Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
3 June 2025
Twice convicted drug trafficker sent to prison for illegal possession of firearmsRead the Press Release
McALLEN, Texas – A 46-year-old Pharr resident has been sentenced for unlawful possession of a firearm, announced U.S. Attorney Nicholas J. Ganjei.
Rogelio Rodriguez Jr. pleaded guilty July 10, 2024.
U.S. District Judge Drew B. Tipton has now handed Rodriguez an enhanced sentence of 96 months after determining he possessed numerous firearms in connection with another felony offense of aggravated assault with a deadly weapon. His sentence will be immediately followed by a two-year-term of supervised release. At the hearing, the court heard Rodriguez had a pattern of illegally possessing firearms in connection with drug trafficking.
On Jan. 12, 2024, authorities responded to a call regarding an aggravated assault at Rodriguez’s residence. Law enforcement had information that Rodriguez had refused to leave the property and brandished a firearm after being confronted about carrying firearms.
They conducted a search and discovered three firearms in the residence including a Glock .40 caliber pistol, a Smith & Wesson .38 special revolver and a North American Arms .22 caliber revolver.
The investigation revealed Rodriguez had two prior felony convictions for drug trafficking. As such, he is prohibited from possessing firearms per federal law.
Rodriguez will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney Devin V. Walker prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Twice Convicted Drug Trafficker Pleads Guilty to Trafficking CocaineRead the Press Release
PROVIDENCE – A Rhode Island man who was previously convicted twice and incarcerated for drug trafficking admitted to a federal judge today that, after completing his second term of incarceration and while on federal supervised release, he arranged multiple times to have packages containing cocaine shipped to Rhode Island from Columbia, announced Acting United States Attorney Sara Miron Bloom.
Levys Tovar, 43, a former United Parcel Service (UPS) employee, used his position at UPS to attempt to locate and intercept one of the packages prior to it being sent out for a delivery to a non-existent address in Central Falls. Prior to attempting to intercept the package, Tovar tracked the package from his residence approximately 41 times. Unbeknownst to Tovar, the package had been intercepted by U.S. Customs and Border Patrol after it was found to contain slightly over 200 grams of cocaine secreted inside a piece of machinery.
Further investigation determined that Tovar had other packages sent to various addresses in Rhode Island from Columbia, including one that was intercepted in Columbia that was found to contain approximately 850 grams of cocaine, and another that contained just over 300 grams of cocaine stashed inside an old television set.
According to information presented to the court, Tovar arranged for others to ship to him more than two kilograms of cocaine.
Tovar pleaded guilty today, as charged by indictment in February 2023, to conspiracy to distribute and possess with intent to distribute cocaine. He is scheduled to be sentenced on September 2, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
According to court records, Tovar was convicted in federal court in 2004 of possession with intent to distribute one kilogram of heroin, and again in 2011on a charge of attempt to possess with intent to distribute one kilogram or more of heroin.
The current case is being prosecuted by Assistant United States Attorney Stacey A. Erickson, with the assistance of Christine D. Lowell.
The matter was investigated by Homeland Security Investigations’ Northeast Corridor Border Enforcement Team; Custom and Border Protection; and the Central Falls, Pawtucket, Providence, and Warwick Police Departments.
###
Three Chilean Nationals Charged with Immigration OffensesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Jose Quezada-Villena, 30, and Kevin Bernal-Fuentes, 25, both of Chile, have been charged by criminal complaint with transporting Jeanne Marie Medel-Garay, 46, also from Chile, who had just entered the United States illegally by crossing into the country from Canada without passing through a port of entry, and who has been charged with illegal entry into the United States.
According to court documents, during the evening of May 27, 2025, the United States Border Patrol received a report that a landowner near the U.S./Canada border had observed a single female crossing into the United States from Canada at a location other than a Port of Entry in Derby Line, Vermont. The female had been picked up by a silver Nissan Rogue. Based on this information a United States Border Patrol agent established surveillance a few miles south of the border where he observed the Nissan driving erratically before conducting a traffic stop. During the stop, law enforcement encountered two males in the front of the car, later identified as Quezada-Villena and Bernal-Fuentes, and a single female passenger in the back, later identified as Medel-Garay. A subsequent review of immigration records revealed that all three individuals lacked permission to be in the United States. During a post-arrest interview, Bernal-Fuentes admitted to traveling to Vermont from Long Island, New York, with Quezada-Villena for the purpose of picking up and transporting an individual within the United States.
On May 29, 2025, United States Magistrate Judge Kevin J. Doyle ordered Medel-Garay detained during the pendency of her prosecution. On May 30 and June 2, Judge Doyle ordered that Quezada-Villena and Bernal-Fuentes, respectively, be released on conditions pending trial.
The United States Attorney’s Office emphasizes that the complaint contains allegations only and that the defendants are presumed innocent until and unless proven guilty. Quezada-Villena and Bernal-Fuentes face up to five years’ incarceration if convicted. Their actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors. Medel-Garay faces up to six months’ incarceration if convicted.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.
The prosecutor is Assistant United States Attorney Michelle Arra. Quezada-Villena is represented by the Office of the Federal Public Defender. Bernal-Fuentes is represented by Allan Sullivan, Esq. Medel-Garay is represented by Robert Behrens, Esq.
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).
Texas Man Sentenced to 26 Months in Prison for Making Threats of Violence Against Employees of Sikh Nonprofit OrganizationRead the Press Release
A Dallas County, Texas man was sentenced to 26 months in prison for a federal hate crime and for making violent interstate threats against various individuals based on their religion, including the employees of a Sikh nonprofit organization located in New Jersey, Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division and U.S. Attorney Alina Habba for the District of New Jersey announced today.
Bhushan Athale, 49, of Dallas, Texas had previously pleaded guilty before U.S. District Judge Edward S. Kiel in Camden federal court to interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person.
According to documents filed in this case and statements made in court, on Sept. 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States, leaving numerous messages over several hours threatening to injure or kill these individuals with a razor and other very specific acts of violence.
On March 21, 2024, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent, sexual imagery to express his hatred toward Sikhs as well as Muslims.
“The Department of Justice has no tolerance for hate-fueled threats of violence in our country, and we appreciate the strong efforts of U.S. Attorney Alina Habba and her team in working with us to bring this perpetrator to justice,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division.
In addition to the prison term, Judge Kiel sentenced Athale to three years of supervised release and warned Athale not to contact any of the victims of his offenses.
U.S. Attorney Alina Habba for the District of New Jersey credited the special agents of the FBI Philadelphia Field Office, under the direction of Special Agent in Charge Wayne A. Jacobs, with the investigation.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Jason M. Richardson of the U.S. Attorney’s Office in Camden, New Jersey, with assistance from the U.S. Department of Justice’s Civil Rights Division.
Summerville Man Sentenced to 20 Years in Federal Prison for Weapon ViolationRead the Press Release
CHARLESTON, S.C. — Mark Lee Frasier, 33, of Summerville, was sentenced to 20 years in federal prison after pleading guilty to being a in possession of a firearm and ammunition after a felony conviction.
Evidence presented in court showed that on Feb. 7, 2023, Charleston Police officers encountered Frasier while patrolling a high-crime area. He was parked in front of an abandoned building, and officers saw what appeared to be a bag of cocaine inside the vehicle. When Frasier noticed police, he fled in the car until he reached a dead-end street. Frasier ran but was quickly apprehended.
A search of the vehicle uncovered 9.31 grams of cocaine in the center console, 3.62 grams of crack cocaine on the driver’s floorboard, 15 methamphetamine pills, and a marijuana blunt. Officers also recovered a stolen .40 caliber pistol from the driver’s seat where Frasier had been sitting. Because of prior felony convictions, Frasier is prohibited under federal law from possessing firearms or ammunition. He was also eligible for a sentencing enhancement due to prior convictions for violent felonies or serious drug offenses.
At the time of this arrest, Frasier was out on bond for state charges including murder, attempted murder, domestic violence of a high and aggravated nature, possession of a firearm during a violent crime, and unlawful carrying of a pistol.
United States District Judge Bruce H. Hendricks sentenced Frasier to 20 years imprisonment as part of a negotiated agreement between the parties to be followed by five years of court ordered supervision. There is no parole in the federal system.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charleston Police Department. Assistant U.S. Attorney Chris Lietzow is prosecuting the case.
###
St. Paul Man Sentenced in Twin Cities Stuffed Animal Fentanyl Distribution ConspiracyRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 120 months imprisonment followed by 5 years of supervised release after pleading guilty to his part in a fentanyl distribution conspiracy, announced Acting U.S. Attorney Joseph H. Thompson.
According to court documents, between August 2022 through December 2023, Quijuan Hosea Bankhead, 31, and others conspired to distribute fentanyl in the Twin Cities and throughout Minnesota. To accomplish their scheme, several of the co-defendants traveled to Phoenix to obtain fentanyl pills from suppliers, hid the pills inside stuffed animals, and then mailed them to addresses in and around the Twin Cities. Law enforcement in Dakota, Ramsey, and Washington counties became aware of the trafficking and initiated a joint investigation, which resulted in the seizure of six packages containing over 30,000 grams of fentanyl pills.
Bankhead was sentenced on May 29, 2025, in U.S District Court before Judge Jeffrey M. Bryan.
“Bankhead and his network smuggled deadly fentanyl into Minnesota and had the gall to hide this poison inside of children’s toys—stuffed animals,” said Acting U.S. Attorney Joseph H. Thompson. “Bankhead will now serve a well-deserved decade in federal prison.”
This case is the result of an investigation conducted by the U.S. Postal Inspection Service, Homeland Security Investigations, the Dakota County Drug Task Force, the Washington County Drug Task Force, and the Ramsey County Violent Crime Enforcement Team.
Assistant U.S. Attorney Campbell Warner prosecuted the case.
Romanian National Sentenced for Defrauding Banks and Leaving Hundreds of Banking Customers as Victims in His WakeRead the Press Release
PROVIDENCE – A Romanian national illegally present in the United States who is described in court documents as being an “undeterred serial scammer” who left hundreds of victims in his wake after stealing and using their personal banking information has been sentenced to nearly three years in federal prison and will face deportation proceedings, announced Acting United States Attorney Sara Miron Bloom.
Mario Demarco, a/k/a Marius Lupu a/k/a David Adamec, 30, pleaded guilty in January to a charge of conspiracy to commit bank fraud. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 33 months in federal prison to be followed by two years of supervised release. Additionally, Demarco was ordered to pay restitution totaling $16,567.06.
An immigration detainer has been lodged by Immigration and Customs Enforcement.
Court documents reflect that for more than two years, beginning in October 2022, Demarco traveled up and down the Northeast and Mid-Atlantic installing skimming devices on ATMs. These devices intercepted hundreds of customers’ debit card and banking information, which Demarco used to create fraudulent debit cards. The bogus cards were then used to make unauthorized cash withdrawals, attempted withdrawals, and purchases.
Throughout the course of the conspiracy, Demarco installed skimming devices on at least ten ATMs and compromised at least 952 cards. Demarco owes restitution to fifteen different banks.
The case was prosecuted by Assistant United States Attorneys Taylor A. Dean and Ly T. Chin.
The matter was investigated by Homeland Security Investigations, with assistance from the Warwick, RI, Police Department, Cranston, RI, Police Department, East Greenwich, RI, Police Department, North Kingstown, RI, Police Department, East Providence, RI, Police Department, Boston, MA, Police Department, New York City Police Department, and the Stratford, CT, Police Department.
###
Rock Hill Man Sentenced to 15 Years in Federal Prison for Fentanyl OffenseRead the Press Release
COLUMBIA, S.C. — Justin Lee Payne, 31, of Rock Hill, has been sentenced to 15 years in federal prison after pleading guilty to possession with intent to distribute fentanyl.
Evidence obtained in the investigation revealed that Payne was arrested by York County sheriff’s deputies for trafficking fentanyl. During the arrest, investigators executed a search warrant on Payne’s home and located more than 280 grams of fentanyl and 4 grams of methamphetamine.
United States District Mary Geiger Lewis sentenced Payne to 180 months imprisonment, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the York County Multi-Jurisdictional Drug Unit. Assistant U.S. Attorney Winston D. Holliday is prosecuting the case.
###
Richmond felon sentenced to five years in prison for illegally possessing a firearmRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to five years in prison for possession of a firearm by a convicted felon.
According to court documents, on July 21, 2023, a Richmond Police officer was patrolling the Gilpin Court neighborhood in Richmond when he observed a vehicle that had been reported stolen. The officer followed the vehicle until it stopped, then approached the vehicle and directed the driver, Timothy Garnett Covington, 39, to turn off the vehicle. Covington refused, and when the officer attempted to remove Covington from the vehicle, Covington reached under his shirt and retrieved a handgun from his waistband. The officer returned to his vehicle and Covington drove away.
Covington drove down an alley before abandoning the vehicle and fleeing on foot. Officers located Covington inside a residence and detained him. Officers later located two firearms and .5 grams of methamphetamine inside the residence.
As a previously convicted felon, Covington cannot legally possess firearms or ammunition.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jason S. Miyares, Attorney General of Virginia; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge Roderick C. Young.
Special Assistant U.S. Attorney Eric Gilliland, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-136.
Registered sex offender sentenced to 70 years for sexually exploiting minorsRead the Press Release
GALVESTON, Texas - A 44-year-old Manvel resident has been ordered to federal prison after his multiple convictions involving child sexual abuse material (CSAM), coercion and enticement of minors and being a registered sex offender while committing the crimes, announced U.S. Attorney Nicholas J. Ganjei.
Brian Jones pleaded guilty March 12 to two counts each of sexual exploitation of a child, coercion and enticement of a minor and penalties for registered sex offenders as well as one count of possession of CSAM.
U.S. District Judge Jeffrey V. Brown has now sentenced him to 600 months on each of the sexual exploitation charges and the coercion and enticement counts and 240 months for possessing child pornography to run concurrently. He also received 120 months for each of the penalties for registered sex offenders which will be served consecutively to each other and as to the other counts for a total of 840 months.
At the hearing, the court heard additional evidence regarding two victims whom he began talking to when they were just 11 and six years of age. Their guardian prepared a victim impact statement which described how the children were seeing a therapist on a weekly basis for the trauma they endured and how they had to leave the only school and friends they had ever known. The statement also references a comment from the therapist who noted that when she thinks of these children, she just wants to cry.
Jones was further ordered to pay restitution to the victims and will serve the rest of his life on 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 the internet. He will also again be required to register as a sex offender.
“Mr. Jones’ criminal history, which includes a prior sexual offense involving a minor, demonstrates that he is beyond any hope of rehabilitation, and thus only a life sentence or the equivalent, like the one he received today, can adequately safeguard the community from his future predatory behavior,” said Ganjei. “Although we may not ever fully heal the scars that the defendant inflicted on the victims in this case, we can ensure that Mr. Jones can never harm another child again.”
“Another great investigation through our partnership with Internet Crimes Against Children (ICAC) task force,” said Chief Johnny Spires of Pearland Police Department (PPD). “Our detective has been investigating these horrible crimes for more than 17 years and is considered an expert in his field. We are very proud of his work here at the PPD and his continued assistance working with other agencies throughout our area. We ask the public to please help protect our children, if you see something say something.”
“With today’s sentencing we have removed a dangerous predator from the community who preyed on children as young as six years old and has shown absolutely no remorse for his heinous actions,” said Special Agent in Charge Chad Plantz of Immigration and Customs Enforcement – Homeland Security Investigations (ICE-HSI) Houston. “The success of this investigation is a direct result of the unwavering support we continue to receive from the National Center for Missing and Exploited Children (NCMEC) and the tireless efforts of our partners at PPD, who worked closely with our special agents to ensure this individual is no longer free to victimize innocent children.”
A total of 24 cybertips from the NCMEC prompted the investigation in 2023. An individual, later identified as Jones, had uploaded over 1,000 CSAM files from April 5 - May 8, 2023. The investigation revealed he was a registered sex offender.
Authorities conducted a residential search warrant and seized his electronic devices. A forensic examination revealed he had over 11,000 images and over 850 videos which depicted children engaged in sexually explicit conduct, including anal and vaginal penetration, masturbation, sadistic and masochistic conduct and the lewd and lascivious exhibition of genitals.
Law enforcement also found images and screenshots of an adult female filming two naked children for Jones during several live chats. In some of the images, Jones’ face or genitals are included as he recorded himself watching them. Some images also included the adult female touching the minor victims.
Jones had initially talked to the adult female who had a connection to the children. He first requested naked pictures of her and then of the minors.
Text messages between Jones and the minor victims also revealed he had asked them to send him images of their vaginas. The abuse lasted for over three years.
The investigation also identified the adult female who had also pleaded guilty to two counts of the sexual exploitation of children and is serving a 50-year federal prison sentence.
This was also not the first time Jones had requested children to take pornographic pictures of themselves for him. He was sentenced in 2016 for indecency with a child by exposure in which he had requested his then girlfriend’s minor daughter to send him naked pictures of herself.
PPD, ICE-HSI Galveston and the Houston Metro ICAC task force conducted the investigation.
Assistant U.S. Attorney (AUSA) Kimberly Ann Leo and former AUSA Brian Hrach 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.
Rapid City Man Sentenced to over 21 Years in Federal Prison for Multiple Child Exploitation and Pornography OffensesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier sentenced a Rapid City, SD, man convicted of Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, Attempted Receipt of Child Pornography, and Attempted Transfer of Obscene Material to a Minor. The sentencing took place on May 30, 2025.
William Henry Riese, 34, was sentenced to 21 years and eight months in federal prison, followed by five years of supervised release. Riese was ordered to pay $400 in special assessments to the Federal Crime Victims Fund and to forfeit the cell phone he used to commit his crimes.
A federal grand jury indicted Riese in August 2022. He was found guilty at the conclusion of a jury trial in Rapid City in February 2025.
Riese was arrested following an undercover sex trafficking operation during the Sturgis Bike Rally that targeted predators on the Internet. After multiple days of sending sexually explicit messages, videos, and photos with a person Riese believed to be a 14-year-old girl, Riese negotiated a time and place he would meet the minor to engage in unlawful sex acts. When Riese went to the pre-determined location to meet the minor, he was met by law enforcement agents rather than the child he intended to meet. Riese was immediately arrested and has remained in custody since his arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, and the Rapid City Police Department. Assistant United States Attorney Heather Knox prosecuted the case.
Riese was immediately remanded to the custody of the U.S. Marshals Service.
Public Servants Sentenced for COVID-19 Relief FraudRead the Press Release
MIAMI – Angelo Stephen, 33, a former Federal Bureau of Prisons Correctional Officer, and George Arestuche, 47, a former Miami-Dade County Aviation Department employee, were sentenced in separate cases after pleading guilty to defrauding COVID-19 relief programs.
Angelo Stephen
On May 22, Stephen was sentenced to four months in prison to be followed by three years of supervised release and ordered to pay $75,513 in restitution by Chief U.S. District Judge Cecilia M. Altonaga. Chief Judge Altonaga also entered a forfeiture money judgment against Stephen in the additional amount of $71,166. The sentence follows Stephen’s conviction for wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL), as well as his participation in two bank account takeover schemes.
During his change of plea hearing, Stephen admitted that on August 4, 2020, he submitted a false and fraudulent EIDL application in his own name to the Small Business Administration (SBA), claiming to be an independent contractor and the sole owner of a business that provided event planning and entertainment services with 10 employees. The EIDL application falsely certified that for the applicable 12-month period, the business had approximately $62,018 in gross revenue and a cost of goods sold of $0. Based on his false and fraudulent application, Stephen received $20,000 in EIDL proceeds from the SBA.
Stephen additionally admitted to fraudulently obtaining two PPP loans. On April 24, 2021, Stephen submitted a first-draw PPP loan application, claiming to be the sole proprietor of a non-existent business with $106,554 in gross income in 2020. In support of the application, Stephen submitted a fraudulent IRS Form 1040 Schedule C. Based on his false and fraudulent application, Stephen received $20,833 in PPP loan proceeds from an SBA-approved lender. On May 11, 2021, Stephen submitted a second-draw PPP loan application, making the same false claims about his nonexistent business that was supported by submission of the identical false Schedule C. Based on his false and fraudulent application, Stephen obtained $20,833 in PPP loan proceeds from a different SBA-approved lender.
Stephen also admitted to taking part in two bank account takeover schemes. On March 30, 2023, Stephen received a $20,000 wire transfer from the account of an unsuspecting victim in Virginia. Stephen quickly withdrew all illegally obtained money through a series of cash withdrawals and Zelle transfers to others. In the second takeover scheme, Stephen and his accomplices obtained new checks from the credit union account of a different unsuspecting victim. Stephen subsequently used one of those checks to obtain $8,500 in cash that he was not entitled to.
George Arestuche
On May 28, Arestuche was sentenced by Senior U.S. District Judge Paul C. Huck to five years of probation to include 210 days in home detention and ordered to pay $114,679 in restitution, plus community service. The sentence follows Arestuche’s conviction for conspiracy to commit wire fraud in connection with his fraudulent application for an EIDL.
According to the facts admitted at the change of plea hearing, Arestuche and a co-conspirator devised a scheme to defraud the SBA by submitting a false and fraudulent application for Arestuche to obtain an EIDL and EIDL advance. As part of the conspiracy, Arestuche agreed to pay the co-conspirator a large fee.
On July 9, 2020, Arestuche’s co-conspirator submitted a false and fraudulent EIDL application to the SBA on behalf of Arestuche, claiming that Arestuche was an independent contractor and the sole owner of an automotive repair business with 10 employees. The EIDL application falsely certified that for the applicable 12-month period, the business had $600,000 in gross revenue and a cost of goods sold of $184,000. In reality, Arestuche was not an independent contractor and did not own any type of business. The EIDL application was supported by a fraudulent IRS Form 1040 Schedule C. As a result of this false and fraudulent EIDL application, Arestuche obtained $149,900 in EIDL proceeds and a $10,000 EIDL advance from the SBA. Arestuche subsequently paid his co-conspirator $17,275 for helping him fraudulently obtain the money from the SBA. Since pleading guilty, Arestuche has paid $50,000 in advance restitution payments.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; acting Special Agent in Charge Amber Howell of the Department of Justice Office of Inspector General’s Fraud Detection Office (DOJ-OIG); Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region; acting Special Agent in Charge Brett D. Skiles of FBI Miami; and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG) made the announcement.
DOJ-OIG and SBA-OIG investigated the Stephen case. SBA-OIG and the FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, investigated the Arestuche case.
Assistant U.S. Attorney Edward N. Stamm prosecuted both cases.
Assistant U.S. Attorney Annika Miranda is handling forfeiture matters in the Stephen case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 25-cr-20014 (Stephen) and 25-cr-20001 (Arestuche).
###
Pinedale Man Admits Guilt in Violent Knife AttackRead the Press Release
ALBUQUERQUE – A Pinedale man pleaded guilty to assault with a dangerous weapon after slashing a man’s throat during a confrontation.
According to court records, on February 17, 2025, Laberto Curley, 25, an enrolled member of the Navajo Nation, used a knife to slash John Doe’s throat during a physical altercation, resulting is serious bodily injury.
At sentencing, Curley faces a maximum of 10 years in prison. Upon his release from prison, Curley 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 Gallup 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 Investigation. Assistant U.S. Attorney Jesse Pecoraro is prosecuting the case.
View the Plea Agreement (Curley)_7.pdfPassaic County Man Admits to Conspiring to Distribute FentanylRead the Press Release
Newark, N.J. – A Passaic County man admitted to distributing approximately 500 pills of fentanyl, United States Attorney Alina Habba announced.
Angelo Restituyo-Garcia, 34, of Paterson, New Jersey, pleaded guilty before Senior U.S. District Judge Katharine S. Hayden to one count of conspiring to distribute 40 grams or more of fentanyl, in violation of Title 21, United States Code, Section 846, and one count of possession with intent to distribute 40 grams or more of fentanyl, in violation of Title 21, United States Code, Section 841(a)(1) and (b)(1)(B).
According to the statements made in court and the documents filed in this case:
From in or about March of 2020 through May of 2020, Restituyo-Garcia conspired with others to distribute fentanyl. On May 1, 2020, Restituyo-Garcia delivered nearly 500 pills of compressed fentanyl totaling more than 50 grams for which he accepted $2,750 in payment.
The conspiracy charge and the possession with intent to distribute charge are both punishable by a maximum potential penalty of 40 years in prison and a maximum $5,000,000 fine. Each charge carries with it a mandatory minimum penalty of 5 years in prison. Sentencing is scheduled for October 1, 2025.
U.S. Attorney Habba credited special agents with the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Cheryl Ortiz in Newark, New Jersey as well as investigators with the Passaic County Prosecutor’s Office under the direction of Prosecutor Camelia Valdes.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the Untied States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Office’s Special Prosecutions Division in Newark.
###
Defense counsel: Adalgiza Nunez, Assistant Federal Public Defender, Newark
restituyogarcia.information.pdfPassaic County Correctional Officer Admits Civil Rights Violation and Conspiracy to Obstruct Justice in Connection with an Assault of a Pretrial DetaineeRead the Press Release
NEWARK, N.J. – A Passaic County Correctional Officer admitted his role in assaulting a pretrial detainee and conspiring to obstruct justice, U.S. Attorney Alina Habba announced.
Sergeant Jose Gonzalez, 46, pleaded guilty on May 28, 2025, before U.S. District Judge Michael E. Farbiarz in Newark federal court to a two-count indictment charging him with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice.
According to documents filed in this case and statements made in court:
On January 22, 2021, a pretrial detainee at the Passaic County Jail (“PCJ”) squirted a mixture containing urine onto a correctional officer. The following day, on January 23, 2021, Sergeant Gonzalez admitted that he, along with Sergeant Donald Vinales, and Correctional Officer Lorenzo Bowden, who were also charged in this case, transported the detainee through an area of the PCJ that does not have a video surveillance camera, which Correctional Officers and inmates at the PCJ have referred to as a “blind spot.” While in that “blind spot,” Sergeant Gonzalez admitted that he and Sergeant Vinales assaulted the detainee, while he was handcuffed, when they knocked him to the ground and struck him multiple times. One day after the assault, the detainee was taken to a local hospital, which documented injuries from the assault.
The defendants were required to submit documentation regarding their use of force. None of them submitted any such reports.
In March 2022, Sergeant Gonzalez admitted that he made false statements to federal law enforcement officers during an interview in connection with this investigation. Additionally, in April 2022, after receiving federal grand jury subpoenas in connection with this investigation, Sergeant Gonzalez, Sergeant Vinales, Officer Bowden, among others, met to discuss the federal investigation. During that meeting, the group agreed not to cooperate with the federal investigation and also agreed to say that nothing had happened to the detainee (referring to the assault). Thereafter, during an interview with federal investigators in October 2022, Bowden falsely stated that the detainee had not been assaulted and that there had not been any meeting or communication among those who participated in or witnessed the assault.
Officer Bowden pleaded guilty on April 18, 2024, before Judge Farbiarz to an information charging him with conspiracy to obstruct justice and is awaiting sentencing.
Sergeant Vinales pleaded guilty on May 21, 2025, before Judge Farbiarz to a two-count indictment charging him with one count of deprivation of rights under color of law and one count of conspiracy to obstruct justice. He is also awaiting sentencing.
The charge of deprivation of rights under color of law carries a maximum penalty of 10 years in prison and the charge of conspiracy to obstruct justice carries a maximum penalty of 20 years in prison. Both charges carry a fine of up to $250,000. Gonzalez’s sentencing is scheduled for October 22, 2025.
U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; and the Passaic County Sheriff’s Office Division of Internal Affairs, under the direction of Sheriff Thomas Adamo.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the Narcotics/OCDETF Unit in Newark, and R. Joseph Gribko, Senior Trial Counsel in Trenton.
###
Defense Counsel:
Valerie Palma DeLuisi, Esq., Clifton, New Jersey
gonzalez.indictment.pdfOwner of Santee Trucking Company Charged in $2 Million Credit Card SchemeRead the Press Release
SAN DIEGO – Hasan Korkmaz, the owner and operator of San Diego Logistics Group Inc., a Santee trucking company, was arraigned in federal court today on an 18-count indictment charging him with bank fraud, money laundering and aggravated identity theft.
According to the indictment, in 2022 and 2023, Korkmaz executed a credit card “bust-out” scheme - where fraudsters establish seemingly legitimate credit card accounts and then “bust out” by maxing out the credit line with no intention of paying the balance.
The indictment alleges that Korkmaz obtained names, dates of birth, social security numbers and other personally identifiable information corresponding with real individuals. Korkmaz then applied for numerous credit card accounts with that information. After opening the fraudulent credit cards accounts, Korkmaz allegedly used the credit cards to incur charges at various businesses, including Korkmaz’s San Diego Logitistics Group Inc. The charges were in the thousands of dollars each, including some charges as high as $18,500 in a single transaction.
To perpetuate the scheme, Korkmaz also made fraudulent payments, with checks drawn on accounts with insufficient funds or drawn on non-existent accounts, to the credit card accounts, thereby temporarily restoring the available credit limits, the indictment said. Korkmaz would then incur additional charges on the credit card accounts at or near the maximum credit limits for the accounts.
As alleged in the indictment, Korkmaz laundered the bank fraud proceeds, including by transferring proceeds from the fraud scheme to a Turkish bank account controlled by Korkmaz. In total, Korkmaz caused over $2,103,000 in losses to two banks.
This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Christopher Alexander.
DEFENDANT Case Number 25-cr-1405-JES
Hasan Korkmaz Age: 44 Las Vegas, NV
SUMMARY OF CHARGES
Counts 1-12 - Bank Fraud - Title 18, U.S.C., Section 1344(2)
Maximum penalty: Thirty years in prison; a maximum $1 million fine
Counts 13-14 - Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Twenty years in prison; a maximum $500,000 fine or twice the amount of monetary instruments involved in the offense, whichever is greatest
Counts 15-18 - Aggravated Identity Theft – Title 18, U.S.C. Section 1028A
Maximum penalty: Mandatory minimum sentence of two years in prison, to run consecutively to the specified felony
INVESTIGATING AGENCY
Federal Bureau of Investigation
Oregon Woman Pleads Guilty for Role in Sex Trafficking of MinorRead the Press Release
NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that CORA BEUVING (“BEUVING”), age 26, of Oregon, pled guilty before United States District Judge Eldon E. Fallon on May 29, 2025, to misprision of a felony, in violation of Title 18, United States Code, Section 4.
According to court documents, in May 2024, two adult men brought a fifteen-year-old girl (Minor Victim) from Houston, Texas to New Orleans, Louisiana, for the purpose of having her engage in commercial sex. BEUVING posted advertisements for commercial sex with Minor Victim on online classified ad service websites.
In pleading guilty, BEUVING, faces a maximum penalty of three (3) years imprisonment, followed by up to one (1) year of supervised release. BEUVING also faces a fine of up to $250,000, and a $100.00 mandatory special assessment fee.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Acting U.S. Attorney Simpson praised the work of Homeland Security Investigations and the Kenner Police Department in investigating this case. Assistant United States Attorney Maria M. Carboni of the Financial Crimes Unit is in charge of the prosecution.
Oregon Man Pleads Guilty to Distribution of Controlled Substances to High School StudentsRead the Press Release
PORTLAND, Ore.—Jack E. Wagner, 22, pleaded guilty today to the unlawfully distributing controlled substances to two local high school students, announced the U.S. Attorney’s Office for the District of Oregon.
According to court documents, Wagner, a Milwaukie, Oregon resident, knowingly distributed psilocybin, a Schedule I controlled substance, to two West Linn High School students in West Linn, Oregon. Wagner later admitted to also possessing a firearm in connection with the offense.
Wagner faces a maximum sentence of 40 years in prison, a $2 million fine and 8 years of supervised release. He will be sentenced on August 26, 2025, before a U.S. District Judge.
This case was investigated by the West Linn Police Department with assistance from the FBI and Clackamas County Interagency Task Force. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Operation Smoke and Mirrors Update: California-Based Supplier Sentenced to 27 Years in Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Alejandro Gallegos, also known as “Alex,” “Rooster,” “G” and “Primo,” 42, of Hacienda Heights, California, was sentenced today to 27 years in prison, to be followed by 5 years of supervised release, for conspiracy to distribute 500 grams or more of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of cocaine. Gallegos admitted to a major supplier role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, from in or about February 2021 to in or about March 2023, Gallegos conspired with others to distribute methamphetamine and cocaine within the Southern District of West Virginia.
On March 18, 2023, Gallegos directed co-defendant Ildiberto Gonzalez Jr. to deliver approximately 196 pounds of methamphetamine and four kilograms of cocaine from California to Bluefield, West Virginia, in his 2009 Freightliner semi-truck with attached trailer. Gallegos arranged the shipment in exchange for approximately $400,000 with another co-conspirator in West Virginia. Gallegos had Gonzalez and the West Virginia co-conspirator meet in a particular parking lot in Bluefield on March 22, 2023. There, Gonzalez provided the controlled substances to the other individual in exchange for a box that Gonzalez believed contained the cash.
Gonzalez Jr., 31, of San Bernadino, California, was sentenced on July 22, 2024, to 14 years in prison, to be followed by three years of supervised release, after pleading guilty to conspiracy to distribute a quantity of methamphetamine.
Gallegos and Gonzalez are among 31 individuals convicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Gallegos was found by the Court to be responsible for approximately 740 pounds of methamphetamine through his role in the drug trafficking organization.
“No defendant sentenced in the Southern District of West Virginia has been responsible for the amount of methamphetamine attributable to this defendant. There is no comparison,” said Acting United States Attorney Lisa G. Johnston. “While thousands of miles away from our communities, he directed methamphetamine from Mexico to West Virginia for the sake of profits, knowing that his actions would add to the devastation of the drug abuse crisis in the Southern District of West Virginia.”
Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-32.
###
Ohio Man Loses Nearly Half a Million Dollars in Cryptocurrency Investment ScamRead the Press Release
CLEVELAND – The United States Attorney’s Office for the Northern District of Ohio (USAO) has filed a civil complaint in forfeiture against 679,981.22 Tether (USDT) cryptocurrency suspected of being fraudulently obtained as part of an investment scam. USDT are digital tokens that are circulated through the internet and tied to, or “tethered,” to a fiat currency such as the U.S. dollar. The USDT amount in the complaint is valued at $679,981.22, at a 1:1 ratio to the dollar.
According to court documents, on July 22, 2024, a woman using the name “Kristina Tian” contacted a victim located in Solon, Ohio, through the LinkedIn online professional networking platform. The two began messaging and became friendly with one another. Tian then suggested to move their conversation to the WhatsApp messaging platform where they continued to communicate. She then steered the conversation toward her successes in cryptocurrency to gain the victim’s interest. Prior to being contacted by Tian, the victim already had a cryptocurrency account through the Kraken exchange. While corresponding with Tian, he sent her screenshots of his investment holdings to prove that he had a significant amount of funds to invest. In total, he transferred approximately $500,000 of his money to his Kraken account. Tian then instructed him to transfer his Kraken cryptocurrency to an investment platform that the victim did not know was fraudulent. Following his initial investment, the victim requested that a portion of the first deposit be returned. Once that transaction was successful, he felt comfortable to proceed with investing more money. However, around this time, the FBI intervened. FBI agents informed the Solon man that they were investigating investment fraud schemes, and they believed he was a victim. After learning about the scam, the victim confronted Tian through WhatsApp. She responded with a series of mocking messages such as, “I feel for you. But thank you for you giving me half of your savings,” and “Lol, I enjoyed it and thank you for the money so I can find more. Glad to use your life savings.”
Investigators also identified a second victim of the underlying cryptocurrency fraud scam. The female victim was a resident of Arizona who met a man on a dating app, “Coffee Meets Bagel.” After some time spent messaging through the app and building trust, the man suggested that she invest in cryptocurrencies. The victim made an initial purchase of cryptocurrency through Crypto.com and then transferred the full amount to the fraudulent investment platform that the man recommended. Later, the victim was unable to retrieve her funds. The Arizona woman lost $63,000 to the investment fraud scheme. This included $15,000 that she cashed out from her 401(k) retirement account, and another $48,000 from a home equity loan that her daughter took out and had given to her to invest.
Because many virtual currencies record their transactions on publicly accessible digital ledgers known as a blockchain, investigators were able to conduct analysis for signs of fraudulent activity. They ultimately traced a portion of the funds stolen from the two victims to two cryptocurrency addresses on the Tron blockchain. Further investigation revealed that the stolen currency had been converted to the USDT virtual currency.
By the complaint in forfeiture filed on June 2, 2025, the United States seeks to forfeit the entire 679,981.22 in USDT cryptocurrency. In the complaint, the United States alleges that the funds contained in the two cryptocurrency addresses in excess of the victims’ traceable losses also are proceeds of fraud and, accordingly, are subject to forfeiture. Additionally, the complaint alleges that such other funds were involved in money laundering violations.
The claims asserted in the complaint are allegations only. The United States must prove the claims by a preponderance of evidence.
If successful in this forfeiture action, the United States would seek to return the stolen funds to the victims.
This case was investigated by the FBI Cleveland Division and prosecuted by Assistant U.S. Attorney James L. Morford for the Northern District of Ohio.
The case is part of the FBI’s initiative against cryptocurrency fraud scams perpetrated on victims throughout the United States, including the Northern District of Ohio.
To report fraudulent conduct involving older adults, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov to submit a report.
complaint_in_forfeiture_6-2-25_0.pdfOhio Man Charged with Production of Child PornographyRead the Press Release
MINNEAPOLIS – Steven Scott Gordon, 53, of Curtice, Ohio has been charged by a superseding indictment with production of child pornography announced Acting U.S. Attorney Joseph. H Thompson.
According to court documents, the defendant posed online as a 20-year-old woman to publish online erotica about the sexual abuse of children. The defendant, using his alias, encouraged and directed a Minnesota man to create images and videos of sexual abuse of a child in Minnesota.
According to court documents, Steven Scott Gordon’s electronic devices were obtained from the FBI in Ohio. Investigators found Child Sexual Abuse Material (CSAM) on the defendant’s computer, including CSAM that was produced by the Minnesota man who transmitted them to Gordon.
“Child sexual predators are among the dangerous of criminal defendants,” said Acting United States Attorney Joseph H. Thompson. “Anyone who victimizes and sexually abuses Minnesota children should be prepared to serve decades in federal prison.”
“Every child deserves a safe and innocent childhood,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Gordon’s heinous actions shattered that innocence and caused unimaginable harm. Protecting children and holding vile predators accountable is one of the FBI’s highest priorities. Anyone who exploits a child should expect to face the unflinching efforts of the FBI and our law enforcement partners."
Gordon was arraigned in U.S. District Court on May 21, 2025, before Magistrate Judge David T. Schultz, and was ordered to remain in custody pending further proceedings.
This case is the result of an investigation by the FBI in partnership with the Ottawa County Sheriff’s Office and the Rosemount Police.
Assistant U.S. Attorney William C. Mattessich is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Based Nonprofit and Affiliated Nursing Homes Agree to Pay $3.61M to Resolve False Claims Act LiabilityRead the Press Release
American Health Foundation (AHF), its affiliate AHF Management Corporation, and three affiliated nursing homes — Cheltenham Nursing & Rehabilitation Center (Cheltenham), The Sanctuary at Wilmington Place (Wilmington Place), and Samaritan Care Center and Villa (Samaritan) — have agreed to pay $3.61 million to resolve claims related to billing Medicare and Medicaid for grossly substandard skilled nursing services between 2016 and 2018. AHF is a nonprofit corporation that is headquartered in Dublin, Ohio, and owns and controls nursing homes in Ohio and Pennsylvania. Cheltenham is a 255-bed nursing home located in Philadelphia, Pennsylvania; Wilmington Place is a 63-bed nursing home located in Dayton, Ohio; and Samaritan is a 56-bed nursing home located in Medina, Ohio.
“Nursing homes are expected to provide their residents, which include some of our most vulnerable citizens, with quality care and to treat them with dignity and respect,” said Deputy Assistant Attorney General Brenna Jenny of the Justice Department's Civil Division. “The Department will not tolerate nursing homes — or their owners or managing entities — abdicating these responsibilities and seeking taxpayer funds to which they are not entitled.”
The United States’ complaint, filed in June 2022, alleged that the aforementioned three AHF nursing homes provided grossly substandard services that failed to meet required standards of care in various ways. For example, the United States alleged that each facility failed to follow appropriate infection control protocols and had problems maintaining adequate staffing levels. The United States also alleged that Cheltenham housed its residents in a dirty, pest-infested building; gave its residents unnecessary medications, including antibiotic, antipsychotic, antianxiety, and hypnotic drugs; deprived its residents of their dignity by subjecting them to verbal abuse, leaving them without meaningful activities or stimulation, and failing to safeguard their possessions, including money, clothing, and other personal items; and failed to provide needed psychiatric care. The United States similarly alleged that Wilmington Place had repeated failures relating to resident mediations, including the provision of unnecessary drugs, and persistently failed to create and maintain crucial resident care plans and assessments. Finally, the United States alleged that Samaritan had repeated failures related to resident care plans and assessments, and housed residents in a building and on grounds that often were not safe and sanitary.
Contemporaneously with the settlement announced today, the AHF entities agreed to enter into a chain-wide, quality of care Corporate Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General, which will remain in effect for five years and address quality of care and resident safety within the AHF entities’ skilled nursing facilities.
The case is captioned United States v. American Health Foundation Inc.; AHF Management Corporation; AHF Montgomery Inc. doing business as Cheltenham Nursing and Rehabilitation Center; and AHF Ohio Inc. doing business as The Sanctuary at Wilmington Place and doing business as Samaritan Care Center and Villa, Case No. 2:22-cv-02344 (E.D. Pa.).
The resolution obtained in this matter was the result of an effort by the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from the U.S. Department of Health & Human Services’ Office of Inspector General. This matter was handled by Fraud Section attorneys Ben Young and Susan Lynch.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Nine Defendants Charged with Federal Immigration CrimesRead the Press Release
Nine Defendants Charged with Federal Immigration Crimes
BIRMINGHAM, Ala. – A federal grand jury in Birmingham has charged nine individuals with immigration crimes, announced U.S. Attorney Prim Escalona.
The following defendants were indicted for illegally reentering the United States after having previously been deported:
- Jesus Malaquias Manuel-Marcos, 44, a citizen of Guatemala;
- Sergio Rogelio Sandoval-Luna, 26, a citizen of Mexico;
- Jose Medrano Aguilar-Rodriguez, 42, a citizen of Mexico;
- Jose Alberto Sanchez-Pineda, 35, a citizen of Mexico;
- Sergio Dominguez-Bautista, 42, a citizen of Mexico;
- Husaid Cruz-Santos, 28, a citizen of Mexico;
- Berenice Margarita Reyes-Rodriguez, 44, a citizen of Mexico; and
- Pedro Paz-Diaz, 36, a citizen of Guatemala
Elvin Geovanny Lopez-Diaz, 19, a citizen of Honduras, was charged with being an alien in possession of a firearm.
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). Operation Take Back America partners Homeland Security Investigations – Atlanta and Bureau of Alcohol, Tobacco, Firearms, and Explosives Nashville Field Division investigated these cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to 13 Months in Federal Prison Following Eighth Illegal Reentry and Seventh DeportationRead the Press Release
INDIANAPOLIS— Manuel Vasquez-Mongia (a/k/a Manuel Vasquez-Mungia), 32, of Mexico, has been sentenced to 13 months in federal prison followed by three years of supervised release after pleading guilty to illegal reentry of a removed alien.
According to court documents, between 2011 and 2015, Vasquez-Mongia was found to be illegally in the United States on seven separate occasions. Each time, he was ordered removed to Mexico by an immigration judge and prohibited from entering the United States for a period of five to twenty years.
On October 15, 2015, after illegally reentering the United States a seventh time, Vasquez-Mongia was found guilty of Transportation of Illegal Aliens and sentenced to six months in federal prison. Following release, he was again deported to Mexico and prohibited from entering the United States at any time.
Nearly a decade later, on September 11, 2024, Vasquez-Mongia was located and arrested in Indianapolis after entering the country illegally for the eighth time. This is his fifth federal conviction for immigration offenses.
“Vasquez-Mongia has repeatedly shown blatant disregard for the law,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Despite multiple deportations and warnings not to return, he reentered almost immediately—even bringing others with him. He clearly thought he could evade justice, but today’s sentence proves otherwise. We will continue working with ICE and our partners to locate and remove individuals who illegally enter our country.”
Immigration Customs and Enforcement and U.S. Marshals Service Great Lakes Regional Fugitive Task Force investigated this case. The sentence was imposed by U.S. District Judge James P. Hanlon.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Meredith Wood prosecuted this case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN)
###
Mexican National Sentenced for Illegal Reentry after DeportationRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler, U.S. District Judge, has sentenced a Mexican man convicted of Illegal Reentry after Deportation. The sentencing took place on June 2, 2025.
Anselmo Flores-Nava, 35, was sentenced to time served, which was approximately four months.
Flores-Nava is a non-citizen of the United States and a Mexican national. Flores-Nava was deported from the United States to Mexico in 2016. Flores-Nava was found back in the United States in January of 2025. Reentering the United States after deportation is a federal felony crime.
This case was investigated by the U.S. Department of Homeland Security Immigration and Customs Enforcement. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Flores-Nava was immediately remanded to the custody of the U.S. Marshals Service as he awaits removal action.
Mexican National Charged with Unlawful EntryRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Juan De Dios Tena-Granados, 39, of Mexico, has been charged by criminal complaint with entering the United States at a place or time other than as designated by immigration authorities.
On May 27, 2025, Tena-Granados appeared before United States Magistrate Judge Kevin J. Doyle, pleaded guilty, and received a time-served sentence. According to court documents, U.S. Border Patrol agents apprehended Tena-Granados after he was observed walking southbound in an area of Highgate, Vermont, that is frequently traveled by persons attempting to enter the United States illegally from Canada. During a post-arrest interview, Tena-Granados admitted to entering the country illegally.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.
The prosecutor is Assistant United States Attorney Michelle Arra. Tena-Granados is represented by William A. Vasiliou II , Esq.
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).
Meth and Marijuana User Sentenced to Five Years in Federal Prison for Possessing a Sawed-Off ShotgunRead the Press Release
An unlawful user of methamphetamine and marijuana who possessed a sawed-off shotgun that he fired was sentenced today to five years in federal prison.
Tyler Dunlap, age 33, from Bennett, Iowa, received the prison term after a January 3, 2025 guilty plea to one count of being an unlawful user of controlled substances in possession of a firearm.
In a plea agreement, Dunlap admitted that on October 30, 2023, he was involved in a verbal dispute with another person. That person left the home but saw Dunlap with a shotgun and called law enforcement. Deputies and officers arrived at the residence. As they approached the house going down a long lane, a deputy heard Dunlap fire the shotgun out the back of the house. Dunlap did not know that law enforcement officers were on the scene at the time he discharged the gun. After an officer contacted him, Dunlap left the house unarmed. Officers found the shotgun, a used shell, and drug paraphernalia in the house. Later tests revealed that Dunlap had methamphetamine and marijuana in his system at the time.
Dunlap was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Dunlap was sentenced to 60 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Dunlap 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 Anthony Morfitt and investigated by the Cedar County Sheriff’s Office and the Tipton Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-85.
Follow us on X @USAO_NDIA.
Managers of El Dorado Hills Company SweepsCoach Plead Guilty to Operating an Illegal Gambling BusinessRead the Press Release
James Mecham, 57, of Orem, Utah; Kurt Stocks, 49, of El Dorado Hills; and Heidi Edwards, 58, of El Dorado Hills; pleaded guilty today to operating an illegal gambling business, Acting U.S. Attorney Michele Beckwith announced.
According to court documents, Mecham, Stocks, and Edwards managed a series of businesses, collectively known as SweepsCoach, that engaged in and facilitated illegal gambling at locations throughout the United States, including in California and Arizona. SweepsCoach was based in El Dorado Hills.
Mecham, Stocks, and Edwards marketed the SweepsCoach gaming operation and entered into agreements with internet cafés for access to the SweepsCoach portal throughout the Eastern District of California and Arizona. The defendants helped the cafés set up gaming terminals in California and Arizona and provided technical service. Players used credits to play slot machine-style games on a video screen and could potentially win additional credits, which could be exchanged for money at the internet café. Internet gambling of this form is illegal under California and Arizona laws.
SweepsCoach clients would directly deposit the cash owed from the illegal gaming into bank accounts controlled by the defendants. Undercover law enforcement operations at several internet cafés in California and Arizona confirmed the use and conduct of SweepsCoach games.
Between Jan. 1, 2012, and Nov. 7, 2017, approximately $14 million in gaming proceeds was deposited into accounts controlled by Mecham, Stocks, and Edwards. The gross gaming receipts from California and Arizona totaled approximately $11 million.
This case is the product of an investigation by the IRS Criminal Investigation, the Federal Bureau of Investigation, and the California Department of Justice Bureau of Gambling Control, and the California Franchise Tax Board. Assistant U.S. Attorney Heiko Coppola is prosecuting the case.
Mecham, Stocks, and Edwards are scheduled to be sentenced by U.S. District Judge John A. Mendez on Oct. 21, 2025. Each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Man Admits Shooting at Undercover St. Louis Police OfficerRead the Press Release
ST. LOUIS – A St. Louis man on Tuesday admitted shooting at an undercover St. Louis Police officer who was investigating drug sales.
Anthony Stallworth, 25, pleaded guilty in U.S. District Court in St. Louis to one count each of possession with the intent to distribute methamphetamine, possession with the intent to distribute fentanyl, distribution of fentanyl and discharge of a firearm in furtherance of a drug trafficking crime.
Stallworth admitted selling 28 capsules containing fentanyl to an undercover officer on Oct. 10, 2019. Five days later, the officer contacted Stallworth to buy more fentanyl. Stallworth met with the officer, then had that officer follow him in his Mercedes SUV. At one point when the officer was stopped at a stop sign, Stallworth suddenly stopped, stuck a gun out of his window and fired two shots in the direction of the officer’s vehicle before speeding away.
Later, in the summer of 2023, officers spotted Stallworth engaging in drug transactions in the 4700 block of Wilcox Avenue in St. Louis. Officers conducted a court-approved search of an apartment there and found Stallworth along with 450 grams of meth, 86 grams of fentanyl, a 10mm pistol and drug paraphernalia.
Stallworth is scheduled to be sentenced on September 9. Due to mandatory minimum sentences, he will face at least 15 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Lowndes County Men Sentenced in OCDETF Drug Trafficking CaseRead the Press Release
Oxford, MS – Two Lowndes County men were sentenced yesterday for drug trafficking in Northern Mississippi.
According to court documents, Charles Stephen Farrar, Jr., of Columbus, Mississippi, pled guilty in the U.S. District Court for the Northern District to Mississippi to trafficking methamphetamine. Farrar was sentenced by U.S. District Court Judge Glen H. Davidson on Monday to over 11 years in prison for the charge. He was further sentenced to four years supervised release following his release from prison.
William Lyon, of Columbus, Mississippi, also pled guilty in the drug trafficking scheme. Lyons was sentenced by U.S. District Court Judge Glen H. Davidson on Monday to five years in prison for trafficking methamphetamine. He was further sentenced to four years supervised release following his release from prison.
“The sentences imposed by Judge Davidson should provide notice to drug dealers that there are consequences to selfishly peddling poison within their communities,” said U.S. Attorney Clay Joyner. “We are proud of the partnership with DEA, ATF, and our invaluable state and local allies at the Mississippi Bureau of Narcotics and the Lowndes County SO that has allowed us to remove illegal narcotics, and those who sell them, from our midst.”
“Methamphetamine tears lives apart. This sentencing, a result of dedicated work by our special agents and law enforcement partners, ensures these traffickers are held accountable for the damage they inflicted on Mississippi,” said DEA Assistant Special Agent in Charge Anessa Daniels-McCaw.
“This sentencing is the result of outstanding work and coordination by our local, state and federal partners,” said Department of Public Safety Commissioner Sean Tindell. “I commend the efforts of all the agencies involved for their dedication to ensuring justice is served and for their continued commitment to keeping our communities safe.”
“The ATF is working closely with local and state police agencies to combat the scourge of deadly illegal drugs in our communities,” said ATF Special Agent in Charge Joshua Jackson. “The sentence imposed yesterday sends a message that we will continue to focus efforts on repeat offenders so we can remove more violent criminals from our streets and keep our neighborhoods safe as the top priority for ATF.”
The Drug Enforcement Administration, the Lowndes County Sheriff’s Department, Mississippi Bureau of Narcotics, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Clyde McGee prosecuted the case.
This investigation and resulting case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also a 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.
Leader of Lane County Drug Trafficking Cell Unlawfully Residing in Oregon Sentenced to Federal Prison for Role in Conspiracy to Distribute the Largest Seizure of Methamphetamine in Oregon State HistoryRead the Press Release
EUGENE, Ore.— The leader of a Lane County, Oregon, drug trafficking cell was sentenced to federal prison today for possessing 384 pounds of methamphetamine, the largest single seizure of methamphetamine in Oregon State history and valued at over a million dollars.
Martin Manzo Negrete, 51, a Mexican national unlawfully residing in Lane County, was sentenced to 180 months in federal prison and five years’ supervised release.
According to court documents, in October 2020, law enforcement began investigating the Manzo-Mares cell for its role in trafficking large quantities of methamphetamine from California to Oregon for distribution and sale in and around Lane County. The drug trafficking organization transported methamphetamine from Southern California to Oregon where it was stored, divided, and distributed into the community.
Investigators learned that Manzo Negrete, who has a long history of drug trafficking and previously served 14 years in federal prison, sold several pounds of methamphetamine to street-level dealers on a weekly basis. Manzo Negrete was identified as the cell’s leader, and was responsible for coordinating the receipt, storage, and distribution of methamphetamine in and around Lane County.
On September 13, 2021, Manzo Negrete and five associates were charged by criminal complaint with conspiring to possess methamphetamine with the intent to distribute.
On September 15, 2021, as part of a coordinated law enforcement operation, law enforcement executed federal search warrants at multiple locations in Lane County, including a storage unit containing 384 pounds of methamphetamine. In addition to methamphetamine, law enforcement seized 14 firearms—some of which were stolen—and more than $76,000 in cash. Manzo Negrete and four associates were arrested, and the fifth associate was arrested later.
On March 4, 2025, Manzo Negrete pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
In addition to Manzo Negrete, all five co-conspirators have pleaded guilty and been sentenced to federal prison for their involvement in the conspiracy.
This case was investigated by the U.S. Drug Enforcement Administration (DEA), with assistance from the Springfield Police Department, the Eugene Police Department, and the Linn Interagency Narcotics Enforcement (LINE) Team. It was prosecuted by Nicholas D. Meyers and William M. McLaren, Assistant U.S. Attorneys for the District of Oregon.
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.
Leader of Drug Organization That Trafficked Narcotics Shaped Like Candy Sentenced to Nearly Two Decades in PrisonRead the Press Release
BOSTON – A Lynn man was sentenced on May 30, 2025 in federal court in Boston for leading a large-scale drug trafficking organization (DTO) on the North Shore of Massachusetts. In November 2023, millions of doses of fentanyl and methamphetamine laced pills and powder with street value estimated to be over $7 million, were seized from a stash location and clandestine laboratory used by organization.
Emilo Garcia, a/k/a “Six,” 27, of Lynn, was sentenced by U.S. District Court Judge Patti B. Saris to 18 years in prison, to be followed by five years of supervised release. In February 2025, Garcia pleaded guilty to one count of conspiracy to distribute controlled substances and possess controlled substances with intent to distribute, one count of possession of controlled substances with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime. Garcia was charged in November 2023 along with co-conspirators Sebastien Bejin and Deiby Felix. The defendants were later indicted by a federal grand jury in December 2023.
In July 2023, an investigation into an overdose death in Salem led investigators to a DTO led by Garcia, Felix and Bejin. On Nov. 1, 2023, searches were conducted at four locations in Lynn that were identified as locations frequented by Garcia and Bejin. The searches resulted in what is believed to be, one of the largest single-location seizures of fentanyl and methamphetamine in Massachusetts and the region. The seizure included nine kilograms (20 pounds) of pink heart shaped fentanyl-laced pills pressed to look like candy. Additional narcotics and five firearms were also seized. During the course of the investigation over 75 kilograms (198 pounds) of fentanyl and methamphetamine was seized, along with multiple additional kilograms of cocaine and dozens of kilograms of cutting agents, including xylazine, that is used to adulterate controlled substances.
In total, an estimated eight million individual doses of fentanyl and methamphetamine laced pills and powder was seized. The street value is believed to be upwards of $8 million.
A search of Felix’s residence resulted in the seizure of more than three kilograms (6.6 pounds) of pressed pills containing methamphetamine and fentanyl and a firearm. A subsequent search of the residence also revealed a clandestine drug laboratory that had been built into a small room in the basement. Multiple industrial pill presses, mixing equipment and other manufacturing paraphernalia and equipment were also recovered.
In May 2025, Bejin was sentenced to 12 years in prison, to be followed by five years of supervised release. Felix pleaded guilty in February 2025 and is awaiting sentencing.United States Attorney Leah B. Foley; Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Lynn, Lynnfield and Salem Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
Johnstown Man Sentenced for Role in Series of International Fraud ScamsRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, was sentenced in federal court to a total of 15 months in prison, to be followed by three years of supervised release, on his conviction of conspiracy to commit money laundering, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Stephanie L. Haines imposed the sentence on John M. Trabert, 55.
According to information presented to the Court, from in and around January 2020 through March 2022 in the Western District of Pennsylvania, Trabert conspired with others to commit money laundering by acting as a “money mule”—a person who, at someone else’s direction, receives and moves money obtained from victims of fraud—in a variety of romance, real estate, and gold scams. The scheme consisted of a co-conspirator outside of the United States directing victims, who believed they were investing in real estate, gold, or financial support for a fictional love interest, to send funds to one of Trabert’s bank accounts. At the direction of and in concert with his co-conspirator, Trabert then conducted financial transactions using proceeds of the fraud scams, with Trabert retaining a portion of each transaction as personal profit. Trabert laundered more than $700,000 from victims through his role in the conspiracy.
Assistant United States Attorney Arnold P. Bernard Jr. prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the United States Secret Service for the investigation that led to the successful prosecution of Trabert.
Jacksonville Woman Pleads Guilty to Credit Scheme and COVID Relief Fraud Involving the Paycheck Protection ProgramRead the Press Release
Jacksonville, Florida – United States Attorney Gregory W. Kehoe announces that Carnisha Maurica Rogers (30, Jacksonville) has pleaded guilty to one count of conspiracy to commit wire fraud, one count of false representation of a Social Security number (SSN) involving a line of credit scheme, and one count of wire fraud involving COVID relief fraud through the Paycheck Protection Program (PPP). Rogers faces up to 20 years in federal prison on each count involving wire fraud, up to 5 years’ imprisonment on the false representation of an SSN count, and payment of restitution to the victims she defrauded and to the United States government. Rogers has also agreed to forfeit $20,832, which is traceable to proceeds of the wire fraud offense involving COVID relief fraud. A sentencing date has not yet been set.
According to court documents, Rogers and her co-conspirators fraudulently obtained the SSNs of others. From November 2017 through September 2019, Rogers and others recruited individuals to obtain lines of credit at various businesses using the SSNs. After fraudulently obtaining the lines of credit, they obtained jewelry and other merchandise. Rogers and her co-conspirators resold some of the merchandise and lines of credit on social media platforms.
In May 2021, Rogers submitted a PPP loan application to a lender authorized by the Small Business Administration (SBA) to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Rogers operated her own business. Throughout the loan application Rogers made multiple false statements regarding her purported gross income and expenses associated with operating her business. In support of her PPP loan application, she submitted a false IRS Form 1040 - Profit or Loss from Business. It contained false statements about operating expenses, gross income, and wage expenditures for her purported business. In truth, Rogers’ business did not exist. In reliance on the false statements in her loan application, her application was approved, and she received a PPP loan totaling $20,832.
After receiving the PPP loan proceeds in her bank account, Rogers began making withdrawals and spending the funds on personal expenses. In October 2021, Rogers submitted a PPP loan forgiveness application to the SBA that included multiple false representations. In the application, she falsely claimed that she spent more than $18,000 on payroll costs and that the PPP loan proceeds were only used for eligible purposes. In reliance on her false statements, the SBA forgave the entire loan, plus accrued interest.
In March 2025, U.S. District Judge Wendy Berger sentenced a related defendant, Crystal Denean Harvell (37, Jacksonville), to two years in federal prison for conspiracy to commit wire fraud involving the line of credit scheme and wire fraud involving COVID Relief Fraud through the PPP. The court also ordered Harvell to pay $131,782.63 in restitution to the victims she defrauded and to the United States government.
This case was investigated by the Jacksonville Sheriff’s Office and the U.S. Secret Service – Jacksonville Field Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Jennifer M. Harrington.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by contacting the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Jacksonville Man Sentenced for Possession and Transfer of A Destructive DeviceRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Shane Allen Gibson (45, Jacksonville) to two years and six months in federal prison for possession of a destructive device and transfer of a destructive device to a convicted felon. Gibson pleaded guilty on January 29, 2025.
According to court documents, on April 20, 2023, Gibson possessed and transferred an improvised explosive bomb, a destructive device under federal law, to an individual who he knew to be a convicted felon. The destructive device was one of three homemade explosive devices given by Gibson to the convicted felon. Laboratory testing revealed that the device contained explosive powder and numerous screws and fasteners within an arial shell and pyrotechnic fuse. An examiner from the Bureau of Alcohol, Tobacco, Firearms and Explosives concluded that igniting the fuse would, after a short delay, cause blast, thermal, and fragmentation effects capable of causing damage, injury, and death to persons nearby.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Rachel Lasry.
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.
Iowa Man Sentenced to Prison for Threatening Gila River DetectiveRead the Press Release
PHOENIX, Ariz. – Malachi Reed, 21, of Des Moines, Iowa, was sentenced on June 2, 2025, by United States District Judge Sharad H. Desai to 24 months in prison, followed by three years of supervised release. On March 12, 2025, Reed pleaded guilty to Use of Interstate Commerce to Transmit a Threat.
On August 6, 2024, a juvenile was reported missing from the Gila River Indian Community. Through cooperation from the Gila River Police Department, Mesa Police Department, Des Moines Police Department, and the FBI, investigators learned that the juvenile had flown to Des Moines, Iowa, to meet Reed at the airport. A detective for the Gila River Police Department contacted Reed to ensure the juvenile’s safe return. Instead of assisting law enforcement, Reed threatened to kill the detective, his family, and other investigators involved in the case. Notwithstanding these threats, investigators continued their investigation and found the juvenile with Reed on August 16, 2024.
The FBI and the Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette M. Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-24-1408-PHX-SHD
RELEASE NUMBER: 2025-088_Reed# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Illinois Woman Sentenced to 24 Months in Prison and Ordered to Repay $352,300 in RestitutionRead the Press Release
HAMMOND – Valencia Franklin, age 52, of Lynwood, Illinois, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to wire fraud, a federal felony offense, announced Acting United States Attorney Tina L. Nommay.
Franklin was sentenced to 24 months in prison followed by 1 year of supervised release and ordered to pay $352,300 in restitution to the victim of the offense.
According to documents in the case, in 2021, Company A, a not for profit organization located in Merrillville, Indiana, administered and distributed federal Emergency Rental Assistance funds to local residents adversely affected by the COVID-19 pandemic. Franklin worked for Company A and defrauded the company by preparing fraudulent applications for Emergency Rental Assistance which falsely claimed her family members were landlords for certain properties, when in reality they had no connection to these properties. As a result of her false representations, Franklin caused hundred of thousands of dollars in fraudulent payments to be issued to herself and others.
This case was investigated by the United States Secret Service. The case was prosecuted by Assistant United States Attorney Kevin F. Wolff.
Illinois Man Sentenced to 24 Years in Federal Prison for Sex TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Niles, Illinois, man convicted of three counts of Sex Trafficking by Force, Fraud, or Coercion and one count of Money Laundering. The sentencing took place on May 30, 2025.
Daniel J. Kubica, a/k/a “Danny Haddreck,” 41, was sentenced to 24 years in federal prison, followed by five years of supervised release, and ordered to pay $400 in special assessments to the Federal Crime Victims Fund.
A federal grand jury indicted Kubica for the charges in March 2023. He pleaded guilty on February 28, 2025.
Starting no later than April 2021, Kubica created, organized, and maintained an illegal sex trafficking operation using multiple women in and around Rapid City. Kubica recruited women to engage in sex acts for money, which he then used to fuel his own fentanyl addiction. Kubica used multiple means of coercion and force to traffic the women. He committed acts of physical and sexual assaults and threatened to further assault the women if they tried to get out of the trafficking ring. Kubica supplied money, drugs, and alcohol to one victim to keep her engaged in trafficking even when he knew she was addicted to those substances. He also strangled and threatened to kill a victim and her 14-year-old sister and sexually assaulted another woman to get her to continue working for him. Between January 2022 and October 2023, Kubica used the currency exchange platform CashApp to conduct financial transactions related to his illegal sex trafficking operation. He would receive payments via CashApp from either the men who purchased sex with the sex trafficking victims, or from the victims themselves after they had engaged in sexual activity with the men.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations, Box Elder Police Department, Rapid City Police Department, Pennington County Sheriff’s Office, and South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case.
Kubica was immediately remanded to the custody of the U.S. Marshals Service.
Illegal immigrant gets 12 years in prison for his part in India-based fraud targeting elderly victims across the MidwestRead the Press Release
EAST ST. LOUIS, Ill. – An illegal immigrant from India got 12 years in prison for his role in an imposter scam that defrauded elderly victims in three states out of more than $400,000.
In February, a federal jury convicted Nirav B. Patel, 44, an Indian citizen, of one count of conspiracy to commit wire and mail fraud, three counts of wire fraud, and one count of illegal entry into the U.S. by an alien.
“This illegal alien admitted that he came to Illinois because the state would give him a driver’s license, and then he used that license to steal from the elderly all across the Midwest,” said U.S. Attorney Steven D. Weinhoeft. “We will continue to do all we can to remove this criminal element from our country.”
In an imposter scam, fraudsters pose as government officials to manipulate and exploit elderly victims for money. This scheme targeted elderly victims with text messages and emails purportedly warning that their Amazon accounts had been compromised. When the victims followed up on the messages, they were redirected to scammers posing as federal agents who convinced the victims that they were victims of identity theft who needed to withdraw their life savings to be held in phony U.S. Treasury or FTC trust accounts for safekeeping.
In reality, the money was stolen and ultimately transferred to accounts controlled by the scammers in India. The fraudsters kept the victims on the hook by calling them constantly, sometimes for up to 12 hours a day. The scammers also threatened victims with criminal liability if they told their friends or family what was going on.
Patel traveled to the elderly victims’ residences to pick up cash and assets to support the crime. Trial testimony established that, in one instance, Patel picked up $177,000 in gold bars from an elderly resident at her assisted living facility, even though she was pushing a walker and on oxygen.
In addition to the fraud charges, Patel was convicted for entering the U.S. illegally. Evidence showed that Patel snuck into the U.S. near Vancouver before connecting with the fraudsters in Georgia. Patel’s fraud operation was based in the Chicago, where he could get an Illinois driver’s license despite being in the U.S. unlawfully. From there, he drove hundreds of miles through Wisconsin, Illinois, and Indiana to take money and gold from elderly victims on behalf of the fraud scheme.
In imposing the 12-year sentence, the Court rejected Patel’s claim that he had no idea what was going on, noting the scammers entrusted Patel with hundreds of thousands of dollars at a time. These scams need people on the ground in the U.S. in order to be successful, the court continued, and those willing to help them steal from elderly victims should receive stiff sentences to deter others from doing the same thing in the future.
“This case highlights the serious public safety risks posed by individuals who enter the United States illegally and exploit our systems to target some of the most vulnerable among us,” said ICE Homeland Security Investigations Chicago Special Agent in Charge Matthew Scarpino. “HSI remains committed to identifying and dismantling transnational criminal schemes, especially carried out by perpetrators who flout our immigration laws to defraud and target elderly Americans. HSI will continue working with our partners to ensure that those who abuse our country’s generosity are held accountable.”
The Federal Trade Commission reported in March 2025 that imposter scams are now the most common type of consumer fraud against Americans. If you or a loved one has been a victim of this kind of fraud, call the National Elder Fraud Hotline by dialing 1-833-372-8311.
The case was investigated by Homeland Security Investigations, the Edwardsville Police Department, the Merrill Wisconsin Police Department, the Lincoln County Wisconsin Sheriff’s Office, and the Franklin Indiana Police Department.
Assistant U.S. Attorneys Peter T. Reed and Steve Weinhoeft prosecuted the case.
Illegal alien sentenced for stealing U.S. citizen’s identityRead the Press Release
HOUSTON – A 42-year-old Mexican national who illegally resided in Houston has been sentenced for fraudulently using a passport and identification belonging to a U.S. citizen, announced U.S. Attorney Nicholas J. Ganjei.
Carlos Bedolla Sanchez pleaded guilty March 18.
U.S. District Judge Keith P. Ellison has now ordered Sanchez to serve 16 months for fraudulently using a passport and 24 months for using the identification of a U.S. citizen. The sentences will run consecutively. At the hearing, the court heard additional information that Sanchez was previously convicted for two felony drug charges under the U.S. citizen’s identity and received 12 months for violating his term of supervised release to be served concurrently. Not a U.S. citizen, Sanchez is expected to face removal proceedings following his 40-month-term of imprisonment.
In imposing the sentence, the court noted the seriousness of the offense and that his previous penalties did not do enough good or make him repentant.
On May 19, 2022, Sanchez attempted to renew a passport he received in 2009 using the stolen identity of a U.S. citizen born in Puerto Rico. As part of the scheme, he submitted passport applications using the victim’s name, Social Security number, date of birth and birthplace, and falsely certified that he was a U.S. citizen or non-citizen national.
The investigation revealed Sanchez began using the victim’s identity in approximately March 2009 to obtain state driver’s licenses and other U.S. identification, including a passport.
He later admitted to making a false statement in the application and use of passport and aggravated identity theft.
He will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
Department of State - Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Anthony Franklyn prosecuted the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
Illegal alien sent to federal prison for trafficking over $1 million in cocaineRead the Press Release
McALLEN, Texas – A 41-year-old Mexican national illegally in the United States has been ordered to prison for possessing narcotics with the intent to distribute, announced U.S. Attorney Nicholas Ganjei.
Rolando Banda-Lucero pleaded guilty Oct. 31, 2024.
Chief U.S. District Judge Randy Crane has now ordered Banda-Lucero to serve 37 months in federal prison.
At the hearing, the court heard additional evidence Banda-Lucero did not have status to be in the country and got involved in narcotics trafficking for money. In handing down the sentence, Judge Crane noted the straightforward facts of the case and Banda-Lucero’s clear role as a courier. Not a U.S. citizen, he is expected to face removal proceedings following the sentence.
On Oct. 25, 2023, Banda-Lucero was to deliver narcotics in Pharr. Authorities conducted surveillance within a shopping center and observed a white work van pull into a parking spot.
Banda-Lucero exited the passenger side of the van and provided a duffel bag over to who he thought was the purchaser. The bag contained 20 bundles which had an approximate weight of 22.5 kilograms and tested positive for cocaine.
The drugs had an estimated street value of $1.2 million.
Banda-Lucero will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Jose A. Garcia prosecuted the case.
Houston doctor pays six figures to settle False Claims Act liability involving neurostimulator devicesRead the Press Release
HOUSTON – A 68-year-old Houston man has agreed to pay $390,082 to resolve allegations he submitted false claims to Medicare for the surgical implantation of neurostimulator electrodes, announced U.S. Attorney Nicholas J. Ganjei.
Dr. Benjamin Tiongson is a pain management doctor who practices in Houston, Sugar Land and Katy. Pain Reduction Center P.A. is an entity Tiongson used to conduct his medical practice.
From Dec. 7, 2021, to Dec. 14, 2022, Tiongson billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room. As a result, Medicare pays thousands of dollars per procedure.
However, neither Tiongson nor his staff performed these surgical procedures, according to the allegations.
Instead, patients allegedly received devices used for electro-acupuncture, which only involved inserting monofilament wire a few millimeters into patients’ ears and taping the neurostimulator behind the ear with an adhesive. All device placements took place in Tiongson’s clinic, not a hospital or surgical center, and no incision was made on a patient, according to the allegations.
The U.S. Attorney’s Office conducted the investigation with Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Laura E. Collins handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Hawaii Man Sentenced to 41 Years in Federal Prison for Traveling to Oregon to Sexually Abuse Two ChildrenRead the Press Release
EUGENE, Ore.—A Captain Cook, Hawaii man pleaded guilty and was sentenced to federal prison today for sexually abusing two Oregon children and sharing videos of the abuse online.
Benjamin Victor Houghton, 29, was sentenced to 495 months in federal prison and a lifetime term of supervised release. The sum of restitution he must pay to the victims will be determined at a later date.
“Preying on children is unforgivable. Today’s lengthy sentence illustrates the heinous nature of Houghton’s conduct and sends a strong message to child predators that they will be held accountable,” said Nathan J. Lichvarcik, Chief of the Eugene and Medford Branches of the U.S. Attorney’s Office for the District of Oregon. “The U.S. Attorney’s Office thanks the FBI and HSI for working with us to bring this defendant to justice.”
“Investigations into the production and distribution of child sexual abuse material remains a very high priority for the FBI,” said FBI Portland Special Agent in Charge Doug Olson. “Houghton's sentence for these heinous crimes will keep him from perpetrating more harm to children in our communities. We remain committed to pursuing these criminals, no matter where they may be.”
“This 41-year sentence underscores our untiring commitment in protecting children and ensuring justice for victims of these horrific crimes,” said ICE Homeland Security Investigations Seattle Acting Special Agent in Charge Matthew Murphy. “This outcome was made possible through the dedicated efforts of our agents and close collaboration with our federal partners. Together, we will continue to pursue and hold accountable those who exploit and harm the most vulnerable among us.”
According to court documents, in late 2022, FBI agents received information from the National Center for Missing and Exploited Children (NCMEC) regarding a video depicting child sexual abuse. While the FBI worked to identify the children and abuser, a Homeland Security Investigations (HSI) agent discovered another video which showed an adult male, later identified as Houghton, sexually abusing one of the children. Investigators learned Houghton recorded the video in August 2021, when Houghton first traveled to Oregon to sexually abuse the children, and shared the video online in December 2021.
During the investigation, agents learned that Houghton conducted weekly piano lessons with the children virtually from his residence in Hawaii. On several occasions, Houghton used the virtual piano lessons to persuade the children to perform sexual acts, which he recorded. Additionally, between 2021 and 2022, Houghton traveled from Hawaii to Oregon twice to sexually abuse the children and record the abuse.
On February 24, 2023, FBI agents arrested Houghton and executed a search warrant on his residence. Investigators seized Houghton’s electronic devices and located approximately 1,285 images and 135 videos of child sexual abuse material, including a video recorded in November 2022, which showed Houghton sexually abusing one of the children.
On March 7, 2023, a federal grand jury in Eugene, Oregon, returned a five-count indictment charging Houghton with using a minor to produce a visual depiction of sexually explicit conduct and aggravated sexual abuse.
Houghton pleaded guilty today to one-count of using a minor to produce a visual depiction of sexually explicit conduct and one-count of aggravated sexual abuse.
This case was investigated by the FBI Portland and Honolulu Field Offices and HSI. It was prosecuted by William M. McLaren, Assistant United States Attorney for the District of Oregon, in coordination with the Lane County District Attorney’s Office.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.
The FBI Child Exploitation Task Force (CETF) conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Guatemalan Man with Four OUI Offenses Sentenced to over Two Years in Prison for Unlawful ReentryRead the Press Release
BOSTON – A Guatemalan man was sentenced today in federal court in Boston for unlawful reentry.
Edilzar Morales-Barillas, 36, was sentenced by U.S. District Judge Nathaniel M. Gorton to 29 months in prison. The defendant is subject to deportation upon completion of the imposed sentence. In January 2025, Morales-Barillas pleaded guilty to one count of unlawful reentry. Morales-Barillas was charged on July 31, 2024.
Morales-Barillas is a citizen of Guatemala who was deported from the United States on May 14, 2021. Sometime after his May 2021 removal, Morales-Barillas unlawfully reentered the United States. Immigration authorities became aware of Morales-Barillas’ unlawful presence in the United States on May 27, 2023, following his arrest for a fourth offense of operating under the influence of alcohol.
United States Attorney Leah B. Foley and Patricia H. Hyde, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Criminal Division prosecuted the case.
Gary Man Sentenced to 68 Months in PrisonRead the Press Release
HAMMOND- Antawan Smith, 35 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a convicted felon in possession of a firearm, announced Acting United States Attorney Tina L. Nommay.
Smith was sentenced to 68 months in prison followed by 12 months of supervised release.
According to documents in the case, on February 26, 2024, law enforcement responded to a complaint of an armed man near a house. Upon their arrival, officers encountered Smith and recovered a loaded semi-automatic pistol with an extended magazine from him. He attempted to flee but was apprehended. Smith’s criminal history revealed that he has 5 prior felony convictions, and as such, is prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Fort Worth Man Sentenced to 50 Years for Producing Child PornographyRead the Press Release
A 36-year-old Fort Worth man who produced child pornography was sentenced on May 30, 2025, to 50 years in federal prison, announced Nancy Larson, Acting United States Attorney for the Northern District of Texas.
Jamie Hackney pled guilty to a two-count indictment charging him with the production and transportation of child pornography in February 2025. He was sentenced on Friday to 600 months in federal prison by United States District Judge Reed O’Connor.
According to court documents, the National Center for Missing and Exploited Children issued a Cybertip to the Fort Worth Police Department (FWPD) regarding images that were uploaded to Hackney’s Google account. Through their investigation, FWPD uncovered forensic evidence of Hackney using a minor to create and subsequently transport child pornography.
The Federal Bureau of Investigation and the Fort Worth Police Department conducted the investigation. The case was prosecuted by Assistant United States Attorney Allyson Monte.
Former Police Officers Plead Guilty to Federal Charges in Connection with Insurance Fraud SchemeRead the Press Release
Greenbelt, Maryland – Two Prince George’s County men have pleaded guilty to federal charges in connection with an auto-insurance fraud scheme. Michael Anthony Owen, Jr., 36, of Accokeek, Maryland pled guilty to falsification of records, and Jaron Earl Taylor, 31, of Ft. Washington, Maryland, pled guilty to conspiracy to commit wire fraud.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty pleas with Acting Special Agent in Charge Amanda M. Koldjeski, Federal Bureau of Investigation (FBI) – Baltimore Field Office, and Chief Malik Aziz, Prince George’s County Police Department (PGPD).
According to the guilty pleas, between August 2018 and February 2020, Owen and Taylor, who were PGPD and Anne Arundel County Policy Department officers, respectively, at the time, conspired with fellow police officers to engage in mail and wire fraud. Owen and Taylor, along with officers Candace Tyler, Conrad D’Haiti, and Davion Percy, and others, devised a scheme for insurance companies to pay out the remaining financing costs of unwanted vehicles.
Members of the conspiracy reported fictitious losses to insurers to obtain money or avoid paying off vehicles that were now worth less than the amount owed on them. The co-conspirators used their statuses as police officers to assist each other’s claims by writing false police reports. Then co-conspirators submitted fictitious police reports to insurers to validate the claim. The false police reports were intended to impede, obstruct, or influence subsequent investigations of the false insurance claims.
In August 2018, Owen and Taylor staged the theft of Taylor’s Chevrolet Tahoe. After Taylor filed a fraudulent police report, Owen and Taylor stripped the vehicle and drove it deep into the woods of a Maryland State Highway property near Largo, Maryland. Taylor then made a false claim to the United Services Automobile Association (USAA) for the loss, for which USAA paid out a total of $38,670.
Then in January 2020, Owen assisted D’Haiti in avoiding payment on the loan balance of a Jaguar XKR. In cooperation with D’Haiti and Percy, Owen devised a scheme to fake the vehicle’s theft. On January 4, D’Haiti parked his Jaguar behind Marlow Heights Shopping Center where Percy worked as police chief.
D’Haiti then paid Percy $350 to arrange for another co-conspirator to tow the vehicle and extensively vandalize it for the purpose of creating a total insurance loss. Tyler subsequently filed the fictitious police report which D’Haiti used to substantiate his claim against Liberty Mutual Insurance. In February 2020, Liberty Mutual paid the Jaguar’s lienholder, Navy Federal Credit Union, $17,585, on the false claim.
Additionally, in January 2020, Owen and Taylor assisted with disposing of an Infiniti sedan to help a co-conspirator avoid making further payments on the vehicle while on extended overseas duty. The co-conspirator gave Taylor $1,000 via CashApp to stage the theft. Taylor then forwarded the money to Owen who filed a false police report with PGPD, stating the vehicle was stolen.
In reality, Owen, Taylor, and others moved the car to the top floor of a Camp Springs, Maryland apartment-complex parking garage. The co-conspirators attempted to conceal the car’s identity by removing the vehicle’s license plates and replacing them with different ones registered to another vehicle. Then the owner and co-conspirator filed a claim with GEICO that was eventually denied on grounds of fraud.
Owen faces a maximum sentence of 20 years in federal prison. Taylor faces a maximum sentence of three years in federal prison if the court fully accepts the plea deal. Both sentencings are scheduled for Tuesday, September 23. Taylor’s sentencing is at 10:30 a.m., and Owen’s sentencing is at 2:30 p.m.
U.S. Attorney Hayes commended the FBI and PGPD for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Joseph Baldwin and LaShanta Harris who are prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
# # #
Former Plaintiffs’ Lawyer Tom Girardi Sentenced to More Than 7 Years in Prison for Swindling Tens of Millions of Dollars from Injured ClientsRead the Press Release
LOS ANGELES – Disbarred plaintiffs’ personal injury attorney Thomas Vincent Girardi was sentenced today to 87 months in federal prison for leading a years-long scheme in which he embezzled tens of millions of dollars of settlement money that belonged to his clients, some of whom awaited payment for treatment of severe physical injuries.
Girardi, 86, formerly of Pasadena and who now resides in Seal Beach, was sentenced by United States District Judge Josephine L. Staton also ordered Girardi to pay a $35,000 fine and $2,310,247 in restitution. Judge Staton ordered Girardi to surrender to federal authorities no later than July 17.
Girardi was found guilty by a jury in August 2024 of four counts of wire fraud.
“This self-proclaimed ‘champion of justice’ was nothing more than a thief and a liar who conned his vulnerable clients out of the millions of dollars,” said United States Attorney Bill Essayli. “My office will vigorously prosecute corrupt lawyers and those who assist them in criminal activities.”
“This sentencing brings a level of recompense for countless victims of Mr. Girardi’s long-running scheme to enrich himself on the backs of clients who trusted him in some of their worst days,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Girardi thought he could outsmart his victims and investigators, but this sentencing demonstrates criminals cannot evade the unrivaled acumen of IRS-CI special agents in following the money, as well as the effectiveness of our partnerships with fellow law enforcement organizations like the FBI.”
“Mr. Girardi, once a self-proclaimed ‘legal legend’ who purported to fight corporate greed, will now find himself on the opposite end of justice as he serves out his lengthy prison sentence,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Years of hard work went into this case by agents and prosecutors motivated to pursue justice for the victims who were betrayed by Girardi after putting their trust in his corrupt law firm in their time of need and while enduring personal hardship.”
A once-powerful figure in California’s legal community, Girardi ran the now-defunct downtown Los Angeles law firm Girardi Keese. For years, Girardi misappropriated and embezzled millions of dollars from client trust accounts at his law firm. The scheme involved defendant Girardi stealing millions of dollars in client settlement funds and failing to pay Girardi Keese clients – some of whom had suffered serious injuries in accidents – the money they were owed.
In carrying out his criminal conduct, from October 2010 to late 2020, Girardi operated Girardi Keese like a Ponzi-scheme by providing a litany of lies for failure to pay clients and directing law firm employees, including co-defendant and former Girardi Keese CFO Christopher Kazuo Kamon, to make incremental payments of newly obtained settlement funds to previously defrauded clients or using the new funds to pay other unrelated expenditures.
Girardi sent lulling communications to the defrauded clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met. These bogus requirements included addressing supposed tax obligations, settling bankruptcy claims, obtaining supposedly necessary authorizations from judges, and satisfying other debts.
Girardi also diverted tens of millions of dollars from his law firm’s operating account to pay illegitimate expenses, including more than $25 million to pay the expenses of EJ Global, a company formed by his wife related to her entertainment career, as well as spent millions of dollars of Girardi Keese funds on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs.
At the end of 2020, as Girardi and his law firm faced mounting legal problems related to his years-long theft of client funds, Girardi Keese was forced into involuntary bankruptcy. The State Bar of California disbarred Girardi in July 2022.
Relatedly, co-defendant Kamon, 51, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest on a federal criminal complaint, pleaded guilty in October 2024 to two counts of wire fraud. Kamon, the long-time head of the accounting department at Girardi Keese, aided and abetted Girardi’s fraud scheme and embezzled millions of dollars from Girardi Keese itself for his own benefit.
On April 11, Kamon was sentenced to 121 months in custody and ordered to pay $8,903,324 in restitution. Kamon has been in federal custody since November 2022.
Kamon has agreed to plead guilty to federal fraud charges in Chicago where he is charged along with former Girardi Keese lawyer David R. Lira, Girardi’s son-in-law. Trial in that case is scheduled to start on July 14. Girardi was dismissed from the Chicago case because of his conviction and sentencing in this case.
IRS Criminal Investigation and the FBI investigated this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this case.
Former New Jersey Resident Sentenced to 72 Months for $4.7 Million ‘Up Front’ Fee SchemeRead the Press Release
TRENTON, N.J. – A Florida man who previously resided in New Jersey was sentenced to 72 months’ imprisonment for defrauding approximately 33 victims out of more than $4.7 million through an “upfront-fee” scheme that spanned nearly a decade, U.S. Attorney Alina Habba announced.
John Sabo, 71, formerly of Spring Lake, New Jersey, previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of wire fraud.
According to documents filed in the case and statements made in court:
From in or around November 2014 through at least in or around August 2023, Sabo fraudulently induced his multiple victims to collectively pay millions of dollars in “up-front” or advance fees to his company, Bankers Capital LLC, in exchange for the promise to provide various forms of collateral and/or secure millions of dollars in financing for each of the victims’ business projects. However, neither Sabo nor Bankers Capital possessed or had access to the financing and collateral that Sabo promised.
Instead of using the victims’ money as promised, Sabo diverted millions of dollars out of Bankers Capital, primarily for personal expenses, which included payments to Sabo’s creditors, and to pay back other victims of the scheme. Even after he was charged by complaint in November 2022 with engaging in the wire fraud scheme, Sabo continued to provide false assurances to victims that they would receive the promised collateral or financing. In total, Sabo’s scheme resulted in $4,788,325 in losses to victims.
In addition to the prison term, Judge Shipp ordered Sabo to pay forfeiture and restitution to the victims of his scheme, each in the total amount of $4,788,325, and sentenced Sabo to 3 years of supervised release.
U.S. Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Jennifer Kozar and Carolyn Silane of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
###
Defense counsel: Michael Robertson, Esq.
sabo.information.pdfFormer Executive at Masonry Contractor Sentenced to Nearly Five Years in Prison for Conspiring to Bribe Amtrak Employee in Exchange for over $50 Million in Extra Work on 30th Street Station ProjectRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Donald Seefeldt, 65, of Wilmette, Illinois, was sentenced today by United States District Court Judge Wendy Beetlestone to 57 months' imprisonment, one year of probation, 59 hours of community service, and a $50,000 fine for conspiracy to commit federal program bribery.
Seefeldt was charged by information with that offense in November 2024 and pleaded guilty in February.
As presented in the information, on or about December 10, 2015, a masonry restoration contractor (the “Contractor”) was awarded a $58,473,000 contract by Amtrak to be the main contractor on a façade repair and restoration project at Amtrak’s 30th Street Station in Philadelphia.
Federal funding supplied approximately 90 percent of the money Amtrak used to pay the Contractor for the repair and restoration of the 30th Street Station façade.
Defendant Seefeldt was the Senior Executive Vice President of the Contractor with responsibility to provide executive oversight of the Contractor’s performance on the 30th Street Station façade project.
Lee Maniatis and Khaled Dallo, both charged elsewhere, were Vice Presidents of the Contractor, with responsibility to supervise the Contractor’s performance on the 30th Street Station façade project. Mark Snedden, also charged elsewhere, was the sole owner and president of the Contractor.
Amtrak Employee #1 was employed by Amtrak as the Project Manager on the repair and restoration project. In that capacity, Amtrak Employee #1 was responsible for communicating with the Contractor about the work being done on 30th Street Station. Amtrak Employee #1 was also responsible for reviewing the invoices, change orders, and requests for payment that the Contractor submitted to Amtrak. Amtrak Employee #1 had the power to approve or reject these invoices, change orders, and requests for payment. Although Amtrak Employee #1 did not have the singular authority to approve Amtrak payments to the Contractor, his approval was a critical step in that process.
The contract between Amtrak and the Contractor prohibited the defendant and other Contractor officials from “offer[ing] to any Amtrak employee, agent, or representative any cash, gift, entertainment, commission, or kickback for the purpose of securing favorable treatment with regard to award or performance of any contract or agreement.”
As detailed in the information and admitted to by the defendant, from in or about May 2016 through in or about November 2019, in Philadelphia, in the Eastern District of Pennsylvania, and elsewhere, Seefeldt conspired, combined, and agreed with others, including Amtrak Employee #1, Maniatis, Dallo, and Snedden to commit an offense against the United States; that is, to knowingly and corruptly give, offer, and agree to give, a thing of value to Amtrak Employee #1, intending to influence and reward Amtrak Employee #1 in connection with any business, transaction and series of transactions involving a thing of value of $5,000 or more.
Specifically, Seefeldt and the others, with the knowledge and agreement of Snedden, provided Amtrak Employee #1 with gifts and other things of value totaling approximately $323,686, including, among other things, paid vacations (including an approximately $19,000 trip to Ecuador and a $9,500 trip to India), jewelry (including an approximately $5,600 watch and later an approximately $11,000 watch), cash, dinners, a dog, entertainment, and transportation, to ensure that Amtrak Employee #1 used his power and influence to benefit the Contractor during the performance of the 30th Street Station Repair and Restoration Project.
In return for these gifts and other things of value, Amtrak Employee #1 allegedly used his position at Amtrak to access internal agency information available only to Amtrak employees about the 30th Street Station Project and shared this internal information with the defendant and other officials with the Contractor.
The information further alleges that Amtrak Employee #1 used his position at Amtrak to approve additional, more expensive changes to the 30th Street Station Repair and Restoration Project, thereby increasing the amount and value of the work to be performed by the Contractor. These additional expenses were reflected in a series of change orders or contract modifications. In total, Amtrak Employee #1 approved over $52 million of additional payments from Amtrak to the Contractor. Amtrak Employee #1 and officials with the Contractor, including defendant Seefeldt, falsely inflated the true costs of some of the work to be performed by the Contractor under these change orders, causing Amtrak to be substantially overbilled by over $2 million for the completion of the 30th Street Station Repair and Restoration Project.
“Seefeldt conspired to bribe an Amtrak employee, to benefit himself and his colleagues,” said U.S. Attorney Metcalf. “In padding their pockets at the government’s expense, they were, in fact, victimizing U.S. taxpayers. Every dollar lost to federal program fraud means one less for a vital program or public priority.”
“Stealing and misappropriating federal funds is not just a criminal act; it is a betrayal of the trust placed in us by the communities we serve, and it damages the integrity of the systems they depend on,” said Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Division. “Bribery directly undermines our rule of law. In partnership with our colleagues, the FBI is unwavering in its commitment to eradicating public corruption and ensuring that those who abuse their positions for personal gain are held accountable.”
“Our work on this case sends a strong message to all contractors about their obligation to operate legally and ethically,” said Michael J. Waters, Special Agent in Charge for the Amtrak Office of Inspector General Eastern Area Field Office. “We remain committed to investigating acts of bribery or other illegal or unethical conduct to ensure Amtrak’s funds are protected. We’re proud of our joint efforts with the FBI and DOT OIG who supported this investigation and appreciative of the support from the Eastern District of Pennsylvania U.S. Attorney’s Office.”
“Today’s sentencing sends a clear message: if you defraud our nation’s infrastructure system, you will be caught and held accountable,” said Brian C. Gallagher, Special Agent in Charge, Department of Transportation Office of Inspector General, Northeastern Region. “We’re committed to working with our law enforcement and prosecutorial partners to protect taxpayer dollars and uphold the integrity of federally funded programs.”
The case was investigated by the FBI, the Amtrak Office of Inspector General, and the Department of Transportation Office of Inspector General and is being prosecuted by Assistant United States Attorney Jason Grenell.