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Tuesday 22 April 2025
Felon Who Hid Loaded, Fully Automatic Handgun in 6-Year-Old Nephew’s Pants Sentenced to Nearly Four Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Darneko Yates, 30, of Richmond, Calif., was sentenced today to 46 months in federal prison for possession of a firearm by a person convicted of a felony. U.S. District Judge Araceli Martínez-Olguín handed down the sentence.
Yates was found guilty of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g), following a one-day bench trial on Jan. 17, 2025. The evidence at trial established that on Aug. 27, 2023, police officers stopped Yates for a vehicle infraction. Yates’s young nephew and niece were in the backseat of his car. Police officers discovered that Yates possessed a loaded automatic handgun, which was concealed in the front of his six-year-old nephew’s pants. At the time, Yates was on parole following three felony convictions for carjacking, solicitation to commit murder, and possessing a loaded firearm.
In addition to the prison term, Judge Martinez-Olguín ordered Yates to serve three years of supervised release.
Acting United States Attorney Patrick D. Robbins and FBI Special Agent in Charge Sanjay Virmani made the announcement.
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 of Justice 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.
Assistant U.S. Attorneys Leif Dautch and Richard Ewenstein are prosecuting this case. The prosecution is the result of an investigation by the FBI, the Contra Costa County Sheriff’s Office, and the San Pablo Police Department.
Federally Licensed Firearms Dealer and Two Conspirators Sentenced to Federal Prison for Trafficking FirearmsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced three individuals for their roles in a gun trafficking conspiracy. Matthew L. Stephen Easton (35, Melrose) was sentenced to 11 years and 8 months in federal prison for firearms trafficking. Ernesto Vazquez (23, Kissimmee) and Derick Yamir Perez Diaz (22, Orlando) were each sentenced to 11 years in federal prison for conspiracy to traffic firearms. All three previously pleaded guilty.
According to the plea agreements, Easton, a federally licensed firearms dealer, supplied Perez Diaz with large quantities of firearms, despite knowing that Perez Diaz was dealing in firearms without a license. Perez Diaz, in turn, trafficked those firearms to Vazquez who resold them to an individual who smuggled them out of the country. Between October and December 2023, more than 100 Glock pistols and AK-47 rifles were trafficked, including those pictured below:
Additionally, Vazquez and Perez Diaz admitted to trafficking machinegun conversion devices:
On April 18, 2024, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives executed a search warrant at Vazquez’s residence. Inside, they found multiple firearms, stockpiles of ammunition, and grenades:
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service, and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Noah P. Dorman and Dana E. Hill.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal Jury Finds Two Men Guilty of Conspiracy to Commit Wire and Bank Fraud and Conspiracy to Commit Money LaunderingRead the Press Release
Memphis, TN – After a four-day trial, a federal jury found Texas men Stanley Anyanwu, 41, and Vitalis Anyanwu, 42, guilty of one count of conspiracy to commit wire fraud and bank fraud and one count of conspiracy to commit money laundering. Interim United States Attorney Joseph C. Murphy, Jr. announced the verdict today.
According to information presented in court, in February 2022, the City of Memphis was victim to a business email compromise (BEC) scam causing a legitimate payment of $773,695.45 to go not to the intended contractor recipient but to a bank account controlled by a sophisticated fraud conspiracy. The City realized what had happened within days but was unable to recover the funds because the conspiracy had already swept the funds away into a large money laundering network. The FBI investigated and identified Stanley and Vitalis Anyanwu as two members of the conspiracy. During the investigation, the FBI also identified victims of romance scams who had been taken advantage of by the same conspiracy.
The defendants’ primary role in the conspiracy was to act as knowing “money mules” for internet-based fraud scams.
A BEC is a type of computer intrusion that occurs when an employee of a business or similar entity is fooled into interacting with an email message that appears to be, but is not, legitimate. The email message usually contains either malware or fraudulent misrepresentations. The purpose of the intrusion is usually to access sensitive information or to defraud the victim entity.
A romance scam is a type of advance fee scam in which the operator of the scam uses the internet and social media platforms to target potential victims who are seeking friends or romantic companionship. The scammer hides his or her true identity by posing as a potential friend or romantic partner and entering into an online relationship with the victim. Eventually, the scammer begins to ask for emergency financial assistance of some kind. If the victim sends money, the scammer will present an escalating series of events and false claims necessitating increasingly larger amounts of money.
A money mule is someone who knowingly or unknowingly transfers or moves fraudulently acquired money on behalf of someone else. Money mules are important parts of fraud conspiracies because, among other reasons, they provide the conspiracy with a way to disguise the criminal origins of fraud proceeds.
“These defendants defrauded multiple individuals and entities resulting in a significant loss to the City of Memphis,” said Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office. “The FBI and our partners are committed to holding accountable those who seek to line their own pockets through business email compromise, romance, and money laundering schemes, and will continue to work tirelessly to investigate those who engage in criminal activity resulting in financial harm to members of our community.”
Sentencing is set to be held on July 18, 2025 before Chief United States District Judge Sheryl H. Lipman.
This case was investigated by the FBI.
Assistant United States Attorneys Scott Smith and Reid Manning prosecuted the case on behalf of the government.
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For more information, please contact the media relations team at [email protected]. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.
Federal Inmate Sentenced to Life in Prison for Savage Murder of Cellmate at Terre Haute Federal Correctional ComplexRead the Press Release
TERRE HAUTE— Joshua T. Mebane, 29, of Silver Spring, Maryland, has been sentenced to life in federal prison for first degree murder. Mebane previously pled guilty in open court on October 23, 2024.
According to court documents, in January of 2016, Joshua Mebane was an inmate at the Federal Correctional Complex in Terre Haute, Indiana, serving a 45-year sentence for first degree murder in the District of Columbia. Mebane was also later convicted of murder and attempted murder in Maryland, committed in 2012, for which he received multiple life sentences.
On January 26, 2016, inmate Michael Tucker moved into Mebane’s cell. Just two days later, correctional officers went to retrieve Mebane for a medical appointment and called for both inmates to be present at the cell door. According to policy, all inmates in the cell must be handcuffed before opening. As the officers again called for Tucker to be handcuffed, Mebane admitted “My cellie (cell mate) is dead… I killed my cellie on Wednesday.”
Officers entered the cell to investigate and found Michael Tucker lying face-up in the bottom bunk bed, covered by a blanket. His body was cold to the touch and without a pulse. Life saving measures were initiated by medics but were unsuccessful.
The medical examiner ruled the official cause of death to be asphyxiation and determined the manner of death as homicide.
“This life sentence reflects our office’s commitment to justice for all victims, including those who are incarcerated in federal correctional facilities. The horrific murder deserves one of the harshest penalties allowed under the law, and I sincerely hope that the completion of this prosecution brings some measure of closure and peace to Mr. Tucker’s family,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana.“The FBI is committed to ensuring the rights and dignity of every victim – no matter where the crimes occur. This kind of violence is inexcusable, and the sentence should serve as a powerful reminder there is no place in our society for such hate,” said FBI Indianapolis Acting Special Agent in Charge Dominique Evans. “The FBI will continue to work with our law enforcement partners to hold offenders accountable and send a clear message that the protection of all individuals from hate-driven violence remains a top priority.”
"Today's sentencing sends a clear message - those who threaten or harm others will be held accountable. The safety and security of our facilities will always be the FBOP’s top priority in our mission to ensure public safety,” said a BOP Spokesperson.
The Federal Bureau of Investigation and Bureau of Prisons investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Kyle M. Sawa and Meredith Wood, who prosecuted this case.
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Federal Grand Jury Indicts Murray Kentucky Man for Theft of Mail MatterRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on March 11, 2025, charging a local man with theft of mail matter.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburg Division, and Chief Samuel Bierds of the Murray Police Department made the announcement.
According to the indictment, Austin L. Jones, age 34, was charged with theft of mail matter. On or about December 18, 2024, Jones stole mail matter from residential mailboxes in Calloway County, Kentucky.
On April 21, 2025, Jones made an initial appearance before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, he faces a maximum sentence of 5 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the United States Postal Inspection Service, Bowling Green Office and the Murray Police Department.
Assistant U.S. Attorney Raymond McGee, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ecuadorian Man Charged with Transporting AliensRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Manuel Rolando Meza-Cambo, 34, of Los Rios Province, Ecuador, has been charged by criminal complaint with transporting illegal aliens.
On April 21, 2025, Meza-Cambo appeared before United States Magistrate Judge Kevin J. Doyle, who ordered that Meza-Cambo be detained during the pendency of this matter.
According to court records, Meza-Cambo attempted to pick-up four illegal aliens along Richford Road in Richford, Vermont, in the early morning hours of April 19, 2025. A member of the United States Border Patrol spotted Meza-Cambo’s minivan before he could pick up the aliens and followed the minivan. After the minivan stopped in the middle of road, investigating Border Patrol Agents then found two Mexican citizens and two Venezuelan citizens near the side of the road. These four individuals are being prosecuted separately for illegal entry to the United States.
The United States Attorney’s Office emphasizes that the complaint contains allegations only and that Meza-Cambo is presumed innocent until and unless proven guilty. Meza-Cambo faces up to 5 years of imprisonment if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.
The prosecutor is Assistant United States Attorney Joshua L. Banker. Meza-Cambo is represented by the Federal Public Defenders Office.
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).
East Bay Property Developers Charged in Scheme to Bribe Antioch City CouncilmemberRead the Press Release
OAKLAND – A two-count indictment was unsealed today charging property developers David Sanson and Trent Sanson with conspiracy and bribery in connection with offering to pay an Antioch City Councilmember $10,000, and later giving the Councilmember a company travel mug with $5,000 in cash, in exchange for favorable treatment for one of their development projects. The Councilmember reported the alleged bribe to the Federal Bureau of Investigation (FBI). Both defendants made their initial appearances in federal court this morning.
According to the indictment filed April 3, 2025, David Sanson, 60, of Philipsburg, Mont., is the owner and Chief Executive Officer of a home building and development company based in Concord, Calif., and his son, Trent Sanson, 33, of Walnut Creek, Calif., is the Vice President. The development company has a number of projects in Antioch and neighboring areas, including the Aviano project, a multi-phase 533-unit residential development project.
As alleged, the Antioch Engineering and Development Services Division indicated that the development company had not completed all of its required public infrastructure improvements and that Phase 3 of the Aviano project should not be deemed complete or approved by the City Council until those improvements were completed. As a result, the City of Antioch had not approved the release of bonds secured for the project. To get the Antioch Engineering and Development Services Division to affirm completion and release the bonds associated with the project, Trent Sanson allegedly contacted an Antioch City Councilmember via iMessage on May 29, 2024, stating that he wanted to discuss with the Councilmember issues that the development company was facing with the Antioch “Engineering department” on a number of projects, including Phase 3 of the Aviano project.
The indictment describes a video-recorded meeting between the Councilmember and Trent Sanson on June 12, 2024, during which Trent Sanson allegedly stated that he wanted the Councilmember to place on the City Council agenda, and vote in favor of, “acceptance for Phase 3 at Aviano to release the completion and guarantee bonds . . . .” Trent Sanson allegedly stated that David Sanson was willing to pay the Councilmember $10,000 in exchange for the requested actions. A second video-recorded meeting took place on June 20, 2024, at which David Sanson allegedly paid the Councilmember $5,000 in cash concealed in a travel coffee mug branded with the logo of the Sansons’ development company.
“This indictment alleges that the defendants tried to bribe an Antioch City Councilmember to take favorable action on their real estate project and to evade having to make the public infrastructure improvements that the City required,” said Acting United States Attorney Patrick D. Robbins. “This case is another example of my Office’s commitment to working closely with our partners at the FBI to root out bribery and attempts to corrupt public office.”
“Attempting to bribe a public official is a blatant attack on the integrity of our government and the trust of the communities we serve,” said FBI Special Agent in Charge Sanjay Virmani. “The allegations in this case reflect a clear attempt to manipulate the system for personal gain. The FBI will continue to aggressively investigate and hold accountable anyone who seeks to corrupt public institutions through bribery or abuse of power.”
The defendants are next scheduled to appear in district court on June 12, 2025, for a status conference before U.S. District Judge Yvonne Gonzalez Rogers.
The indictment charges each defendant with one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371 and one count of bribery concerning programs receiving federal funds in violation of 18 U.S.C. § 666(a)(2). The bribery count also includes an allegation that defendants aided and abetted one another in bribing the Antioch City Councilmember.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, defendants each face a maximum sentence of five years in prison for the count under 18 U.S.C. § 371 and 10 years in prison for the count under 18 U.S.C. §§ 666(a)(2). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Thomas R. Green and Benjamin K. Kleinman are prosecuting the case with the assistance of Amala James and Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Sanson, David and Trent Indictment
Del Rio Man Sentenced to 24 Years in Federal Prison for Drug TraffickingRead the Press Release
DEL RIO, Texas – A Del Rio man was sentenced in federal court to 288 months in prison for one count of conspiracy to possess with intent to distribute methamphetamine.
According to court documents, Leonardo Estrada, 41, approached a U.S. Border Patrol checkpoint on Highway 277 near Eagle Pass, Feb. 15, 2023. During inspection, a K-9 alerted agents to the driver’s side of Estrada’s vehicle near the pedals. A further search revealed two plastic bundles wrapped in clear plastic tape concealed underneath the carpet behind the gas and brake pedals. The contents of one of the bundles tested positive for 790 grams of methamphetamine, while the other tested positive for marijuana. Estrada admitted to being involved in drug trafficking since 2021.
Estrada was arrested at the checkpoint on Feb. 15, 2023. He pleaded guilty May 22, 2023.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
HSI and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Warsame Galaydh prosecuted the case.
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Defense Contractor’s Longtime Associate Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
WASHINGTON – Thomas G. Ehr, 63, a longtime associate of a former defense contractor, pleaded guilty today in U.S. District Court to an Information charging him with conspiring to defraud the United States.
The plea was announced by U.S. Attorney Edward R. Martin Jr. and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division.
According to court documents, from 2009 until approximately 2022, Ehr worked for or on behalf of a co-conspirator, who was a defense contractor who owned 50% of a business that supplied jet fuel to U.S. troops in Afghanistan and Middle East.
Ehr, of the United Kingdom, was hired to manage several music television and entertainment projects funded with proceeds from this business. Over time Ehr played a role in several of his co-conspirator’s other investments, including a $60 million real estate investment in Tulum, Mexico, and a $50 million fuel infrastructure project.
Ehr understood that the defense contractor was the 50% owner of the business from the time it was created, and that the defense contractor controlled hundreds of millions of dollars in profits from it.
Nevertheless, Ehr agreed to conceal the contractor’s ownership and control of the company, primarily by falsely asserting that the contractor’s wife had founded the company, so that the contractor could obstruct the IRS’ ability to assess and collect the contractor’s taxes — including taxes on profits he made from contracts with the U.S. Department of Defense. Ehr acknowledged that because of the conspiracy, the contractor evaded taxes on more than $350 million of income and caused a tax loss to the United States of approximately $128 million.
Additionally, despite making hundreds of thousands of dollars per year in income, Ehr did not file tax returns for years 2010 to 2015, nor make payments on taxes he owed for 2010 to 2023. By doing so, Ehr caused a tax loss to the United States of more than $700,000.
Ehr is the sixth defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022, James Robar pleaded guilty to tax evasion in March 2022, Ronald Thomas pleaded guilty to tax evasion in April 2022, Zachary Friedman pleaded guilty to tax evasion in August 2022, and Robert Dooner pleaded guilty to tax evasion in November 2023.
Ehr faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of one year in prison for the tax count. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States.
The case is being prosecuted by Assistant U.S. Attorney Joshua Gold of the District of Columbia and Assistant Chief Sarah Ranney, Trial Attorney Ezra Spiro, and Senior Litigation Counsel Nanette Davis of the Tax Division.
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Defense Contractor’s Longtime Associate Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
Note: View Information here.
A longtime associate of a former defense contractor pleaded guilty today to conspiring to defraud the United States.
The following is according to court documents and statements made in court: from 2009 until approximately 2022, Thomas G. Ehr worked for or on behalf of a co-conspirator, a defense contractor who owned 50% of a business that supplied jet fuel to U.S. troops in Afghanistan and Middle East. Ehr was hired to manage several music television and entertainment projects funded with proceeds from this business. Over time Ehr played a role in several of his co-conspirator’s other investments, including a $60 million real estate investment in Tulum, Mexico, and a $50 million fuel infrastructure project.
Ehr understood that the defense contractor was the business’s 50% owner since it was created, and that the contractor controlled hundreds of millions of dollars in profits from it.
Nevertheless, Ehr agreed to conceal the contractor’s ownership and control of the company, primarily by falsely asserting that the contractor’s wife had founded the company, so that the contractor could obstruct the IRS’ ability to assess and collect the contractor’s taxes — including taxes on profits he made from contracts with the U.S. Department of Defense. Ehr acknowledged that because of the conspiracy, the contractor evaded taxes on more than $350 million of income and caused a tax loss to the United States of approximately $128 million.
Additionally, despite making hundreds of thousands of dollars per year in income, Ehr did not file tax returns for years 2010 to 2015, nor make payments on taxes he owed for 2010 to 2023. By doing so, Ehr caused a tax loss to the United States of more than $700,000.
Ehr is the sixth defendant associated with the defense contracting company to plead guilty. Charles Squires pleaded guilty to tax evasion in February 2022, James Robar pleaded guilty to tax evasion in March 2022, Ronald “Ron” Thomas pleaded guilty to tax evasion in April 2022, Zachary “Zack” Friedman pleaded guilty to tax evasion in August 2022, and Robert Dooner pleaded guilty to tax evasion in November 2023.
Sentencing will be set at a later date. Ehr faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of one year in prison for the tax count. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Interim U.S. Attorney Edward R. Martin Jr. for the District of Columbia made the announcement.
IRS Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case, with assistance from His Majesty’s Revenue & Customs of the United Kingdom. Assistance was also provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States.
Senior Litigation Counsel Nanette Davis, Assistant Chief Sarah Ranney, and Trial Attorney Ezra Spiro of the Tax Division; and Assistant U.S. Attorney Joshua Gold for the District of Columbia are prosecuting the case.
Defendant Sentenced for Illegal Gun Crime Committed While on Probation for Another OffenseRead the Press Release
WASHINGTON – Charles Wesley Monroe, 20, a previously convicted felon from the District of Columbia, was sentenced today to 30 months in prison in connection with three separate incidents in April 2024 that included an armed robbery, his involvement in a street shooting, and a foot chase with police during which he discarded a Smith & Wesson 9mm firearm.
The sentencing was announced U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Anthony Spotswood of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department (MPD).
Monroe pleaded guilty on Jan. 27, 2025, to unlawful possession of a firearm and ammunition by a felon. He previously had been convicted of armed robbery in Superior Court and, in September 2023, was sentenced to 66 months in prison with all but 36 months suspended. In addition to the today’s 30-month prison sentence, U.S. District Court Judge Jia M. Cobb ordered Monroe to serve three years of supervised release.
According to the plea documents, on April 17, 2024, at about 1:22 a.m., Monroe robbed an Uber Eats deliveryman of the man’s jewelry at gunpoint in an apartment building on the 1300 block of Columbia Road NW. The entire incident was captured by one of the building’s surveillance cameras. On April 20, 2024, a photo posted to Instagram depicted Monroe and another individual wearing the jewelry that had been stolen from the Uber Eats driver.
On April 23, 2024, Monroe was with a group of friends standing in front of a restaurant on the 3300 block of 14th Street, NW. At 9:24 p.m., a man walked by the group with his daughter. As the pair entered the intersection of 14th St. and Monroe, NW, the man heard several gunshots. The man turned around to see one of the group members firing in his direction. The man was hit in his left leg by one of the stray bullets. Surveillance cameras captured several images of the incident.
On April 29, 2024, two uniformed police officers were patrolling near the 1400 block of Girard Street, NW, when they spotted a group, including Monroe, on the sidewalk. One member of the group appeared to be smoking marijuana. As the officers approached the group, Monroe fled unprovoked.
Officers pursued Monroe on foot. Monroe ran towards a basement stairwell and appeared to be holding the front of his waistband as if he was concealing a heavy object. Monroe then discarded a black and silver Smith & Wesson handgun into a small flower bed. Officers apprehended Monroe and recovered the handgun. The firearm and its magazine were swabbed for DNA and submitted for testing and analysis. The results linked both the firearm and magazine to Monroe. He has remained held without bond since his arrest.
This case was investigated by ATF and MPD as part of Project Safe neighborhoods. Valuable assistance was provided by the FBI Laboratory in Quantico, Virginia. It is being prosecuted by Assistant U.S. Attorneys Kyle McWaters and Jared English.
The discarded Smith & Wesson.
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Court Sentences Mobile County Man to 15 years Imprisonment for Methamphetamine TraffickingRead the Press Release
MOBILE, AL – On April 22, 2025, United States District Court Judge William H. Steele sentenced John Rodney Weeks III to 180 months imprisonment for Conspiracy to Traffic Methamphetamine. Documents filed with the Court established that between February 2024 and March 2024, the Mobile County Sheriff’s Office (MCSO) used a confidential informant to make five controlled buys of methamphetamine from Weeks. On March 27, 2024, the MCSO executed a search warrant at Weeks’ residence in Mobile County and seized approximately 62 grams of methamphetamine, digital scales for weighing drugs, approximately $720.00 in US currency that were drug proceeds and ledger notes used to keep records of monies owed for drugs. Because Weeks had a prior federal methamphetamine trafficking conviction in 2005 the United States filed a Sentencing Enhancement which required the 15 year mandatory minimum sentence under Title 21 USC §841 (b)(1)(A).
The case was investigated by the Department of Homeland Security, Homeland Security Investigations and the Mobile County Sherriff’s Office, Narcotics Unit. The case was prosecuted by Assistant United States Attorney George F. May.
Convicted Sexual Predator from Alabama Sentenced to 18 Years in Prison for Attempting to Meet a Child in D.C. for SexRead the Press Release
WASHINGTON – Graham Daniel Ash, 41, of Pinson, Alabama, was sentenced today to 216 months in federal prison for attempting to sexually abuse a child in the District of Columbia and for distributing child pornography to show that he was serious about his goal. Ash was previously convicted of a sex offense against a minor.
The sentence was announced by U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Sean Ryan of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department.
Ash pleaded guilty on Nov. 26, 2025, to one count of coercion and enticement of a minor. In addition to the 216-month prison term, U.S. District Court Judge Tanya S. Chutkan ordered Ash to serve a lifetime of supervised release.
According to court documents, on Aug. 29, 2023, an undercover officer with the Child Exploitation and Human Trafficking Task Force (CEHTTF) began communicating with a user of an online messaging platform. The user, who identified themselves as darkmind36, was later determined to be defendant Graham Ash. The undercover agent was based in an office in the District and posed as the father of an 8-year-old girl.
In conversations over the course of a month, Ash said he was actively seeking parents living on the East Coast for the purpose of traveling to engage in illicit sexual conduct. To show he was serious, Ash sent the undercover officer a link to 60 files depicting child sexual abuse material (CSAM). Ash also discussed other attempts when he had sought out children to sexually abuse.
Law enforcement executed a search warrant at Ash’s Alabama residence on Oct. 3, 2023. Prior to entering the residence, officers knocked and announced their presence. Ash did not open the door and 11 minutes passed before law enforcement gained entrance. Officers arrested Ash after finding him inside with two phones that had been smashed and pulled apart.
Ash’s guilty plea in this case was the second time he had been found guilty of a sex offense against a minor. On July 22, 2022, he was convicted of electronic solicitation of a child, in violation of Alabama state law, for traveling to meet a minor for an unlawful sex act. Based upon that conviction, Ash was required to register as a sex offender at the time of the offense in this case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, in conjunction with law enforcement in the Northern District of Alabama. It is being prosecuted by Assistant U.S. Attorneys Jocelyn Bond and Rachel Forman.
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Chinese Nationals Sentenced to Federal Prison for Participating in a Fraudulent Gift Card Conspiracy Involving the Purchase and Export of Apple Products to ChinaRead the Press Release
CONCORD – Three Chinese nationals were sentenced in federal court for their roles in a sophisticated Chinese gift card fraud conspiracy, Acting U.S. Attorney Jay McCormack announces.
Naxin Wu, 26, a Chinese national unlawfully residing in Nashua, was sentenced by Chief Judge Landya B. McCafferty to 33 months in prison and one year of supervised release. Mengying Jiang, 34, a Chinese national residing in Nashua, was sentenced by Chief Judge McCafferty to 60 months in prison and one year of supervised release. Mingdong Chen, 28, a Chinese national unlawfully residing in Brooklyn, New York, was sentenced by Judge Joseph N. Laplante to 24 months in prison and one year of supervised release. Earlier this year, the defendants each pleaded guilty to Conspiracy to Commit Wire Fraud. All three defendants face deportation to China after completing their sentences.
“The defendants played a critical role in laundering proceeds of romance and other online scams by purchasing the stolen gift cards and using them to purchase Apple products,” said Acting U.S. Attorney McCormack. “While they may not have committed the initial fraud, the defendants’ actions helped convert stolen funds into tangible goods, enabling a large-scale financial crimes conspiracy. We remain committed to dismantling every link in the fraud supply chain.”
“These individuals were part of a Chinese transnational criminal organization that used a complex scheme to steal and launder millions of dollars through gift card theft. After a sophisticated criminal investigation with our partners, their scheme was uncovered and their crimes brought to light. Now, they’ll serve federal prison sentences and face deportation back to China,” said Special Agent in Charge of Homeland Security Investigations New England Michael J. Krol.
“The sentences imposed in New Hampshire emphasize the expansive reach of the U.S. Postal Inspection Service when it comes to dismantling criminal organizations. Anytime a criminal uses the U.S. Mail to further their illegal activity, postal inspectors will be there to bring them to justice. I’d like to thank our law enforcement partners involved in this case who, together with postal inspectors, brought these defendants to justice. This collaboration and dedication from law enforcement professionals plays a vital role in protecting the integrity of our communities from those who seek to exploit vulnerable Americans for personal gain,” said Ketty Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service – Boston Division.
“IRS – Criminal Investigations is committed to identifying, preventing, and disrupting all illicit activity perpetrated by transnational criminal organizations, no matter where they hide,” said Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office. “The defendants acted as an integral cog of this international scheme by monetizing the ill-gotten gains obtained by Chinese hackers and scammers that victimized U.S. businesses and the citizens of the United States. IRS-CI is committed to our continued collaboration with our law enforcement partners, both at home and abroad, to stop and deter anyone who seeks to profit off the hard work of U.S. citizens.”
According to court documents, organized criminal elements in China acquired well over $100 million in gift cards through multiple fraudulent means. For example, gift card data is obtained by hacking U.S. companies, tampering with physical gift cards, and targeting U.S. citizens through romance and elder fraud schemes. The criminal elements then send the gift card data to multiple cells of Chinese nationals operating in the United States through a Chinese-based messaging platform in exchange for cryptocurrency.
Once U.S.-based cells receive the gift card data, they then spend the gift cards to purchase high-value electronics, principally Apple products. After purchasing the Apple products, cell members consolidate the electronics in warehouses for shipment to China, Hong Kong, or countries in Southeast Asia. The cells primarily operate in states with no sales tax, such as New Hampshire, to maximize their profits.
Wu, Jiang, and Chen were members of one cell in New Hampshire. Wu and Jiang purchased fraudulent gift cards at a discount from their face value. They then either personally used the cards or disseminated them to others, including Chen, to use. Wu was responsible for $1.4 million, Jiang for $3 million, and Chen for $400,000 of fraudulent gift cards.
Homeland Security Investigations, Internal Revenue Service’s Criminal Investigations, the U.S. Postal Inspection Service, and the Concord Police Department led the investigation. The Merrimack County Attorney’s Office provided valuable assistance. Assistant U.S. Attorney Alexander S. Chen prosecuted the case.
This effort is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Cartel cocaine conspirator sentenced to 10 years in federal prisonRead the Press Release
LAREDO, Texas – A Cartel del Noreste (CDN) operative has been ordered to federal prison for her role in a conspiracy to deliver over 10 kilograms of cocaine, announced U.S. Attorney Nicholas J. Ganjei.
Rebeca Guzman-Rios, 39, Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty Aug. 30, 2024.
U.S. District Judge Diana Saldana has now sentenced Guzman-Rios to 120 months in federal prison. Also sentenced was Rogelio Garcia-Ayala, 65, who illegally resided in Laredo, and received 60 months. Not U.S. citizens, both are expected to face removal proceedings after completing their sentences.
In April 2024, a CDN sicario aka hitman dispatched Guzman-Rios to Laredo to facilitate the sale of 10 kilograms of cocaine. She crossed into Laredo at the Gateway to the Americas International Bridge from Mexico and proceeded to downtown Laredo where Ana Maria Escobedo picked her up and drove her to the location of the drug transaction.
Meanwhile, Cesar Gerardo Rodriguez Salazar and Brenda Odet Nery Castro retrieved the cocaine from their residence, which was being used as a CDN stash house, and provided it to Francisco Herrera-Moresco. Garcia-Ayala drove Herrera-Moresco and the drugs to the parking lot where Guzman-Rios and Escobedo were waiting.
Salazar and Castro followed to observe.
Herrera-Moresco was supposed to deliver the cocaine to the buyer Guzman-Rios had arranged, but believed the transaction had fallen through and left the area instead with Escobedo and the cocaine.
Law enforcement attempted to conduct a traffic stop, but Escobedo began to evade and led them on a pursuit, during which time the cocaine was thrown from the vehicle. After hitting a fence, the pair finally came to a stop and tried to flee, but authorities took them into custody as well as Salazar and Castro. They also arrested Guzman-Rios, who remained at the location of the drug transaction. Law enforcement was also able to retrieve the cocaine.
“If you work with, work for, or assist CDN, or any other cartel, you will be arrested and prosecuted to full extent of the law, without exception,” said Ganjei. “The cartels are not welcome in Texas.”
Mexican citizens Salazar, 42, Herrera-Moresco, 42, and Castro 37, were all previously sentenced to 87, 50 and 30 months, respectively, while Escobedo, 33, Laredo, was ordered to serve a 65-month-term of imprisonment.
All remain in custody.
The Drug Enforcement Administration conducted the investigation with the assistance of Customs and Border Protection and the Texas Department of Public Safety. Assistant U.S. Attorney Manuel Cardenas is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
Bradford County Man Sentenced to 292 Months in Prison for Production of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Benjamin Wheeler, age 29, of Bradford County, Pennsylvania, was sentenced on April 15, 2025, to 292 months’ imprisonment to be followed by ten years of supervised release by Chief United States District Judge Matthew W. Brann on one count of production of child pornography.
According to Acting United States Attorney John C. Gurganus, Wheeler coerced two minor victims to engage in sexually explicit conduct for the purpose of producing child pornography on four separate occasions in June and July of 2022, in Bradford County.
Assistant United States Attorney Alisan V. Martin read a statement from one of the victim’s mothers expressing the devastating impact this crime has had on the victim and the victim’s family.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
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Broussard Man Pleads Guilty in Multi-State Vehicle Theft, Firearm Trafficking, and Identity Theft Conspiracy in Multi-Jurisdictional OperationRead the Press Release
Acting United States Attorney April M. Leon announced that Christopher Don Byerley, age 45, of Broussard, Louisiana, pled guilty before U.S. District Judge Brian A. Jackson to conspiracy to transport a stolen motor vehicle; altering, removing and obliterating a vehicle identification number; possession of fifteen or more unauthorized access devices; conspiracy to trafficking a firearm and receipt of a trafficked firearm; receipt of a trafficked firearm; and possession of an unregistered silencer.
According to admissions made as part of his guilty plea, between October 2021 and March 2022, Byerley and his co-conspirators, Robert Gregory Brazell, Adrienne Marie King, and Dennis Loyd Sizemore, carried out a coordinated and complex operation extending across Louisiana, Mississippi, Alabama, and Texas, in which the group stole, and subsequently used or sold the stolen and altered vehicles, including tractors, excavators, forklifts, and a pickup truck, with a total value of over $250,000.
The scheme involved fraudulent documentation, a “chop shop” for equipment disassembly and tampering, a false business front such as “Hevyquip L.L.C.” to sell stolen equipment, altering Vehicle Identification Numbers (VINs), and the use of surveillance evasion tools, such as GPS signal blockers, vehicle plate flippers, and fake driver’s licenses. To further conceal their activities, the conspirators utilized over 400 identities and access devices to evade detection.
During the investigation, it was determined that Byerley, a convicted felon, used a third party to illegally purchase a firearm, which was later fitted with the unregistered silencer.
In February 2022, an investigation of a shoplifting incident in the Juban Crossing Shopping Center led Livingston Parish Sheriff’s Office detectives to uncover items from a stolen pickup truck being operated by Byerley:
- A functional, unregistered firearm silencer;
- A FN Model 509 9mm pistol and ammunition;
- Documentation detailing parts orders for silencers all in Byerley’s handwriting;
- Multiple text messages and photographs pointing to intent to traffic firearms and circumvent federal regulations; and
- Numerous documents, records, emails, text messages and photos that led law enforcement to uncover the conspiracy and far-reaching criminal enterprise.
Acting U.S. Attorney Leon stated, “These guilty pleas reflect the commitment of our office and federal law enforcement in partnership with our state and local law enforcement agencies to dismantle sophisticated criminal organizations and hold accountable those who pose a significant threat to public safety. We commend the prosecutors and investigators for their hard work and relentless pursuit of the members of this criminal enterprise and are appreciative of their efforts in solving these crimes—even with many attempts at evasion—and returned the stolen equipment to their rightful owners.”
“The Livingston Parish Sheriff’s Office is committed to conducting thorough investigations and to working with our local and federal agencies. This investigation is a great example of detectives working a shoplifting incident and that turning into a major investigation across this state and others,” said Livingston Parish Sheriff Jason Ard.
“Homeland Security Investigations congratulates our law enforcement partners on this important outcome, which was supported by HSI Baton Rouge’s Louisiana Organized Retail Crime Task Force and its partner agencies. The investigations of these sophisticated crimes are most effectively accomplished through the coordination of multiple law enforcement agencies and across several jurisdictional boundaries, such as what occurred in this investigation. HSI remains committed to protecting the American consumer and safeguarding public safety by disrupting criminal networks that drive up prices and endanger our communities,” said Adam Parks, Assistant Special Agent in Charge, Louisiana Division, Homeland Security Investigations.
“The ATF is working closely with local and state police agencies to address firearm trafficking by getting guns out of the hands of criminals, such as this individual,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “This guilty plea sends a message to the community that illegal possession of firearms will be held accountable as we work to keep our neighborhoods safe as a top priority to ensure public safety for ATF.”
This matter was investigated by the U.S. Department of Homeland Security, Bureau of Alcohol, Tobacco, Firearms and Explosives (Baton Rouge and Lafayette Field Divisions), Social Security Administration Office of the Inspector General, Louisiana State Police (Latent Print Section and the Bureau of Identification and Information), Livingston Parish Sheriff’s Office, Ascension Parish Sheriff’s Office, East Baton Rouge Sheriff’s Office, Saint Martin Parish Sheriff’s Office, Saint Landry Parish Sheriff’s Office, Lafayette Parish Sheriff’s Office, Iberia Sheriff’s Department, and Lafayette Police Department.
This case is being prosecuted by Assistant United States Attorney Lyman E. Thornton III from the United States Attorney’s Office for the Middle District of Louisiana. To address the firearm trafficking charges, AUSA Thornton was appointed as a Special Assistant United States Attorney in the Western District of Louisiana, where he worked in conjunction with Assistant United States Attorney John Nickel.
Attorney General Pamela Bondi Hosts First Task Force Meeting to Eradicate Anti-Christian Bias in the Federal GovernmentRead the Press Release
Today, Attorney General Pamela Bondi hosted members of the President’s Cabinet at the U.S. Department of Justice for the inaugural meeting of the Task Force to Eradicate Anti-Christian Bias in the federal government. The Task Force, which was established by President Trump under Executive Order 14202, was joined by peaceful Christian Americans who were unfairly targeted by the Biden Administration for their religious beliefs.
The witnesses included:
Michael Farris: First Amendment Litigator and Founding President of Patrick Henry College
- Farris spoke on behalf of Senior Pastor Gary Hamrick to discuss how Cornerstone Church was under investigation and charged by the Internal Revenue Service (IRS) for so-called Johnson Amendment violations. Farris is an elder at the church, previously led Alliance Defending Freedom, and served as counsel on this case.
Dr. Scott Hicks: Provost and Chief Academic Officer, Liberty University
- Hicks described how Liberty University and Grand Canyon University were singled out by the Biden Administration for fines due to the schools’ Christian worldview.
Phil Mendes: Navy Seal
- Mendes was relieved of duty during Biden Administration for not taking the COVID-19 vaccine due to religious exemption requests that were denied by the Department of Defense.
“As shown by our victims’ stories today, Biden’s Department of Justice abused and targeted peaceful Christians while ignoring violent, anti-Christian offenses,” said Attorney General Pamela Bondi. “Thanks to President Trump, we have ended those abuses, and we will continue to work closely with every member of this Task Force to protect every American’s right to speak and worship freely.”
Attorney General Pamela Bondi with members of the Eradicating Anti-Christian Bias Task Force at the U.S. Department of JusticeAdditionally, members of the Task Force highlighted specific cases within their own agencies where the Biden Administration unfairly and harshly punished Christian Americans for their religious beliefs.
FBI Director Kash Patel discussed the impact of the anti-Catholic memo issued by FBI Richmond and reiterated the FBI’s commitment to rooting out any anti-Christian bias that could be directing decisions or investigations.
Secretary of State Marco Rubio raised several concerning allegations of bias, including some against Christian Foreign Service Officers who preferred to homeschool their children. In one case, a family was threatened with an investigation for child abuse and curtailment if they insisted on homeschooling. In another case, a family was referred to the IRS, threatened with prosecution, and investigated by Biden’s Inspector General for insisting they homeschool their son.
He shared how State Department employees were stigmatized for opposing the COVID-19 vaccine mandate on religious grounds, including being called “murderers” and “troublemakers.” In one instance, an ambassador yelled at an employee, accusing the employee of wanting to kill the ambassador’s mother despite her being back in the States.
Other reports alleged retaliation against employees for opposing DEI/LGBT ideology that violated their religious conscience. Employees recounted being required to push LGBT agendas while serving overseas, even in countries where such activity constituted a blatant violation of the acceptable religious beliefs and practices. He also detailed allegations that that religious freedom policy offices and programs were sidelined unless they were promoting DEI-related programs.
He also highlighted how Christian holidays at American embassies under the Biden Administration were frequently stripped of any religious overtones, but non-Christian religious holidays like Losar, Eid, or Ramadan, used proper names and appropriate celebratory greetings.
Health and Human Services Secretary Robert F. Kennedy Jr. discussed how the previous administration ordered St. Francis Health System in Oklahoma to extinguish its sanctuary candle or lose its ability to treat patients covered by Medicare, Medicaid or the Children’s Health Insurance Program. He also discussed progressive rules put in place under the Biden Administration that would make it harder for Christians to become foster parents.
Secretary of Education Linda McMahon discussed how Oregon educators Katie Medart and Rachel Sager were suspended and terminated for starting the movement, “I Resolve.” The movement spoke about gender identity education policy and offered solutions for how educators could teach without violating their conscience and also respect the rights of parents.
Additionally, officials at the Skaneateles Central School District in New York began treating a middle-school girl as a boy without her mother’s knowledge or consent – violating their religious liberties as parents.
Deputy Treasury Secretary Michael Faulkender discussed financial surveillance under the Biden Administration, including the previous removal of certain tax classifications of Christian and pro-life organizations by the IRS, the lack of involvement within Treasury to protect organizations from the issue of debanking, and FinCEN’s identification of certain pro-Christian groups as “hate groups.”
Secretary of Veterans Affairs Doug Collins discussed actions the VA took to stop the speech code that the previous administration used to punish Chaplain Trubey of the Coatesville VA Medical Center for fulfilling his duties and preaching a sermon from the Bible.
Director of the Domestic Policy Council, Vince Haley, discussed how the previous DPC Director Neera Tanden helped lead and coordinate the Biden Administration’s efforts to push radical and anti-Christian gender ideology on kids in classrooms, foster care, sports, and healthcare.
Additional attendees included:
- Todd Blanche, Deputy Attorney General
- Emil Bove, Principal Associate Deputy Attorney General
- Stanley Woodward, Nominee to be Associate Attorney General
- Harmeet Dhillon, Assistant Attorney General
- Pete Hegseth, U.S. Secretary of Defense
- Kristi Noem, U.S. Secretary of Homeland Security
- Andrew Hughes, Chief of Staff (Dep. Sec. Nom.) at the U.S. Department of Housing and Urban Development
- Lori Chavez DeRemer, U.S. Secretary of Labor
- Andrea Lucas, Acting Chair of the U.S. Equal Employment Opportunity Commission
- Cameron Hamilton, Acting Director of the Federal Emergency Management Agency
- Dan Bishop, Deputy Director of the Office of Management and Budget
- Kelly Loeffler, Administrator of the U.S. Small Business Administration
- Pastor Paula White-Cain, Senior Advisor, White House Faith Office
- Jennifer Korn, Faith Director, White House Faith Office
Read the Eradicating Anti-Christian Bias Executive Order HERE.
Armed Waterbury Drug Trafficker Pleads GuiltyRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that JONATHAN SUBH-MARCANO, 28, of Waterbury, pleaded guilty yesterday in New Haven federal court to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Subh-Marcano was arrested on August 15, 2024, after a court-authorized search of his Waterbury residence revealed approximately 300 individual bags of fentanyl, approximately 30 grams of crack cocaine, a loaded Polymer 80 “ghost gun,” additional rounds of ammunition, and more than $9,000 in cash.
Subh-Marcano is scheduled to be sentenced on July 1 by U.S. District Judge Robert N. Chatigny in Hartford. He faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life.
Subh-Marcano has been detained since his arrest.
This case has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Natasha Freismuth through Project Safe Neighborhoods (“PSN”), an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Arizona Man Sentenced to 9 Years for Involvement in Cross-Country Drug ConspiracyRead the Press Release
RALEIGH, N.C. – An Arizona man was sentenced today to 9 years in prison for trafficking fentanyl pills in the Eastern District of North Carolina. Dakota Henderson, 26, pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute Forty Grams or More of a Mixture and Substance Containing a Detectable Amount of Fentanyl and Distribution of Forty grams or more of a Mixture and Substance Containing a Detectable Amount of Fentanyl on October 10, 2024.
According to court documents and other information presented in court, law enforcement determined that Henderson was part of a group that obtained fentanyl pills from California and Arizona and then transported them to the Raleigh area for distribution.
In March 2024, law enforcement searched a hotel room rented in Henderson’s name and found approximately 5,912 fentanyl pills, a drum magazine loaded with 32 rounds of ammunition, and over $1,000 in U.S. currency. Several weeks later, Henderson was observed by law enforcement, armed with a firearm, collecting money from a drug debt and delivering an additional 2,000 suspected fentanyl pills to a confidential informant.
This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Raleigh Police Department, the Cary Police Department, and the United States Postal Inspection Service investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-200-D-004.
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A Leader of Notorious Philadelphia ‘10th and O Crew’ Sentenced to Six Years for Opioid Drug ConspiracyRead the Press Release
A South Philadelphia man was sentenced yesterday in the District of New Jersey to six years in prison for conspiracy to distribute oxycodone, a highly addictive controlled substance.
According to court documents, between January 2022 and February 2024, Michael Procopio, 50, coordinated the unlawful sale of prescription oxycodone pills as a leader of South Philadelphia’s notorious “10th and O Crew.” Procopio obtained the pills from doctors’ offices in the area. He then unlawfully distributed them through a network of intermediaries. In February 2024, during a search of Procopio’s residence pursuant to a search warrant, law enforcement found oxycodone, Adderall (amphetamine and dextroamphetamine), and other drugs stored in a safe concealed in a hollowed-out dictionary. During the execution of the search warrant, Procopio stated, “take me to jail” and “I f***ed up.”
Pursuant to the U.S. Sentencing Guidelines, one gram of actual oxycodone is equivalent to 6,700 grams of converted drug weight. Procopio admitted to distributing approximately 14,925 milligrams of oxycodone, which equates to between 80 and 100 kilograms of opioids by converted drug weight.
“The defendant led a criminal ‘crew’ that diverted addictive prescription drugs to sell on the streets of Philadelphia,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The unlawful distribution of opioids ravages communities, whether it’s fentanyl from overseas or prescription oxycodone obtained from a doctor. The Department of Justice is committed to working with our law enforcement partners to eradicate the illegal sale of these dangerous drugs.”
In June 2024, Procopio pleaded guilty to conspiracy to unlawfully distribute controlled substances. Court documents show that Procopio was previously convicted of sexual assault in Pennsylvania.
Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation’s (FBI) Philadelphia Field Office and Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration (DEA) New Jersey Field Division joined the announcement.
The FBI, DEA, and the Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit investigated the case.
Trial Attorneys Paul J. Koob and Nicholas K. Peone of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Department of Health and Human Services’ Office of Inspector General, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
18-Year-Old Man Who Led Law Enforcement on Dangerous High-Speed Chase Sentenced to 12 Years in PrisonRead the Press Release
Yakima, Washington – Acting United States Attorney Richard R. Barker announced that United States District Judge Mary K. Dimke sentenced Angel Omar Zuniga-Soriano, age 18, to 144 months in prison on one count of Felon in Possession of a Firearm. Judge Dimke also imposed 3 years of supervised release.
According to court documents and information presented at the sentencing hearing, on June 29, 2024, Zuniga-Soriano, who is involved with the Sureno street gang, was driving a vehicle matching the description of a vehicle used in a robbery earlier that same day in Wapato, Washington. When a police officer in Toppenish, Washington, spotted the vehicle, he activated his overhead lights and attempted to stop the vehicle. Instead, Zuniga-Soriano sped-off and led police on a high-speed chase. Zuniga-Soriano drove on the busy interstate between Toppenish, Sunnyside, and Zillah at speeds of more than 100 miles per hour. During the pursuit, Zuniga-Soriano fired one bullet out of the driver’s side window.
Ultimately, Zuniga-Soriano pulled into a convenience store parking lot in Zillah, attempting to drive thru the lot. In an effort to reduce risk to the public, a law enforcement officer then rammed his police vehicle into the vehicle Zuniga-Soriano was driving. As a result, the sergeant driving the police vehicle was injured.
Even still, Zuniga-Soriano was undeterred. He took off running, throwing a Glock pistol into a nearby yard. After a lengthy foot pursuit, law enforcement tackled Zuniga-Soriano in a nearby field. When the Glock pistol was recovered, law enforcement observed that the gun had a “Glock switch,” which is a modification that attaches to the rear of a Glock handgun and is designed to convert it from semi-automatic firearm into an automatic machine gun.
Zuniga-Soriano subsequently provided a recorded statement to law enforcement. Zuniga-Soriano stated that he used to be a “demonic demon” and explained that he used to try to drown puppies in his toilet. He further advised that he tries to stay away from certain people; otherwise, he ends up falling back to his old ways and “my demonic self comes into me.” Zuniga-Soriano explained that he was not actual a gang member, but was a gang associate. When asked about the instant case, Zuniga-Soriano stated he had ingested marijuana, blacked out, and could only recall part of what had happened.
In that same interview, Zuniga-Soriano attempted to claim that he was not actually firing at law enforcement. Rather, according to Zuniga-Soriano, he was going to commit suicide during the pursuit. He claimed that he put the gun to his head, but dropped it, which caused the gun to discharge. When the detective advised Zuniga-Soriano that a Glock firearm does not discharge when you drop it, Zuniga-Soriano recanted and then claimed that he tried to take the gun apart during the pursuit, which caused it to discharge.
Ultimately, an extended firearm magazine was recovered from inside the vehicle Zuniga-Soriano was driving. Law enforcement subsequently test-fired the Glock firearm and discovered that it was capable of firing multiple rounds by a single trigger press.
At the sentencing hearing, Judge Dimke pointed out that despite Zuniga-Soriano only being 18 years of age this was his third firearm conviction. Judge Dimke also explained that she took into account the dangerousness of the instant offense in pronouncing the twelve-year sentence.
“The seriousness and nature of this offense cannot be understated,” Acting U.S. Attorney Rich Barker said. “I am grateful for the courage of the brave law enforcement officers, who ensured Mr. Zuniga-Soriano would not escape apprehension that day. Obviously firing a gun from a vehicle is extremely dangerous. However, attempting to elude police officers at such high rates of speed on public roadways presents an equally dangerous risk to our citizens. Had it not been for a sergeant with the Toppenish Police Department, who put his own life at risk to immediately stop the pursuit, innocent lives of motorists and their families could have been tragically lost. I also am grateful for Assistant United States Attorney Tom Hanlon’s excellent work on this case. For decades, AUSA Hanlon has dedicated his career to seeking justice and handling many of the most challenging and significant cases within our Yakima office.”
“It is amazing that more people were not injured, or worse, by Mr. Zuniga-Soriano’s reckless actions.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “It is clear from his blatant disregard for the welfare of innocent people that the community will be safer with him behind bars. I commend the brave actions of our partners who were able to bring him into custody despite his irresponsible and dangerous attempts to evade accountability.”
Based on severity of the Zuniga-Soriano’s actions, and due to the nature of the type of firearm utilized in the offense, the Southeast Washington Safe Streets Task Force was contacted. The Southeast Washington Safe Streets Task Force consists of law enforcement officers from the Federal Bureau of Investigation, the United States Border Patrol, the Yakima County Sheriff’s Office, and the Toppenish Police Department. Along with the Safe Streets Task Force, the case was investigated by the Toppenish Police Department, the Yakima County Sheriff’s Office, the Yakama Nation Police Department, the Granger Police Department, the Wapato Police Department, the Washington State Patrol, the Zillah Police Department, and the Federal Bureau of Investigation. The was prosecuted by Assistant United States Attorney and Yakima Branch Manager Thomas J. Hanlon.
Case 1:24-cr-02069-MKD
Monday 21 April 2025
Yakama Man Sentenced to 72 Months in Prison for Sexual Abuse in Indian Country of an Incapacitated TeenagerRead the Press Release
Yakima, Washington – Acting U.S. Attorney Richard R. Barker announced that on April 14, 2025, United States District Judge Mary K. Dimke sentenced Darius Morningstar Speedis, age 20, of the Confederated Tribes and Bands of the Yakama Nation, to 72 months in federal prison for Sexual Abuse in Indian Country. Judge Dimke also imposed 10 years of supervised release and required Speedis to register as a sex offender.
According to court documents and information presented at the sentencing hearing, in early November 2022, Speedis sexually assaulted a 16-year-old Native American woman who had become intoxicated and incapacitated. The assault occurred after several teenagers, including the victim and Speedis, consumed alcohol – at least some of which was provided by Speedis. The sexual assault occurred on the Yakama Nation.
Although the victim had no independent recollection of the sexual assault, Speedis had recorded the assault and then sent a video to the victim. That video, however, later was deleted and was not recovered by law enforcement.
At sentencing, Judge Dimke took into account the abuse of trust involved in the sexual assault, including the recording of the sexual assault, as well as Speedis’ age and reported remorse before pronouncing sentence. Judge Dimke also noted the “epidemic” of sexual abuse occurring on the Yakama Nation Indian Reservation.
“Sexual violence has no place in any community, and it is especially devastating when it targets vulnerable victims and occurs within communities already impacted by an epidemic of abuse,” said Acting U.S. Attorney Richard R. Barker. “This sentence reflects the seriousness of Mr. Speedis’ conduct and our unwavering commitment to seeking justice for victims of sexual assault. My office will continue working closely with our Tribal partners to hold offenders accountable and support survivors on their path to healing.”
“Not only did Mr. Speedis sexually assault this victim, he recorded that assault and then sent it to her.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “I hope his acknowledgement of guilt can aid in the victim’s recovery from this disturbing episode. The FBI is committed to justice for Native Women, who too often are targets of crimes of violence.”
This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. This case was prosecuted by Assistant United States Attorney Letitia A. Sikes.
1:24-cr-02043-MKD.
Wisconsin Man Pleads Guilty to Illegal Firearm PossessionRead the Press Release
A man who possessed a firearm as a felon pled guilty today in federal court in Cedar Rapids, Iowa.
Mickey Lee Miller, age 37, from Milwaukee, Wisconsin, was convicted of one count of possession of a firearm by a felon.
In a plea agreement, Miller admitted that on October 16, 2024, in Dubuque, Iowa, he possessed a loaded firearm and ammunition. A witness told law enforcement officers that Miller had pointed the firearm at her and threatened to kill her and others. Miller has a prior felony conviction for robbery with threat of force.
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 is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline), a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Miller remains in custody of the United States Marshal pending sentencing. Miller faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-1008.
Follow us on X @USAO_NDIA.
Washington Man Who Distributed Large Amounts of Fentanyl in the Tri-Cities Sentenced to 9 Years in PrisonRead the Press Release
Spokane, Washington – Acting United States Attorney Richard Barker announced that United States District Judge Mary K. Dimke sentenced Ricardo Cantu, age 26, to 108 months in prison on drug trafficking charges. Judge Dimke also imposed 4 years of supervised release.
According to court documents and information provided at the sentencing hearing, in September 2023, the Drug Enforcement Administration (DEA) developed information that Cantu, who was a source of supply for methamphetamine and fentanyl laced pills, was distributing large quantities in and around the Tri-Cities with the assistance of several co-defendants to include Julio Gaspar Iniguez, Veronica Martinez and Daniel Mora.
Between September and October 2023, the DEA conducted two controlled purchases of fentanyl and methamphetamine from Cantu and Gaspar totaling nearly two pounds of methamphetamine and over 3,041 fentanyl pills. Cantu and Mora were armed with firearms during each transaction.
On December 7, 2023, Agents executed search a warrant at Cantu’s home. Cantu and another man were smoking fentanyl in the garage at the time, and as a result, law enforcement and children inside the home were exposed to the fumes from this dangerous controlled substance.
During a search of Cantu’s bedroom, agents located 10,000 pink fentanyl-laced pills in a child’s Hello Kitty bag. Inside the closet, there were another 2,000 fentanyl-laced pills, a digital scale, and loaded Glock firearm, which previously had been reported stolen. During a search of the garage, agents located another 1,500 fentanyl pills, 3 digital scales and other evidence of drug distribution.
Agents also executed a search warrant at Gaspar’s home, recovering 5 pounds of marijuana and a loaded 9mm firearm that has been associated with two shootings in the Yakima Valley. Agents also located a loaded privately made firearm, or Ghost gun, with a loaded magazine. During a search of Gaspar’s Jeep, agents located a loaded pistol in the center console.
On March 26, 2025, Gaspar pleaded guilty to drug trafficking charges. He will be sentenced on June 25, 2025, in Spokane.
“Distributing and using fentanyl and methamphetamine in our communities – especially in places where children are present – is both reckless and deeply dangerous,” said Acting U.S. Attorney Richard Barker. “Mr. Cantu not only trafficked deadly narcotics but did so while armed and in the presence of children, putting lives at risk. I commend the DEA and our law enforcement partners for their work in removing these dangerous drugs and firearms from Eastern Washington communities.”
“Mr. Cantu put the entire community at risk by trafficking fentanyl and methamphetamine while armed,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “This sentence conveys the seriousness of the danger Mr. Cantu posed to law enforcement and other members of the community poised to get caught in the crossfire of his drug trafficking enterprise.”
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Stephanie Van Marter.
Case 2:23-cr-00132-MKD
Walgreens agrees to pay up to $350M for illegally filling unlawful opioid prescriptions and for submitting false claims to the Federal GovernmentRead the Press Release
WASHINGTON — The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Eastern District of Virginia (Assistant U.S. Attorney John Beerbower), Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), and Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
Middle District of Florida, justice.gov/usao-mdfl;
Northern District of Illinois, justice.gov/usao-ndil;
District of Maryland, justice.gov/usao-md;
Eastern District of New York, justice.gov/usao-edny; and
Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:
DEA at dea.gov;
FBI at fbi.gov;
HHS-OIG at oig.hhs.gov;
DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
OPM at opm.gov; and
DOL at dol.gov.
Walgreens Agrees to Pay up to $350M for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal GovernmentRead the Press Release
Note: View settlement here.
WASHINGTON — The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, justice.gov/usao-mdfl;
- Northern District of Illinois, justice.gov/usao-ndil;
- District of Maryland, justice.gov/usao-md;
- Eastern District of New York, justice.gov/usao-edny; and
- Eastern District of Virginia, justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:
- DEA at dea.gov;
- FBI at fbi.gov;
- HHS-OIG at oig.hhs.gov;
- DHA at health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at opm.gov; and
- DOL at dol.gov.
Walgreens Agrees to Pay up to $350M for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal GovernmentRead the Press Release
Note: View settlement here.
The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, www.justice.gov/usao-mdfl;
- Northern District of Illinois, www.justice.gov/usao-ndil;
- District of Maryland, www.justice.gov/usao-md;
- Eastern District of New York, www.justice.gov/usao-edny; and
- Eastern District of Virginia, www.justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:
- DEA at www.dea.gov;
- FBI at www.fbi.gov;
- HHS-OIG at www.oig.hhs.gov;
- DHA at www.health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at www.opm.gov; and
- DOL at www.dol.gov.
Walgreens Agrees to Pay up to $350M for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal GovernmentRead the Press Release
WASHINGTON — Today, The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.
For information about the U.S. Attorneys’ Offices, visit:
- Middle District of Florida, www.justice.gov/usao-mdfl;
- Northern District of Illinois, www.justice.gov/usao-ndil;
- District of Maryland, www.justice.gov/usao-md;
- Eastern District of New York, www.justice.gov/usao-edny; and
- Eastern District of Virginia, www.justice.gov/usao-edva.
For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:
- DEA at www.dea.gov;
- FBI at www.fbi.gov;
- HHS-OIG at www.oig.hhs.gov;
- DHA at www.health.mil/About-MHS/OASDHA/Defense-Health-Agency;
- OPM at www.opm.gov; and
- DOL at www.dol.gov.
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Walgreens Agrees to Pay up to $350 Million for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal GovernmentRead the Press Release
WASHINGTON – The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co. and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal healthcare programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear “red flags” indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said John J. Durham, United States Attorney for the Eastern District of New York. “The settlement also underscores our Office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing, or distributing activities.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a Memorandum of Agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.
Walgreens Agrees to Pay up to $350M for Illegally Filling Unlawful Opioid Prescriptions and Submitting False ClaimsRead the Press Release
WASHINGTON — The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.
The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.
The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.
In light of the settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.
“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”
“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”
“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”
“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”
“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”
“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”
“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”
In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.
“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation's largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”
“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”
“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”
The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.
The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).
The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisianaprovided substantial assistance in the investigation.
The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.
The claims asserted against defendants are allegations only and there has been no determination of liability.
walgreens_settlement.pdfVenezuelan National Admits Resisting Arrest by Federal OfficersRead the Press Release
PROVIDENCE – A Venezuelan national illegally present in the United States today admitted to a federal judge that he resisted arrest by Immigration and Customs Enforcement Deportation Officers while being taken into custody on an immigration warrant, announced Acting United States Attorney Sara Miron Bloom.
Edward Antonio Reyes Calderon, 22, admitted that he violently resisted while being arrested by three uniformed Deportation Officers, injuring two of them, as they took him into custody outside of the Rhode Island District Court in Providence on February 13, 2025. He had just completed an appearance in state court on a Domestic Violence charge and was being released from state custody on bail.
According to information presented to the court, Reyes Calderon became aggressive and resisted as the three officers struggled to apply hand cuffs. He continued to push and pull the Deportation Officers. As the struggle continued for several minutes, an officer deployed pepper spray to gain control of the defendant.
Two of the officers suffered minor injuries.
Reyes Calderon pleaded guilty to a charge of resisting arrest of a federal officer. He is scheduled to be sentenced on July 22, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorneys Peter I. Roklan and Taylor A. Dean.
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.
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Up to $5 Million Reward Offered for Capture of Archaga Carías, a Top 10 Most Wanted Fugitive and Leader of Foreign Terrorist Organization MS-13Read the Press Release
U.S. Foreign Terrorist Organization MS-13 leader Yulan Andony Archaga Carías, also known as “Alexander Mendoza” and “Porky,” 43, is the highest-ranking member of MS-13, a U.S.-designated Foreign Terrorist Organization (FTO), in Honduras and was previously charged in 2021 in a superseding indictment in the Southern District of New York with racketeering, narcotics trafficking, and firearms offenses. Archaga Carías, a Honduran national, was subsequently placed on the FBI’s 10 Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI)’s Most Wanted Fugitives List. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs is offering a reward under the Transnational Organized Crime Rewards Program (TOCRP) of up to $5 million for information leading to his arrest and/or conviction in any country.
“This terrorist leader can no longer be allowed to live free as MS-13’s evil devastates communities in America and throughout the western hemisphere,” said Attorney General Pamela Bondi. “If you can contribute information leading to his arrest – come forward now.”
Archaga Carías remains at large. If you have information, please contact the FBI by email at [email protected], or via WhatsApp at +1-832-267-1688. If you are outside the United States, you may also contact the nearest U.S. Embassy or Consulate. If you are in the United States, you may also contact the local FBI, DEA, or HSI office in your city. Only tips sent to U.S. Government will be considered for reward.
“Dismantling and ultimately eliminating MS-13 continues to be one of the FBI's highest priorities, and we're not stopping until that mission is complete,” said FBI Director Kash Patel. “Alongside our dedicated law enforcement partners, the FBI will find Archaga Carías — a terrorist whose reign of terror at the helm of MS-13 is coming to an end.”
“With MS-13 now officially designated as a Foreign Terrorist Organization, the rules have changed — and so has the mission,” said DEA Acting Administrator Derek Maltz. “Archaga Carías isn't just a fugitive — he's a foreign terrorist waging war on innocent Americans through murder, trafficking, and terror. Let me be clear: under this Administration, we will dismantle MS-13 piece by piece—and anyone protecting him will fall with him. A $5 million is on the table. Turn him in. End this threat.”
A co-defendant, David Campbell, aka “Viejo Dan” and “Don David,” a Honduran national, is currently in custody in the United States facing the charges contained in the superseding indictment. In addition to Archaga Carías and Campbell, the superseding indictment charges three other MS-13 leaders, Juan Carlos Portillo Santos also known as “Juancy;” Victor Eduardo Morales Zelaya also known as “Cuervo;” and Jorge Alberto Velasquez Paz also known as “Chacarron,” with racketeering, narcotics trafficking, and firearms offenses. Portillo Santos, a Honduran national, is in custody in Honduras serving a lengthy prison sentence. Morales Zelaya and Velasquez Paz, both Honduran nationals, remain at large. The case is assigned to U.S. District Court Judge Gregory H. Woods for the Southern District of New York.
“MS-13 remains one of the most dangerous criminal organizations in the world, and the recent designation of MS-13 as a Foreign Terrorist Organization underscores this reality,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York. “This Office, working closely with our law enforcement partners, will continue to investigate, prosecute and track down MS-13’s leadership, no matter where in the world they may be hiding.”
As alleged in the superseding indictment previously unsealed in Manhattan federal court, Mara Salvatrucha, commonly known as MS-13 is a transnational criminal and foreign terrorist organization that engages in acts of violence, including murders, kidnapping, and assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. Archaga Carías is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, Archaga Carías is in charge of, among other things, the gang’s drug trafficking operations, ordering and coordinating acts of violence, including numerous murders, and the laundering of drug proceeds. MS-13’s drug trafficking operations led by Archaga Carías include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.
“President Trump has been very clear — we will not allow criminal groups and their members like Porky to threaten Americans,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs. “We will work with our international partners to find these criminals wherever they may be hiding.”
Archaga Carías and other MS-13 members and associates acting at his direction also provided protection to drug trafficking organizations (DTOs) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. Archaga Carías contracted out members of MS-13 as “Sicarios,” or hit men, to DTOs for payment. Members of MS-13 committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. Archaga Carías and MS-13 also supplied DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. Archaga Carías also ordered multiple murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom Archaga Carías believed had been disloyal to the gang.
Campbell was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13. As an associate of MS-13 and close confidant of Archaga Carías, Campbell planned and coordinated retaliatory acts of violence with Archaga Carías, and assisted MS-13 and Archaga Carías in establishing businesses to launder the gang’s drug proceeds. Campbell and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.
Morales Zelaya was a national leader of MS-13 in Honduras and a close associate of Archaga Carías. Morales Zelaya coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.
Portillo Santos was a high-ranking member of MS-13 in Honduras who reported to Morales Zelaya. Portillo Santos was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers. Campbell, 58, of Honduras, is currently in Federal Bureau of Prisons (FBOP) custody facing the charges in the superseding indictment. Portillo Santos, 36, of Honduras, is currently in custody in Honduras on local charges. Archaga Carías, 43, and Morales Zelaya, 50, of Honduras, remains at large.
If convicted, Archaga Carías faces a maximum penalty of life in prison and a mandatory minimum penalty of 40 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Joint Task Force Vulcan (JTFV) and the Southern District of New York’s National Security and International Narcotics Unit are handling the case. Assistant U.S. Attorney David J. Robles and Special Assistant U.S. Attorney Christopher Eason, and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are in charge of the prosecution.
This case was brought by JTFV, which was created in 2019 to destroy MS-13 and now expanded to target Tren de Aragua and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; HSI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the FBOP have been essential law enforcement partners and spearheaded JTFV’s investigations.
This case is part of Operation Take Back America and an Organized Crime Drug Enforcement Task Force (OCDETF) operation. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal aliens, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The charges contained in the superseding indictment are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Guatemalan Nationals and One Brevard County Man Plead Guilty to Drug and Immigration OffensesRead the Press Release
Orlando, Florida – United States Attorney Gregory W. Kehoe announces that Augusto Rene Reyes-Gonzalez (37, Guatemala), Carlos Grijalva-Garcia (38, Guatemala), and Brandon Charod Smith (39, Palm Bay) have pleaded guilty to their respective roles in conspiring to distribute and distributing cocaine and methamphetamine. Reyes-Gonzalez and Grijalva-Garcia also pleaded guilty to illegal reentry by a deported alien. Reyes-Gonzalez and Smith each face a mandatory minimum penalty of 10 years, up to life, in federal prison. Grijalva-Garcia faces a maximum penalty of 20 years in federal prison. No sentencing dates have been set.
According to court documents, in August and September 2023, Reyes-Gonzalez conspired with Grijalva-Garcia to distribute cocaine, which they distributed to a confidential source on August 25, 2023. Between September 2023 and January 2024, Reyes-Gonzalez conspired with Smith to distribute 50 grams or more of methamphetamine, which they distributed to the same confidential source on September 8, October 6, December 1, and December 22, 2023. In total, the conspiracies involved over 80 grams of cocaine and over 3 kilograms of pure methamphetamine.
At the time of the drug conspiracies, Reyes-Gonzalez and Grijalva-Garcia were citizens of Guatemala and found to be unlawfully in the United States. Both individuals had previously been removed from the United States on multiple occasions.
This case was investigated by the Drug Enforcement Administration, U.S. Customs and Border Protection, the Federal Bureau of Investigation, the Palm Bay Police Department, the Rockledge Police Department, the Melbourne Police Department, the Cocoa Police Department, and the Brevard County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Brandon Cruz, Dana Hill, and Megan Testerman.
Three Men Indicted for Controlled Substance ConspiracyRead the Press Release
BOSTON – Three men residing in Boston have been indicted by a federal grand jury in connection with a drug trafficking conspiracy involving methamphetamine, fentanyl and cocaine.
Heriberto Perez, 50, whose immigration status is unknown; Jean Carlos Frias Polcano, 27, a Dominican national; and Rafael Vargas-Cabrera, 36, were each indicted on one count of conspiracy to distribute and to possess with intent to distribute controlled substances and one count of possession with intent to distribute 50 grams or more of methamphetamine. Perez and Frias Polcano were also indicted on one count each of distribution and possession with intent to distribute 40 grams or more of fentanyl.
According to court documents, in July 2024, law enforcement authorities received information about the drug trafficking activities of Perez. Over the course of the investigation, over 2.6 kilograms of pure methamphetamine, as well as hundreds of grams of cocaine and over 60 grams of fentanyl was allegedly seized from Perez and his associates, including Frias Polcano and Vargas-Cabrera, through controlled purchases.
The charge of conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of up to $5 million. Perez and Frias Polcano are subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol Tabacco, Firearms and Explosives, Boston Field Division made the announcement. Assistant U.S. Attorney Alathea Porter of the Narcotic & Money Laundering Unit is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Subcontractor Pleads Guilty to Conspiracy to Bribe General Services Administration OfficialRead the Press Release
Greenbelt, Maryland – A Mt. Airy, Maryland, man pled guilty to conspiring to bribe a U.S. General Services Administration (GSA) official, wire fraud in connection with an Economic Injury Disaster Loan, and possession of a machine gun with an obliterated serial number.
According to court documents, Christopher Brackins, 51, conspired to bribe Public Official A, a former GSA contracting officer’s representative. GSA is a federal agency that manages federal property. Brackins owned a general construction company that performed subcontracting work on GSA projects.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Matthew R. Galeotti, Head of the Justice Department’s (DOJ) Criminal Division; Deputy Inspector General Robert Erickson, GSA Office of Inspector General (GSA-OIG); Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) Baltimore Field Office; Acting Inspector General Steven A. Stebbins, U.S. Department of Defense Office of Inspector General (DOD-OIG); and Inspector General Joseph V. Cuffari, Ph.D., U.S. Department of Homeland Security Office of Inspector General (DHS-OIG).
As outlined in court documents, between 2018 and 2021, Brackins provided approximately $50,000 worth of money and other things of value to Public Official A in exchange for Public Official A’s role in directing GSA projects to Brackins’s company. For example, in late 2018, as part of the bribery scheme, Brackins paid a fraudulently inflated bonus to one of his employees. Brackins then directed the employee to pay Public Official A $8,000 in cash from the fraudulently inflated bonus check. Similarly, in early 2021, Brackins paid Public Official A $25,000, at Public Official A’s direction, using an intermediary who accepted the payments through the intermediary’s air-conditioning repair business. The defendant and his company earned an estimated $133,413 in profits from this scheme.
Brackins pled guilty to conspiracy to commit bribery of a federal public official. He faces a maximum penalty of five years in prison followed by up to three years of supervised release. Brackins also pled guilty to wire fraud and possession of a machine gun, which carry a maximum penalty of 20 years and 10 years in prison, respectively, and up to three years of supervised release each. U.S. District Judge Deborah L. Boardman has scheduled sentencing for Wednesday, September 10, at 2 p.m.
Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayes commended the GSA-OIG, FBI, DOD-OIG, and DHS-OIG for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Joel Crespo and DOJ Trial Attorney Jonathan E. Jacobson who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Statement of Acting United States Attorney Matthew Podolsky on the Conviction of Nadine MenendezRead the Press Release
Moments ago, a unanimous jury convicted Nadine Menendez for her critical role in a corruption and foreign influence scheme involving her husband, convicted former Senator Robert Menendez. Nadine Menendez and Senator Menendez were partners in crime. Over the span of five years, Nadine Menendez agreed to accept and accepted all sorts of bribes – including gold bars, cash, a Mercedes-Benz convertible, and a no-show job – all in exchange for the Senator’s corrupt official acts. Together, Nadine Menendez and the Senator placed their own interests and greed ahead of the interests of the citizens the Senator was elected to serve. Today’s verdict sends the clear message that the power of government officials may not be put up for sale, and that all those who facilitate corruption will be held accountable for their actions. I thank the career prosecutors of this Office and the special agents of the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigation for their unwavering commitment to this case, and for their extraordinary efforts in ensuring that justice was done.
Somerset County Man Convicted of Drug Trafficking, Possession of Firearms in Furtherance of Drug Trafficking, and Illegal Possession of FirearmsRead the Press Release
TRENTON, N.J. – A Somerset County, New Jersey, man was convicted of drug trafficking, possessing firearms in furtherance of drug trafficking, and illegal possession of firearms, U.S. Attorney Alina Habba announced.
Malachi A. Muhammad, 50, of Somerset, was convicted of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl and heroin, and one count of possession with intent to distribute cocaine. Muhammad was also convicted of one count of possession of firearms in furtherance of a drug trafficking crime and one count of unlawful possession of firearms by a convicted felon. Muhammad was convicted following a one-week trial before U.S. District Judge Georgette Castner in Trenton federal court. The jury deliberated less than two hours before returning the guilty verdicts.
“This verdict underscores our commitment to keeping guns out of the hands of drug traffickers and dangerous drugs like methamphetamine, fentanyl, heroin and cocaine out of our communities. My message is clear: if you jeopardize the safety and security of New Jerseyans, we will hold you accountable. Our office and our law enforcement partners won’t rest until we do.”
- U.S. Attorney Alina Habba
“This conviction is an example of ATF’s dedication to working with our state and local partners in identifying, investigating, and apprehending criminals who prey upon innocent citizens and lessen the quality of life in our neighborhoods through the trafficking of narcotics and the illegal possession and use of firearms, said Newark ATF Special Agent in Charge L.C. Cheeks, Jr. “This is a reminder that there is no safe haven for those that wreak havoc or contribute to crime in our communities. ATF will never waver in our commitment to protecting the people we serve and public safety.”
According to documents filed in this case and the evidence at trial:
On August 19, 2021, officers from the Lawrence Township Police Department responded to the southbound lanes of Route 1 near the Quaker Bridge Mall in response to calls from concerned citizens about a car stopped in the middle of the highway. Officers found Muhammad, the only occupant and driver of the car, initially unresponsive and believed him to be asleep or experiencing a medical emergency. After officers were able to arouse Muhammad, they noticed the handle of a handgun in between his legs. Officers removed Muhammad from the vehicle, and he was placed under arrest. A subsequent search of the vehicle revealed 91 pills of methamphetamine, 468 wax folds of fentanyl and heroin, 5 bags of cocaine, and five additional firearms, including two semi-automatic rifles, and over 150 rounds of ammunition.
The drug trafficking charges each carry maximum penalties of up to 20 years in prison and fines of up to $1,000,000. The firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum sentence of five years imprisonment, which must be served consecutively to any other term of imprisonment, a maximum penalty of life imprisonment, and a fine of up to $250,000. The unlawful possession of a firearm charge carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Habba credited special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) under the direction of Special Agent in Charge L.C. Cheeks, Jr., the Lawrence Township Police Department, under the direction of Interim Chief Kevin Reading, the New Jersey State Police, under the direction of Colonel Patrick J. Callahan, and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to the guilty verdict.
The government is represented by Assistant U.S. Attorney Tracey A. Agnew and Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Serial Armed Robber Who Targeted Delivery Workers in DC, MD, Is Sentenced to 16 Years in Federal PrisonRead the Press Release
WASHINGTON – Rubin Raphael Bordeaux, 36, of the District, was sentenced today in U.S. District Court to 192 months in prison for his role a string of armed carjackings that targeted delivery workers in November 2023. At the height of the criminal spree, Bordeaux’s escalating violence culminated in a shooting, an eight-mile chase in an Amazon van, a vehicle collision, and a foot chase.
The sentence was announced by U.S. Attorney Edward R. Martin Jr., and FBI Special Agent in Charge Sean T. Ryan of the Washington Field Office Criminal and Cyber Division.
Bordeaux pleaded guilty on September 12, 2024, to carjacking and to possessing a firearm during a crime of violence. In addition to the 192-month prison term, U.S. District Court Judge Jia M. Cobb ordered Bordeaux to serve three years of supervised release.
According to court documents, Bordeaux and his co-defendants specifically targeted delivery drivers in a spree of armed carjackings and robberies over four days across the District of Columbia and Maryland.
On November 9, 2023, around 1:30 p.m., a UPS driver was in the back of her work truck in Upper Marlboro, Maryland sorting packages. As she was working, Bordeaux and a co-conspirator were lying in wait, planning to rob her at gunpoint. As the UPS driver continued her job, the co-conspirator saw his opportunity and, with a silver firearm in hand, jumped into the back of the UPS truck. The co-conspirator told the UPS driver to “calm down. I just need your wallet and keys.” He took the UPS driver’s keys and ordered her to show him how to operate the UPS truck. In fear for her life, the UPS driver complied. The co-conspirator then threw the UPS driver’s phone in her direction and took off driving the truck. Bordeaux was not far behind. He followed the UPS truck in a tan pickup truck. Eventually Bordeaux and his co-conspirator stopped to offload packages from the UPS truck and abandoned the vehicle in Upper Marlboro, Maryland.
Just one hour later, Bordeaux and a co-conspirator struck again in Oxon Hill, Maryland. This time, they targeted a FedEx driver who was finishing a break. Bordeaux and the co-conspirator used their pickup truck to box-in the FedEx driver. Bordeaux jumped out of the pickup, quickly approached the FedEx driver, displayed a revolver, and demanded the keys. The FedEx driver gave up the company truck, and Bordeaux, followed by his co-conspirator in the tan pickup truck, drove off. Law enforcement recovered the FedEx truck in Washington, D.C., after it had been stripped of multiple packages.
Four days later, on November 13, 2023, Bordeaux and a co-conspirator targeted another work vehicle. On that day, around 5:24 a.m., an Amtrak driver was seated in the rear passenger seat of a conspicuously marked Amtrak truck. The Amtrak driver and his two coworkers, who were also in the vehicle, were planning to start their workday with breakfast from a restaurant. While waiting inside the running vehicle, the Amtrak driver noticed that a man with a mask had walked up to the truck. Believing this person was a coworker, the Amtrak driver got out of the truck. The masked individual was not his coworker.
Bordeaux ordered the Amtrak driver to “give me the truck.” When the Amtrak driver was slow to react, Bordeaux brandished a black gun and demanded again, “give me the truck.” The Amtrak driver surrendered the vehicle. Bordeaux got into the driver seat and drove away. As he did so, he was followed by a gray sedan.
Bordeaux later abandoned the truck in Washington, D.C. after causing $27,883 in damage to the vehicle during the short time he had it in his possession.
The next day, on November 14, 2023, Bordeaux and his co-conspirators targeted a shopper and her young child in a department store parking lot in Forestville, Maryland. An individual approached the woman at her car, demanded the keys to her vehicle and then forcefully removed the keys from her hands. The individual fled with the car toward Washington, D.C.
Later that day, Bordeaux and three other individuals left the shopper’s vehicle parked in an area of Southeast D.C. As the four walked away, they came upon an Amazon delivery driver, who became Bordeaux’s next target. The Amazon driver was walking to his work van when Bordeaux approached him in the road. A second person from Bordeaux’s group simultaneously walked towards the Amazon driver, who began to run. Bordeaux fired a shot in the Amazon driver’s direction while the other individual also fired at the Amazon driver. Bordeaux’s bullet barely missed the driver, who then stopped and surrendered. Bordeaux went through the Amazon driver’s pockets, demanded “give me them f---- keys” and threatened the driver with “do you want to die?” Bordeaux located the keys and fled in the van while his accomplice ran off in the opposite direction.
Behind the wheel of the Amazon van, Bordeaux led the police on an eight-mile-long chase crossing from the District of Columbia into Maryland. While trying to make his getaway, Bordeaux struck numerous vehicles, among them a police car. Once he realized he could not shake the police, Bordeaux stopped the vehicle on a sidewalk in Capitol Heights, Maryland. He attempted to run from law enforcement on foot but was quickly stopped. The keys to the shopper’s carjacked Honda were recovered from Bordeaux’s pocket.
This case was investigated by the FBI Washington Field Office Violent Crimes Task Force, the Prince George’s County Police Department, and the MPD. The matter is being prosecuted by Assistant U.S. Attorney Meredith Mayer-Dempsey, Special Assistant U.S. Attorney Emily Reeder-Ricchetti, and former Assistant U.S. Attorneys Omeed Ali Assefi and Jacqueline Yarbro.
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Rockford Man Sentenced to Eight Years in Prison for Illegally Possessing FirearmRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to eight years in prison for illegally possessing a firearm.
CHARLES JACKSON, 26, pleaded guilty earlier this year to a charge of illegal possession of a firearm by a previously convicted felon. U.S. District Judge Iain D. Johnston imposed the sentence during a hearing on Friday in federal court in Rockford.
Jackson admitted in a plea agreement that in May 2022, while fleeing from the Rockford Police Department, he possessed a modified handgun loaded with 25 rounds of ammunition, including one in the chamber. As a previously convicted felon, Jackson was prohibited by federal law from possessing a firearm.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Christopher Amon, Special Agent-in-Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives. The government was represented by Assistant U.S. Attorney Theodora Anderson.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN). In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Previously Convicted Felons from Waushara County Sentenced to Prison for Trafficking Methamphetamine and Firearms, including MachinegunsRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2025, Senior United States District Judge William C. Griesbach sentenced John D. Taylor (age: 37) to a total of eight years’ imprisonment and five years’ supervised release after Taylor pled guilty to Dealing Firearms Without a License, Felon in Possession of Firearms, Transfer and Possession of Machineguns, and Possessing Firearms in Furtherance of Drug Trafficking, in violation of Title 18, United States Code, Sections 922(a)(1)(A), 922(g)(1), 922(o), & 924(c).
Relatedly, on November 22, 2024, Judge Griesbach had sentenced Taylor’s co-defendant, Allison A. Mundt (age: 31) to a total of seven years’ imprisonment and five years’ supervised release after Mundt pled guilty to Dealing Firearms Without a License, Felon in Possession of Firearms, and Possessing Firearms in Furtherance of Drug Trafficking, in violation of Title 18, United States Code, Sections 922(a)(1)(A), 922(g)(1), & 924(c).
According to court records, in March and April 2024, law-enforcement officers developed information that Taylor and Mundt, previously convicted felons living in Waushara County, were offering firearms for sale. Law enforcement arranged controlled purchases of firearms and methamphetamine from Taylor and Mundt, which culminated in a search warrant. In all, the investigation recovered approximately 35 firearms, including machineguns, short-barrel rifles, short-barrel shotguns, and pistols, some with no serial numbers.
Officers also seized drum magazines and other high-capacity magazines, over 1,700 rounds of ammunition, and an ounce of methamphetamine intended for distribution.In sentencing Taylor and Mundt, Judge Griesbach stressed that trafficking in firearms without a license circumvents background checks, increasing the risk that firearms will end up in the hands of convicted felons and other prohibited persons. The court noted that such conduct is even more dangerous with machineguns and other high-capacity rifles and pistols. Moreover, these defendants were previously convicted felons who were using and distributing methamphetamine.
This case was investigated by the Waushara County Sheriff’s Department, Lake Winnebago Area Metropolitan Enforcement Group Drug Unit, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Timothy Funnel.
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Pittsburgh Woman Pleads Guilty to Credit Card Fraud and Aggravated Identity Theft Charges in Car Rental ScamRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of access device fraud and aggravated identity theft, Acting United States Attorney Troy Rivetti announced today.
Tai Jauna Jones, 29, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the Court was advised that Jones, through the dark web, obtained credit card numbers and other personal information of numerous individuals, and then was one of several co-defendants who provided the fraudulently obtained credit card numbers to a manager at a Monroeville car rental location. The manager rented the vehicles knowing that the true owners of the credit card numbers did not authorize the car rentals, renting a total of more than 140 vehicles in this manner to cause losses of more than $500,000.
Judge Horan scheduled sentencing for August 14, 2025. The law provides for a total sentence of not less than two years and up to 12 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The United States Secret Service, in conjunction with the Pittsburgh Bureau of Police, conducted the investigation that led to the prosecution of Jones.
Parkersburg Man Sentenced to Prison for Role in Charleston Methamphetamine Trafficking Organization and Violating Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – Anthony Michael Mowery, 48, of Parkersburg, was sentenced today to nine years in prison, to be followed by four years of supervised release, for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine and violating supervised release.
According to court documents and statements made in court, from in or about January 2024 to in or about May 2024, Mowery conspired with others in a Drug Trafficking Organization (DTO) that distributed methamphetamine in the Charleston area. Mowery facilitated meetings during which his co-conspirators exchanged large quantities of methamphetamine for distribution.
On May 5, 2024, Mowery arranged for co-conspirator Michael Dale Cain to travel to Charleston for the purpose of picking up approximately 3 pounds of methamphetamine from another co-conspirator, Kirt Ray King, that Cain intended to transport to Parkersburg and distribute to others. After Cain acquired the methamphetamine, he was stopped by law enforcement officers who searched his vehicle, seized the methamphetamine, and arrested Cain.
Mowery has a long criminal history that includes prior convictions for unlawful assault, assault, battery, child abuse, destruction of property, and fleeing from an officer. At the time of this offense, Mowery was serving a term of supervised release as a result of his July 5, 2018, conviction for being a felon in possession of a firearm. Today’s sentence includes two years in prison, to run concurrently to the nine-year sentence imposed by the Court, for committing a crime while on supervised release.
Mowery is among four individuals indicted by a federal grand jury in the DTO conspiracy. All four pleaded guilty. Cain, 49, of Parkersburg, was sentenced on January 29, 2025, to eight years and one month in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. King, 48, of Charleston, pleaded guilty on January 27, 2025, to conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine and is scheduled to be sentenced on June 23, 2025. Co-defendant John Wayne Harkless, 46, of Charleston, pleaded guilty on November 20, 2024, to conspiracy to distribute methamphetamine and is scheduled to be sentenced on June 23, 2025.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Joseph R. Goodwin imposed the sentences. 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. 2:24-cr-95.
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Owner of Pharmaceutical Company Pleads Guilty to Unlawful Distribution of $60 Million in Diverted HIV DrugsRead the Press Release
MIAMI – Adam Brosius, 60 of Delray Beach, pleaded guilty in connection with his role in a nationwide scheme to unlawfully distribute misbranded and adulterated HIV drugs to unsuspecting patients.
According to court documents, Brosius was a part owner of Safe Chain Solutions LLC (“Safe Chain”), a wholesale distributor of pharmaceuticals based in Cambridge, Maryland, that purported to sell legitimate prescription drugs to pharmacies throughout the country, including expensive HIV medication.
In connection with his guilty plea, Brosius admitted that he and his co-conspirators illegally acquired HIV drugs that had been diverted from the regulated pharmaceutical distribution chain by various means. One common method of prescription drug diversion involved buying bottles of supposed prescription HIV medication from individuals on the street, repackaging and relabeling the bottles, and then reselling the drugs to Safe Chain at steeply discounted prices with falsified documentation concealing the drugs’ true origin. Brosius and his co-conspirators were notified of the false documentation accompanying these drugs but continued purchasing the steeply discounted HIV drugs and reselling them to pharmacy customers, which dispensed the diverted drugs to unsuspecting patients. According to court documents, at times patients received bottles labeled as their prescription medication but which contained a different drug entirely, with one patient passing out and remaining unconscious for 24 hours after taking an anti-psychotic drug thinking it was his prescribed HIV medication.
Sentencing is set for August 29, 2025 in Fort Lauderdale before United States District Court Judge William P. Dimitrouleas. Brosius pleaded guilty to conspiracy to commit wire fraud and faces up to 20 years in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Jesus Barranco of the United States Department of Health and Human Services, Office of Inspector General, Miami Regional Office, and Acting Special Agent in Charge Brett Skiles of the FBI, Miami Field Office, made the announcement.
Assistant United States Attorney Alexander Thor Pogozelski of the Southern District of Florida and Trial Attorney Jacqueline DerOvanesian of the Department of Justice are prosecuting the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
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 number 24-cr-20255.
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Owner of San Jose-Based Technology Staffing Firm Sentenced to 14 Months for Visa Fraud SchemeRead the Press Release
SAN JOSE – Kishore Dattapuram was sentenced today to 14 months in federal prison for visa fraud and conspiracy to commit visa fraud. U.S. District Judge Edward J. Davila handed down the sentence.
Dattapuram, 55, of Santa Clara, was indicted in February 2019 along with two co-defendants on one count of conspiracy to commit visa fraud and 10 counts of substantive visa fraud. Dattapuram pleaded guilty to all counts in November 2024.
Dattapuram co-owned and operated Nanosemantics, Inc., a staffing firm in San Jose that provided skilled employees to technology companies in the Bay Area. Nanosemantics received a commission for workers placed at client companies. Nanosemantics regularly submitted H-1B petitions for foreign workers so that foreign workers could obtain temporary authorization to live and work for employers in the United States. In order to secure an H-1B visa, an employer or other sponsor must submit an “I-129” petition to the United States Citizenship and Immigration Services (USCIS). A petition and associated documentation must confirm the existence and duration of the job waiting for the worker, and describe key details including the wages associated with the position.
Dattapuram worked with his co-defendants to submit fraudulent H-1B applications that falsely represented that foreign workers had specific jobs waiting for them at designated end-client companies when in fact the jobs did not exist. On multiple occasions, Dattapuram paid companies to be listed as end-clients for the foreign workers, even though he knew the workers would never work for those employers. As defendants admitted, the goal of the scheme was to allow Nanosemantics to obtain visas for job candidates before securing jobs for them, thereby allowing Nanosemantics to place those workers with employers as soon as those jobs were available, rather than waiting for the visa application process to conclude, and giving Nanosemantics an unfair advantage over its competitors.
Acting United States Attorney Patrick D. Robbins and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King made the announcement.
In addition to the prison term, Judge Davila also ordered Dattapuram to serve three years of supervised release, forfeit $125,456.48, and pay a fine of $7,500 and a $1,100 special assessment fee.
Assistant U.S. Attorney Sarah Griswold and Special Assistant U.S. Attorney Johnny James are prosecuting this case with the assistance of Lynette Dixon and Nina Burney. The prosecution is the result of an investigation by HSI, with assistance from USCIS.
Oshkosh Man Indicted on Production of Child Pornography ChargesRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2025, a federal grand jury issued an indictment alleging that Bradley D. Hounsell (age: 43) of Oshkosh, Wisconsin, “attempted to and did employ a minor under the age of 18, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct” in violation of Title 18, United States Code, Sections 2251(a), 2251(e), and 2(a).
According to the unsealed indictment, between on or about November 4, 2023, and November 8, 2023, Hounsell is alleged to have employed, used, persuaded, induced, enticed, and coerced a minor for the purpose transporting child pornography via the internet. If convicted of the offense, Hounsell faces a mandatory minimum sentence of 15 years’ imprisonment and up to 30 years of incarceration. He may also be fined up to $250,000 and would be required to register as a sex offender under state and federal law.
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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Winnebago County Sheriff’s Office. It will be prosecuted by Trial Attorney William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilty beyond a reasonable doubt.
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Operators of New Jersey Company Sentenced to Prison and Enter into Related Civil Settlement Agreement for Roles in $127 Million Health Care Fraud and Kickback SchemeRead the Press Release
NEWARK, N.J. – Two operators of a New Jersey marketing company were sentenced to prison for their roles in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, United States Attorney Alina Habba announced.
Eric Karlewicz a/k/a “Anthony Mazza,” 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, were sentenced by U.S. District Judge Esther Salas in Newark federal court following their guilty pleas to Informations charging conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud. Karlewicz was sentenced to 51 months in prison and Romanowski was sentenced to 80 months in prison.
According to documents filed in this case and statements made in court:
From in or around June 2017 through in or around May 2019, Karlewicz and Romanowski participated in a scheme with durable medical equipment (“DME”) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Karlewicz and Romanowski controlled a New Jersey-based marketing company, Empire Pain Center Holdings LLC (“Empire”), though which they and their co-conspirators identified Medicare and TRICARE beneficiaries to target. Employees of Empire called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and Romanowski paid Empire’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.
Karlewicz and Romanowski, through Empire, then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors in exchange for prescriptions for the DME. As agreed upon, the doctors signed the prescription orders regardless of medical necessity, often without ever speaking to the patient. Karlewicz and Romanowski distributed the prescriptions to DME suppliers around the country, with which Empire had additional kickback arrangements. These DME suppliers submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Empire as payment for the doctor’s orders generated through the conspiracy. Empire received more than $63 million from DME suppliers in exchange for the referrals.
In total, Karlewicz and Romanowski caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $127 million for DME. Using proceeds from the scheme, Karlewicz and Romanowski purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.
In addition to the prison terms, Judge Salas sentenced each defendant to three years of supervised release and ordered them to pay $127,600,000 in restitution. Karlewicz was ordered to forfeit over $63 million, and Romanowski was ordered to forfeit over $5.5 million.
United States Attorney Habba also announced that Karlewicz and Empire entered into a civil settlement agreement. As part of that civil settlement agreement, Karlewicz and Empire admitted to violating the False Claims Act and agreed to the entry of a consent judgment against them in the amount of $63.8 million.
The civil settlement agreement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Robert Jackson Tyler, Jr., will receive a share of the funds recovered by the United States pursuant to the False Claims Act.
United States Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.
The government is represented in the criminal case by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit in Newark.
The government is represented in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit and Trial Attorney Martha Glover of U.S. Department of Justice, Civil Fraud Section.
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Defense counsel: Darren Gelber, Esq. (for Eric Karlewicz)
Alyssa Cimino, Esq. (for Nicco Romanowski)
Newtown Man Admits Stealing Nearly $3 Million to Fund His Day Trading ActivityRead the Press Release
Marc H. Silverman, Acting United States Attorney for the District of Connecticut, and Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that on April 18, 2025, TIMOTHY MINGIONE, 33, of Newtown, waived his right to be indicted and pleaded guilty before U.S. District Judge Alvin W. Thompson in Hartford to an offense related to his theft of nearly $3 million to fund his day trading activity.
According to court documents and statements made in court, Mingione assisted investors in the purchase of real estate and then became the designated asset manager for the acquired properties, including overseeing the properties, addressing tenancy issues associated with the real estate, and reviewing property financials. In this role, Mingione had access to bank accounts required for property management. Mingione provided purchase and asset manager services for a New York-based real estate company, worked with a syndicate of investors involved in the purchase and management of five real estate properties in Connecticut and Florida, and worked as an asset manager for various other limited liability companies.
Beginning in approximately April 2023, to fund his day trading activity, particularly in S&P 500 options, Mingione stole from the various business bank accounts he had access to by writing checks against the accounts or by wiring monies from the accounts to his personal trading account with TD Ameritrade. Mingione tracked the monies he stole and, at times, returned funds to the accounts he had stolen from. However, by late spring 2024, he had amassed more than $1 million in trading losses and, by the end of September 2024, had stolen nearly $3 million.
Mingione pleaded guilty to one count of interstate transmission of stolen money, which carries a maximum term of imprisonment of 10 years. Judge Thompson scheduled sentencing for July 15.
Mingione has agreed to pay restitution of $ 2,958,203.
Mingione is released on a $40,000 bond pending sentencing.
This investigation is being conducted by the Federal Bureau of Investigation and the case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Middlesex County Woman Admits to Fraudulently Obtaining over $150,000 in Social Security Retirement BenefitsRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey woman admitted she defrauded the Social Security Administration for over eight years by improperly claiming her deceased mother’s Social Security retirement benefits, U.S. Attorney Alina Habba announced.
Deborah Bailey, 68, of Piscataway, New Jersey, pleaded guilty before U.S. District Judge Robert A. Kirsch in Trenton federal court to an Information charging her with theft of public money.
According to documents filed in this case and statements made in court:
The Social Security Administration provided retirement benefits to Bailey’s mother. Those benefits were paid through electronic funds into Bailey’s mother’s bank account. After Bailey’s mother died in 2016, Bailey did not notify the Social Security Administration about her mother’s death, and she made withdrawals from that bank account between 2016 and 2024. Through an investigation by the Social Security Administration, it was determined that Bailey withdrew approximately $150,903.00 in retirement benefits.
The charge of theft of public money carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for August 19, 2025.
U.S. Attorney Habba credited special agents of the Social Security Administration – Office of the Inspector General, under the direction of Special Agent in Charge Amy Connelly, with the investigation leading to the guilty plea.
The government is represented by Special Assistant U.S. Attorney Keith Abrams of the Narcotics/OCDETF Unit in Newark.
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Defense counsel: David Holman, Esq.
bailey.information.pdfMiami Executive Pleads Guilty to Massive Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Pushpesh Kumar Baid, also known as “PK Jain,” pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud investors in Tradepay Capital LLC (Tradepay), a purported factoring company. The proceeding was held before United States Magistrate Judge Lois Bloom. When sentenced, Baid faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $35 million and forfeiture of over $2.6 million.
John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Through a complex web of shell companies, straw bank accounts, fraudulent documents, and other lies, Baid and his co-conspirators deceived their victims into investing tens of millions of dollars into a business that did not exist,” stated United States Attorney Durham. “Today’s plea demonstrates that my Office will hold accountable fraudsters like Baid who enrich themselves at their investors’ expense.”
Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.
As set forth in court filings, Baid was the business head of Tradepay, which purported to be an international factoring business run by an executive team experienced in factoring invoices in particular industries and geographic regions. Factoring involves the sale of an invoice to a third party at a discount. In a factoring transaction, the seller of an invoice obtains immediate funding from the buyer of the invoice, and the buyer of the invoice makes a profit when the invoice is paid in full.
Between April 2017 and October 2019, Baid and his co-conspirators implemented a scheme to defraud investors in Tradepay by making it appear that Tradepay was a legitimate and successful business when it was, in fact, an elaborate scam. For example, the hundreds of invoices from various businesses that Tradepay purported to be factoring were fraudulent and included fake signatures for both sides of the transactions. Baid and his co-conspirators also funneled millions of dollars of investors’ funds—which they represented would be sent to Tradepay’s business partners—into a sprawling network of bank accounts that Baid controlled through shell entities and straw signatories. From those accounts, Baid and his co-conspirators spent millions of dollars on personal expenses, including cash withdrawals and purchases of luxury cars and watches. Baid even lied about his identity, concealing his real name from investors in order to obscure the fact that he was wanted for criminal offenses abroad.
Investors in Tradepay initially received payments on the invoices, which led them to contribute increasingly large sums of capital. By approximately July 2019, however, the payments on the invoices stopped, resulting in roughly $35 million in losses.
As part of his plea, Baid also admitted to defrauding investors in Luxestreet Inc., formerly known as Asset Capital Partners LLC (Luxestreet), and agreed to pay restitution to Luxestreet’s investors. Baid claimed that Luxestreet operated like a pawn shop for high end goods, including luxury watches. In reality, Luxestreet contracts were forged and the physical watches held by the company were mere knockoffs.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney are in charge of the prosecution, with assistance from Paralegal Specialist Sarah Burn.
The Defendant:
Pushpesh Kumar Baid (also known as “PK Jain”)
Age: 44
Miami, FloridaE.D.N.Y. Docket No. 21-CR-367 (DC)