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Thursday 18 September 2025
East Tennessee Man Sentenced to 15 Years for Distribution of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On September 18, 2025, Michael Robert Potter, 38, of Rocky Top, TN, was sentenced to 188 months by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following his imprisonment, Potter will be on supervised release for 10 years and will be required to register with state sex offender registries and comply with special sex offender conditions.
As part of the plea agreement filed with the court, Potter agreed to plead guilty to an indictment charging him with one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(2).
According to filed court documents, from April 2023 to May 2023, investigators with the U.S. Dept. of Homeland Security Investigations – Internet Crimes Against Children (HSI-ICAC) Task Force conducted online investigations into the trafficking of child pornography. This investigation led to the identification of an IP address utilized by Potter which contained numerous files depicting child pornography and child sexual abuse. In October 2023, a federal search warrant was executed which found Potter to be in possession of several pieces of computer equipment which contained over 20,000 images and over 500 videos depicting child pornography and child sexual abuse.
U.S. Attorney Francis M. Hamilton of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by HSI-ICAC and Knoxville Police Department. This investigation was led by HSI-ICAC Task Force Officer Thomas Evans.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about PSC, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click the tab "resources.”
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Derry Man Indicted for Distributing Child Sexual Abuse MaterialsRead the Press Release
CONCORD –A Derry man was indicted for distributing and possessing child sexual abuse material (CSAM), U.S. Attorney Erin Creegan announces.
Joseph Baran, 55, was previously arrested and charged by criminal complaint. He appeared in federal court on August 21, 2025.
According to court documents, Baran was involved in the collection and distribution of CSAM as part of a technically sophisticated, anonymous, online group.
The investigation was led by the FBI’s Headquarter-based Child Exploitation Operational Unit, with assistance from the FBI’s Boston Field Office. Assistant U.S. Attorney Matthew Vicinanzo is prosecuting the case. Trial Attorney Kaylynn Foulon for the Child Exploitation and Obscenity Section at the U.S. Department of Justice provided valuable assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Defendants Charged in First Wave of Housing Stabilization Fraud CasesRead the Press Release
MINNEAPOLIS – Eight defendants have been federally charged with wire fraud for their roles in a massive housing stabilization fraud scheme, announced Acting U.S. Attorney Joseph H. Thompson.
“Today we announce the first wave of charges in a massive fraud in Minnesota’s housing stabilization program,” said Acting U.S. Attorney Joseph H. Thompson. “I want to be clear on the scope of the crisis. What we see are schemes stacked upon schemes, draining resources meant for those in need. It feels never ending. I have spent my career as a fraud prosecutor and the depth of the fraud in Minnesota takes my breath away. The fraud must be stopped.”
The Scheme to Defraud the Housing Stabilization Services Program
As set forth in the charging documents, the defendants devised and carried out schemes to defraud federally funded health care benefits collected within Minnesota’s Housing Stability Services Program. The HSS Program dates back to July 2022, when Minnesota became the first state in the country to offer Medicaid coverage for Housing Stabilization Services. The Program was designed to help people with disabilities, including seniors and people with mental illnesses and substance use disorders, find and maintain housing. Rather than provide such help, the defendants obtained and misappropriated millions of dollars in program funds that were intended as reimbursements for services provided to those people.
The Program permitted reimbursements for four principal kinds of services: (1) housing consultation; (2) housing transition services; (3) housing sustaining services; and (4) moving expenses.
By design, the Program had low barriers to entry for new providers and for beneficiaries. The Program also had minimal requirements for reimbursement. The HSS Program’s low barriers to entry and minimal records requirements for reimbursement combined to make the Program susceptible to fraud.
Before the Program’s inaugural year, the Program was predicted to cost about $2.6 million annually. That proved to be inaccurate. In 2021 alone, the Program paid out more than $21 million in claims. That figure ballooned in the following years: $42 million in 2022, $74 million in 2023, $104 million in 2024. In just the first six months of 2025, the Program paid out another $61 million.
A federal investigation revealed that many Program providers defrauded the system. These providers acquired the names of Program-eligible beneficiaries from facilities like addiction treatment centers. They then used those individuals’ information to submit inflated and fake reimbursement claims. In this fashion, the providers acquired substantial pay-outs of taxpayer money to which they were not entitled. They used those ill-gotten gains for their own enrichment.
United States v. Moktar Aden et al., 25-cr-349 (MJD/JFD)
(Brilliant Minds Services LLC)
- Defendant Moktar Hassan Aden, age 30
- Defendant Mustafa Dayib Ali, age 29
- Defendant Khalid Ahmed Dayib, age 26
- Defendant Abdifitah Mohamud Mohamed, age 27
In April 2022, Aden and his co-defendants, Dayib and Ali completed paperwork to enroll Aden’s company, called Brilliant Minds Services LLC, as an HSS Provider. With Abdifitah Mohamed, those defendants then purported to service individuals in need through Brilliant Minds from an office suite in the Griggs-Midway Building in St. Paul, Minnesota. Mohamed also operated another program provider called Foundation First Services LLC, which has offices in the same building. Through Foundation First, Mohamed claimed to provide Program-reimbursable consultation services to other HSS providers, including Brilliant Minds.
The defendants, along with their employees at Brilliant Minds, were supposed to provide housing consulting, transitioning, and sustaining services to qualifying people in need. Instead, the defendants caused the submission of fake and inflated bills and provided only a fraction of their claimed total.
In all, between approximately September 2022 and April 2025, Brilliant Minds submitted reimbursement claims totaling about $2.3 million. From such claims, in 2024, Brilliant Minds LLC was one of the ten highest-billing HSS providers state-wide.
The defendants diverted some of those taxpayer dollars to their conspirators, and they kept much for themselves. From about April 2023 through about May 2025, each of the defendants personally pocketed between about $300,000 and $400,000 from Brilliant Minds. The defendants also shared a Platinum American Express credit card, on which they accrued nearly half a million dollars in charges to fund and enhance their lifestyles. The defendants paid those charges using Brilliant Mind’s company accounts.
United States v. Christopher Falade, et al., 25-cr-351 (JMB/DJF)
(Faladcare Inc.)
- Defendant Christopher Adesoji Falade, age 62
- Defendant Emmanuel Oluwademilade Falade, age 32
Christopher Falade and his son, Emmanuel Falade, worked together to run Faladcare Inc. as a provider in the HSS Program.
The Falades, along with their employees at Faladcare, were supposed to provide housing consulting, transitioning, and sustaining services to qualifying people in need.
Instead, over the course of years, the Falades and their conspirators created and submitted Program reimbursement claims that were inflated and fraudulent. By doing so, Faladcare received Program payments far exceeding the HSS services they had actually provided. In all, the Falades claimed to service about 100 different beneficiaries and for such services claimed to be entitled to over $2.2 million. The Falades diverted much of their fraud proceeds to their conspirators, including to their Faladcare employees.
United States v. Asad Ahmed Adow, 25-cr-354 (ADM)
(Leo Human Services LLC)
- Defendant Asad Ahmed Adow, age 26
Asad Adow was the owner and principal of Leo Human Services LLC, a company based out of a business suite in Brooklyn Park, Minnesota.
Adow operated Leo as an HSS Provider from a residence in Blaine, Minnesota and a business suite in Brooklyn Park, Minnesota.
Asad Adow directed his employees at Leo Human Services to bill as much as they could. At the same time, Adow made clear to those employees that he would not scrutinize the purported billable hours his employees submitted. In this way, Asad Adow incentivized his employees, who were paid hourly wages, to inflate their hours. As the company owner and principal, Asad Adow made more money when his employees overrepresented their billings—which Asad Adow then submitted for Program reimbursement.
Asad Adow also trained his employees at Leo to create notes detailing the purported services they provided. The HSS Program does not require providers to submit such notes to receive reimbursements. However, Asad Adow directed his employees to create service notes so that the company would have them in case DHS ever conducted an audit. Once again, Asad Adow knew that his employees were manufacturing notes that falsely represented their having provided Program services.
Ultimately, based on inflated and fraudulent claims, Leo Human Services received about $2.7 million in Program funds based on the company’s claims to have provided services to about 250 beneficiaries.
Asad Adow diverted much of those taxpayer dollars to his conspirators, including his employees at Leo and his brother, Anwar Adow. Asad Adow also spent proceeds from his scheme to invest in real estate in Kenya, to lease an apartment in Roseville, Minnesota and a 2024 BMW X4, and to fund his lifestyle.
United States v. Anwar Ahmed Adow, 25-cr-353 (PAM)
(Liberty Plus LLC)
- Defendant Anwar Ahmed Adow, age 25
Anwar Adow was the owner and principal of Liberty Plus LLC, a company based out of a business suite in Roseville, Minnesota. In April 2024, Anwar Adow applied to be an HSS provider. Anwar Adow thereafter purported to service individuals in need through Liberty from a business suite in Roseville, Minnesota.
Anwar Adow directed his employees at Liberty Plus to bill as much as they could. At the same time, Anwar Adow made clear to those employees that he would not scrutinize the purported billable hours his employees submitted to him. In this way, Anwar Adow incentivized his employees, who were paid hourly wages, to inflate their hours. As the company owner and principal, Anwar Adow made more money when his employees overrepresented their billings—which Anwar Adow then submitted for Program reimbursement.
Ultimately, based on inflated and fraudulent claims, Liberty Plus received more than $1.2 million in Medicaid funds for services purportedly provided to approximately 200 beneficiaries.
Anwar Adow diverted much of those taxpayer dollars to his conspirators, including his employees at Liberty and his brother, Asad Adow. Anwar Adow also spent proceeds from his scheme to lease a 2023 Mercedes-Benz CLA, to make investments, and to fund his lifestyle.
“Fraud in the Housing Stabilization Services program not only drains money from hardworking taxpayers, it also deprives vulnerable populations of resources to maintain safe housing," said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Exploiting this program undermines the financial and physical security of the community amid a housing and addiction crisis. The FBI is relentless in working with our law enforcement partners to root out this fraud and prosecute those who enrich themselves at the expense of the community.”
“The charges filed today represent another big blow to organized program fraud in Minnesota,” said Adam Jobes, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “The Minnesota Housing Stabilization Service program was supposed to be a groundbreaking resource to provide stability, assistance, and dignity to seniors and individuals with disabilities. Instead, program funds were diverted to the pockets of greedy opportunists. IRS-CI is proud to partner with our federal and state agencies in investigations like these and will continue to provide our expertise and resources to fight back against those who have chosen to make their living exploiting some of our most vulnerable citizens. The public has the right to expect their hard-earned tax dollars are being used judiciously.”
“The fraud detailed in the criminal charges announced today reflects a calculated effort on the part of the defendants to significantly exploit a program designed to serve vulnerable populations and taxpayers at large” said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency remains committed to working together with our federal and state law enforcement partners to identify and bring to justice those who defraud our nation’s healthcare programs.”
“Funding provided through Housing Stabilization Services is intended to help Minnesotans achieve a stable, housed future. When criminals selfishly defraud these programs they are not only committing a crime, but they are depriving others of services that can be life-changing, and defrauding all taxpaying Minnesotans,” Minnesota Bureau of Criminal Apprehension Superintendent Drew Evans said.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, Health and Human Services, Office of Inspector General, and the Internal Revenue Service – Criminal Investigation, with assistance from the Bureau of Criminal Apprehension, the Attorney General’s Medicaid Fraud Control Unit, and the United States Postal Inspection Service.
Acting U.S. Attorney Joseph H. Thompson and Assistant U.S. Attorney Daniel W. Bobier are prosecuting the case.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Defendant Charged in Ponzi Scheme Targeting Harvard Business School ClassmatesRead 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 VLADIMIR ARTAMONOV with securities fraud, investment adviser fraud, and wire fraud. ARTAMONOV was arrested today in Elkridge, Maryland, and will be presented before U.S. Magistrate Judge Douglas R. Miller in the District of Maryland. The case has been assigned to U.S. District Judge Jennifer L. Rochon.
“As alleged, Vladimir Artamonov betrayed investors, including friends and former Ivy League classmates, by promising a low-risk, high-return investment strategy, when in fact he gambled away investor money and paid off previous investors to continue his scheme,” said U.S. Attorney Jay Clayton. “We will continue to protect the investment markets from schemes that may wear the disguise of sophistication, but in the end are just theft.”
“Vladimir Artamonov allegedly misappropriated more than four million dollars in investments from fellow alumni through false assurances of little risk and high reward,” said FBI Assistant Director in Charge Christopher G. Raia. “The defendant allegedly exploited the prestige of a well-respected university and investment company to unlawfully procure investments, which he used to pay for personal expenses. The FBI will never tolerate those who seek to financially enrich themselves by betraying the trust and wallets of their investors.”
According to the allegations contained in the Indictment:[1]
From at least September 2021 through February 2024, ARTAMONOV defrauded numerous investors who participated in an investment opportunity he called “Project Information Arbitrage.” ARTAMONOV, who graduated from Harvard Business School in 2003 and subsequently worked in the financial services industry, used his professional network to solicit investments from classmates and other alumni of Harvard Business School. ARTAMONOV represented to investors that he would use their funds to execute an information arbitrage strategy focused on investments by Berkshire Hathaway Inc. (“Berkshire”). According to ARTAMONOV, due to its reputation, when Berkshire made new investments in publicly traded companies, and those investments became widely known, those companies’ share prices increased significantly. ARTAMONOV represented to investors that he could identify Berkshire’s new investments ahead of their public disclosure in filings with the U.S. Securities and Exchange Commission by reviewing public insurance company filings made by Berkshire’s affiliates with state regulators. By identifying Berkshire’s new investments and purchasing securities of those companies before the rest of the market, ARTAMONOV claimed he could achieve significant returns with little associated risk. ARTAMONOV raised in excess of $4 million from investors.
In reality, ARTAMONOV defrauded investors. Instead of executing the strategy that he had pitched to investors, ARTAMONOV primarily traded in risky short-term options that, for the most part, did not overlap with Berkshire’s investments or otherwise implement the arbitrage opportunity that ARTAMONOV had presented. ARTAMONOV lost millions of dollars in investor funds, often within days of his receipt of such funds. ARTAMONOV then concealed those losses from investors while soliciting additional investments and repeatedly claiming that profitable investments were on the horizon. ARTAMONOV sent messages to one investor assuring him that it was “[a]lmost certain we will make a ton of money” soon, and that they would “brag” about their “crazy gains” at the Harvard Business School reunion.
When investors eventually demanded the return of their funds, ARTAMONOV repaid old investors with new investors’ funds, or declined to repay investors altogether. Ultimately, ARTAMONOV returned less than $400,000 to investors. Of the approximately $4 million he raised for Project Information Arbitrage, ARTAMONOV lost most of the funds or used them to pay for personal expenses, including lodging, food and alcohol, and transportation.
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ARTAMONOV, 46, of Elkridge, Maryland, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison; one count of investment adviser fraud, which carries a maximum sentence of five years in prison; and one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton also thanked the New York Attorney General’s Office, which separately filed civil proceedings against ARTAMONOV, and expressed appreciation for the assistance of the U.S. Attorney’s Office for the District of Maryland.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Varun A. Gumaste is 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.
u.s._v._artamonov_indictment.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
D.C. Man Arrested for Hate Crime MurderRead the Press Release
WASHINGTON – Edgar Arrington, 38, of Washington, D.C., was arrested and charged with a homicide that occurred in the early morning hours of July 5, 2025, in Northeast D.C., announced U.S. Attorney Jeanine Ferris Pirro.
Arrington made his initial appearance before Superior Court Magistrate Judge Heide Herrmann earlier today, where Judge Herrmann found probable cause that Arrington committed the offense of first-degree murder while armed, with a hate crime enhancement (gender identity), and ordered that Arrington be held without bond pending a preliminary hearing on October 7, 2025, before Judge Danya Dayson.
According to court documents, Arrington, a stranger to the victim, Daquan Johnson, ridiculed Johnson for being transgendered as Johnson walked by Arrington on the sidewalk. Arrington continued his harassment of Johnson by hurling slurs at Johnson, ultimately retrieving a firearm from his clothing and shooting the unarmed victim multiple times throughout the body. Johnson died as a result of the injuries.
This case is being investigated by the Metropolitan Police Department and prosecuted by Assistant United States Attorney Shauna Payyappilly.
Joining in the announcement was Chief Pamela Smith of the Metropolitan Police Department.
These charges are merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cincinnati man pleads guilty to laundering proceeds of romance fraud conspiracy that scammed dozens of victims out of more than $2 millionRead the Press Release
CINCINNATI – Richard Opoku Agyemang, 41, of Cincinnati, pleaded guilty in U.S. District Court to laundering the proceeds of a romance fraud conspiracy involving more than $2 million in loss to dozens of victims.
As part of the romance fraud scheme, other individuals used stolen photographs and false information to create profiles on dating websites and establish online romantic relationships with victims. Victims were tricked into sending money under the false pretense that doing so would support a romantic partner they had met online for things like medical expenses.
According to court documents, victims sent more than $2 million by either wiring money or depositing checks to accounts controlled by Agyemang.
Agyemang was charged federally in April 2024. He pleaded guilty to one count of money laundering stemming from a transfer of $32,000 of fraud proceeds in 2022.
His plea agreement recommends a sentence of up to 41 months in prison.
Dominick S. Gerace II, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division, announced the guilty plea entered on Sept. 17 before U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Julie D. Garcia and Ebunoluwa A. Taiwo are representing the United States in this case.
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California Drug Dealer Sentenced to 55 Months in Federal PrisonRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Anthony Kenneth Johnson, age 68, from Merced, California, was sentenced on September 17, 2025, in the District Court of Guam to 55 months imprisonment for Distribution of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered three years of supervised release following imprisonment, forfeiture of $1,000 in drug proceeds, and a mandatory $100.00 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 17, 2017, United States Postal Inspectors intercepted a package containing 23.09 grams of methamphetamine. After delivering the package under surveillance, the recipient, Kevin Mayberry, admitted to receiving the drugs and identified Johnson as the sender. At the time, Johnson was on supervised release after serving 244 months for a previous methamphetamine conspiracy conviction.
In March and April 2020, after a 20-month revocation of his supervised release, Johnson sent two more packages of methamphetamine to Mayberry. The first contained 7.99 grams, for which they agreed on a $250 payment. Postal Inspectors sent a money order to Johnson, which he cashed. The second package contained 25.53 grams. Johnson indicated he wanted $1,000 for the drugs, using the term “zip” for an ounce of methamphetamine. Postal Inspectors sent two money orders totaling $750, which Johnson cashed. In total, Johnson distributed 56.61 grams of methamphetamine, all with a purity of at least 80 percent.
Co-conspirator Kevin Mayberry previously pled guilty to Attempted Possession of Methamphetamine Hydrochloride with Intent to Distribute and was sentenced to 110 Months in Federal Prison.
“Drug trafficking by offenders under post-conviction supervision will not be tolerated, regardless of the quantity involved,” stated United States Attorney Anderson. “This investigation is another example of the benefits of multi-agency partners working together to keep our communities safe.”
“This sentence sends a message that the U.S. Postal Inspection Service will not allow the U.S. Mail to be used to distribute harmful narcotics in Guam or anywhere else.” said U.S. Postal Inspection Service San Francisco Division Inspector in Charge Stephen Sherwood. “I would like to thank our partners on the task force including the Guam Customs and Quarantine Agency, the Guam Police Department, and the Guam Army National Guard Counterdrug Program for their valuable work keeping dangerous substances out of the mail and out of the community.”
This investigation was conducted by the United States Postal Inspection Service and the Guam Police Department, with prosecution handled by Assistant United States Attorney Devarup Rastogi in the District of Guam.
Convicted Felon Sentenced for Possession of a Loaded FirearmRead the Press Release
PENSACOLA, FLORIDA – Derek Samuel James Hunter, 37, of Pensacola, Florida was sentenced to 63 months in federal prison after previously pleading guilty to a possession of a firearm and ammunition by a convicted felon. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
According to court records, in October 2024, the Escambia County Sheriff’s Office and Emergency Medical Services responded to a possible shooting in Penscaola. At the scene, Hunter was found in possession of a loaded semiautomatic handgun. Hunter has prior felony convictions for Fleeing and Eluding Law Enforcement, Aggravated Assault with a Firearm, Possession of a Firearm by a Convicted Felon, and Possession of Cocaine.
U.S. Attorney Heekin said: “Thanks to the outstanding work of the Escambia County Sheriff’s Office and the investigative assistance provided by our federal law enforcement partners, this violent felon has been taken off our streets and put back behind bars where he belongs. My office will not hesitate to aggressively prosecute these crimes to fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America from the violent criminals who have victimized our communities for too long.”
The conviction and sentence were the result of a joint investigation by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Jessica S. Etherton.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
CEO of Georgia Company Convicted in International Bribery and Money Laundering SchemeRead the Press Release
Miami – A federal jury in Miami convicted a U.S. businessman on September 15 for his role in a nearly five-year long scheme to bribe Honduran government officials and to launder money to secure business for a Georgia-based manufacturer of law enforcement uniforms and accessories.
According to court documents and evidence presented at trial, Carl Alan Zaglin, 70, of Marietta, Georgia, agreed to pay bribes to Honduran officials in order to obtain and retain business with Comité Técnico del Fideicomiso para la Administración del Fondo de Protección y Seguridad Poblacional (TASA), a Honduran governmental entity that procured goods for the Honduran National Police and other Honduran security agencies.
“Bribery and money laundering schemes that funnel millions through our District to corrupt foreign officials will be met with the full force of federal law,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “This verdict sends a clear message: those who seek to buy influence abroad, distort fair competition, or launder dirty money through South Florida will be held accountable.”
“Instead of playing by the rules, Carl Zaglin unfairly sought to get ahead and enrich himself by paying bribes to Honduran officials,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Bribing government officials to win business undermines the rule of law and distorts competitive markets. Today’s verdict reaffirms the Criminal Division’s commitment to rooting out corruption and providing an equal playing field for American businesses.”
The trial evidence showed that, between March 2015 and November 2019, Zaglin, the owner and CEO of Atlanco LLC (Atlanco), orchestrated the payment of hundreds of thousands of dollars in bribes to Honduran officials — including former TASA Executive Director Francisco Roberto Cosenza Centeno (Cosenza) and former TASA Titular Director Juan Ramon Molina — in order to secure contracts with TASA worth more than $10 million. The bribes were paid through Aldo Nestor Marchena, a third-party intermediary then residing in Boca Raton, Florida, who received $2.5 million in payments pursuant to sham invoices authorized by Zaglin. In exchange for the bribes, Cosenza and other Honduran government officials assisted Zaglin, Marchena and others in obtaining contracts for the sale of uniforms and other goods for the Honduran National Police and securing payment on the contracts. Marchena, Cosenza, and Molina all previously pleaded guilty for their roles in the scheme.
To conceal the scheme, Zaglin, Marchena, Cosenza, and their co-conspirators used coded and oblique language like “commissions” and “fees” to refer to bribes and “Miami” to refer to Marchena, “the guys” and “the others” to refer to foreign officials, sham “Brokerage Agreements” falsely detailing legitimate services, and they communicated using personal email accounts and encrypted messaging applications. The conspirators laundered the bribes by moving funds from Atlanco to Marchena’s front company in the United States to accounts held for the benefit of Honduran officials in the United States, Belize, and elsewhere.
The jury convicted Zaglin of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, and one count of conspiracy to commit money laundering. He faces a maximum penalty of five years in prison on both the FCPA count and the FCPA conspiracy count, and a maximum penalty of 20 years in prison on the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Charges in the form of a criminal indictment against Zaglin, Marchena, and Cosenza were unsealed on Dec. 20, 2023. Marchena and Cosenza previously pleaded guilty to conspiracy to commit money laundering on June 5, 2025 and Aug. 13, 2025, respectively. Molina pleaded guilty to conspiracy to commit money laundering on Dec. 11, 2024.
The Homeland Security Investigations (HSI) Miami Field Office investigated the case. The Justice Department’s Office of International Affairs and authorities in Belize, Colombia, and Spain provided assistance with the investigation.
Trial Attorneys Peter L. Cooch and Clayton P. Solomon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eli S. Rubin for the Southern District of Florida are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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Browning woman sentenced to one year in prison for assault on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Browning woman who assaulted an individual on the Blackfeet Indian Reservation was sentenced yesterday to 13 months in prison followed by three years of supervised release, U.S. Attorney Kurt Alme said.
Kodie Rae Ground, 30, pleaded guilty in May 2025 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on May 29, 2024, John Doe was sitting in his parked car in Browning, Montana. Kodie Ground knocked on the window and asked for a ride. Although Doe declined to give her a ride, she opened the door, got in the car, and told him to take her somewhere. Ground refused to get out of the car, so Doe said he would take her to the police station. En route, Doe continued to ask Ground to get out of the car, and she continued to refuse. Doe tried to get her out while stopped at a traffic light, and she became angry. Ground beat John Doe on the head while holding an unknown object. She took the keys out of the ignition and exited the car. When Doe got out of the car, Ground threw his keys at him and walked away.
Doe went to Blackfeet Hospital because he could not move the left side of his body. A CT scan revealed he had a subdural hematoma (a brain bleed), so he was flown to Benefis Hospital in Great Falls, where he underwent a craniotomy.
The U.S. Attorney’s Office prosecuted the case. The investigation was conducted by the BIA and Blackfeet Law Enforcement Services.
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BofA Securities Inc. Resolves Criminal Investigation with Justice Department Pursuant to Part I of the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure PolicyRead the Press Release
BofA Securities, Inc. (BoAS) a North Carolina-based financial institution, has agreed to resolve a criminal investigation involving alleged market manipulation schemes by former BoAS employees pursuant to Part I of the Criminal Division’s Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). As part of the resolution, the Justice Department has declined to prosecute BoAS, and BoAS will disgorge approximately $1.96 million and contribute approximately $3.6 million to a victim compensation fund it will establish and administer.
The Justice Department’s investigation found evidence that from in or about November 2014 through approximately April 2020, two BoAS traders on the bank’s U.S. Treasuries desk separately engaged in schemes to manipulate the secondary (or “cash”) market, and one of those employees also engaged in a scheme to manipulate the futures market for U.S. Treasuries by entering spoof orders — that is, orders placed without the intent to execute them at the time they were placed. Collectively, these two former employees entered more than one thousand suspected spoof orders during the relevant time period. One of the traders, Tyler Forbes, pleaded guilty in April 2022 to manipulating U.S. Treasury securities prices.
In May 2025, the Justice Department revised the CEP to increase transparency and encourage voluntary self-disclosure. The Justice Department announced today that it resolved its investigation against BoAS after considering the factors set forth in the updated CEP, including (1) BoAS’s timely and voluntary self-disclosure of the misconduct; (2) BoAS’s full and proactive cooperation in this matter, including providing all known relevant facts about the misconduct; (3) the nature and seriousness of the offense; (4) BoAS’s timely and appropriate remediation, including the termination of the junior trader, an internal review of the trading of all traders on its U.S. Treasuries desk, an internal review of its compliance program and internal controls, a thorough and systematic root-cause analysis, significant investment in and improvements to its surveillance programs and parameters, enhancements to its broader compliance program, and the implementation of external testing of its internal controls; (5) the absence of aggravating circumstances; and (6) BoAS’s agreement to disgorge its gains and provide victim compensation.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Assistant Director in Charge Christopher G. Raia of the FBI New York Field Office; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS), Criminal Investigations Group made the announcement. The FBI and USPIS are investigating the case.
Trial Attorneys Sara Hallmark and John J. Liolos of the Criminal Division’s Fraud Section are prosecuting the case.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Belgian National Sentenced to Prison after Defrauding Investors in a $5M Ponzi SchemeRead the Press Release
SALT LAKE CITY, Utah – A Belgian national in the United States operated a $5 million Ponzi scheme over the course of five years was sentenced today to 60 months’ imprisonment.
Kenny Dirk Van Der Spek, 36, who was living in South Jordan, Utah, pleaded guilty to securities fraud, wire fraud and money laundering in May 2025, after he defrauded approximately 75 investors, and used at least $3 million on real estate, a personal chef, a new 2022 Chevrolet Corvette, online gambling and more.
In addition to Van Der Spek’s term of imprisonment, a U.S. District Court Judge sentenced him to three years’ supervised release and ordered he pay full restitution in the amount of $4,107,282.97 to the victims. He also was ordered to comply with the forfeiture of real property in Martinsville, Virginia and Spanish Fork, Utah. See prior press release: Belgium National and Utah Business Owner Charged After Allegedly Running a $5M Ponzi Scheme
According to court documents and admissions made at Van Der Spek’s change of plea and sentencing hearings, Van Der Spek was the owner and manager of K & K Strategies, LLC, which he marketed as a “hedge fund.” Between December 2017 to November 2023, Van Der Spek, convinced investors to invest in his company by making false promises and misrepresentations about investor funds. Van Der Spek, who was not licensed to sell securities, told investors K & K Strategies was legally operating a hedge fund and that he was licensed to do so. He represented to investors that their investments with K & K Strategies were succeeding, showing them fabricated financial records, when in reality, investors were suffering losses. He also displayed a “live stream” of trades on K&K Strategies’ website so that investors could “watch [their] money grow.”
As part of Van Der Spek’s criminal conduct, Van Der Spek promoted K & K as a “mom and pop hedge fund,” accepting investments as low as $500 and specifically targeting “smaller investors” – Investors who had little or no safety net beyond their slowly and meticulously accumulated savings. To those targets, Van Der Spek stated that he wanted to “help people who didn’t have much money.”
“This was not a crime of opportunity. Van Der Spek specifically planned and targeted vulnerable investors and caused substantial financial hardships for victims in Utah and other states,” said Acting U.S. Attorney Felice John Viti of the District of Utah. “Stealing hard earned money from our citizens is a serious offense, and it will not be tolerated in the District of Utah. We will continue to prosecute and seek justice for victims who suffer from these types of crimes.”
“Van Der Spek’s 'mom and pop hedge fund' had a devastating financial impact on hardworking Utahns, exploiting them for personal gain and taking millions to support his lavish lifestyle,” said Robert Cummings, Director of the Utah Division of Securities. The Division received complaints about Van Der Spek, which led to an investigation into his fraudulent activities and ultimately resulted in his arrest and conviction. “We are grateful to Utah’s law enforcement, the Financial Crime Task Force, the FBI, and the Department of Justice for their diligent work in apprehending Mr. Van Der Spek and holding him accountable. We encourage everyone to visit securities.utah.gov to verify the proper license of anyone providing investment advice before investing their money.”
“Like many fraudsters, Mr. Van Der Spek was motivated by greed, spending his victims’ money on luxuries for himself,” said Special Agent in Charge Robert Bohls of the Salt Lake City FBI. “Most of the victims in this case didn’t have the money to lose, resulting in financial and emotional devastation that will cause lasting harm. The FBI and our partners continue to seek accountability for those who exploit others for financial gain.”
“Mr. Van Der Spek chose to live a life of fraud built on the backs of hardworking Americans,” said IRS-CI Acting Special Agent in Charge, Jarom Gregory of the Phoenix field office. “He deliberately targeted his investment scheme to prey upon those who had the least to give and the most to lose. IRS-CI employs some of the world’s best financial investigators and working together on a team with our law enforcement partners we have been able to bring some measure of justice for the people victimized by Mr. Van Der Spek.”
The case was investigated by the Utah Division of Securities, FBI Salt Lake City Field Office, and Internal Revenue Service – Criminal Investigation (IRS-CI) Phoenix Field Office.
Special Assistant United States Attorney Sachiko J. Jepson and Assistant United States Attorney Mark Y. Hirata, of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
Bay City Man Sentenced to Federal Prison for Robbing Sunrise Family Credit UnionRead the Press Release
BAY CITY — Tony McGillen, 45, of Bay City was sentenced today to 152 months in federal prison for robbing the Sunrise Family Credit Union in Essexville, U.S. Attorney Jerome F. Gorgon, Jr. announced.
Gorgon Jr. was joined in the announcement by Reuben C. Coleman, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation (FBI).
U.S. District Court Judge Thomas L. Ludington imposed sentence on McGillen following his guilty plea to bank robbery and brandishing a firearm in furtherance of a crime of violence.
According to court documents, on April 9, 2024, McGillen robbed the Sunrise Family Credit Union at gunpoint. McGillen threatened multiple tellers and got away with $7,901 in cash. Thanks to tips from the community, the FBI in Bay City identified McGillen and arrested him just over two weeks later.
"The sentencing of Tony McGillen, who was convicted of bank robbery and brandishing a firearm, demonstrates that tough consequences follow such crimes, including multiple years in federal prison,” said Reuben Coleman, Acting Special Agent in Charge of the FBI Detroit Field Office. “Thanks to the hardworking members of the FBI Bay City Resident Agency, in partnership with the Hampton Township Police Department, the Michigan State Police and the successful prosecution of the U.S. Attorney’s Office for the Eastern District of Michigan, Mr. McGillen will be off the streets. I also want to extend my gratitude to the members of the community, including local businesses, whose cooperation was instrumental in bringing justice to those affected by this offender.”
This investigation was conducted by Bay City Resident Agency of the FBI. The case was prosecuted by Assistant United States Attorney William Orr.
Arraignment for Man Who Punched His Girlfriend Repeatedly in the FaceRead the Press Release
WASHINGTON – Nyzir Miles, 22, of Washington, D.C., was arraigned today at a hearing before the Honorable Robert Salerno on charges of assault with significant bodily injury and other charges stemming from multiple assaults on his former girlfriend in late 2024, announced U.S. Attorney Jeanine Ferris Pirro.
A grand jury in the Superior Court of the District of Columbia indicted Miles on September 10, 2025, on one felony charge of assault with significant bodily injury, as well as four additional misdemeanor charges: two charges of simple assault and two charges of obstructing, preventing, or interfering with reports to or requests for assistance from law enforcement agencies, medical providers, or child welfare agencies.
According to the government’s evidence, on September 2, 2024, around 11:00 p.m., near the 700 block of Decatur Place NE, Miles and his girlfriend had been driving around when they got into an argument and he punched her in the face. Several hours later, Miles again became angry with the victim, and, after taking her cell phone, began to punch the victim repeatedly in the mouth, causing her mouth to fill with blood to the point where the victim was reportedly choking and unable to breathe. An ambulance transported the victim to Howard University Hospital, where she was diagnosed with a dental fracture and several loose teeth, and a wire was inserted to hold her teeth in place. Approximately two months later, on November 10, 2024, Miles again assaulted the same victim and also reportedly interfered with the victim requesting assistance from law enforcement.
Joining in the announcement was Chief Pamela Smith of the Metropolitan Police Department.
This case is being investigated by the Metropolitan Police Department.
This case is being prosecuted by Assistant U.S. Attorney Ariel Lieberman and was also investigated by Assistant U.S. Attorney Janki Kaswala.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alexandria man convicted of repeat child sexual abuse material chargesRead the Press Release
ALEXANDRIA, Va. – A district court judge yesterday convicted a prior sex offender of distributing and possessing child sexual abuse material (CSAM) while on supervised release.
“Following his previous conviction for child sexual abuse material, Antonio Gonzalez knew what he was doing was illegal and knew the consequences,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Instead of embracing a respect for the law and the vulnerable lives it protects, Gonzalez returned to his previous crimes with no regard for those harmed by sexual exploitation. We will tirelessly prosecute anyone engaging in these detestable crimes, and we will continue to pursue anyone who refuses to reform.”
“This defendant continued to sexually exploit children online while on court-ordered supervision, following an earlier conviction for similar conduct,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Thanks to the tireless efforts and enduring dedication of our law enforcement partners and prosecutors, this defendant has been held accountable for his continued exploitation of children and now faces a fifteen-year mandatory minimum sentence.”
According to court documents and evidence presented at trial, in April 2024, law enforcement began investigating Antonio Rudy Gonzalez, 41, for distributing CSAM on Kik, a mobile-based messaging platform. Gonzalez sent images of minors engaged in sexually explicit conduct to multiple other Kik users. In 2013, Gonzalez was convicted in the Eastern District of Virginia of distribution of child pornography.
Gonzales is scheduled to be sentenced on Jan. 27, 2026, and faces a mandatory minimum penalty of fifteen years and up to 40 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. District Judge Leonie M. Brinkema delivered the verdict.
Assistant U.S. Attorney Vanessa Strobbe and Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-213.
Activity in the U.S. Attorney's OfficeRead the Press Release
George Ostertag, 38, of Rawlins, Wyoming, was sentenced to 18 months’ imprisonment with three years of supervised release to follow for being a felon in possession of a firearm. According to court documents, on Jan. 24, 2024, Ostertag was pulled over for a traffic violation. A K9 drug dog alerted to controlled substances in the car and a subsequent search uncovered a 9mm pistol with an obliterated serial number wedged between the driver’s seat and the center console. Prior to this incident, Ostertag was convicted of a felony and unable to legally possess a firearm. The Wyoming Highway Patrol and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the crime. Assistant U.S. Attorney Paige Hammer prosecuted the case. Ostertag was indicted on May 16, 2024, and pleaded guilty on June 17, 2025. U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 9, in Cheyenne. Case No. 24-CR-00084
Drug and Firearm Offenses
Barry Joe Barrera, 41, of Casper, Wyoming, was sentenced to 152 months’ imprisonment with four years of supervised release for conspiracy to distribute methamphetamine, distribution of methamphetamine, and use of a firearm in relation to a drug trafficking crime. According to court documents, the Wyoming Division of Criminal Investigation (DCI) began investigating Barrera in December 2024 on suspicion of distributing methamphetamine. Throughout the investigation, agents made controlled purchases, including purchasing firearms and observed Barerra traveling to and from Colorado to replenish his supply of methamphetamine. On January 9, 2025, as Barrera and two others were returning from Colorado, the Wyoming Highway Patrol attempted a traffic stop in Converse County. The driver fled and a pursuit ensued. During the pursuit, someone tossed a bag of methamphetamine out the window, which law enforcement recovered. Wyoming DCI and the Department of Homeland Security investigated the crime. Assistant U.S. Attorney Mackenzie R. Morrison prosecuted the case. Barrera was arrested on complaint Feb. 27 and pleaded guilty on May 9. U.S. District Court Judge Alan B. Johnson imposed the sentence on Sept. 11 in Cheyenne. Case No. 25-CR-00074
Illegal Re-Entry of a Previously Deported Alien
Juan Olvera-Venegas, 35, of Guanajuato, Mexico, was sentenced to 18 months’ imprisonment and will be deported for illegal reentry into the United States upon completion of his sentence. According to court documents, on May 16, the defendant was arrested in Goshen County for possession of a controlled substance. Fingerprints taken at the time of detention indicated Olvera-Venegas is a citizen of Mexico and agents with Immigration and Customs Enforcement (ICE) were contacted. They determined that Olvera-Venegas had previously been removed from the U.S. and had not applied for permission to reenter after being formally removed multiple times beginning in 2013. The records also indicated a lengthy criminal record accompanying each deportation. ICE investigated the crime, and Assistant U.S. Attorney Kerry J. Jacobson prosecuted the case. Chief U.S. District Court Judge Kelly H. Rankin imposed the sentence on Sept. 11 in Cheyenne. Case No. 25-CR-00097About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Operation Take Back America
Operation Take Back America is 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. It also streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Victim Witness Program
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to ensuring victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime
56th Defendant Pleads Guilty in Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Today, Abdullahe Nur Jesow, age 65, became the 56th defendant to plead guilty in the massive Feeding Our Future fraud scheme, announced Acting U.S. Attorney Joseph H. Thompson.
“On the very day we secured our 56th conviction in the Feeding Our Future fraud cases, we have also brought the first wave of charges in the Housing Stabilization fraud scheme,” said Acting U.S. Attorney Joseph H. Thompson. “I am proud of the extraordinary work of our prosecutors, federal agents, and law enforcement partners who are working around the clock to expose these crimes. But the truth is they should not have to. Minnesota deserves better.”
Jesow was one of eight defendants charged in United States v. Hassan, et al., 22-cr-224 (NEB/DTS). This group, the S&S Catering group, purported to run food program sites, including on Lake Street in Minneapolis, Minnesota. The group worked together to steal and then launder $17.4 million in Federal Child Nutrition Program money that was meant to feed hungry children during the Covid-19 pandemic.
Today, Jesow pled guilty before District Judge Nancy E. Brasel to money laundering for his role in the scheme. Jesow had been set to proceed to trial before Judge Brasel on October 14, 2025. One defendant now remains in that trial.
Jesow operated a Federal Child Nutrition Program site called Academy For Youth Excellence. Academy For Youth Excellence purported to run a site and serve meals out of Benadir Hall, a banquet hall located above S & S Catering. Benadir Hall was listed on the site application for Academy For Youth Excellence that scheme leader Aimee Bock submitted to MDE on December 30, 2020. Academy For Youth Excellence contracted with S & S Catering to act as a vendor to provide the food that the site was to serve or deliver to children under the federal food program.
Beginning in December 2020, Jesow and his co-conspirators claimed to serve approximately 2,500 meals a day to children, seven days a week. By April 2021, Jesow and his co-conspirators claimed to serve approximately 5,000 meals a day to children, seven days a week. As Jesow knew, these numbers were grossly inflated. In support of their false claims, Jesow’s co-conspirators prepared and submitted fraudulent meal counts, attendance rosters, and invoices.
In total, during the period between December 2020 to September 2021, Academy For Youth Excellence claimed to have served more than 1.7 million meals. In reality, Academy for Youth Excellence only provided a fraction of those meals. Based on these claims, Jesow’s co-conspirators received $4,286,088 in Federal Child Nutrition Program funds, Jesow received approximately 5% of that amount, and then returned the bulk of it to the co-conspirators in cash or check payments, laundering the proceeds of the fraud scheme.
This case is the result of an investigation conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Internal Revenue Service–Criminal Investigation.
Acting U.S. Attorney Joseph H. Thompson and Assistant U.S. Attorneys Harry M. Jacobs, Daniel W. Bobier, and Melinda A. Williams are prosecuting the case.
Wednesday 17 September 2025
Wounded Knee Man Sentenced to 30 Years in Federal Prison for Committing Child Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a man from Wounded Knee, South Dakota, convicted of Aggravated Sexual Abuse of a Minor. The sentencing took place on August 18, 2025.
Anfernee Rondeau, 28, was sentenced to 30 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Rondeau was indicted by a federal grand jury in October 2024. He was found guilty following a federal jury trial in May 2025.
Evidence offered at trial established that on the evening of April 4, 2024, Rondeau, his girlfriend, and his girlfriend’s 6-year-old daughter returned home after an evening of drinking. Both adults were intoxicated. Rondeau, his girlfriend, and the child went into a bedroom. A short while later, a 13-year-old witness heard the child crying. When the 13-year-old went to check on the child, she observed Rondeau on top of the child. Rondeau’s pants were partially unzipped and pulled down. The child’s pants and underwear were pulled down. The 13-year-old witness acted heroically and pushed Rondeau off the child. The 13-year-old wrapped the child in a blanket and carried her to another family member inside the house. Oglala Sioux Tribe Department of Public Safety law enforcement responded and arrested Rondeau.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Rondeau was immediately remanded to the custody of the U.S. Marshals Service.
Violent felon sentenced to 10 years for possessing firearms, body armor following parole violationRead the Press Release
FAIRBANKS, Alaska – A Fairbanks man was sentenced yesterday to 10 years in prison, and upon release, will serve three years on supervised release for possessing multiple firearms and body armor as a felon.
According to court documents, on June 4, 2024, an arrest warrant for a parole violation was issued for George Romero, 37. Romero was on parole for a 2006 felony State conviction for murder, assault and robbery.
On June 6, 2024, law enforcement officials located Romero at a residence in Fairbanks and observed Romero walking around the residence and loading camping gear into a vehicle. The vehicle departed the residence with Romero and drove to a nearby intersection, where Romero began unloading the camping gear. Romero was wearing a camouflage poncho, had multiple bags and began to carry the supplies toward the tree line.
Law enforcement officers deployed to apprehend Romero. SWAT officers called out verbal instructions and Romero complied with most orders before he was arrested. Law enforcement searched his person and found body armor, multiple firearms, handgun magazines and loose ammunition. They also found another pistol in the bag he was carrying.
On Nov. 20, 2024, a federal grand jury in Alaska indicted Romero for being a felon in possession of a firearm and for being a violent felon in possession of body armor. On April 4, 2025, a jury convicted Romero on all charges. In handing down the sentence, the Court emphasized the need to protect the community from Romero’s actions.
“Mr. Romero is a violent felon who repeatedly disregards the law and remains a serious threat to our communities,” said U.S. Attorney Michael J. Heyman for the District of Alaska. “Fortunately, the recent interaction with law enforcement did not escalate, and this sentence ensures the community will be safeguarded from the defendant for another decade. This sentence reflects the gravity of his crime and sends a strong message that those who illegally possess firearms and related supplies—especially individuals with violent histories—will face severe federal penalties.”
“George Romero has consistently demonstrated defiance to authority and a lack of respect for the law,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Romero, a convicted felon, armed himself with multiple firearms, ammunition and body armor and fled to avoid arrest for a parole violation. FBI Anchorage will continue to collaborate with our law enforcement partners and the United States Attorney’s Office to keep our communities safe.”
“George Romero has a long and violent history, and his decision to arm himself with multiple firearms and body armor while on parole showed once again the threat he posed to Alaskans,” said Alaska State Trooper Colonel Maurice Hughes. “This sentence ensures that he will no longer endanger our state. The Alaska State Troopers remain committed to working with our local, state, and federal law enforcement partners to hold violent offenders accountable and ensure public safety across our great state.”
The Alaska State Troopers, Fairbanks Area Narcotics Team (FANT), FBI Anchorage Field Office, Fairbanks Resident Agency and ATF Anchorage Field Office investigated the case.
Assistant U.S. Attorney Carly Vosacek and Trial Attorneys from the Antitrust Division, David Bernhardt and Lauren Weed prosecuted the case.
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United States Files Suit Against California-Based Health Plan for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
The United States has filed a complaint under the False Claims Act in a lawsuit against Local Initiative Health Authority for Inland Empire Health Plan doing business as Inland Empire Health Plan (IEHP), a California Local Initiative Health Plan based in Rancho Cucamonga, California. IEHP contracted with California’s Department of Health Care Services (DHCS) to arrange for the provision of health care services to Riverside County and San Bernardino County residents under Medi-Cal, California’s Medicaid program. The government’s complaint alleges that IEHP violated the False Claims Act by making false statements to Medi-Cal and knowingly retaining overpayments.
“The Medicaid program provides critical health care services,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division. “Today’s complaint demonstrates our continued commitment to protect the integrity of the Medicaid program, and the taxpayer dollars that support it, from health insurers that knowingly seek to divert program funds for their own financial benefit.”
“Today’s lawsuit against IEHP shows our steadfast commitment to hold accountable insurers that brazenly compromise the Medicaid system,” said Acting U.S. Attorney Bill Essayli for the Central District of California. “We will take every measure to restore integrity and accountability to the Medicaid system and ensure that patient care – not financial gain – is the primary focus of our health care system.”
Beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Medi-Cal Expansion” population: adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under its contractual arrangement with DHCS, IEHP received funding to serve the Medi-Cal Expansion population. If IEHP did not spend at least 85% of those funds on “allowed medical expenses,” IEHP was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The United States’ complaint alleges that IEHP developed schemes to misuse surplus Medi-Cal Expansion funding, falling into two broad categories: (1) sham incentive programs and (2) an extra-contractual retroactive rate increase. Through these schemes, IEHP misspent Medi-Cal Expansion funding for impermissible purposes, including spending on administrative expenses, other patient populations, and simply giving away federal funding in exchange for no value in return. The complaint further alleges that IEHP was motivated by a desire to conserve its other funding, thus enriching itself.
The complaint alleges that, to make the spending appear legitimate, IEHP deceived the state by making false statements — which it knew would be relayed to the federal government — about the nature, timing, and purpose of its payments to providers. For example, IEHP internally admitted it was giving providers “free money” but asserted to DHCS that the payments were part of a metric-based incentive program rewarding providers with good performance. IEHP also disguised payments for consultants and technology services as incentive payments by funneling those payments through providers and backdated spending to fall during earlier time periods. According to the United States’ complaint, those payments allegedly were not “allowed medical expenses” permissible under the contract between DHCS and IEHP.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Central District of California, in coordination with the California Department of Justice and with valuable assistance from HHS-OIG and DHCS.
The United States is represented in this matter by Fraud Section Trial Attorney Mary Beth Hickcox-Howard and Assistant U.S. Attorneys S. Desmond Jui and Jack D. Ross for the Central District of California.
The claims asserted in the complaint are allegations only and there has been no determination of liability.
United States Files Lawsuit Against San Bernardino County-Based Health Plan for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
LOS ANGELES – The United States has filed a complaint under the False Claims Act in a lawsuit against Local Initiative Health Authority for Inland Empire Health Plan doing business as Inland Empire Health Plan (IEHP), a California Local Initiative Health Plan based in Rancho Cucamonga.
IEHP contracted with California’s Department of Health Care Services (DHCS) to arrange for the provision of health care services to Riverside County and San Bernardino County residents under Medi-Cal, California’s Medicaid program.
The government’s complaint alleges that IEHP violated the False Claims Act by making false statements to Medi-Cal and knowingly retaining overpayments.
“Today’s lawsuit against IEHP shows our steadfast commitment to hold accountable insurers that brazenly compromise the Medicaid system,” said Acting United States Attorney Bill Essayli. “We will take every measure to restore integrity and accountability to the Medicaid system and ensure that patient care – not financial gain – is the primary focus of our health care system.”
“The Medicaid program provides critical health care services,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division. “Today’s complaint demonstrates our continued commitment to protect the integrity of the Medicaid program, and the taxpayer dollars that support it, from health insurers that knowingly seek to divert program funds for their own financial benefit.”
Beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Medi-Cal Expansion” population: adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under its contractual arrangement with DHCS, IEHP received funding to serve the Medi-Cal Expansion population. If IEHP did not spend at least 85% of those funds on “allowed medical expenses,” IEHP was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The United States’ complaint alleges that IEHP developed schemes to misuse surplus Medi-Cal Expansion funding, falling into two broad categories: (1) sham incentive programs and (2) an extra-contractual retroactive rate increase. Through these schemes, IEHP misspent Medi-Cal Expansion funding for impermissible purposes, including spending on administrative expenses, other patient populations, and simply giving away federal funding in exchange for no value in return. The complaint further alleges that IEHP was motivated by a desire to conserve its other funding, thus enriching itself.
The complaint alleges that, to make the spending appear legitimate, IEHP deceived the state by making false statements—which it knew would be relayed to the federal government—about the nature, timing, and purpose of its payments to providers. For example, IEHP internally admitted it was giving providers “free money” but asserted to DHCS that the payments were part of a metric-based incentive program rewarding providers with good performance. IEHP also disguised payments for consultants and technology services as incentive payments by funneling those payments through providers and backdated spending to fall during earlier time periods. According to the United States’ complaint, those payments allegedly were not “allowed medical expenses” permissible under the contract between DHCS and IEHP.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800 HHS TIPS (800-447-8477).
This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Central District of California, in coordination with the California Department of Justice and with valuable assistance from HHS-OIG and DHCS.
The United States is represented in this matter by Assistant United States Attorneys S. Desmond Jui and Jack D. Ross of the Civil Division’s Civil Fraud Section and Justice Department Fraud Section Trial Attorney Mary Beth Hickcox-Howard.
The claims asserted in the complaint are allegations only and there has been no determination of liability.
U.S. District Court Appoints Craig H. Missakian as United States Attorney for the Northern District of CaliforniaRead the Press Release
SAN FRANCISCO – The U.S. District Court for the Northern District of California has approved the appointment of Craig H. Missakian as the United States Attorney for the Northern District of California. Chief U.S. District Judge Richard Seeborg administered the oath of office to U.S. Attorney Missakian this afternoon.
Mr. Missakian has been serving in the position of United States Attorney since May 27, 2025, following his appointment for 120 days by Attorney General Pamela Bondi, pursuant to 28 U.S.C. § 546.
“I am grateful to the judges of the Northern District of California for their decision and for the opportunity to continue working with the talented women and men of this Office to serve the people of this remarkable district. The U.S. Attorney’s Office is entrusted with the important responsibilities of protecting our communities and upholding the rule of law, and our commitment to the mission remains deep and unwavering,” said United States Attorney Missakian.
As the United States Attorney, Mr. Missakian serves as the chief federal law enforcement officer in the Northern District of California, home to nearly nine million residents in 15 counties spanning from Del Norte in the north to Monterey in the south, more than 300 public companies centered in Silicon Valley, and three major metropolitan areas in San Francisco, Oakland, and San Jose.
U.S. Attorney’s Office Seeks Potential Victims in Case Against St. Louis Doctor and StaffRead the Press Release
ST. LOUIS – In July of 2024, the U.S. Attorney’s Office in the Eastern District of Missouri announced that a federal grand jury charged physician David A. Parks, clinical manager and clinical research coordinator James M. Bilderback, and front desk assistant Michelle J. Scheer with crimes related to the clinic at which they worked, located at 3960 Lindell Boulevard in St. Louis. The indictment alleges that from at least July 6, 2016, through Dec. 31, 2021, the three conspired to knowingly and intentionally prescribe controlled substances outside of the usual course of professional practice and for no legitimate medical purpose. The conspiracy’s goal was to maximize their patient population and, in turn, their profit, the indictment says. Parks and Bilderback, the indictment alleges, also conspired to defraud Medicare, Missouri Medicaid and private health insurers by billing them for claims for services that falsely and fraudulently identified Parks as the provider, including at times when Parks was out of the country.
On August 15, 2025, U.S. Magistrate Judge John M. Bodenhausen issued an order directing the government to employ alternative victim notification procedures so that any member of the community who believes they may be a crime victim is made aware of their potential rights.
The government is asking members of the community who believe they may be a victim of illegal prescribing of controlled substances or fraudulent billing practices by Dr. David A. Parks, James Bilderback or Michelle Scheer to please email [email protected] to reach the Victim-Witness Unit at the U.S. Attorney’s Office, Eastern District of Missouri.
Former patients of Parks or their families may still be facing the aftermath of illegal prescribing of controlled substances or fraudulent billing practices. The victim-witness program provides information, services and support to individuals during federal prosecutions.
Case updates will be provided on the U.S. Attorney’s Office website at https://www.justice.gov/usao-edmo/pr. Please also be aware of these free, confidential resources that may be of assistance:
- Always call 911 if it’s a life-threatening emergency.
- To find supportive services, dial 2-1-1 to call United Way. Operational hours are 8:30 a.m. – 5 p.m., Monday – Friday. If you call after hours, please leave a message. Phone calls will be returned the next business day. 2-1-1 provides information and referral service that connect people to vital community, health and social services provided by a range of nonprofit, government and tribal agencies.
- SAMHSA has a national helpline to assist with finding behavioral health support or substance use management at 800-662-HELP (4357), TTY: 800-487-4889, or online at https://findtreatment.samhsa.gov/. Calls are manned 24/7 and are routed to the DHSS Division of Behavioral Health during DHSS operational hours.
- Help is available 24/7 through Missouri's Crisis Hotline (https://dmh.mo.gov/behavioral-health/treatment-services/specialized-programs/crisis-services), 988 Suicide & Crisis Lifeline. If you or someone you know is in a mental health, suicide or substance use crisis; reach out to the 988 Suicide & Crisis Lifeline by calling or texting 988, or the 988 Lifeline Chat.
The charges in the indictment are merely allegations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Always call 911 if it’s a life-threatening emergency.
Two now in custody for international kidnappingRead the Press Release
McALLEN, Texas – A 30-year-old Lumberton resident is set for a detention hearing following his arrest for kidnapping two minor children and taking them to Mexico, announced U.S. Attorney Nicholas J. Ganjei.
Authorities have taken Luis Angel Rodriguez into custody. He made his initial appearance and is set for a detention hearing Sept. 19 at 1 p.m. before U.S. Magistrate Judge Scott Hacker.
Carolina Rodriguez is also charged and remains in custody. Law enforcement arrested her in June.
The indictment, returned in August, alleges that on or about Sept. 1, 2024, Carolina and Luis Angel Rodriguez kidnapped two children, both under the age of 16, and took them to Mexico.
Authorities also located the children and have reunited them with their guardians.
If convicted, Luis and Carolina Rodriguez face up to three years in federal prison and a possible $250,000 maximum fine.
FBI conducted the investigation with the assistance of Legat Mexico City, Monterrey Sub-office and San Juan Police Department. Assistant U.S. Attorney Alexa D. Parcell is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Two Mexican Nationals Sentenced to Prison for Illegally Reentering the United States After Multiple DeportationsRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that two Mexican nationals convicted separately of illegally reentering the United States after multiple prior deportations have been sentenced to prison.
David Gonzalez-Castillo, 47, was sentenced by United States District Judge Nitza I. Quiñones Alejandro to two years in prison for illegal reentry. Upon completing his prison sentence, he will be removed from the United States again.
Gonzalez-Castillo had been removed from the U.S. four times before: in March 2009, July 2009, and twice in August 2009, after encounters with Immigration and Customs Enforcement (ICE) in Texas and the U.S. Border Patrol in Arizona.
In October 2024, ICE learned that Gonzalez-Castillo had been arrested by the Coatesville (Pa.) Police Department. ICE officers took the defendant into custody in March of this year, after he was convicted of simple assault in the Chester County Court of Common Pleas. Gonzalez-Castillo was charged by federal indictment with illegal reentry in April and pleaded guilty in May.
Saul Lopez Rodriguez, 32, was sentenced by United States District Judge Joshua D. Wolson to six months in prison for illegal reentry. Upon completing his sentence, he will be removed from the United States again.
Lopez Rodriguez had previously been removed from the country four times, including in November 2012, December 2012, and March 2013, after encounters with the U.S. Border Patrol in Arizona. In March 2016, the U.S. Border Patrol encountered the defendant in New Mexico. He was arrested, charged by information with illegal reentry in the District of New Mexico, pleaded guilty, and was removed from the country in April 2016.
In July 2024, ICE became aware that Lopez Rodriguez had been arrested by the Norristown (Pa.) Police Department, with the defendant subsequently pleading guilty to reckless driving. ICE took him into custody in June of this year, after law enforcement encountered him during a traffic stop. Lopez Rodriguez was charged by information with illegal reentry in July and pleaded guilty the same month, waiving prosecution by indictment.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
The cases were investigated by ICE Enforcement and Removal Operations and prosecuted by Assistant United States Attorneys Francis Weber and Erica Kivitz.
Two Florida Men Charged for $34.8M Fraud Scheme Targeting Medicare BeneficiariesRead the Press Release
An indictment was unsealed Friday charging two Florida men for their roles in a scheme to submit approximately $34.8 million in false and fraudulent claims to Medicare for medically unnecessary products. As part of the scheme, the defendants and their co-conspirators targeted thousands of Medicare beneficiaries and, through deceptive telemarketing, persuaded them to accept medical equipment that they did not need, such as orthotic braces and continuous glucose monitors.
“The defendants are alleged to have perpetuated a scheme that involved the submission of $34.8 million in fraudulent claims to Medicare for medically unnecessary medical equipment,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “That money, which came from American taxpayers, was intended to benefit Americans in need of medical care. Friday’s arrests send a clear message to those who would defraud our healthcare system: the public fisc is not your private purse, and we will aggressively prosecute those that steal from benefit programs.”
“Greed-fueled fraud schemes, like billing for medically unnecessary medical equipment, are a threat to both taxpayer-funded health care programs and patients alike,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working shoulder to shoulder with our law enforcement partners, we will continue to aggressively investigate such allegations to hold fraudsters fully accountable.”
“The harm done by these actors cannot be overstated,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division, “The FBI will continue to pursue those who seek to damage our healthcare system and defraud everyday Americans seeking aid."
According to court documents, Kenneth Charles Kessler III, 42, of Miami-Dade County, Florida, and Michael Andrew Gomez, 42, of Broward County, Florida, are charged in connection with their ownership and operation of seven durable medical equipment (DME) supply companies based in Florida. Kessler and Gomez are accused of paying illegal kickbacks and bribes to purported marketing companies that targeted thousands of Medicare beneficiaries with deceptive and aggressive telemarketing campaigns. The indictment alleges that these marketing companies obtained the beneficiaries’ personally identifiable information and arranged for purported telemedicine companies to generate doctors’ orders for unnecessary medical equipment. Kessler and Gomez allegedly used these doctors’ orders to submit false and fraudulent claims to Medicare through their network of DME companies.
Kessler and Gomez are both charged with conspiracy to commit health care and wire fraud, two counts of health care fraud, conspiracy to defraud the United States and to offer and pay health care kickbacks, and two counts of offering and paying kickbacks in connection with a federal health care program. If convicted, Kessler and Gomez each face up to 65 years in prison. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of Health and Human Services, Office of Inspector General and the FBI are investigating the case.
Trial Attorneys Aisha Schafer-Hylton and Owen Dunn of the Criminal Division’s Fraud Section are 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 nine 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.
Tohono O’odham Man Indicted on Multiple Charges Involving Minor VictimRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned a 4-count indictment against Allman Rivas, 36, of Menagers Dam, located on the Tohono O’odham Nation, for Attempted Coercion and Enticement, Transfer of Obscene Material to Minors, and Attempted Sex Trafficking of a Minor by Force, Fraud, or Coercion, and Sexual Extortion.
Pursuant to the complaint and indictment filed in this case, between June 26, 2025, and July 19, 2025, Rivas sent multiple Facebook messages to a minor victim to entice her to go to his residence for sexual encounters. During this period, Rivas also sent the minor victim photographs of his genitals. At one point, Rivas offered to pay back a small loan to the minor victim if the minor victim engaged in oral sex. Finally, when the victim refused to engage in sexual acts with Rivas, Rivas threatened the minor victim to coerce them to engage in sexual contact or sexual intercourse. Rivas is an enrolled member of the Tohono O’odham Indian Nation.
A conviction for Attempted Coercion and Enticement carries a mandatory minimum penalty of 10 years in prison with a maximum term of life. A conviction for Transfer of Obscene Material to Minors carries a maximum term of 10 years in prison, and a conviction for Attempted Sex Trafficking of a Minor by Force, Fraud, or Coercion carries a mandatory minimum of 15 years in prison with a maximum term of life. Finally, a conviction for Sexual Extortion carries a term of imprisonment of between 5 and 15 years. Each conviction also carries a maximum fine of $250,000.
“Protecting our youth from sexual offenders is one of the highest priorities of this office,” said United States Attorney Timothy Courchaine. “These crimes are among the most serious we prosecute because they target the most vulnerable members of our community. Working closely with our law enforcement partners, we will continue to aggressively investigate and prosecute those who attempt to exploit children.”
"Safeguarding all children from violence, coercion and exploitation is a top priority for the FBI," said FBI Phoenix Special Agent in Charge Heith Janke. "The FBI will continue to work with our federal, state, local, tribal, and law enforcement partners to identify, prioritize and investigate anyone who seeks to harm the most vulnerable among us."
The Tohono O’odham Police Department and the FBI Phoenix Division’s Tucson office conducted the investigation in this case. Assistant United States Attorneys Nathaniel J. Walters and Alessandra C. Bermudez, District of Arizona, Tucson, are handling the prosecution.
An indictment is a formal accusation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
CASE NUMBER: CR-25-03845-RM (EJM)
RELEASE NUMBER: 2025-150_Rivas# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Philadelphia Correctional Officers, Their Former Supervisor Charged in Connection with Violation of Inmate’s Constitutional RightsRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that three correctional officers and their former supervisor were arrested and charged by indictment, in connection with the violation of an inmate’s constitutional rights and an attempt to cover it up.
Jahaan Andrews, 34, Oneil Murray, 31, and Mumin Hart, 43, all of Philadelphia, Pennsylvania, were correctional officers (“C.O.s”) at the Curran-Fromhold Correctional Facility (“CFCF”). Georgia Malloy, 58, also of Philadelphia, was a lieutenant with the Philadelphia Department of Prisons (“PDP”) and the officers’ supervisor at CFCF.
The indictment alleges that, on or about October 6, 2020, Andrews detained Inmate 1, a pretrial detainee, in a holding room, purportedly because Inmate 1 was wearing the wrong color jumpsuit. Andrews, Murray, and Hart, along with C.O. Ronald Granville, charged elsewhere, and another C.O. subsequently removed Inmate 1 from the holding room and escorted him to his cell, to conduct a strip search of Inmate 1 and have him change into the correct jumpsuit.
The indictment further alleges that, once inside Inmate 1’s cell, the group of correctional officers ordered Inmate 1 to strip. Andrews, Murray, Hart, and Granville then punched, kicked and assaulted Inmate 1 numerous times, knocking him to the ground. As a result of the assault, Inmate 1 was hospitalized with injuries to his face, ribs, and scrotum, and had to undergo emergency surgery.
After any use of force by a C.O. against an inmate, PDP correctional officers who used force, and those who witnessed another C.O. use force, were required to complete reports about what happened, prior to the end of their shift.
The indictment alleges that, from about October 6, 2020, to October 31, 2020, the four defendants and Granville conspired to falsify records, with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the FBI.
As alleged, Andrews, Murray, and Hart wrote their use of force reports about the October 6 incident, and Malloy her investigation report, so that they exaggerated the aggressiveness of Inmate 1 and disclosed as little of the true nature of the force the C.O.s used against him as they believed was necessary, to avoid scrutiny of their conduct by their superior officers and others. The reports also falsely claimed that Granville did not use force in the October 6, 2020, incident.
All four defendants are charged with conspiracy.
Andrews is also charged with two counts of deprivation of rights under color of law, two counts of falsification of records, and making a false statement to the FBI.
Murray is also charged with two counts of deprivation of rights under color of law and two counts of falsification of records.
Hart is also charged with two counts of deprivation of rights under color of law and falsification of records.
Malloy is also charged with two counts of falsification of records.
If convicted, Andrews faces a maximum possible sentence of 70 years of incarceration, Murray a maximum possible sentence of 65 years of incarceration, and Hart and Malloy a maximum possible sentence of 45 years of incarceration.
The case was investigated by the FBI, with significant assistance from the Philadelphia Department of Prisons, and is being prosecuted by Assistant United States Attorneys Everett Witherell and Michael Miller.
The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.
Thomas Encil Blake Sentenced to 228 Months in Prison for Receiving and Producing Child Pornography with ToddlersRead the Press Release
DETROIT – Thomas Encil Blake, age 28, of Brownstown, Michigan, was sentenced today to 228 months in prison by Judge Laurie J. Michelson for production of child pornography and receipt of child pornography, United States Attorney Jerome F. Gorgon announced today. Blake received 60 months in prison for receipt of child pornography, which will be served concurrent to his 228-month sentence for producing child pornography with a six-year-old.
Gorgon was joined in the announcement by Matthew Stentz, Acting Special Agent in Charge of Homeland Security Investigations-Detroit.
Local law enforcement became aware of Blake in 2023 after the father of a 13-year-old girl found nude images of an adult man on his daughter’s phone. Local law enforcement reported the incident to Homeland Security Investigations (HSI), who identified Blake as living in Southeast Michigan. In February 2024, HSI executed a search warrant at Blake’s residence and discovered numerous devices containing over 8,000 images and over 6,000 videos of child pornography, including files depicting infants, toddlers, and bestiality. When interviewed by HSI, Blake admitted to downloading and sharing child pornography via social messaging applications.
Blake frequently babysat for individuals close to him, including children who were between approximately 5 and 6 years old. HSI later found videos and images on Blake’s iPhone that depicted Blake committing sex acts over and on top of the children while they slept.
“This wicked man produced the vilest materials. He committed appalling crimes against little children that were entrusted to his care. And then he was ensnared by the work of his hands. We are thankful for the justice that was delivered through this court,” U.S. Attorney Gorgon said.
“We will hold sexual predators accountable for the torment they inflict on innocent children,” said ICE HSI Detroit acting Special Agent in Charge Matthew Stentz. “Our HSI special agents will continue to investigate crimes of exploitation in collaboration with our law enforcement partners. We are working everyday toward justice for the victims and survivors of these crimes wherever they may be.”
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant United States Attorneys Zachary Zurek and Ann Nee. Restitution matters are being handled by Jessica Nathan.
Texas Mexican Mafia Felon Sentenced to 15 Years in Federal Prison for Possessing a FirearmRead the Press Release
DEL RIO, Texas – A Crystal City man was sentenced in a federal court in Del Rio to 180 months in prison for felon in possession of a firearm.
According to court documents, Mario Zavala, 39, was convicted for organized criminal activity with the Texas Mexican Mafia in August 2013. On Nov. 6, 2024, he was arrested on a warrant and admitted to possessing a loaded .40 caliber pistol in his residence. Additionally, Zavala had maintained his ties to the Texas Mexican Mafia and continued to distribute narcotics—namely cocaine and methamphetamine.
Zavala was indicted for one count of felon in possession of a firearm on Dec. 4, 2024, and he pleaded guilty March 5, 2025. U.S. District Judge Ernest Gonzalez presided over the court proceedings.
U.S. Attorney Justin R. Simmons for the Western District of Texas made the announcement.
ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Zavala County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Ashley Ellis-Dotson prosecuted the case.
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Stillwater Man Sentenced After Being Convicted of Possession of Methamphetamine with Intent to DistributeRead the Press Release
TULSA, Okla. – A Stillwater man was sentenced today after being convicted by a federal jury for Possession of Methamphetamine with Intent to Distribute. U.S. District Judge Sara E. Hill sentenced Flint Donavan Luster, 37, to 70 months imprisonment, followed by four years of supervised release.
According to evidence presented at trial, Luster was pulled over by a Tulsa County Sheriff’s deputy for a traffic violation in September 2023. The deputy discovered that the truck Luster was driving was stolen, and he was taken into custody. Upon searching the truck, deputies found a puzzle box that contained 437 grams of methamphetamine inside.
During the trial, law enforcement testified to a previous search warrant conducted on Luster's home. During that search, law enforcement found evidence that supported that Luster was distributing drugs, such as scales, firearms, cash, and additional methamphetamine. Further evidence presented at trial showed that Luster was buying methamphetamine in Tulsa and distributing it in smaller areas.
Luster will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Drug Enforcement Administration, Payne County Sheriff’s Office, and the Tulsa County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Adam Bailey and Attila Bogdan prosecuted the case.
Stamford Man Charged with Fentanyl and Cocaine Trafficking OffensesRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration for New England, and Stamford Police Chief Timothy Shaw today announced that BRANDON TURNER, also known as “Bizz,” 31, of Stamford, has been charged by federal criminal complaint with fentanyl and cocaine trafficking offenses.
Turner, who had been detained in state custody for unrelated offenses, appeared today before U.S. Magistrate Judge Maria E. Garcia in Bridgeport and was ordered detained.
As alleged in court documents and statements made in court, an investigation by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Stamford Police Department’s Narcotics and Organized Crime Unit identified Turner as a narcotics distributor. In July 2024, investigators made a controlled purchase of fentanyl from Turner. On April 21, 2025, employees of an apartment complex where Turner had been employed as a maintenance worker found a tool bag in a storage room that contained approximately 790 grams of fentanyl and one kilogram of cocaine. The investigation, which included a review of surveillance camera and the use of DNA analysis, determined that Turner had placed the bag in the storage room. A related court-authorized search of Turner’s vehicle revealed additional quantities of fentanyl and cocaine.
The complaint charges Turner with possession with intent to distribute 400 grams or more of fentanyl, an offense that carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and with possession with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
U.S. Attorney Sullivan stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The DEA’s Bridgeport HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Danbury, Norwalk, Stamford, and Stratford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings.
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 (OCDETF) and Project Safe Neighborhood (PSN).
St. Louis Man Sentenced to 27 Months in Prison for Pandemic Loan FraudRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a St. Louis man who fraudulently obtained more than $629,000 in pandemic relief loans to 27 months in prison and ordered him to repay the money.
Shahron Vaulx, 41, submitted eight fraudulent Paycheck Protection Program loan applications between May 2020 and June 2021, “essentially stealing money intended for those struggling with the pandemic,” a sentencing memo says. The applications, submitted in the names of Fortunnett Financial LLC, SD Incorporation LLC, SV Collections LLC and SD Marketing LLC, contained false information about monthly payroll and the number of company employees. Vaulx submitted fake tax forms to support the payroll and income claims, which were falsely inflated to increase the amount of the loans.
After the loans were approved, Vaulx withdrew cash, transferred money to others, made personal retail purchases and paid bills with the money. He later applied for loan forgiveness, falsely claiming that he used the loans on permissible business expenses.
“The only explanation for (Vaulx’) crime is greed,” the sentencing memo says, citing his substantial positive monthly cash flow and gross monthly income of $25,000 at the time of his crimes.
Judge Clark ordered Vaulx to repay $629,809.
“This case highlights the United States Secret Service’s commitment to aggressively target individuals who have taken advantage of federal pandemic programs,” said Special Agent in Charge Travis Gibson of the U.S. Secret Service - St. Louis Field Office.
Vaulx pleaded guilty in January to two counts of wire fraud.
The U.S. Secret Service investigated the case. Assistant U.S. Attorneys Gwen Carroll and Stephen Casey prosecuted the case.
St. Louis Felon Found Responsible for Detainee’s Fentanyl Overdose, Sentenced to 157 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Matthew T. Schelp on Wednesday sentenced a felon caught with a gun to 157 months in prison after finding him responsible for supplying the fentanyl that caused a fatal overdose in 2024.
Alantae Garner, 31, of St. Louis, pleaded guilty in June to being a felon in possession of a firearm. He admitted that on Nov. 17, 2023, St. Louis Metropolitan Police Department officers spotted him in the driver’s seat of a stolen 2019 Kia Rio. When officers approached, Garner walked away, then ran before being detained. Police found a loaded Taurus 9mm handgun in his bag. Garner admitted owning the gun and said he bought the Kia for $500.
Garner was arrested on the federal charge on July 25, 2024. During Wednesday’s sentencing hearing, evidence and testimony showed that while awaiting his first appearance in court, he supplied fentanyl to another detainee, who overdosed in a holding cell. Deputy U.S. Marshals attempted to revive the victim, but he later died at a hospital.
The St. Louis Metropolitan Police Department and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney J. Christian Goeke prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Rhode Island Business Owner Sentenced to Four Years in Prison for Money Laundering Conspiracy and Obstruction of JusticeRead the Press Release
BOSTON – The owner of a “virtual CFO” business from Rhode Island was sentenced yesterday in federal court in Boston for laundering tens of millions of dollars in proceeds from internet fraud schemes by creating shell companies and opening fraudulent business bank accounts.
Craig Clayton, 75, of Cranston, R.I., was sentenced by U.S. District Court Judge Richard G. Stearns to four years in prison to be followed by three years of supervised release. Clayton was also ordered to pay $40,000 in restitution. In May 2025, Clayton pleaded guilty to one count of money laundering conspiracy and one count of obstruction of justice. In February 2023, Clayton was arrested and charged by criminal complaint.
From 2019 to 2021, Clayton and others used his accounting and “virtual CFO” business, Rochart Consulting, as a front to launder the proceeds of internet fraud schemes. As part of the conspiracy, Clayton founded shell companies to open business bank accounts in Rhode Island and Massachusetts, through which he laundered the proceeds of internet fraud schemes on behalf of his foreign-based clients. In total, Clayton laundered more than $35 million. Clayton also instructed his foreign-based clients on how to structure deposits, draft wire memos concealing the nature of fund transfers and create false business documentation to justify account inflows and outflows.In communications with one of his Rochart co-conspirators, Clayton stated that because they were “money mules complicit in [Rochart’s clients’] offenses” that “opens [them] up to charges.” Additionally, in encrypted communications with one of his client co-conspirators, Clayton expressed concern that his phone was “tapped” by law enforcement and sought to obtain “dirt” on a victim who had reported the fraud scheme in order to “distract the police.” In another exchange with a co-conspirator, Clayton proposed moving their electronic communications to Signal, noting that WhatsApp “can be tapped.”
When banks and law enforcement began to investigate Rochart, Clayton falsely told investigators and bank personnel that his shell companies were legitimate businesses, among other things. Further, during a recorded conversation with an undercover law enforcement agent posing as a potential client, Clayton noted that Rochart does not “deal with anyone who has law enforcement connections” and that some of his business’s clients were “fugitives from justice.” After he became aware that a federal grand jury was investigating him, Clayton attempted to obstruct the ongoing investigation by making several false statements to federal agents during an interview.
United States Attorney Leah B. Foley; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement today. Valuable assistance was provided by the Internal Revenue Service, Criminal Investigation and the United States Postal Inspection Service. Assistant United States Attorneys Ian J. Stearns and Kaitlin R. O’Donnell of the Securities, Financial & Cyber Fraud Unit and Alexandra Amrhein of the Criminal Division prosecuted the case.
President of Queens-Based Construction Company Sentenced for Fraud in Connection with Homeless Shelter Contracts Worth $12 MillionRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that LIAQUAT CHEEMA, the leader of a fraudulent scheme to defraud New York City (the “City”) in connection with public contracts to perform general contracting work at City homeless shelters, was sentenced yesterday to four years in prison by U.S. District Judge Lorna G. Schofield. CHEEMA previously pled guilty to conspiracy to commit wire fraud on March 5, 2024, before U.S. Magistrate Judge Ona T. Wang.
“Liaquat Cheema stole millions of dollars in public funds intended to pay for maintenance at homeless shelters in New York City,” said U.S. Attorney Jay Clayton. “This Office has no tolerance for those who use public contracts intended to aid members of our society-in-need to fraudulently enrich themselves. We will aggressively pursue anyone who abuses public trust for personal profit.”
According to the Indictment to which CHEEMA pled guilty, the Complaint, the plea agreement, and statements made in court:
CHEEMA was the President of AFL Construction Co. Inc. (“AFL”), located in Queens, New York. AFL entered into public contracts with the City worth approximately $12 million to perform general contracting work at homeless shelters located in the City, including in the Southern District of New York. Pursuant to the contracts, AFL was to perform, among other things, general maintenance, landscaping, roofing, and snow removal at shelter sites.
From at least in or about 2014 through at least in or about 2017, CHEEMA and others used the contracts to fraudulently enrich themselves and steal from the City. In furtherance of the scheme, CHEEMA and others, among other things, submitted fraudulent invoices and other documentation in support of requests for payment on the contracts, which falsely claimed that workers had performed work on certain projects and inflated amounts paid by the defendants for materials purportedly used on such projects. These fraudulent invoices and supporting documentation contained, without authorization, the identities of other persons, including the names and, in at least one case, the Social Security number, of purported workers who in fact had not worked on the projects specified in the requests for payment submitted by CHEEMA and others.
CHEEMA and others also obtained tens of thousands of dollars’ worth of Medicaid benefits by repeatedly submitting fraudulent certifications, which underreported their actual incomes and accordingly enabled them to obtain Medicaid benefits for which they were not eligible. In support of requests for Medicaid benefits, CHEEMA and others repeatedly submitted nearly identical employment letters, which, among other misrepresentations, contained the name and purported signature of a purported “Project Manager” who, in fact, was deceased. In connection with his guilty plea, CHEEMA agreed to pay back the money misappropriated from Medicaid.
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In addition to the prison term, CHEEMA, 65, of East Elmhurst, New York, was sentenced to two years of supervised release and ordered to pay restitution and forfeiture in the amount of $3,267,811.
Mr. Clayton praised the outstanding investigative work of the U.S. Department of Labor Office of Inspector General and the New York City Department of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.
Praetorian Group International CEO pleads guilty to $200M bitcoin Ponzi schemeRead the Press Release
ALEXANDRIA, Va. – The Chief Executive Officer of a multi-level marketing and bitcoin trading firm pled guilty yesterday to wire fraud and money laundering for operating a Ponzi scheme that defrauded over 90,000 investors worldwide.
According to court documents, Ramil Ventura Palafox, 60, a dual citizen of the United States and the Philippines, owned and operated Praetorian Group International (PGI) and served as PGI’s Chairman, Chief Executive Officer, and chief promoter. Palafox falsely claimed that PGI was engaged in bitcoin trading, and he promised daily returns of 0.5 to 3%. PGI was not trading bitcoin at a scale capable of making the promised returns, however, and Palafox was paying the investors back with their own money or with funds received from other investors.
From December 2019 to October 2021, at least 90,000 investors worldwide invested more than $201,000,000 in PGI, including at least $30,295,289 in fiat currency and at least 8,198 bitcoin worth $171,498,528. As a result of Palafox’s actions, investors suffered losses totaling at least $62,692,007.
Palafox created a PGI website for investors to review their purported investment performance. From 2020 through 2021, Palafox caused the online portal to consistently and fraudulently misrepresent that victims’ investments were gaining value, misleading them to believe that their investments were profitable and secure.
Palafox spent money on expenses that served both personal purposes and to promote the fraudulent scheme. He spent approximately $3 million on 20 luxury vehicles, including automobiles by Porsche, Lamborghini, McClaren, Ferrari, BMW, Bentley, and others. Palafox spent approximately $329,000 on penthouse suites at a luxury hotel chain and purchased four homes in Las Vegas and Los Angeles worth more than $6 million. Palafox spent another $3 million of investors’ money to buy clothing, watches, jewelry, and home furnishings at luxury retailers, including Louboutin, Neiman Marcus, Gucci, Versace, Ferragamo, Valentino, Cartier, Rolex, and Hermes, among others. He transferred at least $800,000 in fiat currency, plus an additional 100 bitcoin, then valued at approximately $3.3 million, to one of his family members.
Palafox is scheduled to be sentenced on Feb. 10, 2026, and faces up to 40 years in prison. As part of his plea agreement, Palafox has agreed to pay restitution of $62,692,007. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Reid Davis, Special Agent in Charge of the FBI Washington Field Office's Criminal Division; and Kareem A. Carter, IRS Criminal Investigation Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Jack Morgan, Zoe Bedell, and Annie Zanobini are prosecuting the case.
Case updates and additional information for victims of PGI, who may be entitled to restitution payments, can be found here.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-52.
This release was revised on Sept. 19, 2025, to update the sentencing date.
Portland Man Sentenced for Illegally Possessing a FirearmRead the Press Release
PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for being a felon in possession of a firearm.
U.S. District Judge Nancy Torresen sentenced Mohamud Abdullahi, 32, to 75 months in prison to be followed by 3 years of supervised release. Abdullahi pleaded guilty on August 19, 2024.
According to court records, on November 23, 2023, the Portland Police Department received reports of shots fired near the intersection of Commercial and Cross streets. A caller described the suspect pulling a firearm from his waistband and firing two shots into the air before getting into a vehicle, and also described the vehicle. The descriptions were later confirmed by security camera footage from a nearby building. Responding officers recovered two spent 9mm shell casings from the scene, and the vehicle was intercepted by South Portland police after it crossed the bridge into South Portland. After a brief attempt to flee, Abdullahi was arrested. The firearm used in the shooting was recovered the next day from the front lawn of a residence near where the vehicle was stopped.
Abdullahi was precluded from possessing firearms because of his prior convictions for assault and aggravated criminal trespass in 2017, and unlawful trafficking of scheduled drugs in 2011.
The FBI, Portland Police Department, and South Portland Police Department investigated the case.
Project Safe Neighborhoods: 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 Childhood, visit https://www.justice.gov/usao-me/psn.
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Poplar men plead guilty to sexual abuse on the Fort Peck Indian ReservationRead the Press Release
GREAT FALLS - A pair of Poplar men who sexually abused their victim on the Fort Peck Indian Reservation admitted to charges this week, U.S. Attorney Kurt Alme said.
Chandler Duran Longtree, 19, and Payton Robert Richard Montclair, 19, each pleaded guilty to one count of sexual abuse. Each defendant faces life imprisonment, a $250,000 fine, and 5 years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Longtree’s sentencing was set for January 14, 2026. Montclair’s sentencing was set for January 21, 2026. Both defendants were detained pending further proceedings.
The government alleged in court documents that on January 18, 2025, Jane Doe was drinking with a group of young people. She eventually separated from her friend and went with the defendants, Chandler Longtree and Payton Montclair, both 18 at the time, to Longtree’s house. While at the house, she was sexually assaulted by Longtree and Montclair. Doe reported the assault and underwent an exam from a Sexual Assault Nurse Examiner (SANE), which revealed evidence consistent with a sexual assault.
Assistant U.S. Attorney Kalah Paisley prosecuted the case. The FBI and Fort Peck Tribes Department of Law and Justice conducted the investigation.
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Penn Hills Man Who Crashed Vehicle into FBI Security Gate Charged with Assault with a Deadly Weapon and Damaging Government PropertyRead the Press Release
PITTSBURGH, Pa. – Donald Phillip Henson, 46, of Penn Hills, Pennsylvania, has been charged by federal criminal complaint with forcibly assaulting, resisting, opposing, impeding, intimidating, or interfering with a governmental officer or employee and damaging government property, Acting United States Attorney Troy Rivetti announced today. Henson was apprehended and arrested this morning after he intentionally drove his vehicle into a security gate next to a manned security booth outside of the Federal Bureau of Investigation’s Pittsburgh Field Office and then fled on foot.
“Today, we commend the Federal Bureau of Investigation and our law enforcement partners for their outstanding work in quickly apprehending Donald Henson following his violent and destructive assault this morning,” said Acting United States Attorney Rivetti. “Our office remains vigilant and stands in solidarity with our law enforcement colleagues in response to any attack—whether to their persons or to their property.”
According to the affidavit filed in support of the complaint, at 2:40 a.m. on September 17, 2025, Henson rammed his vehicle into a security gate protecting the FBI Pittsburgh Field Office complex, directly next to a security booth that is staffed 24 hours a day. Following the crash, Henson exited the vehicle and walked to the driver’s side rear door, from which he retrieved an American flag that he then placed on the damaged gate. Henson then departed the area, with the incident having been captured on FBI and several area businesses’ security camera footage.
Upon Henson’s apprehension by law enforcement, he admitted to the FBI that he knew that there was a guard in the security booth at the time he drove his vehicle into the gate and that he rammed the security gate to “make a statement.” He also stated “sic semper tyrannis,” a Latin phrase meaning “thus always to tyrants” that is famously associated with John Wilkes Booth, who is said to have shouted the phrase after assassinating President Abraham Lincoln. Read the affidavit in support of the criminal complaint here.
The penalties for violation of Title 18, United States Code, Section 111(a)(1) and (b)—Assaulting, Resisting, or Impeding a Governmental Officer or Employee—are up to 20 years in prison, a fine of up to $250,000, or both. The penalties for violation of Title 18, United States Code, Section 1361—Damaging Government Property or Contracts—are tied to the extent of the property damage. If the damage exceeds $1,000, the defendant is subject to up to 10 years of imprisonment, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Vasquez Schmitt is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the criminal complaint against Henson. The University of Pittsburgh Police and Pittsburgh Bureau of Police assisted in the apprehension of Henson.
A criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pensacola Man Pleads Guilty to Narcotics and Firearms ChargesRead the Press Release
PENSACOLA, FLORIDA – Akeem Cornell Shaw, 39, of Pensacola, Florida, pleaded guilty in federal court to possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking offense, possession of a firearm by a convicted felon, and possession of an unregistered firearm (short-barreled shotgun). The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “I am incredibly proud of the continued excellence demonstrated by the Escambia County Sheriff’s Office and our federal law enforcement partners to investigate this repeat offender and help bring him to justice. The hardworking prosecutors in my office are committed to using the full force of the law to keep our streets safe, and we will fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America from the criminals victimizing our communities.”
Court documents reflect that in February 2025 law enforcement executed a search warrant at Shaw’s residence in Pensacola, Florida. In Shaw’s bedroom, officers located multiple loaded firearms, including a short-barreled shotgun, fentanyl, cocaine, methamphetamine, ammunition, and other items indicative of drug distribution. Shaw is a convicted felon, who has previously been convicted of several narcotics related offenses, including Possession of Heroin with Intent to Sell.
Shaw faces up to life imprisonment.
The case involved a joint investigation by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.
Sentencing is scheduled for December 11, 2025, at 9:00 am at the United States Courthouse in Pensacola before United States District Judge T. Kent Wetherell, II.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner of New Jersey Businesses Sentenced to 41 Months in Prison for Fraudulently Obtaining over $3.2 Million in Paycheck Protection Program LoansRead the Press Release
TRENTON, N.J. – An owner of several New Jersey businesses was sentenced yesterday to 41 months in prison for fraudulently obtaining over $3.2 million in federal Paycheck Protection Program (PPP) loans, Acting U.S. Attorney and Special Attorney Alina Habba announced.
Daniel Dadoun, 49, of Israel, formerly of South Plainfield, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court on April 8, 2025, to an Information charging him with bank fraud and money laundering. U.S. District Judge Robert Kirsch imposed the sentence yesterday in Trenton federal court.
According to documents filed in this case and statements made in court:
From April 2020 through August 2022, Dadoun engaged in a scheme to illegally obtain over $3.2 million in PPP loans for his New Jersey businesses by submitting false and fraudulent loan applications. After receiving the PPP loan proceeds, Dadoun sought to keep the money by submitting false and fraudulent PPP loan forgiveness applications that misrepresented payroll expenses and the number of employees working at his companies. In support of the loan and loan forgiveness applications, Dadoun submitted falsified tax documents and altered bank statements.
In addition to the prison term, Judge Kirsch sentenced Dadoun to three years’ supervised release and ordered restitution of $3,239,773.
Acting U.S. Attorney and Special Attorney Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Michael S. McCarthy, special agents of IRS – Criminal Investigation, New York Field Office, under direction of Special Agent in Charge Harry T. Chavis, Jr., special agents of the Social Security Administration – Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly, and special agents of the U.S. Attorney’s Office for the District of New Jersey, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Katherine M. Romano of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Defense counsel: Anthony J. Pope, Jr., Esq.
Owner of Buckhead Brothel Sentenced to Federal PrisonRead the Press Release
ATLANTA - Jamika Weese, a/k/a Jae, was sentenced to federal prison for operating a brothel out of an Atlanta apartment from which she transported women to other states for commercial sex. Weese also fraudulently obtained nearly $70,000 worth of federal loans intended to assist legitimate businesses during the COVID-19 pandemic.
“Weese ran a prostitution ring, trafficked women, and lied to collect tens of thousands of dollars in federal loans,” said U.S. Attorney Theodore S. Hertzberg. “Her conviction and sentence demonstrate that criminals who exploit vulnerable victims and rip off the government will be held accountable for their crimes.”
“This case represents why sex trafficking is such a high priority matter for the FBI and our law enforcement partners,” said FBI Atlanta Special Agent in Charge Paul Brown. “Weese repeatedly took advantage of vulnerable victims, first in her sex trafficking operation, then as she fraudulently obtained funds designed to help those suffering during the pandemic. This case should resonate with those who might consider this reprehensible criminal conduct acceptable.”
“This sentencing underscores the commitment of Homeland Security Investigations to dismantling criminal networks that exploit vulnerable individuals for financial gain," said Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama Steven N. Schrank. “Through collaborative efforts with our law enforcement partners, we were able to bring Ms. Weese to justice, ensuring accountability for her actions and protection for those she victimized. HSI will continue to prioritize investigations that target exploitation and fraud schemes that harm our communities and undermine public trust.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: Before the Super Bowl in February 2019, the Metro Atlanta Child Exploitation Task Force and other law enforcement officers received reports that Weese was operating a commercial sex trafficking ring in the metro Atlanta area. The officers were told that Weese physically abused and even threatened at gunpoint some of the women who she forced to engage in sex work.
On June 28, 2019, the FBI and Homeland Security Investigations coordinated with the Fulton County Sheriff’s Office to conduct an undercover operation at a Buckhead apartment where Weese was operating a brothel. Law enforcement searched the apartment and seized evidence that confirmed Weese posted commercial sex advertisements online, directed women to receive clients at the apartment, and imposed a quota for their earnings, more than half of which Weese took for herself. From 2017 through 2019, Weese repeatedly arranged for the women to travel to other states (including Arizona, Colorado, South Carolina, Texas, and Florida) to engage in prostitution for her own financial benefit. Weese was arrested by local authorities but released the same day.
Later, the FBI learned that Weese fraudulently obtained a $48,900 Economic Injury and Disaster Loan and $20,000 Paycheck Protection Program loan in 2020 and 2021 after misrepresenting that she had earned her income from a cosmetics company. Weese was indicted and rearrested in 2023.
Weese, 42, of Atlanta, Ga., has been sentenced to five years in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $69,000 and to register as a sex offender. On May 14, 2024, Wease pleaded guilty to one count of transporting an individual interstate for the purpose of prosecution and one count of wire fraud.This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations with assistance from the Fulton County Sheriff’s Office and Gwinnett County Police Department.
Assistant United States Attorney Laurel B. Milam and former Assistant U.S. Attorney Irina Khasin prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Orlando Man Sentenced to 20 Years in Federal Prison for Transporting Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Matthew Anthony Inman (40, Orlando) to 20 years in federal prison, the statutory maximum, for transportation of child sexual abuse material (CSAM). Inman pleaded guilty on June 5, 2025.
According to court documents, between August and October 2024, Inman received, downloaded, and saved several videos of CSAM to his phone. These videos depicted adult males raping young boys. In October 2024, Inman traveled to Las Vegas and began talking online with an undercover law enforcement officer who was posing as the father of a 9-year-old boy. During this conversation, in which Inman used an encrypted messaging service to evade law enforcement, Inman explained that he sought to sodomize the purported child. He asked the undercover officer for pictures and videos of the child, and in return, sent seven CSAM videos to the undercover officer, saying “hope you like” and that he had “lots of videos if you want to watch.”
Through its investigation, the FBI identified Inman as the user of the messaging service and obtained a search warrant for Inman’s electronic devices and residence. During the execution of the search warrant, Inman attempted to delete the evidence from his phone and hide in the attic of his house.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Richard Varadan.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Oklahoma City Man Pleads Guilty to Federal Hate Crime ViolationRead the Press Release
Braden Birdsong, 28, of Oklahoma City, Oklahoma, appeared before U.S. District Court Judge Bernard M. Jones for the Western District of Oklahoma today and pleaded guilty to a federal hate crime violation.
According to filed plea documents and today’s court hearing, on Aug. 25, 2023, Birdsong, a white man, attacked D.G., a black man, while D.G. was cleaning the parking lot of the Oklahoma City restaurant at which he worked. Birdsong used racial slurs and other anti-black rhetoric as he punched D.G. in the head multiple times. D.G. suffered bodily injury because of the attack. As Birdsong admitted in court today, he assaulted D.G. because of D.G.’s race and color.
Birdsong faces a maximum penalty of 10 years in prison and three years of supervised release for the hate crime violation. U.S. District Court Judge Jones will determine Birdsong’s final sentence after considering the U.S. Sentencing Guidelines and other statutory factors at a later date. Birdsong will remain in federal custody pending the future sentencing hearing.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Douglas M. Goodwater of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorneys Laura Gilson and Taylor Payne of the Civil Rights Division’s Criminal Section are prosecuting the case.
Oklahoma City Man Pleads Guilty to Federal Hate Crime ViolationRead the Press Release
OKLAHOMA CITY – BRADEN BIRDSONG, 28, of Oklahoma City, appeared before U.S. District Court Judge Bernard M. Jones for the Western District of Oklahoma today and pleaded guilty to a federal hate crime violation.
According to filed plea documents and today’s court hearing, on August 25, 2023, Birdsong, a white man, attacked D.G., a black man, while D.G. was cleaning the parking lot of the Oklahoma City restaurant at which he worked. Birdsong used racial slurs and other anti-Black rhetoric as he punched D.G. in the head multiple times. D.G. suffered bodily injury because of the attack. As Birdsong admitted in court today, he assaulted D.G. because of D.G.’s race and color.
Birdsong faces a maximum sentence of 10 years in prison and 3 years of supervised release for the hate crime violation. U.S. District Court Judge Jones will determine Birdsong’s final sentence after considering the U.S. Sentencing Guidelines and other statutory factors at a later date. Birdsong will remain in federal custody pending the future sentencing hearing.
Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, U.S. Attorney Robert J. Troester for the Western District of Oklahoma, and Special Agent in Charge Douglas M. Goodwater of the FBI Oklahoma City Field Office made the announcement.
The FBI Oklahoma City Field Office investigated the case.
Assistant U.S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorneys Laura Gilson and Taylor Payne of the Civil Rights Division’s Criminal Section are prosecuting the case.
Ohio Man Sentenced to Prison for Money LaunderingRead the Press Release
CHARLESTON, W.Va. – Jack Paskin, 35, of Cleveland Heights, Ohio, was sentenced on Tuesday, September 16, 2025, to nine months in prison, to be followed by three years of supervised release, for money laundering. Paskin participated in the laundering of approximately $337,000 in proceeds from the illegal sale of controlled substances.
According to court documents and statements made in court, from in or about mid-summer 2019 to on or about August 31, 2020, Paskin facilitated the shipment of wholesale quantities of marijuana to Mullens, West Virginia. Paskin admitted that the shipments were directed to addresses provided by Merrick Rice, who then obtained the marijuana packages following their delivery. Paskin further admitted that he knew Rice sold the marijuana to other individuals who then distributed it within the Southern District of West Virginia.
Proceeds from Rice’s sale of the marijuana were deposited into bank accounts that Paskin individually controlled or had signatory authority over. On February 24, 2021, Paskin withdrew $30,000 in cash from one of the bank accounts he knew held proceeds from Rice’s marijuana sales. Paskin admitted that he knew that the $30,000 and the other deposited funds represented proceeds from illegal drug sales in the Southern District of West Virginia.
Rice, 45, of Mullens, and Miranda Aliff, 33, of Rock Creek, both pleaded guilty on May 7, 2024, to structuring transactions with one or more domestic financial institutions. Rice and Aliff admitted to structuring bank deposits of the illicit drug proceeds totaling $228,000 to evade currency transaction reporting requirements. On October 21, 2024, Rice was sentenced to one year and three months in prison, to be followed by three years of supervised release, and Aliff was sentenced to five years of federal probation.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the U.S. Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA).
Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jonathan T. Storage prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-122.
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Multiple time convicted felon and habitual re-enterer sentenced to 45 monthsRead the Press Release
HOUSTON – A 38-year-old Mexican national who unlawfully resided in Houston has been ordered to federal prison for illegally reentering the country for the sixth time, announced U.S. Attorney Nicholas J. Ganjei.
Bartolo Saucedo-Patino pleaded guilty June 11.
U.S. District Judge Andrew S. Hanen has now ordered Saucedo-Patino to serve a total of 45 months in federal prison – 32 months for this offense plus an additional 13 months for violating his supervised release for his prior conviction for illegal reentry. In handing down the sentence, the court considered the dangerousness of his other crimes, lack of respect for the law and need for deterrence. Not a U.S. citizen, he is again expected to face removal proceedings following his imprisonment.
Saucedo-Patino has multiple felony convictions to include assault of a family member, assault for intentionally or recklessly impeding breathing or circulation, failure to stop and provide information, possession of marijuana, two for possession of cocaine as well as another conviction for illegal reentry into the country.
He was first removed in September 2007, repeatedly returned unlawfully and removed eight times. Authorities encountered him again May 27, 2024, in Houston.
He has been and will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
Immigration Customs Enforcement – Enforcement Removal Operations conducted the investigation. Special Assistant U.S. Attorney Carrie Law prosecuted the case.
Mosque Arsonist Pleads Guilty in Federal CourtRead the Press Release
MINNEAPOLIS – Jackie Rahm Little, age 38, pled guilty today to one count of arson and one count of damage to religious property, announced Acting U.S. Attorney Joseph H. Thompson. In April 2023, Little set fire to the Masjid Al-Rahma Mosque in Bloomington, Minnesota, and the Masjid Omar Islamic Center in Minneapolis, Minnesota.
“When someone sets fire to a house of worship, it is not only a federal crime, it is an attack on the heart of a community,” said Acting U.S. Attorney Joseph H. Thompson. “Minnesota has endured too many assaults on our sacred spaces. Such hatred and destruction will always be met with federal prosecution as we continue to defend everyone’s right to worship in safety and peace.”
On April 24, 2023, Little traveled to the Masjid Al-Rahma Mosque (also known as the Mercy Islamic Center) in Bloomington, Minnesota, a public place of worship. Little carried with him a container of gasoline or other ignitable liquid, and after he entered the Mosque, used it to set fire to the Mosque’s third floor hallway and stairwell. The Mosque had to be evacuated, including the evacuation of children who were attending daycare. The resulting damage to the Mosque totaled more than $378,000.
The day prior, on April 23, 2023, Little started a fire in the bathroom of the Masjid Omar Islamic Center in Minneapolis, Minnesota, also a public place of worship. Little lit a cardboard box on fire inside of a bathroom stall and intended to leave it there for the rest of the building to ignite. Fortunately, Little was interrupted by an employee and the defendant fled leaving partially burned cardboard and a gas cannister behind.
Little pled guilty today, before District Judge Ann D. Montgomery. He will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.
Minnesota Woman Pleads Guilty in $2 Million Counterfeit Medical Devices CaseRead the Press Release
MINNEAPOLIS – Tammy Wadsworth, age 63, pled guilty today to possessing altered, forged, or counterfeit medical products, announced Acting U.S. Attorney Joseph H. Thompson. Wadsworth, the founder of a pain clinic, defrauded more than a dozen franchise owners through a sophisticated fraud scheme involving microcurrent therapy provided at franchise treatment centers across the United States. She then attempted to conceal her fraud scheme by laundering significant portions of the money she fraudulently obtained from franchise owners.
“Wadsworth is a modern-day snake oil salesman,” said Acting U.S. Attorney Joseph H. Thompson. “Fraud that exploits families searching for answers is among the most shameless crimes we see. It is theft dressed up as innovation. Wadsworth now joins the long line of Minnesota fraudsters who will see federal justice.”
Wadsworth is the founder and owner of Pain, Injury and Brain Centers of America (“PIBCOA”). PIBCOA was a Minnesota limited liability company located in Winona, Minnesota. PIBCOA had clinics and offices throughout the United States.
Wadsworth and PIBCOA claimed to provide a treatment called “A.I. Myoneurvascular Therapy” that, using artificial intelligence and low voltage electricity, would restore degenerative cells to healthy, fully functioning cells. This claim was false. The treatment involved the application of electrodes to the patient’s skin that, when the system was turned on, would deliver various levels of electrical currents to the patient. Wadsworth falsely claimed that A.I. Myoneurvascular Therapy could be used to treat virtually any type of disease, disorder, or condition with a 95% success rate, including Lupus, Crohn’s Disease, Depression, Infertility, Parkinson’s Disease, Alzheimer’s Disease, Multiple Sclerosis, and Autism.
Starting in May 2017, Wadsworth devised a scheme to recruit franchise owners to open clinics and provide A.I. Myoneurvascular Therapy to patients around the country. Wadsworth pitched franchise owners with her false claims that A.I. Myoneurvascular Therapy was “state-of-the-art technology” that “treats the untreatable.”
Wadsworth trained franchisees on use of PIBCOA’s equipment and treatment and sold them expensive medical devices and gels that Wadsworth claimed were developed solely for PIBCOA to provide A.I. Myoneurvascular Therapy. In reality, the devices Wadsworth sold to franchise owners had serial numbers, manufacturer information, and product information removed or covered up. Wadsworth refaced the equipment and replaced the manufacturer’s label with a PIBCOA label to pretend that it was her own. Additionally, PIBCOA’s A.I. Myoneurvascular Therapy was not only unsuccessful in treating the diseases and conditions as promised by Wadsworth, but in many cases, the treatment caused injuries to the franchise owners and patients, including burns, scars, and severe nausea.
Wadsworth promised the franchise owners a “great source of revenue.” Wadsworth charged franchise owners between $60,000 and $250,000 to open PIBCOA franchises. After discovering Wadsworth’s false representations both with respect to the equipment they purchased and the use of such equipment to treat patients, all the franchise owners were forced to shut down their businesses. Many incurred substantial financial losses.
In total, the defendant’s actions caused $887,061 in actual loss and as much as more than $2 million in total loss to PIBCOA franchise owners, including payments directly to Wadsworth for equipment, royalties, and franchising costs as well as financial losses associated with the closure of franchisees’ unsuccessful PIBCOA businesses. She primarily used the money to purchase real estate, including a house in Nevada, a Mercedes Benz, and fund her extravagant lifestyle.
Wadsworth pled guilty today. She will be sentenced at a later date.
“U.S. consumers rely on the FDA to ensure that their medical devices are safe and effective and bear true and accurate labeling for their intended uses,” said Special Agent in Charge Ronne Malham of the FDA’s Office of Criminal Investigations Chicago Field Office. “We will continue to investigate and bring to justice those who threaten the health of consumers by evading federal requirements.”
This case is the result of an investigation conducted by the FDA Office of Criminal Investigations.
Assistant U.S. Attorney Rebecca E. Kline is prosecuting the case.