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14 September 2026
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Nigel Jamille Coats, 22, of Huntington, pleaded guilty today to distribution of quantities of fentanyl.
According to court documents and statements made in court, on November 13, 2025, Coats sold approximately 22 grams of fentanyl to a confidential informant in exchange for $1,200 in Huntington. As part of his guilty plea, Coats admitted to the transaction and further admitted to selling approximately 18.12 grams of fentanyl on November 6, 2025, and approximately 18.12 grams of fentanyl on December 31, 2025, each time to a confidential informant in exchange for $1,200. On January 6, 2026, law enforcement officers executed a search warrant at Coats’ Huntington residence and seized approximately 18 grams of fentanyl.
Coats also admitted to arranging the sale of approximately 21.57 grams of fentanyl by co-defendant Wesley Tramaine Cornish to a confidential informant in exchange for $1,200 on December 16, 2025.
Coats is scheduled to be sentenced on January 11, 2027, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a fine of up to $1 million.
Cornish, 22, of Huntington, pleaded guilty on August 31, 2026, to possession with intent to distribute a quantity of fentanyl and possession of firearms in furtherance of a drug trafficking crime and is scheduled to be sentenced on January 19, 2027.
United States Attorney Moore Capito made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Police Department, and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Sarah N. Hudson and Joseph F. Adams are prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
This case is also part of Project Safe Neighborhoods (PSN), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
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. 3:26-cr-22.
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Honduran man arrested, charged with assaulting a border patrol agentRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Esli Osman Diaz-Bejarano, 28, a native of Honduras, was arrested and charged by criminal complaint with assaulting, resisting, or impeding certain officers, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
On September 2, 2026, Customs and Border Protection, Border Patrol agents encountered Diaz on St. Joseph Road in Niagara Falls, NY, during an immigration enforcement action. As agents attempted to interview Diaz, he fled on foot. Agents then attempted to apprehend Diaz, who resisted their efforts to restrain him. He was brought to the ground after repeatedly pulling his arms away. During the struggle, Diaz bit the left wrist of an agent, causing a bleeding laceration. The agent was treated at DeGraff Memorial Hospital for the bite injury.
Diaz made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained.
The case is being prosecuted by Special Assistant U.S. Attorney Brendan W. Fitzgerald. The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Anthony Patrone, and U.S. Border Patrol, under the direction of Acting Chief Patrol Agent James D’Amato.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Homeland Security Task Force Operation Leads to Three Luzerne County Men Convicted of Drug Trafficking OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerrod Curtis, age 42, Paul Daniel Chavis, a/k/a “Payne,” age 56, and Reneard Harris, age 68, all of Wilkes-Barre, Pennsylvania, were convicted on September 10, 2026, for conspiracy to distribute controlled substances and other drug trafficking offenses following a two-week trial before United States District Judge Joseph F. Saporito, Jr.
According to United States Attorney Brian D. Miller, Curtis operated a drug-trafficking organization from his barbershop in Wilkes-Barre, PA. Between February of 2024 through June of 2024, he and the other defendants conspired to distribute large amounts of controlled substances, including cocaine, cocaine base, methamphetamine, and fentanyl. The jury further found that defendants committed the following criminal offenses during the course of the conspiracy:
- On January 22, 2025, Chavis distributed and possessed with intent to distribute five grams and more of actual methamphetamine;
- On April 15, 2025, Chavis distributed and possessed with intent to distribute a quantity of methamphetamine;
- On April 19, 2025, Curtis and Harris used a communication facility to facilitate the commission of a drug trafficking crime; and
- On April 30, 2025, and May 26, 2025, Curtis used a communication facility to facilitate the commission of a drug trafficking crime.
During the investigation, DEA and other law enforcement agents recovered over 10 kilograms of fentanyl from members of the conspiracy as well as large quantities of other controlled substances.
This operation is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF comprises agents and officers from Drug Enforcement Administration, the Wilkes-Barre City Police Department, the Wilkes-Barre Township Police Department, the Pennsylvania State Police, the Luzerne County Drug Task Force, and the Luzerne County District Attorney’s Office with the prosecution being led by the United States Attorney’s Office for the Middle District of Pennsylvania.
Assistant U.S. Attorneys James M. Buchanan and Anthony Williamson prosecuted the case.
In this case, the maximum penalty is life imprisonment. A sentence following the finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Hermitage Felon Pleads Guilty to Unlawful Possession of FirearmRead the Press Release
PITTSBURGH, Pa. - A resident of Hermitage, Pennsylvania, pleaded guilty in federal court to a charge of possessing a firearm after a felony conviction, United States Attorney Troy Rivetti announced today.
Marryon Hopson Savage, 28, pleaded guilty before United States District Judge William S. Stickman IV.
In connection with the guilty plea, the Court was advised that, on January 15, 2025, Hopson Savage possessed a firearm after previously having been convicted of a felony. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Judge Stickman scheduled sentencing for January 26, 2027. The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Hermitage Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Hopson Savage.
Hartford Group Charged with Kidnapping and Related OffensesRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella today announced that TYQUAN DECHALUS, also known as “Ty Ty” and “Kuzzo Ty,” 26; MICHAEL PHILLIP SQUIREWELL, also known as “Hoola,” “Hoola Gang,” and “Trench Monkey,” 30; DWAYNE GRAHAM, also known as “Bizzy,” 24; NICKOLAZ ROBINSON, also known as “Luck” and “Lucky,” 23; and DIAMOND FUENTES, also known as “Didi” and “Lil Belly,” 19; all of Hartford, have been federally charged for their alleged involvement in a kidnapping and ransom demand in January 2026.
As alleged in the indictment, Dechalus, Squirewell, Graham, Robinson, and Fuentes conspired to kidnap and hold for ransom a victim in Hartford. On January 26 and 27, 2026, Dechalus, Squirewell, and Robinson exchanged text messages in which they discussed needing money and marijuana and then targeted the victim. On January 28, 2026, Graham had Fuentes lure the victim to a residence on Laurel Street in Hartford where the victim was kidnapped at gunpoint and pistol whipped. Dechalus, Graham, Squirewell, and Robinson then broke into the victim’s residence looking for marijuana and money. They then demanded money from the victim’s family in exchange for his safe return. Fuentes then picked up money left for the kidnappers by the victim’s family.
Hartford Police arrested Dechalus, Squirewell, and Graham on state charges on January 28, 2026. It is alleged that Dechalus and Squirewell each possessed a firearm, and Dechalus possessed a distribution quantity of cocaine, when they were arrested.
On September 9, 2026, a federal grand jury returned an indictment charging each of the five defendants with conspiracy, which carries a maximum term of imprisonment of five years, and with kidnapping, which carries a maximum term of imprisonment of life. Dechalus is also charged with possession with intent to distribute cocaine, which carries a maximum term of imprisonment of 20 years, unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 15 years, and possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years. Squirewell is also charged with unlawful possession of a firearm by a felon, and Fuentes is charged with receiving and possessing ransom money, which carries a maximum term of imprisonment of 10 years.
Robinson and Fuentes were arrested on September 10, 2026, entered pleas of not guilty to the charges, and were released on bonds of $150,000 and $50,000, respectively. Dechalus is currently in state custody and Graham is in federal custody having been previously charged with an unrelated firearm offense. Squirewell is currently being sought by law enforcement.
U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members from the Connecticut State Police, the Connecticut Department of Correction, and the East Hartford, Hartford, New Britain, West Hartford, Wethersfield, and Newington Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Sean P. Mahard and Reed Durham.
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.
HSTF Investigation Leads to Criminal Indictment of Prominent Pill Press Company and Arrest of Principal ManagersRead the Press Release
TUCSON, Ariz. – On Sep. 9, 2026, Special Agents of the Drug Enforcement Administration, Tucson District Office, conducted a multi-state enforcement operation resulting in the arrest of Alastair Mark Sanderson, 39, of Overland Park, Kansas; William Robert Norris, 43, of Westworth Village, Texas; and Michael Christian Packard, 36, of Fort Worth, Texas. Sanderson and Norris are the principal managers of LFA Machines DFW, LLC. Packard is a former long-time employee of LFA.
Based in Fort Worth, Texas, LFA Machines sells a variety of tableting machines and other products to customers across the United States. Often called pill presses, tableting machines are used to compress powder formulations into pill form, creating pills of uniform size, shape, and weight. LFA Machines sells a line of desktop tablet presses that are low cost and can produce up to 5,000 tablets per hour. The distribution, importation, and exportation of tableting machines is regulated under federal law and encompasses stringent know-your-customer requirements.
LFA Machines also sells a product called Firmapress. Firmapress is a binding agent added during the manufacturing process that helps ingredients blend smoothly, flow easily as powders, and bind together to form durable pills or tablets. LFA Machines advertises that Firmapress, which is available in multiple colors, enables “entrepreneurs, home users or businesses [to] pick out an active ingredient, add Firmapress and have a pharmaceutical grade tablet from day one.” These qualities make LFA’s products ideal for use in clandestine illicit drug labs.
The DEA has identified the proliferation of pill press machines as an emerging threat. Drug traffickers use pill presses to press fentanyl into pills and punches and dies to imprint markings and logos onto those pills, producing pills that look like legitimate prescription medication—like oxycodone, Xanax, and Adderall—when those pills, in fact, contain fentanyl, methamphetamine, and other deadly drugs. In 2025, the DEA seized more than 47 million fentanyl-laced fake pills and nearly 10,000 pounds of fentanyl powder.
Over the course of a multi-year investigation, federal investigators not only recovered LFA’s pill presses and other products from multiple clandestine labs around the United States, but developed evidence showing that Sanderson, Norris, and Packard conspired to and did sell LFA’s products to customers knowing, intending, or having reasonable cause to believe that they would be used to manufacture illicit controlled substances.
On August 21, a federal grand jury in Tucson returned a six-count indictment against LFA Machines, Sanderson, Norris, and Packard alleging one count of Conspiracy to Unlawfully Manufacture, Distribute, Export, and Import Tableting Machines, Equipment, Chemicals, Products, and Materials; two counts of Unlawfully Distributing Chemicals, Products, and Materials; and three counts of Unlawfully Distributing a Tableting Machine. A conviction for each of these crimes carries a maximum penalty of four years in prison and a fine of up to $250,000 for the individual defendants and, for LFA Machines, a fine of up to $500,000 or twice the gross pecuniary gain derived from the offense, whichever is greater.
The DEA’s Tucson District Office and SPEAR group led the investigation.
This investigation and prosecution are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.
HSTF Arizona comprises agents and officers from HSI, U.S. Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO), U.S. Border Patrol, the FBI, DEA, U.S. Marshals Service, IRS-Criminal Investigation, U.S. Postal Inspection Service, U.S. Secret Service, the Bureau of Land Management, Arizona Department of Public Safety, Tucson Police Department, Pima County Sheriff’s Office, Oro Valley Police Department, Marana Police Department, and Arizona HIDTA. Assistant U.S. Attorney Michael R. Lizano, District of Arizona, Tucson, is 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: 26-CR-04376-TUC-AMM
RELEASE NUMBER: 2026-157_LFA Machines, et al.# # #
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.Former U.S. Navy Sailors Plead Guilty to Selling Fentanyl-Laden Pills to Servicemembers Assigned to the USS Abraham LincolnRead the Press Release
SAN DIEGO – Former sailors Bailey A. Szramowski and Johnnese H. Poomaihealani pleaded guilty in federal court this morning to selling counterfeit oxycodone pills containing fentanyl to active-duty U.S. Navy servicemembers stationed in San Diego, including during deployments.
According to court records, Szramowski provided an active-duty U.S. Navy servicemember assigned to the USS Abraham Lincoln with 10 purported oxycodone pills in December 2022. The victim, identified in court records by his initials, A.N., overdosed and died of acute fentanyl intoxication in January 2023.
Despite knowing of A.N.’s death, Szramowski sold three more purported oxycodone pills to another sailor, identified as C.L., just 10 days later. After that sailor was taken to the hospital for a suspected overdose from which he recovered, Szramowski and Poomaihealani called C.L. and instructed C.L. to tell law enforcement he received the pills from A.N. and not Szramowski.
Szramowski and Poomaihealani are scheduled to be sentenced by U.S. District Judge Ruth Bermudez Montenegro on December 11, 2026.
Special agents and task force officers with HSI San Diego’s Fentanyl Abatement and Suppression Team (FAST) led this investigation. HSI San Diego’s FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.
This case is being prosecuted by Assistant U.S. Attorney Keith D. Ellison. Former Special Assistant U.S. Attorney Samson Schatz contributed significantly to the case.
DEFENDANTS Case Number 20cr2682-GPC
Bailey A. Szramowski Age: 29 Hawaii
Johnnese H. Poomaihealani Age: 25 Hawaii
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a)(1) and 846
Maximum penalties:
- Szramowski: A minimum of five years in prison up to 40 years, and $5,000,000 fine
- Poomaihealani: Twenty years in prison and $1 million fine
INVESTIGATING AGENCIES
Homeland Security Investigations
Naval Criminal Investigative Service
California Department of Justice
This case was investigated and prosecuted by the California Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal 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).
Former L.A. County Sheriff's Deputy Sentenced to Nearly 2 Years in Prison for Violating Civil Rights While Providing Off-Duty Security for Crypto CriminalRead the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s Department (LASD) deputy was sentenced today to 21 months in federal prison for abusing his status as a law enforcement officer to threaten and intimidate adversaries of a now-imprisoned, self-proclaimed cryptocurrency businessman, and for cheating on his taxes.
Christopher Michael Cadman, 34, of Fullerton, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $25,000 in restitution.
Cadman pleaded guilty in August 2025 to one count of conspiracy against rights and one count of subscribing to a false tax return.
Cadman formerly was employed by Adam Iza, 26, who resided in Beverly Hills and Newport Beach, and was a self-styled cryptocurrency businessman who has been in federal custody since September 2024. Iza pleaded guilty in January 2025 to one count of conspiracy against rights, one count of wire fraud, and one count of tax evasion. His sentencing hearing is scheduled for October 5 before Judge Anderson.
Iza is serving a 15-year federal prison sentence for his involvement in an attempted robbery of Bitcoin and a kidnapping in Connecticut in August 2024.
According to court documents, in August 2021, Cadman and LASD Deputy Scott Simpkins intimidated and threatened a victim who was one of Iza’s adversaries. According to Cadman’s plea, Simpkins held the victim at gunpoint during a meeting at Iza’s office inside his Bel Air mansion. Immediately afterward, the victim transferred approximately $25,000 from his bank account to Iza’s bank account in response to the threat and demand.
In September 2021, Cadman and other law enforcement officers orchestrated a traffic stop in Paramount to arrest the same victim. Cadman helped organize the traffic stop and arrest on Iza’s behalf and received cash payments while he worked for Iza.
Cadman also received income – at least $40,500 – he knowingly failed to report on his 2021 federal tax return, which he signed and filed with the IRS in February 2022. Cadman owed approximately $11,000 in federal taxes for that year.
“Our legal system entrusts law enforcement officers with extraordinary authority,” prosecutors argued in a sentencing memorandum. “Those powers carry a corresponding duty to uphold constitutional rights, exercise sound judgment, and serve the public with integrity. When an officer abuses that trust, the harm extends beyond the immediate victim. It undermines confidence in the rule of law, weakens trust in government institutions, and damages the reputation of the countless officers who serve honorably.”
Cadman is one of five now-former LASD deputies convicted in connection with Iza’s criminal activities:
- Michael David Coberg, 45, of Eastvale, is serving a 63-month federal prison sentence for helping Iza extort a rival and arranging the sham illegal drug possession arrest of another adversary in Paramount in 2021. Judge Anderson sentenced Coberg on March 16.
- Scott Allen Simpkins, 34, of Brea, was sentenced on July 13 to 18 months in federal prison for obstructing a federal investigation into Iza’s extortion of $25,000 from a party planner at Iza’s Bel Air mansion.
- David Anthony Rodriguez, 45, of La Verne, was sentenced on July 20 to one year in federal prison and who had worked for Iza as a private security guard, pleaded guilty to submitting a false search warrant application to a state court judge on behalf of a different client.
- Eric Chase Saavedra, 42, of Chino, a former LASD deputy and a former federal task force officer, pleaded guilty in February 2025 to one count of conspiracy against rights and one count of making and subscribing to a false tax return. Saavedra founded a company – Saavedra & Associates LLC – that provided security to Iza and hired LASD deputies to do so. Among other crimes, Saavedra used his powers as a sworn law enforcement officer to improperly obtain court-authorized search warrants related to intimidating, threatening, and harassing Iza’s adversaries. Saavedra is expected to be sentenced in the coming weeks.
Relatedly, Iris Ramaya Au, 37, of Irvine, Iza’s ex-girlfriend, pleaded guilty in March 2025 to one count of subscribing to a false tax return for failing to report more than $2.6 million in ill-gotten funds she obtained from Iza’s criminal activities. Au will face a statutory maximum sentence of three years in federal prison at her sentencing hearing, which is expected to occur in the coming weeks.
The FBI and IRS Criminal Investigation investigated this matter. The Los Angeles County Sheriff’s Department has assisted.
Assistant United States Attorney Maxwell K. Coll of the National Security Division prosecuted this case.
Former Fresno County mail carrier indicted for keeping and failing to deliver the mailRead the Press Release
FRESNO, Calif. — Ronald Juckno, 53, of Fresno, former mail carrier for the U.S. Postal Service (USPS), was arrested on Friday, Sept. 11 following an indictment charging him with keeping and failing to deliver the mail, U.S. Attorney Eric Grant announced today.
According to court records, between August and September 2024, Juckno was found in possession of more than 8,500 pieces of mail that he had held onto and failed to deliver to his customers. The mail included sensitive items such as California EDD correspondence, financial records, insurance records, medical correspondence, tax records, and utility bills. He was placed on leave and then resigned his position as a mail carrier shortly after this discovery.
The USPS Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Joshua Banister and Joseph Barton are prosecuting the case.
If convicted, Juckno faces a maximum sentence of five years federal prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former CEO Charged with FraudRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of a Complaint charging WANJA OBERHOF, a founder and the former CEO of a wellness startup, the Healing Company, with defrauding an investor in his venture. OBERHOF was presented today before Magistrate Judge Ona T. Wang.
“Investors are entitled to know that their money will be used for the purposes they were promised, not siphoned off to fund an executive’s personal expenses,” said U.S. Attorney Jamie McDonald. “As alleged, Wanja Oberhof convinced an investor to provide millions of dollars for a specific business purpose, then diverted much of that money for his own benefit and doctored records to conceal what he had done.”
“Oberhof allegedly defrauded at least one victim of over two million dollars and operated under the guise of running a wellness company,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “The FBI and its partners will continue to pursue investigations into dishonest individuals to prevent the furtherance of any such schemes.”
According to the allegations contained in the Complaint:(1)
The Healing Company was a start-up venture that, among other things, sought to acquire interests in health and wellness companies. As described further below, WANJA OBERHOF, the defendant, was a co-founder and then CEO of The Healing Company and made misrepresentations to an investor in The Healing Company in order to obtain investor money, and subsequently misappropriated investor funds. In particular, OBERHOF tricked a businessman (“Victim-1”) into investing $2.5 million in an affiliate of The Healing Company based on the false promise that Victim-1’s funds would be used in substantial part to pay off debt that was encumbering a valuable asset held by The Healing Company. Rather than using the investor’s money as promised, OBERHOF misappropriated the vast majority through various money transfers for OBERHOF’s personal benefit. For example, OBERHOF transferred, or caused to be transferred: (a) approximately $25,000 of Victim-1’s money to pay for OBERHOF’s rent at his luxury penthouse apartment in Manhattan (which cost nearly $20,000 per month in rent); (b) over $57,000 of Victim-1’s money to repay a personal loan; and (c) ultimately, over $1.8 million of Victim-1’s money to a foreign bank account controlled by OBERHOF. In an attempt to hide the fraud from Victim-1, OBERHOF shared with Victim-1 and others doctored records relating to the use of Victim-1’s investment that, had OBERHOF not manipulated them, would have revealed OBERHOF’s misappropriation and the fraud on Victim-1.
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OBERHOF, a German national, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. McDonald praised the outstanding work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Micah F. Fergenson is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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As the introductory phrase signifies, the entirety of the text of the Complaint and the descriptions of the Complaint constitute only allegations, and every fact described should be treated as an allegation.
Former Attorney Pleads Guilty in Real Estate Fraud SchemeRead the Press Release
Orlando, FL – Michael Saracco (40, Cocoa) has pleaded guilty to three counts of wire fraud. He faces a maximum penalty of 20 years in federal prison per count. Sentencing has been set for December 2, 2026. U.S. Attorney Gregory W. Kehoe made the announcement.
According to court documents, Saracco is a former attorney who owned Driftwood Title located in Cocoa and All Florida Property Solutions (AFPS). Saracco maintained various Driftwood escrow accounts. Between August 2019 and July 2025, Saracco defrauded private lending companies, financial institutions, and title insurance underwriters.
Saracco’s participation and acts in furtherance of the scheme to defraud included, but were not limited to the following: (i) soliciting private lenders and funding companies for loans secured by properties Saracco purported to own or planned to purchase; (ii) falsely representing to these private lenders and funding companies that these properties were not encumbered; (iii) conducting real estate closings of the loan transactions and representing to the lenders that he recorded the mortgage documents in the appropriate county clerk’s office as represented; (iv) failing to record the corresponding mortgage documents granted by private lenders; (v) seeking subsequent loans from private lenders without disclosing the existence of pre-existing private lender mortgages on his properties on the real estate settlement statements; (vi) arranging for the properties to be sold, which caused financial institutions, to fund loans via interstate wire funds transfers to buyers through Driftwood escrow accounts, without knowledge of the unrecorded mortgages granted in favor of the private lenders, which netted Saracco hundreds of thousands of dollars in seller proceeds; (vii) submitting closing disclosures that did not accurately disclose the existing encumbrances; (viii) submitting closing disclosures to the mortgage lenders through interstate wires, which listed certain encumbrances to be paid off, but were not paid off; (ix) diverting proceeds from the mortgage lenders meant to pay off liens to himself through AFPS; and (x) issuing Title Commitments falsely stating that Driftwood had issued title insurance policies backed by title insurance underwriters, when in fact no such polices had been issued.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Brevard County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Chris Poor.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Florida Man Pleads Guilty to Transporting Illegal AlienRead the Press Release
BANGOR, Maine: A Florida man pleaded guilty today in U.S. District Court in Bangor to transporting an illegal alien.
According to court records, in September 2023, the U.S. Border Patrol learned that a woman had been seen walking from Canada into the United States at the international border near Lowelltown — a remoted, wooded area in Franklin County with a history of smuggling activity. At the same time, a black SUV was seen heading towards the woman’s location. A short time later, U.S. Border Patrol agents pulled over the SUV. Agents identified the driver as John Boniello, 40, and the female passenger as a French citizen who did not have legal status in the U.S. Boniello admitted that he had traveled from Florida to Maine to pick up the woman and that he knew she could not legally enter the U.S.
Boniello faces up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Border Patrol investigated the case.
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Five Prominent Black Axe Members Extradited for Conspiring to Engage in Internet Scams and Money LaunderingRead the Press Release
TRENTON, N.J. – Five members of the Cape Town Zone of the Neo Black Movement of Africa, also known as “Black Axe,” who were extradited from South Africa to the United States on wire fraud and money laundering charges, will have their initial appearances and arraignments today at 1:00 pm before U.S. District Judge Michael A. Shipp in Trenton federal court, U.S. Attorney Robert Frazer announced.
Perry Osagiede, aka “Lord Sutan Abubakar de 1st,” aka “Rob Nicolella,” aka “Alan Salomon,” 57; Franklyn Edosa Osagiede, aka, “Lord Nelson Rolihlahla Mandela,” aka, “Edosa Franklyn Osagiede,” aka “Dave Hewitt,” aka, “Bruce Dupont,” 42; Osariemen Eric Clement, aka, “Lord Adekunle Ajasi,” aka, “Aiden Wilson,” 40; Collins Owhofasa Otughwor, aka, “Lord Jesse Makoko,” aka, “Philip Coughlan,” 42; and Musa Mudashiru, aka “Lord Oba Akenzua,” 38; all originally from Nigeria, are charged by superseding indictment with wire fraud conspiracy and money laundering conspiracy, spanning from 2011 to 2021.
Perry Osagiede, Franklyn Osagiede, and Clement are also charged with wire fraud, and Perry Osagiede, Franklyn Osagiede, and Otughwor are also charged with aggravated identity theft.
“The alleged members of Black Axe believed that operating behind electronic devices thousands of miles away would place them beyond the reach of American justice. They were wrong. This extradition demonstrates that our Office, together with our law enforcement partners in the United States and abroad, will relentlessly pursue transnational criminal organizations that victimize Americans, no matter where they operate and hide.”
- U.S. Robert Frazer
"Black Axe is a notoriously violent transnational criminal organization that also happens to dabble in romance scams to make money,” said FBI Newark Special Agent in Charge Stefanie Roddy. “The ability of FBI Newark and our partner agencies to reach into South Africa illustrates our resolve to hold accountable any and every type of fraudster who preys on innocent victims here in the United States. We also want to use this investigation as a message to victims: please call us if you have been scammed and help us stop these predators from continuing their vicious criminal activity."
“This case reflects the result of a years-long effort by the U.S. Secret Service and our law enforcement partners to identify, investigate, and bring to justice those who allegedly preyed on victims through sophisticated online fraud and money laundering schemes,” said Special Agent in Charge Craig Marech of the U.S. Secret Service’s Newark Field Office. “This case demonstrates the power of cooperation and sends a clear message that the Secret Service and our partners will pursue those who target U.S. victims wherever they operate, anywhere in the world.”
According to documents filed in this case and statements made in court:
Perry Osagiede, Franklyn Osagiede, Clement, Otughwor, and Mudashiru (the “Black Axe defendants”) were all leaders of the Neo Black Movement of Africa, also known as “Black Axe,” an organization headquartered in Benin City, Nigeria that operates in various countries. Black Axe is organized into regional chapters known as “zones,” and the defendants were all leaders within the Cape Town Zone in South Africa. Perry Osagiede founded the Cape Town Zone of Black Axe and worked as its zonal head. The Black Axe defendants and other members of Black Axe took part in, and openly discussed, fraud schemes amongst their membership.
From at least 2011 through 2021, the Black Axe defendants and other conspirators worked together from Cape Town to engage in widespread internet fraud involving romance scams and advance fee schemes. Many of these fraudulent narratives involved claims that an individual was traveling to South Africa for work and needed money or other items of value following a series of unfortunate and unforeseen events, often involving a construction site or problems with a crane. The conspirators used social media websites, online dating websites, and voice over internet protocol phone numbers to find and talk with victims in the United States, while using a number of aliases.
The conspirators’ romance scam victims believed they were in romantic relationships with the person using the alias and, when requested, the victims sent money and items of value overseas, including to South Africa. Sometimes, when victims expressed hesitation in sending money, the conspirators used manipulative tactics to coerce the payments, including by threatening to distribute personally sensitive photographs of the victim.
The conspirators used the bank accounts of victims and individuals with United States-based financial accounts to transfer the money to South Africa. On certain occasions, the conspirators convinced victims to open financial accounts in the United States that the conspirators would then be permitted to use themselves. In addition to laundering money derived from romance scams and advance fee schemes, the conspirators also worked to launder money from business email compromises. In addition to their aliases, the conspirators used business entities to conceal and disguise the illegal nature of the funds.
The wire fraud conspiracy and wire fraud charges each carry a maximum term of 20 years in prison and a maximum fine of $250,000. The money laundering conspiracy charge carries a maximum term of 20 years in prison and a maximum fine of $500,000 or twice the value of the property involved in the transaction, whichever is greatest. The aggravated identity theft charges carry a mandatory term of two years in prison, which must run consecutively to any other term of imprisonment imposed on a defendant.
The Black Axe defendants were arrested in South Africa in 2021 at the request of the United States and extradited to the United States on September 11, 2026.
Anyone who believes they may be a victim may visit https://www.justice.gov/usao-nj/blackaxe for information about the case, including a questionnaire for victims to fill out and submit.
U.S. Attorney Frazer credited special agents of the FBI, under the direction of Special Agent in Charge Stefanie Roddy in Newark; and under the direction of Law Enforcement Attaché Mark F. Grimm at the FBI Law Enforcement Attaché Office at the United States Embassy in Pretoria, South Africa; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Craig Marech in Newark and under the direction of Special Agent in Charge Todd Bratz of the U.S. Secret Service Criminal Investigative Division; and the U.S. Secret Service Pretoria Resident Office, with the investigation leading to the charges.
He also thanked the South African Directorate of Priority Crime Investigations (HAWKS), the South African Police Service, the South African National Prosecuting Authority & Asset Forfeiture Unit, the Department of Justice and Constitutional Development for the Republic of South Africa, and Interpol for their assistance in this case. U.S. Attorney Frazer thanked officials in South Africa for their assistance.
He also thanked special agents of the FBI, under the direction of Assistant Law Enforcement Attaché Ian A. Hallenius; and deputy U.S. marshals of the U.S. Marshal Service, under the direction of U.S. Marshal Nicholas Ricigliano, for organizing, coordinating, and conducting the foreign transfer of custody flight that brought the Black Axe defendants to the United States for prosecution.
The government is represented by Assistant U.S. Attorney Richard G. Shephard of the U.S. Attorney’s Office’s Criminal Division in Trenton. The U.S. Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrests of the Black Axe defendants and their extradition to the United States.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Financial Advisor Sentenced to Federal Prison for Defrauding Elderly ClientRead the Press Release
ATLANTA – Ejiroghene O. Okuma, a financial adviser who defrauded an elderly client out of nearly $10 million, was sentenced to more than seven years in federal prison for wire fraud.
“Under the guise of acting as a financial adviser, Okuma abused the trust placed in him by an elderly client,” said U.S. Attorney Theodore S. Hertzberg. “His sentence should send a clear message to fiduciaries who may be tempted to steal: we will seek lengthy prison sentences to punish those who exploit vulnerable citizens to line their own pockets.”
“Okuma betrayed the trust of an elderly client and exploited his position as a financial adviser to steal nearly $10 million for his own personal benefit,” said Marlo Graham, Special Agent in Charge of FBI Atlanta. “He used his access and authority to systematically drain his victim’s accounts while funneling the stolen money into lavish purchases and other personal expenses. The FBI will aggressively pursue financial predators who exploit their positions of trust and prey on vulnerable victims.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: Okuma was an investment adviser who received complete access to the brokerage account of an elderly client (“Victim-1”) in 2016.
In February 2022, Okuma was appointed to administer the estate of Victim-1’s sister. The next month, Okuma began embezzling from Victim-1 by falsely representing that the sister’s estate required funds. Believing Okuma’s lies, Victim-1 permitted Okuma to transfer $500,000 from a brokerage account to a bank account purportedly held for the estate. Without Victim-1’s knowledge, Okuma then transferred those funds to a bank account in the name of his wife’s company. Later, in June 2022, Okuma stole approximately $400,000 by transferring (i) funds he deceived Victim-1 into paying as part of administering the sister’s estate and (ii) proceeds from the sale of the sister’s residence.
After embezzling nearly $1 million from Victim-1 through lies about Victim-1’s sister’s estate, Okuma set up fraudulent accounts to steal millions more from Victim-1. In February 2023, Okuma opened an unauthorized brokerage account in the name of a revocable trust involving Victim-1. On the same day that Okuma opened the fraudulent brokerage account, he opened a bank account in his own name and added himself as a custodian to an existing bank account in Victim-1’s name, giving himself the ability to withdraw funds without Victim-1’s approval.
Within days, Okuma began draining Victim-1’s brokerage accounts. By the end of February 2023, Okuma had transferred approximately $9 million of Victim-1’s funds to the fraudulently opened brokerage account without Victim-1’s knowledge. Between August 2023 and March 2025, Okuma moved that money to other accounts he controlled and used it to, among other things, purchase a $5.2 million residence in Vinings, Georgia, purchase an approximately $1.4 million beach club membership, and donate approximately $340,000 to his church.
On September 11, 2026, Ejiroghene O. Okuma, 44, of Smyrna, Georgia, was sentenced to seven years, four months in prison to be followed by three years of supervised release. Restitution will be decided at a hearing that will be scheduled at a later date. Okuma was convicted of one count of wire fraud after pleading guilty on March 17, 2026.
This case was investigated by the Federal Bureau of Investigation with valuable assistance from the Securities and Exchange Commission.
For more information about the Department of Justice’s efforts to help older Americans and to combat elder abuse, neglect, financial exploitation and fraud, please visit https://www.justice.gov/elderjustice. The Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Assistant United States Attorney Samir Kaushal and former Assistant United States Attorney Alex R. Sistla 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.
Farmington Man Charged with Four Alleged Sexual AssaultsRead the Press Release
ALBUQUERQUE – A Farmington man has been indicted in connection with four alleged sexual assaults that occurred over a one-year period.
According to court documents, in July 2025, September 2025, April 2026 and on August 17, 2026, Running Bear Hosteen, 43, an enrolled member of the Navajo Nation, engaged in a sex act with Jane Doe by the use of force.
Hosteen is charged with four counts of aggravated sexual abuse and will remain on conditions of release pending trial which has not yet been scheduled. If convicted, Hosteen faces up to life in prison.
First Assistant U.S. Attorney Ryan Ellison and Special Agent in Charge Justin A. Garris of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Jack Burkhead Neal is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eastern District of Virginia joins DOJ Fraud Division, SBA, and SBA OIG in surge takedown exceeding $245M in COVID-era loan fraudRead the Press Release
ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) today announced two prosecutions as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
EDVA was a key participant in this surge effort.
From June 12 to Sept. 1, federal prosecutors across the country facilitated fraud enforcement actions spanning over 160 criminal defendants, including approximately 80 newly charged defendants, reaching approximately $245 million dollars in intended loss to American taxpayers.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“As the federal government was providing vital assistance to businesses impacted by a global pandemic, scammers and thieves cynically exploited that lifeline to enrich themselves,” said Theophani K. Stamos, First Assistant U.S. Attorney for EDVA. “We will continue working with our law enforcement partners to prosecute these economic parasites and recover the taxpayer funding intended to buoy small businesses in a time of crisis.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
In EDVA, First Assistant U.S. Attorney Stamos announced that three defendants were sentenced for PPP-related fraud involving approximately $2,125,000 in losses.
According to court documents, Karen J. DeMatteo, 65, of Gainesville, and her business partner, Tae Young Q. Jang, 65, of Nokesville, took out over 15 PPP and EIDL loans for entities they previously owned. Some of the applicant entities were dormant and no longer conducted business at the time of the applications. Jang and DeMatteo inflated the number of employees, payroll costs, and gross revenues associated with each applicant entity. Moreover, Jang and DeMatteo reported different payroll and revenue amounts for the applicant entities on different loan applications. Jang and DeMatteo then spent the PPP and EIDL funds for inappropriate uses, including buying cryptocurrency, houses, and a car. On Aug. 6, DeMatteo was sentenced to two years and six months in prison. On Aug. 27, Jang was sentenced to a year and five months in prison. This case was investigated by the U.S. Agency for International Development.
Between May 2020 and March 2021, Sheila Bynum-Coleman fraudulently sought and obtained more than $225,000 in loan proceeds from the Paycheck Protection Program on behalf of eight purported business entities. Bynum-Coleman used those funds for personal purposes, including paying off the mortgage on her residence, purchasing luxury clothing, and paying off her personal credit cards. Bynum-Coleman also defrauded the Virginia Employment Commission, submitting fraudulent applications for Pandemic Unemployment Assistance funds, obtaining more than $17,000 of unemployment compensation benefits. On July 27, Bynum-Coleman was sentenced to two years in prison. This case was investigated by the Department of Justice Office of the Inspector General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eastern District of Texas joins DOJ Fraud Division, SBA, and SBA OIG in COVID-Era Loan Takedown Exceeding $245 million in FraudRead the Press Release
PLANO, Texas –The U.S. Attorney's Office for the Eastern District of Texas today announced results as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration, and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP). The Eastern District of Texas was a key participant in this surge effort.
From June 12 to September 1, federal prosecutors across the country facilitated fraud enforcement actions involving over 160 defendants and approximately $245 million in intended loss to American taxpayers.
“In the Eastern District of Texas, we will spare no effort to recover ill-gotten gains,” said U.S. Attorney Jay R. Combs. “These funds were intended to keep small businesses alive, not fund the lifestyles of individuals taking advantage of the programs.”
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
In the Eastern District of Texas, U.S. Attorney Jay R. Combs announced that three defendants have pleaded guilty and are awaiting sentencing. Two other defendants have been set for trial.On August 12, 2026, Weldon Greer, Jr., 61, of Houston, pleaded guilty to conspiracy to commit wire fraud and faces up to 30 years in federal prison. According to information presented in court, from 2020 through 2021, Greer conspired to fraudulently obtain dozens of PPP and EIDL loans by submitting falsified supporting documentation to the SBA. The total loss to the SBA was at least $8,394,561. Greer’s co-conspirator, Jarrod Durant Wilburn, 58, of Houston, has also been charged and is set for trial on October 13, 2026, in Beaumont. This case is being prosecuted by Assistant U.S. Attorney Donald Carter.
On August 13, 2026, Thomas Flanagan, 66, of Beaumont, was indicted by a federal grand jury and charged with four counts of wire fraud. According to the indictment, Flanagan is alleged to have submitted falsified applications for forgiveness of PPP loans for two businesses, James Flanagan Shipping Corporation and P.C. Pfeiffer Co. Inc., resulting in a loss to the SBA of $1,514,917. If convicted, Flanagan faces up to 20 years in federal prison. Flanagan is set for trial in January of 2027 in Beaumont. This case is being prosecuted by Assistant U.S. Attorney Jim Noble.
Craig Bennett, 51, and his wife, Chemika Bennett, 53, of Celina, pleaded guilty to conspiracy to commit wire fraud. The Bennetts applied online for PPP loans under their own names, as well as business names using fraudulent statements and information claiming the loans would be used for business expenses and employee payroll. However, the Bennetts did not have employees or business expenses, and the loans were sued for their personal expenses. The loss to the SBA is $697,000. The couple faces up to 20 years in federal prison and will be sentenced on November 10, 2026, in Sherman.
These cases were investigated by the SBA – Office of Inspector General and the FBI.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.###
Eastern District of Louisiana Joins DOJ Fraud Division, SBA, and SBA OIG in Law Enforcement Surge Takedown Exceeding $245 Million in COVID-19 related Loan FraudRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney David I. Courcelle for the Eastern District of Louisiana announced today the successful prosecution of seven (7) defendants for Small Business Administration related fraud, resulting in seven (7) guilty pleas, four (4) of which have already been sentenced, making EDLA a key player in the nationwide enforcement surge led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (“SBA”), and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
From June 12 to September 1, federal prosecutors across the country facilitated fraud enforcement actions netting over 160 criminal defendants, including approximately 80 newly charged defendants, amounting to approximately $245 million dollars in intended loss to American taxpayers.
“Fraud against the United States government is a serious crime,” stated David I. Courcelle, United States Attorney for the Eastern District of Louisiana. “Especially egregious, is fraud that grossly undermines the financial assistance so desperately needed for small businesses to survive during one of the most vulnerable eras in our country, the COVID-19 pandemic. Highlighted today are successfully prosecuted fraud cases handled by the EDLA that involved the Small Business Administration Paycheck Protection and Economic Injury Disaster Loans programs. Successful prosecutions such as these are only made possible by the close partnership and shared mission of the U.S. Attorney’s Office and our law enforcement colleagues to safeguard public funds from fraud and prosecute those who steal such funds.”
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler.
“With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Again, in the Eastern District of Louisiana, 7 defendants pleaded guilty to defrauding the SBA and 4 of those defendants have been sentenced for the SBA-related fraud. These 7 defendants caused actual fraud losses to the SBA of approximately $1.8 million and intended fraud losses of approximately $2.6 million.
On July 21, 2026, Amanda Clayborne-Williams pled guilty to defrauding the Small Business Administration by submitting 12 false PPP and EIDL loan applications seeking $1.3 million. After submitting the false applications, Clayborne-Williams received $447,305 and spent the funds on personal expenses. She also pled guilty to committing tax evasion. Clayborne-Williams’s sentencing hearing is scheduled for October 20, 2026. The case was investigated by Internal Revenue Service – Criminal Investigations and prosecuted by Assistant U.S. Attorney Maria M. Carboni.
On July 21, 2026, Jessica Lacour pled guilty to defrauding the Small Business Administration by submitting fake tax returns to obtain a $20,940 PPP loan. Lacour also admitted she used the identities of other people to obtain emergency Covid rental assistance totaling $71,740. The total fraud loss Lacour caused to the SBA is $92,680. Lacour is scheduled to be sentenced on October 20, 2026. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chandra Menon.
On July 14, 2026, Marcel Gross of Slidell pled guilty to fraudulently obtaining $350,272 by providing false information on a PPP loan application. Gross split the proceeds with his co-conspirator who helped him complete the application. Gross’s sentencing hearing is October 13, 2026. This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Chandra Menon.
On August 25, 2026, Arthur Allen of New Orleans was sentenced to 24 months of imprisonment to be followed by three years of supervised release for defrauding the Small Business Administration (“SBA”). In 2020, Allen falsely claimed on a PPP loan application that his bed and breakfast received over $425,000 in gross revenue in 2019 when the business actually generated no revenue in 2019. As a result of his false statements, the SBA issued Allen a PPP loan of $712,212. In addition to the 2-year prison sentence he received, Allen was also ordered to pay $712,212 in restitution. The case was investigated by the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Richard R. Pickens, II.
On August 27, 2026, after pleading guilty to PPP fraud, Wellington Brown was sentenced to 5 years of probation and 12 months of home detention. Brown admitted he lied on his PPP application and received $123,771 in SBA funds. Brown was also ordered to pay $123,771 in restitution. The case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General (a member of the Pandemic Response Accountability Committee) and prosecuted by Assistant U.S. Attorney Richard R. Pickens, II.
On August 12, 2026 Chelsey Powell was sentenced to 2 years of probation, after pleading guilty to making false statements to the SBA in order to obtain PPP loans totaling $36,123. Specifically, Powell made false statements on a PPP application and unlawfully received $36,123 in PPP benefits. In addition to probation, Powell was ordered to pay restitution to the SBA in the amount of $36,123.52 and to serve 100 hours of community service. The case was investigated by the U.S. Department of Veterans Affairs Office of Inspector General (a member of the Pandemic Response Accountability Committee) and the United States Secret Service and was prosecuted by Assistant U.S. Attorney Edward J. Rivera.
On August 5, 2026, Myiesha Robertson was sentenced to 5 years of probation, with 6 months of home detention, for defrauding the SBA. Robertson provided false statements on her PPP loan application and received $64,198. Robertson also filed a false tax return for herself and others. Robertson was ordered to pay restitution of $64,198 to the SBA, restitution in the amount of $432,447.35 to the IRS and ordered to serve 150 hours of community service. The case was investigated by Internal Revenue Service – Criminal Investigations and prosecuted by Assistant U.S. Attorney Edward J. Rivera.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Dulce Man Charged as Habitual Domestic Violence OffenderRead the Press Release
ALBUQUERQUE – A Dulce man with three prior domestic violence convictions is facing federal charges after allegedly attacking a woman.
According to court documents, on March 22, 2026, Rode Lyle Enjady, 47, an enrolled member of the Jicarilla Apache Nation, assaulted Jane Doe at a residence in Dulce, New Mexico, striking her in the face, strangling her with his forearm and preventing her from leaving. The victim sustained a swollen and blackened eye, a forehead contusion, multiple bruises, and a bite mark on her shoulder. Jane Doe was eventually able to escape from the residence without shoes and called police for help.
Enjady has three prior convictions for domestic violence offenses and is charged with assault by strangulation and domestic assault by a habitual offender. He will remain in custody pending trial, which has not yet been scheduled. If convicted of the current charge, Enjady faces up to 10 years in prison.
First Assistant U.S. Attorney Ryan Ellison and Special Agent in Charge Justin A. Garris of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Assistant U.S. Attorney Amy Mondragon is prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
District of New Mexico Joins DOJ Fraud Division, SBA, and SBA OIG in Surge Takedown Exceeding $245 Million in COVID-era Loan FraudRead the Press Release
ALBUQUERQUE – The U.S. Attorney’s Office for the District of New Mexico today announced the sentencing of Scott A. Spiro as part of a nationwide enforcement action led by the Justice Department’s National Fraud Enforcement Division, the Small Business Administration (SBA) and the SBA Office of Inspector General targeting fraud in the SBA’s Paycheck Protection Program (PPP).
Spiro was sentenced to 36 months in prison and ordered to pay $679,690 in restitution for obtaining more than half a million dollars in fraudulent COVID-19 pandemic loans. The District of New Mexico was a key participant in the nationwide surge effort.
There is no parole in the federal system.
According to court documents, between April 2020 and December 2021, Spiro, 64, devised and carried out a scheme to defraud the federal government and federally insured financial institutions by submitting fraudulent PPP and Economic Injury Disaster Loan (EIDL) applications under the CARES Act.
As part of the scheme, Spiro created several shell companies that were not legitimate businesses, had no employees, and paid no wages, including Scott A. Spiro JD, LLC, Pacifica Law Clinic, LLC, Spiro Enterprises of NM, LLC, Pacifica Funding Corporation, and Accounting Advisors. Using these entities, Spiro submitted multiple fraudulent loan and loan forgiveness applications to lenders and the SBA. He admitted to making material misrepresentations about the companies’ establishment dates, number of employees, payroll expenses, revenues and monthly wages, and to submitting falsified IRS forms, payroll records, bank statements and New Mexico Secretary of State filings to support the applications.
As a result of these misrepresentations, Spiro obtained $679,690 in PPP and EIDL funds and used the fraudulently obtained funds for personal expenses and debts and the purchase of residential properties in Alamogordo and Ruidoso, New Mexico.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder-to-shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
Spiro pleaded guilty to three counts of wire fraud, three counts of making false statements to a financial institution and two counts of money laundering. Upon his release from prison, Spiro will be subject to five years of supervised release and must serve 100 hours of community service.
IRS Criminal Investigation investigated this case with assistance from the SBA. The U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
There is no parole in the federal system.
Defendant pleads guilty after forensic genealogy exposes 1988 murder of newborn at Sheppard AFBRead the Press Release
WICHITA FALLS, Texas — United States Attorney for the Northern District of Texas Ryan Raybould announced that on Sept. 9, Tammy Sue Kerns, 58, pleaded guilty to second degree murder for killing her newborn son on or about Aug. 4, 1988, at the U.S. Air Force Regional Hospital at Sheppard Air Force Base in Wichita Falls, Texas.
Kerns was charged via Information with unlawfully killing a newborn male infant with malice aforethought on Sept. 1.
“Forensic genealogy shattered the silence surrounding this crime and revealed the truth the defendant hid for nearly forty years: she deliberately and maliciously murdered her newborn baby,” said U.S. Attorney Ryan Raybould. “This plea is a direct result of relentless investigative work and scientific advances that allowed us to identify both parents and bring justice to an infant who was denied his first breath. Time will never shield those who commit violent crimes. I am extremely grateful to the Air Force Office of Special Investigations and the forensic specialists for their diligence and extraordinary work in the case.”
“A case is never just a file on a shelf—it’s a promise. Decades may pass, but we do not walk away, we do not forget, and we will never stop fighting to find the truth and seek justice,” said Mr. John Fine, Chief, Cold Case Team, Air Force Office of Special Investigations. “When the AFOSI Cold Case Team was established in 2015, one of its first priorities was reopening the 1988 investigation into the murder of an infant at Sheppard Air Force Base. Our commitment to securing justice for the victim remained absolute. Through outstanding persistence, paired with advanced forensics and investigative genealogy, the team was ultimately able to resolve the case. We are deeply grateful to base leadership, local and federal law enforcement partners, the Department of Justice, and the U.S. Attorney’s Office for working alongside us to bring about this resolution.”
“Although this tragic loss occurred nearly four decades ago, the passage of time has not diminished our commitment to the truth,” said Deputy Commander of the 82nd Training Wing, Col. Joseph Wierenga. “On behalf of Sheppard Air Force Base, we are proud partners in this effort and hope these long-awaited answers bring a meaningful sense of closure and healing to our installation and our community. We extend our profound gratitude to the Air Force Office of Special Investigations Cold Case Team, whose relentless determination and use of modern forensic science were instrumental in solving this case, as well as our sincere appreciation to U.S. Attorney Ryan Raybould and the dedicated prosecutors of the Northern District of Texas for their tireless work.”
According to court documents, on or about Aug. 4, 1988, a deceased full‑term infant was found in a laundry bin at Ponds Laundry in Wichita Falls, Texas, wrapped in linens from the Air Force Regional Hospital at Sheppard Air Force Base. At the time of discovery, all known pregnant patients and newborns at the hospital and on the base were accounted for.
An autopsy conducted on Aug. 5, 1988, determined that the full-term male infant had no morphologic abnormalities. The report indicated there was evidence of live birth and the toxicology screen returned negative for all substances. The cause of death was ruled hypovolemia and anemia. With no suspects identified, the investigation was eventually closed.
Forensic Genealogy Breakthrough
The case was revived decades later through advanced forensic genealogical methods. In 2015, the Air Force Office of Special Investigations reopened the investigation and conducted new interviews. In 2017, the U.S. Air Force pathology unit located genetic material from the deceased infant and sent it to the Armed Forces DNA Identification Laboratory to build a familial Combined DNA Index System, or CODIS, profile.
In May 2022, forensic DNA laboratory and technology company Othram, Inc. performed laboratory testing of tissue samples from 1988 using advanced DNA sequencing and conducted forensic genetic genealogy research to identify biological relatives. This work led to a major breakthrough in 2023, identifying M.R. as the potential father of the infant. M.R. was interviewed on Dec. 10, 2024, and later confirmed as the biological father through DNA comparison.
“No child should be forgotten, no matter how much time has passed,” said Othram CEO David Mittelman. “We are honored to have supported AFOSI with the DNA testing that helped uncover the truth in this case.”
Identification of the Mother
AFOSI Cold Case Unit analyzed personnel rosters from Andrews Air Force Base and Sheppard Air Force Base covering 1987–1988. Through this roster analysis, investigators determined there was only one female service member stationed at Andrews the same time as M.R. during the likely conception period and reassigned to Sheppard at the time of birth: Tammy Sue Kerns.
On May 20, 2025, AFOSI conducted a non‑custodial interview with Kerns where she admitted she was the infant’s mother. She confirmed to investigators she concealed her pregnancy and never sought medical care.
In plea papers, Kerns admitted she went into labor while working a night shift at the hospital, hid herself in the x-ray room so that no one would see her and locked the doors to prevent others from entering. Kerns gave birth during the shift and once she delivered Infant Male Doe, she placed her hand over his mouth until he stopped crying and/or breathing. Kerns then severed the umbilical cord from Infant Male Doe and the placenta and wrapped the cord around his body. Kerns then wrapped Infant Male Doe in hospital linens and placed the deceased infant in the laundry bin, cleaned up the room and returned to her shift. At the conclusion of the interview, Kerns voluntarily provided her DNA which confirmed she was the mother of Infant Male Doe.
Pursuant to the plea agreement, Kerns faces a minimum of five years and a maximum of 20 years in federal prison, a fine up to $250,000 and a term of supervised release up to five years. Otherwise, this charge carries a sentence of up to life in federal prison. Her sentencing hearing is set for Jan. 8, 2027, before Chief U.S. District Judge Reed O’Connor.
The Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Allyson Monte from the Fort Worth Division is prosecuting the case.
###
Defendant Sought More than $4.6M in Fraudulent Refunds from IRSRead the Press Release
An Illinois woman was sentenced this week to 27 months in prison for her role in a conspiracy to fraudulently obtain tax refunds by submitting false tax returns and fictitious financial instruments to the IRS.
“Monika Skinger engaged in a wide-ranging tax fraud scheme that flooded the IRS with fictitious financial instruments, including fraudulent checks,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Skinger attempted to take millions in refunds she had no right to receive. As we did in this case, the Department of Justice will continue to unmask fraudulent actors and swiftly bring them to justice.”
According to court documents and statements made in court, Monika Skinger conspired with others to submit false individual and trust tax returns that claimed millions in refunds they were not entitled to receive. To induce the IRS to accept the false refund claims, Skinger personally submitted at least 16 fictitious financial instruments — such as checks, money orders, and payment vouchers — on behalf of herself and others. She also filed at least four false individual income tax returns for herself and at least two false trust tax returns. In total, Skinger sought $4.6 million in refunds from the IRS and received more than $1.2 million in fraudulent proceeds.
Skinger pleaded guilty to one count of conspiracy to commit wire fraud. In addition to the term of imprisonment, U.S. District Court Judge Amanda Brailsford for the District of Idaho ordered Skinger to serve three years of supervised release and pay $303,672.44 in restitution to the United States.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Bart Davis for the District of Idaho made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney David F. Scollan of the National Fraud Enforcement Division’s Tax Section and Assistant U.S. Attorney Brittney Campbell for the District of Idaho are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within Federal benefit programs.
DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue ExpandingRead the Press Release
Today, the Justice Department’s National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.
During the summer surge between June 12 and Sept. 1, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney’s Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.
Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss. And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.
Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.
Operation No Doze is a direct result of President Donald J. Trump’s creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
“We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public,” said Missouri Governor Mike Kehoe. “Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit.”
Federal and State Partners Participating in Operation No Doze
U.S. Attorney Partners:
Central District of California, District of Kansas, District of Idaho, District of Maryland, District of Massachusetts, District of Montana, District of New Mexico, District of Oregon, District of Rhode Island, Eastern District of California, Eastern District of Kentucky, Eastern District of Louisiana, Eastern District of Michigan, Eastern District of Missouri, Eastern District of New York, Eastern District of Texas, Eastern District of Virginia, Eastern District of Wisconsin, Middle District of Florida, Middle District of Louisiana, Northern District of California, Northern District of Florida, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Northern District of Ohio, Northern District of Texas, Northern District of West Virginia, Southern District of Alabama, Southern District of California, Southern District of Florida, Southern District of Indiana, Southern District of Ohio, Southern District of West Virginia, Western District of Kentucky, Western District of Michigan, Western District of Missouri, Western District of New York, Western District of North Carolina, Western District of Oklahoma, Western District of Pennsylvania, Western District of Tennessee, Western District of Texas, Western District of Washington.
Federal and State Investigative Partners:
Amtrak, Office of Inspector General; City of Jacksonville, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Department of Labor, Office of Inspector General; Department of Justice, Office of Inspector General; Export-Import Bank of the United States; FBI; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Housing Finance Agency, Office of Inspector General; Federal Housing Administration; Board of Governors of the Federal Reserve System, Office of Inspector General; HSI; Department of Housing and Urban Development, Office of Inspector General; Internal Revenue Service, Criminal Investigation; National Science Foundation, Office of Inspector General; Small Business Administration, Office of Inspector General; Social Security Administration; Treasury Inspector General for Tax Administration; U.S. Agency for International Development, Office of Inspector General; U.S. Postal Service, Office of Inspector General; U.S. Secret Service; Department of Veterans Affairs, Office of Inspector General; West Virginia State Police; Tampa Police Department.
Heartland Fraud Partnership Summit: In tandem with the results of Operation No Doze, the Fraud Division announced three new federal-state cooperation agreements with the Missouri Secretary of State, Nebraska Treasurer, and Kansas Treasurer to strengthen ongoing fraud enforcement efforts. On September 14, 2026, over twenty-five federal and state officials gathered for the Heartland Partnership Fraud Summit in Kansas City, Missouri, including representatives from 6 U.S. Attorney’s Offices, 3 State Attorneys General Offices, 3 State Financial Offices, 3 Secretaries of State, 3 federal law enforcement partners, and 2 Members of Congress.
Federal and State Partners at the 2026 Heartland Fraud Partnership Summit
U.S. Attorney Partners:
U.S. Attorneys Office Partners (In-Person Attendance):
U.S. Attorney for the Western District of Missouri Matthew Price
U.S. Attorney for the Eastern District of Missouri Thomas Albus
U.S. Attorney for District of Nebraska Lesley Woods
U.S. Attorney for the Northern District of Iowa Leif Olson
U.S. Attorney for the Southern District of Iowa David Waterman
U.S. Attorney for the District of Kansas Ryan Kriegshauser
State Partners:
Iowa: Iowa Secretary of State Paul Pate
Kansas: Kansas Attorney General Kris Kobach, Kansas Secretary of State Scott Schwab
Nebraska: Nebraska Attorney General Mike Hilgers, Nebraska Auditor Mike Foley, Nebraska Treasurer Joey Spellerberg
Missouri: Missouri Governor Mike Kehoe, Missouri Attorney General Catherine Hanaway, Missouri Secretary of State Denny Hoskins, Missouri State Auditor Scott Fitzpatrick, and Missouri Department of Social Services Jessica Bax
United States Congressional Representation:
Senator Eric Schmitt (R-MO) and Congressman Mark Alford (R-MO)
These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.
Notable Cases (Intended Loss Figures)
1.) United States v. Jamie Gray (Indictment) – $55,931,875 – Western District of Missouri
Jamie Gray is charged with wire fraud and money laundering. According to the indictment, Gray submitted Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications claiming to own dozens of businesses that were operating before the COVID-19 pandemic. In every instance but one, the businesses Gray allegedly claimed to own were not in operation on or before February 15, 2020 (eligibility deadline). The only claimed business that actually existed was “Fur Lives Matter,” a Texas company that allegedly had no knowledge of Gray. The indictment alleges that Gray’s representations regarding ownership, employees, gross revenue, and business operations were entirely fabricated.
Prosecuted by Assistant U.S. Attorney Patrick Carney for the Western District of Missouri. District Fraud Counsel AOR: Assistant U.S. Attorney Randy Eggert for the Western District of Missouri.
2.) United States v. Adrian Pupo Perez et al. (Indictment) – $2,400,000 – Northern District of Iowa
On July 9, 2026, a grand jury in Cedar Rapids, Iowa, charged Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban with 47 counts of wire fraud, money laundering, and conspiracy. Beginning in July 2020, Pupo Perez, Leyva Santiesteban, and more than 100 other individuals originally from Cuba allegedly sought fraudulent PPP loans and EIDLs by falsely claiming they were self-employed, among other allegedly false representations. The co-conspirators allegedly submitted approximately 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. They allegedly fraudulently sought more than $4.5 million in PPP funds, with approximately $2.4 million disbursed. Pupo Perez and Leyva Santiesteban are fugitives at this time.
Prosecuted by District Fraud Counsel Assistant U.S. Attorney Timothy L. Vavricek for the Northern District of Iowa.
3. United States v. Pu Wang and Rui Li (Indictment) – $102,397 – Northern District of Indiana
Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix, by falsely representing that the company had no Chinese affiliates and by certifying that the funded work was performed in the United States when most of the work was allegedly performed in China. In addition to allegedly defrauding the Small Business Innovation Research federal grant program, Wang also allegedly certified in PPP loan applications that all covered employees had their primary residence in the United States. Wang was himself a covered employee and, according to the allegations, lived in China during the relevant period. Wang further allegedly certified that none of Vibronix’s board members were residents of the People’s Republic of China. Public SEC filings identified Wang as a Vibronix board member who was known to live in China at the time of the application for federal funds.
According to the indictment, Wang had received an award in 2014 sponsored by the PRC to encourage Chinese citizens who study in the United States to return to China.
Prosecuted by Assistant U.S. Attorney Francis Sohn for the Northern District of Indiana. District Fraud Counsel AOR: Assistant U.S. Attorney Steven Lupa Northern District of Indiana.
4. United States v. Eve Zou (Information) – $319,800 – Western District of Texas
Eve Zou is charged with making false and fraudulent representations to the U.S. Small Business Administration to obtain EIDL funds and grants purportedly for legitimate business purposes. At the time of the charged offense, Zou was an employee of the Texas Department of Family and Protective Services, a state agency designed to protect children, the elderly, and adults in Texas with disabilities from abuse, neglect, and exploitation.
The information alleges that Zou instead used EIDL proceeds for personal benefit, including the purchase of real estate in Austin, Texas and investments in brokerage accounts. Zou also allegedly made multiple false statements in the applications, including using her daughter’s identity without her daughter’s knowledge or permission, falsely claiming to have 50 employees, and falsely claiming lost rental income. Zou allegedly obtained three SBA loans totaling $319,800.
Zou has agreed to plead guilty to the charges against her. Zou also agreed to forfeiture of all assets purchased with the fraud proceeds, which have grown in value. As a result, the government intends to recoup more than Zou stole.
Prosecuted by Assistant U.S. Attorney Brandy Gann for the Western District of Texas. District Fraud Counsel AOR: Assistant U.S. Attorney Justin Chung for the Western District of Texas.
5. United States v. Melissa Fireside (Indictment) — $1,573,350 – District of Oregon
Melissa Fireside, a former Clackamas County Commissioner, allegedly attempted to fraudulently obtain approximately $1.6 million in PPP and EIDL funds associated with her claimed businesses. The State of Oregon has charged Fireside with eight felony counts — including first-degree forgery, first-degree aggravated theft, computer crimes, and identity theft.
Fireside was charged in the District of Oregon with two counts of wire fraud. According to prosecutors, Fireside submitted an EIDL application using the identity of another person, G.F., without G.F.’s authorization. Fireside was alleged to be G.F.’s caregiver and manager of G.F.’s finances. Fireside allegedly also submitted a fraudulent PPP application supported by fabricated tax documents and bank records, falsely represented that the business was operating and had employees and substantial revenues, and then diverted the loan proceeds for her personal use. Fireside is believed to have fled the country and remains an international fugitive subject to an INTERPOL Red Notice in connection with the federal charges.
Prosecuted by Assistant U.S. Attorney Geoffrey A. Barrow for the District of Oregon. District Fraud Counsel AOR: Assistant U.S. Attorney Nick Meyers for the District of Oregon.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue ExpandingRead the Press Release
Today, the Justice Department’s National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.
During the summer surge between June 12 and Sept. 1, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney’s Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.
Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss. And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.
Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.
Operation No Doze is a direct result of President Donald J. Trump’s creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
“We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public,” said Missouri Governor Mike Kehoe. “Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit.”
Federal and State Partners Participating in Operation No Doze
U.S. Attorney Partners:
Central District of California, District of Kansas, District of Idaho, District of Maryland, District of Massachusetts, District of Montana, District of New Mexico, District of Oregon, District of Rhode Island, Eastern District of California, Eastern District of Kentucky, Eastern District of Louisiana, Eastern District of Michigan, Eastern District of Missouri, Eastern District of New York, Eastern District of Texas, Eastern District of Virginia, Eastern District of Wisconsin, Middle District of Florida, Middle District of Louisiana, Northern District of California, Northern District of Florida, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Northern District of Ohio, Northern District of Texas, Northern District of West Virginia, Southern District of Alabama, Southern District of California, Southern District of Florida, Southern District of Indiana, Southern District of Ohio, Southern District of West Virginia, Western District of Kentucky, Western District of Michigan, Western District of Missouri, Western District of New York, Western District of North Carolina, Western District of Oklahoma, Western District of Pennsylvania, Western District of Tennessee, Western District of Texas, Western District of Washington.
Federal and State Investigative Partners:
Amtrak, Office of Inspector General; City of Jacksonville, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Department of Labor, Office of Inspector General; Department of Justice, Office of Inspector General; Export-Import Bank of the United States; FBI; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Housing Finance Agency, Office of Inspector General; Federal Housing Administration; Board of Governors of the Federal Reserve System, Office of Inspector General; HSI; Department of Housing and Urban Development, Office of Inspector General; Internal Revenue Service, Criminal Investigation; National Science Foundation, Office of Inspector General; Small Business Administration, Office of Inspector General; Social Security Administration; Treasury Inspector General for Tax Administration; U.S. Agency for International Development, Office of Inspector General; U.S. Postal Service, Office of Inspector General; U.S. Secret Service; Department of Veterans Affairs, Office of Inspector General; West Virginia State Police; Tampa Police Department.
Heartland Fraud Partnership Summit: In tandem with the results of Operation No Doze, the Fraud Division announced three new federal-state cooperation agreements with the Missouri Secretary of State, Nebraska Treasurer, and Kansas Treasurer to strengthen ongoing fraud enforcement efforts. On September 14, 2026, over twenty-five federal and state officials gathered for the Heartland Partnership Fraud Summit in Kansas City, Missouri, including representatives from 6 U.S. Attorney’s Offices, 3 State Attorneys General Offices, 3 State Financial Offices, 3 Secretaries of State, 3 federal law enforcement partners, and 2 Members of Congress.
Federal and State Partners at the 2026 Heartland Fraud Partnership Summit
U.S. Attorney Partners:
U.S. Attorneys Office Partners (In-Person Attendance):
U.S. Attorney for the Western District of Missouri Matthew Price
U.S. Attorney for the Eastern District of Missouri Thomas Albus
U.S. Attorney for District of Nebraska Lesley Woods
U.S. Attorney for the Northern District of Iowa Leif Olson
U.S. Attorney for the Southern District of Iowa David Waterman
U.S. Attorney for the District of Kansas Ryan Kriegshauser
State Partners:
Iowa: Iowa Secretary of State Paul Pate
Kansas: Kansas Attorney General Kris Kobach, Kansas Secretary of State Scott Schwab
Nebraska: Nebraska Attorney General Mike Hilgers, Nebraska Auditor Mike Foley, Nebraska Treasurer Joey Spellerberg
Missouri: Missouri Governor Mike Kehoe, Missouri Attorney General Catherine Hanaway, Missouri Secretary of State Denny Hoskins, Missouri State Auditor Scott Fitzpatrick, and Missouri Department of Social Services Jessica Bax
United States Congressional Representation:
Senator Eric Schmitt (R-MO) and Congressman Mark Alford (R-MO)
These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.
Notable Cases (Intended Loss Figures)
1.) United States v. Jamie Gray (Indictment) – $55,931,875 – Western District of Missouri
Jamie Gray is charged with wire fraud and money laundering. According to the indictment, Gray submitted Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications claiming to own dozens of businesses that were operating before the COVID-19 pandemic. In every instance but one, the businesses Gray allegedly claimed to own were not in operation on or before February 15, 2020 (eligibility deadline). The only claimed business that actually existed was “Fur Lives Matter,” a Texas company that allegedly had no knowledge of Gray. The indictment alleges that Gray’s representations regarding ownership, employees, gross revenue, and business operations were entirely fabricated.
Prosecuted by Assistant U.S. Attorney Patrick Carney for the Western District of Missouri. District Fraud Counsel AOR: Assistant U.S. Attorney Randy Eggert for the Western District of Missouri.
2.) United States v. Adrian Pupo Perez et al. (Indictment) – $2,400,000 – Northern District of Iowa
On July 9, 2026, a grand jury in Cedar Rapids, Iowa, charged Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban with 47 counts of wire fraud, money laundering, and conspiracy. Beginning in July 2020, Pupo Perez, Leyva Santiesteban, and more than 100 other individuals originally from Cuba allegedly sought fraudulent PPP loans and EIDLs by falsely claiming they were self-employed, among other allegedly false representations. The co-conspirators allegedly submitted approximately 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. They allegedly fraudulently sought more than $4.5 million in PPP funds, with approximately $2.4 million disbursed. Pupo Perez and Leyva Santiesteban are fugitives at this time.
Prosecuted by District Fraud Counsel Assistant U.S. Attorney Timothy L. Vavricek for the Northern District of Iowa.
3. United States v. Pu Wang and Rui Li (Indictment) – $102,397 – Northern District of Indiana
Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix, by falsely representing that the company had no Chinese affiliates and by certifying that the funded work was performed in the United States when most of the work was allegedly performed in China. In addition to allegedly defrauding the Small Business Innovation Research federal grant program, Wang also allegedly certified in PPP loan applications that all covered employees had their primary residence in the United States. Wang was himself a covered employee and, according to the allegations, lived in China during the relevant period. Wang further allegedly certified that none of Vibronix’s board members were residents of the People’s Republic of China. Public SEC filings identified Wang as a Vibronix board member who was known to live in China at the time of the application for federal funds.
According to the indictment, Wang had received an award in 2014 sponsored by the PRC to encourage Chinese citizens who study in the United States to return to China.
Prosecuted by Assistant U.S. Attorney Francis Sohn for the Northern District of Indiana. District Fraud Counsel AOR: Assistant U.S. Attorney Steven Lupa Northern District of Indiana.
4. United States v. Eve Zou (Information) – $319,800 – Western District of Texas
Eve Zou is charged with making false and fraudulent representations to the U.S. Small Business Administration to obtain EIDL funds and grants purportedly for legitimate business purposes. At the time of the charged offense, Zou was an employee of the Texas Department of Family and Protective Services, a state agency designed to protect children, the elderly, and adults in Texas with disabilities from abuse, neglect, and exploitation.
The information alleges that Zou instead used EIDL proceeds for personal benefit, including the purchase of real estate in Austin, Texas and investments in brokerage accounts. Zou also allegedly made multiple false statements in the applications, including using her daughter’s identity without her daughter’s knowledge or permission, falsely claiming to have 50 employees, and falsely claiming lost rental income. Zou allegedly obtained three SBA loans totaling $319,800.
Zou has agreed to plead guilty to the charges against her. Zou also agreed to forfeiture of all assets purchased with the fraud proceeds, which have grown in value. As a result, the government intends to recoup more than Zou stole.
Prosecuted by Assistant U.S. Attorney Brandy Gann for the Western District of Texas. District Fraud Counsel AOR: Assistant U.S. Attorney Justin Chung for the Western District of Texas.
5. United States v. Melissa Fireside (Indictment) — $1,573,350 – District of Oregon
Melissa Fireside, a former Clackamas County Commissioner, allegedly attempted to fraudulently obtain approximately $1.6 million in PPP and EIDL funds associated with her claimed businesses. The State of Oregon has charged Fireside with eight felony counts — including first-degree forgery, first-degree aggravated theft, computer crimes, and identity theft.
Fireside was charged in the District of Oregon with two counts of wire fraud. According to prosecutors, Fireside submitted an EIDL application using the identity of another person, G.F., without G.F.’s authorization. Fireside was alleged to be G.F.’s caregiver and manager of G.F.’s finances. Fireside allegedly also submitted a fraudulent PPP application supported by fabricated tax documents and bank records, falsely represented that the business was operating and had employees and substantial revenues, and then diverted the loan proceeds for her personal use. Fireside is believed to have fled the country and remains an international fugitive subject to an INTERPOL Red Notice in connection with the federal charges.
Prosecuted by Assistant U.S. Attorney Geoffrey A. Barrow for the District of Oregon. District Fraud Counsel AOR: Assistant U.S. Attorney Nick Meyers for the District of Oregon.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ’s Fraud Division, SBA, and SBA OIG Target $245M in COVID Loan Fraud Enforcement Activity as State Partnerships Continue ExpandingRead the Press Release
WASHINGTON – Today, the Justice Department’s National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.
During the summer surge between June 12 and Sept. 1, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney’s Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.
Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss. And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.
Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.
Operation No Doze is a direct result of President Donald J. Trump’s creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.
“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”
“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”
“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud, we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”
“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”
“We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public,” said Missouri Governor Mike Kehoe. “Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit.”
Federal and State Partners Participating in Operation No Doze
U.S. Attorney Partners:
Central District of California, District of Kansas, District of Idaho, District of Maryland, District of Massachusetts, District of Montana, District of New Mexico, District of Oregon, District of Rhode Island, Eastern District of California, Eastern District of Kentucky, Eastern District of Louisiana, Eastern District of Michigan, Eastern District of Missouri, Eastern District of New York, Eastern District of Texas, Eastern District of Virginia, Eastern District of Wisconsin, Middle District of Florida, Middle District of Louisiana, Northern District of California, Northern District of Florida, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Northern District of Ohio, Northern District of Texas, Northern District of West Virginia, Southern District of Alabama, Southern District of California, Southern District of Florida, Southern District of Indiana, Southern District of Ohio, Southern District of West Virginia, Western District of Kentucky, Western District of Michigan, Western District of Missouri, Western District of New York, Western District of North Carolina, Western District of Oklahoma, Western District of Pennsylvania, Western District of Tennessee, Western District of Texas, Western District of Washington.
Federal and State Investigative Partners:
Amtrak, Office of Inspector General; City of Jacksonville, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Department of Labor, Office of Inspector General; Department of Justice, Office of Inspector General; Export-Import Bank of the United States; FBI; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Housing Finance Agency, Office of Inspector General; Federal Housing Administration; Board of Governors of the Federal Reserve System, Office of Inspector General; HSI; Department of Housing and Urban Development, Office of Inspector General; Internal Revenue Service, Criminal Investigation; National Science Foundation, Office of Inspector General; Small Business Administration, Office of Inspector General; Social Security Administration; Treasury Inspector General for Tax Administration; U.S. Agency for International Development, Office of Inspector General; U.S. Postal Service, Office of Inspector General; U.S. Secret Service; Department of Veterans Affairs, Office of Inspector General; West Virginia State Police; Tampa Police Department.
Heartland Fraud Partnership Summit: In tandem with the results of Operation No Doze, the Fraud Division announced three new federal-state cooperation agreements with the Missouri Secretary of State, Nebraska Treasurer, and Kansas Treasurer to strengthen ongoing fraud enforcement efforts. On September 14, 2026, over twenty-five federal and state officials gathered for the Heartland Partnership Fraud Summit in Kansas City, Missouri, including representatives from 6 U.S. Attorney’s Offices, 3 State Attorneys General Offices, 3 State Financial Offices, 3 Secretaries of State, 3 federal law enforcement partners, and 2 Members of Congress.
Federal and State Partners at the 2026 Heartland Fraud Partnership Summit
U.S. Attorney Partners:
U.S. Attorneys Office Partners (In-Person Attendance):
U.S. Attorney for the Western District of Missouri Matthew Price
U.S. Attorney for the Eastern District of Missouri Thomas Albus
U.S. Attorney for District of Nebraska Lesley Woods
U.S. Attorney for the Northern District of Iowa Leif Olson
U.S. Attorney for the Southern District of Iowa David Waterman
U.S. Attorney for the District of Kansas Ryan Kriegshauser
State Partners:
Iowa: Iowa Secretary of State Paul Pate
Kansas: Kansas Attorney General Kris Kobach, Kansas Secretary of State Scott Schwab
Nebraska: Nebraska Attorney General Mike Hilgers, Nebraska Auditor Mike Foley, Nebraska Treasurer Joey Spellerberg
Missouri: Missouri Governor Mike Kehoe, Missouri Attorney General Catherine Hanaway, Missouri Secretary of State Denny Hoskins, Missouri State Auditor Scott Fitzpatrick, and Missouri Department of Social Services Jessica Bax
United States Congressional Representation:
Senator Eric Schmitt (R-MO) and Congressman Mark Alford (R-MO)
These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.
Fraud Division & SBA’s Operation “No Doze” Summer Surge
View a dynamic map of the Fraud Division & SBA’s Operation “No Doze” Summer Surge here.
Notable Cases (Intended Loss Figures)
1.) United States v. Jamie Gray (Indictment) – $55,931,875 – Western District of Missouri
Jamie Gray is charged with wire fraud and money laundering. According to the indictment, Gray submitted Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications claiming to own dozens of businesses that were operating before the COVID-19 pandemic. In every instance but one, the businesses Gray allegedly claimed to own were not in operation on or before February 15, 2020 (eligibility deadline). The only claimed business that actually existed was “Fur Lives Matter,” a Texas company that allegedly had no knowledge of Gray. The indictment alleges that Gray’s representations regarding ownership, employees, gross revenue, and business operations were entirely fabricated.
Prosecuted by Assistant U.S. Attorney Patrick Carney for the Western District of Missouri. District Fraud Counsel AOR: Assistant U.S. Attorney Randy Eggert for the Western District of Missouri.
2.) United States v. Adrian Pupo Perez et al. (Indictment) – $2,400,000 – Northern District of Iowa
On July 9, 2026, a grand jury in Cedar Rapids, Iowa, charged Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban with 47 counts of wire fraud, money laundering, and conspiracy. Beginning in July 2020, Pupo Perez, Leyva Santiesteban, and more than 100 other individuals originally from Cuba allegedly sought fraudulent PPP loans and EIDLs by falsely claiming they were self-employed, among other allegedly false representations. The co-conspirators allegedly submitted approximately 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. They allegedly fraudulently sought more than $4.5 million in PPP funds, with approximately $2.4 million disbursed. Pupo Perez and Leyva Santiesteban are fugitives at this time.
Prosecuted by District Fraud Counsel Assistant U.S. Attorney Timothy L. Vavricek for the Northern District of Iowa.
3.) United States v. Pu Wang and Rui Li (Indictment) – $102,397 – Northern District of Indiana
Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix, by falsely representing that the company had no Chinese affiliates and by certifying that the funded work was performed in the United States when most of the work was allegedly performed in China. In addition to allegedly defrauding the Small Business Innovation Research federal grant program, Wang also allegedly certified in PPP loan applications that all covered employees had their primary residence in the United States. Wang was himself a covered employee and, according to the allegations, lived in China during the relevant period. Wang further allegedly certified that none of Vibronix’s board members were residents of the People’s Republic of China. Public SEC filings identified Wang as a Vibronix board member who was known to live in China at the time of the application for federal funds.
According to the indictment, Wang had received an award in 2014 sponsored by the PRC to encourage Chinese citizens who study in the United States to return to China.
Prosecuted by Assistant U.S. Attorney Francis Sohn for the Northern District of Indiana. District Fraud Counsel AOR: Assistant U.S. Attorney Steven Lupa Northern District of Indiana.
4.) United States v. Eve Zou (Information) – $319,800 – Western District of Texas
Eve Zou is charged with making false and fraudulent representations to the U.S. Small Business Administration to obtain EIDL funds and grants purportedly for legitimate business purposes. At the time of the charged offense, Zou was an employee of the Texas Department of Family and Protective Services, a state agency designed to protect children, the elderly, and adults in Texas with disabilities from abuse, neglect, and exploitation.
The information alleges that Zou instead used EIDL proceeds for personal benefit, including the purchase of real estate in Austin, Texas and investments in brokerage accounts. Zou also allegedly made multiple false statements in the applications, including using her daughter’s identity without her daughter’s knowledge or permission, falsely claiming to have 50 employees, and falsely claiming lost rental income. Zou allegedly obtained three SBA loans totaling $319,800.
Zou has agreed to plead guilty to the charges against her. Zou also agreed to forfeiture of all assets purchased with the fraud proceeds, which have grown in value. As a result, the government intends to recoup more than Zou stole.
Prosecuted by Assistant U.S. Attorney Brandy Gann for the Western District of Texas. District Fraud Counsel AOR: Assistant U.S. Attorney Justin Chung for the Western District of Texas.
5.) United States v. Melissa Fireside (Indictment) — $1,573,350 – District of Oregon
Melissa Fireside, a former Clackamas County Commissioner, allegedly attempted to fraudulently obtain approximately $1.6 million in PPP and EIDL funds associated with her claimed businesses. The State of Oregon has charged Fireside with eight felony counts — including first-degree forgery, first-degree aggravated theft, computer crimes, and identity theft.
Fireside was charged in the District of Oregon with two counts of wire fraud. According to prosecutors, Fireside submitted an EIDL application using the identity of another person, G.F., without G.F.’s authorization. Fireside was alleged to be G.F.’s caregiver and manager of G.F.’s finances. Fireside allegedly also submitted a fraudulent PPP application supported by fabricated tax documents and bank records, falsely represented that the business was operating and had employees and substantial revenues, and then diverted the loan proceeds for her personal use. Fireside is believed to have fled the country and remains an international fugitive subject to an INTERPOL Red Notice in connection with the federal charges.
Prosecuted by Assistant U.S. Attorney Geoffrey A. Barrow for the District of Oregon. District Fraud Counsel AOR: Assistant U.S. Attorney Nick Meyers for the District of Oregon.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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OAG/NFED
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D.C. Woman Sentenced in PPP Loan Fraud Scheme Uncovered by Fentanyl Trafficking BustRead the Press Release
WASHINGTON – Today, Brittany Blalock, 35, of Washington, D.C., was ordered to pay $41,666 in restitution to Harvest Small Business Finance, LLC and sentenced to 48 months’ probation in connection with a scheme to fraudulently obtain Paycheck Protection Program (PPP) loans during the COVID-19 pandemic, announced U.S. Attorney Jeanine Ferris Pirro.
Blalock pleaded guilty on March 4, 2026, before U.S. District Court Judge Colleen Kollar-Kotelly to one count of conspiracy to commit wire fraud.
The prosecution of Brittany Blalock originated from federal law enforcement’s investigation into the wholesale fentanyl trafficking ring led by Alfredo Rodriguez-Gonzalez and his co-conspirators. Through intelligence sharing and financial tracking between the Department of Labor’s Office of Inspector General, the Drug Enforcement Administration, and the United States Postal Inspection Service, investigators uncovered evidence of Blalock’s financial crime.
According to court papers, beginning in March 2021, Blalock conspired to apply for and receive forgivable PPP loans from the Small Business Administration. Blalock submitted false PPP loan applications on her own behalf and helped a co-conspirator submit fraudulent applications.
In March and April 2021, Blalock submitted two PPP loan applications to a small business lender in which she falsely claimed her sole proprietorship earned exactly $100,000 in 2020. Based on the falsified tax form, the lender approved and disbursed two loans of $20,833 each to Blalock.
Blalock then helped her co-conspirator, Karon Blalock, obtain his own SBA-approved bank account credentials and Social Security number in order to submit fraudulent PPP loan applications on his behalf. Using a falsified tax form claiming the same $100,000 in fraudulent sole proprietorship earnings, Karon Blalock received two additional PPP loan disbursements of $20,833 each, which he then used in furtherance of his fentanyl trafficking in the District of Columbia. Karon Blalock has pleaded guilty for his role in a multinational drug trafficking conspiracy that distributed wholesale quantities of fentanyl-laced pills across the United States, and is set to be sentenced by Judge Kollar-Kotelly on October 6, 2026.
In August 2021, Blalock submitted loan forgiveness applications for both of her PPP loans in which she falsely certified that she had complied with all program requirements. She also helped the co-conspirator submit forgiveness applications for his loans using the same false certifications. The lender approved all four forgiveness applications, and the Small Business Administration reimbursed the lender in full.
The case was prosecuted by Assistant U.S. Attorneys Solomon S. Eppel and Matthew W. Kinskey.
This investigation was led by the Department of Labor’s Office of Inspector General with valuable assistance from the Drug Enforcement Administration and the United States Postal Inspection Service.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President JD Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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Couple from Commerce Sentenced to Life Imprisonment for Second Degree Murder and Child NeglectRead the Press Release
TULSA, Okla. – A Commerce couple was sentenced to life imprisonment for the second degree murder of a two-year-old and several counts of child neglect, announced U.S. Attorney Christopher J. Nassar.
U.S. District Judge John D. Russell ordered Daniel Allen Ash, 34, and his girlfriend, Amber Dawn Murphy, 32, a member of the Cherokee Nation, to serve life imprisonment for Second Degree Murder in Indian Country and four counts of Child Neglect in Indian Country.
“This is a heartbreaking case involving a level of suffering no child should ever endure, especially from their own parents,” said U.S. Attorney Christopher J. Nassar. “The neglect this young victim endured from a truly callous mother and father is hard to comprehend. These parents’ life sentences reflect not only the depravity and heartlessness of their actions, but our unwavering commitment to ensuring that children who cannot speak for themselves receive justice.
Because of the relentless dedication of investigators, medical specialists, and prosecutors, the truth was uncovered in full and accountability for Ash and Murphy was achieved. While nothing can erase the tragedy of this young life lost, we remain steadfast in our mission to protect vulnerable children and to ensure that those who harm them are brought to justice and punished to the fullest extent of the law.”
Beginning in September 2024, court records and sentencing testimony revealed that Ash and Murphy were investigated after their two-year-old died. The toddler was severely malnourished, emaciated, and weighed only 17 pounds. A medical expert testified at sentencing that the toddler was so severely dehydrated that medical professionals could not collect a urine sample. Medical professionals who attempted to treat the toddler believed that his appearance was from chronic starvation.
Marshals with the Quapaw Nation discovered that Ash and Murphy were the sole providers for the toddler and three additional children, ages 10, 4, and 3. During sentencing, prosecutors explained that Ash knew something was wrong with the toddler and called Murphy while she was at work. Instead of taking the toddler to the doctor, Ash drove to his friend’s house. All of the children remained in an unair-conditioned vehicle, while Ash spent the next two hours updating his gaming console. When Ash returned to the vehicle, the toddler appeared to be lifeless, and Ash got his friend. His friend saw the toddler and told Ash to go to the hospital. Instead of going to the hospital, he drove to pick up Murphy from work, and they went home. Prosecutors said that Murphy called a friend after the toddler was making alarming noises, and then Ash and Murphy took the child to the hospital.
Law enforcement spoke with the surviving children and discovered that the 10-year-old was the primary caregiver for all of the children. She was responsible for feeding, changing diapers, and watching the children. When investigators visited the home, they found it unsuitable for anyone to live in. The home was extremely cluttered, filled with trash, covered in feces, spoiled food, and insect and rodent activity throughout.
When the medical expert testified during sentencing, he described that all four of the children were neglected in every way possible. According to his testimony, he believes the three surviving children will struggle and be impacted forever by the neglect and loss they suffered. During the investigation, medical professionals treated the surviving children, and they are now in the custody of caregivers who are working with medical professionals to care for their needs.
Ash and Murphy will remain in custody pending transfer to the U.S. Bureau of Prisons.
The Quapaw Nation Marshal Service and the Bureau of Indian Affairs were the investigative agencies. Assistant U.S. Attorneys Alicia Hockenbury, Valeria Luster, and Kate Brandon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, local, and tribal resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Colombian National Pleads Guilty for Role in Dangerous Human Smuggling OrganizationRead the Press Release
Luis Enrique Linero Pinto, also known as “El Calvo,” 41, of Colombia, has pleaded guilty in court in El Paso, Texas, today after being extradited from Colombia for his role in a dangerous human smuggling conspiracy that left 40 aliens and two boat captains missing.
“Linero Pinto played a critical role in a prolific human smuggling conspiracy that used corruption and illicit means of transport to move aliens from Colombia to the United States for money,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “During the transport, dozens of people disappeared at sea, never to be seen or heard from again. This conviction serves as the latest example of how Joint Task Force Alpha continues to lead the Department’s efforts to aggressively crack down on transnational human smuggling and trafficking networks that threaten the lives of those transported, as well as the security of our citizens and border.”
“While we grieve the lives lost due to this defendant’s conduct, it is right and good to applaud the tireless work of our special agents and prosecutors that secured this conviction and to highlight yet another successful international partnership,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “Human smuggling organizations, by definition, engage in cross-border operations, so they can only be dismantled through cross-border partnerships. By cooperating in this way, we ensure that our border is secure, which is a key component in making certain that this country is one where Americans cannot merely survive, but thrive.”
“Human smuggling organizations put profit over human life, exploiting vulnerable people and placing them in dangerous, often deadly conditions,” said Acting Special Agent in Charge Ryan G. McRae of Homeland Security Investigations (HSI) El Paso. “HSI’s mission is to protect the American people and safeguard our borders by dismantling the transnational criminal networks that threaten public safety and national security. This guilty plea reflects HSI’s commitment to working with our domestic and international partners to identify, investigate and bring to justice those who facilitate these dangerous smuggling schemes.”
According to the indictment and court documents, Linero Pinto participated in a conspiracy to unlawfully smuggle aliens, transporting them through Central America and Mexico to the United States. Linero Pinto advised the migrants on how to get to San Andres Island, Colombia, where he personally received them, arranged for their accommodation, and brought them to boats that transported them to Nicaragua so they could illegally enter the United States. Linero Pinto bribed members of the Colombian Navy to acquire real-time intelligence about the position of Navy patrol vessels located between San Andres Island and Nicaragua, enabling the boats to avoid detection. On Oct. 21, 2023, a boat carrying approximately 40 aliens and two boat captains disappeared on its way to Nicaragua after leaving San Andreas Island. Linero Pinto has admitted his role in smuggling the aliens on that boat.
Linero Pinto was charged in October 2024 for conspiring to encourage and induce aliens to come to, enter, and reside in the United States. He was arrested in Colombia in December 2024 at the request of the U.S. government. Linero Pinto’s extradition followed extensive coordination and cooperation between U.S. and Colombian law enforcement authorities, and he made his initial appearance in federal court in El Paso in December 2025.
Linero Pinto pleaded guilty to conspiracy to commit alien smuggling and placing lives in jeopardy. A sentencing date has not yet been set. Linero Pinto faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI led the investigation, with assistance from their McAllen, El Paso, and Cartagena field offices. HSI’s Human Smuggling Unit in Washington, D.C., U.S. Customs and Border Protection’s (CBP) National Targeting Center International Interdiction Task Force, the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT), Office of International Affairs (OIA), and Judicial Attaché Office in Bogotá provided valuable assistance. The Justice Department thanks Colombian law enforcement officials, who were instrumental in furthering this investigation.
The investigation and indictment were coordinated and prosecuted by Joint Task Force Alpha (JTFA), the Department’s lead effort in combating high-impact human smuggling and trafficking committed by cartels and Transnational Criminal Organizations (TCOs). A highly successful partnership between the Department of Justice and the Department of Homeland Security (DHS), JTFA investigates and prosecutes human smuggling and trafficking and related immigration crimes that impact public safety and border security. JTFA’s mission is to target the leaders and organizers of Cartels and TCOs involved in human smuggling and trafficking throughout the Americas. The Attorney General has elevated and expanded JTFA to target the most prolific and dangerous human smuggling and trafficking groups operating not only in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras, but also in Canada, the Caribbean and the maritime border, and elsewhere. Led by the Criminal Division’s Human Rights and Special Prosecutions Section and supported by the Money Laundering, Narcotics and Forfeiture Section, the Office of International Affairs, and the Office of Enforcement Operations, among others, JTFA has dedicated prosecutors from the Southern District of California; District of Arizona; District of New Mexico; Western and Southern Districts of Texas; Southern District of Florida; Northern District of New York; and District of Vermont. JTFA also partners with other U.S. attorneys’ offices throughout the country and supports high-priority cases in any district. All JTFA cases rely on substantial law enforcement resources from DHS, including Immigration and Customs Enforcement, HSI, CBP, Border Patrol, and Office of Field Operations, as well as FBI and other law enforcement agencies. To date, JTFA’s work has resulted in more than 483 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling and/or trafficking; more than 436 U.S. convictions; more than 371 significant jail sentences imposed; and forfeitures of substantial assets.
Trial Attorneys Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Daria Andryushchenko of the Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Jose Luis Acosta for the Western District of Texas are prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and TCOs, and protect our communities from the perpetrators of violent crime.
Cocaine Trafficker Sentenced to 10 Years in Federal PrisonRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that ROMAN SANTIAGO JR., 43, formerly of Danbury, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford 120 months of imprisonment and 10 years of supervised release for trafficking cocaine from Puerto Rico using the U.S. Mail. Judge Nagala also ordered Santiago to pay a $15,000 fine.
According to court documents and statements made in court, from September 2024 to February 2025, Santiago engaged in a narcotics trafficking conspiracy that involved the shipment of cocaine from Puerto Rico to Connecticut through the U.S. Mail. During the investigation, the U.S. Postal Inspection Service intercepted multiple packages that were mailed from Puerto Rico to various addresses in Connecticut. Each package was intended for Santiago and contained approximately two kilograms of cocaine.
Santiago was arrested on February 12, 2025. At time of his arrest, a search of his Danbury residence and a storage unit he rented revealed a package of cocaine that had been mailed from Puerto Rico, additional quantities of cocaine and fentanyl, $276,298 in cash, and other items.
In total, investigators seized more than 11 kilograms of cocaine during the investigation.
On April 21, 2026, Santiago pleaded guilty to conspiracy to distribute and to possess with intent to distribute five kilograms or more of cocaine.
Judge Nagala ordered Santiago to forfeit the seized cash, and several pieces of jewelry with an total approximate value of $264,000, and his 2020 Dodge Ram pickup truck.
Santiago, who is released on a $50,000 bond and residing in New Britain, is required to report to prison on November 16.
This matter was investigated by the U.S. Postal Inspection Service, the Narcotics and Bulk Cash Trafficking Task Force, and the Danbury Police Department. The Task Force includes members from the U.S. Postal Inspection Service, the U.S. Postal Service – Office of the Inspector General, the Connecticut State Police, the Hartford Police Department, and the Plainville Police Department. The case was prosecuted by Assistant U.S. Attorneys Nathan Guevremont and Christopher Lembo.
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.
California Man Pleads Guilty to Bombing Santa Barbara County Courthouse in Retaliation for Law Enforcement Seizing His FirearmsRead the Press Release
A Santa Barbara County, California, man pleaded guilty today to detonating a bomb at a Santa Maria courthouse in 2024 in an attack that injured three people, damaged the building, and was intended to kill law enforcement officers in retaliation for local law enforcement seizing his firearms earlier that year.
“McGuire launched a vicious, terroristic assault on a court of law with the intent to kill law enforcement officers and a judge,” said Assistant Attorney General for National Security John A. Eisenberg. “His attack injured three people and, were it not for the quick action of court security and law enforcement, it could have been far worse. McGuire will now face the consequences of his actions.”
“This defendant’s brazen act of terror resulted in physical, structural, and emotional harm, and could have had tragic consequences,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Individuals who use bombs against law enforcement officials, judges, and other government personnel must be held accountable and face severe punishment for their actions.”
Nathaniel James McGuire, 22, of Santa Maria, pleaded guilty to one count of use of a weapon of mass destruction and one count of malicious destruction of a building using an explosive.
McGuire has been in federal custody since September 2024.
According to his plea agreement, on Sept. 24, 2024, McGuire knowingly detonated a bomb in the Santa Maria courthouse, which serves the Santa Barbara County Superior Court.
McGuire walked in the door of the courthouse and threw a backpack containing an explosive device past the courthouse’s security screening device and towards Santa Barbara County sheriff’s deputies, The bomb slid between a victim’s legs and detonated in the building outside a courtroom. Five people were hospitalized and released the same day. The bomb resulted in personal injuries to three victims.
McGuire admitted in his plea agreement that he detonated the bomb with the intent to kill the sheriff’s deputies.
After the bomb exploded, McGuire left to retrieve two long guns and 10 Molotov cocktails from his vehicle and intended to re-enter the courthouse to kill sheriff’s deputies and “splatter” (kill) a judge. A courthouse security guard and several law enforcement officers stopped McGuire at his vehicle.
McGuire admitted to maliciously damaging the courthouse, which sustained approximately $35,000 in damages and had to be closed for several days.
He also admitted to detonating the bomb at the courthouse in retaliation for various alleged government wrongs, including Santa Barbara County sheriff’s deputies seizing his firearms earlier that year.
McGuire intended to harm the judge and the sheriff’s deputies on account of their status as government employees and officials.
A search of McGuire’s residence resulted in the seizure of other materials related to his bomb making.
McGuire is scheduled to be sentenced on March 1, 2027, and will face a maximum penalty of life in prison.
The FBI’s Joint Terrorism Task Force, the Santa Barbara County Sheriff’s Office, and Santa Maria Police Department are investigating this matter.
Assistant U.S. Attorneys Mark P. Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Assistant U.S. Attorney Alexander Su for the Central District of California and Trial Attorney Patrick Cashman of the Counterterrorism Section of the Department of Justice’s National Security Division.
Brentwood Woman Sentenced to Federal Prison for $6.9 Million Health Care Fraud SchemeRead the Press Release
NASHVILLE – Helen Boerman, 48, of Brentwood, Tennessee, was sentenced to 42 months in federal prison for defrauding Medicare and other government health care programs out of nearly $7 million, announced United States Attorney Braden H. Boucek for the Middle District of Tennessee.
Chief United States District Judge William L. Campbell, Jr. imposed the 42-month prison sentence on September 10, 2026, followed by one year of supervised release. Boerman was also ordered to pay $6,970,583.50 in restitution and a $100 special assessment.
“Health care fraud is theft from American taxpayers and from programs intended to serve people who need them,” said United States Attorney Braden H. Boucek. “This defendant exploited those programs for millions of dollars through years of fraudulent billing. Today’s sentence holds her accountable and sends a clear message that those who steal taxpayer dollars will face serious consequences.”
According to court documents, over a period of approximately three-and-a-half years, Boerman, an optometric physician, used her practice, Brentwood Eye Care, to submit false claims to Medicare. As an enrolled provider, Boerman submitted claims seeking reimbursement for dates of service where patients did not in fact receive services and for wound care products that she had not actually purchased or used because she split wound care products intended for single use.
For example, in May 2022, Boerman, through Brentwood Eye Care, submitted Medicare claims on behalf of two beneficiaries for the placement of wound care products on May 20, 23, 24, 25, 26, and 27, even though appointment records showed the patients had appointments only on May 20, 24, and 27. Boerman directed Brentwood Eye Care staff to create false records for the other dates to support services fraudulently billed to Medicare.
In addition to the fraudulent Medicare claims, Boerman made false claims between March 2020 and October 2024 to TennCare, Tennessee’s Medicaid agency, and the Federal Employees Health Benefits Program (“FEHBP”).
As part of her guilty plea, Boerman admitted that during the course of her criminal conduct she submitted approximately $11 million in false Medicare, TennCare, and FEHBP claims and received approximately $6.9 million.
The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, and the U.S. Office of Personnel Management Office of Inspector General. Assistant U.S. Attorney Sarah Bogni prosecuted the case.
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Bookkeeper of Local Business Admits to Wire and Mail Fraud ChargesRead the Press Release
ABINGDON, Va. – The bookkeeper for a Bristol, Virginia-based business pled guilty today to a pair of federal fraud charges for stealing more than $200,000 to pay her bills and buy more than 400 items from Amazon.
Angela Sue Conley, 60, pleaded guilty today to one count of wire fraud and one count of mail fraud.
According to court documents, Conley worked as the bookkeeper for a Bristol, Virginia-based business (Company A) for more than 40 years until she was terminated in February 2025. As Company A’s bookkeeper, Conley was responsible for, among other duties, Company A’s payroll. As such, Conley had access to bank accounts and was issued a company credit card.
Beginning in January 2020 and continuing through February 2025, Conley devised a scheme to personally enrich herself through fraud by obtaining funds that belonged to Company A. Conley used her authority as bookkeeper to send wire transfers of funds from Company A’s bank account to Conley’s personal Capital One credit card account, her personal checking account, and to make hundreds of purchases from Amazon. These 474 items included high heel shoes, pool covers, and earrings. All of the items were delivered via the U.S. Postal Service or commercial interstate carrier.
Conley sent 38 payments totaling $139,246 from Company A’s bank account to her personal credit card account without authorization.
In addition, Conley transferred funds from Company A’s bank account to Verizon, BVU Authority, and the Virginia Department of Taxation as payment for Conley’s personal bills. All these payments were made without authorization.
In all, between January 2020 and February 2025, Conley caused $205,889 in fraudulent transactions to be made.
First Assistant United States Attorney Robert N. Tracci and Ian Kaufmann, Special Agent in Charge of the FBI’s Richmond Division made the announcement.
The Federal Bureau of Investigation and the Washington County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Danielle Stone is prosecuting the case
Attorney Who Failed to File Tax Returns and Pay More Than $3.1 Million Owed Sentenced to PrisonRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that MICHAEL SIMES, 51, of Newtown, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 10 months of imprisonment and one year of supervised release for offenses related to his failure to file tax returns and to pay more than $3.1 million in taxes, penalties, and interest owed.
According to court documents and statements made in court, for the 2013 tax year and the 2016 through 2022 tax years, Simes, an attorney, failed to file U.S. Individual Income Tax Returns, resulting in a tax loss to the IRS of $1,876,307 on gross income of more than $5.6 million. For the 2016 through 2020 tax years, Simes requested filing extensions until October of each year, but still failed to file and pay the taxes he owed.
In addition, Simes filed tax returns for the 2012, 2014, and 2015 tax years, but he paid only a fraction of taxes reported as due, thereby incurring substantial penalties and interest.
Simes was ordered to pay restitution of the presently outstanding balance of $2,871,676.
On March 9, 2026, Simes pleaded guilty to three counts of failure to file a tax return. Released on a $40,000 bond, he is required to report to prison on January 20, 2027.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Ames Man Sentenced to 27 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
DES MOINES, Iowa – An Ames man was sentenced on September 11, 2026, to 27 years in federal prison for sexual exploitation of a child.
According to public court documents and evidence presented at sentencing, Luke Stephen Crouse, 35, met a minor in an online chatroom and coerced that minor over a period of months into sending him sexually explicit photos and videos. Crouse also sent the minor sexually explicit photos and videos of himself. Crouse has two prior child exploitation convictions for nearly identical conduct in online chatrooms with persons he believed to be minors who were undercover agents posing as 14-year-old girls.
After completing his term of imprisonment, Crouse will be required to serve a 10‑year term of supervised release. There is no parole in the federal system.
In April 2025, Crouse was convicted of six counts of attempted indecent liberties with child under age 15, one count of production of child pornography, and two counts of proposing a sex act via a communication system to a minor less than age 15, in the Virgina Circuit Court for Rockbridge County, which was ordered to be served consecutively to the federal sentence.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. The Iowa Department of Public Safety-Division of Criminal Investigation-Internet Crimes Against Children Task Force and the Federal Bureau of Investigation-Child Exploitation Task Force investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.
Accenture Agrees to Pay $25M to Resolve Alleged Employment Discrimination ViolationsRead the Press Release
Accenture Federal Services (AFS), Accenture plc, and Accenture LLP (Accenture) have agreed to pay the United States $25 million to resolve alleged violations of the False Claims Act for failing to comply with anti-discrimination requirements in federal contracts and discriminating against employees and applicants for employment because of race or sex.
Most federal contracts contain a provision that requires contractors to provide equal opportunity to employees and applicants for employment. As a condition to being a federal contractor, the company must certify that it will not discriminate against an employee or applicant for employment because of race or sex and must further certify that it will take steps to ensure that applicants are employed, and employees are treated during employment, “without regard to” race or sex. The settlement resolves allegations that from 2017 to the present, AFS falsely certified compliance with these conditions, while engaging in discriminatory employment practices.
“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley E. Woodward Jr. “Today’s resolution makes unmistakably clear that the Department will continue to aggressively pursue unconstitutional discriminatory employment practices.”
“Federal contractors have a straightforward obligation: make employment decisions without regard to race or sex,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity.”
The United States alleged that AFS took race or sex into account when making hiring decisions to achieve progress toward non-public workforce composition goals. Business unit leaders within AFS received monthly summaries of the specific percentage of each race and sex within the unit, with the figures highlighted green, yellow, or red to indicate whether representation was at or exceeded AFS’ goal, was within 5 percent of AFS’ goal, or was below 5 percent of AFS’ goal, respectively. These demographic goals were designed to, and did, drive changes in hiring practices based on race and sex. For example, at the end of 2020 and beginning of 2021, AFS engaged in a round of entry level employee hiring to make further progress towards the company’s racial representation goals.
The United States further alleged that AFS took race or sex into account when making promotion decisions. For example, when considering managing director promotions, AFS conducted a separate discussion of candidates who furthered AFS’ race or sex demographic goals to ensure that these candidates received extra visibility with AFS leaders responsible for making promotion decisions. AFS also highlighted in color the names of candidates who furthered the company’s demographic goals to distinguish them from other candidates during the promotion review process and developed a separate “pipeline” of potential promotion candidates who would advance AFS’ demographic goals.
Finally, the United States alleged that AFS offered certain training, mentoring, leadership development programs, and educational opportunities where eligibility for these resources was limited by race or sex. For example, from August 2022 to February 2025, AFS ran the Amplify to Elevate training program, which reserved participation for employees based on race and was designed to boost the career prospects of these employees over others through mentorship and networking.
This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois.
The claims resolved by the United States in the settlement are allegations only and there has been no determination of liability.
Abbott Agrees to Pay over $384M to Settle Allegations Related to Contaminated Infant FormulaRead the Press Release
Abbott Laboratories (Abbott), an Illinois-based healthcare company that manufactures and sells infant formula and nutritional therapy products, has agreed to pay $384,999,040 to resolve allegations that it caused false claims to be submitted between Jan. 1, 2018, and Dec. 31, 2022, to federal and state programs arising from its failure to manufacture certain powder infant formula and nutritional therapy products at its Sturgis, Michigan, and Casa Grande, Arizona, facilities in compliance with federal and state statutory, regulatory, and contractual requirements.
On Nov. 13, 2025, the United States filed its Complaint in Intervention alleging that Abbott caused government programs to purchase powder infant formula manufactured at the Sturgis facility despite the products’ failure to meet statutory, regulatory, and contractual requirements. The Complaint alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination and significantly impacted the products’ reliability, quality, and safety.
“Today’s settlement is a victory for American families and makes clear the safety of our children is not negotiable,” said Acting Deputy Attorney General Trent McCotter. “Abbott will pay a substantial sum to resolve serious allegations it violated federal health and safety requirements designed to protect babies. The Justice Department will act decisively against anyone who puts American families at risk and ensure misconduct carries serious consequences.”
“No company should be gambling on the health and safety of our Nation’s infants by allowing unsanitary conditions to persist at a facility manufacturing baby formula,” said Associate Attorney General Stanley E. Woodward, Jr. “The Department will hold accountable bad actors that knowingly misrepresent compliance with essential health and safety standards designed to protect American families.”
“It is critical that infant formula manufacturers adhere to regulatory and contractual requirements to ensure that the products they manufacture are safe for the babies who consume them,” said U.S. Attorney Timothy VerHey for the Western District of Michigan. “This settlement demonstrates our commitment to holding manufacturers accountable when the United States pays for noncompliant products.”
“Parents rely on companies like Abbott Laboratories to responsibly follow the rules and ensure their products – especially baby formula – are safe. USDA OIG remains vigilant against those that would compromise public health and safety by failing to comply with legal standards and put infants at risk,” said USDA Inspector General John Walk. “This behavior is inexcusable and will not be condoned.”
As described in the complaint, roof leaks were a common occurrence in the Sturgis plant, leading to water running and dripping over equipment. Rather than permanently addressing the root causes, Abbott used temporary solutions, such as roof leak umbrellas, to try to divert leaks in product processing areas even though Abbott corporate leadership understood that the wet environment put the products at increased risk of microorganism contamination. Similarly, the complaint alleged that Abbott continued to run spray dryers, where liquid formula was transformed into a dry powder, even after Abbott documented cracks and pits in the dryers, which also increased the risk of “micro” contamination, particularly in the presence of moisture.
Further, the Department alleged that Abbott made its spray dryer conditions worse by lengthening the number of product batches that passed through the dryers between cleaning cycles — enabling Abbott to increase production. The complaint also alleges that Abbott intentionally did not test for bacterial growth to avoid obtaining positive test results showing contamination, and that in certain instances where testing demonstrated “micro” contamination, Abbott failed to disclose the test results when responding to requests from FDA during 2019 and 2022 inspections at the Sturgis facility.
Under the civil settlement agreement, Abbott will pay $348,700,868 to the United States to resolve the False Claims Act allegations and an additional $36,298,172 to certain States for claims settled by their State Medicaid and WIC programs.
The U.S. Department of Agriculture funds and regulates the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program, which provides nutritional support — including infant formula — to eligible participants. More than half of all infant formula purchased in the United States is paid for with USDA funds through WIC. State Medicaid Programs also cover and pay for certain infant formula.
The civil settlement resolves claims brought under the False Claims Act’s qui tam provisions, which allow private individuals to bring suit on behalf of the United States for false claims submitted to federal programs and to share in any recovery. Relators Scott Millard, Kristine Cooper, and Loren Cooper, who were Abbott employees, will receive $69 million as their share of the federal settlement. The qui tam action, filed in the United States District Court for the Western District of Michigan, is captioned United States, et al., ex rel. Scott Millard, et al., v. Abbott Laboratories, No. 1:22-cv-994 (W.D. Mich.).
The resolution was the product of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from USDA’s Office of Inspector General.
This year, the Trump Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s False Claims Act enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. False Claims Act matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s False Claims work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The matter was handled by Civil Fraud Section Trial Attorneys Asha Natarajan and Erin Colleran of the Justice Department’s Civil Division and Assistant U.S. Attorneys Whitney Schnurr and Jacob Carlton for the Western District of Michigan.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Abbott Agrees to Pay over $384 Million to Settle False Claims Act Allegations Related to Powder Infant Formula and Nutritional Therapy ProductsRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Timothy VerHey announced that Abbott Laboratories (Abbott), an Illinois-based health care company that manufactures and sells infant formula and nutritional therapy products, has agreed to pay $384,999,040 to resolve allegations that it caused false claims to be submitted to federal and state programs arising from its failure to manufacture certain powder infant formula and nutritional therapy products at its Sturgis, Michigan and Casa Grande, Arizona facilities in compliance with federal and state statutory, regulatory, and contractual requirements between January 1, 2018 and December 31, 2022.
The U.S. Department of Agriculture funds and regulates the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program, which provides nutritional support—including infant formula—to eligible participants. More than half of all infant formula purchased in the United States is paid for with USDA funds through WIC. State Medicaid Programs also cover and pay for certain infant formula.
On November 13, 2025, the United States filed its Complaint in Intervention alleging that Abbott caused WIC programs to purchase powder infant formula manufactured at the Sturgis facility despite the products’ failure to meet statutory, regulatory, and contractual requirements. The Complaint alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination. As described in the Complaint, Abbott failed to maintain its manufacturing equipment, failed to control the presence of water that fostered microorganism growth, and promoted a culture of concealment that systematically failed to identify, document, investigate, and prevent potential contamination.
“When someone supplies the government with food that is meant to be given to our infant children, we demand that it meet or exceed every federal nutrition and safety requirement,” said United States Attorney Timothy VerHey. “This case demonstrates that anyone who fails this standard will pay a high price.”
Under the civil settlement agreement, Abbott will pay $348,700,868 to the United States to resolve the False Claims Act allegations and an additional $36,298,172 to certain States for claims settled by their State Medicaid and WIC programs.
The civil settlement resolves claims brought under the False Claims Act’s qui tam provisions, which allow private individuals to bring suit on behalf of the United States for false claims submitted to federal programs and to share in any recovery. The qui tam action, filed in the United States District Court for the Western District of Michigan, is captioned United States, et al., ex rel. Scott Millard, et al., v. Abbott Laboratories, No. 1:22-cv-994 (W.D. Mich.).
The resolution was the product of a coordinated effort between the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Western District of Michigan, and USDA’s Office of Inspector General.
This year, the Trump Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s False Claims Act enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. False Claims Act matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s False Claims work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The matter was handled by Civil Fraud Section Trial Attorneys Asha Natarajan and Erin Colleran of the Justice Department’s Civil Division and Assistant U.S. Attorneys Whitney Schnurr and Jacob Carlton of the U.S. Attorney’s Office for the Western District of Michigan.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
13 September 2026
SDTX continues Take Back America efforts with 212 new casesRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas has charged another 218 people in immigration and border security-related matters from Sept. 4–10.
The cases include charges against 21 individuals—nine of whom are illegal aliens—allegedly involved in human smuggling. A total of 36 criminal complaints were filed for illegal entry, while another 150 people face charges of felony reentry after prior removal. Most of those individuals have prior felonies related to narcotics, violent crime, immigration offenses, and more. The remaining five cases charged this week relate to other immigration-related crimes.
As part of the newly filed complaints, Albanian national Arben Cima has been charged with illegal reentry into the country. According to the charges, authorities previously removed him March 12, 2022, before discovering him again near Mission. According to his complaint, he has a prior conviction for possession with intent to distribute heroin.
Two others—Jose Yojcom-Rocche and Antonio Rubio-Zuniga—were also allegedly found near Roma despite having been previously removed. According to the charges, Yojcom-Rocche has a prior conviction for lewd or lascivious acts with a child, while Rubio-Zuniga has a prior conviction for aggravated robbery.
All face up to 20 years in federal prison if convicted.
In addition to the new cases, Mexican national Erik Guadalupe Ibarra Venegas was sentenced to 16 months in federal prison for unlawful possession of a firearm. Authorities responded to a report of a suspicious man carrying tools and pushing two bicycles. During the encounter, law enforcement discovered a 5.56-caliber pistol on him. The investigation revealed Venegas had overstayed his visa and was prohibited from possessing firearms or ammunition.
The cases are referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement Homeland Security Investigations, ICE - Enforcement and Removal Operations, Border Patrol, Drug Enforcement Administration, FBI, U.S. Marshals Service, as well as the Bureau of Alcohol, Tobacco, Firearms, and Explosives with additional assistance from state and local law enforcement partners.
The 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 immigrants, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime.
Under current leadership, public safety and a secure border are the top priorities for the Southern District. Enhanced enforcement both at the border and in the interior of the district have yielded aliens engaged in unlawful activity or with serious criminal histories, including convictions for human trafficking, sexual assault, and violence against children.
The U.S. Attorney’s Office for the Southern District of Texas remains one of the busiest in the nation. It represents 43 counties and more than 10 million people covering 44,000 square miles. Assistant U.S. Attorneys from all seven divisions including Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen, and Laredo work directly with our law enforcement partners on the federal, state, and local levels to prosecute the suspected offenders of these and other federal crimes.
An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Federal grand jury indicts four in two related fraud schemes targeting elderly and vulnerable victimsRead the Press Release
DALLAS — United States Attorney for the Northern District of Texas Ryan Raybould announced that four defendants — Donella Locke, Suekya Whitney (aka Suekya Locke), Shakoya Crenshaw (aka Shakoya Locke), and Krystle Locke (aka Krystle Edwards / Krystal Locke) — were indicted in two related fraud schemes involving the exploitation of elderly or vulnerable individuals entrusted to their care.
According to the Aug. 26 indictments, the family of alleged fraudsters operated unlicensed boarding homes across North Texas that housed elderly and disabled residents. Investigators allege that the defendants used their positions of trust to carry out schemes involving financial exploitation, fraudulent property transactions and theft of government benefits.
“Safeguarding our senior citizens is among the Justice Department’s most solemn obligations,” said U.S. Attorney Ryan Raybould. “Whether through the manipulation of an elderly woman’s home or the theft of a deceased resident’s Social Security benefits, the alleged exploitation of vulnerable individuals under the defendants’ care represents a profound breach of trust and a serious federal offense. Social Security is not a personal piggy bank to exploit at the expense of the American taxpayer, and we will continue to work diligently with our law enforcement partners to claw back any federal dollars lost to fraud, waste and abuse, and to ensure those who target our most vulnerable community members face swift justice.”
Fraud Scheme Involving Sale of Elderly Woman’s Home
A federal grand jury charged Donella Locke, Suekya Whitney, and Shakoya Crenshaw with one count of conspiracy to make false statements to a financial institution and four counts of making false statements to a financial institution.
The indictment alleges the defendants obtained power of attorney over a 79‑year‑old woman, W.S., residing in one of their unlicensed boarding homes. They allegedly orchestrated the sale of W.S.’s longtime Garland residence to Whitney and Crenshaw, funneling more than $156,000 in proceeds through multiple accounts before transferring $147,000 to Locke. Locke then allegedly used these funds to purchase a new home, misrepresenting the money as a “cash gift” from her daughter.
The defendants also allegedly made false statements to Capital Fund 1 and CrossCountry Mortgage, claiming the real estate transactions were arm’s‑length and that Locke received legitimate gift funds, assertions the indictment states they knew were false. In reality, the indictment asserts the defendants knew the transaction involved close family members and the funds originated from the sale of W.S.’s property.
If convicted, each defendant faces up to five years in federal prison on the conspiracy count and up to 30 years on each false statement count. The indictment seeks forfeiture of any property traceable to the offenses.
“This indictment demonstrates the actions these defendants took to defraud elderly victims in their care,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “The FBI remains committed to investigating those that engage in fraudulent schemes that target the most vulnerable members of our communities.”
Social Security Benefits Theft Scheme
In a related matter, the grand jury also indicted Krystle Locke for allegedly stealing more than $50,000 in Social Security benefits belonging to a deceased resident of one of her unlicensed boarding homes. Locke is charged with four counts of theft of government money and one count of aggravated identity theft.
The indictment alleges Locke owned and operated John Thomas Residential Care Home and other unregistered boarding homes. In December 2022, the victim — identified as S.T. — executed a durable power of attorney naming Locke as his agent. Locke allegedly applied for Social Security Disability Insurance and Supplemental Security Income on S.T.’s behalf, later redirecting S.T.’s benefit payments into her own account. Social Security Administration records show deposits of $42,638.29 on Oct. 17, 2024, and $2,302.00 the next day.
S.T. died on Oct. 19, 2024. Despite being notified of his death, Locke allegedly withdrew tens of thousands of dollars in the days that followed and failed to return the funds after being directed to do so.
If convicted, Locke faces up to ten years in federal prison for each count of theft of government money, plus a mandatory consecutive two‑year sentence for aggravated identity theft.
The FBI Dallas conducted the investigation into the mortgage‑fraud scheme.
The Social Security Administration – Office of Inspector General, Veteran’s Administration OIG and Texas Attorney General’s Office – Medicaid Fraud Control Unit investigated the Social Security benefits theft scheme.
Assistant U.S. Attorneys Elise Aldendifer and Chad Meacham from the Fraud section are prosecuting the cases.
An indictment is an allegation, and the defendants are presumed innocent until proven guilty.
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11 September 2026
Western District of Texas U.S. Attorney’s Office Reaches 500 New Immigration Cases Through First 2 Weeks of SeptemberRead the Press Release
SAN ANTONIO – Federal prosecutors in the Western District of Texas filed 500 new immigration and immigration-related criminal cases from August 28 through September 10, announced U.S. Attorney Justin R. Simmons. 449 of those new cases were split between the district’s Del Rio and El Paso offices. Charges were brought against alien smugglers and illegal aliens with past convictions for child sex crimes, numerous DWIs, violent crimes, thefts, and numerous prior removals.
Among the new cases, two U.S. citizens are charged with bringing in and harboring aliens after they were arrested on Sept. 4 near Fort Hancock. A U.S. Border Patrol agent camera operator observed six individuals walking north from the direction of the Rio Grande River in an area known to be utilized by transnational criminal organizations for the illegal entry and rapid pickup of smuggled aliens. Around the same time and in the same remote area, according to a criminal complaint, another USBP agent encountered a vehicle traveling south. The agent stopped the vehicle and inquired about the occupants’ destination, redirecting them to the gas station they claimed to be looking for, located in the opposite direction. Soon after that encounter, another agent conducted an investigatory stop on the vehicle while it was traveling north toward I-10. The criminal complaint alleges that during the investigatory stop, the USBP camera operator observed the group of six individuals began running south. The complaint alleges that the two vehicle occupants, identified as George Soledad-Lucero and Sarah Nicole Olivas, agreed to be transported to the Fort Hancock Border Patrol Station for questioning about their whereabouts that morning. It further alleges that while Soledad-Lucero provided conflicting statements, Olivas stated the two were driving enroute to pick up illegal aliens and expected to be paid $2,000. Soledad-Lucero allegedly recruited Olivas for the use of her vehicle and the two communicated through Instagram.
An illegal alien from Mexico was charged with illegal re-entry after being arrested approximately 10 miles west of the Tornillo Port of Entry. Jorge Herrera-Vargas was recently deported from the U.S. for the ninth time on July 16. In June, he was convicted for his third DUI.
Christian Ernesto-Lopez, also an illegal alien from Mexico, was found approximately four miles west of the Fort Hancock POE after being removed from the U.S. on Aug. 3, through Jacksonville, Florida. In April 2025, Ernesto-Lopez was convicted of assault by strangulation and assault with a deadly weapon in Raleigh, North Carolina. His criminal record also includes two convictions for domestic violence, including one for assaulting a pregnant woman.
Santos Gomez-Delacruz, an illegal alien from Guatemala, was found approximately 20 miles east of the Fort Hancock POE after being removed for the seventh time in March. He now faces an illegal re-entry charge.
In Del Rio, USBP agents arrested Johan Alexander Moncada-Narvaez, an illegal alien from Venezuela, and charged him with illegal re-entry. Moncada-Narvaez was deported for the first time in August. In July, he was convicted of engaging in prostitution with a 14 to 15-year-old and engaging in electronic communication relating or describing sexual conduct with a child. For those two convictions in Clay County, Minnesota, Moncada-Narvaez was sentenced to five years of probation.
Iden Escobar-Loaiza, an illegal alien from Guatemala, was arrested and charged with illegal re-entry. In 2023, he was convicted of his third DUI. Escobar-Loaiza has also been convicted of inflicting corporal injury and disorderly intoxication.
Illegal alien from Mexico Adrian Missael Gonzalez was also charged with illegal re-entry in Del Rio. Gonzalez has been removed from the U.S. twice before and has a criminal record that includes two convictions for burglary of a vehicle, vehicle theft, and property theft.
Jorvin Joseph Ramos-Orellana, an illegal alien from Honduras, was arrested in Eagle Pass and charged with illegal re-entry. Ramos-Orellana was deported for the first time in February, after being convicted in 2025 of terroristic threats and acts, reckless conduct, and aggravated assault.
Oscar Ernesto Romero-Aravelo, an illegal alien from El Salvador who has been deported four times, was arrested in Eagle Pass. His criminal record contains three DUI convictions.
These cases were referred or supported by federal law enforcement partners, including ICE, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the FBI, the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional assistance from state and local law enforcement partners.
The U.S. Attorney’s Office for the Western District of Texas comprises 68 counties located in the central and western areas of Texas, encompasses nearly 93,000 square miles and an estimated population of 7.6 million people. The district includes three of the five largest cities in Texas—San Antonio, Austin and El Paso—and shares 660 miles of common border with the Republic of Mexico.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
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Two Mescalero Men Plead Guilty to AssaultRead the Press Release
ALBUQUERQUE – Two Mescalero men pleaded guilty to federal assault charges stemming from an unprovoked attack that left a victim with serious head injuries.
According to court documents, on September 11, 2025, John Doe was at a residence within the exterior boundaries of the Mescalero Apache Indian Reservation when he was assaulted by Harlyn Cody Geronimo, 50, and Raymond Shaun Chee, 28, both enrolled members of the Mescalero Apache Tribe. Geronimo and Chee struck John Doe in the head during the assault. Geronimo also struck John Doe with his fists and a pair of rain boots and kicked him while he was on the ground. The assault caused significant contusions and a 4-centimeter scalp laceration to John Doe’s head and resulted in serious bodily injury.
Witnesses reported that Geronimo, who was wearing steel-toed boots, kicked John Doe in the head. After the incident, Chee fled the scene.
Following his arrest, Geronimo’s steel-toed boots were recovered and found to contain dried blood. Geronimo later denied assaulting John Doe, despite witness statements to the contrary.
Geronimo and Chee pleaded guilty to assault resulting in serious bodily injury. At sentencing, they face up to 10 years in prison followed by up to three years of supervised release.
First Assistant U.S. Attorney Ryan Ellison made the announcement today.
The Bureau of Indian Affairs investigated this case. The Las Cruces Branch Office of the U.S. Attorney’s Office for the District of New Mexico is prosecuting the case.
Two Dallas-area women sentenced in nationwide identity theft fraud schemeRead the Press Release
HOUSTON – Two women have been ordered to federal prison for participating in an aggravated identity scheme that targeted JCPenney stores across the country.
Cabria Cunningham, 27, Rowlett, and Mykiah Furlough, 27, Dallas, pleaded guilty Sept. 5, 2025, and Feb. 19, 2026, respectively.
U.S. District Judge David Hittner has ordered both Cunningham and Furlough to serve 24 months in federal prison. Both must also serve one year of supervised release following their prison terms and pay restitution to the victims. In imposing the sentences, the court noted that Furlough’s relative, Ashley Urune, recruited both women into the scheme.
In 2022 and 2023, the three women traveled to JCPenney stores across the country and posed as legitimate customers who had JCPenney-branded credit cards. They used fraudulent identification and customers’ personal information to access credit accounts at the register.
They then used those accounts to purchase merchandise and gift cards, which they later sold on social media.
Furlough and Cunningham were permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.
Urune, 34, Dallas, was also charged and previously pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft. She is set for sentencing Dec. 3.
U.S. Postal Inspection Service conducted the investigation with the assistance of the U.S. Marshals Service. Assistant U.S. Attorney Stephanie Bauman prosecuted the case.
Texas Man Sentenced to Prison for Promoting Abusive Tax ShelterRead the Press Release
A Texas man was sentenced this week to 60 months in prison for promoting an abusive tax shelter to business owners around the country.
According to court documents, Aanand Shukla, of Jonestown, Texas, pleaded guilty to conspiracy to defraud the United States related to his efforts to promote a fraudulent tax shelter to business owners across the country. According to court documents and statements made in court, from 2017 to 2025, Shukla and his co-conspirators promoted, sold and personally used an abusive trust tax shelter that promised clients — for quoted fees as high as $225,000 — that they could “own nothing, control everything” and eliminate taxes on nearly all of their business income while maintaining full control over their money.
Shukla marketed the scheme nationwide through seminars, webinars, podcasts and direct sales pitches. He instructed clients to restructure their companies so that approximately 98% of their business income flowed through layered trusts and a private family foundation. He told clients to run personal expenses — such as vehicles, entertainment and mortgage payments — through trust accounts and claim those expenses as deductions. Shukla typically sold these trust packages to clients for $25,000 to $55,000, created trust documents, trained other promoters and referred clients to tax preparers he had personally selected and knew would participate in the scheme. Shukla facilitated the concealment of more than $27 million in income from the IRS.
On March 10, Shukla pleaded guilty to one count of conspiracy to defraud the United States.
Assistant Attorney General Colin McDonald of the Justice Department’s Nation Fraud Enforcement Division and U.S. Attorney Justin R. Simmons for the Western District of Texas made the announcement.
IRS Criminal Investigation investigated this case.
Acting Assistant Deputy Chief Boris Bourget, Trial Attorney Michael L. Jones and former Trial Attorney Lauren K. Pope of the National Fraud Enforcement Division’s Tax Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Three Illegal Aliens Plead Guilty in Federal Court to Sex Trafficking by Force, Fraud, and Coercion and Conspiracy to Commit Sex Trafficking by Force, Fraud, and CoercionRead the Press Release
Maurilio Lazcano-Vargas, age 40, of Mexico, who is present in the United States without authorization, pleaded guilty before U.S. Chief Judge Shelly D. Dick to sex trafficking by force, fraud, and coercion. Edyn Efrain-Arevalo, age 53, of Guatemala, and Zabdi Guzman-Diaz, age 41, of Mexico, who are also present in the United States without authorization, pleaded guilty to conspiracy to commit sex trafficking by force, fraud, and coercion.
According to admissions made as part of their pleas, since at least August 2024, Lazcano-Vargas operated a prostitution scheme that prostituted women, many of whom were illegal aliens in the United States, in various locations in Louisiana. He operated the prostitution venture with his co-defendants, Efrain-Arevalo and Guzman-Diaz, and would ensure that the women that he prostituted would perform commercial sex acts and provide him or others with the money that they earned from such acts.
Specifically, beginning in and after October 2025, Lazcano-Vargas placed online ads through social media mobile and computer applications for commercial sex acts featuring women in the Middle District of Louisiana. He along with others, rented apartments in the Baton Rouge, Kenner, and New Orleans areas so that women could engage in these acts.
In furtherance of the conspiracy, Lazcano-Vargas and others would take the money that the women made, tell the women the prices they were to charge and the amount of time that corresponded with the prices along with any rules for acts that were an extra charge, and communicate directly with other participants in the sex trafficking at the end of the night. Lazcano-Vargas and others also would monitor the total number of men that each women had commercial sex with and how much money was made. A single young woman would have as many as 20 “Johns” or more in one day.
U.S. Attorney Kurt Wall stated, “These defendants not only entered our country illegally, but then took advantage of these young women by trafficking them for sexual activity. These crimes check the boxes of the highest priorities of our office and this Administration.” Wall applauded the teamwork of the several agencies involved which included the U.S. Immigration and Customs Enforcement, U.S. Department of Homeland Security – Homeland Security Investigations, Social Security Administration, Office of the Inspector General, Louisiana Bureau of Investigation, and East Baton Rouge Parish Sheriff’s Office. Assistant U.S. Attorney Stephen Vick and Special Assistant U.S. Attorney Allen Ross lead the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
Springfield Man Sentenced to over 20 Years for Meth and FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court yesterday for possession with the intent to distribute methamphetamine and possessing a firearm in furtherance of a drug-trafficking crime.
Roy Dewayne Reed, 46, was sentenced by U.S. District Judge Megan Blair Benton, to 262 months in federal prison without parole, followed by four years’ supervised release.
On Sept. 10, 2025, an officer with the Springfield Police Department (SPD) conducted a traffic stop on a silver Dodge Ram pickup truck driven by Reed at a gas station on East Division Street. As an officer attempted to contact Reed, he reversed his vehicle toward the officer and fled into midday traffic at a high rate of speed, driving in the median, and taking Interstate 44 briefly. Officers pursued Reed but ultimately abandoned the pursuit in the interest of public safety.
Less than an hour later, officers with the Greene County Sheriff’s Office located Reed’s truck at a residence on East Division. Officers located two loaded handguns and six plastic baggies of methamphetamine with a combined weight of approximately 111.84 grams inside two crossbody bags located in the back of the truck. Surveillance footage from the residence showed Reed throwing both bags, one at a time, into the back of the truck.
Reed is a career offender, with eleven previous felony convictions, including multiple assaults, manufacture and distribution of drugs, unlawful possession of firearms, resisting arrest, and motor vehicle theft. At the time that he committed the federal offenses, he was on probation for delivery of a controlled substance, unlawful possession of a firearm, and tampering with a motor vehicle.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Greene County, Missouri Sheriff’s Office, and the Springfield, Missouri Police Department.
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.
Sioux City Man Who Failed to Register as a Sex Offender Pleads Guilty in Federal CourtRead the Press Release
A man who escaped custody and failed to register as a sex offender pled guilty on September 10, 2026, in federal court in Sioux City.
Duane Levering, age 41, from Sioux City, Iowa, was convicted of one count of escape from custody and one count of failure to register as a sex offender. In 2005 Levering was previously convicted of aggravated sexual abuse of a minor in the United States District Court for Nebraska. Based on this conviction, Levering is required to register as required under the Sex Offender Registration and Notification Act.
At the plea hearing, evidence showed that on December 23, 2025, Levering began confinement following his conviction for failure to register as a sex offender. On April 23, 2026, the U.S. Marshals Service received a Notice of Escaped Federal Prisoner for Levering from the Bureau of Prisons stating Levering failed to return to Dismas Charities Residential Reentry Center from his reported employment site. Levering admitted he willingly left the center and failed to register his new residence with the sex offender registry while he was on the run.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Levering remains in custody of the United States Marshal pending sentencing. Levering faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and at least five years of supervised release following any imprisonment.
The case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 26-4019.
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Sex Offender Pleads Guilty to Escaping from Bloomfield Halfway HouseRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, today announced that ERIC STAGGERS, 43, pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in New Haven to escape from custody.
According to court documents and statements made in court, in March 2015, Staggers was sentenced in the Southern District of Alabama to 37 months of imprisonment and 25 years of supervised release for failing to register as a sex offender. Following his release from prison, Staggers moved to Connecticut and his supervision was transferred to the District of Connecticut. In September 2024, Staggers was sentenced in Hartford federal court to 21 months of imprisonment for violating several conditions of his supervised release.
On August 13, 2025, while Staggers was completing his sentence at the Drapelick Center, a Residential Reentry Center (halfway house) in Bloomfield, Staggers left the facility and claimed that he was headed to his place of employment. Later that morning, Drapelick Center staff learned that Staggers was not scheduled to work that day, contacted him, and directed him to return to the halfway house. Staggers failed to return.
Staggers was located and arrested in New Haven on November 30, 2025. He has been detained since his arrest.
Judge Bolden scheduled sentencing for December 21, at which time Staggers faces a maximum term of imprisonment of five years.
This matter has been investigated by U.S. Marshals Service and the Federal Bureau of Prisons. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
Registered Sex Offender Sentenced for Possession of Child Sexual Abuse MaterialRead the Press Release
LEXINGTON, Ky. – A Louisville, Ky., man, Timothy Acker, 57, was sentenced on Thursday to 120 months in prison by U.S. District Judge Karen Caldwell for possession of child pornography.
Acker was previously convicted in 2018 for distributing illegal material involving minors and was a registered sex offender. In 2024, law enforcement investigated and identified Acker as an online user operating multiple illicit content‑sharing groups on encrypted messaging platforms. In early 2025, a separate investigation by law enforcement led to the discovery of thousands of illicit images across multiple electronic devices in Acker’s possession. Some of these files corresponded to content distributed online through the earlier investigation. Acker admitted to knowingly possessing the child sexual abuse material that he obtained via the internet.
Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; Russell Coleman, Kentucky Attorney General; and Chief Clint Aldridge, Owenton Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, Kentucky Attorney General’s Office, Owenton Police Department. Assistant U.S. Attorney Mary Melton prosecuted the case on behalf of the United States. Collaboration from Leigh Ann Roberts, Commonwealth Attorney for Kentucky’s Fifteenth Judicial District, facilitated the federal adoption of the case.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Registered Sex Offender Charged with Sexual Exploitations of Children and Receipt and Distribution of Child PornographyRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced today that DUSTIN TOMPKINS, a registered sex offender, was charged with sexual exploitation of children by persuading, and attempting to persuade, them to create and send him sexually explicit images, receipt and distribution of child pornography, and committing offenses against children while being a registered sex offender. TOMPKINS, who is currently detained on charges that he violated the terms of his supervised release, was presented today before U.S. Magistrate Judge Andrew E. Krause in White Plains federal court.
“The Southern District of New York will use every available tool to protect children,” said U.S. Attorney Jamie McDonald. “Dustin Tompkins represents every parent’s greatest fear: an adult who allegedly used social media to gain access to children and exploit them for his own sexual gratification. As alleged, while on supervision for a prior conviction for receipt and distribution of child pornography, Tompkins used social media to communicate with minors and persuade them to create and send him sexually explicit images. Tompkins is also alleged to have amassed additional child pornography via social media applications. If you have information to report, please immediately contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.”
As alleged in the Complaint:(1)
On or about March 18, 2015, TOMPKINS pled guilty in the United States District Court for the Southern District of New York to receiving and distributing child pornography, in violation of Title 18, United States Code, Section 2252A(a)(2) and (b)(1), and was subsequently sentenced to 77 months in prison to be followed by a lifetime term of supervised release.
On or about January 30, 2026, officers from the U.S. Probation Office conducted a routine supervisory visit and discovered hidden in TOMPKINS’s bedroom an unsanctioned smartphone. A subsequent court-authorized search of that smartphone found images comprising child pornography. The search of the smartphone further revealed that, on or about January 24, 2026, TOMPKINS had created a messaging group using a social media application by which he received and viewed approximately 55 files containing child pornography.
Finally, the smartphone search found that TOMPKINS, using a second social media application, had posed as an adult woman and exchanged messages with minors. Specifically, on or about October 14, 2025, Tompkins directed a 13-year-old to engage in sexually explicit conduct, photograph the conduct, and transmit the photograph to him. Then, on or about December 26, 2025, Tompkins directed, and attempted to direct, a 16‑year-old to engage in sexually explicit conduct, photograph and record the conduct, and transmit the photograph and video to him.
There may be other victims. If you have information to report, please contact the FBI at 1‑800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.
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TOMPKINS, 38, of Mount Kisco, New York, is charged with two counts of sexual exploitation of a child, which each carry a minimum sentence of 25 years in prison and a maximum sentence of 50 years in prison. TOMPKINS is also charged with one count of receipt and distribution of child pornography, which carries a minimum sentence of 15 years in prison and a maximum sentence of 40 years in prison. TOMPKINS is finally charged with one count of committing the offenses charged in Counts One and Two while being a registered sex offender, which requires a sentence of 10 years in prison to be served consecutively to any sentence imposed pursuant to Counts One and Two.
The statutory minimum and maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. McDonald thanked Homeland Security Investigations of the Department of Homeland Security and the United States Probation Office.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Samantha Briggs and John Wynne are in charge of the prosecution.
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As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Portland Man Found Guilty of Stealing Pandemic Relief FundsRead the Press Release
PORTLAND, Ore.—A federal jury found Beniamin Lucescu, age 57, a Portland resident, guilty today of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering.
According to court documents and evidence presented at trial, between April 2020 and May 2022, during the ongoing COVID-19 pandemic, Beniamin Lucescu and his wife, Georgeta Lucescu, conspired to steal almost $500,000 in pandemic relief funds by lying to the Small Business Administration about their intended use of the funds. Beniamin Lucescu repeatedly lied on the applications for the relief funds, claiming they would only use them for economic injuries their business, Rose City Senior Care, suffered as a result of the COVID-19 pandemic. In reality, Beniamin Lucescu planned to use the pandemic relief funds for personal expenses and investments. As soon as they received the pandemic relief funds, Beniamin Lucescu used almost all of the $500,000 to pay off their old personal federal tax debt and invest in cryptocurrency.
“The pandemic was a time of unprecedented hardship, when Americans needed their government’s help most. Beniamin Lucescu chose to exploit that crisis for his own gain. His fraud stole critical taxpayer-funded resources from Americans who were counting on them. We will not tolerate those who abuse government relief programs for personal profit. Thanks to the dedicated work of the SBA-OIG and my office, Lucescu was held accountable and brought to justice,” said Scott E. Bradford, U.S. Attorney for the District of Oregon.
On September 17, 2025, a federal grand jury in Portland returned an eight-count superseding indictment charging Beniamin and Georgeta Lucescu with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. Beniamin Lucescu was also charged with money laundering.
Beniamin Lucescu will be sentenced on December 14, before a U.S. District Judge.
Georgeta Lucescu is scheduled for trial on February 8, 2027. Georgeta Lucescu is charged by indictment. An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Small Business Administration Office of Inspector General with assistance of the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Meredith Bateman and Special Assistant United States Attorney Ethan Bodell.