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21 May 2025
Fort Dodge Man Pleads Guilty to Illegal Possession of FirearmsRead the Press Release
Daniel Smith, 38, from Fort Dodge, Iowa, pled guilty on May 20, 2025, to one count of illegal possession of firearms, in federal court in Sioux City. Smith was previously convicted of Unauthorized Possession of Offensive Weapons, in 2017, and Dominion/Control of Firearm/Offensive Weapon by a Felon, in 2022 both in Iowa. These convictions prohibited Smith from possessing firearms.
At the plea hearing, Smith admitted that in November 2024, in Fort Dodge, Iowa, he possessed one rifle and two shotguns which had been provided to him by another person to clean/store. On November 16, 2024, law enforcement went to Smith’s residence regarding a shots fired call and observed evidence of a shotgun being fired. During a follow-up search warrant on November 21, 2024, at Smith’s residence, law enforcement seized 3 guns, a .22 rifle, a .410 shotgun, and a 16-gauge shotgun. Smith admitted he had received the firearms and had fired two of the firearms to test their functioning.
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.
Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Smith remains in custody of the United States Marshal and will remain in custody pending sentencing. Smith faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge 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 24-3052.
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Former Tutor from New York Sentenced to 65 Years in Prison for Enticement of Minors to Engage in Sexual ActivityRead the Press Release
ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Stephen Andrew Cipkin, 38, a former tutor from Suffolk County in New York, has been sentenced by United States District Judge Dee D. Drell to 65 years in prison, followed by a lifetime of supervised release, for two counts of enticement of a minor to engage in sexual activity.
Cipkin was charged in a Bill of Information and Indictment with enticement of minors to engage in sexual activity and pleaded guilty to the charge on August 13, 2024.
At the guilty plea hearing, Cipkin admitted that from January 2022, through April 23, 2022, he used a smart phone and computer to knowingly persuade, induce, entice, and coerce a minor female under the age of 18 years old to engage in sexual activity. Cipkin, posing as an adolescent female seeking a friendship, used an online catfish account to contact the minor victim. He later admitted to being a male and began an online relationship with the minor victim after gaining her trust. During this relationship, Cipkin asked the minor victim to send sexually explicit photographs of herself to him and also asked her to meet up with him for sexual intercourse. After receiving the photographs and videos, he used them as blackmail to extort and threaten the minor victim.
From April 16, 2022, through April 23, 2022, Cipkin traveled from the State of New York to Natchitoches, Louisiana, to meet with the minor victim. Cipkin picked up the minor victim from her home and brought her to a hotel in the Western District of Louisiana where they engaged in sexual intercourse.
Cipkin also admitted that between January 1, 2021, and continuing through January 1, 2022, in the Northern District of Tennessee, he used his smart phone and computer to persuade, induce, entice, and coerce another minor female under the age of 18 years old to engage in illegal sexual activity. Cipkin reached out to the minor female victim using an online account that he had created and began an online relationship with the minor female victim, asking her to send sexually explicit photographs to him and to meet with him for sexual intercourse.
The case was investigated by the Federal Bureau of Investigation and Natchitoches Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Casey N. Stelly in the Western District of Louisiana.
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Former Secretary of Louisiana Department of Wildlife and Fisheries Indicted by Federal Grand JuryRead the Press Release
LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Jack Montoucet, former Secretary of the Louisiana Department of Wildlife and Fisheries (LDWF), has been indicted on federal charges. A federal grand jury in Lafayette has returned an indictment charging Montoucet with one count of conspiracy to commit bribery and wire fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering.
The indictment alleges that LDWF was an agency of the State of Louisiana that received benefits under federal programs involving grants, contracts, and other forms of assistance. While Secretary of the LDWF, Montoucet was the chief executive and empowered to enter contracts on LDWF’s behalf. Dusty J. Guidry was a Commissioner on the LDWF Commission which was charged with the control and supervision of the wildlife of the State of Louisiana and operated as a policy-making and budgetary control board. It is alleged that Guidry was placed on the Commission by and would take actions as directed by Montoucet. Leonard C. Franques, IV was a resident of the State of Louisiana and owned DGL1, LLC, a business created to provide online educational courses to be used by LDWF and was registered with the State of Louisiana in May 2020; Franques also owned LWF, LLC, (LWF) a Louisiana company registered with the State of Louisiana in June 2020.
It is alleged in the indictment that from approximately May 2020 until June 2022, Montoucet knowingly and unlawfully conspired with Guidry and Franques, and others known and unknown to the grand jury, to accept and agree to accept kickbacks from Franques in return for being influenced in connection with awarding a state contract to DGL1.
The indictment further alleges that Montoucet and Guidry used their official positions at LDWF to award a state contract to DGL1 and under the contract, DGL1 would provide online hunters’ education and boaters’ education courses and the education courses to resolve LDWF citations. It is alleged that DGL1 would keep a portion of the revenue generated from providing those services and in exchange, Franques agreed to provide, and Montoucet and Guidry agreed to accept, kickbacks and other things of value. It is alleged that as part of their conspiracy, Franques attempted to conceal the true source and nature of payments to Montoucet and Guidry.
According to the indictment, from on or about November 10, 2021, until June 10, 2022, LDWF received $454,174.14 from the LWF contract signed by Montoucet, of which $122,507.96 was held as a kickback for Montoucet, to be paid after he completed his term as LDWF Secretary. The indictment alleges that Montoucet, Guidry, and Franques agreed that after Montoucet’s retirement from LDWF, they would hire Montoucet and pay his kickbacks as a purported “signing bonus,” in order to conceal the true nature of these funds.
If convicted, Montoucet faces a sentence of not more than 5 years in prison on the conspiracy count, and up to 20 years in prison on the wire fraud and money laundering counts, and a fine of up to $1,000,000.
The case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorneys Myers P. Namie, Lauren L. Gardner, and LaDonte A. Murphy, along with Trial Attorneys Trevor Wilmot and Steven Loew of the Criminal Division’s Public Integrity Section of the Department of Justice.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
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Former Postal Employee Sentenced to Two Years Probation for Delay of U.S. MailRead the Press Release
NEW ORLEANS – CHRISTOPHER WASHINGTON (“WASHINGTON”), age 32, of Houma, La. was sentenced, on May 15, 2025, to 2 years probation after previously pleading guilty to delay of U.S. Mail matter by postal employee, in violation of 18 U.S.C. ' 1703(a), announced Acting U.S. Attorney Michael M. Simpson.
According to court documents, on or about June 2021, WASHINGTON delayed U.S. mail, which was intended to be conveyed by mail. The United States Postal Service, Office of Inspector General ("OIG") was notified about missing mail on certain Postal Routes in Houma, Louisiana. On June 16, 2021, the mail for the City Route 40 in Houma, was found discarded in bushes in the 700 block of Maple Avenue in Houma. WASHINGTON was the postal carrier assigned to the route on that date. On June 21, 2021, discarded mail was also discovered in a trash can in the1100 block of Daspit Street in Houma. This City Route, number 35, was also assigned to WASHINGTON on the approximate date on which the mail was found. The total number of mail items recovered from both locations include 379 first class letters, 353 standard letters and 2 first class parcels. WASHINGTON, instead of delivering the mail, unlawfully disposed of it by hiding it in bushes and garbage cans on his assigned routes.
Acting U.S. Attorney Simpson praised the work of the United States Postal Service, Office of Inspector General in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. is in charge of the prosecution.
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Former Monroe County District Court Judge Sentenced to Two Years in Federal PrisonRead the Press Release
HELENA-WEST HELENA—A man who has served as local judge, prosecutor, and criminal defense attorney was sentenced to 24 months in federal prison for making false statements to the FBI. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on May 19, 2025, by United States District Court Judge D. Price Marshall Jr. There is no parole in the federal system.
According to court documents and evidence presented at trial Thomas David Carruth, 64, of Clarendon, served as an elected Monroe County district court judge. In that role, Carruth presided over criminal and civil matters. In April 2022, Carruth met with the girlfriend of a defendant in a criminal case pending before him. The girlfriend sought Carruth’s assistance in getting her boyfriend’s case dismissed. During the meeting, which the girlfriend recorded, Carruth solicited sex and a lingerie show from her in exchange for assisting her boyfriend.
Carruth asked the girlfriend, “How do you feel about sex?” and “The next step back from that is, do you have any nice lingerie? …Do you mind letting me see you in it?” He also asked the girlfriend, “So, if you change your mind about giving me a lingerie show…well, you got a body that can do it and if you have an attitude where you like to wear lingerie, I’d love to look – to see it on you…If you change your mind about seeing what an old man can do, you know…”
The jury found that, when questioned by the FBI, Carruth lied to agents about the incident, including by falsely stating that he did not “request,” “ask,” “offer”, make “overture[s] about”, “insinuate,” or “even [think] about,” sex with the girlfriend.
The jury convicted Carruth of one count of making false statements. Carruth was acquitted of charges of bribery, honest services fraud, and violations of the Travel Act.
“When judges exploit their positions for personal gain, they pervert justice which erodes public trust in the judiciary,” said Ross. “The sentence underscores that no one, including a debauched judge, is above the law.”
"Officials who violate the public’s trust for their own personal gain have no place in our Arkansas communities,” said Alicia D. Corder, Special Agent in Charge, FBI Little Rock Field Office. “FBI Little Rock will continue to work with members of the ArkTrust Public Corruption Task Force to protect Arkansans from corruption and hold perpetrators accountable for their actions.”
This case was investigated by the FBI. This case was prosecuted by Senior Litigation Counsel Nicholas W. Cannon and Trial Attorney Madison H. Mumma of the U.S. Department of Justice’s Criminal Division’s Public Integrity Section. They received substantial assistance from Assistant United States Attorney Julie Peters.
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Additional information about the office of the
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Former IRS Employee Pleads Guilty to Tax Fraud and Social Security FraudRead the Press Release
BOSTON – A former Internal Revenue Service (IRS) employee pleaded guilty today in federal court in Boston to filing false tax returns in order to fraudulently obtain tax refunds and stealing Social Security benefits.
Kathleen Mannion, 58, of Lawrence, pleaded guilty to four counts of aiding and assisting in the preparation and filing of a false tax return and one count of theft of government money. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Sept. 3, 2025. Mannion was charged in March 2025.
From 1998 to 2009, Mannion worked as an IRS contact representative in Andover, Mass. Between approximately July 2020 through April 2023, Mannion prepared and filed income tax returns for other individuals with the IRS. Even though Mannion prepared these returns on behalf of other individuals, she did not list herself as the tax return preparer. Instead, Mannion prepared the returns to appear as if the taxpayers prepared the returns on their own. Further, Mannion listed ineligible dependents on the tax returns, resulting in higher refund amounts for which the taxpayers did not qualify—all without the knowledge of the taxpayers. Mannion also filed forms with the IRS directing that a portion of the fraudulently obtained tax refunds be deposited in her personal bank accounts, which she then used for her personal benefit.
Separately, between April and October 2020, Mannion applied for Social Security retirement, spouse and widow benefits with the Social Security Administration (SSA) via telephone for other individuals. Unbeknownst to these beneficiaries, Mannion directed SSA to deposit the Social Security benefits in her personal bank accounts, which she also used for her personal benefit.
The charge of aiding and assisting the preparation and filing of a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Leah B. Foley; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Amy Connelly, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement. Assistant U.S. Attorney John T. Mulcahy of the Public Corruption and Special Prosecutions Unit and Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit are prosecuting the case.
Former IRS Employee Ordered to Repay Funds from PPP Loan FraudRead the Press Release
FORT WAYNE – Rakita Davis, 45 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to federal felonies for wire fraud, announced Acting United States Attorney Tina L. Nommay.
Davis was sentenced to 24 months of probation and ordered to pay $55,213.61 in restitution to the Small Business Administration.According to documents in the case, Davis falsely claimed gross income for a business that did not exist when she applied for two Paycheck Protection Program (PPP) loans in 2021. The PPP program provided loans to small businesses for job retention and other expenses as part the CARES Act and for emergency financial assistance to Americans suffering from the economic impact of the COVID-19 pandemic. Davis, who was employed by the IRS when she applied for the loans, falsely claimed that she was the sole proprietor of a catering business when in reality, no such business existed. As a result of her fraudulent representations, Davis received PPP funds which she used for her own benefit on personal items such as jewelry, airfare, luxury car rentals, and vacations.
“This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration (TIGTA) to investigate and bring to justice those who victimize the American taxpayer,” said Kelly Moening, TIGTA Special Agent-in-Charge. “Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution. I want to thank our law enforcement partners and the U.S. Attorney's Office for their commitment to this goal.”
This case was investigated by the United States Treasury Inspector General for Tax Administration with assistance from IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Justin C. Sheridan.
Former Defense Contractor Pleads Guilty to Tax CrimesRead the Press Release
WASHINGTON – Douglas Edelman, 73, a former defense contractor, pleaded guilty today to tax crimes related to a scheme to defraud the United States and evade taxes on income he earned from his contracts with the U.S. Department of Defense.
The sentence was announced U.S. Attorney Jeanine Ferris Pirro, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and Special Agent in Charge Kareem A. Carter with IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office.
Edelman pleaded guilty to 10 felony counts: conspiracy to defraud the United States, seven counts of tax evasion, and two counts of making a false statement. U.S. District Court Judge Colleen Kollar-Kotelly scheduled a hearing on issues related to sentencing on Nov. 17, 2026. Trial on the remaining counts of the indictment will be in 2026.
According to court documents and statements made in court, Edelman founded and owned 50% of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the U.S. Department of Defense to provide jet fuel in the United States’ post-9/11 military efforts in Afghanistan and the Middle East.
Working with others, Edelman engaged in a lengthy scheme to hide his Mina/Red Star profits to evade U.S. taxes, including by concealing his income in undisclosed foreign bank accounts, creating false documents and making false statements that one of his co-conspirators — a French citizen residing abroad and without U.S. tax obligations — founded and owned Mina/Red Star.
For example, when the company became profitable in 2005, Edelman began taking distributions which he deposited into Swiss bank accounts, primarily at Credit Suisse, in the name of other companies he owned. In 2008, Credit Suisse informed Edelman that he had to either close his accounts or disclose them to U.S. authorities. Rather than come into compliance with his tax and reporting obligations, Edelman closed his accounts and opened new ones at Bank Julius Baer in Singapore in the name of a nominee entity, the beneficiaries of which were purportedly Edelman’s daughters. He then directed the subject income he earned from Mina/Red Star to those bank accounts.
In 2010 the U.S. House of Representatives Committee on Oversight and Government Reform’s Subcommittee on National Security and Foreign Affairs began investigating allegations of corruption in connection with Mina/Red Star’s contracts with the Department of Defense. As part of this inquiry, the subcommittee became interested in the identity of Mina/Red Star’s owners. At this time, Edelman had not filed U.S. tax returns to report the millions of dollars he had earned from Mina/Red Star and had not paid U.S. taxes on his income.
Rather than disclose his ownership, Edelman caused his attorneys to tell Congress a false story that a French co-conspirator who had no U.S. tax or reporting obligations founded and co-owed Mina/Red Star with another individual. To corroborate the false story, Edelman and a co-conspirator caused false and backdated paperwork to be created.
To continue the scheme, Edelman conveyed the false story about Mina/Red Star’s ownership to other arms of the U.S. government, including to the Department of Defense during contract negotiations in 2010 and 2011, to the IRS in a 2016 application to the Offshore Voluntary Disclosure Program, and to the Justice Department in a 2018 presentation.
In conjunction with his 2016 application to the IRS’s Voluntary Disclosure Program, Edelman filed false tax returns for several prior years that only reported income from gifts or purported consulting payments, continuing to conceal the millions he had earned from his company. On the returns, he also concealed profits he had earned from a separate business to provide internet service to members of the armed forces at Kandahar Air Base in Afghanistan.
Instead of paying the taxes that he knew he owed, Edelman used the money to fund his lifestyle and additional investments. He invested in a music television franchise in Eastern Europe, a land venture in Tulum, Mexico, and a farm in Kenya, and purchased property around Europe, including a home in Ibiza, Spain, and a townhouse in London.
Edelman faces a maximum penalty of five years in prison for each of the 10 counts to which he has pleaded. 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.
This case is being investigated by special agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., that is dedicated to uncovering international tax crimes, along with the Special Inspector General for Afghanistan Reconstruction. The Justice Department’s Office of International Affairs assisted in the investigation. His Majesty’s Revenue & Customs of the United Kingdom also provided assistance, as did 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; and authorities from Belize, Cyprus, Gibraltar, Israel, and Singapore.
The Government of the Kingdom of Spain arrested and extradited Edelman to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing Edelman’s arrest and extradition and assisted with securing evidence from abroad, including through mutual legal assistance requests.
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Former Defense Contractor Pleads Guilty to Tax CrimesRead the Press Release
A former defense contractor pleaded guilty today to tax crimes related to his scheme to defraud the United States and evade taxes on income that he earned from his contracts with the U.S. Department of Defense.
The following is according to court documents and statements made in court: Douglas Edelman founded and owned 50% of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the U.S. Department of Defense to provide jet fuel in the United States’ post-9/11 military efforts in Afghanistan and the Middle East.
Working with others, Edelman engaged in a lengthy scheme to hide his Mina/Red Star profits to evade U.S. taxes, including by concealing his income in undisclosed foreign bank accounts, creating false documents and making false statements that one of his co-conspirators — a French citizen residing abroad and without U.S. tax obligations — founded and owned Mina/Red Star.
For example, when the company became profitable in 2005, Edelman began taking distributions which he deposited into Swiss bank accounts, primarily at Credit Suisse, in the name of other companies he owned. In 2008, Credit Suisse informed Edelman that he had to either close his accounts or disclose them to U.S. authorities. Rather than come into compliance with his tax and reporting obligations, Edelman closed his accounts and opened new ones at Bank Julius Baer in Singapore in the name of a nominee entity, the beneficiaries of which were purportedly Edelman’s daughters. He then directed the subject income he earned from Mina/Red Star to those bank accounts.
In 2010 the U.S. House of Representatives Committee on Oversight and Government Reform’s Subcommittee on National Security and Foreign Affairs began investigating allegations of corruption in connection with Mina/Red Star’s contracts with the Department of Defense. As part of this inquiry, the subcommittee became interested in the identity of Mina/Red Star’s owners. At this time, Edelman had not filed U.S. tax returns to report the millions of dollars he had earned from Mina/Red Star and had not paid U.S. taxes on his income.
Rather than disclose his ownership, Edelman caused his attorneys to tell Congress a false story that a French co-conspirator who had no U.S. tax or reporting obligations founded and co-owed Mina/Red Star with another individual. To corroborate the false story, Edelman and a co-conspirator caused false and backdated paperwork to be created.
To continue the scheme, Edelman conveyed the false story about Mina/Red Star’s ownership to other arms of the U.S. government, including to the Department of Defense during contract negotiations in 2010 and 2011, to the IRS in a 2016 application to the Offshore Voluntary Disclosure Program, and to the Justice Department in a 2018 presentation.
In conjunction with his 2016 application to the IRS’s Voluntary Disclosure Program, Edelman filed false tax returns for several prior years that only reported income from gifts or purported consulting payments, continuing to conceal the millions he had earned from his company. On the returns, he also concealed profits he had earned from a separate business to provide internet service to members of the armed forces at Kandahar Air Base in Afghanistan.
Instead of paying the taxes that he knew he owed, Edelman used the money to fund his lifestyle and additional investments. He invested in a music television franchise in Eastern Europe, a land venture in Tulum, Mexico, and a farm in Kenya, and purchased property around Europe, including a home in Ibiza, Spain, and a townhouse in London.
Edelman faces a maximum penalty of five years in prison for each count to which he has pleaded. 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, U.S. Attorney Jeanine Ferris Pirro for the District of Columbia, and Executive Special Agent in Charge Kareem Carter of the Criminal Investigation (IRS-CI) Washington, D.C., Field Office made the announcement.
Special agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., that is dedicated to uncovering international tax crimes, along with the Special Inspector General for Afghanistan Reconstruction are investigating the case. The Justice Department’s Office of International Affairs assisted in the investigation. Also providing assistance were His Majesty’s Revenue & Customs of the United Kingdom; the Australian Federal Police; 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; and authorities from Belize, Cyprus, Gibraltar, Israel, and Singapore.
The Government of the Kingdom of Spain arrested and extradited Edelman to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing Edelman’s arrest and extradition and assisted with securing evidence from abroad, including through mutual legal assistance requests.
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.
Foreign Nationals Plead Guilty to Illegal Entry into the United StatesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on May 20, 2025, Belvie Ikiela Lecka, 32, a citizen of the Democratic Republic of Congo and Ayse Gul Sakiner, 49, a citizen of Türkiye, pleaded guilty to a criminal complaint charging them with illegally entering the United States at a time or place other than designated for entering the country by immigration authorities. A third individual, Sajah Konateh, 51, a citizen of The Gambia, also made his initial appearance in federal court yesterday, and he is facing charges of illegal entry into the United States.
According to court records, on May 19, 2025, at approximately 11:45 p.m., the United States Border Patrol received an image of three individuals, later identified as Ikiela Lecka, Sakiner, and Konateh walking south toward the bike path on North Derby Road in Derby, Vermont. This area is less than a tenth of a mile south of the United States/Canada border. Investigators believed that the three individuals had just entered the United States illegally from Canada. Border Patrol agents responded to the area, and found the three individuals, who appeared to be the same people in the image they had received, hiding in thick vegetation. The three defendants were placed under arrest. Border Patrol conducted records checks, which indicated that Ikiela Lecka, Sakiner, and Konateh had no current legal status in the United States.
Ikiela Lecka, Sakiner, and Konateh had their initial court appearances before United States District Judge Geoffrey W. Crawford on May 20, 2025, where they pleaded guilty, and both received time-served sentences. Konateh entered a not guilty plea, he faces up to 6 months’ imprisonment.
Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.
The prosecutor is Assistant United States Attorney Zachary Stendig. Ikiela Lecka is represented by Mark Oettinger, Esq., Sakiner is represented by Devin McLaughlin, Esq., and Konateh is represented by Assistant Federal Public Defender Sara Puls.
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).
Fond du Lac Man Indicted on Sex Trafficking of Children and Attempted Use of a Computer to Entice a Minor to Engage in Sexual ActivityRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on May 20, 2025, a three-count federal indictment was returned alleging that Ricardo Ortiz (age: 26) of Fond du Lac, Wisconsin, sex trafficked a minor on two separate occasions in March of 2025, in violation of Title 18, United States Code, Section 1591(a). Ortiz is further alleged to have used a computer to attempt to “persuade, induce, and entice” a minor to engage in unlawful sexual activity contrary to Title 18, United States Code, Section 2422(b). That crime is alleged to have occurred on or About April 8, 2025.
If convicted of any of the three charges alleged in the indictment Ortiz faces a mandatory 10 years’ imprisonment and up to a lifetime of incarceration. He may also be fined up to $250,000 and would be required to register as a sexual 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 Oshkosh Police Department. It will be prosecuted by 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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Five Romanians Admit Bank Fraud Involving ATM Skimming DevicesRead the Press Release
ST. LOUIS – Five Romanian nationals have admitted installing skimming devices on St. Louis area ATMs to harvest bank account information from customers and commit fraud.
Mihai Vlaicu, 48, and Mihai Florin Marinescu, 37, pleaded guilty Wednesday in U.S. District Courtin St. Louis to one count of conspiracy to commit bank fraud.
Laurentiu Miguel Ivan, 33, pleaded guilty to the same charge in March and Nelu Nae, 37, and Venera Isabelle Dumitru, 28, pleaded guilty to the charge in April. A sixth person indicted in the case, Ianus Nita, 53, has not yet been arrested.
In their plea agreements, the five admit stealing bank account information via skimming devices and then using, or attempting to use, that information to withdraw money from ATMs.
Around January of 2024, Vlaicu and Marinescu installed skimming devices on at least two bank ATMs, one in Clayton and one in Frontenac. They obtained the information of at least six victims, and then used cloned cards to try and withdraw cash.
On five days in April, Dumitru and Ivan used account information from two other victims to withdraw cash from ATMs in St. Louis. Ivan obtained $1,421 and Dumitru obtained $1,070.50.
On April 25, Dumitru and Ivan tried to withdraw cash from a St. Louis County ATM using an account number belonging to another victim. On April 30, Vlaicu tried to withdraw money from a St. Louis County ATM using the banking information of six victims.
On May 2, Marinescu unsuccessfully tried to install a skimming device on an ATM in south St. Louis County. Nae retrieved the device the next day.
On May 9, Marinescu installed a skimming device on an ATM in Wildwood. On May 11, Nita withdrew cash belonging to two victims from a St. Louis County ATM.
On May 28, Marinescu and Nae installed a skimming device on an ATM in St. Louis, which was located and removed by law enforcement before Nita and Vlaicu could retrieve it.
The conspirators were using an Airbnb in St. Louis County as a base for their criminal activity. Investigators found a laptop computer there containing hundreds of videos of customers entering their PINs when they used an ATM outfitted with a skimming device. They also found skimming devices, installation tools, a large amount of cash and numerous gift cards at the rented residence.
Ivan is scheduled to be sentenced June 25, Dumitru on July 10, Nae on July 23 and Marinescu and Vlaicu on August 20. The charge carries a penalty of up to 30 years in prison, a $1 million fine or both prison and a fine.
Ivan, Dumitru, Marinescu are not legally in the United States.
The FBI, the St. Louis Metropolitan Police Department, the Webster Groves Police Department, the Clayton Police Department and the Frontenac Police Department investigated the case with assistance from the St. Louis County Police Department. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.
FCI Danbury Prisoner Sentenced for Assaulting Another InmateRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that JONATHAN CRUZ-CARMONA, 34, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 12 months and one day of imprisonment for assaulting another inmate while imprisoned at the Federal Correctional Institution (FCI) in Danbury.
According to court documents and statements made in court, on December 18, 2023, while incarcerated at FCI Danbury, Cruz-Carmona used a weapon fashioned from a broken pencil and two razor blades to assault another inmate, causing wounds to the victim’s chin and neck. The injury was not life-threatening.
On June 3, 2024, Cruz-Carmona pleaded guilty to assault with a dangerous weapon.
At the time of the offense, Cruz-Carmona was serving a 200-month federal sentence from the Western District of New York for murder with a firearm in furtherance of a drug trafficking crime. The sentence imposed today will run consecutively to Cruz-Carmona’s previous sentence.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Anastasia E. King.
Eight Indicted in Transnational Fraud SchemeRead the Press Release
PROVIDENCE – A federal indictment returned in U.S. District Court in Providence, RI, charges eight individuals for their roles in orchestrating and executing an elaborate transnational fraud and money laundering scheme targeting elderly citizens in the United States and Canada, announced Acting United States Attorney Sara Miron Bloom.
A defendant was taken into custody this morning in New York. He is expected to appear later today in U.S. District Court for the Eastern District of New York.
Charging documents allege the following:
- To date, law enforcement has identified approximately 300 individuals in at least 37 states, including several in Rhode Island, who have been defrauded.
- At this time, victims are estimated to have suffered known losses exceeding $5 million. However, investigators have identified a bank account through which approximately $16 million in additional suspected fraud funds appear to have been laundered.
- To carry out the scheme, members of the conspiracy sent pop-up messages to seniors’ computers, often styled to appear as if they were originating from a well-known technology company. The messages contained various false claims, including that the victims’ financial accounts had been compromised, that their computers had been hacked, or that the victims had been identified as the target of a criminal investigation.
- The pop-up message contained information that directed victims to call a “live agent,” who informed the victims that their financial assets were at risk or could be garnished, but that they, the agent, could assist in protecting their assets. During a series of calls, victims were connected with other persons who falsely claimed to be “representatives” of the victim’s financial institutions and/or government agencies, including the Federal Trade Commission and Federal Reserve Bank. Those “representatives” were, in fact, members of the conspiracy.
- During these calls, some victims were instructed that, in order to protect their assets, they should initiate a transfer of their funds from their accounts via wire transfers and cryptocurrency transfers to accounts controlled by agencies the scammers purportedly represented. Other victims were told to withdraw their funds in cash and purchase gold bars and turn them over to a purported government courier who would come to their home for transfer to a secure government location. Still others were told to simply turn the cash over to a courier for safe keeping by the government.
The indictment charges
- Nanjun Song 27, of Brooklyn, NY, a Chinese national who has allegedly overstayed a B2 visa, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
- Jirui Liu, 23, of Scarborough, Ontario, Canada, a citizen of China and Canada, whose U.S. visa has expired, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant is detained in federal custody in Rhode Island.
- Xiang Li, 37, of Flushing, NY, a Chinese national and lawful permanent U.S. resident, with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendant was detained in New York and is being transferred to Rhode Island.
- Xuehai Sun, 37, of Flushing NY, a Chinese national and lawful permanent U.S. resident, with conspiracy to commit wire fraud. The defendant was arrested today in New York and is expected to appear tomorrow in U.S. District Court for the Eastern District of New York.
- Fangzheng Wang, 24, of Westborough, MA, a Chinese national, with conspiracy to commit wire fraud. The defendant is detained in federal custody in Rhode Island.
- Cynthia Jia Sun, 25, of Houston, TX, a naturalized United States citizen born in China, with conspiracy to commit wire fraud. The defendant is in federal custody in Houston and is awaiting transfer to Rhode Island.
- Zhenyang Xin, 25, of Hamilton, Ontario, Canada, a Chinese national, with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.
- Wing Kit Ho, 22, of Markham, Ontario, Canada, a Canadian citizen born in Hong Kong, with conspiracy to commit wire fraud. An arrest warrant has been issued for the defendant.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by Homeland Security Investigations (HSI) Providence and the Internal Revenue Service – Criminal Investigation, as part of the Rhode Island Homeland Security Task Force (HSTF), a multi-agency task force focused on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This HSTF investigation is led by HSI Providence, with assistance from the Narragansett Police Department, East Providence Police Department, New York Police Department, Texas Department of Public Safety, and agents from HSI New England, HSI New York, HSI Houston, and HSI Los Angeles.
Acting United States Attorney Bloom thanks the United States Attorney’s Offices in the Eastern District of New York and Southern District of Texas for their assistance following the apprehension of defendants arrested in their districts.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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indictment.pdfDover Man Pleads Guilty for Stalking Three Women for Multiple YearsRead the Press Release
CONCORD – A Dover man plead guilty yesterday in federal court for stalking three women he was in romantic relationships with by using anonymous phone numbers and email accounts to create a fictious stalker, Acting U.S. Attorney Jay McCormack announces.
Jason Subirana, age 48, pleaded guilty in federal court in Concord to three counts of Stalking. U.S. District Court Judge Steven J. McAuliffe scheduled sentencing for August 27, 2025.
According to the charging documents and statements made in court, between November 2016 - December 2021, the defendant stalked three women he was in romantic relationships with. He used more than 50 anonymous phone numbers, provided by TextNow, and anonymous email accounts to send over 650 harassing messages to the three victims from a fictious stalker. He attempted to manipulate his victims, catch them in lies, and cause emotional distress. For example, he sent one victim a text message that read:
“How can you b*tch to everyone about your birthday? You should be grateful he’s put up with all your lies and shit for so long. Stop trying to make him look like a bad guy, he’s the best thing you have and lucky he hasn’t put you to the curb like the trash bag that you are. Own your shit and stop lying to everyone. You want more? Be honest to EVERYONE around you. Stop thinking you are smarter than everyone.”
In addition to sending harassing communications to the victims, the defendant also sent himself harassing messages from the fictious stalker using anonymous accounts. For example, the defendant texted himself from an anonymous TextNow number, “Do you really think you're the only one she's banging? You really should get yourself tested. Put something in the mail for you keep an eye out for it.” On February 10, 2021, the defendant texted himself from an anonymous TextNow number, “How many times do you think she’s going to take it this afternoon before coming to give you sloppy seconds?"
The defendant also collected compromising information about the victims and then sent the compromising information to himself under the guise that he received it from “the stalker”. For example, the defendant gained access to Victim 2's email account and forwarded himself an email exchange from 2015 where Victim 2 mentioned a potential romance with an acquaintance of hers. The defendant orchestrated a series of email forwards through anonymous accounts before making its way back to Victim 2. This email controversy led to Victim 2 admitting to the defendant a prior romantic relationship with that acquaintance, with the defendant responding, “You're only telling me this now because of the email you got. What else are you hiding from me?” and "What wlse [sic] is out there? Has this all been based on lies???”
The defendant actively distanced himself from “the stalker” by accusing innocent individuals of being his victim’s “stalker.” For example, the defendant sent numerous harassing messages to a male colleague of Victim 3. Between April 22, 2018, and August 15, 2018, the defendant sent 52 harassing text messages to the victim’s colleague from at least five anonymous TextNow numbers. The defendant also sent the victim’s colleague numerous explicit photos of a woman's body that resembled Victim 3 but was not in fact Victim 3. When Victim 3 described this to the defendant in messages, he then sent himself multiple messages from “the stalker,” including two of the explicit photos that he had sent to the victim’s colleague and suggested to Victim 3 that her colleague was in fact her stalker.
The charging statute provides for a sentence of a maximum penalty of 5 years in prison. 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.
The Federal Bureau of Investigation led the investigation. Assistant U.S Attorney John Kennedy is prosecuting the case.
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Dominican Republic National Was Sentenced to 30 Months in Prison for Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Rafael Polo-Sanchez, age 43, a Dominican Republic national residing in Patterson, New Jersey, was sentenced to 30 months’ imprisonment by Chief United States District Judge Matthew W. Brann for illegal reentry.
According to Acting United States Attorney John C. Gurganus, Jose Rafael Polo-Sanchez, a citizen and national of the Dominican Republic, was removed from the United States on December 3, 2019. Following his removal, he illegally reentered the United States on an unknown date and at an unknown location. On October 31, 2024, he was found in Northumberland County, Pennsylvania, without having first obtained legal permission to reenter the United States.
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).
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Tatum Wilson is prosecuting the case.
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Defendants Charged for Their Roles in Two Schemes to Pay Kickbacks in Return for Business from Non-Profit OrganizationRead the Press Release
Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Gary DSilva, also known as Pankaj DSilva, Jonathan Velazquez, Luis A. Camarena, and Pradeep Nigam with conspiracy to commit wire fraud and bribery, as well as substantive counts of wire fraud and federal-program bribery; DSilva and Velazquez are also charged with money laundering conspiracies. The new charges arise from a scheme in which DSilva and Velazquez, employees of a Brooklyn-based non-profit organization (the Organization), received kickbacks from Nigam in exchange for steering business to a vendor owned by Nigam (Vendor 2). DSilva, Velazquez, and Camarena had been charged in a previous indictment that was unsealed on November 21, 2024, for their roles in a similar scheme in which DSilva and Velazquez received kickbacks from Camarena in return for steering business to a vendor owned by Camarena (Vendor 1). Nigam surrendered to authorities earlier today and will be arraigned this afternoon before the United States Magistrate Judge Marcia M. Henry. DSilva, Velazquez, and Camarena will be arraigned at a later date.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI); and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); announced the arrest and charges.
“As alleged, DSilva, Velazsquez, and Nigam set up a secret side deal with Nigam and awarded Nigam business contracts worth millions of dollars that provided essential information-technology services to homeless shelters in return for illegal kickbacks,” stated United States Attorney Nocella. “Today’s indictment underscores our strong commitment to prosecuting all illegal fraud and contract steering schemes.”
DOI Commissioner Jocelyn E. Strauber stated, “These defendants, employees of a City-funded nonprofit and principals of the nonprofit’s subcontractors, engaged in kickback schemes in return for millions of dollars in contracts, as charged. These funds were intended to provide technology services in homeless shelters operated by the non-profit, instead the defendants exploited these arrangements to benefit themselves. I thank the U.S. Attorney’s Office for the Eastern District of New York and the New York Office of the FBI for their continued partnership and commitment to protect public funds.”
“These four defendants allegedly crafted a kickback scheme to enrich themselves by discreetly contracting a co-conspirator’s company to install security systems in several New York City homeless shelters,” stated FBI Assistant Director in Charge Raia. “This alleged conspiracy prioritized personal interests and established an unfair financial advantage to perpetuate the cycle of unlawful payments flowing into the defendants’ bank accounts. The FBI remains committed to investigating any instance of quid pro quo, especially when it impacts critical services to our city’s vulnerable communities.”
As alleged in the superseding indictment, DSilva and Velazquez were employed in the Management Information Systems department of the Organization, which supplied numerous services to indigent New Yorkers, including administering multiple homeless shelters. As part of their work for the Organization, DSilva and Velazquez were responsible for soliciting vendors to complete various projects involving information technology.
The superseding indictment details two schemes in which DSilva and Velazquez received kickbacks for steering contracts for the Organization to specific vendors. In the first scheme, which was also detailed in the original indictment, DSilva and Velazquez received approximately $500,000 in kickbacks from Camarena in return for steering contracts worth approximately $1.6 million to Vendor 1, Camarena’s company, for installing and/or replacing security cameras at the Organization’s homeless shelters. In the second scheme, DSilva and Velazquez took payments from Nigam in exchange for the approval of payments from the Organization to Vendor 2, Nigam’s company. The payments from the Organization were for the installation and maintenance of telephone, Internet, and network services at homeless shelters operated by the Organization. DSilva, Velazquez, and Nigam had a secret deal whereby they agreed to split the profits Vendor 2 made on the payments from the Organization three ways. DSilva and Velazquez had control over how much Nigam charged the Organization. In one instance, DSilva, using a personal email account, sent to Nigam an invoice for Vendor 2 to submit to the Organization—DSilva’s employer. As part of the conspiracy, Nigam regularly sent money to companies in the names of relatives of DSilva and Velazquez. In total, the Organization paid almost $2 million to Vendor 2 during the operation of the scheme, and Nigam paid kickbacks exceeding $700,000 to DSilva and Velazquez.
The charges in the superseding indictment are merely allegations and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Laura Zuckerwise and Turner Buford are in charge of the prosecution, with the assistance of paralegal specialist Kavya Kannan.
The Defendants:
GARY DSILVA (also known as “Pankaj DSilva”)
Age: 46
Manalapan, NJJONATHAN VELAZQUEZ
Age: 54
Massapequa Park, NYLUIS A. CAMARENA
Age: 57
Bronx, NYPRADEEP NIGAM
Age: 63
Edison, NJE.D.N.Y. Docket No. 24-CR-471 (S-1) (HG)
Davenport Man Sentenced to 20 Years in Federal Prison for Meth Conspiracy ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man was sentenced yesterday to 20 years in federal prison for conspiracy to distribute methamphetamine.
According to public court documents, Jason Douglas Ringold, 26, while on parole through the State of Iowa, was responsible for the distribution of more than ten pounds of methamphetamine and illegally possessing and selling firearms. Ringold conspired to distribute methamphetamine in the Quad Cities with co-conspirators, Rosston Tate, 40, and Kyle Ogden Antle, 23, both Quad Cities residents.
After completing his term of imprisonment, Ringold will be required to serve a five-year term of supervised release. There is no parole in the federal system.
In December 2024, Tate received a 20-year sentence, followed by a five-year term of supervised release. In March 2025, Antle also received a 20-year prison sentence and a five-year term of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, Iowa Department of Public Safety—Division of Narcotics Enforcement, Rock Island Police Department, Scott County Sheriff’s Office, and Bettendorf Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Covington Man Guilty of Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAYLON CARTER (“CARTER”), age 24, a resident of Covington, Louisiana, pled guilty on May 15, 2025 to an indictment charging him with three counts of distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), announced Acting U.S. Attorney Michael M. Simpson.
According to court documents, in January 2024, the St. Tammany Parish Sheriff’s Office (“TPSO”) received information that CARTER sold “M30 blue pills” from both an apartment complex in Covington, La. or from his vehicle. After TPSO detectives confirmed that CARTER lived in the apartment complex, TPSO organized and conducted three controlled purchases of fentanyl pills from CARTER at the apartment complex.
CARTER faces a minimum term of imprisonment of five years, up to a maximum term of imprisonment of forty years, a fine of up to $5,000,000.00, a term of supervised release of at least four years, and a mandatory special assessment fee of $300.00.
This case was investigated by the Department of Homeland Security Investigations and the St. Tammany Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit.
Convicted Felon Sentenced to Prison for Carjacking on College Campus Using A “Ghost Gun”Read the Press Release
CHARLOTTE, N.C. – A man who used a privately made and unregistered firearm, commonly known as a “ghost gun,” to carjack a vehicle on a college campus was sentenced yesterday to seven years in prison for a firearms offense, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Mark Jordan Williams, 37, was also ordered to serve three years of supervised release following the completion of his prison term.
Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Ferguson in making today’s announcement.
According to court documents and court proceedings, on March 23, 2023, an individual identified as L.C. was sitting in a Jeep Wrangler, parked on the campus of the University of North Carolina-Charlotte. Court records show that Williams approached the vehicle, pointed a handgun at L.C. and ordered L.C. out of the car. Williams then took L.C.’s phone, got into the Jeep, and drove away. Williams was located and arrested later that evening while inside the Jeep. When Williams was arrested, a .40 caliber Polymer 80 handgun was recovered from inside the vehicle as well. During the investigation, law enforcement determined that Williams has multiple prior criminal convictions and he prohibited from possessing a firearm.
On January 9, 2025, Williams pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The ATF investigated the case and the U.S. Attorney’s Office in Charlotte handled the prosecution.
Columbia Man Indicted for Illegal Firearm and AmmunitionRead the Press Release
KANSAS CITY, Mo. – A Columbia, Mo., man was indicted by a federal grand jury today for illegally possessing a privately made firearm and 9mm ammunition.
Victor S. Kee, 26, was charged in a one-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Kee was in possession of a privately made firearm, identified as a Polymer80, Model PF940SC, 9mm pistol, with no serial number, and 9mm ammunition. Kee is charged with one count of being a felon in possession of a firearm and ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kee has prior felony convictions for tampering with a motor vehicle, resisting arrest, burglary, assault, and being a felon in possession of a firearm.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Missouri State Highway Patrol, and the Lafayette County, Missouri Sheriff’s Office.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
City of Miami Police Officer Pleads Guilty to COVID-19 Relief FraudRead the Press Release
MIAMI – Yesterday, Tramaine Liptrot, 43, a police officer with the City of Miami Police Department (MPD) who has been relieved of duty, pleaded guilty to wire fraud in connection with fraudulent applications for two Paycheck Protection Program (PPP) loans totaling over $200,000. Liptrot entered his guilty plea in Miami before U.S. District Judge Beth Bloom.
According to the facts admitted at the change of plea hearing, Liptrot, along with being an MPD Police Officer, was the owner and President of Liptrots Tax Services L.L.C (Liptrots Tax). With the assistance of an associate, Liptrot fraudulently obtained two PPP loans in the name of Liptrots Tax.
On June 22, 2020, working with the associate, Liptrot caused the submission of a false and fraudulent PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $36,700 for four employees, and a fraudulent IRS Form 944 in support thereof, falsely claiming that Liptrots Tax paid its employees $440,397 during 2019. As a result of this fraudulent PPP application, Liptrots Tax obtained approximately $91,750 in PPP loan proceeds from an SBA approved PPP lender.
On March 3, 2021, again working with the associate, Liptrot caused the submission of a false and fraudulent second-draw PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $43,369, and including as part of the application process, a fraudulent IRS Form 944, falsely claiming that Liptrots Tax paid $496,428 in wages and other compensation in 2020. As a result of this fraudulent second-draw PPP application, Liptrots Tax obtained approximately $108,422 in PPP loan proceeds from a different SBA approved PPP lender.
Liptrot is scheduled for sentencing on August 6, 2025, at 10:30 a.m., where he faces a possible maximum sentence of up to 20 years in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region, announced the guilty plea.
FBI Miami’s Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case and Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20155.
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Chief Executive Officer of Digital Asset Company Found Guilty in Multi-Million Dollar Crypto-Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a federal jury convicted Braden John Karony on all counts of a three-count indictment charging him with conspiracy to commit securities fraud, wire fraud, and money laundering. The charges arose from the defendant’s and his co-conspirators’ roles in defrauding investors in a decentralized finance digital asset called “SafeMoon,” issued by their company SafeMoon LLC. As alleged, the defendant agreed with his co-conspirators to lie to SafeMoon investors about whether SafeMoon executives could access the liquidity pool and whether they were using the assets from the liquidity pool for their personal benefit. As SafeMoon’s market capitalization grew to more than $8 billion, the defendant fraudulently diverted and misappropriated millions of dollars’ worth of liquidity from the SafeMoon liquidity pool for their personal benefit. The verdict followed a 12-day trial before United States District Judge Eric R. Komitee. When sentenced, Karony faces up to 45 years in prison. The jury also issued a verdict to forfeit one residential property and the proceeds from the sale of another residential property, amounting to approximately $2 million.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); and Darren B. McCormack, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) announced the verdict.
“As proven at trial, the SafeMoon digital asset was anything but safe and turned out to be pie in the sky for investors who were deliberately misled by Karony, a man who sought to get rich quick by stealing and diverting millions of dollars,” stated United States Attorney Nocella. “Karony used his scheme to purchase multiple homes, sports cars, custom trucks, and other luxury goods. Today’s guilty verdict should serve as a warning to all would-be fraudsters that my Office will vigorously prosecute individuals like the defendant who victimize digital asset investors and undermine investor confidence in digital assets markets, thereby threatening the stability and growth of these emerging technologies.”
Mr. Nocella expressed his appreciation to the U.S. Securities and Exchange Commission for its work on the case.
“Braden Karony, the CEO of SafeMoon, exploited his company’s digital portfolio with fictional success stories and stole millions of dollars in crypto-assets to finance luxury purchases,” stated FBI Assistant Director in Charge Raia. “Along with his co-conspirators, Karony violated his clients’ trust and wallets while attempting to conceal his misconduct through discreet transactions. May today’s conviction emphasize the FBI’s commitment to securing all markets and protecting the American people from individuals who abuse their position to satisfy personal greed.”
“Braden Karony misled investors; intentionally diverted and misappropriated millions in cryptocurrency for his personal benefit; and lined the driveways of his million dollar homes with luxury cars. While the name of his company is SafeMoon, there was nothing safe about this investment that was just a front for theft. By following the money with complex cryptocurrency tracing, IRS-CI New York’s Cyber and J5 groups worked with our investigative partners to see that this conman is held accountable for his greedy acts,” stated IRS-CI New York Special Agent in Charge Chavis. “The Joint Chiefs of Global Tax Enforcement (J5) is a global partnership that works together to gather information, share intelligence, and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canada Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty’s Revenue and Customs from the U.K. and IRS-CI from the U.S.”
“Steered by his selfish desires and insatiable greed, Braden John Karony treated millions of dollars in investors’ funds as his own personal bank account,” stated HSI New York Acting Special Agent in Charge McCormack. “The defendant will soon be trading his sprawling real estate and luxury vehicles for a jail cell within the four walls of a federal penitentiary. As reflected by today’s conviction, whether it involves fiat or crypto, HSI New York’s El Dorado Task Force will relentlessly pursue individuals intent on exploiting investors and the American financial system for their own gain.”
Background on SafeMoon
As proven at trial, SafeMoon tokens were digital assets first issued in March 2021 by SafeMoon LLC on a public blockchain. Through the operation of SafeMoon’s smart contract, every transaction in SafeMoon was automatically subject to a 10% tax, meaning, for example, that if a holder of SafeMoon transferred 10 SafeMoon to another user, 1 SafeMoon would automatically be retained from the transfer as a tax and the remaining 9 SafeMoon would be received by the other party. As marketed to SafeMoon investors, the proceeds of SafeMoon’s 10% tax were split into two 5% tranches, the proceeds of which were supposed to benefit holders of SafeMoon in specific ways. The first 5% tranche of the tax proceeds would be “reflected” back to, and distributed among, all SafeMoon holders in proportion to their current SafeMoon holdings and thereby increase the total quantity of SafeMoon held by every SafeMoon investor automatically. The remaining 5% tranche of SafeMoon tax proceeds would be deposited into designated SafeMoon liquidity pools. The larger the SafeMoon liquidity pool, the greater the liquidity in the market for SafeMoon. In the months after its launch in March 2021, SafeMoon grew to have millions of holders and a market capitalization of more than $8 billion.
The Defendants’ Fraudulent SchemeKarony and his co-conspirators misrepresented various material aspects of the SafeMoon offering to investors. Such misrepresentations included that SafeMoon relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SafeMoon transaction; that the “locked” SafeMoon liquidity pool prevented the defendants and other insiders at SafeMoon from being able to “rug pull”—a type of crypto fraud— SafeMoon investors by removing liquidity from the SafeMoon liquidity pool; that tokens in the liquidity pool would only be used for limited pre-defined business purposes, not personal enrichment; that the defendants would manually add token pairs to the SafeMoon liquidity pool when transactions of SafeMoon occurred on specific centralized exchanges; and that the developers were not and had not been holding and trading SafeMoon for their benefit.
In reality, Karony and his co-conspirators retained access to the SafeMoon liquidity pools and used that access to intentionally divert and misappropriate millions of dollars’ worth of tokens for their personal benefit. In addition, although they publicly denied that they personally held or traded SafeMoon, they repeatedly bought and sold SafeMoon, sometimes at the height of SafeMoon market price, which generated millions of dollars in profits. Karony and his co-conspirators masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts. Karony acquired over $9 million in crypto assets from the scheme and used some of the proceeds to purchase luxury vehicles and real estate, including a $2.2 million home in Utah, additional homes in Utah and Kansas, a $277,000 Audi R8 sports car, another Audi R8, a Tesla, and custom Ford F-550 and Jeep Gladiator pickup trucks.
Co-conspirator Thomas Smith previously pleaded guilty and is awaiting sentencing. Co-conspirator Kyle Nagy remains at large.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Dana Rehnquist, Sara K. Winik, and Jessica K. Weigel are in charge of the prosecution, with assistance from Paralegal Specialists Asher Martin-Rosenthal and Madison Bates. Assistant United States Attorney Laura Mantell is handling forfeiture matters.
The Defendant:
BRADEN JOHN KARONY
29
Provo, UtahE.D.N.Y. Docket No. 23-CR-433 (EK)
Charlotte Man Sentenced for Illegal Firearm Possession After Assaulting Two U.S. Postal Service Mail Carriers on the Same DayRead the Press Release
CHARLOTTE, N.C. – Dujuan Marquise McNeil, 39, of Charlotte, was sentenced yesterday to 10 years in prison followed by three years of supervised release for illegal possession of a firearm after he assaulted two U.S. Postal Service mail carriers on the same day, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.
Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, joins U.S. Attorney Ferguson in making today’s announcement.
“My office will continue to aggressively prosecute those that threaten or harm our postal workers,” said U.S. Attorney Ferguson. “Postal workers are hard-working Americans that are vital to our way of life and essential to our system of commerce.”
“A core mission of the U.S. Postal Inspection Service is to provide a safe environment for Postal employees and the American public. Illegal weapons threaten the safety of all our communities,” said Inspector in Charge Hopkins. “We extend our utmost appreciation to our law enforcement partners and the U.S. Attorney’s Office in the Western District of North Carolina for supporting our mission and bringing this investigation to a successful conclusion.”
According to court records, on June 1, 2023, McNeil, used firearms to threaten two U.S. Postal Service mail carriers. In both instances, McNeil used his vehicle to block a mail truck, before threatening the carrier inside with his guns. McNeil believed someone with the post office stole an unidentified item from his package. McNeil also went to a local post-office complain about the alleged theft. Clerks at that office reported that McNeil stated he would kill whichever carrier was responsible for the alleged theft.
During the investigation, law enforcement determined the McNeil had multiple prior criminal convictions, including Possession of a Firearm by a Felon, Discharge of a Weapon into Occupied Property, and Domestic Violence Protective Order Violation, and was prohibited from possessing firearms.
On June 14, 2023, a federal search warrant was executed at McNeil’s residence, where law enforcement found and seized multiple firearms, including: three 9mm semi-automatic pistols (one fitted with an extended magazine); a Polymer 80 9mm semi-automatic pistol (commonly referred to as a “ghost gun”) with an extended magazine; an AR15 semi-automatic rifle; multiple magazines; and nearly 300 rounds of ammunition.
On October 30, 2024, McNeil pleaded guilty to possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons.
In making today’s announcement U.S. Attorney Ferguson commended USPIS for their work in this investigation and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charlotte Mecklenburg Police Department for their assistance.
The U.S. Attorney’s Office in Charlotte prosecuted the case.
California Man Sentenced to Prison for FraudRead the Press Release
PHOENIX, Ariz. – Ronnie Lamar Strawberry, Jr., 39, of Los Angeles, California was sentenced on May 19, 2025, by Senior United States District Judge G. Murray Snow to 33 months in prison and ordered to pay $528,426 in restitution. Strawberry pleaded guilty to Conspiracy to Commit Wire Fraud. His sister, Raychelle Strawberry, who pleaded guilty to the same charge, was sentenced on the same day to 60 months of probation for her role in the offense.
According to the court documents and statements made in court, Ronnie Strawberry conspired with his sister and others to file false and fraudulent unemployment insurance claims under the Pandemic Unemployment Assistance program. Strawberry filed fraudulent claims in both California and Arizona using stolen identities. The scheme was sophisticated and used personal identifiable information — such as name, date of birth, and social security number — from more than 25 individuals to file online unemployment applications in Arizona and California.
“The defendant exploited a national crisis for personal gain,” said U.S. Attorney Timothy Courchaine. “He stole nearly $500,000 in pandemic relief funds that were meant to support struggling families and small businesses. This office will continue to investigate and prosecute those who stole from state and federal governments during the pandemic and intentionally depleted the public fisc for personal profit.”
“An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud involving unemployment insurance (UI) programs. We will continue to work with our law enforcement partners to protect the integrity of the nation’s Unemployment Insurance system,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General.
U.S. Department of Labor, Office of Inspector General (OIG), Arizona Department of Economic Security (DES) OIG, and Homeland Security, OIG conducted the investigation in this case. Assistant U.S. Attorney, Kevin M. Rapp, District of Arizona handled the prosecution.
CASE NUMBER: CR-24-00390- PHX-GMS
RELEASE NUMBER: 2025-080_Strawberry# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.California Man Sentenced to 78 Months in Prison for Distribution of Child Pornography and Making A Hoax Bomb Threat in Connection with Retaliation Against A MinorRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nathaniel Sean DeLeon, age 20, of Tulare, California, was sentenced on May 20, 2025, to 78 months’ imprisonment by United States District Judge Karoline Mehalchick for distribution of child pornography and making a bomb threat hoax in connection with a campaign of retaliation against a Cumberland County minor in 2023.
According to Acting United States Attorney John C. Gurganus, DeLeon met the then-16-year-old minor victim on the Roblox gaming platform and began an online relationship. The relationship ended. Thereafter, between June 2023 and November 2023, DeLeon caused law enforcement in Cumberland County, Pennsylvania, to respond to 23 related “swatting” incidents at addresses in Cumberland County, the majority of which belonged to the minor victim. The calls generally related information that someone had a gun and had killed, or was about to kill, another person.
On November 30, 2023, DeLeon, identifying himself as the minor victim, informed a suicide prevention worker via an internet messaging application that the minor victim had placed pipe bombs in the classrooms and bathrooms of Big Spring High School, located in Cumberland County, and was in a car outside of the school with a shotgun. As a result, approximately 650 students and staff from Big Spring High School were evacuated. No bombs went off and it was determined that there were no explosive devices inside the school.
DeLeon also distributed a sexually explicit video of a minor victim on two occasions in November 2023.
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.
The case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney David C. Williams prosecuted the case.
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Browning man pleads guilty to drug possession on the Blackfeet Indian ReservationRead the Press Release
GREAT FALLS – A Browning man accused of possessing methamphetamine on the Blackfeet Indian Reservation admitted to charges yesterday, U.S. Attorney Kurt Alme said.
The defendant, Clay Darwin Flamand, 54, pleaded guilty to possession with intent to distribute methamphetamine. Flamand faces a mandatory minimum term of 10 years to life imprisonment, a $10,000,000 fine, and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is set for October 1, 2025. Flamand was released pending further proceedings.
The government alleged in court documents that law enforcement learned Flamand was rumored to be providing a large quantity of methamphetamine to the Blackfeet Reservation in June and July 2024. On June 20, 2024, law enforcement arranged a controlled purchase of meth from Flamand.
On June 26, 2024, another controlled purchase was attempted. The sale did not occur, but law enforcement learned Flamand’s source of supply had just left for California to pick up methamphetamine
On July 11, 2024, law enforcement officers with the Bureau of Indian Affairs conducted a traffic stop. The driver told law enforcement his friend received methamphetamine from Flamand in the last couple of days and was planning to get more that evening. The friend of the driver reported Flamand had 10 pounds of methamphetamine at his residence. Also on July 11, 2024, a different witness contacted law enforcement and said Flamand’s source of supply had just returned to the Blackfeet reservation from California, was at Flamand’s residence, and had brought 10 pounds of methamphetamine.
Law enforcement obtained a tribal search warrant for Flamand’s residence. When they executed the warrant, Flamand was at the residence. Law enforcement seized over 400 grams of methamphetamine, $6,590 in U.S. currency, firearms, and drug paraphernalia.
Assistant U.S. Attorney Lori Suek prosecuted the case. The BIA, DEA and Blackfeet Law Enforcement Services conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
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Brooklyn Man Sentenced to 60 Months in Prison for $1.75 Million Covid-19 Unemployment FraudRead the Press Release
Earlier today, in federal court in Brooklyn, Bryan Abraham was sentenced by United States District Judge William F. Kuntz, II to 60 months in prison for aggravated identity theft and conspiring to commit access device fraud. Judge Kuntz also ordered Abraham to forfeit $579,862 and to pay restitution in that same amount. Abraham pleaded guilty in January 2023.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Edward Gallashaw, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), announced the sentence.
“Today’s sentence is a reminder that there is no free pass for fraudsters like the defendant who shamefully stole public funds intended to alleviate the suffering of New Yorkers during the height of the COVID-19 pandemic,” stated United States Attorney Nocella. “My Office will continue to work with our law enforcement partners to unravel these criminal schemes and hold the perpetrators accountable for their greed.”
Mr. Nocella expressed his appreciation to the New York City Police Department and the U.S. Department of Labor, Office of the Inspector General, for their assistance on the case.
“Postal Inspectors have worked aggressively to investigate all types of pandemic related frauds occurring via the U.S. Mail,” said Ed Gallashaw, Acting Inspector in Charge, U.S. Postal Inspection Service, New York Division. “These individuals unfortunately thought they could exploit government unemployment benefits and get away with it and will now rightly serve the consequence for their actions."
As set forth in court filings, between June 2020 and April 2021, Abraham and his co-conspirators capitalized on the relaxed requirements for claiming unemployment benefits during the COVID-19 pandemic to defraud the New York State Department of Labor (NYSDOL) out of more than $1.75 million in unemployment benefits in the names of approximately 250 victims. Abraham was personally responsible for fraudulent claims in the names of at least 78 victims, for which benefits in excess of $579,862 were paid.
To execute the scheme, Abraham and his co-conspirators purchased personal identifying information (PII) of victims through end-to-end encrypted applications like Telegram, and then used the victims’ PII to make fraudulent claims for unemployment benefits. Funds from the fraudulent claims were deposited into bank accounts they controlled or were provided via reloadable KeyBank debit cards, which they had mailed to addresses they could access. The defendant and his co-conspirators regularly traveled to ATMs together to withdraw thousands of dollars from the KeyBank cards. They flaunted their ill-gotten gains on social media—posing with stacks of cash, designer clothing, jewelry, and luxury cars. They communicated on Telegram concerning the logistics of the scheme, including where to purchase victim PII, the logistics of withdrawing fraudulent funds, and the luxury items and trips they were purchasing with their fraudulently obtained wealth.
Abraham was charged in the case alongside co-defendants Armani Miller, Seth Golding, Gianni Stewart, Andrew Ruddock, Angel Cabrera and Carlos Vazquez. Miller and Golding were both sentenced to 57 months’ imprisonment for conspiring to commit access device fraud, and Stewart was sentenced to 24 months’ imprisonment for conspiring to commit access device fraud. Ruddock was sentenced to probation for operating an unlicensed money transmitting business, and specifically for selling cryptocurrency to his co-conspirators. Cabrera pleaded guilty to conspiring to commit access device fraud and awaits sentencing. Vazquez pleaded guilty to aggravated identity theft and conspiring to commit access device fraud and also awaits sentencing.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Tara B. McGrath is in charge of the prosecution with assistance from Assistant United States Attorney Brendan G. King of the Office’s Asset Recovery Section.
The Defendant:
BRYAN ABRAHAM
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 21-CR-411 (WFK)
Baltimore Man Pleads Guilty to Drug Trafficking Conspiracy Involving Sale of Loaded AR-Style PistolRead the Press Release
Baltimore, Maryland – Derrick Nutter, 40, of Baltimore, Maryland, pled guilty to conspiracy to commit drug trafficking in federal court.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the plea with Special Agent in Charge Toni M. Crosby, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to the guilty plea, Nutter unknowingly met with undercover agents on multiple occasions to sell methamphetamine, fentanyl, cocaine, and a loaded AR-style pistol.
On June 12, 2024, Nutter sold an undercover agent approximately 109 grams of cocaine for $3,600, approximately seven grams of methamphetamine for $100, and a free sample of fentanyl. Then on June 20, 2024, Nutter sold the undercover agent approximately 85 grams of suspected fentanyl for $3,300, and approximately 79 grams of cocaine for $2,700.
Additionally, on the same date, Nutter sold the undercover agent a 5.56 caliber AR-style privately made pistol with no serial number. It was equipped with an Axeon optic and loaded with 12 rounds of ammunition. The substance Nutter described as fentanyl was actually Schedule I ortho-Methylfentanyl – a fentanyl analogue.
Nutter sold cocaine and MDMA to a second undercover on June 25, 2024, and August 22, 2024. He also explained that his “girl” was receiving a package of drugs in the mail. Investigators identified Nutter’s “girl” as co-conspirator Khristina Williams.
On September 3, 2024, Nutter was at Williams’ residence and then he drove to a planned meeting location to sell the second undercover agent drugs. Nutter met the undercover agent and sold approximately 223 grams of methamphetamine in exchange for $4,000. He returned to his vehicle where authorities observed Williams seated in the front passenger seat.
Then on September 10, 2024, Nutter met with two undercover agents and sold them approximately 525 grams of methamphetamine in exchange for $6,100. He also provided a free sample of fentanyl. Nutter agreed to sell the undercover agents additional fentanyl if they came to his home.
While in route to his home, Nutter called Williams multiple times. After arriving at his residence, Nutter sold the undercover agents several hundred fentanyl pills. Eventually, Nutter and the undercover agents walked outside and met with Williams, who had arrived in her vehicle. Nutter retrieved several hundred additional fentanyl pills from Williams and handed them to the undercovers. The undercover agents paid Nutter $3,900 in exchange for the drugs, including nearly 800 fentanyl pills.
On October 3, 2024, the two undercover agents met Nutter in a public parking lot. After Nutter sold them approximately 830 grams of methamphetamine, authorities arrested him. During the undercover operation, Nutter sold agents approximately 1,595 grams of methamphetamine, 298 grams of cocaine, 90 grams of fentanyl, 85 grams of fentanyl analogue, and the loaded AR-style pistol.
Nutter faces a maximum sentence of 20 years in prison. Sentencing is scheduled for Wednesday, September 17, at 11 a.m.
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.
U.S. Attorney Hayes commended the ATF for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney James O’Donohue who is prosecuting the 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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Austin Felon Sentenced to 12 Years in Federal Prison for Firearm PossessionRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in a federal court in Austin to 144 months in federal prison for one count of felon in possession.
According to court documents, Steven Moreno Briseno, 38, was arrested by Austin Police when he surrendered during a barricaded standoff at his family’s residence on Nov. 30, 2023. Briseno had allegedly been under the influence of methamphetamine and got into an altercation with his wife, physically assaulting her and then fleeing on foot when officers arrived in response to a 911 call.
Briseno ran into a vacant apartment across the street then sprinted back to his residence, where he barricaded himself inside. Briseno’s aggressive behavior escalated as he refused the officers’ commands to exit the residence, made comments about arming himself, and threatened to start shooting if the officers did not back away from his residence. Officers observed Briseno fashioning a tripod through a window and mounting a long rifle on top. He was also seen smoking from a glass pipe that resembled a meth pipe while he loaded numerous rounds into rifles, handguns, and at least one shotgun. Additionally, officers watched Briseno exit the residence with a gun in his hand while wearing a camouflaged tactical vest.
When APD SWAT arrived on the scene, Briseno was instructed to exit the residence with his hands up and empty. Subsequently, he fired at least one round from one of his firearms from inside the residence to an unspecified location outside the residence. After several minutes of speaking via loudspeaker, Briseno surrendered to APD. Inside the residence, officers located numerous firearms, loaded magazines, and boxes of ammunition in plain view, including on top of the kitchen table and staged near the front door and multiple windows in the front of the house.
Briseno had previously been convicted of multiple felonies, including burglary on Nov. 30, 2022. He pleaded guilty to one count of felon in possession of a firearm on Jan. 15, 2025.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Austin Police Department investigated the case.
Assistant U.S. Attorney Grant Sparks prosecuted the case.
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Anchorage attorney arrested, charged with drug trafficking, firearm offensesRead the Press Release
ANCHORAGE, Alaska – A suspended member of the Alaska Bar was arrested today after a federal grand jury in Alaska returned an indictment charging him with maintaining a drug-involved premise for the purpose of distributing and using controlled substances, and with possessing firearms as a prohibited person and in furtherance of drug trafficking.
According to court documents, in June 2023, law enforcement became aware of Justin Facey, 44, and his alleged facilitation of a drug trafficking organization run by a California prisoner, Heraclio Sanchez-Rodriguez.
Sanchez-Rodriguez was indicted on federal drug trafficking and murder charges in October 2023, and to date, over 60 other defendants have been charged in connection with the Sanchez-Rodriquez drug trafficking organization.
Facey allegedly continued his own drug trafficking operations after the indictment of Sanchez-Rodriguez and other co-conspirators. The indictment against Facey alleges that between April 2024 and 2025, he utilized his residence in Anchorage to distribute and use controlled substances, namely fentanyl and methamphetamine. It also alleges that on April 30, 2025, Facey possessed four firearms in furtherance of drug trafficking crimes.
The indictment further alleges that Facey unlawfully possessed firearms knowing that he was addicted to methamphetamine, a Schedule II controlled substance.
Court documents explain that Facey was suspended from practicing law on Feb. 24, 2025, following numerous bar complaints.
Facey is charged with one count of maintaining a drug-involved premises, one count of possession of firearms in furtherance of a drug trafficking crime and one count of possession of firearms by a prohibited person. The defendant is scheduled to make his initial court appearance on May 22, 2025, before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces between five years to life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney William Narus of the District of Oregon, Special Agent in Charge David Reames of the Drug Enforcement Administration (DEA) Seattle Field Division and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.
The U.S. Attorney’s Office for the District of Alaska has been recused from this case with the exception of certain personnel. Assistant U.S. Attorney Steven D. Clymer from the U.S. Attorney’s Office for the Northern District of New York has been appointed as Special Attorney to the United States Attorney General to assist with this and other recused cases. He reports to and acts under the direction of the Deputy Attorney General, or his delegee, or Acting U.S. Attorney Narus in these cases. Special Attorney Clymer supervises personnel from the District of Alaska who have been exempted from the recusal.
The DEA Anchorage District Office and FBI Anchorage Field Office, with assistance from the Anchorage Police Department, are investigating the case. If anyone has information concerning Facey’s alleged actions, please contact the FBI Anchorage Field Office at (907) 276-4441 or anonymously at tips.fbi.gov
Assistant U.S. Attorneys Adam Alexander and Jennifer Ivers are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Americus Man Sentenced to Prison for Illegally Possessing FirearmsRead the Press Release
ALBANY, Ga. – An Americus, Georgia, resident who was under investigation for distributing fentanyl in the community was sentenced to federal prison for illegally possessing several firearms in furtherance of a drug trafficking crime as he attempted to evade arrest.
Juan Antonious Boone, 36, of Americus, Georgia, was sentenced to serve 181 months in prison to be followed by three years of supervised release by Chief U.S. District Judge Leslie Abrams Gardner on May 21. Boone previously pleaded guilty to one count of possession of a firearm by a convicted felon and one count of possession of a firearm in furtherance of a drug trafficking crime on Oct. 9, 2024. There is no parole in the federal system.
“Armed repeat felons distributing fentanyl and other dangerous illegal substances will find their cases in federal court,” stated Acting U.S. Attorney C. Shanelle Booker. “We are grateful that no one was injured when the defendant recklessly sped away in his car while attempting to evade arrest. I want to thank the teams from the Americus Police Department, GBI and ATF for helping us hold the defendant accountable for his crimes and their tireless efforts to make our communities safer.”
“Let me be clear—if you’re a convicted felon pushing fentanyl and carrying illegal firearms, the ATF will find you, and you will face the full force of federal prosecution,” said ATF Assistant Special Agent in Charge Beau Kolodka of the Atlanta Field Division.
“Fentanyl distribution and armed criminal activity pose a grave threat to public safety,” said GBI Director Chris Hosey. “This sentencing sends a clear message: individuals who choose to traffic deadly drugs and illegally possess firearms will be met with the full force of the law. We remain steadfast in our mission to protect Georgia communities through strong partnerships and relentless investigative work.”
“The Americus Police Department appreciates the teamwork between local, state and federal law enforcement partners that helps to get dangerous criminals like this off our streets. We are all in the fight together against violent offenders who are flooding our streets with fentanyl and other dangerous narcotics,” said Americus Police Chief Mark Scott.
According to court documents and statements made in court, the Georgia Bureau of Investigation (GBI) utilized a confidential informant (CI) between June 13, 2023, and Aug. 7, 2023, to purchase small quantities of narcotics, including fentanyl, from Boone in the Americus area. On Jan. 8, 2024, GBI conducted surveillance of Boone at the Days Inn in Americus as he departed the hotel. Boone, who was wanted on an active probation warrant, was pulled over by Americus Police Department (APD) officers. Rather than exiting the vehicle as instructed, Boone placed the vehicle in drive and drove away at a high speed, almost striking an APD officer. APD officers pursued Boone to a nearby apartment complex; when he got to a dead-end, he got out of the car and ran away. Boone had a firearm in his hand and one in his waistband; he was safely apprehended. Boone, who has several felony convictions, was illegally possessing two stolen 9mm pistols. Inside his car, police found approximately 24 grams of fentanyl, 79.743 grams of methamphetamine, 251 grams of cocaine, a large quantity of marijuana and a 9mm semiautomatic pistol. Boone has several prior felonies, including two convictions for possession of a firearm by a convicted felon and a conviction for possession of a firearm during the commission of a felony.
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).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Georgia Bureau of Investigation (GBI) and the Americus Police Department (APD).
Assistant U.S. Attorney Matthew Redavid prosecuted the case for the Government.
Alleged international drug trafficker indicted; Prolific Uruguayan money launderer pleads guiltyRead the Press Release
ALEXANDRIA, Va. – A Uruguayan national pled guilty to a money laundering conspiracy that involved millions of dollars in drug-trafficking proceeds.
According to court documents, Federico Ezequiel Santoro Vassallo, aka Capitan, 44, was a Paraguay-based transnational money launderer. Santoro was a close associate of Uruguayan national Sebastian Enrique Marset Cabrera, 29, who, as alleged in an indictment unsealed this week, is a transnational drug-trafficker responsible for moving ton quantities of cocaine worth millions of dollars from South America to Europe. Santoro served as a transnational money launderer for drug-trafficking organizations and facilitated the movement of millions of dollars of drug proceeds from various countries in Europe to South America and elsewhere.
Marset allegedly is the leader of a large-scale drug trafficking organization that distributed thousands of kilograms of cocaine, including as many as ten tons at a time, from South America typically to Europe. The Marset drug trafficking organization allegedly traffics cocaine in Bolivia, Paraguay, Uruguay, Brazil, Belgium, the Netherlands, Portugal, and elsewhere.
Santoro and his co-conspirators arranged for the collection of narcotics proceeds and utilized couriers and tokens to covertly deliver bulk illicit currency, typically in euros. Santoro’s co-conspirators specialized in placing the illicit currency into the global banking system. He then would direct the movement of the funds internationally, usually via bank wire transfer. Santoro typically directed that the funds be delivered in U.S. dollars and a correspondent bank in the United States would facilitate the transaction.
Santoro used at least seven businesses to facilitate the transmission of money and hid the location and ownership of the assets being laundered by using unrelated companies, all registered as purportedly doing business in different, unrelated industries. Santoro used businesses registered in South America and Asia to receive the laundered drug proceeds and concealed the source of the funds by creating false invoices to justify the wire transfers.
Santoro and, allegedly, Marset threatened violence to protect their drug-trafficking and money laundering activities. Santoro laundered millions of dollars of drug proceeds and in a span of less than five months directed the movement of at least $8 million in drug-trafficking funds through U.S. banks. As payment, Santoro took a percentage of the illicit bulk cash proceeds that he laundered.
In January 2021, Marset allegedly was owed more than €17 million from the proceeds of a single shipment of cocaine. Santoro arranged the collection and laundering of at least €5 million of those funds, the vast majority of which was laundered using the U.S. banking system.
In coordination with the Department of Justice, the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs announced today a reward of up to $2 million under the Transnational Organized Crime Rewards Program (TOCRP) for information leading to Marset’s arrest and/or conviction. This is in addition to a $100,000 reward in Bolivia announced in 2023.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Louis A. D’Ambrosio, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement.
The Justice Department’s Office of International Affairs and law enforcement partners in Paraguay provided substantial assistance to secure the arrest and extradition of Santoro Vassallo.
Assistant U.S. Attorneys Anthony T. Aminoff and Catherine Rosenberg are prosecuting the case.
Anyone with information about Marset’s operation, including his drug trafficking, money laundering, and use of (or threats to use) violence, or about his whereabouts, is urged to contact the DEA by email at [email protected].
This investigation 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-143.
Alleged 18th Street gang member pleads guilty to illegally reentering United StatesRead the Press Release
COLUMBUS, Ohio – An alleged transnational gang member pleaded guilty in U.S. District Court to illegally reentering the United States.
Milton Guevara-Cruz, 31, of El Salvador, illegally reentered the country after being convicted of a felony.
Charging documents in this case state that Guevara-Cruz is believed to be a member of the violent 18th Street transnational gang from El Salvador. He is described as a member of the gang’s Tyni Locos Surenos clique who has been arrested in El Salvador three times for related criminal activity.
Guevara-Cruz’s plea agreement details that ICE officers encountered the defendant on March 11 in Columbus. He was physically removed from the United States on multiple prior occasions, including in 2014, 2017 and 2019. His most recent removal occurred after he was convicted of illegal reentry in federal court in New Mexico.
Illegally reentering the United States after a felony conviction is a federal crime punishable by up to 10 years in prison.
Congress sets minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Jared Murphey, acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit; and Robert Lynch, Field Office Director, ICE Enforcement and Removal Operations (ERO) Detroit Field Office; announced the guilty plea entered on May 20 before U.S. District Judge Edmund A. Sargus, Jr. Deputy Criminal Chief Brian J. Martinez is representing the United States in this case.
This case was investigated and prosecuted by the Southern District of Ohio Homeland Security Task Force (HSTF) as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Agendia, Inc., Knoxville Comprehensive Breast Center, PLLC, and Knoxville Dermatopathology Laboratory, LLC Agree to Settle False Claims Act Allegations for More Than $3,750,000Read the Press Release
KNOXVILLE, Tenn. – Agendia, Inc., a global molecular diagnostics company that offers genomic testing designed to profile certain types of breast cancer, including a lab test called MammaPrint, agreed to settle allegations under the False Claims Act (FCA) that the company submitted deceptive claims for reimbursement for MammaPrint genomic tests to government health care benefit programs. Under the terms of the settlement, Agendia will pay at least $3,250,000 and potentially additional sums if the privately held Company is sold. In separate settlements, Knoxville Comprehensive Breast Center (KCBC) and Knoxville Dermatopathology Laboratory (KDL) agreed to resolve related FCA allegations for $322,500 and $207,500, respectively.
According to filed documents, it was alleged that from August 1, 2019, through September 30, 2022, Agendia knowingly submitted false claims for MammaPrint testing to Medicare, Medicaid, and other government payors. The United States contended that the MammaPrint claims were false because Agendia caused physicians and providers (referring providers) to order MammaPrint testing that was not reasonable or medically necessary through standing or automatic orders. The government also maintained that certain claims submitted by Agendia were deceptive because they were tainted by the payment of illegal remuneration to referring providers who ordered the tests - including extravagant dinners, excessive or improper honoraria, gift cards, and payments per referral or monthly flat rate payment arrangements. The settlements also resolve allegations that KCBC and KDL, working together, knowingly participated in Agendia’s scheme to obtain referrals for MammaPrint that were not reasonable and necessary and/or were induced by illegal compensation provided by Agendia.
“The Medicare and Medicaid programs deliver coverage for vital medical and diagnostic testing to beneficiaries and recipients,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “False claims submitted to these programs for costly genomic testing that was not reasonable and medically necessary and inducing referrals through improper payments made to referring providers are not victimless offenses. The settlement in this case demonstrates that the United States Attorney’s Office and federal, state, and local law enforcement partners, are using all tools available to redress fraud and abuse and preserve scarce financial resources for legitimate and necessary medical care.”
"Violations of the Anti-Kickback Statute related to laboratory testing waste valuable federal health care program funds and undermine the integrity of medical decision-making," said Special Agent in Charge Kelly J. Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). "Participants in federal health care programs must comply with laws designed to protect program funds and ensure patients receive appropriate, high-quality care."
“Wrongful billing for unnecessary medical testing undermines the integrity of the Federal Employees Health Benefits Program, generating costs for the government but no benefit to patients,” said Special Agent in Charge Derek M. Holt of the U.S. Office of Personnel Management Office of the Inspector General. “We applaud the tireless work of our investigative staff and partners at the Department of Justice, holding accountable those who seek to enrich themselves at the expense of the taxpayers.”
The civil settlement includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the False Claims Act by two relators, Dr. Raymond Brig and Mr. Lance Albertson, in two separate cases. Under the whistleblower provisions, a private party can file an action on behalf of the United States and may receive a portion of any recovery. The two qui tam cases are captioned U.S. ex rel. Raymond Brig, M.D. v. Agendia, Inc. et al., Case No. 3:21-CV-286 (E.D. Tenn.) and U.S. ex rel. Lance Albertson v. Agendia, Inc., Case No. 3:23-CV-289 (E.D. Tenn.). The relators will receive $296,725 of the proceeds from the settlement and may eventually receive as much as $921,725.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for Eastern District of Tennessee, with assistance from OPM-OIG, HHS-OIG, and the Tennessee Valley Authority’s Office of the Inspector General (TVA-OIG).
The investigation and resolution of this matter illustrates the government’s emphasis on 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 matter was handled by Assistant U.S. Attorneys Alan G. McGonigal and Alexa Ortiz Hadley for the Eastern District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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20 May 2025
Worcester College Student to Plead Guilty to Cyber ExtortionsRead the Press Release
BOSTON – A student at Assumption University in Worcester, Mass., has been charged, and has agreed to plead guilty, in connection with hacking into the computer networks of two U.S.-based companies and extorting the companies for ransoms.
Matthew D. Lane, 19, of Sterling, Mass., has agreed to plead guilty to one count each of cyber extortion conspiracy; cyber extortion; unauthorized access to protected computers; and aggravated identity theft. A plea hearing has not yet been scheduled by the Court.
“Cyber extortion is a serious attack on our economy and on all of us. As alleged, this defendant stole private information about millions of children and teachers, imposed substantial financial costs on his victims, and instilled fear in parents that their kids’ information had been leaked into the hands of criminals – all to put a notch in his hacking belt. The alleged ransoms that this defendant and others like him demand hurt victim companies and their innocent customers whose data the companies are entrusted to hold,” said United States Attorney Leah B. Foley.
“Matthew Lane apparently thought he found a way to get rich quick, but this 19-year-old now stands accused of hiding behind his keyboard to gain unauthorized access to an education software provider to obtain sensitive data which was used in an attempt to extort millions of dollars. He also allegedly conspired to extort more money from a telecommunications provider over its confidential data,” said Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This alleged scheme has resulted in serious consequences and highlights the FBI’s ongoing commitment to bringing cyber criminals to justice, no matter what their motivation is for willfully breaking the law.”
According to court filings, between April 2024 and May 2024, Lane agreed with others to extort a $200,000 ransom payment from a telecommunications company by threatening to publicly disseminate customer data that had previously been stolen from the company’s computer network. When the victim company questioned whether a ransom payment would in fact end the threat of its customer data being leaked, Lane allegedly responded, “We are the only ones with a copy of this data now. Stop this nonsense [or] your executives and employees will see the same fate . . . . Make the correct decision and pay the ransom. If you keep stalling, it will be leaked.”
It is further alleged that Lane used stolen login credentials to access the computer network of a second victim company – a software and cloud storage company that served school systems in the United States, Canada and elsewhere. Lane allegedly caused personally identifying information (PII) of students and teachers stored on that company’s networks to be transferred to a computer server that Lane leased in Ukraine.
Later, the second victim company and others received threats that the PII of more than 60 million students and 10 million teachers – including names, email addresses, phone numbers, Social Security numbers, dates of birth, medical information, residential addresses, parent and guardian information and passwords, among other data – would be “leak[ed] . . . worldwide” if the company did not pay a ransom of approximately $2.85 million in Bitcoin.
Members of the public who have questions or concerns as to whether a particular student and/or teacher’s information was compromised should contact their local school district.
The charges of cyber extortion conspiracy, cyber extortion and unauthorized access to protected computers each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000, or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, consecutive to any sentence imposed on the computer fraud charges. 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.
U.S. Attorney Foley and FBI Acting SAC Milka made the announcement today. Valuable assistance was provided by the Assumption University Police Department. Assistant U.S. Attorney Kristen A. Kearney of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Washington D.C. Accountant Sentenced for Mortgage Fraud and Tax CrimesRead the Press Release
A Washington, D.C., Certified Public Accountant (CPA) was sentenced yesterday to 20 months in prison for making a false statement on a mortgage loan application and not filing an income tax return.
According to court documents and statements made in court, Timothy Trifilo worked in tax compliance for several large accounting and finance firms. In recent years, he was managing director at a tax firm where he specialized in transaction structuring and advisory service, tax compliance, and tax due diligence. Nevertheless, for a decade, Trifilo did not file federal income tax returns or pay all the taxes that he owed despite earning more than $7.7 million during that time. He caused a tax loss to the IRS of more than $2 million.
In February 2023, Trifilo sought to obtain a $1.36 million bank-financed loan to purchase a home in D.C. and was working with a mortgage company to do so. After the mortgage company told Trifilo that the bank would not approve the loan without copies of Trifilo’s filed tax returns, Trifilo provided the mortgage company with fabricated documents to make it appear as if he had filed tax returns and provided copies of tax returns for 2020 and 2021 that he never filed with the IRS. On these returns and other documents that he submitted to the mortgage company, Trifilo listed a former colleague as the individual who prepared the returns and uploaded them for filing with the IRS. This individual did not prepare the returns, has never prepared tax returns for Trifilo, and did not authorize Trifilo to use his name on the returns and other documents that Trifilo submitted to the mortgage company. Based on Trifilo’s false representation, the bank approved the loan and Trifilo purchased the home.
In addition to his prison sentence, U.S. District Court Judge Tanya S. Chutkan for the District of Columbia ordered Trifilo to serve two years of supervised release and pay $2,057,256.40 in restitution to the IRS.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Melissa S. Siskind and Alexis Fleszar of the Tax Division prosecuted the case.
Virginia Man Charged with Conspiracy in Smuggling of Honduran MinorRead the Press Release
ALBUQUERQUE – A Virginia man has been charged with conspiracy to transport an illegal alien after he arranged and paid for the smuggling of a 17-year-old Honduran minor into the United States.
According to court documents, on May 3, 2025, U.S. Border Patrol agents apprehended a 17-year-old unaccompanied minor from Honduras near Santa Teresa, New Mexico, after she unlawfully entered the United States. The subsequent investigation revealed that Luis Alonso Argueta-Diaz, 35, of Virginia, had arranged and partially paid for the minor’s smuggling into the country. When questioned by agents from Homeland Security Investigations, Argueta-Diaz admitted to coordinating and financing the minor’s journey with the intent for her to live with him and assist in caring for his children.
Argueta-Diaz is charged with conspiracy to transport an illegal alien and will remain in custody pending trial, which has not yet been scheduled. If convicted of the current charges, Argueta-Diaz faces 10 years in prison.
U.S. Attorney Ryan Ellison and Jason T. Stevens, Special Agent in Charge of Homeland Security Investigations El Paso, made the announcement today.
Homeland Security Investigations investigated this case with assistance from U.S. Border Patrol, U.S. Immigration and Customs Enforcement ERO Richmond, FBI Richmond Field Office, IRS Criminal Investigation, Virginia State Police, and the Henrico Police Department. The U.S. Attorney’s Office for the District of New Mexico is prosecuting this case as part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN).
View the Criminal Complaint (Argueta-Diaz).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Hosts Elder Fraud Prevention ForumRead the Press Release
MIAMI – The U.S. Attorney’s Office for the Southern District of Florida hosted a public outreach event and interactive discussion, in partnership with the American Association of Retired Persons (AARP), focused on preventing crimes against senior citizens on May 15, 2025 at Century Village in Pembroke Pines, Florida. Participants included the U.S. Attorney’s Office, FBI, U.S. Postal Inspection Service, Florida’s Office of Financial Regulation, Broward State Attorney’s Office, the Wilton Manors Police Department, and AARP Florida.
The program discussed common schemes affecting senior citizens, investment fraud, lottery, and inheritance fraud, along with a local law enforcement panel with local fraud and abuse case examples.
This program is part of the U.S. Attorney’s Office for the Southern District of Florida’s Elder Justice Initiative. For more information about the Justice Department’s efforts to help American seniors please visit the Elder Justice Initiative webpage at justice.gov/elderjustice and for information regarding how the FBI can help the public, visit https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/elder-fraud.
To report an elder fraud scam, please call 1-800-CALL-FBI, submit a tip at https://www.ic3.gov/Home/EF, or contact your local field office. The National Elder Fraud Hotline is also available for reports at 1-833-FRAUD-11 (1-833-372-8311).
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.
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Two Springfield Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Two men from Springfield, Mo., were sentenced in federal court for their roles in a conspiracy to distribute large quantities of methamphetamine in the Springfield area.
Erik C. Foster, 43, was sentenced by U.S. District Judge Brian C. Wimes, to 215 months in federal prison without parole, to be followed by 5 years of supervised release. Foster pleaded guilty on Dec. 16, 2024.
Tilton Chase Tate, 41, was sentenced by U.S. District Judge Brian C. Wimes, to 146 months in federal prison without parole, to be followed by 5 years of supervised release. Tate pleaded guilty on October 15, 2024.
Foster and Tate were charged, along with other individuals, in a 24-count superseding indictment on July 25, 2023, for their roles in a drug conspiracy that lasted from Dec. 2020 to Oct. 2022.
Foster admitted to purchasing and delivering methamphetamine for other conspirators to distribute in Southwest Missouri. During the course of the conspiracy, law enforcement seized well over 50 grams of methamphetamine from members of the conspiracy.
According to court records, on Sep. 10, 2022, officers with the Republic, Mo. Police Department located two plastic bags containing at least 844 grams of methamphetamine from inside a speaker during a traffic stop where Foster was the passenger. Foster told officers that he had picked up the methamphetamine in Joplin and was taking it to Springfield to deliver it to a co-conspirator for distribution.
On Oct. 12, 2022, deputies with the Greene County, Mo., Sheriff’s Office seized a small plastic bag of what appeared to be black tar heroin, a backpack containing 70 grams of methamphetamine, and over $11,960 in cash from Foster during a traffic stop. During a post-Miranda interview, Foster told officers that he was taking the backpack to a co-conspirator for distribution and that he had made six or seven similar trips to deliver methamphetamine.
Tate admitted to possessing and distributing methamphetamine to others as part of the conspiracy.
On Oct. 19, 2021, during a traffic stop, a Springfield, Mo. Police Department (SPD) detective seized over 440 grams of methamphetamine from Tate.
On April 14, 2022, while executing a search warrant for Tate’s residence, SPD officers located a Ruger LCP 380 handgun and a Stoeger Arms, STR 9C 9mm handgun, as well as miscellaneous pills and suspected methamphetamine.
Later in April, during a post-Miranda interview, Tate admitted to purchasing the methamphetamine seized during the Oct. traffic stop from a co-conspirator. He estimated that he was selling a pound of methamphetamine each week.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the Greene County, Mo., Sheriff’s Office, the Missouri State Highway Patrol, the Republic, Mo., Police Department, and the Springfield, Mo., Police Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Troy Man Arraigned on Gun and Drug ChargesRead the Press Release
ALBANY, NEW YORK – Zyjee Lind, a/k/a “Fredo,” age 30, of Troy, New York, was arraigned today on an indictment charging him with possession of firearms as a previously convicted felon, possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of drug trafficking crimes. United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
If convicted on all charges, Lind would face at least 5 years and up to life in prison, and a term of supervised release of at least 3 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The FBI is investigating the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting.
Torrington Man Involved in Hartford-Based Drug Ring Guilty of Fentanyl Trafficking OffensesRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found MARIO PASCUAL-AQUINO, 44, of Torrington, guilty of fentanyl trafficking offenses.
According to the evidence presented during the trial, this matter stems from a DEA Hartford Task Force investigation of a Hartford-based drug trafficking organization involved in the distribution of a large amount of fentanyl and other narcotics, and the transportation and laundering of cash proceeds from their drug trafficking activity. In January 2022, law enforcement coordinated a motor vehicle stop of a minivan and seized $92,000 from a hidden compartment. The investigation revealed that Harold Luis Del Orbe, also known as “Jaro,” was directing the operators of the minivan to conduct narcotics-related transactions on his behalf. On November 16, 2022, investigators executed a court-authorized search warrant at an apartment on Putnam Heights in Hartford and seized approximately 1.5 kilograms of fentanyl, items used to process and package narcotics, and a loaded .40 caliber semi-automatic handgun. Pascual-Aquino, Del Orbe, and others were present in the apartment at the time of the search.
The trial before U.S. District Judge Vernon D. Oliver began on May 14, 2025. On May 19, Pascual-Aquino was found guilty of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, and possession with intent to distribute 400 grams or more of fentanyl. At sentencing, which is scheduled for August 13, Pascual-Aquino faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Pascual-Aquino, who had been released on bond, was remanded to custody at the conclusion of his trial.
Del Orbe pleaded guilty to related charges and, on May 6, 2025, was sentenced to 120 months of imprisonment.
In April 2017, Pascual-Aquino was sentenced in Hartford federal court to 30 months of imprisonment for his role in a stolen identity tax refund scheme.
This investigation is being conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, Middletown, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone and Robert S. Dearington through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Three White Supremacists Sentenced to Prison for Racketeering Conspiracy; Two to Serve Life in Prison for MurderRead the Press Release
On May 19, a federal judge sentenced three members of the Aryan Brotherhood prison gang who were convicted at trial of a racketeering (RICO) conspiracy that included multiple murders, drug trafficking, fraud, and robbery.
Francis Clement, 58, was found guilty by a jury in February of RICO conspiracy and five separate counts of murder in aid of racketeering. Each of these murders was committed while Clement was in state prison. Clement was sentenced to life in prison. There is no parole in the federal system.
The jury also found Kenneth Johnson, 63, guilty of RICO conspiracy and two counts of murder in aid of racketeering. Johnson was also sentenced to life in prison.
A third defendant, John Stinson, 70, was found guilty of one count of RICO conspiracy. Stinson, who was already serving a lengthy prison sentence in the California state prison system, was sentenced to 20 years in federal prison.
According to court documents and evidence presented at trial, between 2016 and 2023, Aryan Brotherhood members and associates engaged in racketeering activity, including murder, conspiracy to murder, fraud, robbery, and drug trafficking crimes. Johnson and Clement, who both held leadership roles in the gang, directed crimes committed by Aryan Brotherhood members both inside and outside of prison using cellphones that had been smuggled into prison. Because of his rank in the gang, Clement received a cut from the illegal drug sales and fraud schemes the Aryan Brotherhood committed. According to trial testimony, the Aryan Brotherhood regularly smuggled drugs, including methamphetamine, into prisons throughout the California prison system, which defendants and other gang members then sold to inmates.
In October 2020, Johnson and Clement together ordered one murder during the execution of which another individual was also killed. Johnson and Clement also ordered another murder of an individual who was subsequently killed. It was further proven at trial that in February 2022, Clement ordered the murder of an individual and the following month, in March 2022, Clement ordered the murder of two more individuals. For each murder, the killings were ordered because defendants believed the victims either violated gang rules or owed the gang money.
According to court documents and evidence presented at trial, Stinson was a high-ranking leader of the Aryan Brotherhood and had substantial authority over the enterprise, including sponsoring multiple individuals for membership, resolving disputes among members, and approving the murder of current and former members. During the investigation, Stinson used a contraband cellphone within his prison cell to conduct business on behalf of the Aryan Brotherhood. The jury heard some of these communications from Stinson through court-authorized wiretapped conversations. Evidence was presented that Stinson also engaged in drug trafficking, and that, given his position within the gang, he received a cut of illegal drug sales that took place in prison and out on the street.
“The convicted defendants led a notorious prison gang that committed ruthless murders, widespread methamphetamine trafficking, and perpetuated a culture of mayhem, fear, and disorder within the prison system that bled into the outside world,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division. “Organized crime within the prison system, enabled by the use of contraband cellphones, endangers American neighborhoods by flooding streets with dangerous drugs. The Criminal Division will continue to pursue crime syndicates, like the Aryan Brotherhood and their facilitators, to ensure they go to prison and the harm they inflict on society ends once incarcerated.”
“Today’s sentences are yet another blow to the leadership of a violent criminal enterprise run from inside California prisons and spanning multiple counties and states,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison. We are committed to doing everything we can to stop these violent inmates from orchestrating their criminal activities from inside prison walls.”
“These sentences send a clear message: the walls of a prison do not shield violent gang leaders from justice,” said Acting Director Daniel Driscoll of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The Aryan Brotherhood’s leadership operated a brutal criminal enterprise from behind bars — ordering murders, trafficking drugs, and fueling violence in our communities. ATF remains committed to working with our law enforcement partners to dismantle violent gangs wherever they operate and hold their leaders accountable, no matter where they try to hide.”
The indictment in this case charged 11 defendants with RICO conspiracy and other crimes. There are five defendants awaiting trial and the three defendants have pleaded guilty.
This case was the product of an extensive investigation by the ATF, with assistance from the Office of Correctional Safety (CDCR), U.S. Marshals Service, Los Angeles County Sheriff’s Department, Pomona Police Department, Torrance Police Department, San Diego Police Department, San Diego Sheriff’s Department, Los Angeles County District Attorney’s Office, and Kern County District Attorney’s Office.
Assistant U.S. Attorneys Stephanie Stokman and James Conolly for the Eastern District of California are prosecuting the case with the assistance of Trial Attorney Jared Engelking of the Criminal Division’s Violent Crime and Racketeering Section.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit https://www.justice.gov/ocdetf.
Three White Supremacists Sentenced in Prison Racketeering Conspiracy, Two to Serve Life in Prison for MurderRead the Press Release
FRESNO, Calif. — On May 19, 2025, a federal judge sentenced three members of the Aryan Brotherhood prison gang who were convicted at trial of a racketeering (RICO) conspiracy that included multiple murders, drug trafficking, fraud, and robbery.
Francis Clement, 58, was found guilty by a jury in February 2025 of RICO conspiracy and five separate counts of murder in aid of racketeering for the murders of Allan Roshanski, Ruslan Magomedgadzhiev, Michael Brizendine, James Yagle, and Ronnie Ennis. Each of these murders was committed while Clement was in state prison. Clement was sentenced to life in prison. There is no parole in the federal system.
The jury also found Kenneth Johnson, 63, guilty of RICO conspiracy and two counts of murder in aid of racketeering for the murders of Roshanski and Magomedgadzhiev. Johnson was also sentenced to life in prison.
A third defendant, John Stinson, 70, was found guilty of one count of RICO conspiracy. Stinson, who was already serving a lengthy prison sentence in the California state prison system, was sentenced to 20 years in prison in federal custody.
According to court documents and evidence presented at trial, between 2016 and 2023, Aryan Brotherhood members and associates engaged in racketeering activity, including murder, conspiracy to murder, fraud, robbery, and drug trafficking crimes. Johnson and Clement, who both held leadership roles in the gang, directed crimes committed by Aryan Brotherhood members both inside and outside of prison using cellphones that had been smuggled into prison. Because of his rank in the gang, Clement received a cut from the illegal drug sales and fraud schemes the Aryan Brotherhood committed. According to trial testimony, the Aryan Brotherhood regularly smuggled drugs, including methamphetamine, into prisons throughout the California prison system, which defendants and other gang members then sold to inmates.
In October 2020, Johnson and Clement together ordered the murder of Roshanski, during the execution of which Magomedgadzhiev was also killed. Johnson and Clement also ordered the murder of Brandon Lowery, who was subsequently killed. It was further proven at trial that in February 2022, Clement ordered the murder of Michael Brizendine. The following month, in March 2022, Clement ordered the murders of Ronald Ennis and James Yagle. For each murder, the killings were ordered because defendants believed the victims either violated gang rules or owed the gang money.
According to court documents and evidence presented at trial, Stinson was a high-ranking leader of the Aryan Brotherhood and had substantial authority over the enterprise, including sponsoring multiple individuals for membership, resolving disputes among members, and approving the murder of current and former members. During the investigation, Stinson used a contraband cellphone within his prison cell to conduct business on behalf of the Aryan Brotherhood. The jury heard some of these communications from Stinson through court-authorized wiretapped conversations. Evidence was presented that Stinson also engaged in drug trafficking, and that, given his position within the gang, he received a cut of illegal drug sales that took place in prison and out on the street.
“The convicted defendants led a notorious prison gang that committed ruthless murders, widespread methamphetamine trafficking, and perpetuated a culture of mayhem, fear, and disorder within the prison system that bled into the outside world,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division. “Organized crime within the prison system, enabled by the use of contraband cellphones, endangers American neighborhoods by flooding streets with dangerous drugs. The Criminal Division will continue to pursue crime syndicates, like the Aryan Brotherhood and their facilitators, to ensure they go to prison and the harm they inflict on society ends once incarcerated.”
“Today’s sentences are yet another blow to the leadership of a violent criminal enterprise run from inside California prisons and spanning multiple counties and states,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The Aryan Brotherhood has maintained its deadly influence over members, associates and others both inside and outside prison. We are committed to doing everything we can to stop these violent inmates from orchestrating their criminal activities from inside prison walls.”
“These sentences send a clear message: the walls of a prison do not shield violent gang leaders from justice,” said Acting Director Daniel Driscoll of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The Aryan Brotherhood’s leadership operated a brutal criminal enterprise from behind bars — ordering murders, trafficking drugs, and fueling violence in our communities. ATF remains committed to working with our law enforcement partners to dismantle violent gangs wherever they operate and hold their leaders accountable, no matter where they try to hide.”
The indictment in this case charged 11 defendants with RICO conspiracy and other crimes. There are five defendants awaiting trial and the three defendants have pleaded guilty.
This case was the product of an extensive investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Office of Correctional Safety (CDCR), the U.S. Marshals Service, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the Torrance Police Department, the San Diego Police Department, the San Diego County Sheriff’s Department, the Los Angeles County District Attorney’s Office, and the Kern County District Attorney’s Office.
Assistant U.S. Attorneys Stephanie Stokman and James Conolly of the Eastern District of California and Trial Attorney Jared Engelking of the Justice Department’s Violent Crime and Racketeering Section are prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi‑agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
Texas man found guilty of failing to register as a sex offenderRead the Press Release
GREAT FALLS – A Texas man who failed to register as a sex offender was found guilty by a federal judge today, U.S. Attorney Kurt Alme said.
Following a bench trial, Tracy Allen Reilly, 60, was found guilty of failure to register as a sex offender. Reilly faces 10 years in prison, a $250,000 fine, and at least 5 years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for October 1, 2025. Reilly will remain in custody pending further proceedings.
The government alleged in court documents that in 1995, Tracy Allen Reilly was convicted in Texas of aggravated sexual assault of a child and sentenced to 20 years in custody. He discharged from custody in 2014 and was instructed to register as a sexual offender for the duration of his life. In July 2018, Reilly was convicted of another felony in Texas for violating sex offender registration. After he was released from custody on that sentence, Reilly signed additional registration forms in 2022 and in June of 2023.
Reilly moved to Montana sometime in the fall of 2023. Before he moved, he was informed he would be required to register as a sex offender in Montana. Once in Montana, Reilly camped on federal land around Homestake Lake in Jefferson County. In October 2023, the Jefferson County Sheriff’s Office contacted Reilly and advised him he was required to register as a sex offender.
In November 2023, an officer with the U.S. Forest Service was patrolling the Homestake area and made contact with Reilly. The officer learned Reilly was a non-compliant sex offender, and when the officer again encountered Reilly in January 2024, he told Reilly he needed to register. Reilly never registered as a sex offender in Montana.
On November 6, 2024, the Grand Jury returned an indictment charging Reilly with failure to register as a sex offender, in violation of 18 U.S.C. § 2250(a). Reilly was arrested in December 2024.
The U.S. Attorney’s Office prosecuted the case. The investigation was conducted by the U.S. Marshals Service, U.S. Forest Service, and Jefferson County Sheriff’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
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Sioux Falls Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Roberto A. Lange has sentenced a Sioux Falls, South Dakota man convicted of Attempted Enticement of a Minor. The sentencing took place on May 14, 2025.
Stacy Shannon Hoover, age 57, was sentenced to 10 years in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Once released from federal prison, Hoover will need to register as a sex offender.
Hoover was indicted by a federal grand jury in March 2024. He pleaded guilty on February 7, 2025.
The conviction stemmed from an incident on March 10, 2024, when Hoover, who was using his cell phone to access Facebook, initiated a text conversation with what he thought was a 15-year-old female. Unbeknownst to him, the 15-year-old girl was actually an undercover law enforcement agent. During the chat conversation, Hoover raised the topic of sex, and he set up a time and location for a sexual encounter with a person he thought to be a 15-year-old girl. Hoover showed up at the meeting place and was arrested without incident.
This case was investigated by the South Dakota ICAC Task Force, the Lincoln County Sheriff’s Office, the Sioux Falls Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Hoover was immediately remanded to the custody of the U.S. Marshals Service.
Shiprock Man Charged with Assault in ShootingRead the Press Release
ALBUQUERQUE – A Shiprock man has been charged with assault with a dangerous weapon following a shooting incident outside a restaurant.
According to court documents, Navajo Nation Police responded to a 911 call reporting that an individual was shot in the hand in front of the Little Caesars Restaurant in Shiprock. Officers located the suspect, identified as Terrold Tyler, 35, an enrolled member of the Navajo Nation, near the scene carrying a black backpack that contained a homemade firearm and five live shotgun shells. Tyler was detained without incident.
Investigators determined that Tyler and the victim were involved in an argument behind the restaurant prior to the shooting. Tyler allegedly produced the homemade shotgun and shot the victim in the left hand. Paramedics responded to the scene, but the victim declined medical treatment. A social media video depicting Tyler with the firearm was also recovered as evidence.
Tyler is charged with assault with a dangerous weapon and will remain in custody pending trial, which has not yet been scheduled. If convicted of the current charges, Tyler faces up to 10 years in prison.
U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Amy Mondragon is prosecuting the case.
View the Criminal Complaint (Tyler).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Shiprock Man Charged in Connection to Stabbing IncidentRead the Press Release
ALBUQUERQUE – A Shiprock man has been charged with assault with a dangerous weapon after he allegedly stabbed a man multiple times during an altercation near Shiprock.
According to court documents, on the night of April 19, 2025, Navajo Police Department officers responded to a 911 call reporting a stabbing in Shiprock, New Mexico. Officers located the victim who had sustained three stab wounds to his upper and lower back. The victim was transported to the hospital for emergency treatment.
An investigation led by the FBI and Navajo Nation Criminal Investigators revealed that Matthew Charley, 29, an enrolled member of the Navajo Nation, approached the victim and two witnesses. After a brief verbal exchange, the witnesses left the area, leaving Charley and the victim alone. When the witnesses returned a short time later, they found the victim had been stabbed. The victim identified Charley as his assailant.
Law enforcement collected witness statements, obtained video evidence, and reviewed surveillance footage that corroborated the description and movements of the suspect.
Screenshot of video showing CharleyCharley is charged with assault with a dangerous weapon and will remain in custody pending trial, which has not yet been scheduled. If convicted of the current charges, Charley faces 10 years in prison.
U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and Navajo Department of Criminal Investigations. Assistant U.S. Attorney Amy Mondragon is prosecuting the case.
View the Criminal Complaint (Charley).pdfA criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Jose Executives Plead Guilty to Employment Tax CrimesRead the Press Release
SAN JOSE — Two California men pleaded guilty yesterday to not paying over employment taxes to the IRS.
The following is according to court documents and statements made in court: Lalo Valdez and Matthew Olson, both of Northern California, operated a San Jose-based health informatics and product development company that provided clinical care and technology services to clients in healthcare and academia. Valdez was the CEO and Olson the CFO. As such, both were responsible for the company’s operations, managed its internal books and records, signed checks on behalf of the company, and hired and fired employees. Both men also were responsible for withholding Social Security, Medicare, and federal income taxes from employees’ wages and paying those funds over to the government each quarter. The timely payment of quarterly employment taxes is critical to the functioning of the U.S. government, because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
For every calendar quarter from the first quarter of 2017 through the second quarter of 2021, Valdez and Olson withheld these taxes from employees’ wages but did not pay them over to the IRS or report them on quarterly tax forms. Instead of paying over the taxes, Valdez and Olson used the company’s money to pay for country club memberships and season tickets to the San Jose Sharks of the National Hockey League.
During this same period, Olson also was one of the owners and operators of a day spa located in Saratoga, Calif. There, Olson was responsible for collecting and paying Social Security, Medicare, and income taxes to the IRS. From the second quarter of 2017 through the fourth quarter of 2020, however, Olson collected but did not pay them over to the IRS or report them on quarterly tax forms.
In total, Olson caused a tax loss to the IRS exceeding $2.1 million.
Valdez caused a total tax loss to the IRS of nearly $1.5 million.
Valdez and Olson are scheduled to be sentenced on Oct. 20. Both men face a maximum penalty of five years in prison as well as 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 U.S. Attorney Patrick D. Robbins, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and IRS Criminal Investigation Special Agent in Charge of the Oakland Field Office Linda Nguyen made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Kristina Green and Trial Attorney Mahana Weidler of the Tax Division are prosecuting the case.
San Diego Man Charged with Smuggling Exotic Live BirdsRead the Press Release
SAN DIEGO – Ricardo Alonzo of San Diego appeared in federal court today to face charges that he smuggled 17 exotic birds into the United States from Mexico under the seat of his car.
According to a complaint, Alonzo was the driver and registered owner of a vehicle that was intercepted by U.S. Customs and Border Protection officers at the San Ysidro Port of Entry. Officers found four bags containing 10 Burrowing Parakeets, five Yellow-Crowned Amazon Parrots, and two Red-Lored Amazon Parrots underneath the rear seat. The two Red-Lored Amazon Parrot chicks did not survive; the surviving birds were transferred to a quarantine facility managed by the U.S. Department of Agriculture.
“Trafficking exotic birds isn’t just illegal — it’s cruel and dangerous,” said U.S. Attorney Adam Gordon. “These actions put the lives of helpless animals at risk and expose the public and other animals to serious diseases.”
“This charge underscores our unwavering commitment to protecting vulnerable wildlife and holding traffickers accountable for their crimes,” said Shawn Gibson, special agent in charge of HSI San Diego. “We are grateful to our dedicated law enforcement partners whose collaboration was instrumental in bringing this individual to justice.”
According to the U.S. Fish and Wildlife Service, Amazon parrots are native to Mexico, the West Indies, and northern South America, while Burrowing Parakeets are local to Chile and Argentina. All 30-some species of Amazon parrots, as well as the Burrowing Parakeets, are listed on either Appendix I or Appendix II of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (“CITES”).
The successful smuggling of undeclared Amazon parrots and Burrowing Parakeets into the U.S. means no quarantine period or process. This would be dangerous to the United States as birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmosis. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including birds in United States poultry farms. Quarantining animals entering the United States is intended to safeguard against this potential disease transmission.
This case is being prosecuted by Assistant U.S. Attorney Parker Gardner-Erickson.
DEFENDANT Case Number 25mj2712-VET
Ricardo Alonzo Age: 26 San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law – Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
U.S. Fish and Wildlife Service
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.