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8 July 2025
OmegaPro Founder and Promoter Charged for Running Global $650M Foreign Exchange and Crypto Investment ScamRead the Press Release
An indictment was unsealed today in the District of Puerto Rico charging two men for their alleged roles in operating and promoting OmegaPro, an international investment scheme that defrauded victim investors of over $650 million.
According to court documents, Michael Shannon Sims, 48, of Georgia and Florida, was a founder, strategic consultant, and promoter of OmegaPro, and Juan Carlos Reynoso, 57, of New Jersey and Florida, led OmegaPro’s operations in Latin America and parts of the United States, including Puerto Rico.
“As alleged, the defendants preyed upon vulnerable individuals in the U.S. and abroad, defrauding them of over $650 million by making false promises of substantial returns and that their money was safe,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The Criminal Division is committed to prosecuting these bad actors and pursuing justice for their many victims. Thanks to the dedicated work of our multiagency and international law enforcement partners, we are leading efforts to combat these complex and insidious digital asset investor scams.”
“As alleged in the indictment, the defendants operated a global fraud scheme through OmegaPro that deceived investors with false promises of extraordinary returns, only to misappropriate hundreds of millions of victim funds,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “We remain committed to dismantling international financial schemes that target U.S. victims — including here in Puerto Rico — and to recovering illicit proceeds through criminal prosecution and asset forfeiture.”
“The FBI will not stand by while the American public is defrauded,” said Assistant Director Joe Perez of the FBI Criminal Investigative Division. “Through coordination with our partners, these individuals will have to defend their actions in a court of law.”
“This case exposes the ruthless reality of modern financial crime,” said Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI). “OmegaPro promised financial freedom but delivered financial ruin – stealing over $650 million from everyday people and vanishing it into virtual currency. These weren't just scams; they were precision-engineered betrayals. Our job is to stand up for those who've been exploited and continue our cross-agency collaboration until those responsible are brought to justice."
“This case highlights the critical role international partnerships play in dismantling transnational financial fraud schemes that exploit global markets and victimize unsuspecting investors,” said International Operations Assistant Director Ricardo Mayoral of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “HSI remains committed to working with our partners worldwide to disrupt criminal networks that weaponize emerging technologies to conceal illicit profits and defraud the public.”
Sims and co-conspirators established OmegaPro in or about January 2019, and Reynoso joined a few months later, in or about April 2019. As alleged, the defendants and others operated and promoted OmegaPro as a multi-level marketing (MLM) scheme for investors to purchase “investment packages,” which the defendants and others falsely promised would generate 300% returns over 16 months through foreign exchange (forex) trading by elite traders. Investors were instructed to purchase these investment packages using virtual currency.
According to court documents, Sims allegedly misled victims by vouching for OmegaPro’s trading performance and the skills of the hired traders and by falsely advertising the safety of investment in OmegaPro. Reynoso allegedly falsely and misleadingly represented that OmegaPro was operating pursuant to a legitimate license and, at other times, that OmegaPro was not subject to any country’s legal rules. The indictment alleges that Sims and Reynoso, together with co-conspirators, hosted lavish OmegaPro promotional events and trainings all over the world including, for example, projecting the OmegaPro logo onto the Burj Khalifa, the world’s tallest building, at an event in Dubai. The objective of these promotional events allegedly was to convince existing and prospective investors that OmegaPro was a legitimate enterprise that offered a path to wealth and a luxurious lifestyle.
Further, Sims, Reynoso, and their co-conspirators used social media to display their expensive vacations and cars, as well as their designer clothes and watches. The indictment alleges that through the defendants’ and others’ misrepresentations, OmegaPro raised over $650 million in virtual currency from thousands of investors. After OmegaPro announced that it had suffered a network hack, Reynoso and others told victims in or about January 2023 that their investments were secure and that OmegaPro was transferring their investments to another platform called Broker Group. Despite these representations, victims were unable to withdraw money from either their OmegaPro accounts or their accounts at Broker Group, resulting in millions in victim losses.
The more than $650 million in funds raised from victims allegedly was first sent to virtual currency wallet addresses controlled by OmegaPro executives and then allegedly transferred to OmegaPro insiders and high-ranking promoters to disperse the funds and obscure their origins. As alleged, Sims and Reynoso both profited millions from this scheme.
Both defendants are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. If convicted, Sims and Reynoso each face a maximum penalty of 20 years in prison on each count.
The FBI, IRS-CI, and HSI New York are investigating the case, with assistance from FBI’s Virtual Asset Unit, HSI Bangkok, HSI Bogota, HSI Frankfurt, HSI Istanbul, HSI London, HSI Miami, HSI New Delhi, HSI The Hague, the Office of the Attorney General of Colombia, and the Joint Chiefs of Global Tax Enforcement (J5), an alliance between the Australian Taxation Office, the Canada Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty's Revenue and Customs from the U.K., and IRS-CI.
Trial Attorneys Ariel Glasner and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan Gottfried for the District of Puerto Rico and on detail to the Computer Crime and Intellectual Property Section are prosecuting the case.
If you believe you were potentially victimized by OmegaPro or have information relevant to this investigation, please visit the FBI’s Victim Witness website at forms.fbi.gov/victims/omegaprovictims or contact [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
OmegaPro Founder and Promoter Charged for Running Global $650M Foreign Exchange and Crypto Investment ScamRead the Press Release
An indictment was unsealed today in the District of Puerto Rico charging two men for their alleged roles in operating and promoting OmegaPro, an international investment scheme that defrauded victim investors of over $650 million.
According to court documents, Michael Shannon Sims, 48, of Georgia and Florida, was a founder, strategic consultant, and promoter of OmegaPro, and Juan Carlos Reynoso, 57, of New Jersey and Florida, led OmegaPro’s operations in Latin America and parts of the United States, including Puerto Rico.
“As alleged, the defendants preyed upon vulnerable individuals in the U.S. and abroad, defrauding them of over $650 million by making false promises of substantial returns and that their money was safe,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The Criminal Division is committed to prosecuting these bad actors and pursuing justice for their many victims. Thanks to the dedicated work of our multiagency and international law enforcement partners, we are leading efforts to combat these complex and insidious digital asset investor scams.”
“As alleged in the indictment, the defendants operated a global fraud scheme through OmegaPro that deceived investors with false promises of extraordinary returns, only to misappropriate hundreds of millions of victim funds,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “We remain committed to dismantling international financial schemes that target U.S. victims — including here in Puerto Rico — and to recovering illicit proceeds through criminal prosecution and asset forfeiture.”
“The FBI will not stand by while the American public is defrauded,” said Assistant Director Joe Perez of the FBI Criminal Investigative Division. “Through coordination with our partners, these individuals will have to defend their actions in a court of law.”
“This case exposes the ruthless reality of modern financial crime,” said Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI). “OmegaPro promised financial freedom but delivered financial ruin – stealing over $650 million from everyday people and vanishing it into virtual currency. These weren't just scams; they were precision-engineered betrayals. Our job is to stand up for those who've been exploited and continue our cross-agency collaboration until those responsible are brought to justice."
“This case highlights the critical role international partnerships play in dismantling transnational financial fraud schemes that exploit global markets and victimize unsuspecting investors,” said International Operations Assistant Director Ricardo Mayoral of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “HSI remains committed to working with our partners worldwide to disrupt criminal networks that weaponize emerging technologies to conceal illicit profits and defraud the public.”
Sims and co-conspirators established OmegaPro in or about January 2019, and Reynoso joined a few months later, in or about April 2019. As alleged, the defendants and others operated and promoted OmegaPro as a multi-level marketing (MLM) scheme for investors to purchase “investment packages,” which the defendants and others falsely promised would generate 300% returns over 16 months through foreign exchange (forex) trading by elite traders. Investors were instructed to purchase these investment packages using virtual currency.
According to court documents, Sims allegedly misled victims by vouching for OmegaPro’s trading performance and the skills of the hired traders and by falsely advertising the safety of investment in OmegaPro. Reynoso allegedly falsely and misleadingly represented that OmegaPro was operating pursuant to a legitimate license and, at other times, that OmegaPro was not subject to any country’s legal rules. The indictment alleges that Sims and Reynoso, together with co-conspirators, hosted lavish OmegaPro promotional events and trainings all over the world including, for example, projecting the OmegaPro logo onto the Burj Khalifa, the world’s tallest building, at an event in Dubai. The objective of these promotional events allegedly was to convince existing and prospective investors that OmegaPro was a legitimate enterprise that offered a path to wealth and a luxurious lifestyle.
Further, Sims, Reynoso, and their co-conspirators used social media to display their expensive vacations and cars, as well as their designer clothes and watches. The indictment alleges that through the defendants’ and others’ misrepresentations, OmegaPro raised over $650 million in virtual currency from thousands of investors. After OmegaPro announced that it had suffered a network hack, Reynoso and others told victims in or about January 2023 that their investments were secure and that OmegaPro was transferring their investments to another platform called Broker Group. Despite these representations, victims were unable to withdraw money from either their OmegaPro accounts or their accounts at Broker Group, resulting in millions in victim losses.
The more than $650 million in funds raised from victims allegedly was first sent to virtual currency wallet addresses controlled by OmegaPro executives and then allegedly transferred to OmegaPro insiders and high-ranking promoters to disperse the funds and obscure their origins. As alleged, Sims and Reynoso both profited millions from this scheme.
Both defendants are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. If convicted, Sims and Reynoso each face a maximum penalty of 20 years in prison on each count.
The FBI, IRS-CI, and HSI New York are investigating the case, with assistance from FBI’s Virtual Asset Unit, HSI Bangkok, HSI Bogota, HSI Frankfurt, HSI Istanbul, HSI London, HSI Miami, HSI New Delhi, HSI The Hague, the Office of the Attorney General of Colombia, and the Joint Chiefs of Global Tax Enforcement (J5), an alliance between the Australian Taxation Office, the Canada Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty's Revenue and Customs from the U.K., and IRS-CI.
Trial Attorneys Ariel Glasner and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan Gottfried for the District of Puerto Rico and on detail to the Computer Crime and Intellectual Property Section are prosecuting the case.
If you believe you were potentially victimized by OmegaPro or have information relevant to this investigation, please visit the FBI’s Victim Witness website at forms.fbi.gov/victims/omegaprovictims or contact [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ojo Amarillo Man Pleads Guilty to Violent Assault Resulting in Serious InjuriesRead the Press Release
ALBUQUERQUE – An Ojo Amarillo man pleaded guilty to a violent assault that left the victim with lasting disfigurement.
According to court records, on May 6, 2025, Kyle Kee, 44, an enrolled member of the Navajo Nation, intentionally struck the victim with his fists. As a result, the victim suffered an orbital floor fracture, nasal bone fractures, and facial disfigurement.
Kee pleaded guilty to one count of assault resulting in serious bodily injury. At sentencing, Kee faces up to 10 years in prison. Upon his release from prison, Kee will be subject to up to three years of supervised release.
U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Aaron Jordan is prosecuting the case.
New York Man Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A New York man has been charged for engaging in a scheme to defraud multiple lenders by using the personally identifiable information of a Hudson County man to submit fraudulent loan applications to obtain hundreds of thousands of dollars of loans, U.S. Attorney Alina Habba announced.
Humza Khan, 28, of New York, New York, is charged by complaint with one count of wire fraud and one count of aggravated identity theft. Khan appeared on July 2, 2025, before U.S. Magistrate Judge Stacey D. Adams in Newark federal court and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Around December 2020, Khan submitted loan applications to secure a $150,000 accounts receivable finance loan on behalf of a Florida-based specialty pharmacy in which Khan had a financial interest. Khan used the personal information of an elderly individual who lived in Hudson County, New Jersey—including their name and social security number—in the loan application without permission, in order to conceal that Khan was receiving the loan proceeds. Based on those fraudulent misrepresentations, the victim lenders provided Khan with approximately $150,000.
The wire fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft count carries an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Habba credited special agents of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the Internal Revenue Service – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; and special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Stefanie Roddy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney George Brandley of the Health Care Fraud and Opioids Enforcement Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Zach Intrater, Esq. and Daniela Manzi, Esq.
khan.complaint.pdfNevada Resident Pleads Guilty to Conspiracy to Engage in Voter Registration FraudRead the Press Release
MINNEAPOLIS – Ronnie Williams pled guilty today to an information charging him with conspiracy to engage in voter registration fraud, announced Acting U.S. Attorney Joseph H. Thompson.
“Today’s guilty plea underscores our commitment to protecting the integrity of the electoral process,” said Acting U.S. Attorney Joseph H. Thompson. “Free and fair elections are the cornerstone of our democracy. Any attempt to undermine that process through fraud will be investigated and prosecuted. This case sends a clear message—election fraud will not be tolerated in Minnesota.”
According to court documents, beginning in 2021 through 2022, Ronnie Williams, 58, was involved in a conspiracy to create fictitious identities and information for use in Minnesota voter registration applications. After filling out the forms, Williams signed a statement affirming that he had read and understood the certification, which included a warning that submitting false information constitutes a felony punishable by up to five years in prison.
According to court documents, Williams then submitted the fraudulent registrations to Foundation 1, an organization focused on voter registration efforts in Minnesota. Foundation 1 forwarded the false applications to county election offices throughout the state. In exchange, Foundation 1 compensated Williams for each registration submitted, and Williams shared a portion of the payments to his co-conspirator.
Williams pled guilty today in U.S. District Court before Judge David S. Doty.
This case is the result of an investigation conducted by the Federal Bureau of Investigation. The U.S. Attorney’s Office wishes to thank the Justice Department’s Public Integrity Section for partnering with the U.S. Attorney’s Office on this case. The U.S. Attorney’s Office also wishes to thank the Office of the Minnesota Secretary of State and the Carver County Sheriff’s Office for their assistance and full cooperation with this investigation.
Assistant U.S. Attorney Harry M. Jacobs and Trial Attorney Jonathan Jacobson of the Justice Department’s Public Integrity Section are prosecuting this case.
Mexican National Sentenced for Unlawful Reentry After Pleading Guilty to Possessing Stolen Vehicle and DrugsRead the Press Release
TULSA, Okla. – A Mexican National was sentenced today for Unlawfully Reentering the United States, after four prior removals, and possessing a stolen vehicle and drugs, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Rodrigo Chacon Villegas, 36, for Unlawful Reentry of a Removed Alien. Judge Frizzell ordered Chacon Villegas to serve 18 months imprisonment in the United States Bureau of Prisons, followed by three years of supervised release. Upon his release, Chacon Villegas is expected to face removal proceedings.
In December 2024, immigration officials found Chacon Villegas at the Tulsa County Jail after being arrested in November for driving a stolen vehicle, possessing methamphetamine, and marijuana. In State Court, Chacon Villegas was sentenced to a two-year suspended sentence in the Department of Corrections after pleading guilty.
Records show that Chacon Villegas is a Mexican national who has previously been deported and removed from the United States four times.
The U.S. Immigration and Customs Enforcement and Removal Operations investigated the case. Assistant U.S. Attorney Michele Hulgaard prosecuted the case.
Mexican National Sentenced to Prison for Armed CarjackingRead the Press Release
CHARLOTTE, N.C. – Solamon Flores-Garcia, 43, of Mexico, was sentenced to 10 years in prison today for carjacking and possession and brandishing of a firearm in furtherance of a crime of violence, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina, and Chief Rhett Bolen of the Monroe Police Department, join U.S. Attorney Ferguson in making today’s announcement.
According to court documents and court proceedings, on October 24, 2023, Flores-Garcia, a previously deported alien that was residing illegally in Monroe, N.C., went to a neighbor’s home. When the neighbor answered the door, Flores-Garcia pointed a red handgun at the neighbor and demanded her wallet and car keys. Flores-Garcia then drove the victim’s car to La Chiquita Mexican store, where he robbed that establishment. During the robbery, Flores-Garcia pointed a red firearm at the head of the clerk before taking money from the store and fleeing the scene in the stolen vehicle. Flores-Garcia was arrested shortly thereafter.
Flores-Garcia remains in custody pending transfer to the Federal Bureau of Prisons upon designation of a federal facility.
The FBI and CMPD investigated the case. The U.S. Attorney’s Office in Charlotte prosecuted the case.
Mexican National Pleads Guilty to Unlawfully Returning to United States after RemovalRead the Press Release
KANSAS CITY, Mo. – A Mexican national has pleaded guilty in federal court to illegally reentering the United States after having been previously removed.
Florencio Aburto-Feliciano, 46, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of unlawfully returning to the United States after removal.
On May 8, 2025, Aburto-Feliciano was arrested on warrants for outstanding traffic violations by Greenwood, Missouri, Police Officers. On May 10, 2025, he was taken into custody by immigration officers at the Jackson County, Missouri detention center.
Aburto-Feliciano faces up to two years in federal prison and a maximum fine of $250,000. Chief U.S. District Judge Beth Phillips will impose sentencing on November 13, 2025.
He has been and will remain in custody pending his sentencing hearing.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by Immigration & Customs Enforcement, Homeland Security Investigations.
Operation Take Back America
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).
Mexican National Guilty of Illegal Re-EntryRead the Press Release
NEW ORLEANS – Acting United States Attorney Michael M. Simpson announced today that MARCO GOMEZ-ARGUELLO ("GOMEZ-ARGUELLO"), age 36, pled guilty on July 3, 2025, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) and Title 8, United States Code, Section 1326(b)(1).
According to the indictment, GOMEZ-ARGUELLO, re-entered the United States after being previously deported on October 28, 2013.
At sentencing, GOMEZ-ARGUELLO faces up to two years imprisonment, a fine of up to $250,000, up to one year of supervised release, and a mandatory $100 special assessment fee.
Acting United States Attorney Michael M. Simpson praised the work of the U.S. Immigration and Customs Enforcement (ICE) New Orleans Field Office in investigating this matter. Assistant United States Attorney Mary Katherine Kaufman 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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Mexican Man Pleads Guilty to Violating Federal Kingpin Statute and Money Laundering in Connection with Arizona-Based Transnational Drug Trafficking OrganizationRead the Press Release
PITTSBURGH, Pa. - A Mexican national illegally residing in Phoenix, Arizona, pleaded guilty in federal court on July 7, 2025, to charges of violating the federal “Kingpin” statute for operating a continuing criminal enterprise as well as money laundering, Acting United States Attorney Troy Rivetti announced today.
Marcos Monarrez-Mendoza, 55, pleaded guilty before United States District Judge J. Nicholas Ranjan. Monarrez-Mendoza was among 35 individuals charged through a Second Superseding Indictment unsealed in January 2024 for their participation in a domestic and international narcotics and money laundering conspiracy involving substantial quantities of fentanyl, methamphetamine, and cocaine (read the Second Superseding Indictment news release here).
In connection with the guilty plea, the Court was advised that, at various times from September 2022 to November 2022, Monarrez-Mendoza—a co-leader, along with his son Marcos Monarrez Jr., of the Phoenix-based Monarrez Drug Trafficking Organization—was intercepted over a federal wiretap obtaining hundreds of pounds of methamphetamine, millions of fentanyl pills, and kilograms of cocaine from a Mexican national drug supplier. Monarrez-Mendoza provided the drugs to a network of subordinate drug distributors who redistributed them throughout the country, including into western Pennsylvania. Additionally, Monarrez-Mendoza provided over $100,000 in proceeds from the drug sales to couriers who smuggled the money into Mexico to promote the drug trafficking operation.
Judge Ranjan scheduled sentencing for December 5, 2025. The law provides for a sentence of not less than 20 years and up to life in prison, a fine of up to $2 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Arnold P. Bernard Jr. and Tonya S. Goodman are prosecuting this case on behalf of the government.
Homeland Security Investigations and the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Monarrez-Mendoza.This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations, combat illegal immigration, 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). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
McKeesport Felon Sentenced to Prison for Illegal Possession of Firearms and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of McKeesport, Pennsylvania, has been sentenced in federal court to 37 months of imprisonment on his conviction of illegally possessing firearms and ammunition as a convicted felon, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Richard L. Edwards Jr., 49.
According to information presented to the Court, Edwards was serving probation following a 2023 conviction for which he was sentenced to five years of county probation and 18 months of electronic home monitoring. While on approved grocery windows on both May 25, 2024, and June 1, 2024, Edwards stopped with his wife at a local firearms store, where his wife purchased a firearm on each occasion. In light of the two unauthorized stops, Westmoreland County Adult Probation conducted a search of Edwards’ residence on August 9, 2024, where they located multiple firearms and ammunition in Edwards’ bedroom and requested the assistance of the McKeesport Police Department. In total, law enforcement seized four firearms, including a sawed-off shotgun, and numerous rounds of ammunition from Edwards’ bedroom. Edwards is prohibited from possessing firearms or ammunition based upon his prior convictions for robbery and simple assault—both of which involved his use and threatened use of a firearm.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended Westmoreland County Adult Probation, the McKeesport Police Department, and the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Edwards.
Maryland Couple Sentenced for $20M Insurance Fraud SchemeRead the Press Release
A Maryland husband and wife were sentenced today to 12 years in prison and four years in prison, respectively, after their convictions for a scheme to commit insurance fraud.
The following is according to court documents and evidence presented at trial: James and Maureen Wilson, of Owings Mills, conspired to defraud insurance companies by obtaining over 40 life insurance policies for applicants by mispresenting their health, wealth, and existing life insurance coverage. The total death benefits from these policies exceeded $20 million. The Wilsons also conspired to defraud individual investors to obtain funds that Wilson used to pay premiums on fraudulently obtained life insurance policies.
To conceal the fraud, the Wilsons transferred the money they made from the fraud through multiple bank accounts, including accounts in the name of trusts. The Wilsons filed false individual income tax returns for 2018 and 2019, which did not report as income or pay tax on the approximately $5.7 million and $2 million, respectively, they made from the fraud.
In addition to their prison sentences, Judge Deborah K. Chasanow for the District of Maryland ordered both Wilsons to serve three years of supervised release and to pay approximately $16 million in restitution to victims of the insurance fraud scheme and $2.7 million in restitution to the United States. She also ordered the Wilsons to forfeit approximately $14.8 million in seized funds.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Kelly O. Hayes for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.
Trial Attorneys Shawn Noud and Richard Kelley of the Tax Division, Assistant U.S. Attorneys Matthew Phelps and Philip Motsay for the District of Maryland, and Trial Attorney Stephanie Williamson of the Justice Department’s Criminal Division prosecuted the case.
Marijuana Dealer Who Possessed Machine Gun Sentenced to 27 Months in Federal PrisonRead the Press Release
WASHINGTON – U.S. Attorney Jeanine Ferris Pirro announced that Zimarie Bryant, 20, of the District of Columbia, was sentenced today to 27 months in federal prison in connection with marijuana trafficking and illegally possessing a machine gun.
Bryant, an aspiring rapper aka “Cruddy Marie,” pleaded guilty on March 13, 2025, to one count of possession with intent to distribute marijuana and to one count of unlawful possession of a machine gun. In addition to the 30-month prison term, U.S. District Court Judge Amy Berman Jackson ordered Bryant to serve three years of supervised release.
According to court documents, on Aug. 31, 2023, FBI agents went to an apartment in the 3600 Block of Jay Street, NE, to execute a federal arrest warrant. Agents knocked on the door but did not gain entry for more than 20 minutes. Agents obtained a search warrant and recovered numerous firearms, including a 9mm Glock 45 that had been modified with a switch to make it a functionally fully automatic machine gun.
Agents also recovered about 12 pounds of marijuana, ammunition, and a firearm magazine. As part of this plea, Bryant acknowledged that he possessed the marijuana with the intent to distribute it, that he possessed the machine gun in connection with that possession with intent to distribute, and that he knew the firearm was a machine gun.
While Bryant was released from the apartment, messages from his Instagram account from around the time of the search acknowledge his presence at the scene. On Aug. 31, 2023, Bryant sent an Instagram message to another user saying, “I was just locked up and got picked up by the fbi.” In a separate conversation that day, another Instagram user asked him, “Ever found some thunder 1” “? *”, which refers to marijuana. Bryant responded, “I had some but fbi ran in our spot and took everything”.
On May 30, 2024, Bryant was arrested at an apartment in Southeast Washington, D.C. Law enforcement recovered a disassembled Glock 19 handgun, two 9mm magazines with 15 rounds each, a black scale, and two additional 9mm rounds. When Bryant was shown his arrest warrant during booking, he denied having a machine gun but did admit he had a Glock 19.
Bryant has a history of using and possessing firearms unlawfully. On June 30, 2023, he posted a video on Instagram showing him possessing what appears to be the same firearm involved in this case.
Joining in the announcement were Assistant Director in Chief Steven J. Jensen of the FBI Washington Field Office, Special Agent in Charge Ibrar A. Mian of the Drug Enforcement Administration (DEA) Washington Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).
This case was investigated by the FBI Washington Field Office, the DEA, and MPD. It was prosecuted by Assistant U.S. Attorney Solomon Eppel.
This news release, originally issued on July 2, was updated July 8 to reflect a resentencing of the defendant.
Manchester Man Pleads Guilty to Child Exploitation Offenses Related to Sexual Abuse MinorRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that HERNAN AYALA, 33, of Manchester, waived his right to be indicted and pleaded guilty today in Hartford federal court to child exploitation offenses related to his sexual abuse of a minor.
According to court documents and statements made in court, in March 2024, the Manchester Police Department received a complaint that a minor female had been sexually abused by Ayala. The minor female reported that Ayala had engaged in sexual conduct with her for more than eight years, and that Ayala had recorded his sexual abuse of her on his cellphone. On that date, investigators searched Ayala’s residence and seized several electronic devices, including his iPhone. Analysis of the seized phone revealed numerous videos and images of Ayala engaging in sexual conduct with the minor victim.
Ayala pleaded guilty to one count of possession of child pornography, which carries a maximum term of imprisonment of 10 years, and one count of production of child pornography, which carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years. He is scheduled to be sentenced by U.S. District Judge Vernon D. Oliver on September 30.
Ayala has been detained since his arrest on related state charges on March 9, 2024.
This matter has been investigated by Homeland Security Investigations (HSI) and the Manchester Police Department, the Glastonbury Police Department, and the Connecticut Center for Digital Investigations. The case is being prosecuted by Assistant United States Attorney Nancy V. Gifford.
U.S. Attorney Sullivan thanked the State’s Attorney’s Offices for the Judicial Districts of Hartford and Tolland for their cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Man Sentenced to 14 Years in Prison for String of Armed Robberies in CharlotteRead the Press Release
CHARLOTTE, N.C. – Jamaris Ladell Smith, 36, of Charlotte, was sentenced to 14 years in prison followed by three years of supervised release today for a string of armed robberies, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings, of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making today’s announcement.
According to documents filed with the court, Smith committed six armed robberies in a span of two days. Court records show that, on January 17, 2023, at approximately 11 p.m., Smith entered the Sam’s Mart located at 4627 Sharon Road in Charlotte. Wearing a denim jacket with a fake fur collar, a red and blue knit cap, a black hoody, and blue jeans, Smith pointed a handgun at the store clerk and demanded cash. During the robbery, Smith told the clerk not to get killed over the store, warning her that she would be killed if she made the wrong move. The clerk placed the cash drawer on the counter and Smith took the money and left the scene.
The next day, at approximately 3:30 p.m., Smith, wearing a blue denim jacket with the words “Empty Promises” written on the back, entered the Walgreens located at 7115 E WT Harris Blvd. in Charlotte and asked the clerk to open the register. Smith then pointed a black handgun at the clerk. When the clerk hesitated, Smith began to count down from five to zero. The clerk opened the register and Smith reached over and grabbed the cash. As with the previous robbery, Smith told the clerk he was not playing around and that he would shoot her. After taking the cash, Smith left the scene.
On the same day, at approximately 8:30 p.m., Smith, wearing the same denim jacket with the words “Empty Promises” written on the back, entered the CVS located at 6110 The Plaza, in Charlotte. Smith stood at the empty counter until the clerk came from the back to help him. At that point, Smith pulled out a gun and said, “Don’t move and don’t scream. Give me everything you got.” The clerk opened the store register and gave Smith cash. Smith then fled the scene in a vehicle.
Later the same evening, a little after 11:00 p.m., Smith, wearing a denim jacket with a fake fur collar, a red and black knit cap, and a black hoody, entered the Circle K located at 4474 Randolph Road, in Charlotte. Smith pointed a black handgun at the store clerk, telling him to empty the register. Smith grabbed the cash from the register and left.
The next day, on January 19, at approximately 1:20 a.m., Smith, wearing the same outfit as the day prior, entered the 7-Eleven located at 8101 Old Concord Road in Charlotte, pointed a handgun at the clerk and stated, “it’s not worth it, give me all the money.” Smith took the store’s cash and left.
U.S. v. Jamaris Ladell Smith – January 19, 2023, Armed Robbery of 7-Eleven Store
Then a few hours later, at approximately 6:05 a.m., Smith entered the Burger King located at 4709 Sharon Road, in Charlotte, pointed a gun at an employee, forced her into the office and demanded money from the cash registers. Smith took the cash and fled in a silver SUV.
Smith was arrested later the same day after investigators reviewed surveillance videos from the robberies and identified him as the robber. Distinctive articles of clothing Smith wore during the robberies, including the jacket with the writing on the back, were recovered from Smith’s residence. Also, the firearm Smith used during the robberies was found in Smith’s vehicle.
On February 16, 2024, Smith pleaded guilty to six counts of Hobbs Act robberies and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. He remains in custody pending transfer to the Federal Bureau of Prisons upon designation of a federal facility.
In sentencing Smith to a lengthy prison term, U.S. District Judge Max O. Cogburn Jr. noted the need to promote respect for the law and to protect the public.
The FBI and CMPD investigated the case.
Assistant U.S. Attorney Dana Washington with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Lummi Nation member indicted for assault by strangulation of ex-partnerRead the Press Release
Seattle – A 48-year-old member of the Lummi Nation was arraigned in federal court today on an indictment charging him with assault by strangulation, announced Acting U.S. Attorney Teal Luthy Miller. Marc Cagey Oreiro entered a plea of not guilty. Trial is scheduled in front of U.S. District Judge Lauren King on August 25, 2025.
According to records filed in the case, on May 23, 2025, Oreiro assaulted the victim in the master bedroom of a home on Lummi Nation tribal land. Oreiro pushed the victim onto the bed and alternated strangling her with his hands and forearm causing the victim to experience difficulty breathing. While she was pinned to the bed, Oreiro hit her multiple times, punching her in the head, back, stomach, side, and ear. He struck her in the ribs with his knee and knelt on her chest and repeatedly threatened to kill her.
Lummi Police officers arrived at the door after a housemate called police. After searching the home, police arrested Oreiro who physically fought with officers. The victim was found crying in the master bedroom closet where Oreiro had ordered her to hide from police. The victim was transported by medics for treatment of her injuries. She had bruises on her face, ears, and bruising and abrasions on her neck.
Oreiro was originally charged in tribal court. Following the initial FBI investigation, Oreiro was charged by criminal complaint, and on June 25, 2025, the grand jury returned an indictment.
Assault by strangulation is punishable by up to 10 years in prison and a fine of up to $250,000.00.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI Safe Trails Task Force and the Lummi Nation Police.
The case is being prosecuted by Assistant United States Attorney Celia Lee. Ms. Lee serves as a Tribal Liaison for the U.S. Attorney’s Office.
Leader of Multimillion-Dollar Bank Fraud Scheme Is Sentenced to 15 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a multimillion-dollar bank fraud scheme and one of his co-conspirators were sentenced to prison today, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Kotto Yaphet Paul, 50 of Waxhaw, N.C., was ordered to serve 15 years in prison followed by five years of supervised release. Latoya Tameika Ford, 50, of Covington, Georgia, was sentenced to 27 months in prison followed by three years of supervised release. Both Paul and Ford pleaded guilty to conspiracy to commit wire fraud and bank fraud. Paul also pleaded guilty to money laundering and aiding and abetting.
A third co-conspirator, Bruce Howard Marko, 66, of Charlotte, was sentenced in April to 12 months and a day in prison followed by two years of supervised release and was ordered to pay restitution in the amount of $1.5 million for his role in the scheme. A fourth individual charged in this case, Love Norman, of West Palm Beach, Florida, has pleaded guilty to conspiracy to commit wire fraud and bank fraud and is awaiting sentencing.
Four additional defendants were previously convicted of bank fraud conspiracy for their involvement in the scheme. Amrish D. Patel was sentenced to 15 months in prison. Dwight A. Peebles, Jr. was sentenced to 18 months in prison. Denise Woodard was ordered to serve 36 months in prison, and Derrick L. Harrison, was sentenced to a year and a day in prison. The defendants were also ordered to pay restitution ranging from $620,000 to more than $3.1 million.
According to filed court documents and court proceedings, beginning in 2018, the co-conspirators executed a scheme that defrauded at least 17 federally insured financial institutions of more than $17 million in fraudulent loans. Paul, who was the organizer and leader of the scheme and the primary beneficiary of the fraud conspiracy, relied on a network of co-conspirators that included Ford, to prepare and submit the fraudulent loan applications to financial institutions and facilitate the fraud. The fraudulent loans were of several types, including business loans purportedly for the purchase of equipment, land development loans, and residential mortgage loans. To secure the loans from the financial institutions, Paul and his co-conspirators made material misrepresentations on the loan applications and provided fraudulent documentation, including false income and employment information; financial statements; bank statements; and tax returns. The loan applications also contained misrepresentations about the purpose of the loans and the operations of the relevant businesses.
Based on the fraudulent loan applications, Paul and his co-conspirators secured at least 42 loans from the victim financial institutions. Contrary to information provided on the loan applications about the purposes of the loans, the defendants used the loan proceeds to purchase real estate, cover unrelated business expenses, make investments, make payments toward earlier loans, and pay for personal expenditures.
According to court documents, Paul engaged in money laundering in furtherance of the fraud and executed monetary transactions using funds derived from the criminal scheme. For example, in 2020, Paul wired nearly $400,000 to a title insurance company that Norman used to purchase a home in Florida.
Court documents show that the defendants defaulted on most of the loans, causing substantial losses to the victim financial institutions that issued the loans.
In making today’s announcement, U.S. Attorney Ferguson credited the Office of the Inspector General of the Board of Governors of the Federal Reserve System, the Office of the Inspector General for the Federal Housing Finance Agency, the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation in Charlotte, and the Charlotte Field Office of the Internal Revenue Service’s Criminal Investigation, for the investigation of this case.
Assistant U.S. Attorney Don Gast with the U.S. Attorney’s Office in Asheville is prosecuting the case.
Lawrence County Man Sentenced for Armed Methamphetamine Trafficking and Illegal Firearm PossessionRead the Press Release
ASHLAND, Ky. – A Webbville, Ky., man, Kenneth Ison, Jr., 55, was sentenced on Monday by Chief U.S. District Judge David Bunning to 120 months in prison for possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
According to his plea agreement, in September 2024, the Kentucky State Police, assisted by the Grayson Police Department, obtained a search warrant for Kenneth Ison’s residence in Lawrence County and a vehicle used by Ison. During the search, officers located approximately 168 grams of suspected methamphetamine, 33 grams of suspected fentanyl, and marijuana; subsequent lab testing confirmed the presence of at least 76 grams of actual methamphetamine and 26 grams of actual fentanyl. In addition to the narcotics, officers seized 17 firearms, one of which was stolen. At the time of his arrest, Ison was on parole for a prior felony conviction of trafficking in a controlled substance from the Carter Circuit Court; as a felon, Ison was prohibited from possessing a firearm.
Ison admitted that he possessed the narcotics with intent to distribute them, and that he possessed the firearms in furtherance of his drug trafficking.
Under federal law, Ison must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 5 years.
Paul McCaffrey, Acting United States Attorney for the Eastern District of Kentucky; John Nokes, Special Agent in Charge, ATF, Louisville Field Division; Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Tony Cantrell, Grayson Police Department, jointly announced the sentence.
The investigation was conducted by the ATF, KSP, and Grayson Police Department. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney McCaffrey coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Kenner Man Guilty of Violating Federal Controlled Substances and Gun Control ActsRead the Press Release
NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that TEVIN BORNES (“BORNES”), age 31, a resident of Kenner, Louisiana, pled guilty on July 2, 2025, to violating the Federal Controlled Substances and Gun Control Acts, before United States District Judge Jane Triche Milazzo.
According to court documents, in response to a complaint, law enforcement searched BORNES’ apartment on July 31, 2023 and seized 12.5 grams of marijuana, 47.74 grams of pure crystal methamphetamine, 9.75 grams of cocaine base, 137.22 grams of methamphetamine, 14.5 grams of cocaine hydrochloride, and 4 firearms, including: a Glock Model 22, .40 caliber semi-automatic pistol, equipped with a machinegun conversion device, a Pioneer Arms Model Sporter, 7.62 millimeter caliber semi-automatic rifle, a Glock Model 23, .40 caliber semi-automatic pistol, and a Del-Ton DTI-15, 5.56 caliber semi-automatic pistol.
BORNES pled guilty to Counts 1 through 4 of the indictment. Count 1 of the indictment charged BORNES with possession, with intent to distribute, 5 grams or more of methamphetamine, and quantities of cocaine and cocaine base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(C). For this offense, he faces a statutory mandatory minimum sentence of five years, up to forty years imprisonment, a fine of up to $5,000,000, and at least four years of supervised release following any term of imprisonment.
Count 2 charged BORNES with possessing firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(i). For this offense, the defendant faces a mandatory minimum sentence of five years imprisonment, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to five years supervised release.
Count 3 charged BORNES with possession of a machinegun, in violation of Title 18, United States Code, Section 922(o). For this offense, he faces up to ten years imprisonment, a fine of up to $250,000, and up to three years supervised release.
Count 4 charged BORNES with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). For this offense, he faces up to fifteen years imprisonment, a fine of up to $250,000, and up to three years supervised release. For each of the charged counts, BORNES also faces payment of a $100 mandatory special assessment fee.
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.
This case was investigated by Homeland Security Investigations the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Kenner Police Department. Assistant United States Attorney Rachal Cassagne of the Narcotics Unit oversees the prosecution.
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Kansas Man Sentenced to 300 months for Enticement of a Minor and Production of Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Leavenworth, Kansas man was sentenced in federal court today for enticement of a minor to engage in illegal sexual activity and production child pornography, involving a 15-year-old minor victim.
Antoine Askari Richardson, 27, was sentenced to 300 months imprisonment by U.S. District Judge D. Gregory Kays for one count of use of interstate facility to entice a minor to engage in illegal sexual activity and one count of production of child pornography.
Richardson, a former graduate student and employee of a private University, in Leavenworth, Kansas, previously pled guilty to enticement of a minor and production of child pornography on February 27, 2025. According to the written plea agreement, Richardson met the minor victim on a social media application. Richardson communicated online with the minor victim and travelled to Grain Valley, Missouri to engage in sexual acts with the minor victim four times between November 2022 and January 2023. Richardson recorded the sexual acts with his cellular phone and sent the videos to the minor victim. Richardson admitted to also communicating with a second minor on a social media application and engaging in sexually explicit conversations with the second minor. Richardson admitted to travelling across state lines in attempt to meet the second minor but was unsuccessful in contacting the second minor.
This case is being prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the Missouri State Highway Patrol, the Grain Valley, Missouri Police Department, Leavenworth, Kansas Police Department, and the Jackson County, Missouri Prosecutor’s Office.
Richardson will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department's Antitrust Division Announces Whistleblower Rewards ProgramRead the Press Release
The Justice Department’s Antitrust Division today announces its partnership with the United States Postal Service to create the Whistleblower Rewards Program. For the first time, the Antitrust Division will offer rewards for individuals who report antitrust crimes and related offenses that harm consumers, taxpayers, and free market competition across industries from healthcare to agriculture — under existing law and at no additional cost to the taxpayer.
“Antitrust crimes and related offenses that harm free market competition often occur in secret, making detection a formidable challenge. The new Whistleblower Rewards Program will create a new pipeline of leads from individuals with firsthand knowledge of criminal antitrust and related offenses that will help us break down those walls of secrecy and hold violators accountable,” said Assistant Attorney General Abigail Slater of the Antitrust Division. “This program raises the stakes: If you’re fixing prices or rigging bids, don’t assume your scheme is safe — we will find and prosecute you, and someone you know may get a reward for helping us do it.”
“This reporting mechanism gives those with a vested interest in maintaining the integrity of the Postal Service the opportunity to join us in the fight,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service. “The Postal Inspection Service, along with our partners in the Department of Justice’s Antitrust Division and the U.S. Postal Service Office of Inspector General will not tolerate anyone who violates Antitrust Laws; we remain committed to seeking justice against anyone who chooses to do so. And for those who are also motivated to using this tool to report Antitrust crimes, we affirm our commitment to fully investigate and bring violators to justice.”
“As a key partner and original member in the Department of Justice’s Procurement Collusion Strike Force, the U.S. Postal Service Office of Inspector General (USPS OIG), actively collaborates with other federal agencies to detect, investigate, and prosecute antitrust crimes, ensuring fair competition and safeguarding taxpayer’s dollars in federal procurements,” said Assistant Inspector General for Investigations Robert Kwalwasser, U.S. Postal Service Office of Inspector General. “We are pleased to be partnering with DOJ and the Postal Inspection Service to implement the Whistleblower Rewards Program to incentivize individuals and companies to provide information about collusive behavior without fear of reprisal. This newly established program is an example of DOJ’s commitment to root out illicit behavior in all industries, which includes industries where the USPS procures goods and services either directly or indirectly. The USPS OIG will fully participate in this collaborate effort to ensure the USPS and the U.S. taxpayers are not being defrauded of honest services.”
The U.S. Postal Inspection Service and USPS OIG have long played a vital role in uncovering and investigating postal-related antitrust crimes that harm Americans. The Whistleblower Rewards Program will provide individuals with the opportunity to report evidence of antitrust crimes directly to the Antitrust Division and, in appropriate cases, qualify for substantial monetary rewards of up to 30% of any criminal fines recovered, for violations of law affecting the Postal Service, its revenues, or its property. The program expands upon the Division’s long-standing efforts to detect and prosecute cartels and criminal collusion by incentivizing individuals to report specific, credible, and timely information about illegal agreements to fix prices, rig bids, and allocate markets, as well as other federal criminal violations that impact, distort, or undermine the competitive process or market competition.
To facilitate reporting, the Division has established a dedicated Whistleblower Regards Program webpage accessible at www.justice.gov/atr/whistleblower-rewards. Whistleblowers and their counsel are encouraged to contact the Division promptly.
Justice Department Files Statement of Interest in Illinois Case Concerning States’ Obligations Under the National Voter Registration ActRead the Press Release
Today, the Justice Department filed a Statement of Interest in Judicial Watch v. Illinois State Board of Elections, regarding the requirements under the National Voter Registration Act (NVRA) for states to make reasonable efforts to remove the names of ineligible voters and to make their voter registration list available for public inspection. The requirement for states to make a “reasonable effort” to clean their voter rolls means that the program should be effective in achieving the goals set out by Congress, and nothing less.
“It is critical to remove ineligible voters from the registration rolls so that elections are conducted fairly, accurately, and without fraud,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Under the NVRA, states have the responsibility to conduct a robust program of list maintenance. The Department of Justice will vigorously enforce those requirements to ensure compliance.”
More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Justice Department Announces Arrest of Prolific Chinese State-Sponsored Contract HackerRead the Press Release
The Justice Department announced today that Xu Zewei (徐泽伟), 33, of the People’s Republic of China was arrested on July 3 in Italy at the request of the United States. Xu and his co-defendant, PRC national Zhang Yu (张宇), 44, are charged in a nine-count indictment, unsealed today in the Southern District of Texas, for their involvement in computer intrusions between February 2020 and June 2021, including the indiscriminate HAFNIUM computer intrusion campaign that compromised thousands of computers worldwide, including in the United States. Xu was arrested in Milan, Italy, and will face extradition proceedings.
According to court documents, officers of the PRC’s Ministry of State Security’s (MSS) Shanghai State Security Bureau (SSSB) directed Xu to conduct this hacking. The MSS and SSSB are PRC intelligence services responsible for PRC’s domestic counterintelligence, non-military foreign intelligence, and aspects of the PRC’s political and domestic security. When conducting the computer intrusions, Xu worked for a company named Shanghai Powerock Network Co. Ltd. (Powerock). Powerock was one of many “enabling” companies in the PRC that conducted hacking for the PRC government.
“This arrest underscores the United States’ patient and tireless commitment to pursuing hackers who seek to steal information belonging to U.S. companies and universities,” said John A. Eisenberg, Assistant Attorney General for the National Security Division. “The Justice Department will find you and hold you accountable for threatening our cybersecurity and harming our people and institutions.”
“The indictment alleges that Xu was hacking and stealing crucial COVID-19 research at the behest of the Chinese government while that same government was simultaneously withholding information about the virus and its origins,” said Nicholas Ganjei, U.S. Attorney for the Southern District of Texas. “The Southern District of Texas has been waiting years to bring Xu to justice and that day is nearly at hand. As this case shows, even if it takes years, we will track hackers down and make them answer for their crimes. The United States does not forget.”
“In February 2020, as the world entered a pandemic, Xu Zewei and other cyber actors working on behalf of the Chinese Communist Party (CCP) targeted American universities to steal groundbreaking COVID-19 research. The following year, these same actors, operating as a group publicly known as HAFNIUM, exploited zero-day vulnerabilities in U.S. systems to steal additional research,” said Assistant Director Brett Leatherman of FBI’s Cyber Division. “Through HAFNIUM, the CCP targeted over 60,000 U.S. entities, successfully victimizing more than 12,700 in order to steal sensitive information. This arrest, carried out with our Italian law enforcement partners, demonstrates the FBI’s relentless commitment to holding CCP-sponsored hackers accountable for their crimes.”
According to court documents, in early 2020, Xu and his co-conspirators hacked and otherwise targeted U.S.-based universities, immunologists, and virologists conducting research into COVID‑19 vaccines, treatment, and testing. Xu and others reported their activities to officers in the SSSB who were supervising and directing the hacking activities. For example, on or about Feb. 19, 2020, Xu provided an SSSB officer with confirmation that he had compromised the network of a research university located in the Southern District of Texas. On or about Feb. 22, 2020, the SSSB officer directed Xu to target and access specific email accounts (mailboxes) belonging to virologists and immunologists engaged in COVID-19 research for the university. Xu later confirmed for the SSSB officer that he acquired the contents of the researchers’ mailboxes.
Beginning in late 2020, Xu and his co-conspirators exploited certain vulnerabilities in Microsoft Exchange Server, a widely-used Microsoft product for sending, receiving, and storing email messages. Their exploitation of Microsoft Exchange Server was at the forefront of a massive campaign targeting thousands of computers worldwide and known publicly as “HAFNIUM.” In March 2021, Microsoft publicly disclosed the intrusion campaign by state-sponsored hackers operating out of China. Throughout March 2021, Microsoft and other industry partners released detection tools, patches, and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10, 2021. However, by the end of March 2021, hundreds of web shells remained on certain U.S.-based computers running Microsoft Exchange Server software. In April 2021, the Justice Department announced a court-authorized operation to remediate hundreds of computers in the United States made vulnerable by HAFNIUM actors. In July 2021, the United States and foreign partners attributed the HAFNIUM campaign to the PRC’s MSS.
Among the victims of Xu’s exploitation of Microsoft Exchange Server were another university located in the Southern District of Texas and a law firm with offices worldwide, including in Washington, D.C. After exploiting computers running Microsoft Exchange Server, Xu and his co-conspirators installed web shells on them to enable their remote administration. These web shells were specific to HAFNIUM actors at the time. As with the earlier COVID-19 research intrusions, Xu and Zhang worked together on the HAFNIUM intrusions, under the supervision and direction of SSSB officers. For example, on or about Jan. 30, 2021, Xu confirmed to Zhang that he had compromised the other university’s network. Later, on or about Feb. 28, 2021, Xu updated a SSSB officer on his successful intrusions. This SSSB officer then directed Xu to obtain a list of other, successful intrusions from a second SSSB officer. Unauthorized access to the law firm’s network allowed Xu and his co-conspirators to steal information from mailboxes and search them for information regarding specific U.S. policy makers and government agencies. Their search terms included “Chinese sources,” “MSS,” and “HongKong.”
The announcement of charges against Xu is the latest describing the PRC’s use of an extensive network of private companies and contractors in China to hack and steal information in a manner that obscured the PRC government’s involvement. Operating from their safe haven and motivated by profit, this network of private companies and contractors in China cast a wide net to identify vulnerable computers, exploit those computers, and then identify information that it could sell directly or indirectly to the PRC government. This largely indiscriminate approach results in more victims in the United States and elsewhere, more systems worldwide left vulnerable to future exploitation by third parties, and more stolen information, often of no interest to the PRC government and, therefore, sold to other third parties.
Xu is charged with conspiracy to commit wire fraud and two counts of wire fraud, which carries a maximum penalty of 20 years in prison for each count; conspiracy to cause damage to and obtain information by unauthorized access to protected computers, to commit wire fraud, and to commit identity theft, which carries a maximum penalty of five years in prison; two counts of obtaining information by unauthorized access to protected computers, which carries a maximum penalty of five years in prison; two counts of intentional damage to a protected computer, which carries a maximum penalty of 10 years in prison; and aggravated identity theft, which carries a maximum penalty of two years in prison. Zhang Yu, remains at large. Anyone with information about his whereabouts is asked to contact the FBI at 1-800-CALL-FBI (1-800-225-5324).
The FBI’s Houston Field Office is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance in securing the defendant’s arrest.
Assistant U.S. Attorneys Mark McIntyre and John Marck for the Southern District of Texas and Deputy Chief Matthew Anzaldi of the National Security Division’s National Security Cyber Section are prosecuting the case. The Justice Department’s Office of International Affairs is handling the extradition.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Finds Father Guilty of First-Degree Child Sexual Abuse of His 12-Year-OldRead the Press Release
WASHINGTON –A Washington, D.C. resident, 33, has been found guilty by a jury on seven felony charges, including first-degree child sexual abuse, second-degree child sexual abuse, and incest for sexually abusing his 12-year-old daughter between April and May of 2023, announced U.S. Attorney Jeanine Ferris Pirro.
The verdict was returned today, following a trial in the Superior Court of the District of Columbia. The Honorable Todd Edelman scheduled sentencing for October 10, 2025. The defendant faces a maximum sentence up to life in prison for the crimes.
According to the government’s evidence, on May 27, 2023, the twelve-year-old victim was spending Memorial Day weekend with her father (the defendant) and the defendant’s girlfriend and slept in the bed with them. In the early morning of May 28, 2023, the defendant’s girlfriend pulled back the covers and saw that the defendant’s hand was inside of the front of the victim’s pants. Later that night the defendant texted the victim, first asking her to lie to her mother about him touching her, then asking the victim if she wanted him to touch her. The defendant raped the victim after sending the text messages. On Monday, May 29, the defendant’s girlfriend took the victim home, and she disclosed to her mother. The defendant’s DNA was on swabs collected during the victim’s sexual assault examination, and spermatozoa was confirmed on the vaginal/cervical swab collected from the victim. The victim told the jury that this was not the first time that the defendant had abused her, and that the same things that happened on Memorial Day weekend happened to her at the defendant’s house.
This case was investigated by the Metropolitan Police Department.
This case was prosecuted by the Assistant U.S. Attorneys Sarah Folse and Richard Kelley.
Hong Kong-Based Company Agrees to Pay $876,000 to Resolve Alleged False Claims Act ViolationsRead the Press Release
Schaefer Systems International Ltd. (SSI) has agreed to pay $876,000 to resolve alleged False Claims Act violations relating to the payment of a prohibited finder’s fee in connection with the award of an Army and Air Force Exchange Service (AAFES) contract to supply a pallet racking system for a warehouse at a U.S. military base in South Korea. SSI markets and sells warehouse logistics systems and provides related services throughout Asia. SSI disclosed the prohibited payment to the government following an internal compliance review and internal investigation.
The settlement resolves allegations that prior to the award of the AAFES contract in 2018, SSI falsely certified its compliance with a procurement integrity provision limiting the payment of commissions to certain bona fide employees and agencies. Unbeknownst to AAFES, SSI intended to pay a finder’s fee to a South Korean national who had informed SSI of the potential contracting opportunity and helped secure the contract.
“Those who do business with the government must do so fairly and honestly,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will hold accountable contractors that fail to follow procurement rules, but we will also give credit to those who disclose their wrongdoing, take appropriate remedial actions, and meaningfully cooperate with the government’s investigation.”
“Department of Defense contractors have a duty to uphold their contractual obligations and deliver honest value to the American taxpayer,” said Special Agent-in-Charge Stanley A. Newell of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “This civil settlement demonstrates that illicit payment schemes and kickbacks will not be tolerated. The dedicated professionals of DCIS will work tirelessly to hold those who violate the public trust accountable.”
In connection with the settlement, the United States acknowledged that SSI took a number of significant steps entitling them to credit for cooperating with the government. Following an internal compliance review and independent investigation, SSI promptly disclosed to the government the prohibited payment. SSI also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and DCIS.
Fraud Section Senior Trial Counsel Andrew A. Steinberg handled the matter.
The claims resolved by the United States in the settlement are allegations only. There has been no determination of liability.
Honduran National Sentenced to 21 Months in Federal Prison for Facilitating $7.6 Million Payroll Scheme to Defraud the IRS and Workers’ Compensation Insurance CompanyRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Brian J. Davis today sentenced Ana Romero (43, Honduras) to 21 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS). The court also ordered Romero to forfeit $461,850, which are proceeds of the wire fraud offense. In addition, Romero was ordered to pay $1,947,471.18 in restitution to the IRS. Romero entered a guilty plea on November 15, 2024.
According to court documents, between 2018 and 2019, Romero conspired with others to facilitate the payment of construction workers “off the books” to avoid paying premiums for workers’ compensation insurance and payroll taxes. Construction contractors and subcontractors entered into arrangements with the conspirators, through which Universal Florida Construction LLC – a shell company formed by Romero – facilitated both the distribution of proof of insurance and the payment of workers with cash. In exchange for 6% to 8% of the contractors’ and subcontractors’ payroll, Romero and others caused the distribution of certificates of liability insurance in the name of Universal Florida Construction, which contractors and subcontractors then used as nominal proof that workers were supposedly insured. In reality, Universal Florida Construction’s insurance policy was issued based on a fraudulent application that never disclosed that contractors and subcontractors would be employing workers who were ostensibly insured under the shell company’s barebones insurance policy. As a result of contractors and subcontractors using Universal Florida Construction’s proof of insurance, but never paying any insurance premiums, the insurance company was defrauded more than $1.2 million.
Romero and others also facilitated the deposit of checks into the shell company’s bank accounts, as well as the withdrawal of cash to be paid to workers – all without withholding, or paying over, payroll taxes to the IRS. Through these arrangements with the conspirators, the construction contractors and subcontractors could disclaim responsibility for withholding and paying payroll taxes to the IRS or ensuring that the workers were legally authorized to work in the United States. By facilitating payments to workers of over $7.6 million without payroll taxes being withheld, Romero and her co-conspirators caused the U.S. Treasury to lose more than $1.9 million in tax receipts.
One of co-conspirators, Oscar Molina-Avila, was previously sentenced to four years and four months’ imprisonment for his role in the scheme. Co-defendant Jose Molina-Herrera was previously sentenced to two years and three months’ imprisonment.
“Romero and her co-conspirators assisted contractors and work crews in stealing money from the federal government by avoiding paying over employment taxes, which were ultimately used for their personal gain and unfair industry competition,” said Assistant Special Agent in Charge, Richard Nelson, IRS Criminal Investigation, Tampa Field Office. “IRS Criminal Investigation special agents and our law enforcement partners will continue to investigate and refer to the Department of Justice, employers engaging in employment tax fraud. Romero’s sentencing serves as an example of what they can expect when engaging in this illegal activity.”
“Under-the-table cash payroll schemes, especially those designed to pay illegal immigrants not authorized to work in the United States, jeopardizes the integrity of the industry and undermines the legal framework intended to protect workers and ensure fair business practices,” said HSI Jacksonville Assistant Special Agent in Charge Timothy Hemker “HSI, through our strong law enforcement partnerships, is committed to investigating these schemes and bringing to justice those who seek to exploit the system.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services – Bureau of Insurance Fraud. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Honduran National Indicted for Re-Entry of Deported AlienRead the Press Release
NEW ORLEANS, LOUISIANA – ActingUnited States Attorney Michael M. Simpson announced that PEDRO TAILOR CASTILLO-BONILLA (“CASTILLO- BONILLA”), age 42, a native of Honduras, was indicted on July 3, 2025, for re-entry of removed alien, in violation of Title 8, United States Code, Section 1326(a).
According to court documents, CASTILLO-BONILLA, an illegal alien, was found in Jefferson Parish on June 18, 2025. He had previously been removed to Honduras on October 20, 2011, and August 15, 2012.
If convicted, CASTILLO-BONILLA faces a maximum penalty of two years of imprisonment, up to a $250,000 fine, up to one year of supervised release, and a $100 mandatory special assessment fee.
Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven 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).
Acting U.S. Attorney Simpson praised the work of the U.S. Customs and Border Protection in investigating this matter. Special Assistant United States Attorney Frederick W. Veters Jr., of the General Crimes Unit oversees the prosecution.
Honduran Man Charged with Illegal Reentry to the United StatesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on June 26, 2025, a federal grand jury returned an indictment charging Yubert Yasiel Lopez-Lopez, 31, of Honduras, with being found in the United States on February 2, 2025, after having previously been removed from the United States.
Lopez-Lopez entered a plea of not guilty to the charges during an arraignment on June 27, 2025, before United States Magistrate Judge Kevin J. Doyle. Judge Doyle ordered that Lopez-Lopez be detained during the pendency of this matter.
According to court records, Lopez-Lopez, a citizen of Honduras, was previously ordered removed from the United States on two occasions. On December 8, 2014, Lopez-Lopez was removed pursuant to an order issued by an Immigration Judge in Houston, Texas, after he had illegally crossed the U.S./Mexico border near Hidalgo, Texas in May 2014. On June 26, 2018, Lopez-Lopez was removed to Honduras after pleading guilty to illegal entry into the United States and receiving a sentence of time served in the United States District Court for the Southern District of Texas. Pursuant to his order of removal in 2018, Lopez-Lopez was prohibited from entering, attempting to enter, or being in the United States for 20 years thereafter. Lopez-Lopez was additionally expelled from the United States on two occasions in 2022 after illegally crossing the U.S./Mexico border near Yuma, Arizona.
On February 2, 2025, Lopez-Lopez was encountered by a law enforcement officer who recorded Lopez-Lopez’s presence on the officer’s body worn camera. Lopez-Lopez provided his legal name and date of birth that matched his immigration records and indicated that his presence in the United States was illegal. On February 2, 2025, Lopez-Lopez was also wanted by law enforcement in Honduras for weapons trafficking. Lopez-Lopez was taken into custody by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) with the assistance of other law enforcement agencies on June 10, 2025, in North Attleboro, Massachusetts.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Lopez-Lopez is presumed innocent until and unless proven guilty. Lopez-Lopez faces up to 2 years’ imprisonment if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the United States Customs and Border Protection.
The prosecutor is Assistant United States Attorney Jason Turner. Lopez-Lopez is represented by Assistant Federal Public Defender Charles Curlett.
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).
Harrisburg Man Sentenced to 10 Years in Prison for Trafficking MethamphetamineRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Muhammad Adnan, age 21, of Harrisburg, Pennsylvania, was sentenced on July 2, 2025, to 10 years in prison by Senior United States District Judge Malachy E. Mannion for drug trafficking.
According to Acting U.S. Attorney John C. Gurganus, Adnan was indicted with three codefendants for distributing methamphetamine in quantities of 50 grams and more on multiple occasions from November 2023 until February 2024, in Harrisburg. Adnan had previously pleaded guilty to distributing methamphetamine on February 27, 2025.
Codefendants Urias Williams pleaded guilty on February 27, 2025, and is awaiting sentencing; Aaron Pitts is currently scheduled for trial on October 6, 2025; and Aaron Gambino is a fugitive.
The case was investigated by the Federal Bureau of Investigation’s Capital City Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, the Dauphin County Drug Task Force, and the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting 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).
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Harlingen man imprisoned for possession of child sexual abuse materialRead the Press Release
BROWNSVILLE, Texas – A 47 year-old Harlingen man has been sentenced for possession of child pornography, announced U.S. Attorney Nicholas J. Ganjei.
Rico Deangelo Longoria pleaded guilty April 1.
U.S. District Judge Fernando Rodriguez Jr. considered information in several victim impact statements and ordered Longoria to serve 121 months in federal prison. He was further ordered to serve 15 years of supervised release following the completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. He will also be ordered to register as a sex offender. Additionally, he was ordered to pay $60,500 in restitution to the victims of the offense.
During the sentencing, the court emphasized the seriousness of the offense. Judge Rodriguez read excerpts from victim impact statements indicating documented abuse in the material found in Longoria’s possession which highlighted enduring trauma and lifelong consequences inflicted on them. The court noted the mere possession and viewing of such material perpetuates their suffering.
“Viewing or possessing child pornography is not some private, harmless activity,” said Ganjei. “The minor victims are repeatedly traumatized by the dissemination and viewing of the recording of the most horrific moments of their lives. This sentence sends a message that this conduct will be met forcefully in the Southern District of Texas.”
Authorities had discovered a computer associated with a specific IP address in Harlingen engaging in downloading and distributing of child sexual abuse material (CSAM). In February, they executed a federal search warrant of his residence and located a phone hidden inside the water tank of a toilet.
Forensic analysis resulted in the discovery of 337 images and 47 videos of CSAM. The files included images of prepubescent minors engaged in sexually explicit conduct.
Longoria will continue in custody following the sentencing where he will remain pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation.
Assistant U.S. Attorney Ana C. Cano prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
H Block Gang Member Sentenced to over Six Years in Prison for Drug ConspiracyRead the Press Release
BOSTON – A long-time member of the violent Boston-based gang, H-Block, was sentenced today in federal court for drug conspiracy offenses.
Dennis Wilson, a/k/a “Deuce,” 36 of Boston, was sentenced by U.S. District Court Judge Leo T. Sorokin to 77 months in prison, to be followed by three years of supervised release. In April 2025, Wilson pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances.
Wilson was one of 10 H-Block gang members and associates charged in August 2024 following a multi-year investigation that began in 2021 in response to an uptick in gang-related drug trafficking, shootings and violence. According to court documents, over 500 grams of cocaine, cocaine base (crack cocaine) and fentanyl, as well as over 20,000 doses of drug-laced paper were seized during the investigation.
According to the charging documents, the H Block Street Gang is one of the most feared and influential city-wide gangs in Boston. Originally formed in the 1980s as the Humboldt Raiders in the Roxbury section of Boston, the gang re-emerged in the 2000s as H Block. Current members of H Block have a history of violent confrontation with law enforcement, including an incident in 2015 when a member shot a Boston Police officer at point blank range without warning or provocation.
From 2022 through 2023, Wilson participated in a conspiracy to distribute various controlled substances, including fentanyl, powdered cocaine and cocaine base (crack). On numerus occasions, Wilson accompanied a co-conspirator on various drug deals with undercover officers.
United States Attorney Leah B. Foley; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Special Agent in Charge Andrew Murphy of the U.S. Secret Service Boston Field Office; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General; and Boston Police Commissioner Michael Cox made the announcement today. The investigation was supported by the Massachusetts State Police; Massachusetts Department of Corrections; Suffolk County District Attorney’s Office; and the Braintree, Quincy, Randolph and Watertown Police Departments. Assistant United States Attorney John T. Dawley of the Organized Crime & Gang Unit and Jeremy Franker of the Justice Department’s Violent Crime & Racketeering Section are prosecuting the cases.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fundador y promotor de OmegaPro acusado de realizar una estafa global de 650 millones de dólares en cripto inversiones y divisasRead the Press Release
El 8 de julio de 2025, se hizo pública una acusación formal en el Distrito de Puerto Rico que acusa a dos hombres por su presunto rol en la operación y promoción de OmegaPro, un esquema de inversión internacional que defraudó a los inversionistas víctimas por más de 650 millones de dólares.
Según documentos judiciales, Michael Shannon Sims, de 48 años, de Georgia y Florida, fue fundador, consultor estratégico y promotor de OmegaPro; y Juan Carlos Reynoso, de 57 años, de Nueva Jersey y Florida, dirigió las operaciones de OmegaPro en América Latina y partes de los Estados Unidos y Puerto Rico.
“Como se alega, los acusados se aprovecharon de personas vulnerables en los Estados Unidos y en el extranjero, estafándoles por más de 650 millones de dólares con falsas promesas de ganancias sustanciales y de que su dinero estaba seguro”, declaró Matthew R. Galeotti, jefe de la División Penal del Departamento de Justicia Federal. “La División Penal se compromete a procesar a estos malhechores y a buscar justicia para sus numerosas víctimas. Gracias a la dedicación de nuestros socios, tanto de agencias como de organismos internacionales, encabezamos los esfuerzos para combatir estas complejas e insidiosas estafas de inversionistas en activos digitales”.
“Como se alega en la acusación formal, los acusados operaron un esquema de fraude global a través de OmegaPro, engañando a los inversionistas con falsas promesas de ganancias extraordinarias, solo para malversar cientos de millones de los fondos de las víctimas”, declaró el fiscal federal W. Stephen Muldrow para el Distrito de Puerto Rico. “Seguimos comprometidos con el desmantelamiento de los esquemas financieros internacionales que se dirigen a las víctimas estadounidenses, incluso aquí en Puerto Rico, y con la recuperación de las ganancias ilícitas mediante el enjuiciamiento penal y el decomiso de bienes”.
“El FBI no se quedará de brazos cruzados mientras el público estadounidense es defraudado”, declaró el subdirector Joe Perez, de la División de Investigación Criminal del FBI. “Mediante la coordinación con nuestros socios, estas personas tendrán que defender sus acciones ante un tribunal”.
“Este caso expone la despiadada realidad de los delitos financieros modernos”, declaró Guy Ficco jefe de la División de Investigación Criminal del IRS (IRS-CI). “OmegaPro prometió libertad financiera, pero trajo la ruina financiera: robó más de 650 millones de dólares a personas comunes y los desvaneció en moneda virtual. No se trataba de simples estafas; eran traiciones minuciosamente planificadas. Nuestra labor es defender a quienes han sido explotados y continuar la colaboración interinstitucional hasta que los responsables sean llevados ante la justicia”.
“Este caso pone de relieve el rol crucial que desempeñan las alianzas internacionales para desmantelar las redes transnacionales de fraude financiero que explotan los mercados globales y victimizan a inversionistas desprevenidos”, declaró Ricardo Mayoral, subdirector de Operaciones Internacionales de la División de Investigaciones de Seguridad Nacional del Servicio de Inmigración y Control de Aduanas de EE. UU. (HSI por sus siglas en inglés). “HSI mantiene su compromiso de colaborar con sus socios en todo el mundo para desmantelar las redes criminales que utilizan tecnologías emergentes para ocultar ganancias ilícitas y defraudar al público”.
Sims y sus cómplices fundaron OmegaPro alrededor de enero de 2019, y Reynoso se unió unos meses después, alrededor de abril de 2019. Según se alega, los acusados y otros operaban y promocionaban OmegaPro como un esquema de marketing multinivel (MLM) para que los inversionistas adquirieran “paquetes de inversión”, que los acusados y otros prometieron falsamente que generaría rendimientos del 300% en 16 meses mediante la compraventa de divisas (forex) por parte de operadores de élite. Se instruía a los inversionistas a comprar estos paquetes de inversión utilizando moneda virtual.
Según documentos judiciales, Sims presuntamente engañó a las víctimas al asegurar el rendimiento comercial de OmegaPro y la habilidad de los operadores contratados, y al anunciar falsamente la seguridad de invertir en OmegaPro. Reynoso presuntamente declaró falsa y engañosamente que OmegaPro operaba con una licencia legítima y, en otras ocasiones, que OmegaPro no estaba sujeto a las leyes de ningún país. La acusación formal alega que Sims y Reynoso, junto con sus cómplices, organizaron ostentosos eventos promocionales y capacitaciones de OmegaPro en todo el mundo, incluyendo, por ejemplo, la proyección del logotipo de OmegaPro sobre el Burj Khalifa, el edificio más alto del mundo, en un evento en Dubái. El objetivo de estos eventos promocionales supuestamente era convencer a los inversionistas actuales y potenciales de que OmegaPro era una empresa legítima que ofrecía un camino hacia la riqueza y un estilo de vida lujoso.
Además, Sims, Reynoso y sus cómplices usaron las redes sociales para promocionar sus costosas vacaciones y autos, así como su ropa y relojes de diseñador. La acusación formal alega que, mediante declaraciones falsas de los acusados y otros, OmegaPro recaudó más de 650 millones de dólares en moneda virtual de miles de inversionistas. Después de que OmegaPro anunciara que había sufrido un ataque informático, Reynoso y otros informaron a las víctimas alrededor de enero de 2023 que sus inversiones estaban seguras y que OmegaPro las estaba transfiriendo a otra plataforma llamada Broker Group. A pesar de estas declaraciones, las víctimas no pudieron retirar dinero ni de sus cuentas de OmegaPro ni de las de Broker Group, lo que les causó pérdidas millonarias.
Los más de 650 millones de dólares recaudados de las víctimas supuestamente se enviaron primero a direcciones de monederos virtuales controlados por ejecutivos de OmegaPro y luego se transfirieron supuestamente a miembros de OmegaPro y promotores de alto rango para distribuir los fondos y ocultar su origen. Según se alega, Sims y Reynoso se beneficiaron millonariamente de este esquema.
Ambos acusados están acusados de un cargo de conspiración para cometer fraude electrónico y un cargo de conspiración para lavado de dinero. De ser declarados culpables, Sims y Reynoso enfrentan una pena máxima de 20 años en prisión cada uno por cada cargo.
El FBI, el IRS-CI y HSI Nueva York están investigando el caso, con la asistencia de la Unidad de Activos Virtuales del FBI, HSI Bangkok, HSI Bogotá, HSI Frankfurt, HSI Estambul, HSI Londres, HSI Miami, HSI Nueva Delhi, HSI La Haya, la Fiscalía General de la Nación de Colombia y los Jefes Conjuntos de Ejecución Fiscal Global (J5), una alianza entre la Oficina Australiana de Impuestos, la Agencia de Ingresos de Canadá, el Servicio de Información e Investigación Fiscal de los Países Bajos, la Oficina de Ingresos y Aduanas de Su Majestad del Reino Unido y el IRS-CI.
Los fiscales Ariel Glasner y Tamara Livshiz de la Sección de Fraude de la División Penal y el fiscal federal adjunto Jonathan Gottfried para el Distrito de Puerto Rico y destacado en la Sección de Delitos Informáticos y Propiedad Intelectual están procesando el caso.
Si cree que fue potencialmente víctima de OmegaPro o tiene información relevante para esta investigación, visite el sitio web de Víctimas y Testigos del FBI en forms.fbi.gov/victims/omegaprovictims o comuníquese con [email protected] .
Una acusación formal es simplemente una alegación. Todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de toda duda razonable ante un tribunal.
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Four Defendants Charged with Assaulting Federal Law Enforcement Officers, Other Offenses During Protests Near Local ICE OfficeRead the Press Release
PORTLAND, Ore.—Four defendants made their first appearances in federal court today after committing various offenses—including assaulting federal officers and possessing a destructive device—during ongoing protest gatherings near a U.S. Immigration and Customs Enforcement (ICE) office in South Portland.
Riley Freeman, 26, of Portland, has been charged by criminal complaint with the felony offenses of assaulting a federal officer with a deadly or dangerous weapon and possession of an unregistered destructive device.
Andrew Marcum, 22, of Portland, has been charged by criminal complaint with the felony offense of assaulting a federal officer.
Jeremy Hummel, 27, of Portland, has been charged by criminal complaint with the misdemeanor offense of depredation of government property.
Ian Joseph McCarthy, 35, of Portland, has been charged by criminal complaint with the felony offenses of assaulting a federal officer and depredation of government property.
According to court documents and information shared in court, on July 4, 2025, several individuals gathered near an ICE office in South Portland where, for weeks, individuals have repeatedly targeted the building and federal law enforcement officers with threatening statements, discharging pepper spray, and throwing rocks, trash, and bricks.
At approximately 8:00pm, federal officers observed an individual defacing the ICE building guard shack with graffiti. As an officer began to pursue the individual, Marcum ran toward the officer and kicked the officer in the leg, causing the officer to trip.
At approximately 8:41pm, officers observed another individual, later identified as Hummel, defacing the ICE building with black spray paint.
At approximately 11:16pm, as federal officers cleared a group of people off federal property, Freeman threw an incendiary device towards the officers that detonated near them. Freeman attempted to flee but officers pursued him and Freeman was arrested.
The same evening, federal officers observed McCarthy using bolt cutters to attempt to damage a proximity card reader near the vehicle entrance of the building. McCarthy had also been observed removing and damaging the fiber optic cable system to the ICE building, interrupting internet and communication service for the building. While being placed under arrest, McCarthy kicked and punched several officers assisting in the arrest.
All four defendants made their first appearances in federal court Monday before a U.S. Magistrate Judge. They were released on conditions pending future court proceedings.
Felony assault of a federal officer is punishable by up to eight years in federal prison, and assault of a federal officer with a deadly or dangerous weapon is punishable by up to 20 years in federal prison. Felony possession of an unregistered destructive device and depredation of government property over $1,000 are punishable by up to 10 years in federal prison. Depredation of government property under $1,000 is a class A misdemeanor and is punishable by up to one year in prison.
These cases are being investigated by the Federal Protective Service (FPS) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). They are being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Since June 13, 2025, the U.S. Attorney’s Office has charged 22 defendants with offenses committed at the ICE building including assaulting federal officers, arson, possession of a destructive device, and depredation of government property.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Fort Myers Man Sentenced to 10 Years in Federal Prison for Robbing Convenience Stores at GunpointRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Kevoun Najae Watts (22, Fort Myers) to 10 years in federal prison for Hobbs Act robbery and brandishing a firearm during and in relation to a crime of violence. The court also ordered Watts to forfeit the firearm and ammunition used in the offenses. Watts pleaded guilty on February 26, 2025.
According to court documents, Watts admitted to robbing a gas station and a convenience store at gunpoint on July 31, 2024, in Fort Myers.
This case was investigated by the Lee County Sheriff’s Office, the Fort Myers Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark Morgan.
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.
Plea AgreementFormer Loan Officer Charged and Agrees to Plead Guilty to Million-Dollar Heloc SchemeRead the Press Release
BOSTON – A former loan officer was charged and has agreed to plead guilty in connection with defrauding his employer out of almost $1 million.
Brian Socha, 45, of Brookfield, has agreed to plead guilty to one count of bank fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging document, Socha hacked into co-workers’ computers on over 20 occasions to covertly raise the credit limit and lower the interest rate on the home equity line of credit (HELOC) on the home he owned with his wife. Over a period of six years, Socha allegedly increased the HELOC credit limit from $135,500 to $995,000 and adjusted the HELOC interest rate from 7.25% to 1.99%.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement. Assistant U.S. Attorney Caroline Merck of the Springfield Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Chief Operating Officer of Pain Care Centers SentencedRead the Press Release
ROANOKE, Va. –The former chief operating officer and practice manager of several southwest Virginia pain clinics was sentenced yesterday to 36 months in federal prison for her role in healthcare fraud and drug conspiracies at the clinics.
Jennifer Adams, 52, of Mount Pleasant, South Carolina, served as the Chief Operating Officer of L5 Medical Holdings, a company doing business under the name “Pain Care Centers” that operated clinics in Woodlawn, Lynchburg, Madison Heights, Blacksburg, and Christiansburg.
In November 2024, Adams pled guilty to helping conceal illegal prescribing and healthcare fraud at the clinics.
According to court documents, in 2014, despite having no medical training, a former mortgage broker and L5 Medical’s owner, John Barnes, purchased and operated Pain Care Center clinics. Among other things, providers at the practice prescribed opioids and opioid addiction treatment medications, including Suboxone. Adams, who also lacked medical training, helped Barnes run the clinics.
As part of her plea, Adams admitted to encouraging medical providers with L5 to follow the opinion of non-medical professionals in making medical decisions, including whether a patient should be treated for opioid addiction or for pain management, whether a patient should receive a prescription, and what type of drug should be prescribed.
Adams also admitted to knowing that one practitioner, Dr. Wendell Randall, was not providing medically legitimate care to patients. Court records show that L5 employees described Dr. Randall as a “quack” and “train wreck,” explained his files did not “justify continuing the medication” he prescribed to patients and questioned if “anyone check[ed] to see if he was real doctor.”
Adams acknowledged she knew L5 illegally used the prescribing credentials of some doctors – known as registration numbers – to prescribe Suboxone, a Schedule III drug used to treat patients with opioid addiction, even when the doctors had not seen the patients who received the prescriptions. Additionally, Adams helped implement drug testing policies at the clinics that improperly inflated bills to medical insurers.
Acting United States Attorney Zachary T. Lee, Special Agent in Charge Ibrar A. Mian of DEA Washington Division, Special Agent in Charge Maureen R. Dixon of U.S. Department of Health and Human Services Office of the Inspector General’s Philadelphia Region, Colonel Matthew D. Hanley, Superintendent of the Virginia State Police, and Virginia Attorney General Jason Miyares made the announcement today.
The Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of the Inspector General, the Virginia State Police, and the Virginia Attorney General’s Office - Medicaid Fraud Control Unit investigated the case.
Assistant U.S. Attorneys S. Cagle Juhan and Jason M. Scheff prosecuted the case.
Final Defendant Sentenced in National Methamphetamine & Cocaine Trafficking ConspiracyRead the Press Release
GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Alexis M. Sanford today announced that United States District Judge Jane M. Beckering sentenced Merria Wallace, 42, a resident of West Park, Florida with significant ties to Lansing, Michigan, to serve 120 months in prison for her role in a multi-state drug trafficking conspiracy. During sentencing, Judge Beckering characterized Wallace as a facilitator for a major drug trafficking organization, finding that she “was a really important part of this operation” – an operation responsible for distributing significant quantities of methamphetamine and cocaine throughout Michigan. Wallace is the final defendant to be sentenced in the case.
Wallace was the logistics manager for a conspiracy designed to import methamphetamine and cocaine to Michigan for sale. In her role, Wallace tracked packages containing approximately ten kilograms of methamphetamine sent to Michigan from California. She also booked flights for co-conspirators to fly thousands of dollars in drug proceeds to California and then return to Michigan with drugs, including cocaine. On multiple occasions, Wallace even traveled herself, transporting drug money on behalf of one of the conspiracy’s leaders, Jason Demyers. Overall, the organization distributed kilograms of cocaine and methamphetamine in and around Detroit, Lansing, and Kalamazoo between August 2022 and July 2024.
“The sentences in this case are significant and effectively hampered this transnational drug trafficking organization, which spanned multiple states, including Michigan, Florida, Arizona and California,” said Acting U.S. Attorney Alexis Sanford. “Our office is committed to combatting these organizations, including sources of supply from other states or countries who are responsible for distributing significant quantities of drugs into our West Michigan communities. We will continue to work with our federal, state, and local law enforcement partners to make our communities safer for everyone.”
During the investigation, law enforcement seized approximately ten kilograms of methamphetamine, eight kilograms of cocaine, multiple pieces of real property used to facilitate the drug trafficking conspiracy, and jewelry valued at approximately $325,000 that constituted proceeds of the drug trafficking conspiracy.
In total, the United States charged fourteen defendants as part of the organization. Twelve of the defendants have pleaded guilty, while two have entered a pretrial diversion program. The Court has imposed the following prison sentences on the convicted defendants:
Name
Residence
Age
Sentence
Jason DemyersLansing, Michigan
Phoenix, Arizona
44324 monthsFranchot BarnesSouthern California47324 monthsJomo GradyKalamazoo, Michigan51210 monthsEvette WallaceKalamazoo, Michigan36110 monthsMark WilliamsSouthfield, Michigan54105 monthsJamar GoinsLansing, Michigan4578 monthsFranchot MeadowsBloomfield, Michigan2275 monthsIvan WilliamsSouthfield, Michigan3563 monthsLanise MoodyLansing, Michigan4240 monthsJonathan ConnerLansing, Michigan4337 monthsShirley StarksLansing, Michigan412 years of probationThe Drug Enforcement Administration (DEA) and the Lansing Police Department (LPD) began the investigation into Demyers’ drug trafficking organization in October 2022, in partnership with Internal Revenue Service Criminal Investigation (IRS-CI) and the Kalamazoo County Sheriff’s Office.
“The results of this investigation highlight the relentless work the Drug Enforcement Administration and our state and local partners do daily to keep our communities safe, said DEA Acting Special Agent in Charge Andrew P. Lawton. “With the assistance of the Lansing Police Department and the Michigan State Police, we have succeeded in holding those accountable for flooding our backyards with drugs and weapons. We will continue to prioritize the Mission of the Drug Enforcement Administration and bring those responsible for these crimes to justice. These severe sentences show that narcotics trafficking has grave consequences and should serve as a warning to the cartels and drug gangs alike.”
This prosecution, dubbed Operation Cold as Ice, was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Stephanie M. Carowan and Austin J. Hakes prosecuted the case on behalf of the United States.
Felon who Conspired to Distribute Drugs and Possessed Firearms Sentenced to over Twenty-Five Years in Federal PrisonRead the Press Release
A Cedar Rapids man who conspired to distribute controlled substance was sentenced July 7, 2025, to more than 25 years in federal prison.
James Colquhoun, age 40, from Cedar Rapids, Iowa, received the prison term after a February 10, 2025, guilty plea to conspiracy to distribute a controlled substance after a prior conviction for a serious drug felony, carrying of a firearm during and in relation to a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime.
Evidence at the plea and sentencing hearings showed that between January 2024 and February 13, 2024, Colquhoun knowingly conspired with others to distribute significant quantities of methamphetamine in the Cedar Rapids area. On February 13, 2024, officers stopped Colquhoun’s vehicle and searched it. During the search, officers located over 500 grams of methamphetamine, heroin, cocaine, over $25,000, and a firearm. Colquhoun knowingly possessed those controlled substances with the intent to distribute them. After the traffic stop, officers searched Colquhoun’s hotel room where he resided. During the search of his hotel room, investigators located over 600 grams of heroin, over 50 grams of methamphetamine, and another firearm. In 2014, Colquhoun was convicted in the United States District Court for the Northern District of Iowa of distribution of a controlled substance and possession of a firearm in furtherance of a drug trafficking crime and carrying a firearm during and relation to a drug trafficking crime.
Colquhoun was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Colquhoun was sentenced to 336 months’ imprisonment. He must also serve a 10-year term of supervised release after the prison term. There is no parole in the federal system.
Colquhoun is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and Special Assistant United States Attorney Michael Hudson, and it was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigations, the Cedar Rapids Police Department, and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-00029-001.
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Federal Grand Jury Indicts 4 in Sex Trafficking RingRead the Press Release
CHARLESTON, S.C. — A federal grand jury in Columbia returned a 15-count indictment against four individuals from the Charleston area in connection with sex trafficking. The charges stem from an investigation by Homeland Security Investigations and the Charleston Police Department that uncovered sex trafficking, money laundering, conspiracy offenses, and related charges.
The individuals charged include:
- Johnathan Dais, 33, of Charleston, for conspiracy to commit sex trafficking; sex trafficking by force, fraud or coercion; attempted sex trafficking of a child; use of a facility of interstate commerce to promote an unlawful activity; false statements; conspiracy to commit money laundering; and money laundering.
- Calvin Wolfe, 54, of Charleston, for conspiracy to commit sex trafficking and sex trafficking by force, fraud, or coercion.
- Rose Stoner a/k/a Rose Wolfe, 50, of Charleston, for conspiracy to commit sex trafficking and sex trafficking by force, fraud, or coercion.
- Alexis McInnis, 20, of Charleston, for use of a facility of interstate commerce to promote an unlawful activity; false statements; and conspiracy to commit money laundering.
The indictment alleges that between 2016 and 2025, Dais, and at times his co-conspirators, Wolfe and Stoner a/k/a Wolfe, recruited, enticed, harbored, transported, and sex trafficked at least five victims by force, fraud, or coercion, including one minor victim. The indictment also alleges Dais and McInnis used facilities of interstate commerce to promote prostitution activity, and that they each made false statements to law enforcement during the investigation. Dais and McInnis are also charged with laundering the funds derived from such unlawful activities.
Sex trafficking carries a maximum penalty of life in prison and money laundering carries a maximum penalty of 20 years in prison.
Johnathan Dais, Calvin Wolfe, and Rose Stoner a/k/a Wolfe are currently detained pending trial, and Alexis McInnis was granted a $5,000 unsecured bond on July 7 by the Honorable Molly Cherry.
Authorities with Homeland Security Investigations and the Charleston Police Department are seeking information that may help identify additional victims exploited by these individuals. If you, or someone you know, was a victim, please provide a name and contact information to the following email address, with subject line referencing Johnathan Dais: [email protected].
The case was investigated by Homeland Security Investigations and the Charleston Police Department. Assistant U.S. Attorney Katherine Orville is prosecuting the case.
All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Fairbanks man sentenced to 22 years for distributing fentanyl resulting in a fatal overdoseRead the Press Release
ANCHORAGE, Alaska – A Fairbanks man was sentenced today to 22 years in prison and, upon release, will serve five years on supervised release for distributing fentanyl that resulted in the overdose death of a local man in 2022.
According to court documents, beginning in May 2022 and continuing to July 2022, Edward Ginnis, 39, agreed with co-conspirators to distribute and possess with the intent to distribute controlled substances in the Fairbanks area. Specifically, Ginnis distributed controlled substances to a co-conspirator, who then sold the substances to others. Ginnis’ actions were a small part of a larger drug trafficking enterprise allegedly being directed by an inmate in a California prison.
On June 7, 2022, Ginnis sent an overnight package containing money to a co-conspirator in California, paying in advance for a shipment of drugs intended for a co-conspirator in Fairbanks. On June 11, a package arrived for the co-conspirator in Fairbanks. Ginnis and the alleged leader of the enterprise had orchestrated this shipment. Drug ledgers found in the alleged leader’s prison cell indicate that the shipment contained “chocolate,” which was a term that members of the enterprise used for heroin. The alleged leader also arranged to have additional packages containing heroin sent to Alaska, and Ginnis received more packages on June 16 and 21, 2022.
Later in the day on June 11, 2022, Ginnis sent text messages to several distributors asking if they had potential purchasers. One of the distributors, the co-defendant in this case, allegedly offered to help sell drugs. On June 25, Adam Sakkinen, 32, an individual who struggled with heroin usage, messaged the co-defendant asking to purchase drugs. Around noon, the co-defendant allegedly agreed to sell drugs to Sakkinen and he sent the co-defendant $50.00 before messaging that he was on his way.
Later, at 12:58 p.m. that same day, local fire and emergency medical services responded to a single car accident on the side of a road in Badger. First responders found Sakkinen unconscious behind the wheel of a car with drug paraphernalia in his hands and near him. Law enforcement officials tested the paraphernalia, and it tested positive for fentanyl.
First responders administered six doses of Narcan to Sakkinen and he regained a pulse. Sakkinen was transported to two hospitals and was put on life support at a hospital in Anchorage. Sakkinen spent 11 days in the intensive care unit before he passed away. A sample of Sakkinen’s blood was sent for testing and lab results found that he had 20 nanograms per milliliter of fentanyl in his bloodstream at the time of his death. Reports show that the average lethal level of fentanyl in the bloodstream is eight nanograms per milliliter.
On July 14, 2022, Ginnis was arrested in Fairbanks based on a violation of his state probation. He was in possession of fentanyl that he intended to distribute to others in furtherance of the drug trafficking conspiracy. He also possessed over $13,000 in cash.
On Jan. 18, 2025, Ginnis and a co-defendant were indicted on federal drug trafficking charges. On April 3, 2025, Ginnis pleaded guilty to one count of conspiracy to distribute controlled substance resulting in death. His co-defendant is awaiting trial.
“The U.S. Attorney’s Office thanks the law enforcement agencies that came together to investigate this crime and help bring justice to the family of the victim,” said Acting U.S. Attorney William Narus for the District of Oregon.
“Fentanyl traffickers choose profit over people when they sell drugs that lead to addiction and death,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “This sentence holds Mr. Ginnis accountable for this choice and sends a clear message that the DEA and our partners will bring to justice those who seek to poison and destroy our communities.”
“The Alaska State Troopers are committed to working with our federal and local partners to bring dangerous drug traffickers to justice,” said Colonel Maurice Hughes, Director of the Alaska State Troopers. “Drug dealers have no place in our great state. This sentencing sends a clear message: if you traffic dangerous drugs in Alaska, law enforcement will find you, and you will face serious consequences for your actions.”
The U.S. Attorney’s Office for the District of Alaska has been recused from this case with the exception of certain personnel. Assistant U.S. Attorney Steven D. Clymer from the U.S. Attorney’s Office for the Northern District of New York has been appointed as Special Attorney to the United States Attorney General to assist with this and other recused cases. He reports to and acts under the direction of the Deputy Attorney General, or his delegee, or Acting U.S. Attorney Narus in these cases. Special Attorney Clymer supervises personnel from the District of Alaska who have been exempted from the recusal.
The Drug Enforcement Administration Seattle Field Division and Anchorage District Office, Alaska State Troopers, North Slope Borough Police Department, North Pole Police Department and Fairbanks Police Department investigated the case.
Assistant U.S. Attorneys Stephan Collins, Chris Schroeder and Alana Weber are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
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Fort Walton Beach Woman Pleads Guilty to $200k Theft of Government BenefitsRead the Press Release
PENSACOLA, FLORIDA – Rhonda Lynn Lopez, 59, of Fort Walton Beach, Florida, pleaded guilty in federal court to theft of government property. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
United States Attorney Heekin said: “By falsely claiming benefits she knew she had no right to receive, the defendant stole resources that were intended for those truly in need. I appreciate the hard work of our law enforcement partners to identify, investigate, and stop this criminal, and I want to make clear that my office will continue to aggressively prosecute anyone who defrauds the government.”
Court documents reflect that in Lopez provided false information to the Social Security Administration (SSA) during her benefit reviews. Based on the information learned during the investigation regarding her assets and finances, SSA determined Lopez was not entitled to Supplemental Security Income payments beginning on or about May 28, 1998. As a result, she stole more than $206,000 from the United States Government.
Lopez faces up to 10 years imprisonment, three years of supervised release, and a fine of up to $250,000.
The plea was the result of an investigation by the Social Security Administration’s Office of the Inspector General. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
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.
El Salvadoran with prior sex offense pleads guilty to illegally reentering United StatesRead the Press Release
COLUMBUS, Ohio – An illegal alien from El Salvador pleaded guilty in U.S. District Court today to illegally reentering the United States after being convicted of a felony.
Adiel Hernandez-Orellana, 39, was previously convicted in Arkansas of sexual assault.
In 2003, Hernandez-Orellana was arrested for unlawfully entering the United States. In 2004, he was ordered removed from the United States after failing to appear for an immigration court hearing. In 2010, he was convicted of sexual assault in Sebastian County, Arkansas, and sentenced to seven years in prison. Following his prison sentence, he was removed from the United States.
In March 2025, the defendant was detained at the Delaware County jail in Ohio for outstanding traffic warrants. He was then processed for the instant immigration offense of illegally reentering the United States after being convicted of a felony.
Illegally reentering the United States is a federal crime punishable by up to two years in prison. If the offender has a prior felony conviction (or multiple prior misdemeanor convictions of certain types), the penalty is increased to up to 10 years in prison, and if the offender has been previously convicted of an aggravated felony, the defendant faces up to 20 years in prison. Transporting illegal aliens is punishable by up to 10 years in prison. Possessing a firearm as an illegal alien is a federal crime punishable by up to 15 years in prison.
Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Jared Murphey, acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit; and Kevin Raycraft, Acting Field Office Director, ICE Enforcement and Removal Operations (ERO) Detroit Field Office; announced the guilty plea entered today before Chief U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
This case was investigated and prosecuted by the Southern District of Ohio Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Dunklin County Man Sentenced to 128 Months in Prison for Methamphetamine SalesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man who sold methamphetamine twice in 2023 to 128 months in prison.
Clayton E. Barnes, 53, of Kennett, pleaded guilty in U.S. District Court in Cape Girardeau in April to two counts of distribution of methamphetamine. He admitted selling 54.4 grams of meth for $600 on Aug. 17, 2023, to a confidential informant and a Missouri State Highway Patrol corporal in the parking lot of a Kennett store. Six days later, the corporal returned to the market and bought 102.62 grams of meth from Barnes for $1,300.
Barnes qualified as a career offender, having prior convictions that include a 2009 conviction for selling 8 grams of cocaine base and a 2020 conviction for selling 14 grams of meth.
The Southeast Missouri Drug Task Force investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.
Doc Antle, Owner of Myrtle Beach Safari, Sentenced for Federal Wildlife Trafficking and Money Laundering ChargesRead the Press Release
Bhagavan “Doc” Antle, of Myrtle Beach, South Carolina — who was featured in a popular Netflix documentary — was sentenced today to 12 months in prison after pleading guilty to a conspiracy to violate the Lacey Act and launder more than $500,000 for what he believed to be an operation to smuggle illegal immigrants into the United States across the Mexico border. Antle was also ordered to pay a $55,000 fine, serve three years of supervised release, and forfeit three chimpanzees and more than $197,000 to the government.
Two of Antle’s co-defendants were recently sentenced for their separate involvement in either the Lacey Act or money laundering conspiracy. A defendant in a related case recently pleaded guilty to illegally selling a newborn chimpanzee to Antle.
“Today’s sentence holds Doc Antle and his co-defendants accountable for activity they knew was unlawful and unethical,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “They illegally purchased and sold newborn endangered wildlife even as they laundered more than $500,000 in smuggling money — all while promoting themselves as conservationists.”
“Doc Antle portrayed himself as a conservationist. But in reality, he was a key player in the illegal chimpanzee trade, and he laundered more than half a million dollars through a complex web of deceit,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “We are grateful to our law enforcement partners for their work in bringing the defendant to justice for both of these federal crimes.”
“These sentences should send a clear message: the FBI and our partners will not tolerate those who attempt to violate our laws,” said Special Agent in Charge Kevin Moore of the FBI Columbia Field Office. “We remain firmly committed to investigating and holding accountable individuals whose illegal actions threaten our financial systems and put protected species at risk.”
“This case underscores the grave criminal threat posed by wildlife traffickers who not only exploit vulnerable species for profit but also use sophisticated money laundering tactics to conceal their crimes,” said Assistant Director Douglas Ault of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “Our special agents uncovered a complex network of illicit activity involving the trafficking of endangered animals — including baby chimpanzees and cheetahs — falsified documentation, and the laundering of hundreds of thousands of dollars through purported nonprofit organizations. These traffickers operated under the false pretense of conservation, betraying both the law and public trust. We remain unwavering in our commitment to dismantling such networks and bringing those responsible to justice.”
The wildlife conspiracy outlined various schemes Antle used to hide his illegal trafficking in endangered species, including requiring payments to be “donations” funneled through his non-profit, The Rare Species Fund; conducting transactions in bulk cash to hide their true nature; and creating false paperwork to hide the illegality of his wildlife transactions. The animals trafficked included baby chimpanzees, cheetahs, lions, and tigers, all of which are protected under both the Endangered Species Act and international treaties. The Lacey Act prohibits trafficking of illegally taken wildlife, fish or plants, including animals protected under the Endangered Species Act.
Antle’s co-defendant in the wildlife conspiracy, Jason Clay, was recently sentenced to four months in prison, four months home confinement, and to pay a $4,000 fine into the Lacey Act Reward Fund. In 2019, Clay illegally sold a juvenile chimpanzee to Antle in exchange for $200,000 in cash and a juvenile gibbon.
As for the money laundering conspiracy, Antle and a co-defendant laundered more than $500,000 in cash between February and April 2022 that were represented to be proceeds from an operation to smuggle illegal immigrants across the Mexican border into the United States. Evidence presented to the court showed that Antle planned to conceal the cash he received by writing checks for what appeared to be construction-related services for Myrtle Beach Safari, which he owned and operated, and which was featured in the Netflix documentary. The Myrtle Beach Safari is a 50-acre for-profit zoo that offers tours and private encounters with exotic wildlife.
Antle’s co-defendant in the money laundering conspiracy, Andrew Sawyer, was recently sentenced to serve two years of probation including eight months of home detention. He also forfeited nearly $185,000 to the government and a chimpanzee.
In a different Lacey Act violation case connected to Antle, Shaylynn Kolwyck-Peterson pleaded guilty last month to illegally selling a chimpanzee to Antle in 2022 for $200,000. The Kolwyck family owns and manages the private Sunshine Zoological Preserve LLC in north Florida. The facility is believed to be the only one in the United States breeding chimpanzees for private or non-scientific purposes.
The FBI and the U.S. Fish and Wildlife Service investigated the case.
Senior Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Amy Bower for the District of South Carolina prosecuted the case.
Detroit Man Pleads Guilty to Concealing His Cryptocurrency Donations to ISISRead the Press Release
DETROIT – Jibreel Pratt, 26, of Detroit, Michigan, pleaded guilty today to two counts of concealing cryptocurrency donations he intended to make to the Islamic State of Iraq and Al-Sham (ISIS), a designated foreign terrorist organization, announced United States Attorney Jerome F. Gorgon, Jr.
Gorgon was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan.
According to the plea agreement, in February 2023, Pratt initiated a conversation with a Confidential Human Source (CHS) who Pratt believed was an ISIS member who could facilitate overseas travel to join ISIS. Over the next several months, Pratt communicated his desire to travel overseas to join ISIS and recorded a video pledging allegiance to ISIS’s leader. Pratt also provided ideas, information, documents and handwritten notes on a variety of subjects, including how ISIS could use drones and remote-controlled cars to deliver explosives, how ISIS could organize intelligence operations, and how ISIS could improve its air defense systems. And, in March and May 2023, Pratt sent cryptocurrency (Bitcoin) to the CHS, intending that the money would be used to help pay for the travel of other individuals who were purportedly traveling to join ISIS and/or to help fund an individual who Pratt believed would commit an act of violence in support of ISIS. Pratt concealed the nature and source of his Bitcoin transfers by using a privacy focused VPN and an app that encrypted private keys and transaction data.
“Jibreel Pratt has many talents. And he swore a binding oath to use them to help ISIS—a genocidal anti-American terrorist organization,” said U.S. Attorney Gorgon. “Pratt meticulously plotted to support ISIS and covertly sent them money to further their evil works. We will find the terrorists operating in our shadows and bring them to justice.”
"Today’s guilty plea by Jibreel Pratt underscores the serious threat posed by individuals who attempt to support foreign terrorist organizations known for violence and human rights abuses,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “The FBI remains unwavering in its commitment to protecting the American people from those who seek to carry out or orchestrate acts of terrorism. This outcome reflects the strength of our partnerships with law enforcement and intelligence agencies, as well as the dedication of our Joint Terrorism Task Force. The FBI in Michigan will continue working relentlessly to disrupt any plot that threatens the security of our nation.”
Sentencing is scheduled for November 13, 2025. A conviction for concealing the financing of terrorism carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. The parties agreed that a 9-year sentence is an appropriate resolution of the matter.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Douglas Salzenstein and Jennifer Burke, Trial Attorney, National Security Division, U.S. Department of Justice are prosecuting the case on behalf of the United States.
Convicted Felon with 17 Firearms Pleads GuiltyRead the Press Release
Orlando, Florida – United States Attorney Gregory W. Kehoe announces that Latchman Singh (31, Orlando) today pleaded guilty to possession of a firearm by a convicted felon. Singh faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for September 25, 2025.
According to court documents, deputies from the Orange County Sheriff’s Office were executing a search warrant at Singh’s residence in connection with state auto theft charges when they discover that Singh, a previously convicted felon, had 17 firearms in his closet, bedroom and kitchen:
At least two of the firearms were stolen, one firearm did not have a serial number, and one of the firearms had a silencer attached to it. As a previously convicted felon, Singh is prohibited from possessing firearms or ammunition under federal law.
Singh has agreed to forfeit the firearms and ammunition, which were involved in the offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
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.
Connecticut Man Sentenced to 69 Months in Fentanyl Distribution CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on June 26, 2025, Alexander Marcano, 33, of Hartford, Connecticut, was sentenced by Chief United States District Judge Christina Reiss to a term of 69 months’ imprisonment to be followed by a 5-year term of supervised release. Marcano previously pleaded guilty to possession with intent to distribute more than 40 grams of fentanyl on December 9, 2024.
According to court records, in the early hours of January 30, 2023, U.S. Border Patrol Agents patrolling in the area of North Troy, Vermont, approximately one-half mile from the U.S./Canada border, encountered a vehicle driving erratically and pulled it over. Marcano was the front-seat passenger of the vehicle. Border Patrol agents learned that Marcano had an extraditable warrant from Connecticut for a shooting, for which Marcano was later convicted of Assault 1st Degree – Serious Physical Injury. At the time of the traffic stop, Marcano was found to be in possession of more than 98 grams of fentanyl, over 41 grams of cocaine base, over 75 grams of cocaine powder, a loaded 9 millimeter pistol, over $20,000 in cash, and drug paraphernalia indicative of drug distribution.
Acting United States Attorney Michael P. Drescher commended the collaborative investigatory efforts of the United States Border Patrol, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Vermont Drug Task Force.
The case was prosecuted by Assistant U.S. Attorneys Matthew Lasher and Corinne Smith. Marcano was represented by Ian Carleton, Esq.
Chinese state-sponsored hacker arrested on U.S. warrantRead the Press Release
HOUSTON – A 33-year-old Chinese national has been taken into custody for his alleged involvement in U.S. computer intrusions between February 2020 and June 2021, including the reckless and indiscriminate HAFNIUM campaign that compromised thousands of computers worldwide.
Authorities took People's Republic of China (PRC) national Xu Zewei (徐泽伟) into custody in Milan, Italy, as he departed a plane from China at the request of the United States.
Xu is charged along with PRC national Zhang Yu (张宇), 44, in a now unsealed nine-count indictment returned in November 2023. They were both involved in computer intrusions between February 2020 and June 2021 at the direction of officers of the PRC’s Ministry of State Security’s (MSS) Shanghai State Security Bureau (SSSB), according to the indictment.
The charges allege MSS and SSSB are PRC intelligence services responsible for PRC's domestic counterintelligence, non-military foreign intelligence and aspects of the PRC's political and domestic security. When conducting the computer intrusions, Xu worked for Shanghai Powerock Network Co. Ltd., one of many “enabling” companies in the PRC that conducted hacking for the PRC government, according to the charges.
“The indictment alleges that Xu was hacking and stealing crucial COVID-19 research at the behest of the Chinese government while that same government was simultaneously withholding information about the virus and its origins,” said Nicholas Ganjei, U.S. Attorney for the Southern District of Texas. “The Southern District of Texas has been waiting years to bring Xu to justice and that day is nearly at hand. As this case shows, even if it takes years, we will track hackers down and make them answer for their crimes. The United States does not forget.”
“This arrest underscores the United States’ patient and tireless commitment to pursuing hackers who seek to steal information belonging to U.S. companies and universities,” said John A. Eisenberg, Assistant Attorney General for the National Security Division. “The Justice Department will find you and hold you accountable for threatening our cybersecurity and harming our people and institutions.”
“While the world was reeling from a virus that originated in China, the Chinese government plotted to steal U.S. research critical to vaccine development,” said FBI Houston Special Agent in Charge Douglas Williams. “Xu Zewei, an alleged hacker acting on behalf of China's primary spy agency, targeted COVID-19 data using sophisticated cyber techniques and tradecraft. His landmark arrest by FBI Houston agents in Italy proves that we will scour the ends of the Earth to hold criminal foreign adversaries accountable.”
According to court documents, in early 2020, Xu and his co-conspirators hacked and otherwise targeted U.S. based universities and leading immunologists and virologists conducting ground-breaking research into COVID-19 vaccines, treatment and testing. The charges allege Xu and others reported their activities to officers in the SSSB who were supervising and directing the hacking activities. For example, on or about Feb. 19, 2020, Xu allegedly provided an SSSB officer with confirmation that he had compromised the network of a research university located in SDTX. On or about Feb. 22, 2020, the SSSB officer directed Xu to target and access specific email accounts (mailboxes) belonging to virologists and immunologists engaged in COVID-19 research for the research university, according to the allegations. Xu later allegedly confirmed for the SSSB officer he acquired the contents of the researchers’ mailboxes.
Beginning in late 2020, Xu and his co-conspirators exploited certain vulnerabilities in Microsoft Exchange Server, a widely used Microsoft product for sending, receiving and storing email messages, according to the charges. Their exploitation of Microsoft Exchange Server was allegedly at the forefront of a massive campaign targeting thousands of computers worldwide and known publicly as “HAFNIUM.”
In March 2021, Microsoft publicly disclosed the intrusion campaign by state-sponsored hackers operating out of China. In July 2021, the United States and foreign partners attributed the HAFNIUM campaign to the PRC’s MSS, which they and private sector cybersecurity leaders condemned as “indiscriminate,” “reckless,” “irresponsible” and “destabilizing.”
The charges allege victims of Xu’s exploitation of Microsoft Exchange Server were a university located in the Southern District of Texas and a law firm with offices worldwide, including in Washington, D.C. After exploiting computers running Microsoft Exchange Server, Xu and his co-conspirators allegedly installed web shells on them to enable their remote administration. According to the indictment, these web shells were specific to HAFNIUM actors at the time. As with the earlier COVID-19 research intrusions, Xu and Zhang allegedly worked together on the HAFNIUM intrusions under the supervision and direction of SSSB officers. For example, on or about Jan. 30, 2021, Xu confirmed to Zhang that he had compromised the university’s network, according to the charges, and on or about Feb. 28, 2021, updated an SSSB officer on his successful intrusions. This SSSB officer then directed Xu to obtain a list of other, successful intrusions from a second SSSB officer, according to the allegations. The charges allege unauthorized access to the law firm’s network allowed Xu and his co-conspirators to steal information from mailboxes and search them for information regarding specific U.S. policy makers and government agencies. Their search terms allegedly included “Chinese sources,” “MSS” and “HongKong.”
The announcement of charges against Xu is the latest describing the PRC’s use of an extensive network of private companies and contractors in China to hack and steal information in a manner that obscured the PRC government’s involvement. Operating from their safe haven and motivated by profit, this network of private companies and contractors in China allegedly cast a wide net to identify vulnerable computers, exploit those computers, and then identify information that it could sell directly or indirectly to the PRC government. This largely indiscriminate approach can result in more victims in the United States and elsewhere, more systems worldwide left vulnerable to future exploitation by third parties, and more stolen information, often of no interest to the PRC government and, therefore, sold to other third-parties.
In April 2021, the Justice Department announced a court-authorized operation to remediate hundreds of computers in the United States left vulnerable by HAFNIUM actors.
Xu is charged with two counts of wire fraud and conspiracy to do which all carry possible prison terms of up to 20 years in federal prison. The indictment also includes conspiracy to cause damage to and obtain information by unauthorized access to protected computers, to commit wire fraud and to committing identity theft as well as two counts of obtaining information by unauthorized access to protected computers. If convicted on any of those charges, he could receive up to five years, while intentional damage to a protected computer carries a maximum 10-year-possible sentence on either of two counts as charged. For the aggravated identity theft, he could receive another two years which must be served consecutively to any other prison term imposed. All convictions would also have the potential of up to $250,000 as a possible fine.
Zhang remains at large. Anyone with information about his whereabouts is asked to contact the FBI 1-800-CALL-FBI (1-800-225-5324).
The FBI’s Houston Field Office is conducting the investigation.
SDTX Assistant U.S. Attorneys S. Mark McIntyre and John Marck and Deputy Chief Matthew Anzaldi of the National Security Division’s National Security Cyber Section are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Chinese national pleads guilty to falsifying material facts, is sentencedRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Jiaxuemo Zhang, 30, of Arizona, pleaded guilty to falsifying, concealing, or covering up a material fact and was sentenced to time served by U.S. District Judge Richard J. Arcara. Zhang was then turned over to Immigration and Customs Enforcement.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that Zhang is a Chinese national who had been studying at the State University of New York at Buffalo (U.B.) under an F-1 non-immigrant visa issued by the U.S. Department of State in 2021. In June 2021, Zhang applied for the visa at the U.S. Embassy in Beijing, China, stating that he would be attending U.B. and would be majoring in aerospace engineering. However, Zhang failed to include that he had conducted research and studied at Beihang University in China, between approximately September 2017 and December 2019. Beihang University implements or supports the People’s Republic of China’s “military-civil fusion strategy.” Specifically, he conducted research in the Fluid Mechanics Key Laboratory of Education Ministry and the National Laboratory for Computational Fluid Dynamics. Individuals who have a current or prior affiliation with, among other schools, Beihang University, are prohibited from entering the United States by Presidential Proclamation 10043. The State Department would therefore have denied Zhang’s application for an F-1 student non-immigrant visa.
The plea and sentencing are the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Mark Grimm, the U.S. Department of State’s Diplomatic Security Service, under the direction of Resident Agent-in-Charge Stephen Kaiser, and Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.
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Cedar Rapids Fentanyl Supplier Sentenced to Federal PrisonRead the Press Release
A Cedar Rapids man who mailed thousands of fentanyl pills from Arizona to Cedar Rapids was sentenced July 7, 2025, to more than eight years in federal prison.
Anthony Chan Dixon, age 35, from Cedar Rapids, Iowa, received the prison term after a January 21, 2025 guilty plea to one count of conspiracy to distribute a controlled substance.
Information disclosed at the sentencing hearing showed that Dixon moved from Cedar Rapids, Iowa, to Phoenix, Arizona, prior to 2022. Beginning in 2022, and continuing through September 2023, Dixon shipped packages containing hundreds of fentanyl pills from Arizona to various fentanyl dealers in Cedar Rapids, totaling at least 4,500 fentanyl pills. Dixon had previously been convicted of two felony drug offenses.
Dixon was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Dixon was sentenced to 106 months’ imprisonment, and he must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
Dixon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Johnson County Drug Enforcement Task Force consisting of the Johnson County Sheriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement; the Cedar Rapids Police Department; and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 24-CR-00058-CJW.
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