOLTZ emailed the client explaining that the fee charged “is 25% of the tax savings. Always has been . . . I realize the bill is very high but honestly you sou [sic] should be happy to pay me that rather than paying the government what you owed them . . . [T]he fee is determined by the tax savings, not by your earnings.” In the same exchange, HOLTZ later went on to state: “You really aren’t paying my fee. The IRS is.”
By filing fraudulent returns on behalf of numerous Holtz Group clients, HOLTZ, PELLOT, SCOTT, and others defrauded the IRS of tax revenue and generated significant revenue for The Holtz Group. This significant revenue facilitated HOLTZ’s lavish lifestyle, including use of homes in Manhattan and East Hampton.
* * *
Steven Holtz, 63, of New York, New York, and East Hampton, New York, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 30 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.
Israel Pellot, 50, of Ormond Beach, Florida, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 9 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three years in prison.
Alton Scott, 33, of Brooklyn, New York, is charged with one count of conspiracy to defraud the United States, which carries a maximum sentence of five years in prison, and 13 counts of aiding and assisting in the preparation of false and fraudulent U.S. individual income tax returns, each of which carries a maximum sentence of three 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 defendants will be determined by the judge.
Mr. Clayton praised the investigative work of the IRS-CI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit and the Department of Justice, Criminal Division, Tax Section. Assistant U.S. Attorney Matthew Weinberg, Southern District of New York, and Assistant Deputy Chief Jorge Almonte and Trial Attorney Alexandra K. Fleszar of the Criminal Division’s Tax Section are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description set forth herein, constitute only allegations, and every fact described should be treated as an allegation.