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6 May 2025
Hugo Resident Sentenced for Possessing Child Sexual Exploitation MaterialRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Steven Mark McAnally, age 65, of Hugo, Oklahoma, was sentenced to 63 months in prison for one count of Possessing Certain Material Involving the Sexual Exploitation of a Minor. He will serve 5 years of supervised probation upon release from incarceration.
The charge arose from an investigation by Choctaw Nation Lighthorse Police and the Federal Bureau of Investigation.
On December 12, 2024, McAnally pleaded guilty to the charge. According to investigators, in July of 2023, McAnally knowingly possessed visual depictions from the internet of minors engaging in sexually explicit conduct, which McAnally accessed with intent to view.
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.justice.gov/psc.
We encourage anyone who suspects or has information regarding child sexual exploitation, trafficking of minors, sextortion, child pornography, or any other means of child exploitation to immediately contact law enforcement. You can file a report through the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or online at www.cybertipline.com, through the FBI at 1-800-CALL-FBI (1-800-225-5324), or through Homeland Security Investigations at 1-877-4-HSI TIP.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. McAnally will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Sarah McAmis represented the United States at the sentencing hearing.
Hopkinsville, Kentucky Man Sentenced to 30 Years in Federal Prison for Methamphetamine and Fentanyl Trafficking Conspiracy and Money LaunderingRead the Press Release
Paducah, KY – A Hopkinsville, Kentucky man was sentenced yesterday to 30 years in federal prison for his role in a methamphetamine and fentanyl trafficking conspiracy and money laundering. The sentence follows a conviction on all counts after a three-day jury trial earlier this year.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, U.S. Postal Inspector in Charge Lesley Allison of the of the Pittsburgh Division, Special Agent in Charge Karen Wingerd, Cincinnati Field Office, IRS Criminal Investigation, Special Agent in Charge John Nokes of the ATF Louisville Field Division, and Chief Jason Newby of the Hopkinsville Police Department made the announcement.
According to court documents, Robert Blaine, 46, was sentenced to 30 years in federal prison, followed by 10 years of supervised release, for one count of conspiring to distribute controlled substances and 7 counts of money laundering.
Blaine was on supervised release for a federal drug trafficking conviction at the time he committed the instant offenses.
According to court documents and evidence presented at trial, between May 20, 2020, and January 22, 2022, Blaine conspired with Roderick Tutt, 36, of Hopkinsville, Kentucky, and Jessica Ochoa, 40, of Phoenix Arizona, to possess with the intent to distribute over 50 grams of methamphetamine and over 400 grams of a fentanyl mixture. During that time frame, Blaine wired money to Ochoa as payment for the drugs and in furtherance of the overall conspiracy. Blaine also mailed a box containing $36,960 in U.S. currency to Ochoa that he obtained from proceeds of illegal drug sales. On January 21, 2022, Blaine arranged for Tutt to travel to Arizona to pick up fentanyl and methamphetamine from Ochoa. Tutt was supposed to bring the drugs back to Blaine in Hopkinsville. Tutt was arrested on the way back to Hopkinsville with 2,059 fentanyl pills and approximately 8 kilograms of methamphetamine.
Blaine has previously been convicted of the following drug trafficking crimes.
On or about June 13, 2008, in Fulton Circuit Court, Blaine was convicted of trafficking in marijuana, greater than 5 pounds.
On or about January 6, 2009, in Caldwell Circuit Court, Blaine was convicted of first-degree trafficking in a controlled substance – cocaine.
On or about August 27, 2009, in Christian Circuit Court, Blaine was convicted of first-degree trafficking in a controlled substance – cocaine.
On or about October 14, 2014, in the United States District Court for the Western District of Kentucky, Paducah Division, Blaine was convicted of three counts of manufacturing, distributing, or dispensing a controlled substance, cocaine.
Tutt and Ochoa previously pled guilty and were sentenced.
On March 25, 2025, Tutt was sentenced to 2 years in prison, followed by 3 years of supervised release, for conspiring with Blaine to possess with the intent to distribute over 50 grams of methamphetamine and 400 grams of a mixture and substance containing fentanyl.
On March 25, 2025, Ochoa was sentenced to 7 years and 4 months in prison, followed by 5 years of supervised release, for conspiring with Blaine to possess with the intent to distribute over 50 grams of methamphetamine and 400 grams of a mixture and substance containing fentanyl and seven counts of money laundering.
There is no parole in the federal system.
This case was investigated by the DEA Paducah Post of Duty, the United States Postal Inspection Service Bowling Green Office, the Internal Revenue Service Criminal Investigation Division Bowling Green Office, the ATF Bowling Green Field Office, and the Hopkinsville Police Department, with assistance from the FBI Louisville Field Division, the Tonto Apache Police Department, the DEA Phoenix Division, and the United States Postal Inspection Service Phoenix Division.
Assistant United States Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case with assistance from paralegal Cristy Crockett.
This case was sentenced under 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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Hamilton man sentenced to 5 years in federal prison for illegally possessing firearms, Glock switchRead the Press Release
CINCINNATI – A previously convicted felon was sentenced in U.S. District Court today to 60 months in prison for illegally possessing firearms, including a fully automatic weapon.
Justin Ervin, 35, of Hamilton, possessed a machinegun-conversion device, known as a switch. The device converts a semi-automatic weapon into a fully automatic weapon.
According to court documents, in May 2024, Hamilton police officers executed a search warrant at a residence in which Ervin had been living. Officers were originally called to the house in response to a strangulation incident, for which Ervin has pleaded guilty in state court. Officers discovered seven firearms, one conversion device and more than 2,000 rounds of ammunition at the residence.
As a previously convicted felon for robbery and arson, Ervin is prohibited from possessing firearms and ammunition.
Ervin was indicted by a federal grand jury and arrested in June 2024. He pleaded guilty in October 2024.
Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Thomas A. Greco, Acting Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Columbus Field Division; and Hamilton Police Chief Trent Chenowith announced the sentence imposed today by U.S. District Judge Douglas R. Cole. Assistant United States Attorney Ryan A. Keefe and Criminal Chief Christy L. Muncy are representing the United States in this case.
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Hackensack Tax Preparer Sentenced to 36 Months in Prison for Tax Evasion and Aiding and Assisting in Preparing 177 False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey woman was sentenced today for tax evasion and for helping her clients file falsified tax returns that generated larger refunds, U.S. Attorney Alina Habba announced.
Joshlyn Raye, 49, of Elmwood Park, previously pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an Information charging her with one count of aiding and assisting in the preparation of a false and fraudulent tax return; one count of tax evasion; and one count of filing a false declaration under penalty of perjury concerning a quarterly tax return on behalf of her tax return business.
According to documents filed in this case and statements made in court:
Between March 2010 and September 2023, Raye was the owner of JB Tax Services, a tax return preparation business located in Hackensack. She knowingly and willfully evaded her personal income taxes over three of those years; filed 177 false tax returns on behalf of her clients; and filed three false quarterly employment tax returns on behalf of her tax return preparation business. Raye used fabricated and inflated figures, including expenses and itemized deductions.
In addition to the 36-month prison term, Judge Salas sentenced Raye to 3 years of supervised release and ordered her to pay $1,109,214.10 in restitution.
U.S. Attorney Habba credited members of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan; and members of the New York State Department of Taxation and Finance, Office of Internal Affairs, under the direction of Director Brian Hickey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the OCDETF/Narcotics Unit in Newark.
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Defense counsel: Richard J. Sapinski, Esq.
Guatemalan National Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan national was sentenced yesterday in federal court in Boston for illegally reentering the United States after deportation.
William Estuardo Rodriguez-Botello, 39, was sentenced by U.S. District Court Judge Indira Talwani to three months in prison to be followed by one year of supervised release. The defendant is subject to deportation upon completion of the sentence imposed. Earlier in the same hearing Rodriguez-Botello pleaded guilty to one count of unlawful reentry of a deported alien. In February 2025, Rodriguez-Botello was indicted by a federal grand jury.
Rodriguez-Botello is a citizen of Guatemala who entered the United States illegally in 2005 and 2012 having been removed to Guatemala in each instance. Sometime after his 2012 removal, Rodriguez-Botello illegally returned the United States and on Feb. 3, 2024, immigration authorities became aware Rodriguez-Botello was present in the United States following his arrest by the Waltham Police Department. Rodriguez-Botello was arrested and convicted on charges of Operating Under the Influence Liquor 2nd offense in Waltham District Court. Rodriguez-Botello was released from custody on this matter before ICE could take immigration or criminal enforcement action. On Feb. 4, 2025, immigration authorities encountered Rodriguez-Botello following his arrest and subsequent release from custody on conditions pending his case in Dedham District Court.
United States Attorney Leah B. Foley and Patricia H. Hyde, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit prosecuted the case.
Georgia Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jeremiah Clinton Gray, 42, of Blue Ridge, Georgia, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on July 22, 2024, law enforcement responded to reports of a man inside a Jackson County, Ohio, business with a firearm, body armor and a badge. The individual, later identified as Gray, left the business in a vehicle without a license plate and fled from an attempted traffic stop by law enforcement. The resulting pursuit led law enforcement into West Virginia, where the vehicle was stopped in Charleston with the assistance of spike strips. Gray was arrested and officers found a loaded Taurus model 1911 Officer 9mm pistol on his person and a loaded Mossberg model 590 Shockwave .410-gauge shotgun in the vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Gray knew he was prohibited from possessing a firearm because of his prior felony conviction for conspiracy to distribute and possess with intent to distribute in excess of 500 grams of cocaine in United States District Court for the Eastern District of Tennessee on October 20, 2023.
Gray is scheduled to be sentenced on August 12, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Virginia State Police and the Kanawha County Sheriff’s Office
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney JC MacCallum is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (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).
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:25-cr-35.
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Fourteen-Time Convicted Felon Pleads Guilty to Unlawfully Possessing A FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Gregory W. Kehoe announces that Todd Wade Powers (38, Middleburg) has pleaded guilty to possessing a firearm as a convicted felon. Powers faces a minimum sentence of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to court documents, on April 30, 2024, deputies with the Clay County Sheriff’s Office were dispatched to a gas station regarding a missing child complaint. While attempting to locate the complainant of the missing child report, the deputies observed a car parked near a gas pump and recognized the license plate affixed to the car as one that had been reported stolen out of Jacksonville. The deputies were able to see that there was an open backpack and a firearm on the passenger seat of the car, as well as a white powdery substance, later identified as cocaine. During a search of the car, the deputies recovered fentanyl, cocaine, methamphetamine, and marijuana, as well as two firearms.
Through the course of their investigation, the deputies linked Powers to the car and Powers later admitted that the firearms and drugs belonged to him. Powers was previously convicted of 14 felonies, including three counts of possession of controlled substances, two counts of felony petit theft, seven counts of sale or delivery of controlled substances, dealing in stolen property, and false verification of ownership on a pawnbroker transaction form. Therefore, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Elisibeth Adams.
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.
Four-Time Convicted Felon Sentenced to More Than Five Years in Prison for Possessing A Rifle, Ammunition, Machineguns, and SilencersRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Lee Ann Roberts (43, Altamonte Springs) to 5 years and 11 months in in federal prison for possessing a firearm and ammunition as a convicted felon and possessing unregistered machineguns and silencers. The court also ordered Roberts to forfeit the firearm, machineguns, silencers, and ammunition involved in the offense. Roberts pleaded guilty on October 17, 2024.
According to court documents, officers and agents with the Altamonte Springs Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received a tip that Roberts was selling firearms, machineguns, silencers, and grenade launcher parts out of a hotel room in Altamonte Springs. Law enforcement located Roberts and the vehicle in which she stored her firearms.
When officers searched the vehicle, they located a hunting rifle, two AR-platform receivers, three silencers, tactical gear, vests, magazines, and hundreds of rounds of assorted ammunition. The AR-platform receivers had been modified to allow fully automatic firing, making them machineguns under federal law.
(machinegun receivers and silencers recovered from Roberts’s vehicle)
Law enforcement also searched Roberts’s phone and found evidence that she had sold or attempted to sell several firearms, including many of the firearms which law enforcement had found in her car.
(image recovered from Roberts’s phone of firearms, magazines, and ammunition)
As a convicted felon, Roberts is prohibited from possessing firearms or ammunition under federal law. None of the machineguns or silencers were registered to Roberts in the National Firearms Registration and Transfer Record, as required under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Altamonte Springs Police Department. It was prosecuted by Assistant United States Attorney Richard Varadan.
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.
Four Honduran Nationals Indicted in Florida for Years-Long Off-the-Books Payroll SchemeRead the Press Release
Orlando, FL - Last week, a federal grand jury returned an indictment charging four Honduran nationals with operating an illegal, off-the-books cash payroll system for construction workers to avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies. Through the scheme, the conspirators facilitated the employment of undocumented aliens working illegally in the United States.
The defendants, Iris Villafranca, Mario Flores, Osman Zapata, and Cristofer Oseguera Giron, were charged with conspiracy to operate an unlicensed money transmitting business and conspiracy to defraud the United States. Villafranca was additionally charged with conspiracy to commit wire fraud and with filing false tax returns.
The following is according to the indictment: from 2015 to 2022, the defendants used a series of shell companies to run an unlicensed check cashing and cash courier service business that cashed approximately $89 million in checks from subcontractors in the construction industry. The subcontractors allegedly paid their workers using the cash. As a fee for their services, the defendants allegedly charged a percentage of the dollar amount of the checks they cashed. This scheme allegedly allowed construction contractors and subcontractors to pay their workers in cash without regard to required payroll taxes or whether the workers were legally authorized to work in the United States. Indeed, according to the indictment, the defendants caused the filing of false tax documents with the IRS to conceal the off-the-books payroll scheme and made only minimal employment tax deposits. As another aspect of the scheme, the defendants allegedly defrauded workers’ compensation insurance companies by leasing their certificates of insurance to contractors, and by providing false and fraudulent information to the insurers about, among other things, the number of workers covered by the insurance and the amount workers were paid.
The indictment also alleges that Villafranca filed false individual income tax returns for 2019 through 2022 that did not report all the income she earned from the scheme and also did not report rental income she earned from her real estate.
If convicted, Villafranca faces a maximum penalty of five years in prison for conspiracy to operate an unlicensed money transmitting business, a maximum penalty of 20 years in prison for conspiracy to commit wire fraud, and a maximum penalty of five years in prison for conspiracy to commit tax fraud. She additionally faces a maximum penalty of three years in prison for each count of filing false tax returns.
If convicted, Flores, Zapata, and Giron face a maximum penalty of five years in prison for conspiracy to operate an unlicensed money transmitting business, and a maximum penalty of five years in prison for conspiracy to commit tax fraud.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case. Homeland Security Investigations assisted during the investigation.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Kavitha Bondada and Rebecca A. Caruso of the Tax Division, and Assistant U.S. Attorney Amanda Daniels for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Honduran Nationals Indicted in Florida for Years-Long Off-the-Books Payroll SchemeRead the Press Release
Last week, a federal grand jury in Orlando, Florida, returned an indictment charging four Honduran nationals with operating an illegal, off-the-books cash payroll system for construction workers to avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies. Through the scheme, the conspirators facilitated the employment of undocumented aliens working illegally in the United States.
The defendants, Iris Villafranca, Mario Flores, Osman Zapata, and Cristofer Oseguera Giron, were charged with conspiracy to operate an unlicensed money transmitting business and conspiracy to defraud the United States. Villafranca was additionally charged with conspiracy to commit wire fraud and with filing false tax returns.
The following is according to the indictment: from 2015 to 2022, the defendants used a series of shell companies to run an unlicensed check cashing and cash courier service business that cashed approximately $89 million in checks from subcontractors in the construction industry. The subcontractors allegedly paid their workers using the cash. As a fee for their services, the defendants allegedly charged a percentage of the dollar amount of the checks they cashed. This scheme allegedly allowed construction contractors and subcontractors to pay their workers in cash without regard to required payroll taxes or whether the workers were legally authorized to work in the United States. Indeed, according to the indictment, the defendants caused the filing of false tax documents with the IRS to conceal the off-the-books payroll scheme and made only minimal employment tax deposits. As another aspect of the scheme, the defendants allegedly defrauded workers’ compensation insurance companies by leasing their certificates of insurance to contractors, and by providing false and fraudulent information to the insurers about, among other things, the number of workers covered by the insurance and the amount workers were paid.
The indictment also alleges that Villafranca filed false individual income tax returns for 2019 through 2022 that did not report all the income she earned from the scheme and also did not report rental income she earned from her real estate.
If convicted, Villafranca faces a maximum penalty of five years in prison for conspiracy to operate an unlicensed money transmitting business, a maximum penalty of 20 years in prison for conspiracy to commit wire fraud, and a maximum penalty of five years in prison for conspiracy to commit tax fraud. She additionally faces a maximum penalty of three years in prison for each count of filing false tax returns.
If convicted, Flores, Zapata, and Giron face a maximum penalty of five years in prison for conspiracy to operate an unlicensed money transmitting business, and a maximum penalty of five years in prison for conspiracy to commit tax fraud.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case. Homeland Security Investigations assisted during the investigation.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Kavitha Bondada and Rebecca A. Caruso of the Tax Division, and Assistant U.S. Attorney Amanda Daniels for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former NYCHA Superintendent Sentenced to 18 Months in Prison After Trial Conviction for Bribery and Extortion OffensesRead the Press Release
Jay Clayton, United States Attorney for the Southern District of New York, announced that HECTOR COLON, a former superintendent for the New York City Housing Authority (“NYCHA”), was sentenced today to 18 months in prison for soliciting and accepting approximately $30,000 in bribes from contractors in exchange for awarding repair contracts or approving repair work worth at least approximately $400,000. COLON’s sentence was imposed by U.S. District Judge Lewis J. Liman, who also presided over a one-week trial at which COLON was convicted of bribery and extortion under color of official right.
U.S. Attorney Jay Clayton said: “Hector Colon abused his position at NYCHA to demand bribes from contractors for his personal gain. The women and men of this Office are committed to pursuing those who abuse the public’s trust.”
According to the Indictment, public court filings, statements made in court, and evidence presented during trial:
NYCHA is the largest public housing authority in the country, providing housing to New Yorkers across the City and receiving over $1.5 billion in federal funding from the U.S. Department of Housing and Urban Development (“HUD”) every year. When repairs or construction work at NYCHA housing require the use of outside contractors, services must typically be purchased via a bidding process. However, when the value of a contract was under a certain threshold, designated staff at NYCHA developments, including superintendents, could hire a contractor of their choosing without soliciting multiple bids. With either type of contract, a NYCHA employee needed to certify that the work was satisfactorily completed in order for the contractor to receive payment from NYCHA.
COLON, a superintendent at three different NYCHA developments in Manhattan between 2018 and 2022, demanded and accepted cash in exchange for NYCHA contracts. He required contractors to pay bribes in order to be awarded the contracts or required bribe payments after the contractor finished the work and needed a NYCHA employee to sign off on the completed job so that the contractor could be paid by NYCHA. COLON typically demanded 10% of the contract value—between $500 and $1,000, depending on the size of the contract. In total, COLON demanded and accepted approximately $30,000 dollars in bribes in exchange for awarding no-bid contracts or approving payment on previously awarded contracts worth approximately $400,000.
Of the 70 individual NYCHA employees charged with bribery and extortion offenses who were arrested in February 2024, 62 have pled guilty, and three have been convicted after trial. COLON is the second of the three NYCHA employees convicted after trial to be sentenced. The cases of the five remaining defendants, who are each presumed innocent unless and until proven guilty, remain pending.
If you believe you have information related to bribery, extortion, or any other illegal conduct by NYCHA employees, please contact [email protected] or (212) 306-3356. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at [email protected].
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In addition to the prison term, COLON, 47, of the Bronx, New York, was sentenced to two years of supervised release and ordered to pay restitution in the amount of $30,000 and to forfeit $30,000.
Mr. Clayton praised the outstanding investigative work of the New York City Department of Investigation, the U.S. Department of Homeland Security – Homeland Security Investigations (“HSI”), the HUD Office of Inspector General, and the U.S. Department of Labor – Office of Inspector General, which work together collaboratively as part of the HSI Document and Benefit Fraud Task Force, as well as the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jacob R. Fiddelman, Catherine Ghosh, Jane Kim, Jerry J. Fang, and Meredith C. Foster are in charge of the prosecution, with the assistance of Paralegal Specialists Jayda Foote and Shirel Garzon.
Florida Man Pleads Guilty to Tax Evasion and Bankruptcy FraudRead the Press Release
BANGOR, Maine: A Florida man pleaded guilty today in U.S. District Court in Bangor to attempting to evade federal taxes and engaging in fraudulent transfers and concealment in a bankruptcy proceeding.
According to court records, Paul Archer, 46, formerly of Hampden and Orrington, operated a profitable online marketing business for software installation on computers, earning several million dollars from 2013 through 2015. After an IRS audit in 2016 assessed a federal tax debt totaling approximately $1 million for those years, Archer concealed and transferred assets through two LLCs he controlled and began using third-party bank accounts to evade paying the tax debt.
From April 2018 through November 2019, Archer transferred and concealed assets and income by using a series of bank accounts held in the names of Max Tune Up, LLC; Stealth Kit, LLC; his father; and his spouse. Using a bank account held by Stealth Kit, LLC, for instance, Archer received income via direct deposits, initiated and received over $2 million in wire payments, and used cryptocurrency trading platforms and online payment systems to transfer funds. Archer transferred an investment account held in his own name to an account held in the name of Stealth Kit, LLC, then engaged in trading activity, stock ownership, and dividend/interest distributions. Archer further owned and transacted in Bitcoin using two different cryptocurrency exchanges, purchasing and later trading cryptocurrency valued at several hundred thousand dollars.
In March 2019, Archer filed a Chapter 7 bankruptcy proceeding. In his Chapter 7 petition and schedules, Archer falsely claimed less than $50,000 in assets; a single checking account; no other assets or property interests; no recent asset transfers; and no connections to any businesses or memberships in any LLCs. Archer repeated these falsehoods under oath during meetings of creditors convened by a Chapter 7 Trustee, as well as in statements made to the U.S. Bankruptcy Court for the District of Maine.
Archer faces up to five years imprisonment and a fine up to $250,000 on each of the two charges to which he pleaded guilty. Any sentence will be followed by up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation and the FBI investigated the case.
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Five Charged in Human Smuggling Event that Led to at Least Three DeathsRead the Press Release
SAN DIEGO – Two complaints were filed in federal court today charging five people with participating in a human smuggling event that led to the deaths of at least three migrants, including a 14-year-old boy from India. His 10-year-old sister is still missing at sea and presumed dead; their father is in a coma and mother is also hospitalized.
According to court records, on May 5, 2025, witnesses observed an overturned panga boat at a beach in Del Mar, California. Bystanders and San Diego Lifeguards participated in rescue efforts. Law enforcement officials recovered three bodies, including the boy, identified in court records as P.P.B. Four others were rescued and hospitalized, including P.P.B.’s mother and father; nine others were initially unaccounted for, including P.B.B.’s 10-year-old sister.
Two men believed to be involved in the smuggling event – Mexican nationals Julio Cesar Zuniga Luna and Jesus Juan Rodriguez Leyva - were arrested Monday at the beach and charged today with Bringing in Aliens Resulting in Death and Bringing in Aliens for Financial Gain.
Later Monday night, Border Patrol agents were conducting operations in Chula Vista, California where they identified a vehicle that had been observed at the scene of the maritime smuggling incident earlier that day. The driver of the vehicle fled the scene. During the investigation, Border Patrol Agents identified two other vehicles that were involved in the smuggling event and were able to successfully stop and arrest the drivers of these load vehicles and locate eight of the nine migrants missing from the boat, with the exception of the 10-year-old sister of P.P.B.
Melissa Jenelle Cota, Gustavo Lara and Sergio Rojas-Fregosa – all Mexican nationals - were arrested and charged with Transportation of Illegal Aliens. Rojas-Fregoso, was identified as an alien who had previously been deported on December 19, 2023.
“The drowning deaths of these children are a heartbreaking reminder of how little human traffickers care about the costs of their deadly business,” said U.S. Attorney Adam Gordon. “We are committed to seeking justice for these vulnerable victims, and to holding accountable any traffickers responsible for their deaths.”
“Human smuggling, regardless of the route, is not only illegal but extremely dangerous. Smugglers often treat people as disposable commodities, leading to tragic and sometimes deadly consequences, as we saw in this case,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Yesterday's heartbreaking events are a stark reminder of the urgent need to dismantle these criminal networks driven by greed. The HSI along with the U.S. Border Patrol, U.S. Coast Guard, and other partners from the Marine Task Force, remains firmly committed to holding those responsible accountable for these senseless deaths.”
This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Edward Chang.
DEFENDANTS
Case Number 25mj02403-JLB
Jesus Ivan Rodriguez-Leyva Age: 36 Mexico
Julio Cesar Zuniga-Luna Age: 30 Mexico
SUMMARY OF CHARGES
Bringing in Aliens Resulting in Death – Title 8, U.S.C., Sections 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)
Maximum penalty: Death or Life in Prison and $250,000 fine
Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Ten years in prison with a three-year mandatory minimum and $250,000 fine
Case Number 25mj2386-JLB
Melissa Jennelle Cota Age: 33 Mexico
Gustavo Lara Age: 32 Mexico
Sergio Rojas-Fregoso Age: 31 Mexico
SUMMARY OF CHARGES
Transportation of Illegal Aliens – Title 8, U.S.C., Section 1324(a)(1)(A)(ii)
Maximum penalty: Ten years in prison and $500,000 fine
Deported Alien Found in the United States – Title 8, U.S.C., Section 1326
Maximum penalty: Two years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations – Marine Task Force
Homeland Security Investigations
U.S. Customs and Border Protection
United States Coast Guard
San Diego Lifeguard Service
San Diego County Medical Examiner’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Federal Jury Convicts Raleigh County Man of Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – After a one-day trial, a federal jury convicted Alfred Leslie Pittman, 36, of Harper Heights, on Monday, May 5, 2025, of being a felon in possession of a firearm.
Evidence at trial proved that on April 26, 2023, Pittman was a passenger in a vehicle stopped by Beckley Police Department officers in Beckley. During the traffic stop, officers found that Pittman possessed a Taurus G2C 9mm pistol with an extended magazine in the vehicle.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Pittman knew he was prohibited from possessing a firearm because of his prior felony conviction for robbery in the first degree in Raleigh County Circuit Court on June 2, 2015.
Pittman is scheduled to be sentenced on September 5, 2025, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a $250,000 fine.
“The defendant knew he had been convicted of a felony, robbery in the first degree, and was therefore prohibited from possessing a firearm. He is now being held accountable for his criminal conduct,” said Acting United States Attorney Lisa G. Johnston. “I commend the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley Police Department for their investigative work in this case. Assistant United States Attorneys Brian D. Parsons and Joshua Hanks and our trial team did an excellent job in this case and I commend them for securing the guilty verdict.”
Chief United States District Judge Frank W. Volk presided over the jury trial.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-169.
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Fairport man who used Roblox to attempt to communicate with minors for sex arrestedRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Tony Rodriguez, 40, of Fairport, NY, was arrested and charged by criminal complaint with enticement and possession of child pornography, which carry a minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that according to the complaint, on March 12, 2025, the leader of an online community group, which exposes child predators, reached out to the Fairport Police Department regarding a message from the Facebook account “Tony Rodrigo,” later identified as the defendant. According to the community member, Rodriguez was told that the person he was communicating with was an 11-year-old girl named Emiry. The complaint states that the conversation began as causal small talk, but quickly turned sexual, initiated by Rodriguez. Rodriguez sent lewd pictures and offered to meet Emiry to have sex. On March 12, 2025, Rodriguez arrived at a pre-determined location, the Fairport Library, to meet Emiry. Instead, the community member arrived and confronted Rodriguez about his explicit online conversations with an alleged 11-year-old. The confrontation prompted the police to be called by a concerned citizen. The community member told police that Rodriguez admitted to meeting Emiry for sex and acknowledged communicating online with other minors between 13 to 16 years old in a similar manner. Prior to police arriving, Rodriguez left the scene.
On April 15, 2025, the Monroe County Sheriff's Office responded to a residence located in the Town of Perinton for a report that a male named “Tony Rodrigo” was at the location to meet a 13-year-old for a sexual encounter. The report was filed by individual who oversees another online volunteer group on Facebook which exposes child predators. This individual poses as a 13-year-old girl. According to the individual, “Tony Rodrigo” reached out on Facebook to who he believed was a 13-year-old-girl. Rodriguez stated he wanted to meet up “"to have sex” with the minor. On April 15, 2025, Rodriguez showed up at the predetermined location and was confronted by the individual. Sheriff’s deputies located Rodriguez and detained him.
Rodriguez utilized Roblox, an online gaming platform, to connect with the alleged 11- and 13-year-old girls on Facebook.
A search of two cellular telephones seized from Rodriguez recovered approximately six images of child pornography.
In addition to Facebook, an Instagram account associated with Rodriguez was located, on which he appeared to be communication with a 13-year-old minor. Rodriguez was also active on the social media platform Reddit, specifically a subreddit community associated with teens.
Rodriguez made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was detained.
The complaint is a result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Fairport Police Department, under the direction of Chief Matthew Barnes.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Elementary Teacher Indicted in Austin for Alleged Possession of Child Sexual Abuse MaterialRead the Press Release
AUSTIN, Texas – A federal grand jury in Austin returned an indictment today charging an Austin man, who was employed as a fifth grade teacher in the city, with two counts related to his alleged receipt and possession of child pornography.
According to an affidavit filed in the court documents, Carl David Innmon, 50, allegedly downloaded multiple batches of downloads via BitTorrent between Dec. 29, 2024 and Jan. 15, 2025. The alleged downloads contained a total of 126 files that depict an image of a child engaging in sexual conduct or sexual performance. The children in three of the downloaded files, the affidavit alleges, include an infant and two girls between the ages of four and seven.
Based on the investigation, a search warrant was conducted on Innmon’s residence, leading to the seizure of a smartphone, a laptop and a portable hard drive. A forensic analysis of these items cumulatively revealed 365,797 files of Child Sexual Abuse Material.
Innmon is charged with one count of possession of child pornography and one count of receipt of child pornography. If convicted, he faces up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The affidavit also alleges that Innmon was in possession of artificial intelligence generated child pornography, and that his devices contained a large quantity of real images depicting students in a classroom. Some of those images were allegedly placed in an AI generator, de-clothing the students. With assistance from the Austin Independent School District and AISD Police, a Texas Department of Public Safety (TX DPS) Criminal Investigations Division (CID) Special Agent was able to positively identify the students depicted in the images and their ages. The children were allegedly identified as students of Innmon's.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
TX DPS CID is investigating the case.
Assistant U.S. Attorney Grant Sparks is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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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Durant Resident Sentenced to Thirty-Two Years for Second Degree MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kyle Hunter Laws Duffner, age 27, of Durant, Oklahoma, was sentenced to 384 months in prison for one count of Murder in Indian Country—Second Degree.
The charge arose from an investigation by the Durant Police Department and the Federal Bureau of Investigation.
On December 4, 2024, Duffner pleaded guilty to unlawfully killing a child with malice aforethought. According to investigators, on June 27, 2021, law enforcement responded to a 911 call of a non-responsive infant. The child was life-flighted for care but succumbed to injuries shortly after transfer. During treatment, medical professionals discovered signs of acute rib fractures, older rib fractures in various stages of healing, and a possible head injury. A post-mortem examination revealed a skull fracture symptomatic of blunt force impact in the early stages of healing, multiple contusions to the forehead, jaw, and chest, and rib fractures consistent with at least three events of blunt force trauma.
The crime occurred in Bryan County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Duffner will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant U.S. Attorney Nicole Paladino represented the United States.
Dixmont Woman Sentenced for Role in Penobscot and Aroostook County Drug Trafficking RingRead the Press Release
BANGOR, Maine: A Dixmont woman was sentenced on Monday in U.S. District Court in Bangor for her role in a northern Maine drug trafficking ring.
U.S. District Judge Stacey D. Neumann sentenced Sarah McBreairty, 36, to 60 months in prison to be followed by five years of supervised release. On March 24, 2023, McBreairty pleaded guilty to conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl and conspiring to make false statements to a federal firearms licensee.
According to court records, between January 2018 and December 2021, McBreairty and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. McBreairty regularly arranged to obtain quantities of the two drugs from an out-of-state supplier through phone calls and texts using coded language and then distributed those drugs through a network of dealers she supplied in Penobscot and Aroostook Counties. McBreairty used the proceeds of her distribution to purchase more drugs from her supplier. In addition, during the conspiracy, McBreairty and a co-defendant made false statements to an area federal firearms licensee in an attempt to obtain several firearms.
Twenty-two defendants have been charged in this and related cases for their part in a widespread northern Maine drug trafficking conspiracy. To date, 19 of the defendants have been sentenced while three await sentencing:
Sentenced:
- Andrew Adams (32, Aroostook County) – 10 years
- Matthew Catalano (38, Penobscot County) – 165 months
- Christopher Coty (44, Bangor) – 4 years
- Jason Cunrod (42, Caribou) – 48 months
- Blaine Footman (38, Bangor) – 5 years
- Nicole Footman (41, Holden) – 3 years
- Dwight Gary, Jr. (54, Medway) – Time served (approx. 5 months)
- Carol Gordon (53, Bangor) – Time served (approx. 31 months) plus 6 months of community confinement
- Thomas Hammond (26, Charleston) – 84 months
- Joshua Jerrell (30, Orrington) – Time served (approx. 36 months)
- James King (55, Caribou) – 165 months
- Shelby Loring (29, Bangor) – Time served (approx. 32 months)
- Danielle McBreairty (34, Glenburn) – 20 years
- John Miller (24, Caribou) – 54 months
- Aaron Rodgers (43, Bangor) – Time served (approx. 33 months)
- Wayne Smith (33, Bangor) – 85 months
- Joshua Young (48, Presque Isle) – Time served (approx. 2 months) plus 24 months home detention
- Tamara Davis (29, Fall River, MA) – Time Served (approx. 14 months)
- Sarah McBreairty (36, Dixmont) – 60 months
Awaiting sentencing:
- Daquan Corbett (30, Brockton, Mass.) – sentencing to be scheduled
- Daviston Jackson (28, Boston, Mass.) – sentencing to be scheduled
- James Valiante (42, Linneus) – sentencing scheduled for May 27, 2025
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. The U.S. Attorney’s Office also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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District Man Pleads Guilty to Fatal October Southeast ShootingRead the Press Release
WASHINGTON – Andre Clark, 34, of the District, pleaded guilty yesterday to second-degree murder while armed for the October 2024 shooting of Leonard Taylor, Jr., announced U.S. Attorney Edward R. Martin Jr. and Chief Pamela Smith of the Metropolitan Police Department.
Clark’s guilty plea, which is contingent upon the Court’s approval at sentencing, calls for a range of 15-to-20 years in prison, to be followed by supervised release. Superior Court Judge Todd E. Edelman accepted the factual basis for the plea and scheduled sentencing for July 11, 2025.
According to a proffer of facts submitted at the plea hearing, on the morning of Oct. 20, 2024, the defendant walked out of a building on the 1500 block of 19th St., SE and towards the victim, who was sitting in the driver’s seat of a gray sedan parked on that street. Clark walked up to the driver’s side of the car, leaned down towards the driver’s side window, and used his right hand to point a firearm at the victim. As the victim started to drive away, the defendant fired his gun at him, striking the victim in the back and killing him.
The defendant was located and arrested in Baltimore, Maryland, Dec. 19, 2024, and has been in custody since his arrest.
This case was investigated by officers, detectives, and other personnel of the Metropolitan Police Department.
This case is being prosecuted by Assistant U.S. Attorney Daniel Bromwich.
Crew of Fentanyl Dealers Indicted in ColoradoRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that a grand jury has returned an indictment charging Exor Omar Villanueva Raudales, a/k/a “Brian,” age 36, Alex Yubini Canaca Calix, age 32, Luis Fernando Banega Moncada, age 21, Alejandro Torres Ochoa, age 38, and Juan Carlos Sosa Villanueva, age 34, with possessing with intent to distribute fentanyl on different occasions between June 2024 and April 2025.
The indictment alleges a series of distinct episodes in which one or more of the defendants distributed fentanyl pills. Four involved Raudales, who worked with Calix, Moncada, and Villaneuva to execute fentanyl deals. Two involved Ochoa, who executed a deal by himself on one day and with Raudales and Villanueva on another. The deals involved substantial amounts of fentanyl, a dangerous Schedule II controlled substance.
Defendants Moncada, Ochoa, and Villanueva – all Honduran nationals without authorization to be in the United States – had initial appearances in federal court on April 29, 2025. All have since been detained pending trial after detention hearings in U.S. District Court. Raudales remains at large. Calix was unlawfully present and has previously been deported.
The investigation is being conducted by the Denver Field Office of the FBI, the Denver Field Office of the DEA, ICE Enforcement and Removal Operations, and IRS Criminal Investigation. The prosecution is being handled by the Transnational Organized Crime and Money Laundering Section of the United States Attorney’s Office.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Case Number: 25-cr-00131-CNS
Credit Suisse Services AG admits to conspiring with U.S. Taxpayers to hide assets and income in offshore accounts and admits that Credit Suisse breached its prior plea agreementRead the Press Release
ALEXANDRIA, Va. – Credit Suisse Services AG pled guilty and was sentenced for conspiring to hide more than $4 billion from the Internal Revenue Service (IRS) in at least 475 offshore accounts. The guilty plea by the Swiss corporation is the result of a years-long investigation by U.S. law enforcement to uncover financial fraud and abuse.
In addition to the plea, Credit Suisse Services AG entered into a non-prosecution agreement (NPA) with the Department of Justice, Tax Division, and U.S. Attorney’s Office for the Eastern District of Virginia in connection with U.S. Accounts booked at Credit Suisse AG Singapore. Under the NPA, Credit Suisse Services AG agreed to cooperate with the Department of Justice in ongoing investigations and to pay significant monetary penalties for maintaining accounts in Singapore on behalf of U.S. taxpayers who were using offshore accounts to evade U.S. taxes and reporting requirements.
According to the Plea Agreement, NPA, and documents filed in court, from Jan. 1, 2010, and continuing until at least July 2021, Credit Suisse AG, which has ultra-high-net-worth and high-net-worth individual clients around the globe, conspired with employees, U.S. customers, and others to willfully aid U.S. customers in concealing their ownership and control of assets and funds held at the bank. This enabled those U.S. customers to evade their U.S. tax obligations in several ways, including by opening and maintaining undeclared offshore accounts for U.S. taxpayers at Credit Suisse AG, and providing a variety of offshore private banking services that assisted U.S. taxpayers in the concealment of their assets and income from the IRS and allowed for their continued failure to file Reports of Foreign Bank and Financial Accounts. Among other fraudulent acts, bankers at Credit Suisse falsified records, processed fictitious donation paperwork, and serviced more than $1 billion in accounts without documentation of tax compliance. In doing so, Credit Suisse AG committed new crimes and breached its May 2014 plea agreement with the United States.
Between 2014 and June 2023, Credit Suisse AG Singapore held undeclared accounts for U.S. persons, which Credit Suisse AG Singapore knew or should have known were U.S., with total assets valued at over $2 billion. Credit Suisse AG Singapore failed to adequately identify the true beneficial owners of accounts and failed to conduct adequate inquiries about U.S. indicia in the accounts. In 2023, during the post-merger of UBS AG Singapore and Credit Suisse AG Singapore, UBS became aware of accounts held at Credit Suisse AG Singapore that appeared to be undeclared U.S. accounts. UBS froze some of the accounts, voluntarily disclosed information about those identified accounts to DOJ, and cooperated by undertaking an investigation into the identified accounts.
Under today’s resolutions, Credit Suisse Services AG and, by extension, UBS AG, is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The agreements provide no protections for any individuals. Pursuant to the guilty plea and the NPA, Credit Suisse Services AG will pay a total of $510,608,909 in penalties, restitution, forfeiture, and fines.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, Karen E. Kelly, Acting Deputy Assistant Attorney General for Criminal Matters for the Justice Department’s Tax Division, and Guy Ficco, Chief of IRS Criminal Investigation (IRS-CI) 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, is investigating the case. The Justice Department’s Office of International Affairs provided critical assistance in obtaining important evidence.
Assistant U.S. Attorney Kimberly M. Shartar for the Eastern District of Virginia and Senior Litigation Counsels Nanette L. Davis and Mark F. Daly and Trial Attorney Marissa R. Brodney of the Tax Division, are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Court Orders Florida Tax Return Preparer to Shut Down Tax Preparation BusinessRead the Press Release
Note: View permanent injunction here.
The U.S. District Court for the Southern District of Florida issued a permanent injunction today against Cooper City, Florida, tax return preparer Sunil Ramchandani and his business, SR Chandra Inc. doing business as AHS Income Tax Services. The court ordered the closure of AHS Income Tax Services and barred Ramchandani from preparing or assisting in preparing federal income tax returns for others or transferring his customer lists. Ramchandani agreed to the injunction against him and his business. AHS Income Tax Services had already agreed to entry of a preliminary injunction before the start of filing season.
The complaint alleged that Ramchandani prepared customers’ returns that fraudulently claimed false or inflated residential energy credits, false fuel tax credits, fictious business losses, and other false or inflated deductions and credits, including false education credits and fictitious child and dependent credits.
According to the complaint, the IRS estimated a tax loss of more than $10 million in 2022 and 2023 alone from returns prepared by Ramchandani and AHS Income Tax Services.
The Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid “ghost preparers” and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
California Resident Pleads Guilty to Cocaine ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Coachella, California, pleaded guilty in federal court to charges of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
Freddy Felix, 32, pleaded guilty to two counts before Senior United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the Court was advised that, from July 25, 2023, to August 30, 2023, Felix conspired to distribute and to possess with intent to distribute five kilograms or more of cocaine, a Schedule II controlled substance. Additionally, on August 30, 2023, Felix possessed with intent to distribute five kilograms or more of cocaine.
Judge Fischer scheduled sentencing for August 6, 2025. The law provides for a total maximum sentence of not less than 10 years in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the Court ordered that the defendant remain detained.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Felix.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
California Man Sentenced to 12 Years’ Imprisonment in Connection with $17M Medicare Fraud SchemesRead the Press Release
A California man was sentenced yesterday to 12 years in prison and three years of supervised release for his role in a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.
According to court documents, Petros Fichidzhyan, 44, of Granada Hills, schemed with others to bill Medicare for hospice services that were not medically necessary and never provided. Fichidzhyan and his co-schemers controlled hospice entities and used foreign nationals’ personal identifying information (PII) to conceal the scheme, using the PII to, among other things, open bank accounts, submit information to Medicare, and sign property leases. The defendant and his co-schemers also misappropriated the names and PII of several doctors, two of whom were deceased, to fraudulently bill Medicare for purported hospice services. Medicare paid the sham hospices nearly $16 million, of which Fichidzhyan received nearly $7 million, with more than $5.3 million laundered through a dozen shell and third-party bank accounts. Fichidzhyan also obtained more than $1 million in false claims paid to his home health care agency, which fraudulently used a doctor’s name and identifying information as having certified Medicare beneficiaries for home health care. When the doctor confronted Fichidzhyan about the fraud, Fichidzhyan attempted to cover up the scheme by paying the doctor $11,000.
Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering in February 2025. At sentencing, he was also ordered to pay $17,129,060 in restitution, and the court preliminarily ordered the forfeiture of a home bought with fraudulent proceeds. The government has seized $2,920,383 from bank accounts associated with the fraud. The sentence imposed today is the most recent step in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area.
“For years, the defendant, working with others, ran multiple sham hospice and home health care schemes, fraudulently billing Medicare over $17 million,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The defendant’s egregious scheme relied on layers of deception and sophisticated money laundering, and wasted millions in taxpayer money. With the help of our law enforcement partners, the Department of Justice is fully committed to stopping these criminal networks and protecting the public fisc.”
“Health care fraud is not a victimless crime. Defrauding the Medicare program not only wastes valuable taxpayer dollars, it causes significant harm to enrollees,” said Acting Special Agent in Charge Omar Pérez Aybar at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Los Angeles Regional Office. “HHS-OIG, in collaboration with our law enforcement partners, will continue to investigate and hold accountable those who defraud federal health care programs.”
"Mr. Fichidzhyan lined his pockets at the expense of the American taxpayer," said Akil Davis, the Assistant Director in charge of the FBI's Los Angeles Field Office. "The level of fraud and exploitation committed by the defendant is astounding and I'm proud of our investigators and prosecutors who were able to detect his schemes and hold him accountable."
The FBI and HHS-OIG are investigating the case.
Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Broken Bow Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jerry Wayne Shomo, aka Jerry Wayne Shomo, Jr., age 47, of Broken Bow, Oklahoma, entered a guilty plea to one count of Felon in Possession of Firearm, punishable by up to 15 years imprisonment and a $250,000.00 fine.
The Indictment charged Shomo with knowingly possessing one DSP Armory Model DSP-15, multi-caliber, semi-automatic rifle on December 9, 2024, after having been previously convicted of a crime punishable by more than one year imprisonment.
The charge arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma Highway Patrol.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Shomo will remain in the custody of the United States Marshals Service pending sentencing.
Special Assistant U.S. Attorney Olivia P. Staubus represented the United States.
Bradenton Man Sentenced to 10 Years in Federal Prison for Receiving and Possessing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody has sentenced Christopher Clark (53, Bradenton) to 10 years in federal prison for receiving and possessing child sexual abuse material. Clark entered a guilty plea on January 22, 2025.
According to court documents, the FBI executed a search warrant at Clark’s home in September 2024. During the search, the FBI seized approximately 45 electronic devices. A review of several of those devices showed that Clark had received and possessed thousands of photos and videos of child sexual abuse material.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Manatee County Sheriff’s Office, the Bradenton Police Department, and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Ross Roberts.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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.justice.gov/psc.
Boston Man Pleads Guilty to Managing Large-Scale Drug Trafficking ConspiracyRead the Press Release
CONCORD –A Boston man has pleaded guilty in federal court in Concord in connection with a large-scale drug trafficking operation that was distributing fentanyl and cocaine in the Manchester-area, Acting U.S. Attorney Jay McCormack announces.
Flemin Soto Baez, age 50, pleaded guilty to one count of conspiracy to distribute controlled substances, namely, fentanyl and cocaine. U.S. District Court Judge Samantha Elliott scheduled sentencing for August 13, 2025. The defendant was originally charged with conspiracy on April 26, 2023, along with 20 other defendants, in the matter United States v. Juan Ramon Soto Baez, et al. He is the 15th defendant in the conspiracy to plead guilty.
According to the plea agreement and statements made in court, the defendant was the leader of a Massachusetts-based drug trafficking organization that distributed large quantities of fentanyl and cocaine in New Hampshire, particularly Manchester, between September 2019 and April 2023. The organization was run like a business, operating “dispatch” telephone lines where customers could call in to order drugs. The defendant operated the dispatch line and coordinated purchases. He sent runners to meet customers to conduct hand-to-hand exchanges of drugs for money, usually in the runner’s vehicle. On 14 separate occasions between July 14, 2022 and March 2, 2023, the defendant sent a runner to deliver crack cocaine to drug customers in Manchester.
The charging statute provides a sentence of no greater than 20 years in prison, at least three (3) years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation and the Drug Enforcement Administration led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Aaron Gingrande is prosecuting the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (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). Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Bethlehem Man Who Burglarized Firearms Dealers and Stole More Than 150 Guns Sentenced to 40 Months in PrisonRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Ismael Terrero-Terrero, 22, of Bethlehem, Pennsylvania, was sentenced today by United States District Court Judge Timothy J. Savage to 40 months’ imprisonment and $26,798 in restitution for multiple burglaries in which he stole more than 150 guns from licensed firearms dealers.
The defendant was charged by indictment in January of 2024, and pleaded guilty this January to three counts of theft of firearms from a federal firearms licensee and one count of possession of a stolen firearm.
As detailed in court filings, on April 28, 2023, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was notified of a burglary at a Federal Firearms Licensee (FFL) in Easton, Pennsylvania. Surveillance video showed that, at approximately 2:40 a.m., the defendant used a pry bar to make entrance into the building and immediately began taking AK-style pistols and AR-style rifles from the wall. He then used the pry bar to break open three glass display cases that contained pistols, placed the guns into a bag, and exited the building with 29 stolen firearms.
In the early morning hours of June 29, 2023, law enforcement officers were dispatched to an FFL in Catasauqua, Pennsylvania, for a report of a security alarm activation. Surveillance video showed that at approximately 1:35 a.m., the defendant and another man forced entry into the building. They broke the firearm display cases with a metal tool, took handguns from the display case and put them into a backpack. The men then exited the business and fled the scene with 44 stolen firearms.
On August 11, 2023, at approximately 4:16 a.m., the Telford Police Department (TPD) in Telford, Pennsylvania, received a notification of a burglar alarm activation at an FFL in the borough. Approximately three minutes later, a TPD officer arrived at the location and observed a male with a duffle bag entering the passenger seat of a nearby vehicle, which immediately started to flee from the officer. The officer’s pursuit of the vehicle was terminated a short time later, consistent with TPD policy. Upon examination of the scene and review of video surveillance footage, investigators determined that the defendant and another man had forced entry into the FFL and smashed multiple display cases containing firearms. The men then loaded numerous firearms into a large bag and a rolling suitcase, leaving the store with 82 stolen firearms.
“This defendant committed three separate burglaries, stealing an astonishing 157 firearms,” said U.S. Attorney Metcalf. “These guns have now found their way into our communities and are being recovered in shootings and other crimes from Connecticut to the Caribbean. Terrero-Terrero was actively putting guns in criminals’ hands and the repercussions will continue, at society’s expense. Public safety demands that we prevent offenders from getting their hands on guns — and punish those providing a steady stream of illegal weapons.”
“Stolen guns are crime guns that endanger our communities,” said Eric DeGree, Special Agent in Charge of the ATF’s Philadelphia Field Division. “Ismael Terrero-Terrero burglarized three Pennsylvania gun shops, stealing more than 150 firearms connected to crimes up and down the East Coast and overseas. Working with the Montgomery County Detective Bureau, Pennsylvania State Police, local police departments, and U.S. Attorney’s Office, this far-reaching and dangerous criminal operation was ended, and the perpetrator is going to prison for years.”
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.
The case was investigated by the ATF and is being prosecuted by Assistant United States Attorney Maureen McCartney.
Allen Woman Sentenced to over 11 Years in Federal Prison for Conspiring to Distribute Methamphetamine in the Pine Ridge Reservation and in Rapid CityRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Judge Karen E. Schreier has sentenced an Allen, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance.
Misty Hornbeck, age 50, was sentenced on May 5, 2025, to 11 years and three months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Hornbeck was indicted by a federal grand jury in March 2024, and pleaded guilty on February 27, 2025.
Hornbeck’s conviction stemmed from the large-scale distribution of methamphetamine on the Pine Ridge Reservation and in Rapid City, South Dakota. Hornbeck, who resided in Colorado during the conspiracy, supplied methamphetamine to her codefendants through her sources in Colorado. Hornbeck’s codefendants then transported the methamphetamine into South Dakota. Once the methamphetamine was in South Dakota, it would be further distributed by multiple individuals, including Hornbeck’s co-defendants Nathan Tobacco-Clifford, Milo Shot With Arrow, and others. Between 500 grams and 1.5 kilograms of methamphetamine was distributed during the course of this criminal conspiracy.
This case was investigated by the FBI and the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Knox prosecuted the case.
Hornbeck was immediately remanded to the custody of the U.S. Marshals Service following sentencing.
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5 May 2025
Vermilion County Man Sentenced to Five and a Half Years in Prison for Counterfeiting and Violating Supervised ReleaseRead the Press Release
URBANA, Ill. – A Bismarck, Illinois, man, Jacob R. Kirkley, 48, was sentenced on May 2, 2025, to four years in prison for his second federal counterfeiting conviction, as well as an additional 18 months in prison for violating his federal supervised release, which was imposed following his first counterfeiting conviction. When Kirkley completes his combined five-and-a-half year sentence, he will be required to serve three years of federal supervised release.
The sentences followed a trial last December in Urbana where a federal jury convicted Kirkley of manufacturing, selling, and possessing counterfeited United States currency. During two days of trial testimony, the government presented evidence to establish that, on December 7, 2023, Kirkley sold an undercover officer with the Illinois State Police $1000 of counterfeited U.S. currency that he had made for $250. On December 13, 2023, and January 8, 2024, Kirkley sold the same undercover officer another $1000 and $5000 in counterfeit U.S. currency that he had made, respectively. On January 11, 2024, agents of the U.S. States Secret Service and Vermilion County Metropolitan Enforcement Group executed a federal search warrant at Kirkley’s residence in Bismarck and recovered additional counterfeit currency, as well as various items used to counterfeit the currency.
At the time Kirkley committed those offenses, he was on federal supervised release for a previous federal counterfeiting conviction. In 2022, Kirkley was convicted of one count of manufacturing U.S. currency and two counts of passing U.S. currency after a 2020 incident where a Vermilion County Sheriff’s Deputy found over $20,000 of counterfeit U.S. currency in his truck and then learned Kirkley had passed counterfeit currency at Carnaghi’s Towing and McDonald’s in Danville, Illinois, and Dollar General in Tilton, Illinois. At the time, the Deputy also found over $20,000 counterfeit U.S. currency, plus four printers, a paper cutter, and numerous counterfeit-making implements in Kirkley’s hotel room at the Budget Inn in Danville. Kirkley served 27 months in federal prison for those offenses and was serving a three-year term of federal supervised release at the time that he committed his latest counterfeiting offenses. Kirkley was released from federal prison in May 2023, six months before committing these offenses.
At the time of sentencing, the government presented evidence that Kirkley violated his federal supervised release not only by committing a new counterfeiting offense, but also by testing positive for methamphetamine use on eight separate occasions. The government also presented evidence that Kirkley had told the undercover officer during a covertly recorded conversation that “my name’s a red flag for any kind of . . . counterfeit material at all,” that he learned how to use “Bible paper” to counterfeit currency when he was in federal prison the first time, and that he believed he would “be screwed” and would have “the book” thrown at him if he were caught counterfeiting again.
Also at the hearing, U.S. District Judge Colin S. Bruce found that Kirkley had not accepted responsibility for his criminal conduct. Judge Bruce followed the government’s recommendation to impose a sentence above the range recommended by the advisory United States Sentencing Guidelines because Judge Bruce was troubled by Kirkley committing his offense while on federal supervised release for the same crime and so soon after being released from federal prison.
The maximum statutory penalties for each of Kirkley’s five counts of conviction are up to twenty years of imprisonment and up to a $250,000 fine. The maximum statutory penalty for Kirkley’s violation of his conditions of supervised release is up to two years of imprisonment.
“Counterfeiting offenses undermine the integrity and stability of our financial system and leave hardworking business owners who receive these false payments in the lurch,” said Acting U.S. Attorney for the Central District of Illinois Gregory M. Gilmore. “Repeat offenses are particularly problematic. We are grateful to our federal and local law enforcement partners for their dedicated investigative work.”
“Protecting the nation’s currency and financial infrastructure have long been key missions for the U.S. Secret Service, along with safeguarding our country’s leaders,” said Resident Agent in Charge Michael Kurzeja, of the U.S. Secret Service Springfield Resident Office. “The Secret Service goes to extraordinary lengths to detect, investigate, and stop those who manufacture and try to profit from counterfeit currency, and attempt to weaken the nation’s financial infrastructure. I want to thank the U.S. Attorney’s Office of the Central District of Illinois, as well as all our local partners who helped in this case.”
“The impact of counterfeiting can be widespread with the potential of hurting both businesses and individuals as false currency circulates,” said Illinois State Police Director Brendan F. Kelly. “ISP will continue to work with our law enforcement partners at all levels to help protect the integrity of our U.S. currency and hold those who break the law accountable.”
The case investigation was conducted by the Springfield Division of the United States Secret Service, Vermilion County Metropolitan Enforcement Group, and Illinois State Police. Supervisory Assistant United States Attorney Eugene L. Miller represented the government at trial.
Utah County Man Sentenced to Prison for Affinity Fraud Scheme that Scammed over $5M from Alpha Influence InvestorsRead the Press Release
SALT LAKE CITY, Utah – Kole Glen Brimhall, 27, of Orem, Utah, was sentenced today to 12 months’ and one day imprisonment after he defrauded approximately 135 investors through the sale of a fraudulent investment offered through Alpha Influence, LLC, a registered Utah company. Brimhall was also sentenced to three years’ supervised release, and ordered to pay a forfeiture money judgement in the amount of $1,097,709.82 and $5,003,400 in restitution to the victims.
The sentence, imposed by U.S. District Court Judge David Sam, comes after Brimhall pleaded guilty on November 18, 2024, to fraud in the offer and sale of securities. See prior press release: Utah Sales Agent Admits to Defrauding Clients of More than $4.9M.
According to court documents and statements made at the defendant’s change of plea and sentencing hearings, from March 2020 to June 2022, Brimhall sold fraudulent investment security contracts for Alpha Influence. As part of the scheme, Brimhall and others aggressively promoted, primarily through social media, that purchasing the Alpha Influence investment would generate life-changing passive income for investors in a very short amount of time exclusively through the efforts of the “Alpha Influence Team.”As team lead within the Alpha Influence sales structure, Brimhall was responsible for the sale of approximately 135 Alpha investments to individual investors and received $1,097,709.82 in verified commissions for those fraudulent sales.
“Brimhall’s participation in defrauding investors not only left investors in financial devastation, but with a loss of trust that can have a lifelong impact in their personal and professional life,” said Acting U.S. Attorney Felice John Viti of the U.S. Attorney’s Office for the District of Utah. “It is our hope that by prosecuting these crimes, we will deter others from participating in affinity fraud schemes in our communities.”
"This $20 million fraud, driven by bold displays and false promises shared on social media, caused significant harm to over 500 Utahns," says Executive Director of the Utah Department of Commerce, Margaret Busse. "Today’s sentence sends a clear message: such predatory actions will not be tolerated, and we stand firmly committed to protecting Utah investors. Fraudulent activities like this erode public trust in legitimate investments and undermine the very foundations of our financial system. I'm proud of the hard work and collaboration between our Utah Division of Securities, the U.S. Attorney General's Office, and the FBI that went into bringing these individuals to justice."
"Many of the victims in this case are members of the working class who have the least margin for loss. Yet the defendant shamelessly used their hard-earned money on fancy cars and extravagant vacations," said Special Agent in Charge Mehtab Syed of the Salt Lake City FBI. "While fraud schemes are not violent in nature, they can be financially and emotionally devastating. The FBI is dedicated to holding accountable those who profit through deception."
The case was investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Mark E. Woolf, Jennifer E. Gully, and Brian Williams of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
U.S. Department of Justice Announces Civil Rights Investigation into the Consideration of Race in Prosecutorial Decision making by Minnesota’s Hennepin CountyRead the Press Release
Under our Constitution, no government may distribute different burdens or benefits on the basis of race without facing strict judicial scrutiny. This is especially true in the criminal justice system. Any attempt to subject Americans to different punishments or penalties based on race violates the Constitution and a number of federal civil rights laws.
Today, the U.S. Department of Justice’s Civil Rights Division announced an investigation into the Hennepin County Attorney’s Office, led by County Attorney Mary Moriarty, to determine whether the Office is depriving its residents of their federal rights to be free from race-based prosecutorial decision making. According to public reporting, the Hennepin County Attorney recently adopted a policy requiring her prosecutors to consider “racial identity” during prosecutorial decision making, including when negotiating plea agreements that influence the burdens that criminal defendants face, and the benefits that they receive, in criminal prosecutions. The investigation announced today will involve a comprehensive review of all relevant Hennepin County Attorney’s Offices policies and practices that may involve illegal consideration of race.
“As a longtime prosecutor, I firmly believe in the paramount importance of a colorblind criminal justice system,” said Attorney General Pamela Bondi. “This Department of Justice will avail itself of every tool at its disposal to protect all Americans from illegal DEI discrimination.”
“It is unconstitutional and morally abhorrent to make different prosecutorial decisions based on a person’s race,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Civil Rights Division will not tolerate any attempt to do so.”
Two Midlands Men Plead Guilty to Child Sex TraffickingRead the Press Release
COLUMBIA, S.C. — Antonio Marquis Nicholson, 33, of West Columbia, and Terrell Counts, 33, of Columbia, have pleaded guilty to human trafficking conspiracy and aiding and abetting the coercion and enticement of a minor.
According to evidence presented in court, from at least December 2022 through August 2023, Nicholson and Counts worked together with co-defendants Monesha Gary and Rebecca Perry to exploit three minor victims to engage in the commercial sex trade, despite several members of the conspiracy knowing they were minors.
The investigation revealed that Nicholson was the leader of this operation. Nicholson targeted and exploited minor victims to engage in commercial sex. Nicholson recruited one minor victim who was a runaway, drove her across state lines, and introduced her to commercial sex work. Nicholson and Counts recruited two additional minor victims near a local high school and exploited the minors on days they were not in school. Nicholson provided the minor victims with lingerie, took photographs of them, posted advertisements online for commercial sex on the internet, instructed them to lie about their age, and confiscated between 50% and 100% of proceeds from commercial sex acts. The advertisements were posted advertising commercial sex in the Midlands, the Upstate, Myrtle Beach and Fayetteville, North Carolina.
Evidence presented in court revealed that Nicholson used force, violence and weapons to maintain control and keep the minor victims involved. Nicholson pointed a firearm at one of the exploited victims, directed assaults, and threatened to harm the minor victims if they left.
Counts facilitated the conspiracy and assisted Nicholson, including running the operation when Nicholson was not around. Counts knew how photographs were taken, and advertisements were posted, how money was transferred from customers to the conspiracy, how proceeds were divided, and how the conspiracy responded to customers. Counts was present during commercial sex acts, present when the minor victims were photographed, and collected proceeds from commercial sex acts. He provided the minor victims with condoms, transportation to and from hotels, and watched for law enforcement at hotels during commercial sex acts.
Nicholson, and Counts face a penalty of up to life in prison. They also face a fine of up to $250,000 and lifetime supervision to follow a term of imprisonment and mandatory sex offender registry requirements. Pursuant to plea agreements, Nicholson and Counts agreed to pay victims restitution.
United States District Judge Sherri A. Lydon accepted the guilty pleas and will sentence the Nicholson and Counts after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. Gary and Perry pleaded guilty previously and are awaiting sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The case was investigated by Homeland Security Investigations, the South Carolina Law Enforcement Division, and the South Carolina Attorney General’s Office, with assistance from the Columbia Police Department, Richland County Sheriff’s Department, West Columbia Police Department, Darlington County Sheriff’s Office, Spartanburg County Sheriff’s Office, Horry County Sheriff’s Office, Myrtle Beach Police Department, and Jefferson County, Alabama Sheriff's Office. Assistant U.S. Attorneys Elliott B. Daniels and Ariyana N. Gore are prosecuting the case.
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Two Men Sentenced for Roles in Straw Purchase of a FirearmRead the Press Release
CHARLESTON, S.C. — Joshua Paul Stewart Turner, 25, of Summerville, and Noah Olen Fowler, 26, of Moncks Corner, have each been sentenced for their roles in a conspiracy to straw-purchase a firearm.
Evidence obtained in the investigation revealed that Fowler, knowing Turner was prohibited from possessing and/or purchasing a firearm, purchased a firearm for Turner. During the purchase of the firearm, Fowler false certified on the ATF Form 4473 that he was purchasing the firearm for himself. Evidence also revealed that Turner sent Fowler information on which firearm to purchase and, further, paid him for the firearm via CashApp. When Fowler purchased the firearm for Turner he was employed as a correctional officer at the Berkeley County Detention Center.
“Straw purchases undermine our efforts to keep firearms out of the hands of those legally prohibited from possessing them,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “We’ll continue to work with our law enforcement partners to prosecute individuals who attempt to circumnavigate the proper procedure to purchase firearms.”
“Straw purchasing is a dangerous tactic that circumvents our laws and puts guns in the hands of prohibited individuals,” said ATF Special Agent in Charge Alicia Jones. “Whether you are the prohibited individual in possession of a firearm or the individual who lied to supply that firearm, both are considered threats to public safety and both face serious consequences.”
“Weapons in the hands of those prohibited from possessing them are a direct threat to public,” said Reid Davis, acting Special Agent in Charge of the FBI Columbia field office. “These sentences underscore the serious consequences of violating federal firearms laws and send a clear message: the FBI and our law enforcement partners are committed to ensuring those who violate these laws are held accountable.”
United States District Bruce H. Hendricks sentenced Turner to 20 months' imprisonment, to be followed by a three-year term of court-ordered supervision. United States District Bruce H. Hendricks sentenced Fowler to a time-served sentence, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI Columbia field office, and the Berkeley County Sheriff's Office. Assistant U.S. Attorney Amy Bower is prosecuting the case.
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The Justice Department announces First Amendment investigation into Washington State’s new anti-Catholic law, Senate Bill 5375Read the Press Release
The Justice Department today announced it has opened a civil rights investigation into the development and passage of Washington State Senate Bill 5375, signed into law on May 2, 2025, by Governor Bob Ferguson, which appears on its face to violate the First Amendment.
Washington State’s new law adds “members of the clergy” to a list of other professionals who are required to report information received in a confessional setting relating to child abuse or neglect to law enforcement or other state authorities, with no exception for the absolute seal of confidentiality that applies to Catholic Priests.
Furthermore, the State of Washington’s new law singles out “members of the clergy” as the only “supervisors” who may not rely on applicable legal privileges, including religious confessions, as a defense to mandatory reporting.
The Civil Rights Division will investigate the apparent conflict between Washington State’s new law with the free exercise of religion under the First Amendment, a cornerstone of the United States Constitution.
“SB 5375 demands that Catholic Priests violate their deeply held faith in order to obey the law, a violation of the Constitution and a breach of the free exercise of religion cannot stand under our Constitutional system of government,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Worse, the law appears to single out clergy as not entitled to assert applicable privileges, as compared to other reporting professionals. We take this matter very seriously and look forward to Washington State’s cooperation with our investigation.”
Texas Man Sentenced to Serve More Than 17 Years in Federal Prison after Traveling to Oklahoma to Engage in Sexual Acts with a MinorRead the Press Release
OKLAHOMA CITY – BRYAN DEVIN CRUZ, 25, of Texas, has been sentenced to serve 210 months in federal prison for interstate travel with intent to engage in a sexual act with a minor, announced U.S. Attorney Robert J. Troester.
Public record reflects that, in April 2024, an officer with the Moore Police Department (MPD) was dispatched to a home on reports of a stranger peeking into the window of a 13-year-old girl. MPD then deployed a thermal imaging drone to survey the area and located the suspect, later identified as Cruz, moving away from the property. Cruz was arrested shortly after. The minor’s parents consented to the search of a laptop used by the teenager. Investigators learned the teen and Cruz met online through an online application, and that Cruz told the minor he was a high school student and claimed to be 17 years old. Eventually, Cruz expressed interest in meeting the minor, and traveled from Dallas, Texas, to the minor’s residence on April 5, 2024, with the purpose of engaging in illicit activity.
On May 7, 2024, a federal Grand Jury returned a two-count Indictment against Cruz, charging him with coercion and enticement of a minor and interstate travel with intent to engage in a sexual act with a minor. On September 12, 2024, Cruz pleaded guilty to Count 2 of the Indictment, and admitted he traveled from Dallas, Texas, to Moore, Oklahoma, for the purpose of engaging in illicit sexual conduct with a minor.
At the sentencing hearing on May 1, 2025, U.S. District Judge Patrick R. Wyrick sentenced Cruz to serve 210 months in federal prison, followed by five years of supervised release. In announcing his sentence, Judge Wyrick noted the need to protect the public from further crime and the nature and circumstances of the offense, indicating that Cruz’s conduct was pervasive, rather than isolated.
This case is the result of an investigation by Homeland Security Investigations and the Moore Police Department. Assistant U.S. Attorney Tiffany Edgmon prosecuted the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
Reference is made to public filings for additional information.
Texas Man Sentenced for Federal Controlled Substances Act ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – SAUL MACEDO-RODRIGUEZ (“MACEDO-RODRIGUEZ”), age 38, a resident of Texas, was sentenced on April 30, 2025, after previously pleading guilty to conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine, and possession with intent to distribute five kilograms or more of cocaine. MACEDO-RODRIGUEZ was sentenced to one hundred twenty (120) months imprisonment, three (3) years of supervised release, and a $200 mandatory special assessment fee.
According to court documents, MACEDO-RODRIGUEZ and other co-conspirators distributed multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
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St. Louis Chop Shop Operator Pleads GuiltyRead the Press Release
ST. LOUIS – A man on Monday admitted running a “chop shop” that aided car thieves connected to a local gang.
Jorge Alberto Luviano-Martinez, 41, pleaded guilty in U.S. District Court in St. Louis to one count of operating a chop shop. As part of his plea, he admitted running a chop shop in the 2900 block of Cass Avenue in St. Louis. Members of a local gang, “Big 5,” discussed obtaining electronic keys for stolen vehicles from Luviano-Martinez and switching vehicle identification numbers (VINs) on stolen vehicles. Investigators conducted a court-approved search of the shop on June 10, 2024, finding eight stolen vehicles. One vehicle had its VIN replaced with a new VIN and another vehicle had a VIN removed.
Before the search warrant was served, investigators saw Luviano-Martinez leaving the property in a stolen Jeep. He refused to stop for police, instead leading officers on a chase that lasted about 15 minutes. After driving down a dead end street, Luviano-Martinez jumped out of the Jeep and over a fence, but was arrested.
“Our investigation shut down two chop shops, disrupting a scheme in which gang members were able to easily profit from vehicle thefts,” said Acting Special Agent in Charge Chris Crocker of the FBI St. Louis Division. “The impact should help stem the flow of rising vehicle thefts across the region.”
Luviano-Martinez, also known as “Charlie Cruz,” is scheduled to be sentenced in August. The charge carries a penalty of up to 15 years in prison, a fine of $250,000 or both prison and a fine.
The FBI, the St. Louis Metropolitan Police Department, the St. Louis County Police Department, and Immigration and Customs Enforcement’s Homeland Security Investigations the case. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
The investigation was conducted by the St. Louis Gateway Strike Force, which is part of the Organized Crime Drug Enforcement Task Force and includes members of federal, state and local law enforcement agencies. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. The OCDETF strike forces are permanent, multi-agency, prosecutor-led teams that conduct intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Shooter Who Injured Stranger on a Metro Bus in March 2025 Pleads GuiltyRead the Press Release
WASHINGTON – Javarry Peaks, 19, of the District, pleaded guilty Friday May 2nd, to the March 2025 shooting of a stranger while inside of a Washington Metropolitan Area Transit Authority bus that was traveling along the V2 route, announced U.S. Attorney Edward R. Martin Jr. and Chief Michael Anzallo of the Metro Transit Police Department.
Peaks pleaded guilty in the Superior Court to aggravated assault while armed and possession of a firearm during a crime of violence. Sentencing is scheduled for July 3, 2025, before the Honorable Rainey Brandt. Peaks faces a mandatory minimum of five years in prison.
According to the government’s evidence, on March 8, 2025, Peaks and the victim both boarded a WMATA bus at the Anacostia metro station at approximately 9:30 p.m. Multiple other, unidentified people were also on the bus at the time. While the bus was driving along the V2 route, the victim began talking to Peaks while they were seated across from each other. When the defendant stood up to walk, the victim momentarily blocked him from proceeding. After a few seconds, the victim walked toward the front of the bus where the defendant was standing. Peaks and the victim then continued to move around the bus for the next several minutes. At 9:45 p.m., the victim attempted to push the defendant off the bus, at which point the defendant briefly exited the bus before boarding again and walking past the victim toward the back of the bus. Within approximately a minute, at 9:46 p.m., while the defendant was standing at the front of the bus near the bus operator, and the victim was behind him in the middle of the bus, the defendant asked the bus operator if he could get off. As soon as the bus operator opened the doors, the defendant reached into his left jacket pocket, spun around, and shot the victim, who was approximately two feet away, one time in the chest. The defendant then ran off the bus and away from the area.
Peaks was arrested March 25, 2025, and has been in custody ever since.
This case was investigated by the Metro Transit Police Department and is being prosecuted by Assistant U.S. Attorney Matthew Goldstein.
This enforcement action is part of President Donald J. Trump’s ‘Make DC Safe and Beautiful Again’ initiative
Sequoyah County Resident Pleads Guilty to Federal Firearm ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Charles Riddle, age 35, of Muldrow, Oklahoma, entered a guilty plea to one count of Felon in Possession of Ammunition and one count of Felon in Possession of a Firearm and Ammunition, each punishable by up to 15 years imprisonment and a $250,000.00 fine.
The indictment alleged that on January 6, 2025, Riddle knowingly possessed one round of .45ACP caliber ammunition, 18 rounds of .380ACP caliber ammunition, and one round of .22 caliber ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The Indictment further alleged that between January 17, 2024, and August 2024, Riddle knowingly possessed one .22 caliber pump action rifle, one 12-gauge pump action shotgun, one 6.5 Creedmoor caliber bolt action rifle, and 15 rounds of 6.5 Creedmoor caliber ammunition after having been previously convicted of a crime punishable by more than one year imprisonment.
The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sequoyah County Sheriff’s Office.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Riddle was remanded into the custody of the United States Marshals Service pending sentencing.Assistant U.S. Attorney Lewis M. Reagan represented the United States.
San Jose AI Solutions Company Agrees to Pay $1.5 Million to Resolve Allegations That It Improperly Obtained Federal Grant FundsRead the Press Release
SAN FRANCISCO – Vimaan Robotics, Inc. (Vimaan), a San Jose-based company that develops computer vision and AI warehouse management solutions, has agreed to pay $1.5 million to resolve allegations that it violated the False Claims Act by improperly accepting and drawing down funds from a grant award that it was ineligible to receive.
The settlement relates to a Small Business Innovation Research (SBIR) Phase II grant that Vimaan obtained from the National Science Foundation (NSF). The terms and conditions of the SBIR grant preclude companies that are majority-owned by one or more venture capital operating companies from applying for or receiving such an award. The settlement resolves allegations by the United States that at the time Vimaan received the award on April 16, 2020, Vimaan failed to disclose that it had become majority-owned by one or more venture capital companies one month earlier, making it ineligible for the award. Between June 2020 and August 2022, the United States contends, Vimaan submitted 14 separate requests to NSF for disbursement of the award funds and falsely certified its eligibility to receive the award funds in each of these payment requests.
“Federal small business research grants awarded by NSF are designed to support and foster innovative research by small businesses, not to provide taxpayer funding for businesses primarily owned by venture capital firms,” said Acting United States Attorney Patrick D. Robbins. “When companies evade program restrictions and obtain grants even though they are not eligible, this office will vigorously enforce the False Claims Act to ensure that federal dollars go to proper recipients.”
“The SBIR program is a valuable tool in advancing NSF’s mission to promote the progress of science by increasing opportunities for small businesses to undertake cutting-edge scientific research. Entities that misrepresent their eligibility in order to obtain government funding undermine the integrity and effectiveness of the program. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds and I commend the U.S. Attorney’s Office for its strong support in this effort,” said Megan E. Wallace, NSF’s Acting Inspector General.
Assistant U.S. Attorney Savith Iyengar handled this matter for the government. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California and NSF-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating fraud in federal grants. 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 involving NSF can be reported to NSF’s Office of Inspector General at https://oig.nsf.gov/contact/hotline.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Vimaan Settlement Agreement
Restaurant Chain to Pay $7.8 Million for Misrepresenting Eligibility for Pandemic-Relief FundsRead the Press Release
ALBANY, NEW YORK – CoreLife Eatery, LLC, which operates restaurants throughout New York, Pennsylvania, Ohio, Illinois, and Kentucky, will pay $7,809,373 to resolve allegations that it violated the False Claims Act by falsely certifying its eligibility for a Restaurant Revitalization Fund (RRF) grant when it knew or should have known that it operated too many locations to qualify.
“The Restaurant Revitalization Fund was created to support certain small businesses facing the economic hardships of the COVID-19 pandemic,” said United States Attorney John A. Sarcone III. “By submitting false information about its size to obtain a grant, CoreLife not only diverted funds from eligible recipients but also eroded public trust in critical relief efforts. Our office remains committed to enforcing the False Claims Act and holding accountable those who misrepresent their eligibility for federal funding.”
Congress enacted the American Rescue Plan Act in March 2021, as a continuation of the federal government’s efforts to provide relief to American individuals and businesses suffering the economic and public health effects of the pandemic. The Act allocated $28.6 billion to the RRF, which allowed the United States Small Business Administration (SBA) to award grants to qualifying restaurants and other eligible entities based on pandemic-related revenue losses. Under the program, any restaurant that—together with its affiliated businesses—owned or operated more than 20 locations as of March 13, 2020, was ineligible for RRF funding.
As part of the settlement agreement, CoreLife admittedthat it and its affiliates owned and operated 29 restaurant locations as of March 13, 2020, and therefore it was ineligible for an RRF grant. Nevertheless, in May 2021, CoreLife’s managing member submitted an RRF application on the company’s behalf. The application specifically asked whether the applicant owned or operated more than 20 locations as of the eligibility date, to which CoreLife’s representative falsely responded “no.” That same question warned that applicants answering “yes” would not be eligible. Later in the application, the managing member also initialed next to the statement: “The Applicant, together with its affiliates, does not own or operate more than 20 locations.”
“Those who violate the False Claims Act by fraudulently receiving and retaining SBA program funding will be held accountable,” said SBA Office of Inspector General’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “This settlement demonstrates that wrongfully obtaining taxpayer dollars will not go unnoticed. Violators will be identified and pursued. I want to thank the Department of Justice for its support and dedication to pursuing justice in this case.”
This matter arose from a qui tam complaint filed in the United States District Court for the Northern District of New York. The False Claims Act allows private individuals to file suit on behalf of the United States for false claims and share in any recovery. Under the settlement agreement, the relator will receive $1,171,405.96. The settlement is captioned United States ex rel. Howitt v. CoreLife Eatery, LLC, et al., No. 3:24-cv-0263 (N.D.N.Y.).
The investigation and resolution of this matter were the result of a coordinated effort between the United States Attorney’s Office for the Northern District of New York, SBA Office of Inspector General, and SBA Office of General Counsel. The United States was represented by Assistant United States Attorneys Adam J. Katz and Christopher R. Moran, and Department of Justice Trial Attorney Samuel Robins.
corelife_settlement_agreement_fully_executed_5.5.2025_0.pdfRepeat Illegal Alien Border Crossers from Honduras Indicted in MiamiRead the Press Release
MIAMI – Two serial illegal border crossers from Honduras have been charged by South Florida federal grand jurors with Illegal Reentry After Removal, in violation of 8 U.S.C. 1326.
According to the indictment in case number 25-cr-20192, this is at least the fifth time Marvin Wilton Max Ayala (Max Ayala), an alien from Honduras, has unlawfully entered the United States. He was encountered in South Florida on April 1, after having entered the country illegally, without inspection, admission, or parole by an immigration officer. It was not Max Ayala’s first brush with immigration: The Honduran national was previously removed from the United States on November 21, 2012, April 6, 2015, May 4, 2020, and August 5, 2021.
According to the indictment in case number 25-cr-20186, this is at least the fourth time Brayan Josue Matute-Lobo (Matute-Lobo), also an alien from Honduras, has unlawfully entered the United States. He was encountered in South Florida on March 8, after having entered the country illegally, without inspection, admission, or parole by an immigration officer. It was not Matute-Lobo’s first brush with immigration: This Honduran national was previously removed from the United States on February 12, 2016, April 21, 2016, and December 22, 2016.
Both defendants will be held at the Federal Detention (FDC) Miami pending resolution of their criminal cases.
U.S. Attorney Hayden O’Byrne of the Southern District of Florida and acting Field Office Director Juan Agudelo of the U.S. Immigration and Customs Enforcement, Enforcement Removal Operations (ICE-ERO) Prosecutions Unit Miami announced the charges.
ICE-ERO investigated the cases. Special Assistant United States Attorney Melissa Roca Shaw is prosecuting them
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 https://www.justice.gov/usao-sdfl.
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 25-cr-20186.
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Registered Sex Offender Charged with Sending Obscenity to A Massachusetts MinorRead the Press Release
Jay Clayton, the United States Attorney for the Southern District of New York, and James Crowley, the Acting Special Agent in Charge of the Boston Field Division of the Federal Bureau of Investigation (“FBI”), announced today the arrest of DAVID FERNANDES III. FERNANDES is charged with sending obscenity to a minor and being a registered sex offender when he sent obscenity to a minor. FERNANDES was arrested Thursday, May 1, and presented Friday, May 2, before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.
U.S. Attorney Jay Clayton said: “Allegedly, David Fernandes III, a registered sex offender, was not deterred by his previous involvement with the criminal justice system. This case underlines the urgent need for law enforcement to continue its efforts to protect children. The women and men of the Southern District and the FBI will use every tool available to investigate and prosecute those who sexually exploit children.”
FBI Acting Special Agent in Charge James Crowley said: “Anyone willing to sexually exploit children deserves to feel the full force of the law. The FBI has arrested David Fernandes, a registered sex offender, for sending sexually explicit material to an 11-year-old child in Massachusetts. Each time we’re able to step in and protect a child from further sexual exploitation, it’s a good day.”
As alleged in the Complaint filed on April 29, 2025, in White Plains federal court and statements made in court[1]:
On or about October 8, 2024, FERNANDES knowingly transmitted to an 11-year-old an obscene photo of an adult male hand holding a penis. At the time FERNANDES engaged in this felony offense involving a child, he was required to register as a sex offender.
On March 19, 2019, FERNANDES was convicted in New York state of Disseminating Indecent Material to a Minor, for which he received a sentence of five years’ probation. He completed this sentence on or about September 12, 2024.
On or about October 11, 2024, the mother of an 11-year-old child (“Victim-1”) reported to the Holden Police Department, in Holden, Massachusetts, that she had discovered sexually explicit images and communications on Victim-1’s phone with a phone number ending in 4245 (the “4245-Phone”). She also reported that her daughter had advised her that her daughter’s 12-year-old friend (“Victim-2”) had been in communication with the user of the 4245-Phone.
A forensic review of Victim-1’s phone revealed over 4000 messages exchanged between Victim-1’s phone and the 4245-Phone between October 4, 2024, and October 8, 2024. In the messages, the user of the 4245-Phone identified himself as a 26-year-old man and transmitted sexually explicit videos and photos of an adult man to Victim-1’s phone. At approximately 4:41 a.m. on October 4, 2024, the 4245-Phone transmitted a video to Victim-1’s phone revealing an adult holding an erect penis, masturbating and ejaculating. At approximately 3:58 a.m. on October 8, 2024, the 4245-Phone texted, “I wanna feel u,” “Like genuinely feel inside u” and “I wanna be all the way inside you.” At approximately 4:00 a.m. on October 8, 2024, the 4245-Phone transmitted a photo of a male hand holding an erect penis. Shortly thereafter, the 4245-Phone texted, "Imagine that inside u."
Victim-1 advised law enforcement that she first communicated with the 4245-Phone on or about October 4, 2024. Victim-2 advised law enforcement that she began communicating with the user of the 4245-Phone, who identified himself to her as “David,” in approximately September 2024 and communicated with him on Snapchat, Roblox, and through video chats on Google Meet. Victim-2 advised that “David” requested sexually explicit pictures and videos of Victim-2 and that she transmitted them to him, mostly via Snapchat. Victim-2 provided “David” with Victim-1’s phone number so that she and David could message one another.
Anyone who may have encountered FERNANDES, who used the Snapchat user names “tazjazz,” “diamondboy24k,” “itsmagikyouknow,” and “retrovxrse, or whose child may have had any communications with FERNANDES, is asked to contact the FBI at 1-800-CALL-FBI (225-5324).
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FERNANDES, 27, of Lagrangeville, New York, is charged with one count off transferring obscene material to a minor, which carries a maximum sentence of 10 years in prison, and one count of committing the offense while being required to register as a sex offender, which carries a mandatory consecutive sentence of 10 years in prison.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the efforts of the FBI, including the FBI New York Hudson Valley Safe Streets Task Force and FBI Boston; the Holden Police Department; the U.S. Attorney’s Office for the District of Massachusetts; the Dutchess County Sheriff’s Office; and the Town of Poughkeepsie Police Department in connection with this investigation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Marcia S. Cohen is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
u.s._v._fernandes_complaint.pdf
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Prince George’s County Man Faces Federal Indictment for Sexual Exploitation of a MinorRead the Press Release
Greenbelt, Maryland – A federal grand jury has indicted Joel Thomas Biermann, 46, of University Park, Maryland, for multiple child exploitation offenses. Biermann is charged with two counts of producing child sexual abuse material, one count of distributing child sexual abuse material, and one count of possessing child sexual abuse material.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) – Baltimore Field Office and Chief Malik Aziz of the Prince George’s County Police Department (PGPD).
According to the indictment, between approximately October 26, 2012, and October 28, 2024, Biermann employed, used, persuaded, induced, enticed, and coerced one or more victims to engage in sexually explicit conduct. Biermann also produced and possessed visual depictions of the exploitation. Additionally, the indictment alleges that Biermann distributed child sexual abuse material on March 13, 2016.
If convicted, Biermann faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for the production of child sexual abuse material; a mandatory minimum of five years and a maximum of 20 years for the distribution of child sexual abuse material; and a maximum of 20 years for possession of child sexual abuse material. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
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 Attorney’s 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, visit www.justice.gov/psc. Click the “Resources” tab on the left side of the page to learn about Internet safety education.
U.S. Attorney Hayes commended the FBI and PGPD for their work in the investigation. Hayes also thanked Assistant U.S. Attorney Megan S. McKoy and Trial Attorney Gwendelynn Bills, Justice Department’s Child Exploitation and Obscenity Section, who are prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Pittsburgh Felon Sentenced to Prison for Possession of FirearmRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court to three years of imprisonment on his conviction of possession of a firearm as a convicted felon, Acting United States Attorney Troy Rivetti announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Deon Cortez Dutrieuille, 24, on May 1, 2025.
According to information presented to the Court, on November 25, 2023, the Monroeville Police Department were called to the Monroeville Mall in connection with a retail theft investigation. When they arrived, Dutrieuille was in the driver’s seat of a vehicle wearing a stolen jacket for which he admitted not paying. At that time, Dutrieuille had an outstanding arrest warrant in connection with an unrelated incident. When the officers tried to speak with Dutrieuille, the defendant provided fake names and then fled on foot. After apprehending and taking Dutrieuille into custody, officers conducted a search of the car and seized a stolen Glock handgun. Dutrieuille’s fingerprints were found on the gun by the Allegheny County Medical Examiner’s Office. Dutrieuille had multiple prior felony convictions, including in a robbery and prior illegal gun possession cases. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Monroeville Police Department for the investigation leading to the successful prosecution of Dutrieuille.
Ohkay Owingeh Man Charged with Multiple Counts of Aggravated Sexual AbuseRead the Press Release
ALBUQUERQUE – A Ohkay Owingeh man was federally indicted on multiple counts of aggravated sexual abuse for allegedly using force and threats to commit violent sexual acts.
According to court documents, Ashkia Randy Lee Trujillo, 30, an enrolled member of the Ohkay Owingeh Tribe, is accused of unlawfully and knowingly engaging in sexual acts with the victim on August 29, 2019. The indictment alleges that Trujillo used force, threats, and placed the victim in fear of death, serious bodily injury, or kidnapping during the commission of these acts.
Trujillois charged with three counts aggravated sexual abuse and will remain in third party custody pending trial, which has not been set. If convicted of the current charges, Trujillofaces up to life years in prison.
U.S. Attorney Ryan Ellison made the announcement today.
The Bureau of Indian Affairs investigated this case with assistance from the Ohkay Owingeh Police Department. Assistant U.S. Attorney Brittany DuChaussee is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Sentenced to 27 Years in Prison After Admitting to Sexually Abusing and Exploiting MinorsRead the Press Release
TOLEDO, Ohio – Michael D. Aspinwall, 38, of Toledo, Ohio, was sentenced to 27 years in prison by U.S. District Judge James R. Knepp, after he admitted to creating and distributing child sexual abuse materials (CSAM). Aspinwall pleaded guilty to one count of sexual exploitation of a minor and one count of receipt and distribution of child pornography. He was also ordered to serve lifetime supervised release after imprisonment and register as a sex offender, per the Adam Walsh Child Protection and Safety Act.
According to court documents, from about Oct. 1, 2023 to Feb. 9, 2024, Aspinwall admitted to producing sexual abuse materials of children and sending and receiving the digital files through mobile applications. FBI-Toledo, along with the assistance of Toledo Police officers, executed a search warrant on Feb. 9, 2024, and seized the defendant’s cellphone which was found to contain sexually explicit photos and videos of minors, including infants and toddlers. Additionally, during conversations with an online covert investigator, Aspinwall admitted to sexually abusing children−whom he babysat−while they were sleeping.
The investigation was conducted by the FBI Toledo Field Office and the Toledo Police Department. This case was prosecuted by Assistant U.S. Attorney Sara Al-Sorghali for the Northern District of Ohio.
To report child exploitation, please visit cybertipline.org, or call 1-800-843-5678, 24 hours a day, 7 days a week.
New Orleans Man Sentenced for Firearm ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – DARNELL D. LEE (“LEE”), age 26, a resident of New Orleans, was sentenced on April 24, 2025 by U.S. District Judge Eldon E. Fallon to thirty (30) months incarceration after pleading guilty to possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). LEE was also placed on supervised release for three (3) years following release from imprisonment and ordered to pay a mandatory $100 special assessment fee. Further, Judge Fallon ordered that his term of imprisonment run consecutive to the prison terms imposed by the 24th Judicial Court, Jefferson Parish, Louisiana.
According to court records, on November 24, 2023, New Orleans Police Department Officers patrolling the 300 block of Bourbon Street observed LEE with what appeared to be a handgun concealed in the front waistband of his pants. When NOPD Officers approached LEE to investigate , LEE fled but was quickly apprehended. Officers recovered a Smith and Wesson Model SD9VE, nine-millimeter handgun that had fallen from his waistband. LEE was charged with being a felon in possession of a firearm due to his prior felony convictions.
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.
Acting U.S. Attorney Simpson praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives investigating this matter. This case was prosecuted by Assistant U.S. Attorney Irene M. Gonzalez of the General Crime Unit.
Monte Vista Drug Dealer Sentenced to 15 Years of Federal Prison for Distribution of Methamphetamine and FentanylRead the Press Release
DURANGO – The United States Attorney’s Office for the District of Colorado announces that Blas Villa, 41, of Monte Vista, was sentenced to 180 months in federal prison after pleading guilty to possession with the intent to distribute methamphetamine and fentanyl.
According to the plea agreement and information presented at sentencing, Villa is a well-known drug dealer in the San Luis Valley. Villa possessed close to a pound of pure methamphetamine and thousands of fentanyl pills over three incidents in 2023. In August 2023, Villa and an associate were found at a home in Monte Vista with significant amounts of fentanyl and methamphetamine, a handgun, five cell phones, a scale with drug residue, and $13,400 in cash. A search of Villa’s phone revealed photos of Villa posing with firearms, as well as many photos of fentanyl pills associated with a pill counting app. Villa was originally charged in state court and bonded out of custody. While on bond, Villa was arrested again for possessing heroin and methamphetamine in November 2023. Villa bonded out of state custody again. In December 2023, law enforcement pulled over a car driven by Villa and found over 2,500 fentanyl pills and distribution amounts of methamphetamine. Prior to this case, Villa had fifteen prior convictions, including several felonies.
“Mr. Villa is a serial offender,” said Acting United States Attorney for the District of Colorado J. Bishop Grewell. “I thank our law enforcement partners for removing him and his deadly wares from the San Luis Valley.”
“Villa consistently brought harm and poison to Colorado, and with his sentencing the state is that much safer,” said DEA Rocky Mountain Field Division Special Agent in Charge Jonathan Pullen. “The men and women of DEA and our law enforcement partners will continue to take down people and organizations causing harm to Coloradans and those around the country.”
“The removal of these dangerous drugs is a testament to the tireless efforts of the Monte Vista Police Department, specifically the dedicated work of our Detective, in collaboration with key federal partners,” said Interim Monte Vista Police Chief Tyler Harford. “This operation represents a significant step forward in ensuring the safety and well-being of our community. We remain committed to addressing this issue and protecting our residents.”
United States District Judge Gordon P. Gallagher presided over the sentencing in Durango, Colorado. The Drug Enforcement Administration and the Monte Vista Police Department handled the investigation. Assistant United States Attorney Jeffrey K. Graves handled the prosecution.
Case Number: 24-cr-00046-GPG-JMC