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Friday 21 March 2025
Federal grand jury indicts Jamestown woman for her role in Jamestown drug conspiracyRead the Press Release
BUFFALO, N.Y. –U.S. Attorney Michael DiGiacomo announced today a federal grand jury returned an indictment charging Latika Saintkitts a/k/a Tika, 34, Jamestown, NY, with narcotics conspiracy, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorneys Joshua A. Violanti and Louis A. Testani, who are handling the case, stated that according to the indictment, between 2018, and May 26, 2022, Saintkitts conspired with Joseph S. Zaso and others, to sell heroin and fentanyl in the Jamestown area. Co-defendants include Andres Pizzaro Campos, Max Pizzaro Campos, Cindy Frank, Edward Leeper, and Jaquez L. Thomas. Joseph Zaso was previously charged and convicted and is awaiting sentencing.
Saintkitts was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released.
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 indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone.
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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Federal Way, Washington woman indicted for bank and wire fraud for fake investment schemeRead the Press Release
Seattle – A 52-year-old Federal Way, Washington woman was indicted this week by a federal grand jury for three counts of wire fraud and two counts of bank fraud, announced Acting U.S. Attorney Teal Luthy Miller. Jenni Yoon Jeong Lee allegedly held herself out to elderly members of the Korean community as an investment advisor. In reality, the investments went into accounts controlled by Lee and were used for her personal expenses. Lee allegedly defrauded at least 28 victims of over $3 million that was used for her expenses, her family’s expenses or to pay off earlier investors in the style of a Ponzi scheme.
“Ms. Lee held herself out as an experienced investment advisor offering her victims a guaranteed return on the funds they placed with her,” said Acting U.S. Attorney Miller. “However, the indictment notes that none of the money was invested and in fact, nearly $1 million of investor funds were accessed and spent at area casinos.”
According to the indictment, Lee created various business entities with names that made it seem they were financial investment companies. Lee opened and controlled bank accounts for these shell companies.
Lee held herself out as a financial advisor employed at the shell companies. She claimed both orally and in writing that she would place victim investments in funds that would guarantee a safe return, sometimes as high as 10%. She often represented that the principal was fully guaranteed so there was no risk associated with the investment.
Lee allegedly got the victims to write checks to one of the shell companies for ‘investment,’ or she induced the client to fund a self-directed IRA at a legitimate financial services company and give Lee access to manage the account. Lee would sometimes provide the financial services company with a promissory note to make it appear the client was loaning money to one of Lee’s shell companies. In this way she gained control of the investor funds.
In all Lee took in at least $3 million. Some money was paid back to investors making the full loss amount approximately $2.2 million. Of that, over $900,000 was withdrawn and spent at casinos.
The three counts of wire fraud are for specific transfers of funds from self-directed IRA accounts. The two counts of bank fraud are for depositing client checks into one of the shell corporation accounts. These counts are representative acts of the alleged scheme.
The charges in the indictment are punishable by up to 30 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean H. Waite
Federal Law Enforcement in Chicago Seizes $214 Million in Alleged “Pump and Dump” Investment Fraud Investigation; Seven Defendants IndictedRead the Press Release
CHICAGO — Seven individuals have been indicted on criminal charges as part of a federal investigation that disrupted an alleged “pump-and-dump” investment fraud scheme and resulted in government seizures of approximately $214 million.
From November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that purported to provide educational services in China, according to an indictment returned Thursday in U.S. District Court in Chicago. The scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company. The misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits, the indictment states. The stock price ultimately decreased significantly, at the expense of other investors, some of whom lost almost the entirety of their investment.
Charged with wire fraud and securities fraud are LIM XIANG JIE CEDRIC, 50, of Malaysia, MING-SHEN CHENG, 36, of Taiwan, KO SEN CHAI, 57, of Malaysia, KING SUNG WONG, 39, of Malaysia, SIONG WEE VUN, 37, of Malaysia, CHIEN LUNG MA, 54, of Taiwan, and KOK WAH WONG, 56, of Malaysia. The defendants are not in custody and warrants have been issued for their arrests.
During the investigation, federal law enforcement seized approximately $214 million in alleged proceeds from the fraud scheme. The funds are currently in U.S. custody. The U.S. Attorney’s Office in Chicago on Thursday filed a civil complaint seeking to have the money permanently forfeited to the United States, which would allow the government to return the money to victim investors.
The indictment and forfeiture complaint were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Boston Regional Office of the U.S. Securities and Exchange Commission and the SEC’s Office of Inspector General. Assistant U.S. Attorney Jared Hasten represents the government.
Each count of securities fraud is punishable by up to 25 years in federal prison, while the maximum sentence for each count of wire fraud is 20 years. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
If you believe you or someone you know may have been victimized by the fraud scheme charged in the indictment, you are encouraged to notify the FBI by completing this online form or calling 1-800-CALL-FBI (1-800-225-5324).
cedric_et_al_forfeiture_complaint.pdf cedric_et_al_indictment.pdfFederal Grand Jury Indicts Tompkinsville, Kentucky Man for Methamphetamine TraffickingRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned an indictment on March 12, 2025, charging a Tompkinsville, Kentucky man with distributing methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, and Director Ron Lafferty of the Barren River Drug Task Force made the announcement.
According to the indictment, Brandon Gearlds, 41, was charged with distributing 5 grams or more of methamphetamine on October 23, 2023. Gearlds was also charged with distributing 50 grams or more of methamphetamine on October 26, 2023, and April 24, 2024.
The defendant made his initial court appearance on March 18, 2025, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. The Court ordered the defendant detained pending trial. If convicted, Gearlds faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by the DEA - Paducah Post of Duty and the Barren River Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Four Chinese Nationals for Possessing Counterfeit Access DevicesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned two indictments on March 19, 2025, charging a total of four Chinese nationals with possessing more than fifteen counterfeit and unauthorized access devices as part of gift card tampering schemes.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office, and Chief Barry S. Wilkerson of the St. Matthews Police Department made the announcement.
According to the first indictment, Zhiqiang Huang and Chaoming Lin were charged with possessing more than fifteen counterfeit and unauthorized access devices following their arrest on October 19, 2024. That day, Kroger security personnel observed Lin placing gift cards on the rack at a Kroger store in Louisville. Later, following a stop by St. Matthews police, Huang and Lin were found to be in possession of approximately 5,000 gifts cards. A subsequent analysis of those gift cards indicated 2,000 were likely altered.
According to the second indictment, Huixing Yu and Tianlong Chen were charged with possessing more than fifteen counterfeit and unauthorized access devices following their arrest on October 19, 2024. That day, Kroger security personnel observed Chen placing gift cards on the rack at a Kroger store in Louisville. Later, following a stop by St. Matthews police, Yu and Chen were found to be in possession of approximately 650 gifts cards. A subsequent analysis of those gift cards indicated 250 were likely altered.
Gift card tampering is a form of organized retail crime. Gift card tampering involves stealing gift cards from retail stores, tampering the gift card to steal sensitive information, and then placing the gift card back into commerce at a retailer to be sold to unsuspecting consumers. When a consumer purchases the tampered gift card and loads funds onto the gift card at the point of sale, the funds are diverted and stolen.
Individuals and organizations engaged in gift card tampering often target brands that can be redeemed for goods, or items that can be easily liquidated on digital marketplaces. Large retailers are primary targets due to the high levels of consumer traffic and quick inventory turnover.
If convicted, each defendant faces a sentence of up to 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
There is no parole in the federal system.
This case is being investigated by HSI, FBI, and St. Matthews Police Department.
Assistant U.S. Attorney David Weiser is prosecuting this case.
These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Essex County Man Admits to Committing Firearms Trafficking and Narcotics OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man admitted to several firearms and narcotics trafficking offenses, U.S. Attorney John Giordano announced.
Carlo M. De Leon De Jesus, 28, of Newark, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an Information charging him with one count of dealing firearms without a license, one count of transferring firearms to an out-of-state resident, one count of firearms trafficking, and one count of conspiracy to distribute narcotics. De Leon De Jesus’s sentencing hearing is scheduled for July 28, 2025.
According to documents filed in this case and statements made in court:
On multiple dates between July 2023 and September 2023, De Leon De Jesus sold firearms and narcotics to law enforcement, including one pistol, one semiautomatic handgun, one short barrel rifle, one AK variant style rifle, fentanyl, heroin and cocaine.
The count of dealing firearms without a license and transferring firearms to an out-of-state resident each carry a maximum penalty of five years in prison and a fine of $250,000. The count of gun trafficking carries a maximum penalty of 15 years in prison and a fine of $250,000. The count of conspiracy to distribute controlled substances carries a maximum sentence of 20 years in prison and a fine of $1,000,000.
U.S. Attorney Giordano credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the leadership of Special Agent in Charge L.C. Cheeks Jr., with the investigation leading to the charges. He also thanked the Drug Enforcement Administration, Newark Field Division, under the leadership of Special Agent in Charge Cheryl Ortiz, and Homeland Security Investigations, Newark Field Division, under the leadership of Special Agent in Charge Ricky Patel.
The government is represented by Assistant U.S. Attorney Robert Taj Moore of the Narcotics/OCDETF in Newark.
deleondejesus.information.pdf
Ellenton Man Pleads Guilty for His Role in Fentanyl and Cocaine Distribution ConspiracyRead the Press Release
Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces that Alexis Soto Escalante (20, Ellenton) has pleaded guilty to conspiring to, and possessing with the intent to distribute over 40 grams of fentanyl and 500 grams of cocaine. Soto Escalante faces a mandatory minimum penalty of 5 years, up to 40 years, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on May 22, 2024, Soto Escalante sourced 55.9 grams of fentanyl to his co-defendant, Traveous Anderson, that was recovered by agents upon Anderson’s arrest. Later the same day, Soto Escalante traveled to Anderson’s apartment to collect payment for the fentanyl delivery where he was also arrested. Agents recovered 641 grams of cocaine and 3.7 grams fentanyl in the vehicle Soto Escalante was driving. Agents subsequently executed a search warrant at Soto Escalante’s residence and found an additional 14.03 grams of cocaine in his bedroom.
Anderson’s case is still pending trial.
This case was investigated by the Drug Enforcement Administration, with assistance from the Bradenton Police Department and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jeff Chang.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Eden Prairie Man Charged with Coercion, Enticement of a Minor and Production of Child Sexual Abuse MaterialRead the Press Release
MINNEAPOLIS – Michael Bruce Gillis, an Eden Prairie man, has been charged via federal criminal complaint with coercion and enticement of a minor and production of child pornography, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
According to the criminal complaint, on March 2, 2025, the Mounds View Police Department received a report of a missing 15-year-old male. In an effort to locate the missing juvenile, his family members reviewed his personal electronic devices and discovered recent chat communications between Minor Victim A and an individual identified as “Nick Miller.” In their chat thread, Minor Victim A specifically identified himself as being “young” and still in high school, to which “Nick Miller” responded that he “like[s] younger guys” and that he was “okay with it.” From there, the chat transitioned to Minor Victim A and “Nick Miller” exchanging sexually explicit messages and graphic photos. The pair then made plans to meet, but because Minor Victim A was too young to drive, “Nick Miller” ordered an Uber to pick him up and drive him to the meetup location.
A few hours after the electronic communications between “Nick Miller” and Minor Victim A, law enforcement conducted a welfare check at the address “Nick Miller” had provided. Law enforcement officers discovered Minor Victim A walking on foot a short distance from the indicated residence. Minor Victim A reported that “Nick Miller” had sexually assaulted him, and that he had escaped from the house after “Nick Miller” had fallen asleep. Law enforcement officers subsequently apprehended “Nick Miller” at the address he had provided, and positively identified him as Michael Bruce Gillis, 35. A subsequent records check revealed two other pending matters involving allegations of child exploitation, one in Hennepin County, Minnesota, and the other in Polk County, Florida.
“As this case demonstrates, child predators are clear and present dangers to the children of Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “We have federal tools at our disposal—including significant mandatory minimum sentences—that appropriately take predators like this off the street for decades. As Acting U.S. Attorney, I have directed my office to continue to prioritize these abhorrent crimes—to send a strong deterrent message and to protect our community.”
“The allegations in this case are horrific. His deliberate, predatory behavior led to the sexual assault of a child, causing significant harm and trauma” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “The FBI and our law enforcement partners will use every resource available to ensure those who prey on the most vulnerable are brought to justice.”
Gillis was charged by criminal complaint today in U.S. District Court with one count of coercion and enticement of a minor and one count of production of child pornography. He is currently detained.
This case is the result of an investigation by the FBI, Eden Prairie Police Department, Mounds View Police Department, and the Bloomington Police Department.
"I am glad we are working with our federal partners to get these child predators off the street," said Bloomington Police Chief Booker Hodges. "I am confident this partnership will help keep our communities safe."
Assistant U.S. Attorney Jordan L. Sing is prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Duluth Climbing Coach Sentenced to over Six Years in Prison for Possession of Child PornographyRead the Press Release
DULUTH, Minn. – Lucas Matthew Kramer, a Duluth man, was sentenced to 78 months in prison followed by five years of supervised release for possessing child pornography, announced Acting U.S. Attorney Lisa D. Kirkpatrick. He also was ordered to pay restitution to his victims and a $7,500 assessment pursuant to the Amy, Vicky, and Andy Child Pornography Assistance Act of 2018.
“Few crimes are as heinous as the sexual exploitation of minors,” said Acting U.S. Attorney Kirkpatrick. “My office will continue to prioritize charging predators who hold positions of trust in our community. Coaches, daycare providers, and others in positions of trust who prey on children will face federal justice.”
“The sentencing of Lucas Mathew Kramer concludes a successful investigation focused on those who seek to exploit our children. HSI will continue to pursue and bring to justice those who target our young people,” said ICE HSI Saint Paul Special Agent in Charge Jamie Holt. “We appreciate the collaboration with our law enforcement partners and stand by our commitment to protecting our communities and securing our homeland.”
According to court documents, on September 23, 2022, law enforcement received a tip that an online individual with the username “northernboy35” had used the Kik messenger application to upload 19 videos of child pornography to the internet. Less than a week later, the same username uploaded five additional child pornography videos to the internet. Law enforcement quickly determined that the uploaded files originated from Duluth, Minnesota, and linked the email and IP address for the “nothernboy35” moniker directly to Lucas Mathew Kramer, 45, a longtime collegiate climbing coach.
Law enforcement proceeded to execute a search warrant at Kramer’s residence and discovered that he had knowingly possessed over 600 images and videos of child sexual abuse material (CSAM) on numerous electronic devices. His CSAM collection included the graphic sexual abuse of prepubescent children—some as young as toddlers—and included videos depicting children being physically forced into sexual compliance. Kramer admitted that he downloaded and traded his CSAM collection with others on the internet. Law enforcement also discovered evidence of sexually explicit chats between Kramer and self-identified prepubescent minors, where he engaged the self-identified minors in sexually explicit conversations and encouraged them to take and send nude images of themselves.
Kramer pleaded guilty to one count of possession of child pornography on October 11, 2024. He was sentenced in U.S. District Court by Judge Eric C. Tostrud on March 19, 2024. When handing down the sentence, Judge Tostrud remarked that Kramer’s conduct was “deeply troubling” and that his collection of CSAM materials “reflected depravity” and showed a “callous indifference” to the humanity of his victims.
This case is the result of an investigation conducted by Homeland Security Investigations and the Duluth Police Department. “The Duluth Police Department appreciates its partnership with Homeland Security Investigations in holding this offender accountable to the highest standards,” commented Duluth Police Chief Mike Ceynowa.
The 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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Jordan L. Sing prosecuted the case.
District of South Carolina to Prosecute 1 of 14 Major Drug Smuggling OperationsRead the Press Release
CHARLESTON, S.C. — The U.S. Coast Guard and Department of Homeland Security announced yesterday the seizure of 45,600 pounds of illicit narcotics from smugglers in the Eastern Pacific Ocean worth more than $517 million. One of 14 mentioned interdictions will be prosecuted in the District of South Carolina.
On March 10, the USCGC Stone, utilizing their Helicopter Interdiction Tactical Squadron (HITRON) aircrew, detected a suspect vessel in international waters approximately 234 miles southeast of the Galapagos Islands. The HITRON aircrew employed airborne use of force tactics to stop the vessel, and Stone’s boarding team interdicted the go-fast vessel, apprehended two suspected smugglers and seized approximately 4,000 pounds of cocaine.
The two smugglers aboard the vessel, Carlos Armando Cedeno, 29, and Jorge Augusto Mero Figueroa, 60, both of Ecuador, were arrested. Their case has been transferred to the District of South Carolina for prosecution due to an ongoing international drug trafficking investigation by federal law enforcement in Charleston.
"We’re proud to partner with the Department of Homeland Security and the Coast Guard to combat transnational criminal organizations bringing dangerous narcotics into the U.S,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “The coordinated effort, culminating in arrests and the transfer of this case to the District of South Carolina, demonstrates the effectiveness of our interagency collaboration in disrupting the flow of illicit narcotics. We will continue to work tirelessly to protect our borders and keep our communities safe."
Cedeno and Figueroa are charged with possession with intent to distribute 5 kilograms or more of cocaine while on board a vessel subject to United States’ jurisdiction; and jettisoning (dumping into ocean) property that is subject to forfeiture under federal drug laws. Both defendants face a maximum penalty of up to life in prison.
The case was investigated by the U.S. Coast Guard with operational leads generated by the Coast Guard Investigative Service’s (CGIS) Transnational Organized Crime (TOC) Division and Southeast Field Office in Miami, Florida who all cooperatively spearheaded efforts against foreign cartel threats along with Homeland Security Investigations (HSI).
Assistant U.S. Attorney Chris Lietzow is prosecuting the case for the District of South Carolina.
All charges in the complaint are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Cryptocurrency Financial Services Firm "Gotbit" and Founder Plead Guilty to Market Manipulation and Fraud ConspiracyRead the Press Release
BOSTON – Gotbit Consulting LLC (Gotbit), a financial services firm known in the cryptocurrency industry as a “market maker,” and its founder pleaded guilty today in federal court in Boston to criminal charges relating to Gotbit’s fraudulent manipulation of cryptocurrency trading volume on behalf of client cryptocurrency companies.
Aleksei Andriunin, 26, of Russia and Portugal, and Gotbit, pleaded guilty to charges of wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin was arrested in Portugal on Oct. 8, 2024 and extradited to the United States on Feb. 25, 2025.
Gotbit and Andriunin were indicted by a federal grand jury on the same charges in October 2024. The indictment also charges two of Gotbit’s directors, Fedor Kedrov and Qawi Jalili.As alleged in court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including companies located in the United States and companies whose cryptocurrencies traded on platforms available to investors located in the United States. Andriunin was Gotbit’s Founder and Chief Executive Officer. In a 2019 interview, Andriunin described how he developed a code to “wash trade” cryptocurrencies to artificially inflate trading volume for the purpose of getting cryptocurrencies listed on CoinMarketCap (a website that published information about “trending” cryptocurrencies) and trading on larger cryptocurrency exchanges. Andriunin and Gotbit’s employees marketed these wash trading tactics to prospective clients and explained how Gotbit used multiple accounts to avoid detection of the wash trades on the public blockchain. Gotbit made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in payments from clients.
In connection with its plea, Gotbit admitted that it engaged in manipulative trades to artificially increase the trading price and volume of tokens for clients that included Robo Inu and Saitama. Leaders of those cryptocurrency companies were charged in separate cases unsealed in October 2024.
As part of today’s criminal resolution, Gotbit agreed to cease all operations and forfeit approximately $23 million in seized cryptocurrency. Pursuant to the plea agreement with Andriunin, the government will recommend a sentence of up to two years in prison.
Gotbit is the third market maker to resolve criminal charges relating to wash trading in the cryptocurrency industry. In October 2024, the founder of MyTrade pleaded guilty in connection with providing an unlawful wash trading service identified through an undercover law enforcement operation. In January 2025, CLS Global FZC LLC pleaded guilty in connection with offering illegal “volume support” services uncovered by the same operation.
The Securities & Exchange Commission brought a related civil enforcement action against Gotbit alleging violations of the securities laws.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit market manipulation and wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Valuable assistance was provided by the FBI’s Legal Attaché (Madrid) as well as Portugal’s Policia Judiciaria and Procuraduría General de la República. The Justice Department’s Office of International Affairs coordinated with Portuguese authorities to secure the arrest and extradition of Andriunin. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case. Assistant U.S. Attorney Carol Head, Chief of the Asset Recovery Unit is handling the forfeiture matter.
The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.Cleveland Man Sentenced to 147 months for Fentanyl and Gun ConvictionsRead the Press Release
Oxford, MS – Jarvis Wright, 46, was sentenced today to 147 months in prison following his guilty plea to distribution of fentanyl, possession of fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense in Bolivar County, Mississippi.
Wright was sentenced following a guilty plea to a multicount indictment which charged him for the sale of a substance containing fentanyl to a confidential informant in Cleveland, Mississippi in 2022. Wright also pled guilty to a separate possession of fentanyl with intent charge. In that instance, Wright possessed a handgun at the time of his arrest. He admitted as part of his plea that he possessed the handgun in furtherance of his drug trafficking activities.
Chief U.S. District Court Judge Debra M. Brown sentenced Wright to 147 total months imprisonment followed by a 60-month term of supervised release. 60 months of the total sentence imposed was for possession of a firearm in furtherance of a drug trafficking offense. That charge requires that a mandatory minimum sentence be imposed.
“The distribution of fentanyl and other illegal drugs has had a devastating impact on the Mississippi Delta region and our country. The risks that these poisons hold is amplified when drug dealers carry firearms.” said U.S. Attorney Clay Joyner. “This prosecution and sentence should send a message that those who distribute poison into the community will be held to account and punished accordingly. Fentanyl cannot be tolerated in our state.”
“This sentence sends a clear message: those who peddle deadly fentanyl in our communities, especially while armed, will face severe consequences,” said DEA Assistant Special Agent in Charge Anessa Daniels-McCaw. “We are dedicated to protecting the citizens of Mississippi from the devastating impact of these narcotics. This lengthy sentence reflects our commitment to holding drug traffickers accountable and restoring safety to our neighborhoods.”
The Mississippi Bureau of Narcotic and the Drug Enforcement Agency investigated this matter.
Assistant U.S. Attorney John Herzog Jr. prosecuted the case.
Christopher Reese Convicted of Fraud and Unauthorized Practice of LawRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that a jury convicted CHRISTOPHER REESE, a/k/a “Christopher Eugene Thomas,” yesterday for his participation in a scheme to defraud criminal defendants and their family members out of hundreds of thousands of dollars in legal fees paid to REESE, who is not a lawyer, to perform unlicensed legal services in federal court. REESE, who is already in federal custody in connection with a separate case, will be sentenced on June 26, 2025, by U.S. District Judge Valerie E. Caproni.
Acting U.S. Attorney Matthew Podolsky said: “Christopher Reese committed fraud through his bogus legal practice. He promised his victims that he would get their family members out of prison when he knew he had no way to guarantee that outcome, and induced them into paying him for legal services he knew he wasn’t authorized to provide. As a unanimous jury has now found, Reese’s promises were lies designed to enrich Reese at the expense of his victims. Running an unlicensed law business is a crime, and Reese now faces serious federal prison time for his fraudulent conduct.”
According to the Indictment and the evidence at trial:
For years, REESE ran a scam targeting federal inmates, their family members, and friends. To carry out his fraud scheme, REESE promised favorable results in criminal cases that he could not actually obtain, rendering legal services he was not authorized to provide in exchange for hefty fees. REESE styled himself as a “legal assistant” or “paralegal,” but worked without the supervision of a licensed lawyer and offers services that only a lawyer is authorized to provide, including drafting and submitting legal filings in federal courts. REESE brought in business by promising beneficial outcomes to prisoners and their family members that he cannot guarantee, while knowing—but failing to disclose—that his unlicensed legal practice was illegal.
REESE induced victims—criminal defendants and their family members—to pay him thousands of dollars per legal filing. He did this, for example, by promising that defendants would be “immediately released” based on motions REESE would file in exchange for fees in the thousands of dollars. Sometimes REESE also offered to provide a refund if his motions were unsuccessful; but when they failed, REESE kept the money. And when his fraud succeeded, and inmates or their family members paid REESE his fees, REESE engaged in the unauthorized practice of law, by making a business of drafting and filing legal motions and briefs in federal cases, including cases heard by the U.S. District Court for the Southern District of New York and the U.S. Court of Appeals for the Second Circuit at 40 Foley Square in Manhattan, a federal enclave where New York State’s prohibition on the unauthorized practice of law applies via the Assimilative Crimes Act.
REESE earned hundreds of thousands of dollars from this scheme. And REESE committed additional crimes in connection with these fraud proceeds. First, REESE was on supervised release in connection with a separate federal criminal case in this District during most of the scheme. And in connection with his supervision, and in order to avoid paying criminal restitution that he owed, REESE made false statements to the U.S. Probation Office. Second, REESE laundered the proceeds of his scheme by using a co-conspirator to engage in financial transactions designed to conceal the source and movement of the fees REESE collected from his victims.
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REESE, 57, of East Meadow, New York, was convicted of wire fraud, which carries a maximum sentence of 20 years in prison; unauthorized practice of law in a federal enclave, which carries a maximum sentence of four years in prison; making false statements to the U.S. Probation Office, which carries a maximum sentence of five years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison. REESE was found not guilty of conspiracy to commit wire fraud.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding investigative work of the Special Agents of the U.S. Attorney’s Office for the Southern District of New York.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Josiah Pertz, Kingdar Prussien and James McMahon are in charge of the prosecution.
Charleston Man Sentenced to Nearly 10 Years in Federal Prison for Possessing Illegal “Ghost Guns” and 3D Printed Gun PartsRead the Press Release
CHARLESTON, S.C. — Jimmy Franklin King, Jr., 35 of Charleston, has been sentenced to 115 months in federal prison for possessing seven firearms as a convicted felon, several of which were unregistered and untraceable “ghost guns.”
Evidence obtained during the investigation established that King imported firearms parts and components to his North Charleston residence from China, including an illegal silencer. A search warrant was executed on his home and agents discovered illegal firearms, ammunition, and 3D printed firearm components, including a machine gun conversion device, which is commonly used to convert a semiautomatic weapon into a fully automatic machinegun. Also located in King’s residence were two 3D printers and a computer that contained software programs for 3D printing machine gun conversion devices. As a result of these discoveries, King was arrested in September 2023. During his arrest, agents found two more unregistered firearms on his person.
United States District Judge David C. Norton sentenced King to a sentence of 115 months in prison—the maximum sentence called for by the United States Sentencing Guidelines. King’s term of incarceration will be followed by three years of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Department of Homeland Security Investigations with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cole Shannon is prosecuting the case.
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Buffalo man pleads guilty to child pornography chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Alexander J. Weidner, 35, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography involving a prepubescent minor, which carries a maximum penalty of 20 years in prison, and a fine of $250,000.
Assistant U.S. Attorney Douglas A.C. Penrose, who is handling the case, stated that on February 28, 2023, a federal search warrant was executed at Weidner’s residence as a result of child pornography uploaded to Snapchat and Instagram accounts, both associated with Weidner. Investigators seized two cellular telephones, which contained approximately 4,843 images and 371 videos of child pornography. Some of the images depicted minors under the age of 12 engaged in sexually explicit conduct. In addition, on two occasions, Weidner used the Session application to upload and share a video file containing child pornography with another Session user.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Amie Feroleto, and the National Center for Missing and Exploited Children.
Sentencing is scheduled for July 29, 2025, at 9:30 a.m. before Judge Vilardo.
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Birmingham Man Pleads Guilty to Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A Birmingham has pleaded guilty to gun and drug charged, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
Isiah De’Monte De’Mario Henley, 31, pleaded guilty before U.S. Magistrate Judge John H. England to distribution of methamphetamine and fentanyl, possession with the intent to distribute methamphetamine and fentanyl, carrying a firearm in furtherance of a drug trafficking crime, possession of a machine gun, and being a felon in possession a firearm.
According to court documents, in July and August of 2024, Henley sold methamphetamine and fentanyl to a confidential informant on three occasions. On August 8, 2024, Henley sold methamphetamine and fentanyl to an informant in Birmingham. When agents attempted to arrest Henley following the drug transaction, Henley ran from the police into a nearby residence, dropped a bag, and ran out the front door. As Henley exited, agents noticed that he was armed with a black handgun with an extended magazine. Henley was ordered to drop the firearm, and he threw the gun into a vacant lot covered in tall grass before being apprehended. Law enforcement recovered the gun and found that it was altered to include a Glock switch and that the extended magazine was fully loaded. The bag Henley left inside the residence contained 465 grams of methamphetamine and over seven grams of fentanyl.
The FBI investigated the case along with the Vestavia Hill Police Department. Assistant U.S. Attorney Brittany T. Byrd is prosecuting the case.
Birmingham Heroin Supplier Sentenced to 365 MonthsRead the Press Release
Court documents showed that Harding was a heroin supplier in Birmingham who was introduced to a conspirator from Baldwin County, Alabama, by another conspirator in Birmingham. As a result of the introduction, ounces of heroin were transported from Birmingham to Daphne, Alabama, where they were distributed to local heroin dealers. The Federal Bureau of Investigations (FBI) obtained a court-authorized wiretap on two of the local conspirators and identified Harding as the primary supplier for heroin. One of the drug shipments being discussed by the conspirators in the monitored phone calls was intercepted on I-65 in Baldwin County by Baldwin County sheriff’s deputies. The deputies seized approximately 205 grams of heroin hidden in the trunk of a rental car. The driver of the car, identified as Quantis Clark, was arrested and indicted separately. Clark pled guilty in federal court to conspiracy to possess with intent to distribute controlled substances during June of 2019. He was sentenced on August 30, 2022, to five years imprisonment.
When FBI agents involved in the Baldwin County investigation were preparing to arrest Harding in Birmingham, they discovered that Homeland Security agents and Alabama Law Enforcement agents were also investigating Harding on drug charges. In September of 2019, a search warrant was executed on Harding’s Birmingham residence and agents seized eight firearms, two kilograms of heroin, and additional amounts of cocaine and crack cocaine. In October of 2019, Harding was arrested on the indictment returned in the Southern District of Alabama.
Court documents also showed that Harding occupied a leadership role in the drug conspiracy. Court documents further showed that Harding had a long and significant criminal history with prior felony convictions spanning four decades. United States District Court Judge Terry F. Moorer imposed the 365-month sentence at the sentencing hearing on March 19. The judge ordered that the prison sentence will be followed by a four-year term of supervised release. Harding will undergo testing and treatment for drug abuse. The judge also imposed a special condition that the probation office may search Harding’s person or property upon a showing of reasonable suspicion that he is in violation of any of the conditions of his supervision. No fine was imposed but the judge ordered that Harding pay $100 in special mandatory assessments.
The FBI, the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the Foley Police Department, the Daphne Police Department, Gulf Shores Police Department and the Bay Minette Police Department, and the Mobile County Sheriff’s Office all participated in the investigation. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
The investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organization 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.
Baltimore Man Sentenced to More Than 30 Years in Federal Prison for Sexually Exploiting Multiple MinorsRead the Press Release
Baltimore, Maryland – Today, U.S. District Judge Ellen L. Hollander sentenced Delroy James Scott, 25, of Baltimore, Maryland, to 32 years in federal prison, followed by 50 years of supervised release, for the coercion and enticement of a minor and sexually exploiting six minors.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI); Chief Robert McCullough, Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; Chief Charles H. Hinnant, Cumberland Police Department; and Allegany County State’s Attorney James Elliott.
According to his guilty plea, between November 2021 and May 2022, Scott exploited six minor females between the ages of 9 and 14. Scott, who used an alias and pretended to be 16, utilized mobile phones and online applications to meet and communicate with the minor victims. He then persuaded, induced, enticed, and coerced the minor victims to meet him to engage in sex acts and/or to produce sexually explicit images and videos. Scott also had victims send him explicit images and videos and threatened to expose some of the victims to coerce them to produce explicit videos and engage in additional sex acts.
Scott traveled to the apartment of Minor Victim 1, age 9, on two separate occasions and coerced the victim to engage in sex acts. He pressured Minor Victim 2, age 11, to send explicit videos and images, and then threatened to expose her to her parents if she didn’t meet Scott in person to engage in sex acts. Scott convinced Minor Victim 3, age 13, to provide the address to her Alleghany County residence where he climbed into her bedroom window and sexually assaulted her.
The defendant traveled to the middle school of Minor Victim 4, age 12, on three separate mornings, and coerced the victim to engage in sex acts by threatening to expose her with videos he claimed he made of them. He coerced Minor Victim 5, age 10, to produce and send him explicit videos and then coerced her to send additional explicit videos by threatening to tell her mother.
Scott recorded he and Minor Victim 6, age 15, engaging in sexually explicit conduct on multiple occasions. Additionally, according to facts presented at sentencing, between 2017 and 2022, Scott engaged in similar unlawful conduct with multiple minor victims between the ages of 12 and 16.
This case is 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. Learn more about Internet safety education by clicking on the “Resources” tab on the left of the page.
U.S. Attorney Hayes commended the FBI, Baltimore County Police Department, Baltimore State’s Attorney’s Office, Cumberland Police Department, and Allegany County State’s Attorney’s Office for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Paul E. Budlow who prosecuted the 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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Armed Franklin County Drug Dealer Sentenced to 19 YearsRead the Press Release
RALEIGH, N.C. – A Youngsville man was sentenced Thursday to 19 years in prison for armed drug trafficking of cocaine, fentanyl and marijuana. On June 10, 2024, Samuel McCoy Oakley, Jr., age 47, pled guilty to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 400 grams or more of fentanyl, and a quantity of marijuana, distribution of 500 grams or more of cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other information presented in court, in September 2022, the Drug Enforcement Administration (DEA), in conjunction with other federal, state, and local law enforcement agencies, initiated an investigation into a drug-trafficking organization (DTO) operating in the Eastern District of North Carolina (EDNC). Investigation through digital and physical surveillance, cooperating sources, and wire intercepts determined that Oakley and his co-conspirators were responsible for distributing various narcotics sourced from New York and New Jersey.
On multiple occasions during the investigation, law enforcement observed unidentified males, with bags, arrive at Oakley’s residence, stay for a brief period, and leave. Vehicles stopped after leaving Oakley’s residence were found with marijuana and cash. Wiretap interceptions included calls where Oakley was discussing the sale of cocaine and fentanyl with his co-conspirators. In one instance, in May of 2023, he discussed purchasing “knowledge,” which referred to fentanyl branded with that name. The next day, a man used by Oakley as a courier drove from Charlotte to Oakley’s house and stayed only a couple of hours before returning to Charlotte. The following day, the courier took a flight to New York. Geo-location data show that the courier was in New York and New Jersey for a couple of days before driving back to North Carolina where he was stopped by law enforcement. During a search of the vehicle, officers located a “trap” that contained 5,012 grams of cocaine and 600 grams of fentanyl. The packages of fentanyl were stamped with the word “Knowledge.”
On July 19, 2023, a search warrant was executed at Oakley’s residence and more than 2,000 grams of cocaine were seized from the attic insulation. In addition, two 9mm handguns, including one that was loaded, a semiautomatic rifle, several rounds of ammunition and more than $35,000 in cash were recovered.
Based on the investigation, between July 2022 and July 2023, law enforcement determined that Oakley was responsible for a total of over 168 kilograms of cocaine, over 7 kilograms of fentanyl, and approximately 4 kilograms of marijuana.
This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The DEA, the Henderson Police Department, Franklin County Sherriff’s Office, and the State Bureau of Investigation investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00247-BO-RN.
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Arkansas man arrested, charged with enticing a minor in West SenecaRead the Press Release
BUFFALO, N.Y.- U.S. Attorney Michael DiGiacomo announced today that Brayden Storey, 21, of West Fork, Arkansas, was arrested and charged by criminal complaint with enticement of a minor, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Maeve E. Huggins, who is handling the case, stated that according to the complaint, on June 13, 2024, the West Seneca Police Department received a report from a minor victim of an incident involving an individual that she met online. The victim said that Storey first contacted her on Instagram in September 2022, when she was 13 years-old and he was 19 years-old. He also communicated with the minor victim through the social media platform Discord and text message. Between September 2022, and September 2023, they talked about video games and anime shows. At times, Storey made sexual comments, but in October 2023, the sexual communications that Storey sent to the minor victim significantly increased. Storey sent the minor victim a nude image of himself and repeatedly asked her to send him sexually explicit images. Between October 2023, and March 2024, Storey and the minor victim exchanged sexually explicit images.
In March 2024, the minor victim blocked Storey on all social media applications. As a result, he created another Instagram account to contact her. In April 2024, Storey called the minor victim approximately 50 times in a two-day span, but she did not answer the calls and blocked Storey’s phone number so that he could not contact her. In May 2024, Storey sent the minor victim a four-page letter in the mail at her residence, writing about his suicidal ideations and his desire to be in a relationship with her, regardless of their age difference. Along with the letter, Storey provided a lock of his hair. a search of the minor victim’s phone recovered nude images of Storey and child pornography.
Storey made an initial appearance in the Western District of Arkansas and was detained. He will be returned to the Western District of New York at a later date.
The complaint is the result of an investigation by the West Seneca Police Department, under the direction of Chief Brian Cosgrove, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Little Rock Office of the FBI, the Washington County Sheriff’s Office, the Benton County Sheriff’s Office, the Arkansas State Police, and Assistant U.S. Attorney Devon Still, with the U.S. Attorney’s Office in the Western District of Arkansas.
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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Arizona Brothers Plead Guilty for Roles in Conspiracies to Fraudulently Obtain Nearly $109 Million in Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—Two brothers from Sedona, Arizona, pleaded guilty for conspiring with one another and others to defraud the U.S. Small Business Administration (SBA) out of nearly $109 million in loans intended to help small businesses during the COVID-19 pandemic.
Eric Karnezis, 43, pleaded guilty Thursday to conspiring to commit wire fraud. Today, in a separate but related case, Anthony Karnezis, 43, also pleaded guilty to conspiring to commit wire fraud.
According to court documents, from January 2021 until at least March 2022, Eric Karnezis carried out a scheme whereby he conspired to gather false and fraudulent business information from customers and used the information to submit at least 350 fraudulent Paycheck Protection Program (PPP) loan applications through Blueacorn, a lender service provider, to Capital Plus Financial, a lender participating in the PPP. To facilitate the scheme, Eric Karnezis and his co-conspirators created fictious documents to support the fraudulent loan applications, including false payroll information and tax documents.
In total, Eric Karnezis submitted or caused to be submitted at least 1,300 PPP applications, which together attempted to obtain at least $178 million from Capital Plus Financial, of which approximately $105 million in loans were funded in response to the fraudulent applications. Additionally, Eric Karnezis required applicants to pay a fee for his role in the conspiracy and he received approximately $3 million for submitting the fraudulent applications.
Anthony Karnezis carried out a related scheme through at least March 2022, whereby he conspired with his brother, among others, to gather fraudulent business information from customers and used the information to submit at least 140 fraudulent PPP loan applications, through Blueacorn, to Capital Plus Financial. Based on the false and misrepresented information, more than $3.9 million in loans were funded in response to these fraudulent applications. Anthony Karnezis also required applicants to pay a fee for his role in the conspiracy and he received more than $957,000 for submitting the fraudulent applications.
On August 21, 2024, a federal grand jury in Portland returned a 23-count indictment charging Eric Karnezis and other defendants with conspiring to commit and committing wire fraud and conspiring to commit money laundering.
On February 19, 2025, Anthony Karnezis was charged by criminal information with conspiring to commit wire fraud.
Each faces a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release and will both be sentenced on June 20, 2025, before U.S. District Court Judge Karin J. Immergut.
As part of their plea agreements, Eric Karnezis agreed to pay between $25 million and $65 million in restitution to their victims, and Anthony Karnezis agreed to pay between $3.5 million and $9.5 million in restitution to their victims. They have also agreed to forfeit any criminally-derived proceeds and property.
This case was investigated by the SBA Office of Inspector General (SBA-OIG), IRS Criminal Investigation (IRS:CI), the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Naval Criminal Investigative Service (NCIS). It is being prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Julia Jarett, also of the District of Oregon.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
35-Year Sentence for Man Convicted of 2023 Stranger Rape and Kidnapping That Followed Robbery AttemptRead the Press Release
WASHINGTON – Ricky McNeil, 51, of Washington, D.C., was sentenced today to 35 years in prison for a July 2023 attempted robbery in which he kidnapped the victim at knifepoint and sexually assaulted her, announced U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith of the Metropolitan Police Department (MPD).
On December 11, 2024, a Superior Court Jury found McNeil guilty of kidnapping while armed, first-degree sexual abuse with aggravated circumstances, robbery, assault with a dangerous weapon (knife), possession of a prohibited weapon (knife), and assault with significant bodily injury. In addition to the prison term, Superior Court Judge Michael O’Keefe ordered five years of supervised release and ordered McNeil to register as a sex offender for life upon release from prison.
According to the government’s evidence, on July 26, 2023, as the victim was walking past the defendant, a stranger to her, on Benning Rd, NE, he asked her for a cigarette. She told him she was going to the store and would buy him one. McNeil then snatched her purse off her arm and ran toward the door of his nearby apartment. When he was entering, the victim tried to grab her purse back from McNeil, at which point he grabbed her wrist, pulled her inside and barricaded the sole door to the apartment. When the victim ran to a nearby window and yelled for help, McNeil grabbed her, threw her down and began punching her. He then took the victim into another room, ordered her to disrobe and perform oral sex on him, threatening to give her a “smiley face” with a knife he was holding if she refused. When he had forced the act upon her, she immediately bit him. At that point, McNeil punched her in the mouth, splitting open her lip, and continued beating her. When McNeil got distracted by a phone, the victim jumped out the second-story window to escape. She ran, partially clad, to a nearby McDonald’s where a good Samaritan let her borrow a cell phone to call 911. Police responded to the scene but McNeil had already fled.
When a search warrant was executed the following morning, the victim’s clothing and shoes were recovered from inside McNeil’s apartment, as well as her blood and his.
In October 2023, McNeil was arrested on a warrant in Tampa, FL, and extradited back to DC, where he has been held without bond.
In announcing the sentence, U.S. Attorney Martin and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including SODV paralegals Garcia Clark and Veronica Hale, Victim Witness Service Coordinator Maenylie Watson, IT supervisor Leif Hickling, and Victim Advocate Maria Sanchez-Garcia.
Finally, they commended the work of Assistant U.S. Attorney Molly K. Smith and former Assistant U.S. Attorney Peter V. Taylor and of the Sex Offense and Domestic Violence Section, who prosecuted the case.
17 Previously Removed Defendants – Including Convicted Felons – Charged with Being Illegal Aliens Found in U.S. After RemovalRead the Press Release
LOS ANGELES – Working with U.S. Immigration and Customs Enforcement and other federal law enforcement partners, federal prosecutors in the last week filed charges against 17 defendants who allegedly illegally re-entered the United States after being removed, the Justice Department announced today.
Many of the defendants charged were previously convicted of felony offenses before they were removed from the United States, offenses that include assault with bodily injury. One of the defendants is suspected of murder while another was arrested on suspicion of committing assault with intent to rape.
The crime of being found in the United States following removal carries a base sentence of up to two years in federal prison. Defendants who were removed after being convicted of a felony face a maximum 10-year sentence and defendants removed after being convicted of an aggravated felony face a maximum of 20 years in federal prison.
Some of the recently filed cases are summarized below with information contained in court documents.
- Jescar Amarzca-Olgiuen, 51, of Mexico, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. Amarzca was charged after he was arrested in Orange County on March 19 as a suspect in the 2023 murder of a man who died from multiple gunshot wounds. His criminal history includes a felony conviction in 2013 in San Diego federal court for fraud and misuse of visas and permits, for which he was sentenced to 15 months in federal prison.
- Marvin Campos Cerna, 29, of El Salvador, was charged via a federal criminal complaint with being an illegal alien found in the United States after removal. Campos was charged after he was arrested in West Hollywood on March 7 for allegedly committing assault with intent to rape, false imprisonment, sodomy, and kidnapping. Prior to this arrest, Campos was convicted in 2014 for assault with bodily injury, for which he was sentenced to six years in California state prison.
- Victor Navarro-Cota, 23, and Tereso Guadalupe Martinez-Reyes, 20, both of Mexico, were arrested near Barstow on March 13 while driving a black Chevrolet Suburban filled with 478 pairs of Nike Jordan 6 Rings shoes, which retail for approximately $170 per pair, totaling $81,260. Both Martinez-Reyes and Navarro-Cota were in the U.S. illegally and each previously was deported in February 2025. Navarro-Cota’s arraignment is scheduled for April 22. Martinez-Reyes’ arraignment is scheduled for April 1.
Criminal complaints contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Immigration and Customs Enforcement and Homeland Security Investigations are investigating these matters.
The criminal cases are being prosecuted by Assistant United States Attorneys in the Domestic Security and Immigration Crimes Section and the General Crimes Section.
14 Charged in Federal Indictment Following Takedown of Violent Indianapolis Drug Trafficking RingRead the Press Release
INDIANAPOLIS— 14 individuals have been charged in a federal indictment alleging a conspiracy to distribute methamphetamine, heroin, fentanyl, and cocaine in Indianapolis, Lafayette, and surrounding communities. The charges follow a successful law enforcement operation in which 13 total individuals have been arrested and are in federal custody. Eight individuals were arrested on March 21, 2025. The following lists the individuals indicted and the charges they face:
DefendantCharge(s)Tanesha M. Turner, 39- Conspiracy to distribute controlled substances
- Kidnapping
- Carrying and brandishing a firearm during and in relation to a drug trafficking crime
- Accessory to a crime after the fact
- Possession of a firearm by a convicted felon
- Conspiracy to distribute controlled substances
- Carrying and brandishing a firearm during and in relation to a drug trafficking crime.
- Distribution of methamphetamine
- Possession of a machinegun
- Possession of a firearm by a convicted felon
- Conspiracy to distribute controlled substances
- Carrying and brandishing a firearm during and in relation to a drug trafficking crime.
- Causing Death by Using a Firearm During and in Relation to a Drug Trafficking Crime
- Possessing, Brandishing, and Discharging a Firearm During and in Relation to a Drug Trafficking Crime
- Conspiracy to distribute controlled substances
- Retaliating against a witness
- Use of fire or explosives
- Possession of a firearm by a convicted felon
- Conspiracy to distribute controlled substances
- Unlawful use of a cell phone
- Conspiracy to distribute controlled substances
- Possession of a firearm by a convicted felon
- Conspiracy to distribute controlled substances
- Possession of methamphetamine with intent to distribute
- Conspiracy to distribute controlled substances
- Possession of a firearm by a convicted felon
- Conspiracy to distribute controlled substances
- Unlawful use of a cell phone
- Conspiracy to distribute controlled substances
- Conspiracy to distribute controlled substances
- Conspiracy to distribute controlled substances
- Conspiracy to distribute controlled substances
- Conspiracy to distribute controlled substances
This was a multi-agency operation, involving ten agencies who assisted with the investigation and the arrests on the morning of March 21, 2025. Law enforcement has asked the public for assistance in locating fugitive Lamar T. Browning. He should be considered armed and dangerous. Those with information are asked to call 1-800-CALL-FBI.
According to the indictment, all 14 defendants allegedly operated a drug trafficking conspiracy, selling meth, fentanyl, cocaine and heroin out of several trap houses in Indianapolis.
Some members of the conspiracy allegedly committed multiple acts of violence, including murder, firing gunshots, throwing Molotov cocktails at a home, kidnapping, and pistol-whipping in order to intimidate drug customers and rival drug dealers The violence was used as a tool to collect money owed to them by their drug customers, to protect the locations that they used to distribute drugs, and to retaliate against potential witnesses.
Specifically, Nahamani Sargent allegedly fired gunshots and threw Molotov cocktails at the home of a customer, believing that the victim had provided information about the conspiracy to law enforcement.
Additionally, Tanesha Turner allegedly kidnapped a victim at gunpoint and held them for ransom because they owed $40. Tre Dunn then allegedly shot the same victim for owing money and providing information to law enforcement.
Tre Dunn also allegedly aided and abetted the murder of a man because he disrespected him and his associate during a failed drug deal. Tanesha Turner then allegedly aided Dunn by driving him to another location following the murder to prevent his arrest.
If convicted, each defendant faces up to life in federal prison.
The following investigative agencies collaborated to make this investigation and recent warrant execution possible:
- Federal Bureau of Investigation (Indianapolis, Chicago, and Cincinnati SWAT)
- Indianapolis Metropolitan Police Department, SWAT
- Fishers Police Department, SWAT
- Drug Enforcement Administration
- United States Department of Agriculture
- Indiana Capitol Police Department
- Indiana Department of Homeland Security
- Johnson County Sheriff’s Department
Acting U.S. Attorney Childress thanked Assistant U.S. Attorneys Bradley A. Blackington and Kelsey Massa, who are prosecuting this case.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). This operation is part of the Indiana High Intensity Drug Trafficking Areas (HIDTA) program.
An indictment or criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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11 Charged in Twin Cities Drug Trafficking, Kidnapping ConspiracyRead the Press Release
MINNEAPOLIS – A federal grand jury returned a five-count indictment against 11 individuals associated with a transnational Drug Trafficking Organization (DTO) tied to a Mexican cartel in a drug trafficking and kidnapping conspiracy, announced Acting U.S. Attorney Lisa D. Kirkpatrick.
As alleged in the indictment, beginning in July 2023 through January 2025, 11 defendants conspired to possess methamphetamine with the intent to distribute it. The DTO leaders arranged for large quantities of methamphetamine to be delivered from Mexico to the Twin Cities area, via the mail and driven by cars and trucks. Once delivered, the Minnesota-based defendants broke large quantities of methamphetamine down into smaller, distributable quantities and sold it to customers throughout the Twin Cities region. In January 2025, an individual owed a DTO leader in Mexico a substantial amount of money, which they could not pay. Four of the co-defendants lured this individual to a location in St. Paul, Minnesota. They kidnaped the victim, beat the victim, chained the victim to a pole, and the held the victim against their will. During the kidnaping and beating, a DTO leader instructed one of the defendants over a messaging application, “you are breaking his hands. Break them good.”
“This case highlights the inherent danger that transnational drug cartels bring to our country,” said Acting U.S. Attorney Lisa D. Kirkpatrick. “This mob-style violence has no place in America, it has no place in Minnesota, and those who engage in it will be charged federally.”
The following individuals have been indicted for the following crimes and have made their initial appearance in federal court:
• Richar Sanchez Mujica, 30, is charged with conspiracy to distribute methamphetamine, conspiracy to kidnap, and possession of a firearm in furtherance of a drug trafficking crime.
• Donovan Rey Lopez, 21, of Minneapolis is charged with conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
• Erling Soren Holdahl, 48, is charged with conspiracy to distribute methamphetamine and conspiracy to kidnap.
• Dostin Elizander Ortiz-Garcia, 29, of Burnsville, Minnesota, is charged with conspiracy to distribute methamphetamine.
• Jonathan Salvador Juarez-Ferrer, 25, of Minneapolis, is charged with conspiracy to distribute methamphetamine.
• Timothy Duane Ripley, 45, is charged with conspiracy to distribute methamphetamine and conspiracy to kidnap.
• Kendra Sue Johnson, 39, is charged with conspiracy to distribute methamphetamine and conspiracy to kidnap.Four other members of the conspiracy have not yet made their initial appearances.
This case is the result of cooperation between Homeland Security Investigations, the Minnesota Bureau of Criminal Apprehension, the St. Paul Police Department’s Violent Crime Enforcement Team, The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Minneapolis Police Department, Ramsey County, and the Central Minnesota Violent Offender Task Force. It is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to eliminate cartels and transnational criminal organizations (TCOs), and to 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).
Assistant U.S. Attorney Michael P. McBride is prosecuting the case.
An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
10 Indicted in Alleged Scheme Orchestrated by Street Gang Members to Smuggle Narcotics into a Riverside County JailRead the Press Release
RIVERSIDE, California – Three people were arrested today pursuant to a federal grand jury indictment alleging a scheme to smuggle narcotics into a Riverside County jail by concealing drugs inside of individuals who would purposely get arrested to deliver the contraband.
The three arrested today are among 10 defendants named in the indictment that alleges a scheme to smuggle fentanyl, methamphetamine and heroin into the detention facility. The other defendants charged in the case were already in custody.
“Drug smuggling endangers the lives of inmates and the sheriff’s deputies who are sworn to guard them,” said Acting United States Attorney Joseph McNally. “I thank and commend our partners at the FBI and the Riverside County Sheriff’s Department for the time and attention they have paid to this urgent and important matter.”
“This investigation highlights the importance of the cooperation and working relationship with our federal partner law enforcement agencies when it comes to public safety,” said Riverside County Sheriff Chad Bianco. “The smuggling of drugs into our jails, particularly with the emergence of fentanyl, has dramatically increased inmate deaths and medical emergencies within our corrections division. I commend the sheriff's investigators and FBI agents who worked tirelessly on this case to ensure those responsible were identified and brought to justice. We will continue to partner with federal agents in our ongoing efforts to keep Riverside County safe.”
The conspiracy allegedly was led by Andrew Jesus Ayala, 46, of Riverside, and members of a Riverside-based street gang who worked with three in-custody defendants who wanted to obtain narcotics, a group of facilitators on the street and an at least one drug mule who concealed narcotics in a body cavity, the indictment alleges.
The indictment outlines a scheme that began at an unknown date and continued into late 2022, when intercepted phone calls revealed efforts to smuggle narcotics into a Riverside County custody facility. Members of the drug trafficking ring obtain narcotics and recruited individuals who were willing to smuggle drugs hidden inside their bodies, according to the indictment.
Leaders of the scheme arranged temporary housing for the drug mules before and after they went into custody and delivered narcotics, according to the indictment, which details steps taken by the smugglers to avoid having the drugs detected by X-ray scanners.
In one incident in late 2022, a defendant attempted to smuggle 1¾ ounces of methamphetamine concealed inside his body, but that shipment was intercepted when the contraband was seen on an X-ray machine when the defendant was brought into custody, the indictment alleges.
Members of the conspiracy allegedly discussed smuggling fentanyl-laced pills that could be sold inside the jail for 10 times the street price.
The indictment unsealed today charges all 10 defendants with conspiracy to possess with intent to distribute and distribute methamphetamine, a charge that carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison. Nine of the defendants are additionally charged with possession with intent to distribute methamphetamine, which also carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI and the Riverside County Sheriff’s Department are investigating this matter.
Assistant United States Attorneys Peter Dahlquist and Erin C. Kiss of the Riverside Branch Office are prosecuting this case.
Thursday 20 March 2025
Zadeh Kicks Owner and Chief Financial Officer Plead Guilty in $80 Million Wire Fraud and Bank Fraud ConspiracyRead the Press Release
EUGENE, Ore.— The former owner and former chief financial officer of Zadeh Kicks LLC, a now-defunct Oregon corporation that sold limited edition and collectible sneakers online, pleaded guilty today for perpetrating a fraud scheme that cost customers more than $65 million in unfulfilled orders and defrauded financial institutions out of more than $15 million.
Michael Malekzadeh, 42, a Eugene resident, has pleaded guilty to wire fraud and conspiring to commit bank fraud. Bethany Mockerman, 42, also of Eugene, has pleaded guilty to conspiring to commit bank fraud.
According to court documents, Malekzadeh started his business in 2013 by purchasing limited edition and collectible sneakers to resell online. Beginning as early as January 2020, Zadeh Kicks began offering preorders of sneakers before their public release dates, allowing Malekzadeh to collect money upfront before fulfilling orders. Malekzadeh advertised, sold, and collected payments from customers for preorders knowing he could not satisfy all orders placed. By April 2022, Malekzadeh owed customers more than $65 million in undelivered sneakers.
In her role as chief financial officer at Zadeh Kicks, Mockerman conspired with Malekzadeh to provide false and altered financial information to numerous financial institutions—including providing altered bank statements—on more than 15 bank loan applications. Together, Mockerman and Malekzadeh received more than $15 million in loans from these applications.
During the investigation, agents seized millions of dollars in cash and luxury goods that Malekzadeh acquired with the proceeds of his fraud, including luxury watches, jewelry and hundreds of handbags. Additionally, almost $7.5 million was seized from the sale of Malekzadeh’s residence in Eugene, his watches, and luxury cars manufactured by Bentley, Ferrari, Lamborghini and Porsche.
On July 29, 2022, Malekzadeh was charged by criminal information with wire fraud, conspiracy to commit bank fraud, and money laundering, and Mockerman was charged with conspiracy to commit bank fraud.
Malekzadeh faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release for wire fraud, and a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release for conspiracy to commit bank fraud. Mockerman faces a maximum sentence of 30 years in prison, a $1,000,000 fine and five years of supervised release. Malekzadeh will be sentenced on August 12, 2025, and Mockerman will be sentenced on August 26, 2025, before a U.S. District Judge.
As part of their plea agreements, Malekzadeh and Mockerman have agreed to pay restitution in full to their victims and if needed forfeit any criminally-derived proceeds and property used to facilitate their crimes identified by the government prior to sentencing.
This case was investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations with assistance from the Oregon Intellectual Property Task Force. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.
York County Tax Preparer Indicted for Submission of Fraudulent PPP Loan Applications and Destruction of RecordsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dommonick T. Chatman, age 49, of York, Pennsylvania, was indicted on twenty counts of bank fraud and one count of destroying records in a federal investigation.
According to Acting United States Attorney John C. Gurganus, the indictment alleges that Chatman either submitted or caused to be submitted false and fraudulent Paycheck Protection Program (PPP) loan applications and supporting documentation in order to obtain funds for his clients and kickback payments to himself.
The PPP program was created by the March 2020 CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being. The PPP program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to the indictment, Chatman operated a business located in York, PA, known as The Chatman Group, LLC, through which he offered tax-preparation services. It is alleged that Chatman discussed the PPP and funds available through the PPP with existing and prospective clients of his company. If the clients decided to move forward with PPP loan applications, Chatman prepared a PPP loan application for and on behalf of a client or directed an employee of The Chatman Group to prepare an application using information that he provided. Chatman then knowingly inserted false and fraudulent information into clients’ applications and supporting documentation. For example, several loan applications were supported by a Schedule C—an official IRS tax form for the reporting of business income by a sole proprietor—claiming over $100,000 in gross receipts when, in reality, the taxpayer either did not file a Schedule C for the corresponding tax year or filed a Schedule C reporting gross receipts of less than $15,000.
A financial institution, including at times an unnamed financial institution headquartered in the Middle District of Pennsylvania, then approved such loans in reliance on the documentation submitted to it.
The indictment contains twenty individual charges of bank fraud, each of which is based on an allegedly false and fraudulent PPP loan application filed during March and April 2021. Most of the applications were for a requested amount of approximately $20,833, which was the maximum possible amount for a sole proprietor with no employees.
The indictment also alleges that in November and December 2022, after being contacted and interviewed by members of federal law enforcement, Chatman knowingly destroyed records—including electronically stored PPP loan applications of clients and a hard copy list of PPP loan applications of clients—with the intent to obstruct a federal grand jury investigation.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of the Treasury, Office of Inspector General. Assistant U.S. Attorney Ravi Romel Sharma is prosecuting the case.
The maximum penalty under federal law for bank fraud is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty for destruction of records in a federal investigation is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Winnebago Man Sentenced for Assault Resulting in Substantial Bodily InjuryRead the Press Release
Acting United States Attorney Matt R. Molsen announced that Gabriel Lee Rice, 36, of Winnebago, Nebraska, was sentenced on March 20, 2025, in federal court in Omaha, Nebraska for assault resulting in substantial bodily injury to a spouse or intimate or dating partner. United States District Court Judge Brian C. Buescher sentenced Rice to 30 months’ imprisonment. There is no parole in the federal system. After Rice’s release from prison, he will begin a 3-year term of supervised release.
In July 2022, Rice assaulted a woman known to him, pinning her against a wall, then covering her mouth and nose with his hand. Rice restricted the victim’s breathing to the point that the victim could not breathe at all and fell unconscious. The assault occurred in front of a child.
This case was prosecuted in federal court because the offense was a felony and occurred on the Winnebago Indian Reservation in Nebraska.
This case was investigated by the Federal Bureau of Investigation.
Wesley Chapel Man Sentenced to 5 Years for Receiving and Possessing Child Sexual Abuse ImagesRead the Press Release
Tampa, FL– U.S. District Judge William F. Jung today sentenced Neil Thomas (23, Wesley Chapel) to 5 years in federal prison, followed by 15 years of supervised release, for receiving and possessing child sexual abuse images. The court also ordered Thomas to forfeit a cellular phone used in the commission of the offense, pay $24,000 in restitution to the victims, and register as a sexual offender. Thomas pled guilty on November 5, 2024.
According to court documents, Homeland Security Investigations (HSI) executed a search warrant at Thomas’ home in September 2023. During a search of Thomas’ cellphone, law enforcement found that in August 2023, Thomas received numerous videos depicting children being sexually abused. Thomas also possessed over 1,000 images and videos of child sexual abuse in his cellphone.
“Protecting our most vulnerable communities will continue to be a focus of our special agents,” said ICE HSI Assistant Special Agent in Charge Micah McCombs. "This child predator will now spend time in prison thinking about his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This is another case 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Violent Domestic Abuser Sentenced to 37 Months in Federal Prison for Third Illegal Reentry into United States from MexicoRead the Press Release
INDIANAPOLIS— Pedro Zuniga-Lopez, 35, of Mexico, has been sentenced to 37 months in federal prison, followed by 2 years of supervised release, after pleading guilty to illegal reentry of an alien after deportation.
According to court documents, on September 19, 2024, Immigration Customs Enforcement (ICE) Deportation Officers were notified by the Indiana Department of Corrections that Pedro Zuniga-Lopez, an illegal alien, was in custody following a conviction for domestic battery with bodily injury to a pregnant woman and scheduled to be released on October 22, 2024.
Zuniga-Lopez had previously been deported to Mexico several times, including once in 2018 and twice in 2020. He was prohibited from entering the United States at any time because he had been convicted of at least one aggravated felony. Under the Immigration and Nationality Act, aliens found guilty of certain crimes may be excluded from legal reentry to the country.
Zuniga-Lopez has a lengthy criminal history, including two previous federal convictions for illegal reentry, as well as two convictions for breaking and entering, and domestic battery with bodily injury to a pregnant woman.
Most recently, in 2024, while in the United States unlawfully, Zuniga-Lopez viciously assaulted his own girlfriend, who was pregnant with his child, after she stated she did not want his drugs in her home. He swung at her face with closed fists and continued to punch her after she fell to the ground. The victim’s three young children witnessed the attack and screamed “hey mommy, stop!” The day after the victim made this report to police, Zuniga-Lopez broke a window to her home and forced himself inside. He then fled from police before he was arrested. Zuniga-Lopez was convicted and sentenced in Marion County for this offense.
“While in the United States unlawfully, this defendant has repeatedly broken the law, demonstrating time and time again a fundamental lack of respect for this country” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “Additionally, this defendant is a proven menace to society, including toward some of the most vulnerable individuals in our community—women and children. Our office is committed to working with our ICE partners to charge and convict aliens that illegally re-enter the country, especially if they are a risk to public safety.”
“Our ICE Officers work tirelessly to protect the homeland through our efforts with border security, national security and our drive to keep the public safe,” said ERO Chicago’s Assistant Field Office Director Douglas Thompson. “Criminal aliens that continue to cross into our country need to face consequences to discourage them committing crimes that endanger our communities. We will continue to work with our federal partners at the United States Attorney’s Office to prosecute violent felons like Zuniga-Lopez, who has multiple convictions and removals from the U.S.”
U.S. Immigration and Customs Enforcement investigated this case. The sentence was imposed by U.S. District Judge Richard L. Young.
Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Meredith Wood, who prosecuted this case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
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Utah Man Sentenced to 12 Years’ Imprisonment for Attempting to Receive Images of Child Sexual AbuseRead the Press Release
ST. GEORGE, Utah –Todd Robert Michels, 54, of Washington City, Utah, was sentenced to 144 months’ imprisonment, and a lifetime of supervised release after he admitted that he attempted to receive images of child sexual abuse.
According to court documents and statements made at Michel’s change of plea and sentencing hearings, on November 3, 2023, Michels communicated via the internet with an individual he thought was the father of a seven-year-old boy. Michels was actually communicating with an undercover officer. During these communications, Michels said he wanted to sexually abuse the undercover officer’s seven-year-old son and that he had fantasized about such behavior for a long time. Michels also requested sexually explicit photographs of the child. The undercover officer and Michels ultimately agreed to meet for the purpose of Michels sexually assaulting the seven-year-old boy. Upon Michels’ arrival at the meeting location, he was taken into custody.
Acting United States Attorney Felice John Viti of the District of Utah made the announcement.
The case was investigated jointly by The FBI's Child Exploitation and Human Trafficking Task Force and Homeland Security Investigations.
Assistant United States Attorney Christopher Burton of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
Union County Woman Admits Embezzling Hundreds of Thousands of Dollars from SynagogueRead the Press Release
NEWARK, N.J. – A Union County woman admitted her role in embezzling more than approximately $350,000 from a Union County synagogue, U.S. Attorney John Giordano announced.
Stacy Margaritondo, 52, of Scotch Plains, New Jersey pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an Information charging her with wire fraud.
According to documents filed in this case and statements made in court:
In 2010, Margaritondo began working at the synagogue located in Union County, New Jersey and was promoted to office manager and bookkeeper in July 2020. From December 2019 through May 2023, Margaritondo abused this position of trust by engaging in a fraudulent scheme to misappropriate approximately $350,000 from the synagogue’s accounts. As part of the scheme, Margaritondo routinely issued unauthorized checks made payable to herself drawn on the synagogue’s bank accounts; obtained unauthorized additional funds to conceal the embezzlement scheme by fraudulently using the synagogue’s name, bank statements, and balance sheet to obtain short-term financing from at least three cash advance companies; and intentionally kept inaccurate accounting records and altered bank statements that she provided to the board of directors to conceal her scheme.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for July 22, 2025 at 12 p.m.
U.S. Attorney Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the guilty plea. He also thanked the Scotch Plains Police Department, under the direction of Chief Jeffrey J. Briel, for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
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Defense counsel: Marc A. Sposato, Esq. and Steven F. Wukovits, Esq., Cranford, New Jersey
margaritondo.information.pdfTwo illegal aliens imprisoned for unlawfully reentering the U.S.Read the Press Release
McALLEN, Texas – Two Mexican nationals with felony criminal histories have been sentenced in two separate cases for illegally entering the county without authorization, announced U.S. Attorney Nicholas J. Ganjei.
Jose Eduardo Soto-Hernandez, 29, and Salvador Eduardo Gonzalez-Ledezma, 25, pleaded guilty Dec. 17 and 18, 2024, respectively.
Chief U.S. District Judge Randy Crane has now imposed a 46-month term of imprisonment for Gonzalez-Ledezma, while Soto-Hernandez received 27 months. Not U.S. citizens, both are expected to face removal proceedings following their imprisonment.
Soto-Hernandez has prior felony convictions for sexual assault of a child and possession of a controlled substance. He has been removed from the United States two previous times, most recently in 2019.
Gonzalez-Ledezma also has prior felony convictions for assault family violence impeding breath and harboring aliens. Authorities removed him most recently in 2022, but he has a total of four prior removals.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigations. Assistant U.S. Attorney Amanda McColgan prosecuted the cases.
Two Eastern European Organized Crime Leaders Convicted of Murder-For-Hire Targeting U.S.-Based Journalist on Behalf of the Iranian GovernmentRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that a jury returned guilty verdicts against RAFAT AMIROV, a/k/a “Farkhaddin Mirzoev,” a/k/a “Pᴎᴍ,” a/k/a “Rome,” and POLAD OMAROV, a/k/a “Araz Aliyev,” a/k/a “Polad Qaqa,” a/k/a “Haci Qaqa,” on all five counts in the Superseding Indictment, which included murder-for-hire and attempted murder in aid of racketeering charges, in a trial before U.S. District Judge Colleen McMahon. AMIROV and OMAROV are scheduled to be sentenced on September 17, 2025.
Acting U.S. Attorney Matthew Podolsky said: “For years, the Government of Iran has attempted to silence an outspoken Iranian journalist, author, activist and critic of their regime through any means necessary, including harassment, violence, intimidation, and even attempted murder. Chillingly, the plot to murder this Iranian dissident culminated over 6,000 miles from Iran, on U.S. soil, right here in New York, when a hitman with an AK-47 camped outside her home to kill her. I commend the career prosecutors of this Office and our law enforcement partners at the FBI’s Counterintelligence Division for their tireless work in bringing these defendants to justice. This verdict should send a clear message around the world: if you target U.S. citizens, we will find you, no matter where you are, and bring you to justice.”
FBI Acting Assistant Director in Charge Leslie R. Backschies said: “The convictions of Rafat Amirov and Polad Omarov send a clear message to all foreign governments who violate our laws and attempt to commit violence against Americans — they and their proxies will face justice for any attempt to silence Americans on U.S. soil. The Iranian government’s shameless conduct and attempt to violate our laws and assassinate a critic of their human rights atrocities will not be tolerated. The FBI is determined to disrupt any effort by foreign governments to use violence to repress our citizens’ freedoms, here or abroad.”
As reflected in the Superseding Indictment and the evidence presented at trial:
AMIROV and OMAROV were high-ranking members of an Azeri faction of the Russian Mob (the “Organization”) who worked with other members of the Organization to attempt to kill Masih Alinejad on instructions from high-ranking members of the Islamic Revolutionary Guard Corps (“IRGC”). Alinejad has previously been the target of plots by the Government of Iran to intimidate, harass, and kidnap her for her work as a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses around the world. As recently as 2020 and 2021, Iranian intelligence officials and assets plotted to kidnap Alinejad from within the U.S. for rendition to Iran in an effort to silence her criticism of the Iranian regime.
After these brazen efforts to kidnap Alinejad from the U.S. failed, the IRGC turned to AMIROV and OMAROV to locate, surveil, and murder her. Beginning in approximately July 2022, AMIROV sent targeting information—which he had received directly from IRGC officials in Iran—about Alinejad to OMAROV. In turn, OMAROV communicated this information to Khalid Mehdiyev, another member of the Organization who had been residing in Yonkers, New York, so that Mehdiyev could surveil Alinejad and murder her. In turn, Mehdiyev sent photographs and videos of Alinejad’s residence to OMAROV, who shared these materials with AMIROV and the IRGC officials who orchestrated the plot in Iran. AMIROV and OMAROV then arranged for a $30,000 cash payment to Mehdiyev, who used a portion of this payment to buy an AK-47 style assault rifle, two magazines, and at least 66 rounds of ammunition; as Mehdiyev boasted in electronic communications, a “war machine” he could use to kill Alinejad.
In late July 2022, Mehdiyev repeatedly traveled to Alinejad’s neighborhood to surveil her. Mehdiyev sent reports of his surveillance to OMAROV, who passed them to AMIROV. On July 24, 2022, Mehdiyev reported to OMAROV from Alinejad’s residence that he was “at the crime scene.” On July 27, 2022, OMAROV told AMIROV that Mehdiyev was ready to kill Alinejad, writing “this matter will be over today. I told them to make a birthday present for me. I pressured them, they will sleep there this night.” On July 28, 2022, Mehdiyev sent OMAROV a video taken from inside the car that Mehdiyev was driving with the assault rifle and a message reading “we are ready.” AMIROV sent an image of the interior of Alinejad’s home to OMAROV to be forwarded to Mehdiyev, writing “this is the house where she stays.” As OMAROV continued to update AMIROV about Mehdiyev’s readiness, AMIROV cautioned OMAROV “let him keep the car clean.” When Mehdiyev subsequently drove from where he was surveilling the residence, he was stopped after a traffic violation and, during a subsequent search of the vehicle, police officers found the assault rifle, 66 rounds of ammunition, approximately $1,100 in cash, and a black ski mask.
After Mehdiyev was arrested and placed into custody, OMAROV contacted Mehdiyev’s mother and threatened to kill her and her other son if she did not locate Mehdiyev.
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AMIROV, 46, of Iran; OMAROV, 40, of the country of Georgia, were convicted on five counts: murder-for-hire, which carries a maximum sentence of 10 years in prison (Count One); conspiracy to commit murder-for-hire, which carries a maximum sentence of 10 years in prison (Count Two); conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison (Count Three); attempted murder in aid of racketeering, which carries a maximum sentence of 10 years in prison (Count Four); and possession and use of a firearm in connection with the attempted murder, which carries a maximum sentence of life in prison and a mandatory minimum sentence of five years in prison (Count Five).
Mr. Podolsky praised the outstanding investigative work of the FBI and its New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force. Mr. Podolsky also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, as well as the Department of Justice’s National Security Division and the Department of Justice’s Office of International Affairs, for their assistance. Mr. Podolsky also thanked the authorities in the Czech Republic.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from paralegal specialists Owen Foley and Sabrina Jim Munoz, and Trial Attorneys Christopher Rigali and Leslie Esbrook of the Counterintelligence and Export Control Section.
Two Consulting Companies and its Owners Plead Guilty to Bid Rigging Scheme Involving New York City Public SchoolsRead the Press Release
Four defendants, two companies and their owners, have pleaded guilty in the U.S. District Court for the Southern District of New York, for their roles in a bid rigging scheme involving budget and procurement consulting services for New York City (NYC) Public Schools.
On March 19 and 20, Transcend BS LLC (Transcend), a procurement and training consultant company, and its owner, Victor A. Garrido of Peekskill, New York; and Clark & Garner LLC (C&G), an educational programming consultant for schools and non-profit organizations, and its owner, Donald Clark Garner II, of Brooklyn, New York, pleaded guilty to a violation of Section 1 of the Sherman Act.
“Defendants targeted the nation’s largest school system with their scheme, undermining the rights of New York City taxpayers to benefit from fair and honest competition,” said Director of the Procurement Collusion Strike Force Daniel Glad of the Justice Department’s Antitrust Division. “The Antitrust Division and its PCSF partners remain steadfast in our commitment to root out fraud, waste, and abuse in procurement processes at any level of government, as we have since 2019.”
According to court documents, from approximately November 2020 through at least January 2023, Garrido and his co-conspirators, including Garner and C&G, created and submitted artificially high “competitor” bids to make it appear as if Transcend was the lowest bidder for consulting services contracts to circumvent NYC Department of Education’s (DOE) requirement for a competitive bidding process. C&G never provided any of the same services that Transcend provided. Rather, the co-conspirators rigged the bidding process for Transcend to continue to obtain lucrative work orders from New York City public schools without competing fairly. This scheme affected more than $707,000 in work orders to NYC Public Schools and resulted in estimated losses to the NYC DOE of $141,511.
Prior to forming Transcend and C&G, Garrido and Garner were employed by NYC Public Schools. Garrido was a business manager, providing substantially similar consulting services to various schools, and Garner was a former teacher recruitment manager
In addition, both Garrido and Garner agreed to pay restitution to New York State Department of Labor for unemployment benefits they improperly received.
“Victor Garrido and Donald Clark Garner admitted their guilt in scheming to use their companies to artificially control the bidding process for a New York City Department of Education contract,” said Acting Assistant Director in Charge Leslie Backshies of the FBI New York Field Office. “Garrido and Garner will now rightly face justice for attempting to personally benefit at the expense of the New York City taxpayers. The FBI will continue to enforce antitrust laws to ensure a fair and competitive bidding process for government contracts.”
“SCI is grateful for the opportunity to work alongside our partners at the DOJ Anti-trust Division, the Office of the Inspector General for the Department of Labor, and the FBI in bringing this important case to justice,” said Special Commissioner of Investigation Anatasia Coleman of the Office of the Special Commissioner of Investigation for the NYC School District. “SCI is also pleased to recover tax dollars for New York City taxpayers. Bid-rigging is a serious crime that deprives the school district of vital funds and deprives students of a stable learning environment — and it is a crime that SCI will continue to tirelessly root out.”
"These guilty pleas underscore the U.S. Department of Labor, Office of Inspector General's unwavering commitment to safeguard the American workplace from corruption and illegal influence,” said Special Agent-in-Charge Jonathan Mellone of the U.S. Department of Labor, Office of Inspector General Northeast Region. “We will continue to work closely with our law enforcement partners to pursue those who engage in the exploitation of governmental programs within our jurisdiction."
The maximum penalty for bid rigging for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI New York Field Office, the SCI for the New York City School District, and the Department of Labor Office of Inspector General.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state, and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Two Cleveland Men Indicted for Trying to Send Firearms to Drug Cartel Members in MexicoRead the Press Release
Tampa, FL – Acting United States Attorney Sara C. Sweeney announces the unsealing of an indictment charging Yarquimedes Rodriguez Hilario (32, Cleveland, OH) and Adison Lopez-Ramirez (34, Cleveland, OH) with conspiring to traffic firearms and money laundering. If convicted on all counts, each defendant faces a maximum penalty of 35 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit assets that are traceable to proceeds of the offense.
According to the indictment and other court documents filed during this investigation, since 2021, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), posing as Mexican cartel members, were introduced to Yuendry Rodriguez Hilario because he was a trafficker of firearms that could be smuggled to Mexico. Undercover communications with Yuendry Rodriguez Hilario and others discussed the purchase of AR-15s and rocket-propelled grenade launchers. One of the coconspirators described that he sold AR-15s and AK-47s to El Salvadorans and had cocaine available for distribution. Yuendry Rodriguez Hilario further offered fentanyl to one of the agents to make pills.
Beginning in late-2021, members of the conspiracy sold or arranged the sale of at least 90 rifles and one Mac-10-type machine gun with a silencer to undercover agents in the Middle District of Florida and Cleveland, Ohio. On October 21, 2021, Adison Lopez-Ramirez delivered nine .223/5.56 caliber rifles and one 9mm rifle to undercover ATF agents in St. Petersburg, Florida, in exchange for $16,000. Soon after the sale, federal agents followed Lopez-Ramirez as he deposited $9,000 from the sale into the bank account of Yarquimedes Rodriguez Hilario, the brother of Yuendry Rodriguez Hilario.
In November 2022, an undercover agent told Yuendry Rodriguez Hilario that his associates in Mexico were “battling and losing” and needed to purchase more firearms. On March 2, 2023, Yuendry Rodriguez Hilario arranged to deliver 40 AM-15 multi-caliber firearms to the agents. Saleh Yusuf Saleh, who acquired and assembled the parts to make the firearms, arrived at the meeting with Yuendry Rodriguez Hilario and the agents. After an undercover agent inspected one of the boxes of firearms, both Yuendry Rodriguez Hilario and Saleh were arrested.
In March 2024, Yuendry Rodriguez Hilario was sentenced to 13 years and 4 months’ imprisonment. In November 2024, Saleh Yusuf Saleh previously was sentenced to 5 years and 8 months in federal prison.
Image 1: Firearms from the October 21, 2021 Sale
Images 2-3: Firearms from March 10, 2022 Sale
Images 4-5: Firearms from May 26, 2022 Sale
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
The specific mission of the OCDETF Panama Express Strike Force is to disrupt and dismantle Transnational Criminal Organizations involved in large scale drug trafficking, money laundering, and related activities. The OCDETF Panama Express Strike Force is comprised of agents and officers from the Coast Guard Investigative Service, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI). The Cleveland offices of ATF, HSI, DEA, and FBI, with assistance from the Cleveland Police Department and Cuyahoga County Sheriff’s Office, provided critical support in the apprehension of the defendants. It is being prosecuted by Dan Baeza.
This case is part of Operation Take Back America which streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Two California Doctors Agree to Settlements Totaling $375,000 to Resolve Allegations of Fraud Schemes Related to “Electroacupuncture” DevicesRead the Press Release
FRESNO, Calif. — Zachary J. Lipman MD, of Chico, has paid $290,000 to the United States and Michael Woo-Ming MD, of Murrieta, has agreed to pay $85,000 to the United States to resolve allegations arising from a fraud scheme that caused the submission of hundreds of false claims to Medicare, Acting U.S. Attorney Michele Beckwith announced today.
Both settlements relate to a fraud scheme orchestrated by Riverside County chiropractor Kevin Brown, in which Brown used various companies he owned to seek and receive reimbursement from Medicare for surgically implanted neurostimulators at multiple locations within and beyond California, even though the companies did not perform surgery or implant neurostimulators. In a prior settlement with the United States, Brown stipulated that he and his companies instead taped a disposable “electroacupuncture” device called “Stivax” to their patients’ ears. Stivax devices do not require surgical implantation and are not reimbursable by Medicare. The United States alleges that this scheme violated the False Claims Act and the Anti-Kickback Statute.
With respect to the settlement with Dr. Lipman announced today, the United States had alleged that Lipman solicited and received unlawful kickbacks from Brown in return for Lipman referring his patients to Brown for the furnishing of Stivax devices paid for by Medicare. The settlement with Dr. Woo-Ming resolves allegations that his companies Revive Medical of San Diego, which Woo-Ming co-owned with Brown, and Medical Wellness Group submitted false claims to Medicare for surgically implanted neurostimulators.
“These physicians took part in a fraud scheme at the expense of hardworking taxpayers,” said Acting U.S. Attorney Beckwith. “My office is committed to working with our partners to address fraud schemes like these that divert funds from important federal health care programs like Medicare.”
“Improper financial arrangements can compromise medical judgment, adversely influencing the medical decision-making process,” stated Acting Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to protect the integrity of federal health care programs and those served by those programs.”
The investigation was conducted with the U.S. Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorney Emilia P.E. Morris handled the case for the United States.
The settlement agreements can be found here:
lipman_settlement_agreement_executed_10.25.24.pdf
woo-ming_settlement_agreement-executed_3.5.25.pdf
brown_settlement_agreement-_executed_07.10.24_0.pdfTwenty-two Charged in Imperial Valley Takedown of Violent Drug Trafficking Organization Linked to Beltran Leyva CartelRead the Press Release
EL CENTRO – Twenty-two alleged members of a sophisticated transnational drug trafficking organization with ties to the Sinaloa-based Beltran Leyva Cartel were indicted by a federal grand jury for importing and distributing more than a ton of methamphetamine, fentanyl and cocaine into the United States, laundering the illicit proceeds, and attempting to export firearms from the United States into Mexico.
In a coordinated takedown this morning in California, Arizona, Iowa, and Colorado, more than 150 federal, state, and local law enforcement officials arrested 10 defendants and executed six search warrants in Imperial County. As of this afternoon, the search continues for 12 fugitives.
Including seizures today and throughout this long-term investigation, authorities have confiscated more than 1,000 kilograms (about 2,204 pounds) of drugs, including methamphetamine, cocaine, and over 750 kilograms (about 1,653 pounds) of fentanyl, 10 firearms, and more than $250,000 in narcotics proceeds.
“We have literally seized a ton of drugs that were destined to hit our streets and harm our community,” said Acting U.S. Attorney Andrew Haden. “By disrupting this prolific, cartel-linked trafficking network, we are preventing the devastation and violence it brings.”
“Today’s enforcement action marks the culmination of a complex, long-term HSI investigation, demonstrating the strong collaboration between federal, state, and local law enforcement agencies nationwide,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Our local communities are undoubtedly safer today, and we remain committed to aggressively pursuing criminal organizations that threaten our country.”
“Close coordination and aggressive action amongst allied law enforcement agencies just made communities nationwide safer places to live and work,” said El Centro Border Patrol Sector Chief Patrol Agent Gregory Bovino. “The well executed takedown of this drug trafficking organization heralds a new day in homeland security where we will relentlessly apprehend and prosecute transnational threats.”
According to search warrants, the defendants belonged to a Mexicali, Mexico- and Imperial County-based transnational criminal organization that operated as a distribution cell for the Beltrán Leyva Cartel, specifically associated with Fausto Isidro Meza Flores aka El Chapo Isidro. Using undercover operations and multiple rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics.
Additionally, during the fourth round of wiretaps, one of the wiretap targets, an Imperial County-based narcotics subdistributor, was shot multiple times in Mexicali and died several months thereafter. Investigators believe that the subdistributor was lured from the United States to Mexico and shot by a co-conspirator in relation to their drug trafficking and money laundering activities.
According to federal search warrants:
In one instance on January 23, 2023, authorities seized approximately 1.4 million fentanyl pills after intercepting phone conversations about moving fentanyl pills in a semi-truck. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located eight duffel bags containing approximately 148.53 kilograms (327.45 pounds) in the trailer of the truck.
In another instance, on May 9, 2023, authorities seized approximately 483,000 fentanyl pills after intercepting phone conversations about moving narcotics in a semi-truck. Law enforcement conducted a traffic stop on the drug-laden tractor-trailer and located bags containing approximately 48.30 kilograms (106.48 pounds) of fentanyl pills in the truck.
Shortly thereafter, on May 25, 2023, authorities seized approximately 480,000 fentanyl pills, 72.29 kilograms of methamphetamine, and a loaded 9mm handgun with a 10-round magazine inserted and a round in the chamber. After intercepting phone conversations about coordinating the movement of narcotics in a semi-truck, federal agents surveilled the narcotics being loaded into the tractor-trailer, then conducted a traffic stop. Law enforcement officials located six duffel bags containing approximately 72.29 kilograms (159.37 pounds) of methamphetamine and 48.6 kilograms (107.14 pounds) of fentanyl in the trailer of the truck.
In another instance, on October 9, 2023, investigators seized approximately 139,000 fentanyl pills and 36.66 kilograms (80.82 pounds) of methamphetamine following federal agents’ surveillance of defendants unloading and transporting the narcotics.
On March 14, 2024, after a traffic stop conducted by a Brawley police officer, law enforcement seized approximately 59.48 kilograms (131.13 pounds) of methamphetamine.
Federal agents also seized firearms and ammunition during the investigation, including two gold plated AR-15 semi-automatic rifles hidden inside a 55-gallon barbeque grill on August 3, 2023, and two rifles, two pistols, approximately 2182 ammunition rounds, and seven magazines destined for Mexicali-based drug traffickers.
Additionally, according to court records, five of the charged defendants are tied to alien smuggling activity, having been either arrested and/or previously prosecuted for immigration-related crimes, such as alien smuggling, accessory after the fact to illegal entry, and selling or offering to sell a Visa.
This case is being prosecuted by Assistant U.S. Attorney Loren G. Renner.
DEFENDANTS
Case Number 24cr2399
Irving Alberto Lopez Valdes Age: 36 Mexicali, Mexico
Raul Salome Valdez-Orduno Age: 46 Mexicali, Mexico
Case Number 24cr2400
Jesus Damian Lizarraga Sanchez Age: 28 Mexicali, Mexico
Case Number 24cr2434
Elizabeth Millan Age: 46 San Diego, California
Brandon Garcia Age: 27 Calexico, California
*Seven unnamed defendants are fugitives
Case Number 24cr2431
Roberto Marrufo Age: 40 Calexico, California
Case Number 25cr0785
Ricardo Miramontes Nava Age: 35 Calexico, California
Case Number 25cr0786
Jacob Rodiles Age: 21 El Centro, California
Roberto Fernandez Age: 70 Calexico, California
Raul Martinez Jimenez Age: 56 Mexicali, Mexico
Julian Banuelos Age: 19 Imperial, California
Alain Alejandro Robles-Murrieta Age: 19 Mexicali, Mexico
*Three unnamed defendants are fugitives
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1), 846
Maximum penalty: Life in prison with a mandatory minimum of 10 years and a $10 million fine.
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and a $500,000 fine
Attempted Transfer of a Firearm for Use in a Drug Trafficking Crime – Title 18, U.S.C., Section 1924(h)
Maximum penalty: Fifteen years in prison and a $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations, Calexico - Imperial Valley Border Enforcement Security Taskforce (IV-BEST)
Homeland Security Investigations, Riverside, CA
Homeland Security Investigations, Denver, CO
Homeland Security Investigations, Yuma, AZ
Homeland Security Investigations, Sioux City, IA
United States Border Patrol, El Centro Sector Intelligence Unit
Customs and Border Protection, Calexico Intelligence Division
Imperial County Narcotics Task Force
Drug Enforcement Administration, Imperial County Office
Drug Enforcement Administration, Phoenix Office
Federal Bureau of Investigations, Imperial County Office
United States Immigration and Customs Enforcement, Enforcement and Removal Operations
United States Marshals Service
Calexico Police Department
Imperial County Sheriff’s Office
Imperial County District Attorney’s Office
Brawley Police Department
California Highway Patrol
El Centro Police Department
San Diego-Imperial Valley HIDTA
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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.
High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Three More Defendants Plead Guilty in Large Bank Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Davon Hunter, age 27, of Richmond, Virginia, Christian Quivers, age 20, of Richmond, and Crystal Kurschner, age 44, of Brooklyn, New York, have pled guilty for their respective roles in a bank fraud conspiracy. United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of their pleas, Hunter, Quivers, and Kurschner each admitted that they were members of a conspiracy to defraud financial institutions all over the country by obtaining the personal identifying information (“PII”) of victims and using lower-level “workers” to impersonate the identity-theft victims to conduct fraudulent banking transactions in their names. As part of a plea agreement entered today, Quivers admitted that he was a supervisor in the conspiracy and relayed instructions he obtained from supervisors, including Oluwaseun Adekoya, Kani Bassie, and Hunter, to lower-level members of the conspiracy who impersonated identity-theft victims and conducted fraudulent transactions in their names. As part of a plea agreement entered earlier this week, Kurschner admitted that she was a “worker” who impersonated identity-theft victims and provided most of the fraud proceeds to her supervisors. Earlier this month, Hunter admitted that he was a manager of the conspiracy who received directions and PII from supervisors including Adekoya and Bassie and orchestrated fraudulent transactions on their behalf.
Hunter and Quivers each pled guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Kurschner pled guilty to one count of conspiracy to commit bank fraud.
These remaining defendants are charged as follows in the second superseding indictment:
- Adekoya, age 39, a Nigerian citizen living in Cliffside Park, New Jersey, is charged with one count of conspiracy to commit bank fraud, one count of money laundering conspiracy, and nine counts of aggravated identity theft;
- Bassie, age 36, of Brooklyn, is charged with one count of conspiracy to commit bank fraud, one count of money laundering conspiracy, and two counts of aggravated identity theft; and
- Jermon Brooks, age 20, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and one count of aggravated identity theft.
As to these defendants, the charges in the second superseding indictment are merely accusations. These remaining defendants are presumed innocent unless and until proven guilty.
The prosecution is the result of an ongoing investigation led by the U.S. Attorney’s Office and FBI-Albany, which began after the May 2022 arrest of Daniyan, Gaysha Kennedy, age 46, of Brooklyn, and Victor Barriera, age 64, of the Bronx, by the Cohoes Police Department after the trio traveled to the Capital Region to commit bank fraud. According to documents previously filed in the case, the investigation has uncovered over $1.7 million in fraudulent transactions to date. Eleven defendants have pled guilty and forfeited hundreds of thousands of dollars in proceeds, luxury apparel, and jewelry.
At sentencing later this year, Hunter, Quivers, and Kurschner each face a maximum term of 30 years’ incarceration for the bank fraud conspiracy, and Hunter and Quivers each face a mandatory consecutive term of 2 years’ incarceration for their convictions of aggravated identity theft. The defendants will be ordered to pay restitution and will also face a term of post-incarceration supervised release of up to 5 years.
FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York, Newark, Richmond and Resident Agencies in Westchester, New York; Brooklyn/Queens, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida. Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General; New York law enforcement agencies including the New York State Police; Cohoes PD; Colonie PD; Elmira PD; Corning PD; Plattsburgh PD; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; the Pennsylvania State Police; Alabama law enforcement agencies including the Calhoun County Sheriff’s Office, Gasden PD, and Rainbow City PD; Georgia law enforcement agencies including the Georgia State Patrol, Bartow County Sheriff’s Office, and Morrow PD; Kansas law enforcement agencies including Lawrence PD and Overland Park PD; New Hampshire law enforcement agencies including Rochester PD, Manchester PD, and Amherst PD; the Delaware State Police; Maryland law enforcement agencies including the Maryland State Police, Harford County Sheriff’s Office and Baltimore County Sheriff’s Office; Wisconsin law enforcement agencies including Onalaska PD and Eau Claire PD; and Indiana law enforcement agencies including the Allen County Sheriff’s Office.
Assistant United States Attorneys Benjamin S. Clark and Joshua R. Rosenthal are prosecuting this case.
Texan Sentenced to Federal Prison for Sex with a Minor in Mexico Resulting in 2 BirthsRead the Press Release
Correction: A previous version of this press release stated that when Garcia applied for Consular Reports of Birth Abroad (CBRA), he misrepresented the age of the victim as 21 and 23 at the time of the two births. Court documents indicate Garcia was 21 and 23 years old at the time of the births and applied for CBRAs with that information--not misrepresenting the victim's age.
DEL RIO, Texas – A U.S. citizen who had been traveling to and from Mexico was sentenced today in a federal court in Del Rio to 188 months in prison for engaging in illicit sexual conduct in a foreign place.
According to court documents, David Manuel Garcia, 42, traveled from the U.S. to Mexico between July 2003 and August 2008, and engaged in forced sexual acts with a minor victim under the age of 18, which resulted in the birth of two children. Records indicate that the victim was 13 years old at the time of the first birth, and 15 years old when she gave birth to the second child.
Garcia was arrested Dec. 11, 2018 at the Eagle Pass Port of Entry. Chief U.S. District Judge Alia Moses found Garcia guilty in a bench trial on Aug. 26, 2022.
Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.
Homeland Security Investigations investigated the case with assistance from the U.S. Department of State's Diplomatic Security Service (DSS).
Assistant U.S. Attorney Holly Pavlinski prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
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Tenderloin Fentanyl Dealer Sentenced to over Four Years for Distribution of A Controlled Substance and International Money LaunderingRead the Press Release
OAKLAND – Elbin Salvador Archaga-Ayestas, aka “Cuco,” was sentenced today to 50 months in federal prison for distribution of fentanyl and international money laundering. U.S. District Judge Yvonne Gonzalez Rogers handed down the sentence.
Archaga-Ayestas, 21, a Honduran national, was charged on Dec. 7, 2023, by a superseding indictment with one count of distribution of 40 grams or more of fentanyl and three counts of international money laundering in connection with sending the proceeds of his fentanyl sales to Honduras via a money services business in Oakland, Calif. On Nov. 7, 2024, he pleaded guilty to all four counts in the superseding indictment.
According to court documents, Archaga-Ayestas resided in Oakland and traveled to the Tenderloin neighborhood of San Francisco to sell drugs. Archaga-Ayestas sold multiple ounces of fentanyl to an undercover officer on May 11, 2023. At the time of Archaga-Ayestas’s arrest on June 26, 2023, he was in possession of nearly 2.5 kilograms of fentanyl. In the months leading up to his arrest, Archaga-Ayestas sent proceeds from his fentanyl sales, wiring over $10,000 on several occasions, back to his family in Honduras through a money transmitting business, Envios Express. These transactions avoided Bank Secrecy Act reporting requirements by using multiple fake wire senders and multiple enlisted recipients in Honduras.
In addition to the prison term, Judge Gonzalez Rogers also ordered the defendant to serve four years of supervised release.
Acting United States Attorney Patrick D. Robbins, Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris, and IRS Criminal Investigation (IRS-CI) Special Agent in Charge of the Oakland Field Office Linda Nguyen made the announcement.
This prosecution is part of Operation Take Back America, which streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs). 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.
Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Amanda Martinez and Andy Ding. The prosecution is the result of a year-long investigation by the DEA and IRS-CI.
Tahlequah Resident Pleads Guilty to Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Laura Gema Carroll, age 36, of Tahlequah, Oklahoma, entered a guilty plea to one count of Felon in Possession of Firearm and Ammunition.
The Indictment charged Carroll with knowingly possessing one .380ACP caliber, semi-automatic pistol and five rounds of .380ACP caliber ammunition on June 12, 2024, 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 Tahlequah Police Department.
The Honorable D. Edward Snow, 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. Carroll will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorneys Rachel Geizura and T. Cameron McEwen represented the United States.
Statement of Acting U.S. Attorney Matthew Podolsky on the Conviction of Sev Side / DOA Leader Kevin Perez, A/K/A “Kay Flock”Read the Press Release
“Kevin Perez, a/k/a “Kay Flock,” was the leader of a neighborhood street gang known as Sev Side / DOA, and with that gang, he committed a series of gang-motivated shootings. Perez, a drill rapper, instilled fear across the community with his violent actions, and then threatened rivals, bragged about shootings, and taunted victims in his rap lyrics. But as a unanimous jury has now found, Perez can no longer hide behind his music, and instead will be held to account for his violent crimes. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, the cycle of violence that Perez engaged in is over. This Office remains resolute in its commitment to prosecuting gang members who sow fear and spread violence on our city streets.”
Software company settles fraud case for $524,947Read the Press Release
ALEXANDRIA, Va. – Vianair Inc., an airport management software company located in Naples, Florida, agreed to pay $225,000 and forgo $299,947 remaining unpaid on a National Science Foundation (NSF) grant to settle False Claims Act allegations involving statements made in connection with a Small Business Innovation Research (SBIR) grant awarded by the NSF.
The government alleged that Vianair performed grant work outside of the United States, which is expressly prohibited by the terms and conditions of the grant funding agreement and interim reports, and contrary to Vianair’s grant proposal, and, separately, that Vianair failed to maintain timesheets on NSF-related grant efforts, while falsely certifying compliance with both conditions. NSF suspended payments on the grant when it learned of the conduct. At the time, $299,947 was the balance remaining on the grant that had not yet been transmitted to Vianair.
“The requirement that research associated with these grants be conducted in the United States is intended to protect our nation’s security, and the recordkeeping requirements are important to protect taxpayer resources,” said Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia. “When grantees fail to comply with those requirements, my office will pursue ardent enforcement to safeguard American citizens and the public treasury. I thank the NSF Office of Inspector General for ensuring that grant requirements are faithfully observed.”
“SBIR awards are highly competitive grants intended to fund American-owned small businesses to conduct U.S.-based research that will lead to the commercialization of innovative new products and services,” said Megan E. Wallace, Acting Inspector General of the National Science Foundation. “This investigation resulted from the NSF Office of Inspector General’s proactive initiative to protect national security interests by identifying SBIR recipients who improperly operate outside the U.S. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds. I commend the U.S. Attorney’s Office for supporting this effort.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the National Science Foundation Office of Inspector General.
The matter was investigated by Assistant U.S. Attorney Gina Kim.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
The civil claims settled are allegations only; there has been no determination of civil liability.
Six Defendants Charged with Attempting to Steal Approximately $80 Million in Government Check Fraud SchemeRead the Press Release
Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Harry T. Chavez, Jr., the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations (“IRS-CI”), announced the unsealing of a four-count criminal Indictment charging SHAN ANAND, NOSAKHARE NOBORE, NICHOLAS PAPPAS, LEONARD UJKIC, SOLOMON ALUKO, a/k/a “D1 ReallyRich,” and JORGE GONZALEZ with a scheme to fraudulently obtain checks and launder the proceeds. Many of the checks were funds provided by the government for COVID-19 relief that the defendants stole before depositing into bank accounts opened using sham businesses or stolen or fake identities. In total, the defendants attempted to steal approximately $80 million and succeeded in depositing approximately $50 million.
Acting U.S. Attorney Matthew Podolsky said: “We allege that the defendants stole tens of millions of dollars in COVID-19 relief and other checks, and even used a ‘Fraud Bible’ containing instructions for committing fraud. This Office will not tolerate the exploitation of programs designed to support the public in times of crisis, and we and our law enforcement partners will hold those responsible to full account.”
FBI Acting Assistant Director Leslie R. Backschies said: “These six defendants allegedly used sham businesses, stolen, and fake identities to operate a multi-year check fraud scheme, resulting in $50 million in illicit funds being deposited into their accounts. The defendants brazenly attempted to exploit multiple United States government programs in their attempts to illegally enrich themselves. The FBI will continue to ensure fraudsters attempting to lie, cheat, and steal from the Government answer for their crimes in the criminal justice system.”
IRS Special Agent in Charge Harry T. Chavis, Jr. said: “This group of suspects openly communicated about their fraud, taking pride in the multiple schemes that stole nearly $50 million from the American public. They lied and cheated a benefits system meant to help struggling businesses that need it, all while stealing checks from agencies who assist the elderly and veterans. This gang of ‘bag hunters’ will now face justice for multiple charges. This time, the U.S. government were the hunters, and the arrests in this massive fraud case are ‘in the bag.’”
As alleged in the Indictment:[1]
From 2021 to 2025, the six defendants worked together to steal money from the U.S. government, banks, and individuals. The defendants opened bank accounts using fake or stolen identity information for individuals or businesses, and were assisted in doing so by one of the defendants who was a teller at a major bank. From the inside, he worked to open or alter bank accounts to advance the defendants’ fraud.
The defendants then deposited fraudulently obtained or counterfeit checks into the accounts. Many of the checks were issued by the U.S. Treasury (the “Treasury”) based on false and fraudulent filings with the Internal Revenue Service (“IRS”) in connection with the Employee Retention Credit (“ERC”) and Qualified Sick Leave Wages (“QSLW”) credit. The ERC is a refundable tax credit for businesses and tax-exempt organizations that had employees during and were affected by the COVID-19 pandemic. Employers must have paid qualified wages to claim the credit. The QSLW credit is a related credit that was also established in response to the COVID-19 pandemic. The defendants did not operate businesses that would have qualified for these credits. The businesses they used to open bank accounts and apply for the credits were fake or sham businesses.
Other Treasury checks passed as part of the defendants’ scheme were payments for different tax refunds, including personal and corporate income tax refunds. Still other Treasury checks were associated with programs at other government agencies such as the Department of Veterans of Affairs and the Social Security Administration. Some of the checks involved in the scheme—both Treasury checks and other business or individual checks—were stolen from the mail or elsewhere. Other checks were partially or completely forged.
Once the checks were deposited, the defendants withdrew the fraudulently obtained funds in cash or transferred them to other banks accounts under their control. Over the course of their scheme, the defendants attempted to obtain approximately $80 million in total. They succeeded in depositing approximately $50 million.
The defendants communicated openly about their fraud. One defendant sent another a video of a screen recording of a document or documents titled “✅ 2021 Fraud Bible ✅”, shown in the following image:
This “Fraud Bible” contained instructions on how to engage in various forms of fraud, including credit card fraud, ATM fraud, and mobile cash transfer fraud.
Since at least 2021, some members of the conspiracy have worn clothing items bearing a logo depicting a sack of money running along with the phrase “Bag Hunter.”
Certain members of the conspiracy wore this logo while engaging in criminal conduct. For example, the following image shows NOBORE withdrawing fraudulently obtained funds while prominently displaying the Bag Hunters logo:
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ANAND, 34, of Queens, New York; NOBORE, 29, of Edgewater, New Jersey; PAPPAS, 28, of Miami, Florida; UJKIC, 44, of Ft. Lauderdale, Florida; ALUKO, 29, of Hackensack, New Jersey; and GONZALEZ, 28, of North Bergen, New Jersey, are each charged with conspiracy to commit wire fraud and bank fraud, which carries a maximum sentence of 30 years in prison; conspiracy to commit money laundering and engaging in a monetary transaction in property derived from specific unlawful activity, which carries a maximum sentence of 20 years in prison; conspiracy to defraud the government, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Podolsky praised the outstanding work of the FBI and IRS-CI. Mr. Podolsky also thanked the U.S. Postal Inspection Service and the New York City Police Department for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime and Illicit Finance and Money Laundering Units. Assistant U.S. Attorneys Maggie Lynaugh, Steven J. Kochevar, and Qais Ghafary are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
u.s._v._anand_et_al._indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.
Shelby County Man Sentenced to Fifteen Years in Prison for Multiple RobberiesRead the Press Release
BIRMINGHAM, Ala. – A Shelby County man has been sentenced for multiple robberies, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Nashville Field Division Acting Special Agent in Charge Jason Stankiewicz.
U.S. District Court Judge Anna M. Manasco sentenced Dorian Blake Bivins, 20, of Alabaster, Alabama, to 180 months in prison. In September 2024, Bivins pleaded guilty to Hobbs Act Robbery and use of a firearm during a crime of violence.
According to the plea agreement, Bivins attempted robberies of three businesses in Alabaster—Whataburger, Shell, and Chevron—over a span of 12 days in May and June 2023. Bivins committed two of the offenses while armed with a pistol and discharged the firearm during his final attempted robbery.
The ATF investigated the case along with the Alabaster Police Department. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.
Sex offender sentenced for transporting illegal alienRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old Brownsville man has been ordered to prison for unlawfully transporting an illegal alien, announced U.S. Attorney Nicholas J. Ganjei.
A federal jury deliberated for approximately 40 minutes before finding Juan Andres Vasquez guilty Nov. 6, 2024, following a one-day trial.
U.S. District Judge David S. Morales has now ordered Vasquez to serve 21 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Vasquez is a lifetime sex offender with a troubling criminal history including assault.
On Aug. 2, 2024, Vasquez drove to the Javier Vega Jr. Border Patrol (BP) checkpoint accompanied by two individuals. After an immigration inspection, authorities determined the front-seat passenger was illegally present in the United States.
At trial, Vasquez claimed the illegal alien asked him for a ride. However, the illegal alien testified that Vasquez told him to hide his Mexican identification card. Testimony also revealed he was dropped off at a location where Vasquez was waiting for him.
Vasquez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
BP conducted the investigation. Assistant U.S. Attorneys Liesel Roscher and Ashley A. Pruitt prosecuted the case.
Scotia Man Sentenced for Groping a Nursing Student at Stratton VARead the Press Release
ALBANY, NEW YORK – Danning Lake, age 87, of Scotia, New York, was sentenced to 1 year of probation today for abusive sexual contact.
United States Attorney John A. Sarcone III; Thomas Gibbons, Chief of the Department of Veterans Affairs Police at the Stratton VA Medical Center; and Special Agent in Charge Christopher F. Algieri, of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General, made the announcement.
Lake admitted that he grabbed the breast of a nursing student at the Stratton VA as she was giving him care on February 29, 2024. Lake then asked the student nurse, “did you like that?” and told her “they feel nice.” When the Veterans Affairs Police Officer spoke to Lake, he said that he would do the same thing again if he had the opportunity. Lake acknowledged that his mental status was not altered by medication, age, or illness and that he groped the nursing student for his own sexual gratification. As a result of this conviction, Lake must register as a sex offender.
The Department of Veterans Affairs Police Department and Office of Inspector General investigated the case, which Assistant U.S. Attorneys Jonathan S. Reiner and Tamara B. Thomson prosecuted.
Rochester trucking company owner convicted by a federal jury of lying to the Department of Transportation going to prisonRead the Press Release
ROCHESTER, N.Y.- U.S. Attorney Michael DiGiacomo announced today that Tony Kirik, a/k/a Anatoliy Kirik, 43, of Rochester, NY, who was convicted by a federal jury of making false statements to the Federal Motor Commission Safety Administration (FMCSA), U.S. Department of Transportation, and conspiring to do the same, was sentenced to serve 45 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Melissa M. Marangola, who handled the prosecution of the case, stated that Kirik operated a multiple million-dollar trucking business called Dallas Logistics. When applying to the FMCSA for authority to operate as an interstate carrier, Kirik submitted false documents regarding the safety rating of his trucking business. Further, when undergoing compliance reviews and safety audits by the FMSCA. Kirik provided false statements and information regarding the many safety violations incurred by his business. To trick the FMSCA regarding the safety of this trucking business, Kirik started new companies using various family members’ names and an employee’s name to make it appear that these new companies were independent and not affiliated with the prior business that incurred the negative safety ratings, when in fact, the new company was merely an extension of the prior company. At trial, it was shown that Kirik’s actions jeopardized the safety of the nation’s highways and roadways from unsafe tractor trailers.
The sentencing is the result of an investigation by Special Agents of the Department of Transportation, Office of Inspector General, under the direction of Special Agent-in-Charge Christopher Scharf, Northeast Region, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Harry Chavis, Acting Special Agent-in-Charge, New York Field Office.
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