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29 August 2025
Lakeland Man Sentenced to 11 Years for Distributing Methamphetamine and Possessing A Firearm and Ammunition as A Convicted FelonRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn K. Mizelle has sentenced Moreno Fenelus (44, Lakeland) to 11 years in federal prison for distribution of methamphetamine and possession of a firearm and ammunition by a convicted felon. Fenelus pleaded guilty on March 28, 2025.
According to court documents, between January and March 2023, Fenelus sold various narcotics to a confidential source (CS) working for the Lake County Sheriff’s Office. In January 2023, Fenelus sold cocaine and para-fluorofentanyl, an analogue of fentanyl, to the CS. In February 2023, Fenelus sold a mixture of fentanyl and para-fluorofentanyl to the CS, and in March 2023, Fenelus sold methamphetamine to the CS.
In July 2023, law enforcement executed a search warrant at Fenelus’s home and located cocaine, para-fluorofentanyl, six firearms, and various ammunition, which belonged to Fenelus. At that time, Fenelus had been convicted of a prior felony offense. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Ross Roberts.
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.
Lake County Woman Pleads Guilty to Making False Statements and Smuggling Drugs into Federal PrisonRead the Press Release
Ocala, Florida – United States Attorney Gregory W. Kehoe announces that Michelle Nicole Marie Brannon (36, Lake County) has pleaded guilty to one count of making a materially false statement or representation to a federal agency and one count of providing contraband to a federal prisoner. She faces a maximum of five years in federal prison on each of the offenses. A sentencing date has not yet been set.
According to the court records, on April 27, 2025, Brannon visited her brother, an inmate at the Coleman Federal Correctional Complex in Sumter County. As Brannon was being screened before the visitation, she made a materially false representation to a correctional officer that she did not have any narcotics in her possession. Subsequently, she was caught providing her brother with buprenorphine, a Schedule III controlled substance. Federal inmates are prohibited from possessing controlled substances in the prison facility.
This case is being investigated by the Drug Enforcement Administration and the Federal Bureau of Prisons. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.
Keene Man Pleads Guilty to Child Exploitation OffenseRead the Press Release
CONCORD – A Keene man pleaded guilty to a child exploitation offense, U.S. Attorney Erin Creegan announces.
Connor Mueller, 31, pleaded guilty to possessing child sexual abuse material (CSAM).
U.S. District Judge Steven McAuliffe scheduled sentencing for December 16, 2025.
In 2023, an undercover law enforcement operation identified Mueller as using specialized peer-to-peer software to receive videos containing CSAM. The same software allowed other users to access materials shared by Mueller. Law enforcement subsequently searched Mueller’s home and discovered multiple devices which together contained numerous images and videos depicting child sexual abuse.
The charging statute provides a sentence of up to 20 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statues which govern the determination of a sentence in a criminal case.
Homeland Security Investigations led the investigation. Valuable assistance was provided by the New Hampshire Internet Crimes Against Children Task Force and the Keene Police Department. Assistant U.S. Attorney Matthew Vicinanzo is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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Juvenile Pleads Guilty to Firing Multiple Rounds in an Elementary School PlaygroundRead the Press Release
WASHINGTON – Travis Thomas, 17, of Washington, D.C., pleaded guilty today to shooting multiple rounds in an elementary school playground and armed carjacking charges, announced U.S. Attorney Jeanine Ferris Pirro. Thomas was charged as an adult under Title 16.
Thomas pleaded guilty to one count of assault with intent to kill while armed and two counts of armed carjacking. The Honorable Judge Neal Kravitz, of the Superior Court of the District of Columbia, scheduled sentencing for November 14, 2025.
According to the government’s evidence, on April 20, 2025, Thomas got into an online argument with another individual, whom he believed to be affiliated with a rival crew. Thomas proceeded to travel to the 300 block of 53rd Street SE, where he exited a vehicle and fired over 15 rounds into the playground of C.W. Harris Elementary School. One victim suffered a gunshot wound to the forehead and was taken to a local hospital, where surgeons had to remove a bullet. The victim suffered a skull fracture.
The government’s investigation also revealed Thomas as a suspect from two separate armed carjackings, the first of which occurred on October 30, 2024, in the parking garage of the Safeway grocery store, located at 415 14th Street SE, and the second of which occurred on November 17, 2024, in the 1300 block of Massachusetts Avenue SE.
Thomas was arrested on April 25, 2025, and remains in custody.
Joining the announcement was Chief Pamela Smith of the Metropolitan Police Department.
In announcing the plea, U.S. Attorney Pirro and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the work of Assistant U.S. Attorney Jacob Green, who is prosecuting the case.
Justice Department Files Motion for Summary Judgment in Challenge to New York’s “Climate Change Superfund Act”Read the Press Release
The Justice Department’s Environment and Natural Resources Division (ENRD) today filed a motion for summary judgment in its challenge to the State of New York’s “Climate Change Superfund Act,” which imposes $75 billion in liability on foreign and domestic energy companies for their alleged past contributions to climate change. The complaint was filed in May, along with a complaint against the State of Vermont for its similar statute, to advance President Donald J. Trump’s executive order to protect American energy from state overreach.
As the Justice Department explains in its motion, “New York has declared war on those responsible for supplying our Nation with reliable and affordable energy, and it is trampling over federal law in the process.” Further, the motion says, “the Court should end New York’s lawless overreach by granting the United States’ motion for summary judgment, declaring the Superfund Act invalid and unenforceable, and permanently enjoining Defendants from taking any actions to implement or enforce it.”
“New York has overstepped its authority in trying to impose crippling financial penalties on the world’s largest energy providers,” said Acting Assistant Attorney General Adam Gustafson of ENRD. “Individual states have no authority to regulate nationwide and global greenhouse gas emissions. The courts must put a stop to New York’s brazen disregard of federal law, the Constitution, and binding precedent, not to mention our Nation’s energy needs.”
Chief of Staff and Senior Counsel John Adams and Counsel to the Assistant Attorney General Riley Walters of ENRD filed the motion.
Justice Department Announces Acting Director of the U.S. Trustee ProgramRead the Press Release
Attorney General Pamela Bondi has selected Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP), the Justice Department announced today.
Elliott has 31 years of federal service, the majority of which has been with the USTP. Since 2011, she has served as Deputy Director and General Counsel for the Executive Office for U.S. Trustees in Washington, D.C. As the USTP’s chief legal officer, she has overseen the formulation of the USTP’s national legal policies in consumer and business cases as well as litigation strategies in significant matters before bankruptcy courts and in appeals. This includes leading the USTP’s efforts culminating in the Supreme Court’s historic decision in Harrington v. Purdue Pharma LP, 144 S. Ct. 2071 (2024), holding that the Bankruptcy Code does not authorize non-consensual third-party releases. Elliott was previously Acting Director of the USTP from April 2022 to February 2023. She is the USTP’s liaison to the Judicial Conference’s Advisory Committee on Bankruptcy Rules and a Fellow of the American College of Bankruptcy.
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 88 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Jefferson County Man Admits Recording Sexual Abuse of Two MinorsRead the Press Release
ST. LOUIS – A Jefferson County, Missouri man on Friday admitted sexually abusing two girls and recording that abuse.
Benjamin F. Sexton Jr., 48, pleaded guilty to one count of production of child pornography, one count of coercion and enticement of a minor and one count of receipt of child pornography.
In 2023, the grandfather of one victim discovered explicit communications between that victim and Sexton. The victim told investigators that Sexton sexually abused her between the ages of 7 and 14 and recorded some of that abuse, Sexton admitted as part of his guilty plea. He also solicited sexual images via Snapchat and gave her methamphetamine.
A second victim told law enforcement that Sexton sexually abused her multiple times when she was 15, and investigators found images of the teen in Sexton’s Google account.
Sexton is scheduled to be sentenced on December 2. Assistant U.S. Attorney Jillian Anderson will recommend 27 years in prison for his crimes.
The St. Louis County Special Investigations Unit, the Jefferson County Sheriff’s Office and the FBI investigated the case. Assistant U.S. Attorney Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Woman Sentenced to 21 Months in PrisonRead the Press Release
SOUTH BEND – Yesterday, Daneen Bilodeau, 50 years old, of Rockford, Illinois, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to wire fraud and bank fraud, announced Acting United States Attorney M. Scott Proctor.
Bilodeau was sentenced to 21 months in prison followed by 2 years of supervised release and ordered to pay $426,611.53 in restitution to the victim of the offense.According to documents in the case, between October 2015 through August 2019, Bilodeau devised a scheme to defraud and obtain money from her employer. She embezzled hundreds of thousands of dollars by withdrawing cash from the company account and making personal purchases on a company card.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Elkhart Police Department. The case was prosecuted by Assistant United States Attorney Jerome W. McKeever.
Illegal Alien and Mexican National Sentenced to 215 Months for Possession with Intent to Distribute Kilograms of MethamphetamineRead the Press Release
Defendant possessed over four pounds of 100% pure Methamphetamine
BRUNSWICK, GA: On August 28, 2025, in Brunswick, Georgia, the Honorable Lisa Godbey Wood sentenced the defendant, Ismael Delgado-Celis, 37, a Mexican national illegally living in Hazlehurst, Georgia, to a term of 215 months of imprisonment for Possession and Attempt to Possess with Intent to Distribute 500 grams or more of Methamphetamine.
The sentencing followed a jury trial in the Southern District of Georgia, where the Defendant was found guilty of possessing and attempting to possess with the intent to distribute over four pounds of 100% pure methamphetamine. There is no parole in the federal system.
During testimony and evidence presented during the trial, the Government established that on September 12, 2024, the Defendant attempted to receive a package directly from Mexico containing what was described as a horse saddle. Upon further inspection, law enforcement found methamphetamine hidden inside. Before the package was delivered, law enforcement agents removed the saddle and the over two kilograms of pure methamphetamine that had been hidden inside. The evidence revealed that this horse saddle seemed to have been constructed around the package of drugs, a sophisticated method of importing illegal drugs into the United States. The package was then delivered to the Defendant by law enforcement under the ruse of an actual package delivery by the United States Postal Service. The Defendant accepted the package from law enforcement, brought it inside his residence to store before distributing, and was subsequently arrested by law enforcement.
“Methamphetamine destroys lives, families, and communities. This amount of methamphetamine could have devastated the community. I am pleased to work with such great law enforcement partners. It takes a network of law enforcement professionals to dismantle a network of criminals,” stated United States Attorney Margaret E. Heap.
“The sentencing of Delgado-Celis underscores the unwavering commitment of Homeland Security Investigations to protect our communities from the devastating impact of drug trafficking,” said Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama Steven N. Schrank. “Smuggling pure methamphetamine hidden in a horse saddle and shipping it across the country is not only brazen but deeply harmful to the safety and well-being of our communities. This case is a testament to the tireless efforts of HSI and our law enforcement partners to ensure that those who seek to flood our streets with dangerous drugs are held accountable. We will continue to pursue justice and dismantle criminal networks wherever they operate.”
“Using a shipping service to traffic dangerous drugs not only threatens our communities but also places unsuspecting workers at risk,” said Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division. “DEA investigators remain committed to intercepting these packages and stopping the poison before it reaches the streets.”
“Postal Inspectors will continue to support our law enforcement partners in the removal of lethal and dangerous drugs to keep communities safe,” said Rodney M. Hopkins, Inspector in Charge of the Atlanta Division.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigation, Customs and Border Protection, and the Jeff Davis Sheriff’s Office. The case was prosecuted for the United States by Southern District of Georgia Assistant United States Attorney Ryan Bondura and Deputy Criminal Chief E. Greg Gilluly, Jr.
Illegal Alien Who Concealed Kilos of Fentanyl in a Diaper Box and Hid Firearms Under a Bed Faces Federal ChargesRead the Press Release
Atlanta – Alexis Carreon Bocanegra, an illegal alien from Mexico, was arrested and detained in federal court on charges related to his alleged distribution of fentanyl and possession of firearms.
“Bocanegra, an illegal alien, allegedly tried to hide a significant amount of deadly fentanyl and unlawfully armed himself to protect his stash,” said U.S. Attorney Theodore S. Hertzberg. “Thanks to the diligent investigation of our law enforcement partners, Bocanegra is now in federal custody. His fentanyl will never hit the streets, and his guns will no longer threaten the safety our community.”
“Fentanyl is a poison that continues to claim lives, and combining it with firearms only increases the danger,” said Jae W. Chung, the Acting Special Agent in Charge of the DEA Atlanta Division. “DEA is committed to removing both from our streets.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: Between February and March 2025, DEA agents conducting surveillance allegedly saw Bocanegra handle suspected illegal drug proceeds worth approximately $400,000. Additionally, in March 2025, Bocanegra allegedly distributed a vacuum-sealed package containing approximately a kilogram of fentanyl.
On August 25, 2025, DEA agents arrested Bocanegra and searched his Stone Mountain home. They found two firearms, including an AR-15 rifle, hidden under a bed. Agents also located approximately 5.5 kilograms of fentanyl concealed in a Huggies diaper box inside a nearby shed.
Alexis Carreon Bocanegra, 25, a Mexican citizen with no legal status in the United States, was charged in a criminal complaint on August 27, 2025, with possession with the intent to distribute fentanyl and possession of a firearm by an illegal alien. On August 28, 2025, a federal magistrate judge ordered Bocanegra to remain in federal custody without bail.
Members of the public are reminded that the criminal complaint only contains charges. The defendant is presumed innocent of the charges, and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Drug Enforcement Administration with valuable assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Gwinnett County Sheriff’s Office; the Atlanta Police Department; the DeKalb County Police Department; and the Sandy Springs Police Department.
Assistant United States Attorney James Hwang is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
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.
Honduran National Guilty of Reentry of a Deported AlienRead the Press Release
NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that BRYAN JAVIER PEREZ-ESPINOZA (“PEREZ-ESPINOZA”), age 33, a native of Honduras, pleaded guilty on August 13, 2025, for reentry of removed alien, in violation of Title 8, United States Code, Section 1326(a) (Count 1), and for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(8) (Count 2).
According to court documents, PEREZ-ESPINOZA, an illegal alien, was found in Orleans Parish on March 23, 2024. He had previously been removed to Honduras on September 30, 2022.
For Count One, PEREZ-ESPINOZA faces a maximum penalty of 2 years of imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. As to Count Two, the maximum penalty is 15 years of imprisonment, followed by 3 years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Acting U.S. Attorney Simpson praised the work of the U.S. Customs and Border Protection in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit oversees the prosecution.
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Honduran Man Guilty of Illegal Reentry of a Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that WILIAN SERRANO-MOREIRA (“SERRANO”), age 34, pleaded guilty on August 26, 2025 to illegal reentry of a previously removed alien, in violation of Title 8, United States Code, Section 1326(a). His sentencing is set for October 9, 2025, before United States District Judge Nannette Jolivette Brown.
According to the charging document, SERRANO was found in the United States on April 15, 2023, having reentered the United States without authorization from the Attorney General of the United States after being previously deported on July 17, 2019. He faces a maximum term of imprisonment of two (2) years, followed by up to one (1) year of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Acting U.S. Attorney Simpson praised the work of the United States Immigration and Customs Enforcement, Enforcement and Removal Operations, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.
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Honduran Citizen Sentenced for Illegal ReentryRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that United States District Judge Susie Morgan sentenced DERY JONCARLOS ZELAYA-ZELAYA a/k/a “DERY ZELAYA,” (“ZELAYA-ZELAYA”), age 27, on August 26, 2025, to twelve (12) months imprisonment in federal prison after having previously pled guilty to illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a). The Court also sentenced ZELAYA-ZELAYA to one (1) year of supervised release upon his release from prison and ordered him to pay a mandatory $100 special assessment cost.
According to court documents, ZELAYA-ZELAYA, a citizen of Honduras, was previously removed from the United States on May 13, 2022 and December 4, 2019, respectively and had not received permission from the Attorney General of the United States or the Secretary of the Department of Homeland Security to reenter.
Acting U.S. Attorney Simpson praised the work of the United States Immigration and Customs Enforcement, Enforcement Removal Operations in investigating this matter. Assistant United States Attorney Duane A. Evans of the General Crimes Unit is in charge of the prosecution.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Guatemalan National Convicted and Sentenced for Unlawful Reentry into the United StatesRead the Press Release
CONCORD – A Guatemalan national pleaded guilty and was sentenced for unlawful reentry into the United States, U.S. Attorney Erin Creegan announces.
Jorge Misael Niz, 43, a Guatemalan national unlawfully residing in Salem, pleaded guilty and was sentenced by U.S. District Court Judge Samantha D. Elliott to time served, or two months. Niz is currently in the custody of Immigration and Customs Enforcement (ICE) for removal to Guatemala.
Niz was previously ordered to be removed from the United States by an Immigration Judge and was deported to Guatemala on March 30, 2006. On the evening of April 27, 2025, the Salem Police Department responded to an apartment after receiving a report of a domestic violence incident. Law enforcement arrested Niz for simple assault. After learning of the defendant’s immigration status, they referred him to ICE.
ICE led the investigation. The Salem Police Department provided valuable assistance. Assistant U.S. Attorney Matthew Vicinanzo prosecuted the case.
This effort is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
###Fries Man Sentenced for Threatening United States OfficialsRead the Press Release
ABINGDON, Va. – A Fries, Virginia man, who mailed threats to harm multiple federal officials including a judge, probation officer, prosecutor, and a defense attorney from the Federal Public Defender’s Office, all while incarcerated on state charges, was sentenced today to 42 months in federal prison.
Jonathan Reed Stiltner, 50, pled guilty in March 2025 to one count of mailing threats to injure officers of the United States.
“Every day, judges, the judiciary staff, prosecutors, and public defenders work for the American justice system and should be free to do their work for our great Nation without fear of violence or retaliation,” Acting United States Attorney Robert N. Tracci said today. “This office will aggressively prosecute those who attack our justice system by threatening violence against those who serve it.”
According to court documents, while in custody pursuant to numerous state felony charges brought by Dickenson County, Stiltner handwrote a number of letters threatening to harm specific federal officials.
As a specific example, on November 13, 2023, Stiltner handwrote and mailed through the U.S. mail a letter threatening harm to a named federal judge, an Assistant United States Attorney, a federal probation officer, and a member of the Federal Public Defender’s Officer.
In his letter, Stiltner stated, in part, “Although Im (sic) incarcerated I still have people on the street who can do things and if Im (sic) not charged federally ASAP as I was told I would be Im (sic) going to send people to pay [specific government officials] visits.”
He also wrote, “Does someone have to get hurt to prove Im (sic) very serious.”
Robert N. Tracci, Acting United States Attorney for the Western District of Virginia and Anthony A. Spotswood, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the U.S. Marshals.
Four Hawaii Individuals Convicted of Tax Refund Fraud SchemeRead the Press Release
HONOLULU – A federal jury convicted four individuals from Hawaii this week for their roles in a tax refund fraud scheme.
The following is according to court documents and evidence presented at trial: from at least January 2015 through September 2018, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired to defraud the United States. As part of their scheme, the conspirators filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS issued refunds totaling over $1 million.
To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators created trusts, opened new bank accounts in the names of business entities and the trusts, and transferred the proceeds between the accounts to conceal them from the government. In addition, Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions. Dumlao and Daniel Miranda also each filed for bankruptcy and made false statements under oath in relation to their respective bankruptcy proceedings.
All the defendants were found guilty of conspiracy to defraud the United States. In addition, the jury found Lastimado-Dradi, Dumlao, and Elvah Miranda guilty of money laundering. Daniel Miranda and Dumlao were found guilty of making false statements under oath in a bankruptcy proceeding. Finally, Elvah Miranda was also found guilty of filing a false tax return, and Lastimado-Dradi was found guilty of aiding and assisting in the preparation of false tax returns. Dumlao was acquitted of filing a false tax return and four money laundering counts. Daniel Miranda was acquitted on one count of filing a false return.
Dradi and Dumlao are scheduled to be sentenced on January 26, 2026. Elvah Miranda and Daniel Miranda are scheduled to be sentenced on January 27, 2026. They all face a maximum penalty of five years in prison for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda each face a maximum penalty of ten years in prison for each count of money laundering. Elvah Miranda faces a maximum penalty of three years in prison for filing a false tax return. Daniel Miranda and Dumlao each face a maximum penalty of five years in prison for each count of making false statements under oath in a bankruptcy proceeding. Lastimado-Dradi faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.
Four Hawaii Individuals Convicted of Tax Refund Fraud SchemeRead the Press Release
A federal jury convicted four individuals from Hawaii this week for their roles in a tax refund fraud scheme.
The following is according to court documents and evidence presented at trial: from at least January 2015 through September 2018, Rosemarie Lastimado-Dradi, Marciaminajuanequita Dumlao, Elvah Miranda, and Daniel Miranda conspired to defraud the United States. As part of their scheme, the conspirators filed fraudulent individual tax returns and other tax documents that reported false withholdings from mortgage lenders and then claimed substantial refunds from the IRS. After processing the false returns, the IRS issued refunds totaling over $1 million.
To prevent the IRS from recovering the fraudulently obtained refunds, the conspirators created trusts, opened new bank accounts in the names of business entities and the trusts, and transferred the proceeds between the accounts to conceal them from the government. In addition, Lastimado-Dradi, Dumlao, and Elvah Miranda laundered the fraudulently obtained refunds through a series of bank transactions. Dumlao and Daniel Miranda also each filed for bankruptcy and made false statements under oath in relation to their respective bankruptcy proceedings.
All the defendants were found guilty of conspiracy to defraud the United States. In addition, the jury found Lastimado-Dradi, Dumlao, and Elvah Miranda guilty of money laundering. Daniel Miranda and Dumlao were found guilty of making false statements under oath in a bankruptcy proceeding. Finally, Elvah Miranda was also found guilty of filing a false tax return and Lastimado-Dradi was found guilty of aiding and assisting in the preparation of false tax returns. Dumlao was acquitted of filing a false tax return and four money laundering counts. Daniel Miranda was acquitted on one count of filing a false return.
Dradi and Dumlao are scheduled to be sentenced on Jan. 26. Elvah Miranda and Daniel Miranda are scheduled to be sentenced on Jan. 27. They all face a maximum penalty of five years in prison for conspiracy to defraud the United States. Lastimado-Dradi, Dumlao, and Elvah Miranda each face a maximum penalty of ten years in prison for each count of money laundering. Elvah Miranda faces a maximum penalty of three years in prison for filing a false tax return. Daniel Miranda and Dumlao each face a maximum penalty of five years in prison for each count of making false statements under oath in a bankruptcy proceeding. Lastimado-Dradi faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.
Former U.S. Postal Inspector Charged with Stealing over $330,000 in Cash from Elderly VictimsRead the Press Release
BOSTON – A former U.S. Postal Inspector was arrested and charged today for allegedly stealing over $330,000 in cash from packages mailed by elderly victims and then laundering the cash and failing to report it to the Internal Revenue Service. The defendant allegedly used the stolen cash to pay for a pool patio and lighting, granite countertop for his outdoor bar, Caribbean cruise expenses and escorts. He also is alleged to have stolen cash from an evidence locker and then blamed a direct report for the missing cash.
Scott Kelley, 51, of Pembroke, Mass. was charged in a 45-count indictment returned by a federal grand jury in Boston. Specifically, Kelley was indicted on five counts of wire fraud; five counts of mail fraud; five counts of mail theft by a postal officer; one count of theft of government money; 23 counts of money laundering; one count of structuring to evade reporting requirements; and five counts of filing false tax returns. Kelley is expected to make an initial appearance in federal court in Boston this afternoon.
Kelley was a Postal Inspector at the Boston Division headquarters of the U.S. Postal Inspection Service, the law enforcement arm of the Postal Service. From 2015 until June 2022, he was the Team Leader of the Mail Fraud Unit, which, among other things, investigated lottery and other scams that targeted senior citizens and other vulnerable populations. In June 2022, Kelley was transferred to serve as the Team Leader of the Mail Theft Unit, a position he held until August 2023.
According to the indictment, USPIS ran a nationwide crime-prevention program, Jamaican Operations Linked to Telemarketing (JOLT), to disrupt mail fraud scams originating in Jamaica that targeted U.S. residents with false promises of sweepstakes or lottery winnings. Posing as lottery representatives, scammers contacted elderly persons and other vulnerable victims and persuaded them to mail funds to pay “fees” or “taxes” that they supposedly needed to front before they could collect their prize. Postal Inspectors working on the JOLT program were authorized to intercept packages suspected to have been sent by scam victims. However, they were authorized to open a package only with the sender’s consent, otherwise they were required to mail the package back to the sender. If a sender consented to USPIS opening the package and the package contained cash, the Inspector was required to count the cash with another Inspector present as a witness and then have the cash converted into an official check payable to the sender.
According to the indictment, between January 2019 and Aug. 11, 2023, Kelley used deceptive emails to cause unwitting postal employees to intercept packages that a USPIS algorithm had flagged as likely having been mailed by JOLT scam victims and send them to him. In total, Kelley allegedly requested that approximately 1,950 packages be intercepted and mailed to him. It is alleged that Kelley opened intercepted parcels that looked or felt like they might contain cash, and that he stole any cash inside.The indictment identifies seven victims who were scammed into mailing cash in parcels that Kelley allegedly intercepted, and that he opened the parcels and stole the cash. The average age of the victims was 75, with the oldest victim being 82. The victims mailed between $1,400 and $19,100 cash. It is alleged that Kelley met with one victim in person and told them that that he did not know what had happened with their package and that their loss was their own fault because they had mailed cash. None of the victims recovered their packages or their cash.
It is further alleged that Kelley used a postal employee’s keypad code to unlock and enter an evidence vault at USPIS. Once inside, Kelley allegedly used another Postal Inspector’s key to open an evidence locker and steal $7,000 in cash. It is alleged that Kelley wrote a memo blaming the other Postal Inspector for the missing $7,000, which resulted in a USPS Office of Inspector General investigation. It is alleged that Kelley lied to investigators when questioned about the stolen cash, and that he placed the blame on the other Postal Inspector – who was one of his direct reports.
Kelley allegedly deposited and spent almost $340,000 cash – and did so in ways designed to hide the fact that he had stolen it. Specifically, he allegedly used almost $160,000 of the stolen cash to buy postal money orders, most of which he deposited into his own bank accounts or used to pay credit card bills. On more than 20 of those money orders, Kelley tried to hide the fact that he was both the payee and the purchaser by falsely listing certain relatives as the purchasers. He deposited over $130,000 of the stolen cash into his bank accounts but tried to avoid bank suspicion by spreading the deposits over 60 dates using four different bank accounts at two separate banks.
It is further alleged that Kelley also used some of the stolen cash to pay for goods and services including:
• $20,500 for the installation of a patio around his pool:
• $2,000 to have his pool heated; • $2,800 to have a granite countertop installed on his outdoor bar:
• $4,888 to have lights installed around his pool and outdoor bar; • $4,300 for bar drinks and other expenses incurred during three Caribbean cruises; and
• $15,400 for sexual services provided by two escorts with whom he texted using a burner phone and whom he met during workdays.Members of the public who believe they may be victims of this case or other elder fraud scams should contact [email protected]. Suspected mail fraud can also be reported to the U.S. Postal Inspection Service online or by calling (877) 876-2455.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of mail fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of mail theft by a postal officer each provide for a sentence of up to five years in prison, up to one year of supervised release and a fine of up to $250,000. The charge of theft of government money provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the value of the property involved in the transaction, whichever is greater. The charge of structuring provides for a sentence of up to five years in prison, up to one year of supervised release and a fine of up to $250,000. The charges of false tax returns each provide for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Michael Ray, Special Agent in Charge, Office of Professional Responsibility, Technical and Sensitive Operations Field Office, U.S. Postal Service Office of Inspector General; and Tom Demeo, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorneys Christine Wichers and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former St. Augustine Eighth Grade Teacher Pleads Guilty to Attempting to Entice and Use A 14-Year-Old Child to Produce A Sexual Abuse VideoRead the Press Release
Jacksonville, Florida – United States Attorney Gregory W. Kehoe announces that Matthew Christopher Yates (30, Hastings) has pleaded guilty to attempting to entice a 14-year-old child to engage in sexually explicit conduct for the purpose of producing a video of her own sexual abuse. Yates faces a minimum penalty of 15 years, up to 30 years, in federal prison and a potential life term of supervised release. His sentencing hearing is set for December 18, 2025. At the time of his arrest on March 11, 2022, Yates was employed as an eighth-grade teacher at Veritas Classical School in St. Augustine.
According to court documents, on February 11, 2022, an undercover FBI agent in Jacksonville, who was posing online as a 14-year-old child, responded to an online notice posted by the user “English teacher,” who was subsequently identified as Yates, on an online social media application (app). During this online text conversation, the “child” advised that “she” was 14 years old and in eighth grade, and Yates stated that he was a teacher, asking the “child,” “[e]ver fantasize about a teacher?” Yates and the “child” exchanged photos, and Yates stated, “I bet you look hot in a bikini.”
Between February 22 and March 11, 2022, Yates and the “child” exchanged more text messages, and Yates sent the “child” several photos, including an explicit photo of himself. On March 8, 2022, Yates asked the “child” to meet in person, and he detailed the specific sexual acts that he intended to perform on the “child.”
On March 10, 2022, Yates and the “child” confirmed plans to meet and Yates asked the “child” if “she” wanted to video-record their planned sexual activity so that the “child” “could remember it even better.” Yates told the “child” that he could use his cellphone to record their sexual activity and that he would delete the video later so that no one would see it.
On March 11, 2022, Yates drove to a prearranged location in Jacksonville to meet the “child” for sex and was arrested by FBI agents. A search incident to his arrest revealed that Yates brought several condoms and a cellphone with him. Yates later admitted that he was going to meet a 14-year-old girl that he had met online and that he intended to have sex with “her.”
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify, rescue, and seek justice for child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Postal Employee Admits Stealing Checks from Mail, Role in Bank Fraud SchemeRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that KIERRA BLOUNT, 35, formerly of Stamford and currently residing in Plymouth, North Carolina, pleaded guilty today before U.S. District Judge Sarala V. Nagala in Hartford to fraud and mail theft offenses.
According to court documents and statements made in court, Blount, at times while employed by the U.S. Postal Service in Stamford, stole mail and obtained stolen mail for the purpose of obtaining checks that were payable to other individuals. In approximately November 2021, Blount opened a bank account using the name and social security number of an individual without the identity theft victim’s knowledge. Blount and others fraudulently changed the payee names on stolen checks to the name of the identity theft victim, forged the victim’s signature on the back of the checks, and deposited them into the bank account Blount opened. From November 2021 until the account was closed in April 2022, Blount and others deposited approximately $156,000 in fraudulent checks into the account. Some check deposits were reversed by the bank, and Blount and others used approximately $81,000 for their own purposes.
On June 20, 2023, investigators conducted a court-authorized search of Blount’s Stamford residence and seized a significant amount of stolen mail and other items related to this scheme, including debit cards in the names of other individuals, checks totaling more than $285,000, and sheets of paper containing personal information of other individuals, including names, dates of birth, addresses, email addresses, and security question answers. Subsequent analysis of cell phones seized from Blount on that date revealed images of stolen checks, personal identifying information for more than 50 individuals, and communications using the Telegram app with unknown individuals involved in the scheme.
Blount was charged by indictment on March 26, 2024. She was arrested on June 17, 2024.
Blount pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of unlawful possession of stolen mail, which carries a maximum term of imprisonment of five years. Judge Nagala scheduled sentencing for December 9.
Blount is released on a $75,000 bond pending sentencing.
This matter has been investigated by the U.S. Postal Inspection Service Connecticut Organized Financial Fraud (CUT OFF) Task Force, which includes personnel from the Stamford, Milford, Westport, Fairfield, West Haven, West Hartford, and Bridgeport Police Departments. The case is being prosecuted by Assistant U.S. Attorney Shan Patel.
Former Orleans Parish Sheriff’s Office Employee and Slidell Resident Indicted for Conspiracy to Commit Theft and Bribery Concerning Program Receiving Federal FundsRead the Press Release
NEW ORLEANS – Acting U.S. Attorney Michael M. Simpson announced that KENNETH LAWSON (“LAWSON”), age 39, a resident of New Orleans, and AREION BANKS (“BANKS”), age 33, a resident of Slidell, were indicted on August 28, 2025 for conspiracy to commit theft and bribery concerning a program receiving federal funds, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(A), and 666(a)(1)(B).
According to the indictment, LAWSON was employed by the Orleans Parish Sheriff’s Office (OPSO) as Grants Manager in OPSO’s Grants Department between about August 2022 and November 29, 2024. In that capacity, LAWSON possessed the ability to request grant payments from grant originators and to issue checks from OPSO to companies acting as subgrantees under grants received by OPSO. LAWSON met BANKS in about March 2024. Shortly thereafter, LAWSON and BANKS devised a scheme in which LAWSON would exploit his position at OPSO to steal checks made out to subgrantees and cause them to be deposited into the financial accounts under the custody or control of LAWSON or BANKS. Thereafter, BANKS would pay bribes to LAWSON in the form of a portion of the resulting cash. On one such occasion, on or about August 12, 2024, BANKS paid LAWSON a bribe in the amount of approximately $5,900. This bribe stemmed from LAWSON’s successful diversion of approximately $15,000 from OPSO, without authorization, by exploiting LAWSON’s position with OPSO.
Additionally, in about July 30, 2024, LAWSON incorporated an entity entitled “Williams James Assoc. LLC.” (“Williams James”) with the State of Louisiana, and thereafter controlled and served as the registered agent and managing member for that entity. On the same day, LAWSON opened a business checking account at a financial institution based in Jefferson Parish, Louisiana. in the name of Williams James. Despite Williams James not having any relationship with, or providing services to, or on behalf of OPSO, LAWSON in his professional capacity with OPSO, engaged in a digital transaction requesting that the United States Department of Justice (DOJ) draw down a portion of a $3.907 million grant DOJ had previously awarded to OPSO. Specifically, he directed DOJ to send $100,000 of the grant funds to the Williams James financial account, without the knowledge or authorization of his supervisors. To make the transaction appear legitimate, LAWSON and BANKS agreed that BANKS, in exchange for a portion of the ill-gotten proceeds, would contact the financial institution and pose falsely as an OPSO employee who approved the transaction. LAWSON then sent detailed instructions on what to say to BANKS. BANKS then contacted the financial institution, falsely claimed to be an OPSO employee, and told a financial institution representative that OPSO approved the transaction. In fact, OPSO was unaware of, and had not approved, the transaction.
Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
If convicted, LAWSON and BANKS each face up to five years in prison, up to a $250,000 fine, up to three years of supervised release, and a $100 mandatory special assessment fee.
Acting U.S. Attorney Simpson praised the work of the United States Department of Justice – Office of the Inspector General and the Federal Bureau of Investigation in investigating this matter. Acting U.S. Attorney Simpson also expressed appreciation for the support provided by the Orleans Parish Sheriff’s Office. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
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Former Manager of Illinois Mine Pleads Guilty to Conspiring to Defraud Mine Safety and Health Administration Regarding Underground FireRead the Press Release
Timothy Brandon Parsons, 38, of Louisa, Kentucky, entered a guilty plea yesterday to conspiring to defraud the U.S. Mine Safety and Health Administration (MSHA) in relation to an underground fire that occurred in the MC#1 Mine in Franklin County, Illinois, in August 2021.
According to court documents, on Aug. 12, 2021, Parsons was the Mine Manager at the MC#1 Mine when an underground fire was ignited by a cutting torch used to cut collapsed steel beams. When the fire could not be extinguished within 10 minutes, rather than implementing the approved Mine Emergency Evacuation and Firefighting Plan, Parsons and conspirators agreed that they would not evacuate miners or notify MSHA. Gas detectors carried by miners alarmed for the presence of more than 10 parts per million of carbon monoxide, yet the mine continued to mine coal during ad hoc firefighting efforts over the course of three shifts from Aug. 12 to 13.
On Aug. 13, Parsons tried to conceal the existence of the fire from those not already aware of it by evacuating the mine on the false pretense that a belt used to carry coal from underground to the surface was broken. Later that morning, MSHA received an anonymous tip about the fire and then later ordered that the mine be evacuated after inspectors confirmed the existence of the fire. Despite the evacuation order, over the next several days, conspirators re-entered the mine on two occasions without MSHA’s permission to assess the fire and manipulate the conditions underground so that MSHA would allow mining to resume. Members of the conspiracy did not wear tracking devices designed to track the underground location of miners and made false entries in mine records.
Sentencing is scheduled for Dec. 18. Parsons faces a maximum penalty of five years in prison, three years of supervised release, and a fine up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Steven D. Weinhoeft for the Southern District of Illinois, Assistant Director Jose A. Perez of the FBI Criminal Investigative Division, and Special Agent in Charge Christopher J. S. Johnson of the FBI’s Springfield Field Office made the announcement.
The Department of Labor Office of Inspector General and FBI investigated the case.
Senior Trial Attorney Matthew T. Morris of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Kevin F. Burke for the Southern District of Illinois are prosecuting the case.
Former CEO and CFO of Cryptocurrency Lender Cred LLC Sentenced to Multiple Years in Prison for Wire Fraud Conspiracy ConvictionsRead the Press Release
SAN FRANCISCO – Former Cred LLC executives Daniel Schatt and Joseph Podulka were sentenced today to 52 months and 36 months in federal prison, respectively, for wire fraud conspiracy. Senior U.S. District Judge William Alsup handed down the sentences.
Schatt, 55, of San Mateo, and Podulka, 53, of Palo Alto, were indicted by a federal grand jury in May 2024. Defendants each pleaded guilty on May 13, 2025, to one count of wire fraud conspiracy in connection with their roles in defrauding customers of Cred, a San Francisco-based firm that provided financial services to holders of cryptocurrency and other assets. Schatt, who co-founded Cred, served as the CEO and Podulka served as the company’s CFO. According to the plea agreements, Schatt and Podulka conspired to present an incomplete, unreasonably positive, and thus misleading portrayal of Cred’s business while failing to disclose negative material information about Cred’s business challenges and risks to Cred’s customers.
“The defendants’ criminal conspiracy caused significant harm to Cred’s customers,” said United States Attorney Craig H. Missakian. “This prosecution should serve as a reminder that my Office will aggressively prosecute fraud schemes undermining the integrity of cryptocurrency markets. Fraud targeting cryptocurrency investors and customers will not be tolerated and wrongdoers will be held accountable for their actions.”
“Daniel Schatt and Joseph Podulka orchestrated a scheme in which they deceived both investors and customers out of their hard-earned funds in an attempt to extend a failing business. The FBI is committed to investigating investment fraud schemes targeting cryptocurrency holders and working with our partners to bring fraudsters to justice,” said Acting FBI Special Agent in Charge Matt Cobo.
“Cryptocurrency may still seem foreign to some people, but investment fraud schemes are nothing new,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “IRS-CI special agents are the best financial investigators in the world and will not stand by and allow companies to defraud their customers through malicious actions. Our partnership with the U.S. Attorney’s Office and FBI has never been stronger as we will continue to relentlessly pursue these types of crimes based on greed and egoism.”
By late 2018, Cred’s business included two principal customer offerings: offering loans in U.S. dollars to customers using customers’ cryptocurrency as collateral and accepting deposits of cryptocurrency in exchange for a promise for a yield (interest payments) for that cryptocurrency. Cred’s business depended on a relationship with a Chinese company founded by one of Cred’s co-founders to generate the interest yield for Cred’s customers, a fact that many Cred customers did not know. Under this arrangement, Cred would loan the Chinese company a percentage of Cred’s customers’ funds, and the Chinse company would make short-term, high-interest microloans to Chinese gamers to generate interest to pay back to Cred. Cred’s business also depended on a hedging strategy using a third-party company to protect Cred from overexposure to cryptocurrency market fluctuations given Cred’s promises to its customers about specific yields they would earn while keeping their assets safe.
According to the plea agreements, Defendants’ conspiracy began in March 2020 following the onset of the COVID pandemic and a sudden and dramatic decrease in the price of Bitcoin. Within days of the crash, Cred learned from its hedging partner that Cred was underwater and needed to liquidate all its trading positions. The hedging partner then ended its relationship with Cred, leaving Cred with no hedges and no hedging strategy going forward. As the conspiracy progressed, Defendants also learned that the Chinese company would not be able to pay back tens of millions of dollars to Cred.
Rather than convey Cred’s worsening financial situation to its customers, the defendants each made misleading representations to customers or investors about Cred’s financial situation, including a public Ask Management Anything session that Schatt conducted on March 18, 2020, during which he stated that Cred’s business was “operating normally.”
On Nov. 7, 2020, Cred filed for bankruptcy. Cred customers and investors filed more than 6,000 claims totaling more than $140 million in the Cred bankruptcy proceedings. According to the government’s sentencing memorandum, those claims are worth over $1 billion using August 2025 valuations for the different cryptocurrencies that customers lost.
In addition to the prison term, Judge Alsup also sentenced Schatt and Podulka each to a three-year period of supervised release and ordered payment of a $25,000 fine. The defendants will begin serving their sentences on Oct. 28, 2025. Judge Alsup set a restitution hearing for Oct. 7, 2025.
Assistant U.S. Attorneys Barbara Valliere, Patrick O’Brien, Richard Ewenstein, and Adam Reeves prosecuted the case with the assistance of Helen Yee and Maryam Beros. The prosecution is the result of an investigation by the FBI and IRS-CI.
Florida Man Indicted for Conspiring to Distribute Fentanyl into Federal Prisons via DroneRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against James Key III, 45, of Eustis, Florida, charging him with conspiracy to distribute fentanyl, U.S. Attorney Eric Grant announced.
According to court documents, between Dec. 16, 2024, and Aug. 17, 2025, Key conspired with Federal Bureau of Prisons inmates to introduce fentanyl and contraband cellphones into BOP facilities in Atwater, California, Florida, and South Carolina. Key and his conspirators applied fentanyl onto paper, bundled that paper, wrapped it in synthetic grass, and then delivered it by drone into the prisons.
This case is the product of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons Special Investigative Services. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
If convicted, Key faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Final week of August brings another massive number – 356 – of new border security-related cases in SDTX, including nearly 70 as a result of ‘Operation Pick-Off’Read the Press Release
HOUSTON – Between Aug. 22-28, a total of 356 individuals have been charged in immigration and related matters as part of ongoing enforcement efforts along the South Texas border, announced U.S. Attorney Nicholas J. Ganjei.
A total of 180 people face charges of illegally reentering the country after removal, most with prior felony convictions for narcotics, violent crime, sexual offenses, prior immigration crimes and more. Another 153 people face charges of illegally entering the country, 13 other defendants are charged with human smuggling and the remaining 10 individuals have varying charges to include firearms offenses, assaulting federal officers and other related immigration crimes.
Some of those facing new criminal charges are a result of “Operation Pick-Off,” a new initiative that targets those illegally residing in the United States while serving terms of probation following convictions for state crimes, such as drug offenses, human smuggling, fraud, burglary and assault. The enforcement effort, announced Aug. 25, led to federal charges against 67 illegal aliens in the Rio Grande Valley area, 65 of whom had returned to the country after being previously removed, only to commit other crimes, according to the allegations.
“For those that want to come to this country without permission and then victimize American citizens once here, we are more than happy to accommodate them with a stay at a federal facility, followed by a one-way ticket home,” said Ganjei. “SDTX will not rest until we’ve brought Operation Pick-Off to each and every one of the Southern District’s 43 counties. If you’re here illegally and you commit crimes in our community, you can expect a visit from us, and that visit is going to come sooner rather than later. This is what Operation Take Back America looks like.”
Also, part of the new cases filed this week include charges against two Mexican nationals who had been removed in May but allegedly returned illegally shortly thereafter. The criminal complaints allege authorities found Jairo Neftali Velasco-Gomez and Luis Alberto Mejia-Bertrand near Fronton and Hidalgo, respectively. Velasco-Gomez has a prior conviction for being an alien in possession of a firearm, while Mejia-Bertrand had been sentenced for transporting/harboring illegal aliens prior to his removal, according to their charges.
This week law enforcement also found three other Mexican nationals who had previously been removed near Edinburg, according to the criminal complaints. Charges allege Edgar Omar Gallegos-Aboytes and Monico Espinoza-Martinez have both been sentenced previously for illegal reentry crimes, while Julio Cesar Martinez-Arjona has a prior conviction for assault of a family member.
Authorities also found Honduran national Jose Alberto Medina-Atunez near Escobares this week, he has been alleged to have been previously removed from the United States after being convicted of possessing cocaine. Others charged with illegally reentering the United States after being removed include three more Mexican nationals whose alleged prior convictions include transporting/harboring illegal aliens, firearms and drug offenses. These complaints allege Angel Alejandro Salazar-Cantu, Alberto Karr-Magana and Ramon Pena-Medina had each been previously removed but returned again unlawfully - all of them now face up to 20 years in federal prison if convicted of illegal reentry into the United States.
These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement (ICE) - Homeland Security Investigations, ICE - Enforcement and Removal Operations, Border Patrol, Drug Enforcement Administration, FBI, U.S. Marshals Service and 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 immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
Under current leadership, public safety and a secure border are the top priorities for this 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 nine 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.
Felon Indicted for Illegal Possession of a Firearm Following Arrest in SoutheastRead the Press Release
WASHINGTON – Mustafa Wright, 32, of the District of Columbia, has been charged in an indictment, unsealed today in U.S. District Court, on a federal firearms charge as part of the “Make D.C. Safe and Beautiful” initiative, announced U.S. Attorney Jeanine Ferris Pirro.
Wright is charged federally with one count of unlawful possession of a firearm and ammunition by a felon.
Joining in the announcement were Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Jessica M.E. Taylor of the U.S. Park Police.
This prosecution comes as part of the "Make D.C. Safe and Beautiful" initiative, which is surging resources to reduce violent crime in the District of Columbia. This initiative was created to address gun violence in the District, prioritize federal firearms violations, pursue tougher penalties for offenders, and seek detention for federal firearms violators.
According to court documents, on August 17, 2025, members of the United States Park Police were on patrol near Poplar Point and Anacostia Drive SE, when they noticed Mustafa Wright driving a vehicle with expired tags. Officers impounded the vehicle after Wright was unable to provide valid registration or insurance. Upon a routine search of the vehicle, officers discovered a Glock 17 9 mm pistol, loaded with one round of 9mm ammunition in the chamber and 22 additional rounds in the 31-round capacity magazine.
Wright is prohibited from possession of a firearm and ammunition due to multiple prior felony convictions, including a 2014 burglary conviction and a 2019 conviction for being a felon in possession of a firearm.
The case is being investigated by the ATF Washington Field Office and the United States Park Police. Special Assistant U.S. Attorney David B. Liss 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.
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Estonian National Extradited to the United States to Face Charges for Helping Russian Military Acquire U.S ElectronicsRead the Press Release
BROOKLYN, NY – Andrey Shevlyakov was arraigned this afternoon before United States Magistrate Judge Peggy Kuo at the federal courthouse in Brooklyn. He is charged in an indictment with conspiracy and seventeen other counts related to an international procurement scheme to source U.S.-made electronics and technology for the Russian government and military. Shevlyakov, an Estonian national, was arrested in Estonia on a provisional arrest warrant issued from the Eastern District of New York. He was extradited from Estonia to the United States on August 28, 2025.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg, Assistant Attorney General for the National Security Division; Douglas A. Williams, Jr., Special Agent in Charge, FBI Houston; and Trey McClish, Special Agent in Charge of the U.S. Department of Commerce, Bureau of Industry and Security – Office of Export Enforcement’s Dallas Field Office announced the extradition.
“As alleged, the defendant supplied the Russian military with sophisticated electronics after misleading U.S. companies,” stated United States Attorney Nocella. “Our Office and our law enforcement partners will continue to use every tool at our disposal to disrupt Russia’s illegal procurement of U.S. technology that threatens our national security and the security of our allies.”
Mr. Nocella expressed his appreciation to the Department of Justice’s Office of International Affairs and the Estonian Internal Security Service (KAPO) for their valuable assistance in securing the arrest and extradition of Shevlyakov.
“We welcome Mr. Shevlyakov to the United States to face justice,” stated Special Agent in Charge Williams. “His illegal acquisition of U.S. semiconductor technology on behalf of the Russian military endangered U.S. national security, which the FBI fights so hard to protect. This case highlights Russia’s willingness to break U.S. laws to modernize its military and weapon systems with U.S. technology. We’re grateful to all our international partners who made Shevlyakov’s capture and extradition possible."
As alleged in the indictment and other public court filings, the defendant engaged in a years-long effort to evade U.S. export controls. His scheme involved procuring and delivering sensitive U.S. technology to end-users in Russia, including defense contractors and Russian government agencies. The defendant was added to the U.S Department of Commerce, Bureau of Industry and Security’s entity list, meaning that he was prohibited from acquiring any items from the United States without permission from the Department of Commerce. To evade these prohibitions, the defendant used a series of shell companies to order electronics and other items from U.S.-based suppliers. He also misled U.S. suppliers about the ultimate destination for the sensitive electronics they provided to him.
Over the course of his scheme, the defendant procured hundreds of thousands of dollars’ worth of sensitive electronics. The items acquired by the defendant included low-noise pre-scalers and synthesizers used to conduct high-frequency communications. He also obtained analog-to-digital converters which are used in defense systems including avionics, missiles, and electronic warfare systems. The defendant communicated with Russian defense contractors and telecommunication companies about these sensitive items. He also traveled extensively between Russia and Estonia to deliver the items he had obtained.
On one occasion, the defendant was caught smuggling goods into Russia by customs authorities in Finland. When stopped at the Russian border, the defendant’s car was searched and authorities found electronics and semiconductors dispersed among groceries and luggage and hidden in several other places, including the car’s spare tire compartment.
The charges in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a maximum of 20 years’ imprisonment.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Gilbert M. Rein are in charge of the prosecution, along with Trial Attorney Christopher Cook of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ANDREY SHEVLYAKOV
Age: 48
Tallinn, EstoniaE.D.N.Y. Docket No. 22-CR-490 (RPK)
Ecuadorian National Admits to Illegally Re-entering the United StatesRead the Press Release
PROVIDENCE – An Ecuadorian national deported from the United States in 2008 has pleaded guilty in federal court in Rhode Island to a charge of illegal re-entry, announced Acting United States Attorney Sara Miron Bloom.
Manuel Yochuzga-Yopangue, a/k/a Manuel Yupangui, 34, most recently came to the attention of U.S. Immigration and Customs Enforcement (ICE) through an automated biometric fingerprint match of fingerprints entered into the National Crime Information Center following his arrest in Rhode Island in May 2025 on state child molestation charges.
Immigration files reflect that Yochuzga-Yopangue was removed from the United States in August 2008. He is scheduled to be sentenced on October 28, 2025. The sentence imposed in this matter will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Paul F. Daly, Jr.
The matter was investigated by U.S. Immigration and Customs Enforcement.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty
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Downey Man Suspected of Membership in the 764 Nihilist Violent Extremist Group Arrested on Child Pornography Possession ChargeRead the Press Release
LOS ANGELES – A Downey man suspected to be a member of the nihilistic extremist group known as “764” has been arrested on a federal criminal complaint charging him with possession of child pornography and he is expected to make his initial appearance today.
Dong Hwan Kim, 27, was arrested Wednesday at his residence by members of the FBI’s Joint Terrorism Task Force (JTTF) following the execution of a federal search warrant and was charged in a federal criminal complaint filed in U.S. District Court in Los Angeles yesterday.
According to the complaint, several minor females reported that Kim enticed them and other minor females to produce and send him pictures and videos of themselves engaging in sexual acts between 2022 and the present. The minor females stated that Kim would then extort his victims, by posting or threatening to post pictures and videos to their family members and others if they did not comply with his demands to send him more pictures and videos.
The complaint alleges that Kim engaged in this conduct as part of his participation in an online network known as “764”, a network of nihilistic violent extremists who engage in criminal conduct, including the targeting children for sexual exploitation online, to further the network’s goals of accelerating social unrest and the downfall of the current world order, including the United States Government.
The complaint details the nature of the 764, which is known to the FBI as a Nihilistic Violent Extremism (NVE) group whose members engage in criminal conduct within the United States and abroad, in furtherance of political, social, or religious goals that derive primarily from a hatred of society at large and a desire to bring about its collapse by sowing indiscriminate chaos, destruction, and social instability.
NVEs oftentimes target vulnerable individuals, including minors, frequently using social media platforms to share CSAM are gore material, or grooming victims toward committing acts of violence. Victims can be blackmailed into complying with NVE demands, which vary, but may include self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder.
The complaint alleges a series of incidents in which Kim enticed minor females into producing CSAM and threatened to send naked photographs to the victims’ family and others or post them online, among other threats.
According to a minor victim, Kim ran an online server where he and others openly created, posted, and traded child pornography, and extorted minors to get nude and write names on their skin, cut themselves, and stick objects such as knives and bottles into their genitals.
During the search, agents found several CSAM videos and photographs in Kim’s possession. Agents also found evidence that Kim shared with others CSAM videos he produced and, when one associate complimented him, Kim touted his behavior by referring to himself as an “og,” according to the complaint.
Kim has used online monikers including “Ryzen” and “Lobster” and the FBI believes victims not yet identified may exist. Anyone who has been victimized or is aware of a victim of Kim is urged to contact the FBI at 1 800 CALL-FBI (1 800 225-5324).
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted on the charges alleged in the complaint, Kim faces a statutory maximum sentence of 20 years in federal prison.
The FBI’s Joint Terrorism Task Force is investigating this case with assistance from the Los Angeles Police Department and the Downey Police Department.
Assistant United States Attorney David T. Ryan, Chief of the National Security Division, is prosecuting this case.
District of Arizona Charges 233 Individuals for Immigration-Related Criminal Conduct this WeekRead the Press Release
PHOENIX, Ariz. – During the week of enforcement operations from August 23, 2025, through August 29, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 233 individuals. Specifically, the United States filed 107 cases in which aliens illegally re-entered the United States, and the United States also charged 108 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 16 cases against 18 individuals responsible for smuggling illegal aliens into and within the District of Arizona.
These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Recent matters of interest include:
United States v. Raymundo Barretero-Fernandez: On August 27, 2025, Raymundo Barretero-Fernandez, a citizen of Mexico, was charged by criminal complaint with Illegal Re-entry. In 2019, Barretero-Fernandez was convicted in the United States District Court for the Western District of Oklahoma of Conspiracy to Possess Heroin with Intent to Distribute and Illegal Alien in Possession of a Firearm. He was sentenced to 36 months in prison and subsequently removed from the United States. Barretero-Fernandez then re-entered the United States without legal permission or authority. [Case Number: 25-MJ-0332]
United States v. Jose Luis Nunez-Sandoval: On August 29, 2025, Jose Luis Nunez-Sandoval, a Mexican citizen, was charged by criminal complaint with Transportation of an Illegal Alien and Illegal Re-entry. According to court documents, on August 27, 2025, Nunez-Sandoval was stopped by U.S. Border Patrol while traveling on Interstate 40 with two passengers. Agents determined that Nunez-Sandoval and the passengers were unlawfully present in the United States. [Case Number: 25-MJ-0185]
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
A criminal complaint is a formal accusation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
RELEASE NUMBER: 2025-142_August 29 Immigration Enforcement
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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 X @USAO_AZ for the latest news.Des Moines Man Sentenced to 262 Months in Federal Prison for Conspiracy to Distribute FentanylRead the Press Release
DES MOINES, Iowa – A Des Moines man and reported member of the Black P Stones criminal street gang was sentenced on August 27, 2025, to 262 months in federal prison for his participation in a conspiracy to distribute fentanyl.
According to public court documents, in the spring of 2024, law enforcement learned that Kevin Stanley Harris, Jr., 44, was a high-level fentanyl dealer operating in Des Moines. Following a seven-month investigation, law enforcement confirmed that Harris traveled to and from Chicago, Illinois, to obtain large quantities of fentanyl for redistribution in Des Moines and had multiple co-conspirators working with and for him to distribute fentanyl on a daily or near daily basis. Harris was arrested on December 18, 2024, the same day thirteen federal search warrants were executed, which resulted in the seizure of approximately 610 grams of heroin/fentanyl mixture, approximately 135 grams of methamphetamine, approximately 260 grams of marijuana, as well as 19 firearms and more than $13,000 in U.S. currency amongst the residences. Harris was sentenced under the United States Sentencing Guidelines as a career offender and has an extensive criminal history that includes possession of weapons and multiple drug-related convictions, including a prior federal conviction out of the Northern District of Iowa, as well as convictions involving cocaine and THC.
After completing his term of imprisonment, Harris will be required to serve an eight-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department, Federal Bureau of Investigation, and United States Postal Inspection Service.
Des Moines Police Department Chief Michael McTaggart said the following of the investigation and sentence: “The Des Moines Police Department is grateful for the strong partnership with our federal agencies, whose collaboration has been essential in our ongoing efforts to protect our community from the devastating effects of the illegal distribution of fentanyl. Justice for families impacted, and the prevention of tragedies yet to happen, comes from the joint efforts of the men and women who work together to intervene in the trafficking of this deadly drug.”
“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a direct threat to the safety and stability of various communities,” said Bryan Musgrove, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentencing is a result of a coordinated effort of our local, state, and federal law enforcement partners to keep heroin and other drugs out of our communities.”
“Fentanyl is an exceptionally destructive drug that wreaks havoc on our communities. We will continue partnering aggressively with our law enforcement partners to disrupt and dismantle drug trafficking organizations operating in Iowa. The sentencing of Kevin Stanley Harris, Jr., is one important step in our continuing fight to keep fentanyl out of our neighborhoods” said FBI Omaha Special Agent in Charge Eugene Kowel.
Harris’s co-defendants are scheduled to be sentenced as follows: Adonis Devora, 44, of Des Moines, on September 22, 2025; Devonte Hassell, 29, of Houston, Texas, on September 30, 2025; Ricky Ellis, 30, of Des Moines, on October 1, 2025; Ryan Redmond, 31, of Chicago, Illinois, on October 20, 2025; and Terrell Harris, 41, of Chicago, Illinois, on December 2, 2025.
Fentanyl is the leading cause of drug overdose deaths in the United States. Fentanyl deaths for youth ages 15 to 24 more than doubled between 2018 and 2022. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. Visit the Drug Enforcement Administration’s website to learn more about One Pill Can Kill.
Departments of Justice and Homeland Security Partnering on Cross-Agency Trade Fraud Task ForceRead the Press Release
Today, the Department of Justice launched a cross-agency Trade Fraud Task Force to bring robust enforcement against importers and other parties who seek to defraud the United States. The Task Force will augment the existing coordination mechanisms within the Department of Justice and leverage expertise from both the Civil and Criminal Divisions, as well as the Department of Homeland Security, to aggressively pursue enforcement actions against any parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. This Administration is fully committed to holding parties accountable for their attempts to undermine honest American competitors.
On Inauguration Day, President Trump issued the “America First Trade Policy,” which “promotes investment and productivity, enhances our Nation’s industrial and technological advantages, defends our economic and national security, and — above all — benefits American workers, manufacturers, farmers, ranchers, entrepreneurs, and businesses.” A critical part of the policy is ensuring compliance with trade laws, including the payment of all applicable tariffs and duties, such as antidumping and countervailing duties and Section 301 tariffs intended to level the playing field for U.S. manufacturers. This Task Force will advance the America First Trade Policy by pursuing those who violate customs laws through duty and penalty collection actions under the Tariff Act of 1930, actions under the False Claims Act, and, wherever appropriate, parallel criminal prosecutions, penalties, and seizures under Title 18’s trade fraud and conspiracy provisions.
“The President’s America First Trade Policy supports American manufacturing by ending unfair trade practices,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Civil Division will coordinate with law enforcement partners to bring to justice any parties attempting to harm American workers through evasion of tariffs and other duties.”
Trade fraud not only deprives the government of vital revenue used to reinvest in America, but also threatens critical domestic industries, undermines consumer confidence, and weakens national security. Fraudsters seeking to destabilize and profit off of American markets increasingly are attempting to import below-market, industry-destabilizing goods without paying lawful tariffs and duties or by smuggling prohibited items that violate intellectual property rights of American companies or are otherwise illegal. These fraudsters have harmed American manufacturers and contributed to the loss of American jobs, often with financial backing from America’s adversaries who benefit from the fraud.
“For years, nefarious importers and their co-conspirators have put law-abiding businesses in the United States at a competitive disadvantage — and cheated the American public of funds — by brazenly committing trade fraud,” said Acting Assistant Attorney General Matthew R. Galeotti of the Department of Justice’s Criminal Division. “Trade fraud is not a victimless crime, and it won’t be tolerated. The Criminal Division, led by the Fraud Section, is committed to using every available tool to hold bad actors accountable and prevent the theft of money intended to reduce the deficit and fund government programs.”
“The Civil Fraud and National Courts Sections of the Commercial Litigation Branch are integral to enforcement efforts aimed at identifying and stopping trade fraud,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department’s Civil Division. “Since March of this year, the Commercial Litigation Branch has reached civil settlements to resolve allegations of improperly evaded customs duties across a wide range of products, including multi-layered wood flooring, plastic resin, extruded aluminum products, and quartz surface products. We look forward to enhanced coordination and information sharing with our law enforcement colleagues, and we welcome the vital contributions of whistleblowers who can help identify fraud schemes involving an array of imported products.”
Consistent with Executive Order 14243 aimed at “enhancing the Government’s ability to detect overpayments and fraud[,]” the Trade Fraud Task Force will work closely with its law enforcement partners at the Department of Homeland Security, specifically U.S. Customs and Border Protection and Homeland Security Investigations, to identify and combat trade fraud that threatens our economic and national security interests. These enhanced cooperative efforts will serve the dual purposes of a more efficient government for the taxpayer and improved enforcement and deterrent outcomes.
“With unique customs authorities, expertise, generations of experience carried forward from the legacy U.S. Customs Service, and a steadfast commitment to interagency collaboration, ICE HSI’s Global Trade Division is fully committed to partnering with the Department of Justice and U.S. Customs and Border Protection to strengthen the investigations of trade-related crimes,” said Assistant Director for Global Trade Ivan Arvelo of U.S. Immigration and Customs Enforcement, Homeland Security Investigations. “Enforcing U.S. international trade laws is one of our agency’s top priorities, and this revitalized and expanded Trade Fraud Task Force is a significant step in the right direction. These enhanced efforts will undoubtedly add immense value to the task force and yield positive results in support domestic industry and businesses engaging in legal international commerce.”
Because American manufacturers and American workers are at the heart of this Administration’s trade policy, the Task Force welcomes referrals and cooperation from the domestic industries that are most harmed by unfair trade practices and trade fraud. Domestic industries are often best placed to spot fraud that threatens our markets and the livelihoods of American workers and their families. Referrals can be submitted to the Criminal Division’s Corporate Whistleblower Program at [email protected] using the form available here. Similarly, the Task Force encourages whistleblowers to utilize the qui tam provisions of the False Claims Act to alert the government to credible allegations of fraud. Finally, the Task Force encourages all importers and their agents to conduct thorough audits of their importing practices and voluntarily self-disclose and remediate unlawful behavior consistent with the Justice Manual §§ 4-4.112 and 9-74.120.
Covington Man Sentenced for Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – JAYLON CARTER (“CARTER”), age 24, a resident of Covington, Louisiana, was sentenced by United States District Judge Susie Morgan to sixty-three (63) months’ imprisonment, three (3) years of supervised release, and $300.00 in mandatory special assessment fees, after previously pleading guilty to three counts of distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced Acting U.S. Attorney Michael M. Simpson.
According to court documents, in January 2024, the St. Tammany Parish Sheriff’s Office received information that CARTER sold “M30 blue pills” out of an apartment complex in Covington or from his vehicle. After St. Tammany detectives confirmed that CARTER lived in the apartment complex, the detectives used an individual CARTER believed to be a legitimate buyer, to make three controlled purchases of fentanyl pills from CARTER at the apartment complex.
This case was investigated by the Department of Homeland Security Investigations and the St. Tammany Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Convicted opioid pill mill doctor must forfeit property and pay restitutionRead the Press Release
ALEXANDRIA, Va. – An Oakton doctor who was sentenced to 13 years in prison for his prescribing of opioids and amphetamines has been ordered to forfeit a $168,000 money judgement and two real properties and to pay restitution of $169,244 to compensate three victims for their losses.
According to court documents, David Allingham, 65, owned Oakton Primary Care Center (OPCC), where he advertised his practice as an “Addiction Medicine Family Doctor” with “special training and skill in preventing, diagnosing, and treating patients with addiction.” Between April 2019 and January 2024, Allingham wrote prescriptions for opioids and amphetamines for numerous patients without properly assessing the individual needs of those patients, which was outside the usual course of professional practice and regulations and without legitimate medical purpose.
Allingham authorized renewals of opioid medication without physically examining patients. Allingham instructed his employees to use “mom and pop” pharmacies to avoid scrutiny of his patients so he could continue to prescribe high-dose opioids for them. Allingham also prescribed amphetamines to multiple chronic pain patients to assist them in weight loss in contravention of regulations, regardless of whether the patients were obese.
Multiple of Allingham’s patients died of drug overdoses within hours, days, or weeks of receiving an oxycodone prescription from Allingham.
In 2024 the Drug Enforcement Administration (DEA) served an Immediate Order to Show Cause (ISO) that resulted in Allingham surrendering his DEA registration number, relinquishing his authority to handle controlled substances.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Christopher C. Goumenis, Special Agent in Charge for the DEA Washington Division; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services; and Col. Matthew D. Hanley, Superintendent of Virginia State Police, made the announcement after judgment by U.S. District Judge Rossie D. Alston Jr.
The Fairfax County Police Department provided valuable assistance in the investigation.
Assistant U.S. Attorneys Heather D. Call and Annie Zanobini prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-2.
Collin County man sentenced for oil and gas fraud scheme in Eastern District of TexasRead the Press Release
PLANO, Texas – A Murphy man has been sentenced to federal prison for defrauding investors of over $4 million in the Eastern District of Texas, announced Acting U.S. Attorney Jay R. Combs.
Sameer Praveen Sethi, 42, was convicted of seven counts of wire fraud and one count of money laundering by a jury following a lengthy trial before U.S. District Judge Sean D. Jordan on December 10, 2024. On August 28, 2025, Judge Jordan sentenced Sethi to 151 months in federal prison.
According to information presented in court, over several years, Sethi engaged in a fraud scheme targeting investors of oil and gas joint ventures. Evidence presented at trial showed that Sethi would create a joint venture, prepare investment documents along with his staff, have his sales staff market the investments, and then spend the money raised from investors almost entirely on personal and business expenses. Evidence showed the investment documents contained significant misrepresentations and false statements. Although over $4 million was raised over the course of the joint ventures, investors received almost no returns.
“The sentence handed down by Judge Jordan follows years of investigation by Internal Revenue Service-Criminal Investigation and a lengthy trial, and shows the serious nature of Sameer Sethi’s crimes,” said Acting U.S. Attorney Jay R. Combs. “The U.S. Attorney’s Office will continue to work closely with the IRS-Criminal Investigation office and the FBI to investigate and prosecute the kinds of investor fraud that occurred in this case and to seek justice for the public and for the innocent victims of these crimes.”
This case was investigated by the Internal Revenue Service-Criminal Investigation, Texas State Securities Board, and the FBI.
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Clinton County Man Indicted for Sexual Exploitation of a Child and Distributing Child PornographyRead the Press Release
PLATTSBURGH, NEW YORK – Bradley Vincent, age 38, of Chazy, New York, was indicted today for sexual exploitation of a child and distribution of child pornography. Acting United States Attorney John A. Sarcone III; Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI); and New York State Police (NYSP) Superintendent Steven G. James made the announcement.
The indictment alleges that on February 18, 2024, the defendant used a minor female child, then 15 years old, to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct. The indictment also alleges that the defendant distributed those images of child pornography. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Acting United States Attorney John A. Sarcone III stated: “As alleged, Vicent recorded sexually explicit conduct with a 15-year-old girl and then distributed those videos and images. This defendant already had a state conviction for aggravated sexual abuse or sexual abuse and was at that time only sentenced to probation by the state. This is a perfect example of the broken state system failing to protect our children and our citizens in general. This type of conduct is despicable and will be prosecuted vigorously by my office. I want to thank our state and local partners for their aggressive pursuit of this defendant.”
The charges filed against Vincent carry a maximum term of 50 years in prison, a mandatory minimum term of 25 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.
HSI and NYSP are investigating the case. Assistant U.S. Attorney Carling Dunham is prosecuting the case.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Citizen of Mexico Sentenced on Illegal Reentry ChargeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced Leonardo Mendoza-Zavala, age 44, a citizen of Mexico, was sentenced to seven months’ imprisonment yesterday by United States District Judge Jennifer P. Wilson on a charge of illegal reentry.
According to Acting United States Attorney John C. Gurganus, following convictions in Texas for attempt to take a weapon from an officer, resisting arrest, and terroristic threats, Mendoza-Zavala was removed from the United States on January 6, 2020, through Laredo, Texas. Thereafter, he reentered the United States without obtaining legal permission to do so. On June 21, 2025, U.S. Immigration and Customs Enforcement officers arrested Mendoza-Zavala in Lebanon County, Pennsylvania, in the parking lot of a motel.
The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations and the Pennsylvania State Police. Assistant U.S. Attorney Scott R. Ford prosecuted the case.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline) a nationwide initiate 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).
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Circuit Court Upholds Outer Continental Shelf Oil and Gas Leasing ProgramRead the Press Release
The U.S. Court of Appeals for the District of Columbia Circuit published an opinion today upholding the Department of the Interior’s 2024-2029 National Outer Continental Shelf Oil and Gas Leasing Program. The program sets the number and location of offshore oil and gas lease sales that Interior will hold during the ensuing 5-year period.
In one of his first actions, President Donald J. Trump signed the Unleashing American Energy executive order. That order sets a policy “to encourage exploration and production on Federal lands and waters, including on the Outer Continental Shelf…”
“The court today upheld Interior’s critically important oil and gas leasing program on the Outer Continental Shelf,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The program plays a key part in the development of our nation’s abundant energy resources in the service of economic and national security.”
A coalition of environmental groups challenged the program, arguing that Interior failed to account for the effects of offshore oil and gas development on vulnerable communities, violated its own procedures by not modeling the effects of leasing on the endangered Rice’s whale, and inadequately assessed the potential for conflicts between oil and gas drilling and other uses of the sea and seabed. The court rejected those challenges and held that Interior’s rationale for the program was adequately supported by data and analysis and that it reasonably deferred consideration of specific potential conflicts to later stages in the offshore leasing process.
On April 18, while the case was pending, Interior announced that it would begin preparing a revised Outer Continental Shelf Program.
Attorneys with ENRD’s Appellate Section handled the case in the Court of Appeals.
Carjacker Gets 14 Years in Prison for Two Carjackings Committed Days ApartRead the Press Release
WASHINGTON – Erick Alvarenga, 19, of Washington D.C., was sentenced today to 14 years in prison for his participation in two separate carjackings committed in December 2024 and January 2025, announced U.S. Attorney Jeanine Ferris Pirro.
Alvarenga pleaded guilty on June 23, 2025, in D.C. Superior Court, to one count of carjacking (unarmed) and one count of possession of a firearm during crime of violence for the December 28, 2024, offense, and to one count of carjacking (unarmed) and one count of possession of a firearm during a crime of violence for the January 3, 2025, offense. His co-defendant, Malik Kearney, 20, who also pleaded guilty on June 23rd, is scheduled to be sentenced on October 10, 2025.
The Honorable Judge Andrea Hertzfeld ordered Alvarenga to serve 60 months in prison on each count of possession of a firearm during a crime of violence and 84 months in prison for each count of unarmed carjacking. Both charges in the December 28th offense will run concurrent to one another but consecutive to the charges for the January 3rd offense.
According to the government’s evidence, at around 4:45 a.m., on December 28, 2024, Alvarenga and Kearney approached the first victim while he was parked in a Jeep SUV in the 6100 block of Eastern Avenue, Northeast, one of whom was armed with a black handgun. The defendants ordered the victim out of the car and to hand them his car keys. The defendants then drove away from the scene.
Days later January 3, 2025, the second offense, occurred around 3:00 p.m., in the 4200 block of Nannie Helen Burroughs Avenue, Northeast. The second victim was at a gas station and had finished putting gas in his Dodge sedan. Alvarenga used the Jeep which had been stolen on December 28, 2024, to block in the victim’s car, while Kearney approached the victim with a handgun. After ordering the victim out of his car, Kearney got behind the wheel of the Dodge, and both vehicles then fled in the same direction.
Alvarenga and Kearney were arrested later that evening and have been in custody since. At the time of their arrest, officers recovered two firearms from the location where the defendants were detained -- one had the serial number removed and the other was a PMF ghost gun.
Joining in the announcement was Chief Pamela Smith of the Metropolitan Police Department.
In announcing the sentence, U.S. Attorney Pirro and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the from the U.S. Attorney’s Office, including Special Agent Nelson Rhone, Jr..
Finally, they commended the work of Assistant United States Attorneys Randle Wilson and Amanda Hoover, who prosecuted the case.
California Man Guilty of Conspiracy to Commit Interstate Transportation of Stolen Property and Interstate Transportation of Stolen Property from Metairie BusinessRead the Press Release
NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that DEANTHONY BLOCKER (“ BLOCKER”), a California resident, pled guilty on August 27, 2025, to a two-count indictment for conspiracy to commit interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 371, and interstate transportation of stolen goods, in violation of Title 18, United States Code, Section 2314.
According to the indictment, BLOCKER, and others, conspired to transport cigarettes that had been stolen during a burglary at a Louisiana warehouse facility on November 21, 2024. This group then traveled out of state before being apprehended in Fort Stockton, Texas the following day while still in possession of the cigarettes. The group was further implicated in similar burglaries in North Carolina and Texas in February of 2024.
As to Count 1, BLOCKER faces up to 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee. As to Count 2, BLOCKER faces up to 10 years of imprisonment, up to 3 years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
Acting U.S. Attorney Simpson praised the work of the Department of Alcohol, Tobacco, and Firearms, Jefferson Parish Sheriff’s Office, Knightdale Police Department, Atlanta Police Department, Rockmart Police Department, Texas Department of Public Safety, and the Fort Stockton Police Department in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.
Convicted Felon Charged in Federal Indictment for Possession of Narcotics and FirearmsRead the Press Release
PENSACOLA, FLORIDA – Jujuan George, 33, of Pensacola, was indicted by a federal grand jury charging him with distribution of fentanyl and cocaine, possession with intent to distribute fentanyl, cocaine, methamphetamine, and marijuana, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm and ammunition by a convicted felon. John P. Heekin, United States Attorney for the Northern District of Florida, announced the charges today.
George was arraigned in federal court before United States Magistrate Judge Hope Thai Cannon on August 28, 2025. Trial is scheduled for October 6, 2025 before United States District Judge M. Casey Rodgers in Pensacola, Florida.
If convicted, George faces up to life imprisonment.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Santa Rosa County Sheriff’s Office, and the Florida Highway Patrol are investigating the case. Assistant United States Attorney Jessica S. Etherton is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Blood Test Lab Owner Pleads Guilty to Evading over $11.2 Million in Federal Taxes by Using Shill to Illegally Collect Medicare PaymentsRead the Press Release
LOS ANGELES – A Burbank man has pleaded guilty to evading the payment of more than $11.2 million in federal taxes by using a shill to illegally collect Medicare reimbursement payments made to his blood-testing company, and to fraudulently obtaining nearly $100,000 in taxpayer-funded COVID-19 business relief, the Justice Department announced today.
Armen Muradyan, 60, pleaded guilty Thursday to one count of conspiracy to commit health care fraud, one count of wire fraud, and one count of tax evasion.
According to his plea agreement, Muradyan owned and operated a Burbank-based blood testing laboratory called Genex Laboratories Inc. Medicare and bank records show that Medicare paid millions of dollars in reimbursements to Genex for blood testing. The reimbursements were wired to bank accounts in the name of an individual identified in court documents as “L.S.” – Muradyan’s long-time friend to whom Muradyan had offered to pay $2,000 per month to pretend to be Genex’s owner.
Muradyan told L.S. that he needed him to submit Medicare enrollment papers to Medicare on Genex’s behalf because Medicare had banned Muradyan from submitting claims.
L.S. and Muradyan opened bank accounts for Genex in L.S.’s name, but which Muradyan controlled. L.S. neither owned nor operated Genex and visited the company’s Burbank office to collect his $2,000 monthly payment and to sometimes sign documents at Muradyan’s direction. Muradyan used the proceeds from the health care fraud conspiracy to pay the mortgage on a property he owned.
For the tax years of 2015 through 2020, Muradyan instructed L.S. to report Genex’s financial activity on L.S.’s personal income tax returns using documents that L.S. provided to his own tax preparer. The documents purportedly showed that Genex had minimal net profit or was operating at a loss, meaning the company had little or no income tax liability.
For the same period, Muradyan submitted income tax returns that reported none of Genex’s financial activity as his own and that he averaged an income of $40,000 per year. In fact, Muradyan personally received and used millions of dollars in Medicare reimbursements to support his own expensive lifestyle.
Muradyan also did not file tax returns for the years 2021 through 2023.
In total, Muradyan’s unreported federal taxable income was approximately $23,915,762, resulting in a total federal income tax due and owing by him of approximately $11,236,357.
In July 2020, Muradyan wired a false and fraudulent application for an Economic Injury Disaster Loan (EIDL) that was funded by federal taxpayers. On the application, Muradyan falsely stated that GenMed employed multiple people and generated $800,000 in income for the year 2019. In fact, Muradyan knew GenMed employed no one and generated zero income for that year. The U.S. Small Business Administration (SBA) wired $99,900 to a bank account Muradyan controlled. He then used the money for personal expenses not permitted under the terms of the EIDL. Muradyan admitted he acted with the intent to deceive and cheat the SBA.
United States District Judge John A. Kronstadt scheduled a December 11 sentencing hearing, at which time Muradyan will face a statutory maximum sentence of 20 years in federal prison for the wire fraud count, up to 10 years in federal prison for the health care fraud conspiracy count, and up to five years in federal prison for the tax evasion count. Muradyan remains free on $2.6 million bond.
IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services Office of Inspector General investigated this matter.
Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the Department of Justice’s Tax Division are prosecuting this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Austin Man Arrested for Alleged Sexual Exploitation of a Minor Through Social MediaRead the Press Release
AUSTIN, Texas – An Austin man was arrested Wednesday on criminal charges related to his alleged sexual exploitation of a minor.
According to court documents, Jonathan Ruiz-Correa, 29, allegedly using the name “Lucas” and claiming to be 17 years old, began chatting on Snapchat with a 14-year-old girl in May. A criminal complaint alleges that Ruiz-Correa knew the minor’s age and that their conversations included discussion of sexually explicit videos Ruiz-Correa wanted the minor to send him—which she eventually did. Ruiz-Correa also allegedly explored the possibility that he would pay for her to travel from out of state to meet him, and on two occasions, he used a PayPal account to send the minor money. Alleged chats between Ruiz-Correa and the minor also occurred on Instagram.
The minor victim allegedly learned the real age of Ruiz-Correa when she initiated a conversation with one of Ruiz-Correa’s female Instagram followers, who said he had been trying to talk to her as well. The girl sent the minor victim a video she had found on Ruiz-Correa’s alleged dating app profile.
As part of the investigation, agents seized a mobile phone containing a sexually explicit video of the minor victim. The phone also contained a video allegedly depicting sexual activity with another minor, whom Ruiz-Correa allegedly traveled to meet in Houston in January.
Ruiz-Correa is charged with one count of sexual exploitation of children and one count of engaging in activities relating to material constituting or containing child pornography. If convicted, he faces 15 to 30 years in prison for the exploitation charge and five to 20 years in prison for the second count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Justin R. Simmons for the Western District of Texas made the announcement.
The FBI is investigating the case. Assistant U.S. Attorney Matt Devlin is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Arvina 13 Gang Member Indicted for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against Isaac Rodriguez, 26, of Arvin, charging him with being a felon in possession of a firearm, U.S. Attorney Eric Grant announced.
According to court documents, Rodriguez was found to be in possession of a firearm after he was arrested on warrants for violations of probation. Rodriguez cannot legally possess firearms because he has been previously convicted of several felony offenses, including taking a vehicle, evading arrest, and being felon in possession of a firearm.
This case is the product of an investigation by the Kern County Sheriff’s Office, the Kern County District Attorney’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Luke Baty is prosecuting the case.
If convicted, Rodriguez faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Armed Drug Trafficker Pleads Guilty to Possessing and Distributing Fentanyl in PensacolaRead the Press Release
PENSACOLA, FLORIDA – Corderrius Terrelle McShane, 38, of Pensacola, Florida, pleaded guilty in federal court to distribution of more than 40 grams of fentanyl, possession with intent to distribute more than 40 grams of fentanyl, possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “I applaud the excellent work of the Escambia County Sheriff’s Office and our federal ATF and DEA agents to make our community safer by getting this dangerous individual off the streets. My office remains fully committed to fulfilling the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America by targeting drug traffickers like this defendant with the full force of the law.”
Court documents showed McShane distributed 55.6 grams of fentanyl in November of 2024. Also, that same month, law enforcement conducted a traffic stop of a vehicle McShane was driving, during which officers located over 230 grams of fentanyl and a loaded firearm. McShane has prior felony convictions for Possession of a Weapon or Ammunition by a Convicted Felon, Resisting Law Enforcement with Violence, Possession of Cocaine, and Possession of a Firearm by a Convicted Felon.
McShane faces up to life imprisonment, and a lifetime of supervision upon release.
The case involved a joint investigation by the Escambia County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.
Sentencing is scheduled for December 4, 2025, at 10:00am at the United States Courthouse in Pensacola before United States District Judge T. Kent Wetherell, II.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
234 Immigration Cases Added in Western District of Texas This WeekRead the Press Release
SAN ANTONIO – United States Attorney Justin R. Simmons for the Western District of Texas announced today that federal prosecutors in the district filed 234 new immigration and immigration-related criminal cases from Aug. 22 through 28.
Among the new cases, Mexican national Joel Guerrero-Sanchez was arrested in Medina County on Wednesday and charged with alien smuggling. Texas Department of Public Safety (DPS) conducted a traffic stop on a tractor-trailer allegedly driven by Guerrero-Sanchez along I-35. The criminal complaint alleges that a search of the tractor and trailer revealed two illegal aliens hidden in a compartment inside the sleeper cab. If convicted, Guerrero-Sanchez faces up to 10 years in federal prison and a $250,000 fine.
A Mexican national was taken into Immigration and Customs Enforcement custody on Aug. 22 after being arrested in San Antonio for evading arrest with previous conviction. Juan Moreno Lopez faces an illegal re-entry charge after being previously removed from the U.S. four times in addition to four voluntary returns to Mexico. His extensive criminal record began with a burglary in 1988 and includes multiple convictions for evading arrest in San Antonio and Williamson County.
In Midland, Mexican national Orlando Everado Aguirre-Barra was federally charged with illegal re-entry. He was initially arrested by DPS on July 25 and had been previously removed from the United States in 2019 following a conviction for illegal re-entry. Aguirre-Barra was also convicted in Phoenix, Arizona in 2014 for criminal trespass and possession of a controlled substance, and in 2015 for burglary.
Samuel Josias Ruiz-Diaz, also a Mexican national, was arrested by U.S. Border Patrol agents in Del Rio. He’s charged with being an alien illegally present in the U.S., having been previously removed to Mexico in April. In 2022, Ruiz-Diaz was convicted for two separate DWI charges in Minnesota.
Also in Del Rio, a Fijian national in the U.S. on an immigration visa was arrested on an alien smuggling conspiracy charge. Viliame Fonolahi Ralulu was pulled over on Highway 277 south of Brackettville when U.S. Border Patrol agents allegedly observed a subject in the back seat look up then duck down in an attempt to conceal themselves. During an immigration inspection, two passengers were allegedly discovered in the back seat and determined to be illegally present in the U.S.
A Mexican national with a violent criminal record was arrested by U.S. Border Patrol and charged with illegal re-entry in El Paso. Frederico Bedolla-Bedolla has been removed from the U.S. four times and has been convicted in Arizona for two disorderly conduct charges for fighting and assault causing fear of physical injury, as well as domestic violence.
Justin Ross Meunier, a U.S. citizen with multiple felony convictions, was arrested for allegedly transporting three illegal aliens near the Tornillo Port of Entry. A criminal complaint alleges that U.S. Border Patrol agents observed Meunier’s vehicle stop near an orchard before three individuals emerged from hiding and boarded the vehicle. The agents approached and Meunier allegedly yelled in Spanish for the suspected aliens to get out and run. Meunier has been convicted for alien smuggling twice before, leading to 18 months of probation in 2019 and 21 months in prison in 2021.
U.S. Border Patrol agents also arrested Francisco Vidales-Aldaba for alien smuggling near the Bridge of the Americas Port of Entry. An agent allegedly observed two individuals, appearing wet and muddy, exit a residence and flag down a vehicle, which they boarded. Vidales-Aldaba was identified as the driver, and all three individuals were found to be illegal aliens. A criminal complaint alleges that Vidales-Aldaba had been a foot guide to five illegal aliens on Aug. 23 and had smuggled in four to five illegal aliens at a time on 15 occasions between 2022 and 2024. Immigration records indicate he’s been granted 15 voluntary departures through El Paso, the last being on Dec. 11, 2023.
These cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (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.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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.
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28 August 2025
York County Man Sentenced to 151 Months Imprisonment on Drug Trafficking ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joseph Gallego, age 37, of York, Pennsylvania, was sentenced on August 28, 2025, to 151 months’ imprisonment by United States District Judge Keli M. Neary on drug trafficking charges.
According to Acting United States Attorney John C. Gurganus, on October 18, 2024, Gallego pleaded guilty to possession with intent to distribute cocaine. The York County Drug Task Force conducted surveillance on a home in York County and Gallego was observed entering the front door. Upon entering, the officers met two conspirators at the door and then conducted a safety sweep and found Gallego in the basement. Agents received consent to search the residence and recovered a loaded Glock model 40, 10 mm caliber semiautomatic pistol; a plastic bag containing 76.37 grams of cocaine base; a bag containing 1.13 grams of cocaine base; and a digital scale.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the York County Drug Task Force. Assistant U.S. Attorney Scott Ford prosecuted the case.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Wise County Man to Serve 15 Years on Narcotics and Illegal Firearms ChargesRead the Press Release
ABINGDON, Va. – A Wise County, Virginia man, who trafficked large quantities of methamphetamine, fentanyl, and heroin into Southwest Virginia, was sentenced today to 15 years in federal prison.
James Edward Williams, 43, pled guilty in February 2025 to possession of a firearm by a convicted felon and possession with the intent to distribute 50 grams or more of methamphetamine.
“Methamphetamine and fentanyl have had devastating consequences on Southwest Virginia. This defendant contributed to that devastation by trafficking large quantities of these drugs into the region,” Acting United States Attorney Robert N. Tracci said today. “Today’s sentence reflects the commitment of this office to aggressively prosecute those who poison our communities for profit.”
According to court documents, on two occasions in April 2024, Williams sold confidential informants approximately 41 grams of methamphetamine from his Wise County residence. In July 2024, Williams and another individual were involved in a single-car vehicle accident. Upon a search of the surrounding area, and the vehicle Williams was driving, police found a black back containing a loaded handgun, approximately 25 grams of methamphetamine, two baggies of green plant material, and two metal smoking devices.
Two weeks later, after leaving a known drug house in Wise County, Williams was pulled over and failed a standard sobriety test. A search of Williams’ person revealed a small plastic baggy containing methamphetamine. In his vehicle, officers found approximately 44 grams of methamphetamine and three lock boxes, each containing a pistol. Officers also found an illegal silencer and a plastic bag containing fentanyl and/or xylazine.
Robert N. Tracci, Acting United States Attorney for the Western District of Virginia made the announcement after sentencing by U.S. District Judge Thomas Cullen.
The case was investigated by the Southwest Drug Task Force, Wise County Sheriff’s Office, Norton Police Department, Virginia State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Assistant U.S. Attorney Lena Busscher is prosecuting the case for the United States.
Watertown Man Pleads Guilty to Drug OffenseRead the Press Release
SYRACUSE, NEW YORK – Seth Demiceli, age 24, of Watertown, New York, plead guilty on Wednesday to possessing with intent to distribute methamphetamine. Acting United States Attorney John A. Sarcone III and Bryan Miller, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
As part of his plea, Demiceli admitted that on January 16, 2025, he drove from the Albany, New York, area, to Watertown with approximately 4.5 kilograms of methamphetamine in his vehicle. The methamphetamine was separated into 10 bags, each containing approximately 1 pound of narcotics. Law enforcement apprehended Demiceli as he returned to Watertown. Demiceli had intended to sell the methamphetamine in the Watertown area.
Acting United States Attorney John A. Sarcone III stated: “This drug dealer was apprehended by law enforcement with a terrifying amount of methamphetamine in his car. This office and our law enforcement partners will continue to disrupt, arrest and prosecute those who traffic this poison in the Northern District of New York.”
Special Agent in Charge Bryan Miller stated: “Illegal drugs devastate lives and fuel violence. This case shows that those who profit from spreading poison will face serious consequences. Through ATF NY Syracuse Field Office’s strong partnership with the New York State Police, the Metro Drug Task Force, and the U.S. Attorney’s Office NDNY, we remain committed to working together to protect our communities.”
Sentencing is scheduled for December 17, 2025, before United States District Judge Elizabeth C. Coombe. At sentencing, Demiceli faces a prison term of at least 10 years and up to life, a fine of up to $10,000,000, and a supervised release term of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines, and other factors.
ATF is investigating the case with assistance from the New York State Police Community Stabilization Unit and the Metro Jefferson Drug Task Force. Assistant U.S. Attorney Ben Gillis is prosecuting the case.
Waianae Resident Sentenced to 10 Years in Federal Prison for Firearm and Drug Trafficking OffensesRead the Press Release
HONOLULU – Acting United States Attorney Ken Sorenson announced that Jonaven Perkins-Sinapati, 39, of Waianae, Hawaii, was sentenced today in federal court by U.S. District Judge Shanlyn A.S. Park to 120 months’ imprisonment followed by 5 years of supervised release for possessing with intent to distribute methamphetamine and illegally possessing ammunition as a convicted felon. Perkins-Sinapati pled guilty pursuant to a plea agreement in May 2025.
As part of this guilty plea, Perkins-Sinapati admitted that on May 23, 2024, while driving in Waianae, Hawaii and being followed by law enforcement in connection with an outstanding warrant, Perkins-Sinapati instructed a passenger in his vehicle to throw a bag out of the window and then continued driving. Perkins-Sinapati was arrested shortly thereafter when stopped at an intersection, and law enforcement recovered the bag and searched both the bag and the vehicle, finding approximately 147 grams of methamphetamine, a loaded 9mm pistol with no serial number (commonly referred to as a “ghost gun”), 67 rounds of ammunition, and $1,721 in U.S. currency.
According to information provided to the Court at sentencing, the offenses were committed while Perkins-Sinapati was released on bail for a pending state firearms offense relating to an alleged discharge of a firearm with a high-capacity magazine in a residential neighborhood in Kaneohe, Hawaii in May 2024. There was additional evidence presented to the Court that Perkins-Sinapati allegedly discharged a firearm from his vehicle’s sunroof on multiple occasions in public places in the days leading up to his arrest in this matter.
At sentencing Judge Park emphasized the danger of ghost guns, which are untraceable. She called Perkins-Sinapati’s pattern of discharging firearms “grandiose and reckless” and his disposal of a ghost gun on the side of a public road “extremely dangerous.” Judge Park also admonished Perkins-Sinapati for being “a contributing factor” to the gun violence in Waianae, which she described as “wreaking havoc” on that community.
The investigation was conducted by the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorneys Barbara Eucker and Sara D. Ayabe for the District of Hawaii prosecuted the case.