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Wednesday 24 June 2026
Homeland Security Task Force Case Sends Sibling Co-Conspirators to Federal Prison for Roles in Transnational Criminal OrganizationRead the Press Release
As the result of a Homeland Security Task Force (HSTF) investigation, a brother and sister were both sentenced this week to life in prison and 33 years in prison, respectively, for their roles in a large-scale alien smuggling organization (ASO) directly linked to the Cartel De Jalisco Nueva Generacion (CJNG).
“The individuals sentenced today for coordinating these crimes are a stark reminder of the deadly consequences of human trafficking across the southern border,” said Acting Attorney General Todd Blanche. “Under this Administration and this Department of Justice, such heinous criminal conduct and collaboration with deadly Mexican cartels will not be tolerated.”
“The reach of Mexican drug cartels does not stop at the border,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “This violent, cartel-backed Alien Smuggling Organization operated for years in this country, endangering the lives and livelihood of so many. This case shows why our goal of eliminating Mexican drug cartels and their affiliates is worthy, necessary, and in the best interest of the American people. Working shoulder-to-shoulder with our HSTF partners, the Western District of Texas will continue to aggressively lead the way.”
“HSI Eagle Pass’s unwavering commitment to justice has resulted in the lengthy imprisonment of two ruthless human smugglers whose actions led to hostage taking and the tragic loss of life,” said Acting Special Agent in Charge John A. Pasciucco of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Antonio. “This sentencing sends a powerful message: HSI will never tolerate those who exploit and endanger innocent lives for profit. The success of this HSTF investigation highlights the vital importance of collaboration. Our agents, working closely with dedicated law enforcement partners, dismantled Guzman’s criminal enterprise and ensured they face the full weight of justice. By combining our resources and expertise through the HSTF, we safeguard our communities and bring the most dangerous offenders to justice.”
According to court documents, Edgar Daniel Guzman, 32, of Albertville, Alabama, was a leader/organizer of a Transnational Criminal Organization that operated in Mexico and across the southern United States — including Alabama, Louisiana, Oklahoma, and Texas — since at least 2021. Between 2021 and 2026, the ASO committed numerous acts of violence including murder, attempted murder, home invasion, and armed kidnapping. In his role, Guzman coordinated several failed alien smuggling attempts on behalf of the ASO and maintained CashApp accounts that revealed direct ties to co-conspirators and financial transactions connecting to corresponding smuggling events. Guzman pleaded guilty on July 21, 2025, to one count of conspiracy to commit hostage taking. He was sentenced on June 22 to life in prison.
Guzman’s sister, Jesika Guzman-Garcia, 35, an illegal alien from Guanajuato, Mexico, was one of many co-conspirators in the ASO. She was tied to a smuggling event that resulted in the deaths of the smuggling load driver and two illegal aliens. As in her brother’s case, an investigation revealed that a CashApp account belonging to Guzman-Garcia was linked to several failed human smuggling events within the Western District of Texas. Using the app, Guzman-Garcia made 459 payments to individuals from July 25, 2018, to April 1, 2023, totaling $84,046. Guzman-Garcia pleaded guilty on Aug. 7, 2025, to one count of conspiracy to transport illegal aliens resulting in death. She was sentenced on June 23 to 405 months in federal prison.
Flipped vehicle from failed smuggling attempt that resulted in the deaths of three people.Chief U.S. District Court Judge Alia Moses for the Western District of Texas sentenced Guzman and Guzman-Garcia and presides over the case. More related sentencings are scheduled in the coming months.
Assistant U.S. Attorney Brett Miner for the Western District of Texas prosecuted the case.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF comprises agents and officers from FBI; ICE HSI; DEA; ATF; U.S. Border Patrol; USMS; U.S. Postal Inspection Service; Department of Transportation; IRS Criminal Investigation; Texas Department of Public Safety; as well as local police departments and sheriff’s offices, with the prosecution being led by the United States Attorney’s Office for the Western District of Texas.
Helena man sentenced to 15 years for selling meth while armed with a handgunRead the Press Release
GREAT FALLS – A Helena man who was selling methamphetamine and using a handgun for protection was sentenced today to 15 years in prison, followed by five years of supervised release, Acting U.S. Attorney Mark Steger Smith said.
Kyle Andrew Bailey, 43, pleaded guilty in January 2026 to one count of possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that Bailey was selling methamphetamine and fentanyl while carrying a small handgun for personal protection.
Bailey was riding in a car that was pulled over by law enforcement on July 11, 2025, and refused to give his name. Deputies ultimately identified him and learned he had three warrants for his arrest; Bailey ran from the car and was quickly caught. Upon his arrest, deputies discovered Bailey was carrying a .22 caliber handgun, two bags containing 50 fentanyl pills, and a bag of meth. Bailey told deputies he had more meth in the car. Deputies found three bags of meth, 17 zip lock bags, a digital scale, four syringes, and five cell phones. In all, Bailey had 98 grams of meth and 6.7 grams of fentanyl.
Bailey told law enforcement he had stolen a pound of meth in Billings and was selling it to survive while living out of his car. He bought the handgun with a couple grams of meth and said he felt safer with it because “no one’s going to mess with you if you have a gun,” describing it as his security blanket.
The U.S. Attorney’s Office prosecuted the case. The Missouri River Drug Task Force including the Lewis & Clark County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Helena Police Department, and the Montana Division of Criminal Investigation, and the DEA conducted the investigation.
Great Falls man sentenced to 12 years in prison for trafficking over 50 pounds of methRead the Press Release
GREAT FALLS – A Great Falls man who had 30 pounds of meth hidden in his home and was pulled over with another 25 pounds of meth in his car was sentenced today to 12 years in prison, followed by five years of supervised release, Acting U.S. Attorney Mark Steger Smith said.
Cody Allen Davidson, 39, pleaded guilty in April 2026 to one count of conspiracy to possess with intent to distribute methamphetamine.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that Davidson and his partner, Diane Walters, had been trafficking methamphetamine and that searches of Davidson’s home and car turned up bundles of meth, cash, and firearms.
The case began in May 2025 when a source notified the DEA that Davidson had recently received a resupply of methamphetamine that was stored at his Great Falls residence. Using that information, law enforcement obtained a warrant and searched Davidson’s home. He was there when officers arrived and agreed to show them “everything,” opening up a gun safe that held roughly 30 pounds of meth, four guns and $21,479 in cash. Davidson told authorities the cash was from selling about 7 pounds of meth and that he’d been trafficking it for the last six to eight months.
Two months later, on July 10, 2025, Davidson’s car was spotted traveling north of Las Vegas. Law enforcement suspected he was on a drug resupply run and put out an alert for the vehicle. The next day, law enforcement in Idaho Falls, Idaho, spotted the car and pulled it over – Walters was driving and Davidson was the passenger. Hidden in the car, officers found roughly 25 pounds of meth.
Assistant U.S. Attorney Jeff Starnes prosecuted the case. The DEA and Great Falls Police Department conducted the investigation.
Fresno, California Man Sentenced to over 4 Years in Federal Prison for Drug Conspiracy ChargeRead the Press Release
RAPID CITY - United States Attorney Ron Parsons announced today that U.S. District Court Judge Camela C. Theeler has sentenced a Fresno, California, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on June 22, 2026.
Alonso Molina-Corona, 43, was sentenced to four years and two months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Molina-Corona was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in August 2025. He pleaded guilty on March 9, 2026.
The charges stem from a vehicle stop made by a South Dakota Highway Patrol trooper of a vehicle driven by Molina-Corona on I-90 in August 2025. Inside the defendant’s vehicle, officers discovered over 92 kilos (approximately 200 lbs.) of methamphetamine. The defendant was found to have been transporting the drugs from the west coast for distribution in the Midwest as part of a conspiracy of which he was part. Ultimately, law enforcement authorities deemed Molina-Corona a courier of the drugs.
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).
This case was investigated by the Drug Enforcement Administration, South Dakota Division of Criminal Investigation, and the South Dakota Highway Patrol. Assistant U.S. Attorney Paige Petersen prosecuted the case.
Molina-Corona was immediately remanded to the custody of the U.S. Marshals Service.
Four Individuals Sentenced to Prison for Insider Trading SchemeRead the Press Release
Two individuals were sentenced yesterday for their participation in a scheme to trade securities based on material nonpublic information about the $3.2 billion merger of two companies, which resulted in illicit profits of over $600,000. Two other individuals were previously sentenced in connection with this scheme on May 4. Specifically, Rouzbeh Ross Haghighat was sentenced to 40 months in prison, Kirstyn Pearl was sentenced to six months in prison, Seyedfarbod “Fabio” Sabzevari was sentenced to 14 months in prison, and James Roberge was sentenced to two months in prison.
“Rouzbeh Ross Haghighat abused his position as a board member of a publicly traded company to exploit his insider knowledge of an upcoming acquisition. He encouraged his friends and family to buy company shares so that they could reap hundreds of thousands of dollars off of that inside information to the detriment of investors,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Insider trading undermines fairness in the economy and American investors. The Criminal Division will continue to pursue illegal activity that affects U.S. markets.”
“This case makes one thing clear: if you think you can game the system using insider information, think again,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday’s sentencing proves no one is above the law. The U.S. Postal Inspection Service will not hesitate to pursue and bring to justice anyone who tries to corrupt the integrity of our financial markets.”
According to court documents and evidence presented at trial, Haghighat, 62, of Massachusetts; Pearl, 36, of Puerto Rico; Sabzevari, 31, of California; and Roberge, 71, of Massachusetts, illegally bought the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Haghighat served on the board of directors. In May 2023, while in his position as a board director, Haghighat got important inside information about another pharmaceutical company’s (Company-2) proposed acquisition of Company-1, including sensitive deal terms. Haghighat then purchased securities and tipped off others about the deal — including Pearl, Sabzevari, and Roberge — so that they would purchase securities of Company-1, which they did.
In May 2023, Company-2 made a confidential proposal to acquire Company-1 at a price per share above the then-current market value. The two companies then negotiated an agreement for the acquisition, which was announced in June 2023, causing the share price of Company-1 to spike. Collectively, the defendants profited more than $600,000 from their purchases of Company-1 securities based on their insider information.
In December 2025, Haghighat was convicted of one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. Pearl was convicted of one count of securities fraud, one count of insider trading, and one count of conspiracy.
The U.S. Postal Inspection Service investigated the case.
Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section prosecuted the case, with substantial assistance from Assistant Chief Laura Connelly.
Four Charged in Nebraska as Part of National Health Care Fraud TakedownRead the Press Release
On Tuesday, June 23, 2026, United States Attorney Lesley A. Woods announced criminal charges against four defendants in connection with alleged schemes to defraud Medicare and Medicaid. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges include billing health care benefit programs for services not rendered and overcharging for medication, fraud involving mental health care, and fraudulent claims in relation to durable medical equipment.
The charges announced Tuesday by U.S. Attorney Woods are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Tuesday’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Tuesday’s coordinated enforcement action involved a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individuals were charged in the District of Nebraska:
- Angie Albert, 50, and Brent Conaway, 51, both of Hinton, Oklahoma, were charged by indictment with conspiracy to commit health care fraud, health care fraud, and money laundering, in connection with a scheme to bill health care benefit programs for services not rendered and to overcharge for medication. As alleged in the indictment, Albert and Conaway submitted and caused to be submitted to Medicare and Medicaid false claims for treatment with Spravato, a ketamine nasal spray. The false claims totaled approximately $4,451,498.44 and resulted in overpayments totaling approximately $976,978.82. Assets seized and subject to forfeiture to date include a motorcycle, two vehicles, and an RV. Additionally, the defendants’ residence is subject to forfeiture. The case is being prosecuted by Assistant U.S. Attorneys Dan Packard and Kelli Ceraolo of the District of Nebraska.
- Phyllis M. Rooney, 67, of Kapolei, Hawaii, was charged by information with false statements in connection with health care services related to mental health counseling services that she did not provide. The defendant caused a loss to Nebraska Medicaid of $92,582.43. The case is being prosecuted by Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska.
- Cassi Wigington, 49, of Omaha, Nebraska, was charged by information with health care fraud in connection with a scheme to submit fraudulent claims to Nebraska Medicaid and other insurers for durable medical equipment, specifically, custom-made breast protheses. Wigington billed for products that patients never received, causing the submission of fraudulent claims to Nebraska Medicaid and other insurers in the amount of $445,455.37. The case is being prosecuted by Assistant U.S. Attorney Sean P. Lynch of the District of Nebraska.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virginia participated in the investigation of federal cases announced Tuesday.
Descriptions of each case involved in Tuesday’s enforcement action are available on the Department’s website here.
The District of Nebraska, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); FBI; and Nebraska Attorney General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Defiance Man Sentenced to More Than 7 Years in Prison for Sexually Abusing TeenagerRead the Press Release
PHOENIX, Ariz. – Earlier this month, Ernest Larry Tabaha, 65, of Fort Defiance, AZ, was sentenced by U.S. District Judge Steven P. Logan to 87 months in prison, followed by 180 months of supervised release. Tabaha previously pleaded guilty to sexually abusing a teenager on the Navajo Nation.
In 2024, Tabaha provided alcohol to a teenaged girl until she became highly intoxicated and passed out. Tabaha then engaged in a sexual act with the victim while she was unconscious. Tabaha is an enrolled member of the Navajo Nation.
The FBI Phoenix Division’s Flagstaff office and the Navajo Nation Division of Public Safety conducted the investigation. The U.S. Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-25-8028-PCT-SPL
RELEASE NUMBER: 2026-106_Tabaha# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former soldier sentenced to 18 years in prison for coercing minors to produce child sexual abuse materialRead the Press Release
NEWPORT NEWS, Va. – A former U.S. Army soldier stationed at Joint Base Langley-Eustis was sentenced today to 18 years in prison for coercion and enticement of a child.
According to court documents, Isaac James Guinsler, 25, used Snapchat and Apple accounts to share child sexual abuse material (CSAM) and communicate with minor victims. On Guinsler’s electronic devices, investigators identified 297 CSAM images and three CSAM videos as well as voluminous sexually explicit messages exchanged with individuals who self-identified to Guinsler as minors. Investigators identified and interviewed two minor victims, aged 13 and 16. Guinsler coerced the victims to engage in sexual activity, exchanged sexually explicit images with them, and obtained CSAM from them.
Department of the Army Criminal Investigation Division, Washington Field Office, investigated this case with assistance from the York-Poquoson Sheriff’s Office
Assistant U.S. Attorney Peter G. Osyf prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:26-cr-7.
Former San Diego State University Police Sergeant Sentenced to Almost 4 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
LOS ANGELES – A former sergeant with the San Diego State University Police Department was sentenced today to 46 months in federal prison for possessing more than 600 images that contained sexually explicit videos and images of child sexual abuse material (CSAM).
Paul Aurelio McClain, 47, of Menifee, was sentenced by United States District Judge Sherilyn Peace Garnett, who also ordered McClain to be placed on supervised release for 20 years following his release from federal prison, and ordered him to pay a total of $22,100 in special assessments, including a $17,000 special assessment pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
McClain pleaded guilty on March 18 to one count of possession of child pornography. He has been in federal custody since March 2025.
According to his plea agreement, in July and August of 2024, law enforcement conducting an undercover operation on a peer-to-peer network determined that an Internet Protocol (IP) address linked to McClain’s home in Riverside County had been used to possess a sexually explicit video of a girl who appeared to be approximately 6 to 8 years of age.
In March 2025, federal agents executed search warrants at McClain’s home and seized multiple digital devices, including a hard drive that contained videos of girls who appeared to be approximately 8 to 10 years old.
Law enforcement found other CSAM files during this investigation, totaling more than 600 images.
McClain admitted in his plea agreement that he knowingly possessed CSAM that he downloaded from the internet onto his digital devices, that he knew the depictions involved the use of minors engaged in sexually explicit conduct, and that the CSAM depicted real children who were less than 18 years old.
He further admitted to knowingly possessing CSAM that he downloaded from the internet depicted prepubescent minors and minors who had not yet reached the age of 12 years old.
“Possession and trade of child pornography is abhorrent in and of itself, but it is especially disturbing and unacceptable considering [McClain’s] role in the community as a member of law enforcement and a university police department,” prosecutors argued in a sentencing memorandum.
Homeland Security Investigations investigated this matter with assistance from the West Covina Police Department, the San Bernardino Police Department, the Riverside County Child Exploitation Team, and the San Diego State University Police Department.
Assistant United States Attorneys Cory L. Burleson of the Public Corruption and Civil Rights Section and Sonah Lee of the Major Crimes Section prosecuted this case.
Former NYC Mayoral Chief-Of-Staff and Three Others Charged in Bribery Scheme Related to NYC Migrant Shelter ContractRead the Press Release
A 13-count indictment was unsealed today in federal court in Brooklyn charging Anthony J. Carone, Frank V. Carone, Crystal Chen, and Yan Po Zhu, also known as “Andy Zhu,” for their roles in a bribery scheme that capitalized on funding meant to address New York City’s migrant crisis. The charges include fraud, bribery, money laundering, obstruction of justice, and tax fraud. All four defendants were arrested today and will be arraigned this afternoon before U.S. Magistrate Judge Marcia M. Henry.
Michael Considine, First Assistant United States Attorney for the Eastern District of New York; James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service‑Criminal Investigation, New York (IRS-CI New York); and Nadia I. Shihata, Commissioner, New York City Department of Investigation (DOI), announced the arrests and charges.
“As alleged in the indictment, the defendants exploited the unprecedented migrant crisis in New York City for their own personal gain,” stated First Assistant United States Attorney Considine. “The defendants engaged in a bribery scheme to secure a migrant shelter contract worth millions of dollars from a city agency funded in part by billions of federal dollars. Frank Carone and his brother Anthony Carone are also charged with evading taxes on the proceeds of that scheme. This case demonstrates the Office’s commitment to protecting taxpayer dollars, and holding accountable those who misuse public funds for private gain.”
FBI Assistant Director in Charge Barnacle: “The alleged conspiracy resulted in a massive betrayal of the American taxpayers’ trust by steering millions of dollars in funding for asylum housing in exchange for illegal bribe payments, which were then funneled to cover personal expenses. Frank Carone allegedly influenced and steered business to his brother and associates in exchange for cash. May today’s indictment emphasize the FBI’s determination to root out corrupt officials, and their co-conspirators, who use government funding for personal enrichment.”
“Today’s charges show how these defendants chose greed over integrity, exploiting a humanitarian crisis and siphoning taxpayer funds intended to support vulnerable migrant families. IRS Criminal Investigation worked alongside our law enforcement partners to unravel the financial maneuvers used to conceal bribe payments and evade taxes. Our mission in this case was simple—follow the money, expose corruption, and protect taxpayer funds,” stated IRS-CI New York Special Agent in Charge Chavis.
“The conduct charged in this indictment is the epitome of corrupt self-dealing. The former chief of staff in the prior mayoral administration allegedly used his connections and the influence afforded to him by his public office to push through a multimillion dollar, publicly funded contract to personally enrich himself. By allegedly engaging in this criminal scheme, as charged, all four defendants used the plight of migrants for their own profit, resulting in the inefficient use and approval of a shelter location that could house fewer people than more appropriate locations and required the City to expend additional resources to make up the difference. That two of the defendants are attorneys who allegedly violated their ethical duty to act with honesty and integrity underscores the seriousness of these charged offenses. DOI thanks the U.S. Attorney’s Office for the Eastern District of New York and the New York Offices of the FBI and the IRS for their steadfast partnership on this joint investigation, which highlights the need to protect the integrity of City processes and public funds, particularly during a crisis,” stated DOI Commissioner Shihata.
As alleged in court filings, beginning in approximately 2022, Anthony Carone and Frank Carone—who are brothers and attorneys both admitted to practice in the State of New York—Crystal Chen, and Yan Po Zhu, devised and executed a scheme to exploit the City’s migrant crisis for their personal profit.
In 2022, New York City experienced an unprecedented influx of migrant asylum seekers. New York City was a “right to shelter” city, meaning the City was legally required to provide shelter to all homeless individuals who sought it. Because the volume of migrant asylum seekers who needed housing outpaced the City’s existing shelter system, the City instituted a process for contracting with local hotels to house migrant asylum seekers (the Emergency Shelter Contracts). Through the Emergency Shelter Contracts, the City agreed to rent entire hotels for one year or more and utilize the hotels as emergency shelters to house migrant asylum seekers.
To identify and evaluate sites for potential Emergency Shelter Contracts, employees from the City’s Department of Social Services (DSS) solicited and reviewed proposals from local hotels. Following its own due diligence, DSS recommended to City Hall that the City enter into Emergency Shelter Contracts with certain local hotels. To fund the Emergency Shelter Contracts and other asylum services, the City received over approximately $1.8 billion of federal grant money in 2022.
As the City’s migrant crisis reached its peak in 2022, Frank Carone accepted a series of bribe payments from Zhu and Chen to steer a multi-million-dollar shelter contract to the Microtel, a hotel in Long Island City, Queens, which allowed the Microtel to operate as an emergency migrant shelter. Zhu, a wealthy businessman, owned the Microtel, and Chen was Zhu’s business manager.
Repeatedly throughout 2022, DSS rejected the Microtel as a suitable location to be run as a migrant shelter. Frank Carone, however, used his official position as Chief of Staff to intercede on the Microtel’s behalf in exchange for $120,000 of bribe payments from Zhu and Chen. Despite DSS’s prior independent assessment that the Microtel was not a suitable location for a temporary shelter, the Microtel was ultimately awarded an Emergency Shelter Contract due to Frank Carone’s directive to DSS to consider the Microtel for such a contract. The Microtel ultimately received an Emergency Shelter Contract worth $6,825,000, which inured to the financial benefit of Zhu and Chen.
To conceal the criminal nature of the bribe payments, Zhu and Chen directed the bribe payments to a bank account controlled by Anthony Carone in the name of his law firm (the Law Firm Account). The bribe payments were commingled with legal fees from other clients that Frank Carone referred to Anthony Carone while Frank Carone served as Chief of Staff. Anthony Carone then steered the majority of the funds paid into the Law Firm Account to Frank Carone, including by paying Frank Carone’s personal credit card bills while Frank Carone served as Chief of Staff. Anthony Carone also used the funds paid into the Law Firm Account to write checks payable to Frank Carone. In addition, Anthony Carone, Zhu, and Chen executed a sham retainer agreement to make the bribe payments to Frank Carone appear to be legitimate legal fees paid to Anthony Carone’s law firm. Notably, Anthony Carone did not inform his law firm partners that Zhu had allegedly retained Anthony Carone or the law firm, nor did Anthony Carone inform his law firm partners that he was facilitating cash payments from the Law Firm Account to Frank Carone including while Frank Carone was Chief of Staff.
The sham retainer agreement called for Zhu and Chen to make bribe payments totaling $120,000. After those payments were made, Chen emailed Anthony Carone and requested to terminate the sham retainer agreement. Despite the fact that the payments outlined in the sham retainer agreement had been made, Anthony Carone responded seeking additional payments. After no further payments were made, Frank Carone communicated with Zhu and expressed that he was “not happy” and would “not discuss[] [any future deals] until past is worked out.” In response, Zhu stated that he had “asked my partners to pay you for a year.”
Neither Frank Carone nor Anthony Carone reported their income from the criminal scheme to the IRS in their initial 2022 tax filings. Nor did Frank Carone report this outside income to the NYC Conflicts of Interest Board as required. In 2025, however, after learning there was a federal investigation into his finances, Anthony Carone amended his 2022 personal and law firm tax filings to declare as income the client fees he received in the Law Firm Account.
Similarly, in July 2024, after Frank Carone and Anthony Carone became aware of the federal investigation, they obstructed justice by fabricating evidence to create the false impression that the payments from the Law Firm Account to Frank Carone’s personal credit card were personal loans instead of a conduit to conceal bribe payments. Specifically, Frank Carone and Anthony Carone created and executed a document purporting to be a promissory note, which they backdated to January 2022, and subsequently provided to federal investigators.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. If convicted of the charges, the defendants each face up to 20 years in prison.
The government’s case is being handled by the Office’s Public Integrity Section and the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Sara K. Winik, Adam R. Toporovsky, and Eric Silverberg are in charge of the prosecution, with assistance from Paralegal Specialists Johnson Peow and Daniel Arakawa.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is focused on investigating and prosecuting those who commit fraud against the American people.
The Defendants:
ANTHONY J. CARONE
Age: 54
New York, NY and East Hampton, New YorkFRANK V. CARONE
Age: 56
New York, NY and Boca Raton, FloridaCRYSTAL CHEN
Age: 39
East Williston, New YorkYAN PO ZHU (also known as “Andy Zhu”)
Age: 51
Glen Head, New YorkE.D.N.Y. Docket No. 26-CR-177 (KAM)
26-cr-177_indictment.pdf 2026.06.24_carone_et_al._govt_bond_letter_26-cr-177.pdfFormer CEO of Special Purpose Acquisition Company Sentenced to PrisonRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that VADIM KOMISSAROV, the former Chief Executive Officer of Trident Acquisitions Corp. (“TDAC”), a publicly traded special purpose acquisition company (“SPAC”), was sentenced to three years in prison for committing securities fraud in connection with a scheme to defraud TDAC investors and investors in TDAC’s successor company, Lottery.com Inc., by publicly reporting false and misleading revenue and business information. KOMISSAROV pled guilty to one count of securities fraud on February 3, 2026, before U.S. District Judge Alvin K. Hellerstein, who imposed today’s sentence.
“Vadim Komissarov, the former CEO of Trident Acquisitions Corp., is going to prison for defrauding his shareholders,” said U.S. Attorney Jay Clayton. “This Office will continue to work with our law enforcement partners to hold executives of public companies accountable when they commit fraud and lie about it.”
According to the allegations contained in the Indictment and statements made in public filings and public court proceedings:
From November 2020 through May 2022, KOMISSAROV engaged in a scheme to defraud investors in TDAC and investors in TDAC’s successor company, Lottery.com (the “Revenue Scheme”). In short, KOMISSAROV and his confederates created the false appearance of revenue-generating business activity for AutoLotto, in advance of a vote by TDAC shareholders on a proposed merger between TDAC and AutoLotto, and later for Lottery.com through a series of sham transactions, including a fraudulent $9 million roundtrip transaction that KOMISSAROV engineered using the alias “Vlad.”
KOMISSAROV later schemed to obstruct the U.S. Securities and Exchange Commission (“SEC”)’s investigation. For example, during a call with two Lottery.com executives, KOMISSAROV said he wanted to “sync” his “clock[]” with them and align on a false and misleading narrative that concealed his involvement in some of the sham transactions that were part of the Revenue Scheme. KOMISSAROV warned the Lottery.com executives, “guys, you do understand, you say that I was involved with this transaction . . . . if Trident and me specifically knew about it, then I am in deep, deep, deep, deep water . . . . So, if you come out and say that I was involved, then I am in deep shit.” KOMISSAROV also gave false and misleading sworn testimony to the SEC about his prior communications with the Lottery.com executives and his involvement in the $9 million fraudulent roundtrip transaction that was part of the Revenue Scheme.
* * *
In addition to the prison term, KOMISSAROV, 54, of New York, New York, was sentenced to three years of supervised release and ordered to forfeit $607,028.70, representing the proceeds of KOMISSAROV’s sale of Lottery.com stock before the market was made aware of the fraudulent scheme.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Justin V. Rodriguez and Matthew R. Shahabian are in charge of the prosecution.
Former BOP Contractor Charged with Accepting Bribes in Exchange for Smuggling ContrabandRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Special Agent in Charge of the Northeast Region Office of the U.S. Department of Justice Office of the Inspector General (“DOJ OIG”), Ryan T. Geach, announced the unsealing of a Complaint charging TERRI LYNN OUTER, a former contractor with the Bureau of Prisons working at a federal prison in Orange County, New York, with bribery, providing or possessing contraband in prison, and conspiracy to provide or possess contraband in prison. OUTER was arrested today and will be presented this afternoon before U.S. Magistrate Judge Victoria Reznik.
“As alleged, Terri Lynn Outer accepted bribes from federal inmates, their family members, and their associates in exchange for smuggling contraband, including drugs, into a federal prison,” said U.S. Attorney Jay Clayton. “The DOJ refuses to tolerate such corruption in our prisons. It makes our prisons more dangerous and makes rehabilitation more difficult.”
“Outer’s alleged attempt to accept bribes and smuggle contraband jeopardized the safety and security of the institution,” said DOJ OIG Special Agent in Charge Ryan T. Geach. “The DOJ OIG is committed to working with its law enforcement partners to bring to justice any Bureau of Prisons employee or contractor who abuses their authority and attempts to smuggle illegal contraband into federal prisons.”
As alleged in the Complaint:(1)
From January 2024 through August 2025, OUTER was employed as a contractor at FCI Otisville, working as a dental assistant. During her time there, OUTER solicited and received payments in return for smuggling contraband and prohibited objects into the prison. OUTER received more than $163,000 from inmates’ family members and associates, and engaged in extensive communications with inmates, former inmates, and their family members and associates, including discussions with an inmate about having the contents of a package weighing over six pounds smuggled into FCI Otisville.
On or about August 1, 2025, prison staff searched a specific supply room used by the Health Services Department at FCI Otisville, to which OUTER had access. During that search, prison staff found contraband that included approximately 3.2 pounds of marijuana and 6.7 pounds of loose-leaf tobacco, pictured below:
Marijuana discovered at FCI Otisville
Tobacco discovered at FCI Otisville
* * *
OUTER, 50, of Montague, New Jersey, is charged with one count of bribery, which carries a maximum sentence of 15 years in prison; one count of providing or possessing contraband in prison, which carries a maximum sentence of five years in prison; and one count of conspiracy to provide or possess contraband in prison, which also carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of OUTER will be determined by a judge.
Mr. Clayton praised the outstanding investigative work of DOJ OIG; the United States Postal Inspection Service, New York Domicile; the FCI Otisville Special Investigative Services; and the New Jersey State Police.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Carmi Schickler and Timothy Deal are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and OUTER is presumed innocent unless and until proven guilty.
^
As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Army soldier pleads guilty to child exploitation crimes committed in Alaska and TexasRead the Press Release
ANCHORAGE, Alaska – A former Army soldier pleaded guilty today to child exploitation crimes he committed while living in Alaska and Texas, including attempted production of child sexual abuse material (CSAM) depicting minors known to him and trafficking of CSAM.
According to court documents, beginning in March 2021, Seth Herrera, 36, previously of El Paso, Texas, started using The Onion Router (TOR) and multiple encrypted and/or privacy-enhancing applications to access, possess, receive and transport CSAM on his cell phones. Herrera would use his phones to browse the dark web, searching for CSAM and use encrypted messaging applications like Telegram and Potato Chat to seek out, access and receive CSAM. He created his own publicly accessible group on one of the platforms where he stored his preferred CSAM files. In six weeks, he uploaded over 100 files to this group.
Across various applications, Herrera participated in hundreds of groups and channels dedicated to CSAM. At the time, the defendant belonged to over 400 Telegram groups and over 1,400 Telegram channels alone. Some groups focused on CSAM involving bestiality, incest and infants/toddlers. Law enforcement seized Herrera’s devices in May 2024 and discovered tens of thousands of CSAM videos and images, depicting sadistic and masochistic content of boys and girls ranging in age from infant through pubescent.
Starting in December 2022, Herrera also used various AI chatbots on Telegram and other websites to create morphed CSAM. In some instances, Herrera would take non-explicit images of children, some known to him personally, and use AI to undress and morph bodies, and make it appear as if they were engaging in sexually explicit conduct.
While fueling his desire for online CSAM, beginning in March 2021, Herrera started taking surreptitious photos and recordings of minors known to him in El Paso, Texas. In December 2022, Herrera captured screenshots of minors via security cameras around his home. In one instance, Herrera used AI chatbots to enhance and improve the quality of an explicit screenshot. In total, Herrera secretly produced at least 28 photos and two videos of one minor from security cameras.
Herrera moved to Alaska in August 2023 and transported all his CSAM files across state lines because they were stored in password protected photo vaults on his phones.
On Aug. 23, 2024, Herrera was arrested at Joint Base Elmendorf-Richardson in Anchorage, Alaska, where he served as a Specialist, after a federal grand jury indicted him on transportation, receipt and possession of child pornography. On May 14, 2025, a grand jury in the Western District of Texas indicted Herrera on production and receipt of child pornography related to his conduct in El Paso. Herrera entered his plea under a global plea agreement after the Western District of Texas transferred their case to the District of Alaska on June 15, 2026.
He is scheduled to be sentenced on Sept. 29 and faces between 15 and 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Michael J. Heyman of the District of Alaska, U.S. Attorney Justin R. Simmons of the Western District of Texas, Acting Homeland Security Investigations (HSI) Seattle Special Agent in Charge April Miller and Special Agent in Charge Michele Starostka of the Army Criminal Investigation Division’s (Army CID) Western Field Office made the announcement.
HSI Seattle and the Army CID investigated the case.
Assistant U.S. Attorney Mac Caille Petursson and Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. CEOS Trial Attorney Rachel L. Rothberg and Western District of Texas Assistant U.S. Attorney Mallory J. Rasmussen prosecuted the case in Texas.
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 Justice.gov/PSC.
###
Former Army Soldier Pleads Guilty to Child Exploitation Crimes Committed in Alaska and TexasRead the Press Release
A former Army soldier pleaded guilty today to child exploitation crimes he committed while living in Alaska and Texas, including attempted production of child sexual abuse material (CSAM) depicting minors known to him, and trafficking of CSAM.
HerreraAccording to court documents, beginning in March 2021, Seth Herrera, 36, previously of El Paso, Texas, started using The Onion Router (TOR) and multiple encrypted and/or privacy-enhancing applications to access, possess, receive, and transport CSAM on his cell phones. Herrera used these phones to browse the dark web and used encrypted messaging applications to seek out, access and receive CSAM. He created his own publicly accessible group on one of the platforms where he stored his preferred CSAM files. In six weeks, he uploaded over 100 files to this group.
Across various applications, Herrera participated in hundreds of groups and channels dedicated to CSAM. At the time, the defendant belonged to over 400 Telegram groups and over 1,400 Telegram channels alone. Some groups focused on CSAM involving bestiality, incest, and infants/toddlers. Law enforcement seized Herrera’s devices in May 2024 and discovered tens of thousands of CSAM videos and images, depicting sadistic and masochistic content of boys and girls ranging in age from infant through pubescent.
Starting in December 2022, Herrera also used various AI chatbots on Telegram and other websites to create morphed CSAM. In some instances, Herrera would take non-explicit images of children, some known to him personally, and use AI to undress and morph bodies, and make it appear as if they were engaging in sexually explicit conduct.
While fueling his desire for online CSAM, beginning in March 2021, Herrera started taking surreptitious photos and recordings of minors known to him in El Paso, Texas. In December 2022, Herrera captured screenshots of minors via security cameras around his home. In one instance, Herrera used AI chatbots to enhance and improve the quality of an explicit screenshot. In total, Herrera secretly produced at least 28 photos and two videos of one minor from security cameras.
Herrera moved to Alaska in August 2023 and transported all his CSAM files across state lines because they were stored in password-protected photo vaults on his phones.
On Aug. 23, 2024, Herrera was arrested at Joint Base Elmendorf-Richardson in Anchorage, Alaska, where he served as a Specialist, after a federal grand jury indicted him on transportation, receipt and possession of child pornography. On May 14, 2025, a grand jury in the Western District of Texas indicted Herrera on production and receipt of child pornography related to his conduct in El Paso. Herrera entered his plea under a global plea agreement after the Western District of Texas transferred their case to the District of Alaska on June 15, 2026.
He is scheduled to be sentenced on Sept. 29 and faces a minimum penalty of 15 years in prison and a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Michael J. Heyman for the District of Alaska, U.S. Attorney Justin R. Simmons for the Western District of Texas, Acting Special Agent in Charge April Miller of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) Seattle Field Office, and Special Agent in Charge Michele Starostka of the Army Criminal Investigation Division’s (ARMY CID) Western Field Office made the announcement.
HSI and Army CID investigated the case.
Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case. CEOS Trial Attorney Rachel L. Rothberg and Assistant U.S. Attorney Mallory J. Rasmussen for the Western District of Texas prosecuted the case in Texas.
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 Justice.gov/PSC.
Felon Unlawfully in the Country Sentenced to 48 Months in Prison for Dealing Methamphetamine While in Possession of Loaded Handgun and ShotgunRead the Press Release
SAN FRANCISCO – Javier Velasquez Antunes was sentenced yesterday to 48 months in federal prison for dealing methamphetamine while illegally possessing a loaded handgun and shotgun. U.S. District Judge Vince Chhabria handed down the sentence.
Antunes, 50, a national of Mexico, was indicted by a federal grand jury on November 12, 2025. He pleaded guilty on March 10, 2026, to Distribution and Possession with Intent to Distribute a Mixture and Substance Containing Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C) and Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g)(1).
According to the plea agreement, Antunes admitted that on July 10, 2025, he and two others dealt methamphetamine in the Mission District of San Francisco. Officers from the San Francisco Police Department (“SFPD”) observed Antunes sell approximately one gram of methamphetamine from a car parked on Mission Street, before apprehending Antunes, two accomplices, and the buyer. All told, the four men had at least twelve grams net weight of methamphetamine between them. SFPD then searched the car in which Antunes was sitting and found a loaded nine-millimeter handgun directly at the base of his seat as well as a loaded twelve-gauge shotgun bearing his DNA in a violin case in the back seat.
Police also recovered various rifle and shotgun ammunition from the car. Antunes had previously been convicted of Possession of a Controlled Substance While Armed and Felon in Possession of a Firearm in state court.
United States Attorney Craig H. Missakian, Drug Enforcement Administration (“DEA”) Special Agent in Charge Bob P. Beris, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge John Wester made the announcement.
In addition to the prison term, Judge Chhabria also sentenced the defendant to a three-year period of supervised release and ordered that he forfeit money, a cellular phone, and the firearms and ammunition. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Eli J. Cohen prosecuted the case with the assistance of Soana Katoa. The prosecution is the result of an investigation by the DEA, with the assistance of the ATF and the San Francisco Police Department.
Felon Indicted in Multimillion Dollar Healthcare Kickback and False Documents ConspiracyRead the Press Release
RALEIGH, N.C. – Today, United States Attorney Ellis Boyle announced criminal charges against Murad “Mike” Ayyad, 45, of Roswell, Georgia, in connection with a health care fraud conspiracy that involved the payment of millions of dollars in kickbacks and the creation and use of dozens of fraudulent contracts and invoices. Ayyad is alleged to have caused the submission of fraudulent claims for laboratory testing to Medicare, the Health Resources Services Administration (“HRSA”), TRICARE, and other payers through several labs and other entities that he owned and controlled. The federal charges are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
“Our office is committed to rooting out fraud perpetrated on federal health care benefit programs, particularly when the fraud involves payment of illegal kickbacks, which corrupt medical judgment and require taxpayers to pay for medically unnecessary services,” said U.S. Attorney Ellis Boyle.
The indictment alleges Ayyad solicited and received kickback payments from clinical laboratories, including two laboratories in which he had a de facto ownership interest, in exchange for generating referrals. To conceal the kickback payments, Ayyad caused the creation of dozens of sham invoices and contracts, at least one of which was provided to federal law enforcement officials as part of a kickback investigation into one of the laboratories Ayyad controlled. Ayyad also offered and paid kickbacks to independent contractor sales reps for generating referrals to the laboratories. Ayyad and the independent contractor sales rep targeted providers and their employees with marketing and solicitation efforts that included in-person meetings, meals, cash payments, and in-kind payments.
“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said Department of Health and Human Services Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”
“This indictment underscores the Defense Criminal Investigative Service’s (DCIS) ongoing commitment to safeguarding TRICARE, the Department of War’s primary health care program, and ensuring that medical providers and related businesses adhere to federal law,” said Acting Special Agent in Charge Allison Russo of the Department of Defense Office of Inspector General’s DCIS Mid-Atlantic Field Office. “Fraudulent arrangements that compromise medical judgment or misuse federally funded healthcare programs undermine trust and accountability. DCIS will continue to pursue individuals and entities that engage in such conduct.”
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement. Department Health & Human Services Office of the Inspector General, Defense Criminal Investigative Service, investigated the case with assistance from the Internal Revenue Service Criminal Investigation.
More information about the Healthcare Fraud Takedown can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
A copy of this press release is located on our website. 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. 5:26-cr-00102-M-KS.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty.
Federal Prosecutors Dismantle Four Major Drug Trafficking Organizations Flooding South Dakota with Methamphetamine and FentanylRead the Press Release
“Behind every ounce of methamphetamine and every fentanyl pill in these cases is a South Dakota family that has suffered and felt the damage. That is who this work is for. We have proven that no link in the chain is beyond our reach—not the local dealer, not the out-of-state supplier, and not the cartel hiding in the shadows behind them. Working with our federal, state, local, and tribal partners, we will keep following that chain, defendant by defendant and case by case, until our communities are no longer a market these traffickers believe they can exploit.”
— U.S. Attorney Ron Parsons
SIOUX FALLS, S.D. — United States Attorney Ron Parsons announced the results of four landmark federal prosecutions in the past year that have systematically dismantled major drug trafficking organizations (DTOs) connected to the Mexican cartels responsible for flooding South Dakota communities with methamphetamine, fentanyl, and other deadly narcotics. Through coordinated, long-term investigations involving federal, state, local, and tribal law enforcement partners, the U.S. Attorney’s Office for the District of South Dakota has secured federal convictions against 54 members of these four organizations, with eight cases still pending and one case dismissed due to the defendant’s death, and has obtained substantial federal prison sentences—including multiple sentences exceeding 20 and 30 years—against their leaders, lieutenants, suppliers, and sub-distributors in the past year alone.
Conservatively estimated, these four DTOs together trafficked more than 1,000 pounds—over half a ton—of methamphetamine and multiple kilograms of fentanyl pills and powder into South Dakota over the course of recent years. The defendants ranged from out-of-state suppliers connected to Mexican cartels to local distributors operating from short-term rental properties, hotels, and private residences across Sioux Falls, Rapid City, the Pine Ridge Reservation, and surrounding communities.
As the capstone of those efforts, U.S. Attorney Parsons announced today that U.S. District Judge Karen E. Schreier has sentenced a Las Vegas, Nevada, man convicted by a federal jury of Conspiracy to Distribute Methamphetamine and Conspiracy to Commit Money Laundering, as well as an additional three of his subordinates for similar drug-related crimes.
On June 24, 2026, Quantiae Harris, 49, was sentenced to 33 years in federal prison, followed by five years of supervised release. Harris was indicted by a federal grand jury in October 2024. He was found guilty by a federal jury following a four-day trial on March 27, 2026. Harris was the leader of a California and Nevada-based drug trafficking organization responsible for bringing large quantities of methamphetamine and fentanyl to the Sioux Falls area. More than anyone else, Harris was responsible for the introduction and distribution of fentanyl powder — the most potent, deadly and destructive form of that illicit substance — into the Sioux Falls illegal drug market. At his sentencing, Judge Schreier noted that the drug quantity involved in the prosecution of the Quantiae Harris drug trafficking organization was one of the highest she had seen in more than 25 years on the federal bench.
"The actions of Quantiae Harris and his associates made detrimental and lasting impacts on communities across South Dakota. Fentanyl and methamphetamine carry potentially lethal consequences, and some families may never recover from the poisons Harris knowingly brought into the state and sold. Today’s sentencing sends a strong message to drug traffickers looking to make their mark in our state. DEA, alongside state, local, tribal and fellow federal partners will work non-stop to bring individuals peddling these illicit drugs to justice.”
— Special Agent in Charge Dustin Gillespie
Drug Enforcement Administration Omaha Field Division“This is an amazing win for the people of South Dakota. The damage Harris and his associates have done to communities by introducing fentanyl powder to Sioux Falls is immeasurable. IRS-CI special agents are committed to working alongside our federal law enforcement partners to trace the money trails that lead to the disruption of dangerous drug trafficking organizations such as this.”
— Special Agent in Charge William Steenson
IRS-Criminal InvestigationThree additional sentences for members of the Quantiae Harris DTO were also announced by U.S. Attorney Parsons today:
On June 15, 2026, Faily Chavez, 31, from California City, California, was sentenced by Judge Schreier to 24 years and four months in federal prison, followed by five years of supervised release. Chavez was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in October 2024. She pleaded guilty on March 24, 2026.
On June 22, 2026, Kyle Schryvers, 33, of Sioux Falls, South Dakota, was sentenced by U.S. District Chief Judge Roberto A. Lange to 16 years in federal prison, followed by five years of supervised release. He pleaded guilty on March 17, 2026.
Also on June 22, 2026, Nicole Kritz, 48, of Sioux Falls, South Dakota, was sentenced by Chief Judge Lange to five years and 10 months in federal prison, followed by five years of supervised release. She pleaded guilty on March 16, 2026.
Chavez, Schryvers, and Kritz were all members of the Quantiae Harris DTO.
These sentences are the latest results from the systematic takedown of four major drug trafficking operations in South Dakota over the past year:
- Quantiae Harris DTO
- Juan Sertuche DTO
Matthew Shade DTO - Darrel Devorce DTO
By the Numbers
Combined results across just these four discrete prosecutions:- Total defendants charged or convicted federally: 63 charged, 54 convictions to date
- Methamphetamine trafficked (combined estimates): More than 1,000 pounds
- Fentanyl pills trafficked (combined estimates): Tens of thousands
- Fentanyl powder: Multiple kilograms
- Money laundering proceeds traced: Several million dollars
- Federal prison sentences to date: More than 660 years
Federal jury trials: Three to date (Quantiae Harris, Juan Sertuche, and Gregory Henderson convicted at trial)
Importantly, the prosecutions of the four drug trafficking organizations detailed in this report represent only a portion of the drug trafficking convictions and sentences secured by the U.S. Attorney’s Office for the District of South Dakota over the past year.QUANTIAE HARRIS DRUG TRAFFICKING ORGANIZATION
26-Defendant California- and Nevada-Based Methamphetamine and Fentanyl Conspiracy
Overview of the Organization
From late 2023 through September 2024, a California- and Nevada-based drug trafficking organization led by Quantiae Harris, age 49, of Las Vegas, Nevada, transported large quantities of methamphetamine and fentanyl from California to South Dakota for distribution in the Sioux Falls area. The organization is the first known to have introduced powder fentanyl to the Sioux Falls drug market—a development of grave public health and public safety concern given fentanyl’s extreme lethality even in microscopic amounts.
The organization initially shipped drugs through the U.S. Mail to addresses in Sioux Falls, where members would collect packages and distribute the contents to local sub-distributors. Operations were originally conducted out of local hotels, but eventually transitioned to short-term rental properties, including Airbnbs. Once the U.S. Postal Inspection Service began intercepting their packages, the organization shifted methods, using rental vehicles equipped with hidden compartments to drive narcotics from California to Sioux Falls.
Customers contacted members for brief meetups at public locations to purchase drugs, with payments made in cash or through electronic payment platforms such as Cash App. Bulk cash proceeds were transported back to California in rental vehicles, while large amounts of currency were also deposited in local banks into accounts belonging to Quantiae Harris. The Internal Revenue Service-Criminal Investigation linked Harris to over $1.2 million in money laundering transactions related to the organization.
Scope of Trafficking (Conservative Estimates)
- More than 100 pounds of methamphetamine
- Tens of thousands of fentanyl pills (estimated 50,000)
- Approximately 2 kilograms of fentanyl powder
- More than $1.2 million in money laundering transactions linked to the DTO leader
Indictments and Prosecutions
Four rounds of federal indictments charged a total of 26 defendants in connection with the Harris organization. Convictions for 22 of the 26 defendants have been secured so far. Harris, the DTO leader, was convicted following a four-day federal jury trial in Sioux Falls, returning a guilty verdict on every count on March 27, 2026. Currently, four remaining defendants are scheduled for trials. Regarding those four defendants, as with any pending criminal case, a charge is merely an accusation, and they are presumed innocent until and unless proven guilty.
Federal Defendants
DefendantRoleStatusSentenceQuantiae Harris
Las Vegas, NV
Leader of the DTOConvicted at trial on 3/27/26; sentenced on 6/24/26400 months (33 years)Stephonn Walton
Las Vegas, NV
Alleged co-conspiratorPleaded not guilty; pending trial—Dejuan Croom
Los Angeles, CA
Third in command; managerial rolePleaded guilty; sentenced on 4/6/26280 months (over 23 years)Alonzo Green
California City, CA
Fourth in commandPleaded guilty; sentenced on 1/5/26240 months (20 years)Faily Chavez
California City, CA
California-based source of supplyPleaded guilty; sentenced on 6/15/26292 months (over 24 years)Hailey Schneiderman
Sioux Falls, SD
Major local sub-distributorPleaded guilty; sentenced on 8/4/25192 months (16 years)Amanda Acosta
Prairie Village, KS
Major sub-distributorPleaded guilty; sentenced on 9/29/25240 months (20 years)Alysia Peneaux
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 4/13/26120 months (10 years)Rodney Rohrbach Jr.
Sioux Falls, SD
Sub-distributorPleaded guilty on 4/6/26Sentencing on 6/29/26Rodney Rohrbach Sr.
Chamberlain, SD
Sub-distributorPleaded guilty; sentenced on 1/26/2670 months (over 5 years)Isaiah Croom
Los Angeles, CA
Sub-distributorPleaded guilty; sentenced on 3/16/2630 months (over 2 years)Brett Berglund
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 11/17/25135 months (over 11 years)Brandy Christman
Aberdeen, SD
Sub-distributorPleaded guilty; sentenced on 9/29/256 monthsHeather Downey
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 8/25/25120 months (10 years)Alexis Mertens
Slayton, MN
Sub-distributorPleaded guilty; sentenced on 9/22/2592 months (over 7 years)Ashley Mortimer
Lennox, SD
Sub-distributorPleaded guilty; sentenced on 1/16/2692 months (over 7 years)Kenneth Johnson
Los Angeles, CA
DistributorPleaded guilty; sentenced on 11/24/25159 months (over 13 years)Jeffrey Skannal
Las Vegas, NV
DistributorPleaded guilty on 6/11/26Sentencing on 8/31/26Jordon Harris
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 11/17/2587 months (over 7 years)Morgan Mentele
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 4/20/2630 monthsKyle Heinemann
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 6/8/26120 months (10 years)Kyle Schryvers
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 6/22/26192 months (16 years)Nicole Kritz
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 6/22/2670 months (over 5 years)Jordan Reese
Sioux Falls, SD
Alleged co-conspiratorPleaded not guilty; pending trial—Allen Shropshire
Sioux Falls, SD
Alleged co-conspiratorPleaded not guilty; pending trial—Joshua Weisser
Sioux Falls, SD
Alleged co-conspiratorPleaded not guilty; pending trial—“This was a major bust of a significant figure in the lurid underworld of illegal drugs. The Trump Administration has designated fentanyl a weapon of mass destruction due to its extreme lethality in extremely small amounts. In its pure powder form, it truly is a chemical weapon. If a member of your family used fentanyl in Sioux Falls over the past few years, this defendant is one of the primary drug dealers likely to have brought it here.”
— U.S. Attorney Ron Parsons (following Harris jury verdict)
Investigating Agencies
Drug Enforcement Administration (DEA); U.S. Postal Inspection Service (USPIS); Internal Revenue Service-Criminal Investigation (IRS-CI); Sioux Falls Area Drug Task Force (SFADTF); Sioux Falls Police Department; South Dakota Highway Patrol; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Each of these cases has been prosecuted by Assistant U.S. Attorney Mark Joyce. Assistant U.S. Attorney Paige Petersen handled the investigatory stage of some of the prosecutions.
- JUAN SERTUCHE DRUG TRAFFICKING ORGANIZATION
Two-Decade Cartel-Sourced Methamphetamine and Fentanyl Pipeline into Western South Dakota Shut Down
Overview of the Organization
Juan Sertuche, age 43, of Denver, Colorado, led a drug distribution conspiracy spanning more than two decades from approximately 2002 through September 2023. Sertuche was sourced by a Mexican cartel and brought between 30 and 50 pounds of methamphetamine into South Dakota every other week, providing hundreds of pounds of methamphetamine and tens of thousands of fentanyl pills to multiple sub-distributors for further distribution in the Rapid City area and the Pine Ridge Reservation.
Investigators linked Sertuche to a traffic stop that uncovered 19 pounds of methamphetamine intended for distribution in western South Dakota. He was arrested in September 2023 after another traffic stop in Jackson County, where officers found approximately 1,500 fentanyl pills. Even after his arrest, Sertuche continued coordinating drug deals from custody and directed others to collect firearms to trade for drugs. Law enforcement recovered several weapons, including two fully automatic machine guns, before they could be exchanged.
Scope of Trafficking
- Hundreds of pounds of methamphetamine over the duration of the conspiracy
- Tens of thousands of fentanyl pills
- Source of supply traced to Mexican cartel
- Continued drug coordination and firearms trafficking after arrest
Indictments and Prosecutions
The investigation produced parallel federal and state prosecutions. The U.S. Attorney’s Office prosecuted the top tier of the organization, resulting in 10 convictions and federal prison sentences, while additional DTO members were prosecuted in state court.
Federal Defendants
DefendantRoleStatusSentenceJuan Sertuche
Denver, CO
Leader of the DTO; cartel-sourced supplierConvicted at trial on 1/8/26; sentenced on 5/22/26540 months (45 years)Veronica Ortega
Box Elder, SD
Main local distributorPleaded guilty; sentenced on 7/11/25292 months (over 24 years)Shauntel Shangreaux
Pine Ridge, SD
Key lieutenantPleaded guilty; sentenced on 4/6/26230 months (over 19 years)Paige Sierra
Rapid City, SD
Distributor; transportation assistancePleaded guilty; sentenced on 7/11/25140 months (over 11 years)Jackie Corean
Black Hawk, SD
Distribution hub host, sub-distributorPleaded guilty; sentenced on 9/2/25135 months (over 11 years)Jenna Lee Holzer
Box Elder, SD
Major sub-distributorPleaded guilty; sentenced on 10/28/25360 months (30 years)Darin Wherley
Black Hawk, SD
Major sub-distributorPleaded guilty; sentenced on 11/1/24320 months (over 26 years)Monique Merrival
Greeley, CO
Major sub-distributorPleaded guilty; sentenced on 10/11/24224 months (over 18 years)Shelina Martinez
Denver, CO
Sub-distributor, courierPleaded guilty; sentenced on 8/8/25 60 months (5 years)Daniel Sandoval
Denver, CO
Sub-distributor, courierIndictment dismissed when defendant died—“We may never know the true depths of the devastation, suffering, and loss inflicted on our communities by the methamphetamine, fentanyl, and automatic weapons trafficked and sold by this defendant. But we will do our best to hold this profiteer of misery fully accountable and ensure he receives a federal prison sentence that will put him out of that business for a long time.”
— U.S. Attorney Ron Parsons (following Sertuche conviction at trial)
Investigating Agencies
South Dakota Division of Criminal Investigation (DCI); Pennington County Sheriff’s Office; Rapid City Police Department; South Dakota Highway Patrol; Wyoming State Highway Patrol; North Metro Denver Drug Task Force; Federal Bureau of Investigation (FBI); Oglala Sioux Tribe Department of Public Safety (OSTDPS); and the Bureau of Indian Affairs (BIA).
These cases were prosecuted by Supervisory Assistant U.S. Attorney Benjamin Patterson, Assistant U.S. Attorney Paige Petersen, Assistant U.S. Attorney Meghan Dilges, and Assistant U.S. Attorney Mark Hodges.
- MATTHEW SHADE DRUG TRAFFICKING ORGANIZATION
Arizona-Sourced Methamphetamine and Fentanyl Operation Trafficking 200 Pounds into Sioux Falls Area Dismantled
Overview of the Organization
Matthew Shade, age 34, of Tea, South Dakota, served as the local leader of a drug trafficking organization that obtained methamphetamine and fentanyl from sources in Mexico who then arranged for the drugs to cross the border and be delivered to co-conspirators in Arizona for distribution throughout the Sioux Falls area. The organization received drugs both through the U.S. Mail and through cross-country car deliveries by a supplier traveling from Arizona to South Dakota.
In December 2024, investigators seized a package containing over four pounds of methamphetamine. Postal Inspectors, working with the Sioux Falls Area Drug Task Force, also seized two parcels sent from Sioux Falls to Arizona that contained over $26,000 in cash, as well as a separate package bound for Sioux Falls containing 144 grams of fentanyl powder. After identifying that Shade’s supplier was traveling by car to South Dakota, investigators arranged for the South Dakota Highway Patrol to conduct a traffic stop during which a trooper located approximately 26 pounds of methamphetamine and over 2,000 fentanyl pills concealed in the vehicle. At Shade’s residence in Tea, investigators found 80 grams of methamphetamine, 22 fentanyl pills, and other narcotics.
Scope of Trafficking
- Approximately 200 pounds of methamphetamine trafficked to the Sioux Falls area
- Significant quantities of fentanyl pills and fentanyl powder
- Multiple seizures of bulk cash being routed back to Arizona suppliers
Indictments and Prosecutions
To date, 13 defendants have been indicted in connection with the Shade organization, including Matthew Shade himself, nine South Dakota members operating beneath him, and two Arizona-based defendants representing the supply chain. Nine defendants have been convicted, with two of those defendants still awaiting sentencing; four additional defendants have pending trial dates. Regarding those four defendants, as with any pending criminal case, a charge is merely an accusation, and they are presumed innocent until and unless proven guilty.
Federal Defendants
DefendantRoleStatusSentenceMatthew Shade
Tea, SD
Local leader of the DTOPleaded guilty; sentenced on 5/4/26260 months (over 21 years)Sean David Blanchfill
Tea, SD
DistributorPleaded guilty; sentenced on 3/2/26202 months (over 16 years)Damian Roy Webster
Glendale, AZ
Distributor, coordinator of shipments from ArizonaPleaded guilty; sentenced on 8/18/25168 months (14 years)Alex Geoffrey Lang
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 12/1/25160 months (over 13 years)Carey Adam Ludens
Crooks, SD
DistributorPleaded guilty; sentenced on 5/18/26160 months (over 13 years)Robert Duane Kent, Jr.
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 5/18/2692 months (over 7 years)Michael Lee Terveen
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 10/27/2560 months (5 years)Kourtney Leigh Lang
Sioux Falls, SD
DistributorPleaded guilty on 3/2/26Sentencing on 7/6/26Lorenzo Portillo
Sioux Falls, SD
DistributorPleaded guilty on 5/5/26Sentencing on 8/24/26John Stanford Roth
Phoenix, AZ
Alleged co-conspiratorPleaded not guilty; pending trial—Julia Diane Pewo
Sioux Falls, SD
Alleged co-conspiratorPleaded not guilty; pending trial—Cory Wayne Nohava
Sioux Falls, SD
Alleged co-conspiratorPleaded not guilty; pending trial—Ryan Richard Tulio
Tea, SD
Alleged co-conspiratorPleaded not guilty; pending trial—“This was another skillfully managed takedown of a serial drug dealer and his operation by the dedicated officers on the Sioux Falls Area Drug Task Force, with a strong assist from the Criminal Investigations Unit of the U.S. Postal Inspection Service. In all likelihood, the fentanyl and methamphetamine seized from this criminal’s operation would have killed some people who are alive right now in Sioux Falls. This investigation, prosecution, and substantial federal prison sentence has given them another chance at life. I will never stop being grateful for that.”
— U.S. Attorney Ron Parsons (following Shade sentencing)
Investigating Agencies
Sioux Falls Area Drug Task Force (SFADTF); Minnehaha County Sheriff’s Office; South Dakota Highway Patrol; U.S. Postal Inspection Service (USPIS); and Federal Bureau of Investigation (FBI).
These cases were prosecuted by Assistant U.S. Attorney Mark Hodges, Supervisory Assistant U.S. Attorney Connie Larson, and Assistant U.S. Attorney Mark Joyce.
- DARREL DEVORCE DRUG TRAFFICKING ORGANIZATION
Five-Year California-to-South Dakota Methamphetamine Pipeline Dismantled
Overview of the Organization
Darrel Devorce, age 57, of San Jacinto, California, ran a large methamphetamine trafficking organization for approximately five years, sourcing methamphetamine from California to co-conspirators in Sioux Falls beginning around 2018 and continuing into 2023. Devorce arranged for methamphetamine from California to be delivered to co-conspirators in South Dakota using various couriers and directed others to conduct financial transactions involving the proceeds using Cash App, Western Union, and Zelle. The money transfers were designed to conceal both the source of the proceeds and Devorce’s involvement in the conspiracy.
Scope of Trafficking
- Approximately 200 pounds of methamphetamine trafficked into South Dakota
- Over $700,000 laundered through the organization
- Five-year operational period (approximately 2018–2023)
Indictments and Prosecutions
The Devorce investigation has resulted in convictions and sentences of 14 defendants in federal court.
Federal Defendants
DefendantRoleStatusSentenceDarrel Devorce
San Jacinto, CA
Leader of the DTOPleaded guilty; sentenced on 11/3/25400 months (33 years)Maurice Logan
Corona, CA
Distributor and transporterPleaded guilty; sentenced on 6/9/25132 months (11 years)Katrina Marie Green
Sioux Falls, SD
Main local distributorPleaded guilty; sentenced on 12/18/23128 months (over 10 years)Janet Denise Mallet
Sioux Falls, SD
DistributorPleaded guilty; sentenced on11/27/23120 months (10 years)Frank Cortez Baker
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 6/2/25132 months (11 years)Tara Dionne Clayton
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 2/12/24132 months (11 years)Amber Louise Justus
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 7/29/24168 months (14 years)Gregory Henderson
Sioux Falls, SD
Money laundererConvicted at trial on 12/4/25; sentenced on 3/16/2660 months (5 years)Billy Dickinson
Sioux Falls, SD
Sub-distributorPleaded guilty; sentenced on 5/15/2334 months (over 2 years)Gregory Lamar Bell
Sioux Falls, SD
Unlawful drug user in possession of firearmPleaded guilty; sentenced on 8/19/2457 months (over 4 years)Kurtis Duke
Sioux Falls, SD
DistributorPleaded guilty; sentenced on 6/12/2358 months (over 5 years)Julia Precious Ballansaw
Decatur, GA
DistributorPleaded guilty; sentenced on 6/3/2470 months (over five years)Destiny Canty
Riverside, CA
Money laundererPleaded guilty; sentenced on 2/9/2634 months (over 2 years)Nicole Dorrough
San Jacinto, CA
Money laundererPleaded guilty; sentenced on 1/26/2634 months (over two years)“Devorce is a longtime meth dealer responsible for shipping that poison into South Dakota since at least 2018. He will now be separated from the rest of society for most of the rest of his life.”
— U.S. Attorney Ron Parsons (following Devorce sentencing)
Investigating Agencies
Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation (IRS-CI); Sioux Falls Area Drug Task Force (SFADTF); South Dakota Division of Criminal Investigation (DCI).
These cases were prosecuted by Supervisory Assistant U.S. Attorney Connie Larson, Assistant U.S. Attorney Mark Hodges, and Assistant U.S. Attorney Elizabeth Ebert-Webb.
Why This Matters
These four organizations represent fundamentally different models of drug trafficking: a long-running, cartel-sourced pipeline from Mexico through Colorado (Sertuche); a multi-year California-to-South Dakota methamphetamine operation (Devorce); a sophisticated, multi-method California- and Nevada-based operation that introduced powder fentanyl to Sioux Falls (Harris); and an Arizona-sourced operation moving narcotics into the Sioux Falls suburbs (Shade). Together they illustrate how out-of-state suppliers, usually with cartel ties, continue to target South Dakota communities, and how federal prosecutors and law enforcement partners are responding.
Fentanyl in particular poses a grave and growing threat. The Harris organization was the first known to introduce powder fentanyl to the Sioux Falls market, a substance lethal in microscopic amounts. The dismantling of these organizations and the substantial federal prison sentences obtained have meaningfully disrupted the flow of these drugs into South Dakota and saved lives.
These results, however, mark the beginning of a sustained effort, not the end of it. Additional defendants in these four prosecutions remain pending trial or pending sentencing. New investigations and new indictments are ongoing, and the work done in taking down these four drug trafficking organizations reflects only a portion of the total felony drug convictions secured by this office over the past year. The U.S. Attorney’s Office for the District of South Dakota intends to continue its aggressive use of federal prosecution against any drug trafficking organization that targets South Dakota communities, and to do so until the supply networks reaching into this State have been dismantled.
A Coordinated, Multi-Agency Effort
These prosecutions were the product of sophisticated, long-term investigations conducted by federal, state, local, and tribal law enforcement agencies, many of which collaborate through long-standing drug task forces operating throughout South Dakota. The cases reflect the strength of the multi-agency model in which federal and state investigators, prosecutors, postal inspectors, financial crimes specialists, state troopers, tribal law enforcement, and local police and sheriff’s offices each contributed to building cases capable of holding the highest-level traffickers accountable.
Task Forces and Agencies Involved Across the Four Prosecutions
- Drug Enforcement Administration (DEA)
- Federal Bureau of Investigation (FBI)
- Homeland Security Investigations (HSI)
- U.S. Customs & Border Protection (CBP)
- Internal Revenue Service-Criminal Investigation (IRS-CI)
- U.S. Postal Inspection Service (USPIS)
- Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
- Bureau of Indian Affairs-Division of Drug Enforcement (BIA-DDE)
- South Dakota Division of Criminal Investigation (DCI)
- South Dakota Highway Patrol (SDHP)
- Sioux Falls Area Drug Task Force (SFADTF)
- Sioux Falls Police Department
- Minnehaha County Sheriff’s Office
- Unified Narcotics Enforcement Team (UNET)
- Pennington County Sheriff’s Office
- Rapid City Police Department
- Oglala Sioux Tribe Department of Public Safety (OSTDPS)
- North Metro Denver Drug Task Force
- Wyoming State Highway Patrol
Part of a National Strategy: South Dakota and the Nationwide Effort to Eradicate Cartels and Drug Trafficking
These four DTO takedowns are not isolated victories. They are part of the most comprehensive, whole-of-government campaign to dismantle drug cartels and transnational criminal organizations in modern American history. Beginning on his first day back in office, President Trump set in motion a sweeping series of executive actions, designations, task force structures, and policy directives intended to do what no prior administration has attempted at this scale: achieve the total elimination of the cartels and the eradication of illegal drug trafficking on American soil. To accomplish this directive, the United States government is utilizing every tool at its disposal: law enforcement, addiction treatment and counseling, border security, trade, the banking system, international diplomacy, and, where authorized, military action.
South Dakota’s prosecutions of the Harris, Devorce, Sertuche, and Shade organizations are an integral part of that national strategy. Each of these cases reaches back, ultimately, to out-of-state and often cartel-connected sources of supply. Each illustrates how the national framework set in Washington translates into convictions, prison sentences, and lives saved in Sioux Falls, Rapid City, the communities of the Pine Ridge Reservation, and across all of South Dakota.
We Are Only Getting Started
New indictments are being returned by federal grand juries on a routine basis. New investigations, including investigations targeting the out-of-state and cartel-connected suppliers above the local distribution networks already dismantled, are underway. Every prosecution that produces a cooperator opens a door to the next organization.
At the national level, the trajectory is the same. The Homeland Security Task Force model, the FTO designation regime, and the consolidated Operation Take Back America framework are all permanent fixtures of federal law enforcement. The Administration has made clear, repeatedly and at the highest level, that the goal is not the disruption of cartels and trafficking organizations, but their total elimination. That work will continue, in South Dakota and across the country, until that goal is achieved.
To the traffickers, distributors, money launderers, and out-of-state suppliers still operating in or targeting South Dakota: the message from this U.S. Attorney’s Office and its federal, state, local, and tribal partners is direct. The cases described in this report are not the end of the work. They are the beginning. Anyone who continues to bring methamphetamine, fentanyl, cocaine, or other deadly drugs into South Dakota communities should expect the same fate as the defendants identified above: federal indictment, federal conviction, and a substantial federal prison sentence.
About Operation Take Back America
Many of these prosecutions are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the U.S. 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 Neighborhoods (PSN). Through PSN, the District of South Dakota seeks to bring together all levels of law enforcement and the communities they serve to reduce gun violence and make our neighborhoods safer for everyone.
Fairfax felon found with firearm now returning to prisonRead the Press Release
ALEXANDRIA, Va. – A Fairfax man was sentenced today to a year and five months in prison for possession of a firearm by a convicted felon.
According to court documents, on June 11, 2025, Basim Dauwd Jami, aka David Jackson, 64, possessed a handgun when law enforcement approached him to serve an outstanding warrant for an alleged probation violation. Jami attempted to flee on foot, but officers arrested him in a nearby parking garage.
In 1986, Jami broke into a home and sexually assaulted a 14-year-old victim. In 2005, he was convicted for driving under the influence. In 2007, Jami was found in possession of a concealed weapon, which officers discovered when they stopped Jami during a rape investigation. As a convicted felon, Jami cannot legally possess firearms or ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division and the City of Fairfax Police Department investigated this case.
Assistant U.S. Attorney Meredith Clement prosecuted the case.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:26-cr-17.
Erie Resident Sentenced to 10 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 10 years of incarceration, to be followed by 10 years of supervised release on his conviction of possessing child sexual abuse material, United States Attorney Troy Rivetti announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Dana Lindstrom, 44, formerly of Erie, Pennsylvania.
According to information presented to the Court, in August 2019, Lindstrom possessed videos depicting a minor female engaged in sexually explicit conduct. These videos were located by investigators on Lindstrom’s phone.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Rivetti commended the Federal Bureau of Investigation, the Erie Police Department and the Erie County Detectives Bureau for the investigation leading to the successful prosecution of Lindstrom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Engineering Manager Charged with $1.4 Million Insider Trading SchemeRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging a Wilmington man with securities fraud and insider trading.
According to the indictment, Casey Muggleston, 44, served as an engineering manager with a publicly traded energy company that operates nuclear, hydroelectric, wind, and solar generation facilities. From in or around May 2024 until in or around September 2024, Muggleston learned of material nonpublic information about the company’s efforts to restart a nuclear reactor. The energy company owned the nuclear reactor, which had previously ceased operations in 2019. The indictment alleges that through his employment, Muggleston received progress updates and confidential internal communications about the energy company’s efforts to restart the reactor.
Muggleston used this confidential information to purchase hundreds of call options in the energy company through his own brokerage account. Call options provide the buyer with the right, but not the obligation, to purchase shares of the underlying security at a specified price (the “strike price”) on or before the option’s expiration date. Muggleston purchased these call options despite his employer’s policies prohibiting insider trading and the purchase and sale of the company’s call options. On September 20, 2024, the energy company publicly announced the restart of the nuclear reactor and that it had entered into a power purchase agreement with a large technology company to purchase all of the energy produced by the reactor. That same day, Muggleston sold 550 call option contracts he held in the energy company for a total of approximately $1,480,380.67.
Muggleston is charged with one count of securities fraud, in violation of 18 U.S.C. § 1348, and four counts of insider trading, in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. § 240.10b-5. If convicted, Muggleston faces a maximum penalty of 25 years in prison for the securities fraud count and 20 years in prison for each of the four insider trading counts. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Benjamin L. Wallace made the announcement. Agents of the Federal Bureau of Investigation (FBI) Baltimore Field Office’s Wilmington and Dover Resident Agencies investigated the case. The U.S. Securities and Exchange Commission provided valuable assistance in this matter. Assistant U.S. Attorneys Corey J. Hauser and Bryan C. Williamson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:26-cr-105-UNA.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Eight North Carolina Tax Return Preparers Plead Guilty in Almost $25M Pandemic-Relief Fraud SchemeRead the Press Release
WILMINGTON, N.C. – A Robeson County woman who was the owner of a North Carolina tax return preparation business pleaded guilty to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, and assisting in the preparation of false tax returns. Mitchell, 48, faces a maximum term of eight years in prison, and a $500,000 fine when sentenced later this year. She will also be ordered to pay a Forfeiture Money Judgment of $13,890,697.00. Seven other tax return preparers have already pleaded guilty for their roles in the same fraud scheme.
According to court documents and statements made in court, Nejlai Mitchell owned and operated a tax return preparation business out of Lumberton, North Carolina, and Hope Mills, North Carolina. From approximately April 2022 through May 2023, Mitchell and seven employees filed false tax returns seeking fraudulent refunds based on COVID-19 tax credits. As a result of the conspiracy, the IRS paid out approximately $13,890,697 in fraudulent tax refund claims.
Seven other co-conspirators previously pleaded guilty to preparing federal tax returns for clients that included materially false items. Tiffany Moody and Shaneen Ray pleaded guilty in December 2025; Eyoubo McBurney and Katrena Stanback pleaded guilty in September 2025; Jeannie Negron and Sylvia Swindell pleaded guilty in August 2025, and Whitnee Leach pleaded guilty in May 2026.
Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. IRS-CI is investigating the case.
A copy of this press release is located on our website. 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. 7:26-CR-38-M.
Eight North Carolina Return Preparers Plead Guilty in Almost $25M Pandemic-Relief Fraud SchemeRead the Press Release
The owner of a North Carolina tax return preparation business pleaded guilty yesterday to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits. Seven other return preparers have already pleaded guilty for their roles in the same scheme.
According to court documents and statements made in court, Nejlai Mitchell owned and operated a tax return preparation business out of Lumberton, North Carolina, and Hope Mills, North Carolina. From approximately April 2022 through May 2023, Mitchell and seven employees filed false tax returns seeking fraudulent refunds based on the paid sick and family leave credit, a credit passed by Congress to aid struggling businesses during the COVID-19 global pandemic. As a result of the conspiracy, the IRS paid out approximately $13,890,697 in fraudulent tax refund claims.
“Instead of honoring their legal and ethical duties as tax preparers, this group allegedly engineered a calculated scheme to enrich themselves by submitting false returns,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Stealing taxpayer funded relief in a national emergency is both reprehensible and deeply harmful to the public, and we will not hesitate to hold accountable those who exploit a crisis for personal gain. The Fraud Division remains unwavering in its commitment to protecting the integrity of federal relief programs and pursuing tax fraud wherever it occurs.”
Mitchell admitted to the conspiracy shortly after Whitnee Leach pleaded guilty, on May 19, 2026, to participating in the same conspiracy. Both Mitchell and Leach also pleaded guilty to assisting in the preparation of false tax returns.
Six other co-conspirators pleaded guilty to preparing federal tax returns for clients that included materially false items. Tiffany Moody and Shaneen Ray pleaded guilty on December 9, 2025; Eyoubo McBurney and Katrena Stanback pleaded guilty on September 24, 2025; and Jeannie Negron and Sylvia Swindell pleaded guilty on August 20, 2025.
Mitchell is scheduled to be sentenced in September. Leach is scheduled to be sentenced in August. Mitchell and Leach face a maximum penalty of five years for conspiracy and three years for preparing and filing false tax returns. The remaining six defendants each face a maximum penalty of three years in prison for preparing and filing false tax returns for clients. Their sentencing hearings are set for July 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney W. Ellis Boyle of the Eastern District of North Carolina made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Caroline Pearson and Assistant U.S. Attorney Ethan Ontjes of the Eastern District of North Carolina are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Dubuque Felon Who Possessed Multiple Guns Sentenced to 8 Years in Federal PrisonRead the Press Release
A man who possessed multiple firearms as a felon in the summer of 2024 was sentenced today to 8 years in federal prison.
Bailey Michael Valentine, age 26, from Dubuque, Iowa, received the prison term after a February 27, 2026, guilty plea to possession of a firearm by a felon.
Evidence at the sentencing hearing showed that in May 2024, law enforcement officers pulled over a car in which Valentine was the passenger. Officers found Valentine’s backpack in the car. It contained methamphetamine. Later that day, officers searched his house and found a stolen and loaded gun. Valentine continued to possess a firearm on multiple occasions after that. In July 2024, officers pulled over another car that Valentine was driving. Inside the car, officers found a loaded gun that belonged to Valentine, as well as ammunition that he had stolen earlier in the day. Valentine has an extensive criminal history, including two drug‑related felony convictions from 2021.
Valentine was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Valentine was sentenced to 96 months’ imprisonment and must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of 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.
Valentine is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Devra T. Hake and investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-1031.
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Dominican National Arrested on Charges of Identity Theft and Federal Benefits FraudRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the Boston-New York Field Division of the Social Security Administration, Office of Inspector General (“SSA OIG”), Amy Connelly, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, and Special Agent in Charge of the Diplomatic Security Service (“DSS”) New York Field Office, Brian Wood, announced today the unsealing of a Complaint charging VERONICA YARASET MOLINA with theft of government funds, healthcare fraud, passport fraud, and aggravated identity theft. YARASET MOLINA was arrested this morning and presented earlier today before U.S. Magistrate Judge Ona T. Wang.
“For nearly two decades, Veronica Yaraset Molina allegedly stole the identity of an American citizen and used it to loot federal benefit programs of nearly $800,000 in taxpayer funds,” said U.S. Attorney Jay Clayton. “This Office will pursue those who defraud federal benefit programs.”
“Veronica Yaraset Molina allegedly used a stolen identity to orchestrate a nearly 20-year fraud scheme to siphon off hundreds of thousands of dollars in benefits meant for vulnerable Americans,” said HSI Special Agent in Charge Pete Gizas. “This kind of calculated fraud is not a victimless crime; it drains taxpayer resources, corrupts vital safety net programs, and inflicts lasting damage on innocent victims who are denied the assistance they need when disaster strikes. HSI New York, as a leading member of the Homeland Security Task Force New York, is fully committed to relentlessly pursuing fraudsters who exploit our systems and our communities, and we will continue to work side-by-side with the U.S. Attorney’s Office and our law enforcement partners to identify, dismantle, and bring to justice anyone who engages in this kind of predatory conduct.”
“The Diplomatic Security Service mandate extends beyond protecting State Department people, property and information—it includes safeguarding the integrity of U.S. travel documents,” said DSS New York Field Office Special Agent in Charge Brian Wood. “Molina's alleged use of a fraudulently obtained U.S. passport to repeatedly enter this country is exactly the kind of threat DSS is uniquely positioned to investigate, and we are proud to have worked alongside our law enforcement partners to bring this case to light.”
“The defendant, a Dominican national, is accused of using a stolen identity to fraudulently obtain approximately $120,000 in Social Security disability benefits, unlawfully enriching herself at the expense of American taxpayers,” said SSA OIG Special Agent in Charge Amy Connelly. “We remain steadfast in our mission to safeguard the integrity of Social Security programs and will continue to aggressively pursue those who exploit vulnerable systems through fraud, identity theft, and other criminal conduct.”
As alleged in the Complaint:
YARASET MOLINA, a Dominican national who has been unlawfully present in the United States since at least approximately 2000, and who assumed the stolen identity of a United States citizen (“Victim-1”), engaged in a nearly 20-year scheme to fraudulently obtain approximately $800,000 in federal benefits, including Social Security disability benefits, Supplemental Nutrition Assistance Program (“SNAP”) benefits, Medicare benefits, and unemployment benefits, to which she was not entitled.
As alleged, YARASET MOLINA repeatedly used Victim-1’s identity to apply for and receive the foregoing benefits across multiple federal programs. YARASET MOLINA also used Victim-1’s identity to apply for and receive a United States passport, which she used to return to the United States from the Dominican Republic on several occasions. Due at least in part to YARASET MOLINA’s identity theft scheme, Victim-1 was unable to receive Federal Emergency Management Agency (“FEMA”) benefits in the wake of Hurricane Maria in or about 2017.
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YARASET MOLINA, 51, of the Dominican Republic, is charged with four counts of theft of government funds, in violation of 18 U.S.C. § 641, each of which carries a maximum sentence of 10 years in prison; healthcare fraud, in violation of 18 U.S.C. § 1347, which carries a maximum sentence of 10 years in prison; passport fraud, in violation of 18 U.S.C. § 1543, which carries a maximum sentence of 10 years in prison; and aggravated identity theft, in violation of 18 U.S.C. § 1028A, which carries a mandatory minimum sentence of two years in prison, to run consecutively to any other term of imprisonment imposed.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the SSA-OIG, HSI, DSS, the U.S. Postal Inspection Service, the U.S. Department of Agriculture’s Office of Inspector General, the U.S. Department of Health and Human Services’ Office of Inspector General, and the U.S. Department of Labor’s Office of Inspector General for their assistance in this case.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Nicholas D. Pavlis is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitutes only allegations, and every fact described therein should be treated as an allegation.
Des Moines Man Sentenced to More Than 15 Years in Federal Prison for Distribution of Methamphetamine and FentanylRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced on June 23, 2026, to 188 months in federal prison for conspiring to distribute 50 grams or more of methamphetamine and fentanyl.
According to public court documents, in August 2025, Andrew Gordon Meyer, 26, was found by the Des Moines Police slumped over in his vehicle while it was still running. Inside Meyer’s car, officers found cash, cocaine, methamphetamine, and fentanyl, and other drug paraphernalia, consistent with drug trafficking. The investigation revealed that Meyer sold fentanyl and methamphetamine in the Des Moines Metro area and possessed firearms. Meyer was sentenced under the United States Sentencing Guidelines as a Career Offender and has an extensive criminal history that includes weapons-offenses and multiple drug-related convictions.
After completing his term of imprisonment, Meyer will be required to serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department and prosecuted by Assistant United States Attorney Mallory Weiser.
Cresco Felon Sentenced for Illegally Possessing a GunRead the Press Release
A man who unlawfully possessed a stolen gun was sentenced on June 23, 2026, to eight years in federal prison.
Dalton Lee Hagen, age 28, from Cresco, Iowa, received the prison term after an October 6, 2025, guilty plea to possession of a firearm by a felon.
Information at the sentencing hearing showed that in January 2025, law enforcement officers were investigating a burglary. Officers learned that Hagen was involved and searched his home. In the basement of Hagen’s home, officers found a gun. Prior to January 2025, Hagen had broken into a car outside a local Cresco business and stole the gun. Hagen is prohibited from possessing firearms because of multiple prior felony convictions.
Hagen was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Hagen was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case is part of 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.
Hagen is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Special Assistant United States Attorney Michael S.A. Hudson and investigated by Bureau of Alcohol, Tobacco, Firearms & Explosives, the Cresco Police Department, the Winneshiek County Sheriff’s Office, Howard County Sherriff’s Office, and the Iowa State Patrol. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-CR-02053.
Convictions through Guilty Pleas and Sentencings in Homeland Security Task Force (HSTF) Prosecutions (June 15 through June 18, 2026)Read the Press Release
SAN JUAN, Puerto Rico – The United States Attorney’s Office for the District of Puerto Rico, W. Stephen Muldrow, United States Attorney, in conjunction with our partner agencies in the Homeland Security Task Force (“HSTF”) announce the following prosecutorial results for the week of June 15 through June 18, 2026. The HSTF is a permanent, interagency law enforcement task force created by executive order to combat transnational criminal organizations—including cartels, trafficking networks, and foreign terrorist organizations.
Convictions through Guilty Pleas:
- On June 16, 2026, Eli Couvertier Pollock pleaded guilty to possession of a machinegun in Criminal Case 24-182. He also pleaded guilty to conspiracy to possess with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking in Criminal Case 24-453 (MAJ). Defendant was arrested on December 11, 2024. The court set defendant’s sentencing date for October 5, 2026. AUSAs Joseph Russell and Laura Díaz-González are in charge of the prosecution of the case.
- On June 18, 2026, Lino Calcaño-Rodríguez pleaded guilty to conspiracy to possess with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking in Criminal Case 24-453 (MAJ). Defendant was arrested on December 11, 2024. The court set defendant’s sentencing date for September 23, 2026. AUSAs Joseph Russell and Laura Díaz-González are in charge of the prosecution of the case.
- On June 18, 2026, Jan C. Dalmau-Román pleaded guilty to conspiracy to possess with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking in Criminal Case 24-453 (MAJ). Defendant was arrested on December 11, 2024. The court set defendant’s sentencing date for September 23, 2026. AUSAs Joseph Russell and Laura Díaz-González are in charge of the prosecution of the case.
- On June 18, 2026, Carlos Mercado-Molina pleaded guilty to conspiracy to possess with intent to distribute controlled substances in Criminal Case 24-453 (MAJ). Defendant was arrested on December 11, 2024. The court set defendant’s sentencing date for September 23, 2026. AUSAs Joseph Russell and Laura Díaz-González are in charge of the prosecution of the case.
- On June 18, 2026, Rodney Alexis Maldonado-Marquez pleaded guilty to conspiracy to possess with intent to distribute controlled substances in Criminal Case 25-365. Defendant was arrested on September 11, 2025. The court set defendant’s sentencing date for September 16, 2026. Special AUSA Javier Rivera and AUSA Andrés Orr are in charge of the prosecution of the case.
- On June 18, 2026, Efraín Ramírez-Cortés pleaded guilty to conspiracy to possess with intent to distribute controlled substances in Criminal Case 25-365. Defendant was arrested on September 11, 2025. The court set defendant’s sentencing date for September 16, 2026. SAUSA Javier Rivera and AUSA Andrés Orr are in charge of the prosecution of the case.
Sentencings:
- On June 15, 2026, Carlos Obed La Llave Otero was sentenced by United States District Court Judge Aida Delgado Colón to 60 months of imprisonment to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 20, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 15, 2026, Merchisede Rivera Rivera was sentenced by United States District Court Judge Aida Delgado Colón to 60 months of imprisonment to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 20, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 15, 2026, Isaías Molina Valle was sentenced by United States District Court Judge Aida Delgado Colón to 144 months of imprisonment to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking activities. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 24, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 15, 2026, Jomael Aponte Rivera was sentenced by United States District Court Judge Aida Delgado Colon to 144 months of imprisonment to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances and possession of firearms in furtherance of drug trafficking activities. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 6, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 15, 2026, Luis Joel Couret Clas was sentenced by United States District Court Judge Aida Delgado Colon to 12 months of imprisonment to be served consecutively to the sentence imposed in case number 24-059 (MAJ) to followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 2, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 15, 2026, Carlos Rodríguez Núñez was sentenced by United States District Court Judge Aida Delgado Colon to 27 months and fifteen days of imprisonment, to be served concurrently and consecutively to state court sentences, to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances. According to court documents, defendant was indicted on April 9, 2025, in Criminal Case 25-184 (ADC) and pleaded guilty on February 6, 2026. AUSAs Laura Díaz-González and Andrés Orr are in charge of the prosecution of the case.
- On June 16, 2026, Isaías Caleb De Jesús was sentenced by United States District Court Judge Maria Antongiorgi Jordan to 84 months of imprisonment to be followed by 8 years of supervised release for conspiracy to possess with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking. According to court documents, defendant was indicted on December 11, 2024, in Criminal Case 24-453 (MAJ) and pleaded guilty on March 17, 2026. AUSAs Laura Díaz-González and Joseph Russell are in charge of the prosecution of the case.
These prosecutions are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.
HSTF San Juan comprises agents and officers from the following federal partners: FBI, ICE-HSI, CBP (OFO, AMO and Border Patrol), the U.S. Marshals Service for Puerto Rico and the U.S. Virgin Islands, DEA, ATF, IRS, U.S. Coast Guard, U.S. Coast Guard Investigative Service, U.S. Postal Inspection Service, the Department of State, and the U.S. Secret Service, the Puerto Rico/U.S. Virgin Islands HIDTA, TSA, FAA, and the U.S. Attorney’s Offices for the Districts of Puerto Rico and the U.S. Virgin Islands.
The HSTF also has the following state and local law enforcement partners as participating agencies: the Puerto Rico Police Department; the San Juan, Carolina, Guaynabo, Barceloneta, and Ponce Municipal Police Departments, the Puerto Rico National Guard – Counter Drug Program; the Puerto Rico Department of Corrections and Rehabilitation; the Puerto Rico Internal Revenue Service (Hacienda); the Puerto Rico Port Authority; and the Virgin Islands Police Department.
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Clear Lake Shores man convicted of multiple offenses involving child sexual abuse materialRead the Press Release
GALVESTON, Texas - A 45-year-old man has been found guilty of possession of child pornography and access with intent to view it, announced Acting U.S. Attorney John G.E. Marck.
The jury deliberated for less than one hour before convicting Michael Harkless following a two-day trial.
The investigation revealed Harkless had been accessing child pornography since 2009.
Authorities executed a search warrant and seized several electronic devices. Forensic examination revealed approximately 14 videos and nearly 2,000 images containing child sexual abuse material. The videos depicted young children engaged in sexually explicit conduct.
Law enforcement found both laptop computers containing child sexual abuse material in his bedroom closet along with his passport and other items.
The jury heard that Harkless accessed CSAM images on one of the computers before deleting them.
The defense attempted to convince the jury the computers did not belong to Harkless. However, they observed emails, credit card records, letters, chat history and tax records belonging to him on the device.
The jury did not believe those claims and found him guilty as charged.
U.S. District Judge Jeffrey V. Brown presided over the trial and afterwards stated he will issue a sentencing date in the near future. Harkless faces up to 10 years in federal prison and a possible $250,000 maximum fine on each of the two counts of conviction.
Previously released on bond, Judge Brown ordered him into custody following the verdict where he will remain pending sentencing.
Immigration and Customs Enforcement Homeland Security Investigations, police departments in Galveston, Clear Lake Shores and Pearland as well as Jones Creek Marshals Office and Houston Metro Internet Crimes against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Kimberly Ann Leo and Michael Day are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative the Department of Justice launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Choctaw County Resident Pleads Guilty to Felony AssaultRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Andrea Dawn Cooper, age 34, of Sawyer, Oklahoma, entered a guilty plea to one count of Assault Resulting in Serious Bodily Injury in Indian Country, punishable by up to 10 years in prison and a $250,000 fine.
The Indictment alleged that on November 2, 2020, Cooper assaulted the victim, resulting in serious bodily injury.
The crime occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charge arose from an investigation by the Federal Bureau of Investigation and the Sawyer Police Department.
The Honorable Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Cooper was released on bond with conditions pending sentencing.
Assistant U.S. Attorney Lewis M. Reagan represented the United States.
Chinese citizen arrested, charged with money laundering and wire fraud conspiracy involving gold coins/bullionRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Michael DiGiacomo announced today that Didi Zou, 39, a citizen of China, was arrested and charged by criminal complaint with conspiracy to commit money laundering and conspiracy to commit wire fraud, which carry a maximum penalty of 20 years in prison.
According to the criminal complaint, on May 15, 2026, the Victim, a resident of Tonawanda, NY, received a Microsoft alert on their computer screen stating, “Microsoft Security” and to call (650) 479-XXXX. The Victim called and spoke to a purported “Microsoft security representative” named “Logan,” who informed them that someone was attempting to access the Victim’s account and attempting an approximate $22,000.00 transaction, which never went through. Logan provided Victim 1 with a “case number” and then transferred them to “Chirstopher Martin” from the “Cyber Fraud Division” of their bank. The Victim spoke with “Martin,” who stated he was also the liaison between the Internal Revenue Service and the bank. Martin advised the Victim to set up a bank account with the IRS on their personal banking website and move their funds to the IRS Bank because of the “hackers” in their computer.
At Martin’s instruction, the Victim downloaded a software that enables remote access to a computer for an external user via a user-provided password, which allowed Martin to essentially take over the Victim’s keyboard. Martin guided the Victim through an online banking process, likely gaining access to the Victim’s banking details and passwords. The Victim obeyed all instructions, fearing hackers would obtain their assets, which included profits from the sale of their parents’ house, inherited savings, and multiple CDs. The Victim subsequently, again at Martin’s instruction, gave $20,000 to an IRS “Agent” at a coffee shop near their residence and obtained gold coins/bullion to protect their funds in the “IRS Banking” account. The Victim made five purchases of gold coins/bullion and each time an “IRS agent” would travel from Flushing, NY to pick up the gold package. The fifth purchase occurred on June 18, 2026. After the Victim, working with investigators, gave the gold coins/bullion to the “IRS Agent,” defendant Zou was taken into custody.
Zou made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing.
The case is being prosecuted by Assistant U.S. Attorneys Paul E. Bonanno and Colleen M. McCarthy. The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Allen D. Davis II, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Harry T. Chavis, Jr., and the New York State Police, under the direction of Major Amie Feroleto.
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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Chemours Agrees to $450M Landmark Settlement Agreement for Releases of PFAS “Forever Chemicals” in West Virginia, North Carolina, and New JerseyRead the Press Release
Today, the Justice Department, Environmental Protection Agency (EPA), and West Virginia Department of Environmental Protection (WV DEP) announced a multi-state settlement with The Chemours Company under the Clean Water Act, Resource Conservation and Recovery Act, Toxic Substance Control Act, and West Virginia Water Pollution Control Act. The settlement covers four Chemours facilities — located in West Virginia, North Carolina, and New Jersey — that use or produce PFAS (per- and polyfluoroalkyl substances), which are synthetic “forever chemicals” used to make products resistant to water, grease, and stains. Chemours also manufactures PFAS for various industrial and military applications, including those where substitutes are not readily available. This is the first comprehensive settlement by the federal government to resolve enforcement claims over pollution by a manufacturer of forever chemicals.
Under the agreement, Chemours will pay a civil penalty of $22.5 million for alleged violations and conduct a multi-year, $90 million program to mitigate PFAS discharges. Chemours will also install PFAS pollution controls for surface water discharges and air emissions at its facility in West Virginia, at an estimated cost of $60 million, supply clean drinking water for more than a decade to communities that surround its facilities in West Virginia and New Jersey at an estimated cost of $280 million, and evaluate options and implement corresponding controls to reduce releases of PFAS and other toxic chemicals from its facility in North Carolina. Combined, the cost of the penalty and injunctive relief programs are estimated to exceed $450 million. The settlement allows Chemours to continue manufacturing PFAS for critical commercial and military applications while preventing future contamination and protecting communities from that contamination.
“This landmark settlement shows the Administration’s commitment to protecting the public from harmful pollution,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Through this commitment, Chemours will better control PFAS at its plants, allowing the company to continue its manufacturing operations while protecting communities in North Carolina, West Virginia, and New Jersey from PFAS exposure. This agreement ensures that the company will manufacture these critical materials in a responsible manner.”
“This first comprehensive federal settlement against a major PFAS manufacturer delivers on the Trump Administration’s promise to make polluters pay and stop PFAS contamination at the source,” said Assistant Administrator Jeffrey A. Hall for EPA’s Office of Enforcement and Compliance Assurance. “By appropriately employing the full suite of existing legal authorities, we can greatly reduce PFAS contamination of water, land, and air and even begin to mitigate past harm. This settlement brings Chemours into compliance with the law and holds it fully accountable.”
“As Attorney General, my office investigated Chemours and took crucial steps needed to reach this settlement and position the state to reach justice for West Virginians — we will continue to ensure that every company complies with our laws,” said West Virginia Governor Patrick Morrisey. “This settlement is an encouraging first step, but it addresses only one piece of a much larger issue. We remain actively engaged in discussions to reach a comprehensive resolution for the Washington Works facility that protects our citizens and ensures West Virginia's communities have confidence that these issues are being addressed for the long term. We look forward to continuing those discussions and achieving an outcome that serves the best interests of the Mountain State.”
The complaint alleges that three of the facilities that Chemours operates in West Virginia, North Carolina, and New Jersey discharged PFAS into the Ohio River, Cape Fear River, and Delaware River, in violation of permits required by the Clean Water Act and the West Virginia Water Pollution Control Act. Also, Chemours was allegedly not complying with legal requirements under the Toxic Substances Control Act at all four facilities. These alleged violations continued for over a decade. The facilities were previously owned for many decades by DuPont, and today’s settlement does not resolve DuPont’s liability for forever chemicals.
As a result of the alleged violations, people living around these facilities were exposed to illegal PFAS. PFAS are widely used and found around the world, with scientific studies showing that exposure to some PFAS in the environment may be linked to harmful health effects in humans and animals.
To remedy the alleged violations, the consent decree calls for 14 specified projects to reduce PFAS in wastewater, stormwater, and groundwater from the West Virginia plant, such as treatment systems using granulated activated carbon. And for people drinking water near the plants in West Virginia and New Jersey, Chemours will test the drinking water and provide treated or alternative clean water. Also, Chemours will be required to control releases of the chemical compound GenX — used to aid in making plastics called fluoropolymers — from each facility at an efficiency of at least 99%. Additionally, Chemours will implement controls at its North Carolina facility to mitigate releases of PFAS and other toxics based on recommendations from a third-party engineering firm. These programs will last for 15 years.
Chemours will also implement enhanced Leak Detection and Repair programs to reduce emissions of PFAS. Finally, Chemours must certify compliance with respect to its storage of hazardous waste.
Attorneys with ENRD’s Environmental Enforcement Section lodged the consent decree in the U.S. District Court for the Southern District of West Virginia. The consent decree is subject to a public comment period and is available at www.justice.gov/enrd/consent-decrees.
The EPA investigated the case with assistance from WV DEP. More information on the settlement is available on EPA’s Chemours Settlement Summary – June 2026 webpage.
Senior Counsel Steve O'Rourke and Katherine Abend and Trial Attorneys Sylvia Lam, and Jonah Seligman with ENRD’s Environmental Enforcement Section, and Assistant U.S. Attorney Jason Bailey for the Southern District of West Virginia are handling this matter. Gracie Pendleton is the lead EPA attorney.
Celina Pharmacy Owner Sentenced for Opioid Distribution/Health Care FraudRead the Press Release
NASHVILLE – Thomas K. Weir, 65, of Celina, Tennessee, the majority owner of Oakley Pharmacy, doing business as Dale Hollow Pharmacy and Clay County Xpress Pharmacy, was sentenced June 18, 2026, to 24 months in federal prison, ordered to pay $1,419,974 in restitution to Medicare and TennCare, and required to forfeit the pharmacy building and warehouse used in the scheme for his role in a years-long conspiracy to unlawfully dispense controlled substances and defraud federal and state health care programs, announced United States Attorney Braden H. Boucek for the Middle District of Tennessee.
U.S. District Judge Aleta A. Trauger imposed the sentence.
Weir's sentence concludes the criminal prosecution of all four defendants charged in the conspiracy.
"The defendants turned trusted community pharmacies into engines for opioid distribution and health care fraud," said United States Attorney Braden H. Boucek. "Rather than serving patients and protecting public health, they ignored clear warning signs, fueled the unlawful distribution of dangerous drugs, and billed taxpayer-funded health care programs for the privilege. Today's sentence, along with the forfeiture of the property used to facilitate these crimes, demonstrates that those who choose profit over patient safety will be held accountable."
Weir previously pleaded guilty to conspiracy to distribute and dispense controlled substances, conspiracy to commit health care fraud, and conspiracy to violate the Anti-Kickback Statute.
Co-defendants William L. Donaldson, 65, former owner and pharmacist of Dale Hollow Pharmacy; Pamela Spivey, 55, co-owner of Xpress Pharmacy; and Charles Robert "Bobby" Oakley, 74, of Manchester, Tennessee, a minority owner of Dale Hollow Pharmacy, previously pleaded guilty and were sentenced for their roles in the scheme. Donaldson was sentenced to 24 months in prison. Oakley and Spivey were each sentenced to three years of probation and ordered to pay criminal restitution.
According to court records, the conspiracy operated for approximately five years and involved the unlawful dispensing of controlled substances and the submission of fraudulent claims to Medicare and TennCare.
Between 2014 and 2019, the conspirators operated Dale Hollow Pharmacy and Xpress Pharmacy in Celina, Tennessee, as sources of controlled substances for patients despite numerous red flags indicating abuse, diversion, and prescriptions issued outside the usual course of professional practice and without a legitimate medical purpose. Patients routinely traveled long distances, often in groups, to obtain controlled substances from the pharmacies.
In May and June 2016, Drug Enforcement Administration diversion investigators inspected Dale Hollow Pharmacy. The following year, Weir and others entered into a Memorandum of Agreement with the DEA addressing violations of federal regulations governing the dispensing of controlled substances. Despite that agreement, dispensing practices continued, and the volume of controlled substances dispensed by both pharmacies increased, along with clear signs of abuse and diversion.
The conspirators also submitted false and fraudulent claims to Medicare Part D plans and TennCare for controlled substances dispensed to beneficiaries, including medically unnecessary combinations of highly abused drugs. To increase prescription volume, the conspirators engaged in a kickback scheme that included paying patient co-payments, distributing a fictitious currency known as "Monkey Bucks" that could be redeemed for cash, and paying patients cash to fill prescriptions that were subsequently billed to Medicare and TennCare.
“Today’s sentencing represents another important step in our ongoing efforts to combat health care fraud and opioid abuse,” said Kelly Blackmon, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “Our collaboration with federal, state, and local law enforcement partners helps ensure that those responsible are held accountable, while safeguarding our communities and protecting the integrity of federal health care programs.”
"Pharmacy owners like Mr. Weir who exploit the most vulnerable and seek to profit from addiction must be held to account; we've lost too many Americans to opioid abuse," said Special Agent in Charge Jim Scott, head of DEA’s Louisville Field Division. “It’s vitally important that pharmacies operate within the laws designed to prevent diversion of medications that carry a high potential for abuse.”
“Cases like these reflect the nonstop, coordinated efforts of federal, state, and local partners to protect innocent patients and tax dollars,” said David Rausch, Tennessee Bureau of Investigation Director. “We will continue working around the clock to dismantle schemes that endanger public health, and we will not relent in ensuring that those who exploit vulnerable communities for profit are brought to justice.”
As part of his sentence, Weir was ordered to forfeit real property used to facilitate the offenses, including the pharmacy building and an associated warehouse, as well as a money judgment exceeding $700,000.
Two pharmacists-in-charge associated with the pharmacies, John Polston, 64, of Tompkinsville, Kentucky, and Michael Griffith, 41, of Mount Juliet, Tennessee, were charged separately, pleaded guilty, and cooperated with the government's investigation and prosecution. They are scheduled to be sentenced in July.
This case was investigated by the Drug Enforcement Administration, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation, with assistance from the Clay County Sheriff's Office and the Celina Police Department.
Assistant U.S. Attorneys Sarah K. Bogni and Zachary T. Hinkle prosecuted the case. The forfeiture was secured through the substantial efforts of Assistant U.S. Attorney Stephanie N. Toussaint and the Asset Forfeiture Unit. Assistant U.S. Attorney Ellen Bowden-McIntyre is handling related civil litigation.
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Cape May County Psychiatrist Admits to 17 Felony Counts for Unlawful Controlled Substance Prescriptions Linked to Sexual Conduct, Risk of Death, and Serious Bodily InjuryRead the Press Release
CAMDEN, N.J. – A South Jersey psychiatrist admitted to issuing invalid prescriptions for Adderall, Vyvanse, and Xanax, and other drugs, often to his sexual partners and known drug addicts, U.S. Attorney Robert Frazer announced.
“Licensed medical professionals who prescribe powerful controlled substances outside the bounds of legitimate medical care put lives at risk and undermine public trust in the medical profession. As admitted in court, Morelli issued unlawful prescriptions for highly addictive drugs to sexual partners, known drug addicts, and others without a legitimate medical purpose—even after receiving repeated warnings about abuse, overdose, and diversion. This Office will continue to work with our law enforcement partners to hold accountable medical providers who exploit their prescribing authority and contribute to the prescription drug crisis in our communities.”
- U.S. Attorney Robert Frazer
“Medical professionals hold a position of enormous trust, and when that trust is abused for personal gain or exploitation, the consequences can be devastating,” said DEA New Jersey Field Division Special Agent in Charge Towanda R. Thorne-James. “The conduct admitted to in this case represents a betrayal of patients, the medical profession, and public trust. DEA will continue working alongside our partners to investigate and prosecute medical practitioners who exploit patients and illegally distribute controlled substances for personal benefit.”
Louis Morelli, 73, of Cape May County, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with 17 counts of causing, with the intent to defraud and mislead, prescription drugs to be dispensed without valid prescriptions.
According to documents filed in this case and statements made in court:
Morelli owned and operated his own psychiatry practice in Smithville, New Jersey, where he worked as a licensed psychiatrist. Over several years, Morelli issued invalid prescriptions for Adderall, Vyvanse, and Xanax to 17 different patients, and he caused these prescription drugs to be distributed outside the scope of the usual course of professional practice and for reasons other than medical necessity and legitimate medical purpose. Morelli issued the prescriptions with the intent to defraud and mislead the pharmacies that were dispensing the prescription drugs, as well as the insurers, government benefits programs, and other third parties who paid for the drugs.
Morelli admitted that he had sex with some of the patients for whom he wrote invalid prescriptions. On some occasions, Morelli wrote the prescriptions in exchange for sexual activities, images, or videos. For example, one of Morelli’s patients sent a message asking for a prescription drug, and Morelli responded with. “Your ass for my script…lol.” Morelli engaged in similar conversations with other patients, while issuing prescriptions and engaging in sexual activities with them.
Morelli also issued invalid prescriptions to patients whom he knew had histories of drug addiction and overdoses. Morelli also prescribed drugs to patients after receiving information, including from local law enforcement officers, suggesting that the patients intended to illegally trade, distribute, or otherwise re-sell the prescribed drugs.
Morelli admitted that at least one of his invalid prescriptions involved the conscious or reckless risk of death or serious bodily injury, and that at least one of the prescriptions resulted in either death or serious bodily injury.
For example, in 2019, Morelli received a message from a patient’s mother that the patient was abusing the drugs that Morelli had prescribed. The mother wrote that the patient had stopped breathing the day before. A couple of months later, Morelli learned that the same patient “took a lot of Xanax and drank some beers,” “took 50 benzos in a short amount of time,” and “told a friend” the patient planned “to shoot up.” The patient’s mother also warned Morelli that the patient was “grooming” him to ask for prescriptions and asked Morelli to stop prescribing the drugs. Despite these communications, Morelli continued to prescribe the drugs to the patient.
Each of the 17 charges to which Morelli pleaded guilty is punishable by a maximum term of three years in prison, for a total maximum term of 51 years in prison. Each charge is also punishable with a $250,000 fine. Morelli has voluntarily surrendered his Drug Enforcement Administration Certificate of Registration and agreed to immediately surrender and abandon his licenses to practice medicine or psychiatry. Sentencing for Morelli is scheduled for October 27, 2026.
U.S. Attorney Frazer credited the following agencies and agency personnel with the investigation: special agents, task force officers, and diversion investigators with the Drug Enforcement Administration (DEA) New Jersey Field Division, under the direction of Special Agent in Charge Towanda R. Thorne-James; special agents of the Federal Bureau of Investigation (FBI) Newark Field Office, under the direction of Special Agent in Charge Stefanie Roddy; special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Fernando McMillan; and special agents of the Department of Health and Human Services-Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz.
The government is represented by Assistant U.S. Attorneys Andrew D’Aversa and Sara Aliabadi of the U.S Attorney’s Office in Camden.
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Defense Counsel: Edwin J. Jacobs, Jr. and Patrick C. Joyce, Esquires.
morelli.information.pdfCamden Man Sentenced to 9 Years in Federal Prison for Uploading Child PornographyRead the Press Release
EL DORADO – A Camden man was sentenced on June 15, 2026, to 108 months in federal prison to be followed by 10 years of supervised release for uploading child pornography to an online storage platform. The Honorable Susan O. Hickey presided over the sentencing hearing, which was held in the U.S. District Court in El Dorado.
According to court documents, Calvin Thomas Brown, age 43, uploaded images and videos depicting child pornography to an internet-based storage program. The upload sparked a CyberTipline Report by the National Center for Missing and Exploited Children that was later transferred to the Federal Bureau of Investigation. The investigation revealed that Brown had not only uploaded child pornography but also possessed more than a hundred similar images and videos on his cellphone. Additionally, agents discovered that Brown had been chatting online with like-minded offenders and soliciting and receiving child pornography files.
Brown was indicted by a Grand Jury in the Western District of Arkansas in July of 2025 and entered a plea of guilty in November of 2025.
U.S. Attorney Kevin R. Holmes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigation and Camden Police Department investigated the case.
Assistant U.S. Attorney Devon Still prosecuted the case on behalf of the United States.
This case was prosecuted 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.
Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.
California Fentanyl and Methamphetamine Trafficker Sentenced to over Eighteen Years in Prison in Homeland Security Task Force InvestigationRead the Press Release
HONOLULU – United States Attorney Ken Sorenson announced that Bill Van Nguyen, a/k/a “Sau,” 57, of Garden Grove, California, was sentenced on June 22, 2026 by Senior United States District Judge Helen Gillmor to 220 months in prison followed by 5 years of supervised release for distributing, attempting to distribute, and conspiring to distribute methamphetamine and fentanyl. The court also imposed a money judgment ordering Nguyen to forfeit $118,050 in drug proceeds.
According to court records, between April 2023 and April 2025, Nguyen sold and distributed over thirty-four and a half pounds of methamphetamine and eleven and a half pounds of fentanyl and fentanyl-laced pills from his base of operations in California to a Hawaii purchaser, who was an undercover law enforcement employee (the “undercover”). Nguyen sold the drugs to the undercover for approximately $118,050 and shipped them from California to Hawaii, concealing the drug shipments in canned goods labeled as hominy and condensed milk. Nguyen told the undercover he had a supplier in Mexico, traveled to Mexico during the timeframe of the conspiracy, and had access to other drugs, including oxycodone cocaine, and ketamine.
Over an approximately two-year period, Nguyen communicated with the undercover by text, phone calls, and in-person meetings in California. Nguyen directed and conspired with another California individual, Dylan Dang, who traveled to Hawaii on two occasions to meet with the undercover to take cash payments for the drug transactions. Dang has pleaded guilty to conspiring to distribute methamphetamine and fentanyl and is scheduled to be sentenced in the District of Hawaii on July 7, 2026.
“Bill Van Nguyen made the choice to traffic massive amounts of crystal methamphetamine and fentanyl into Hawaii, and for those efforts, he will now spend most of the next two decades doing hard time in federal prison,” said U.S. Attorney Ken Sorenson. “The 220-month sentence in this case sends the clear message that trafficking deadly drugs like methamphetamine and fentanyl in Hawaii is a one-way ticket to a long prison sentence.”
“Drug trafficking organizations operate with indifference toward the communities and lives they destroy—all to make a profit,” said FBI Honolulu Special Agent in Charge David Porter. “This sentence is a direct result of the collaboration and dogged work of our federal, state, and local partners to dismantle criminal drug trafficking networks. The FBI is committed to removing these dangerous narcotics—and the individuals who push them—from our streets.”
The FBI investigated the case with assistance from the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Honolulu Police Department, and Orange County Sheriff’s Department.
Assistant U.S. Attorney Rebecca A. Perlmutter prosecuted the case.
This prosecution was part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Hawaii comprises agents and officers from ICE-HSI, FBI, ATF, CBP, CGIS, DCIS, DEA, DSS, IRS-CI, NCIS, USMS, USPIS and HHIDTA with the prosecution being led by the United States Attorney’s Office for the District of Hawaii.
Caldwell Woman Charged in the District of Idaho as Part of the National Health Care Fraud TakedownRead the Press Release
BOISE – United States Attorney Bart M. Davis announced criminal charges against defendant Niki Rashel Cook in connection with an alleged scheme to defraud healthcare businesses. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges stem from Cook’s alleged scheme to obtain nursing jobs at healthcare businesses by fraudulently representing herself to be a registered nurse and licensed practical nurse.
The charges announced by U.S. Attorney Davis are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. The Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
The coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individual was charged in the District of Idaho:
- Niki Rashel Cook, 47, of Caldwell, Idaho, was charged by indictment with wire fraud and aggravated identity theft in connection with an alleged scheme to obtain nursing jobs at healthcare businesses by fraudulently representing herself to be a registered nurse and licensed practical nurse. As alleged in the indictment, Cook, using victims’ names and nursing licenses, applied for and obtained jobs at healthcare facilities, including a behavioral health hospital, a rehabilitation hospital, a skilled nursing facility, and businesses providing hospice services, earning over $22,000 as a result of her scheme. The case is being prosecuted by Assistant U.S. Attorney Darci Crane of the District of Idaho.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced.
Descriptions of each case involved in the enforcement action are available on the Department’s website here.
The District of Idaho, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the case filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General and the Boise Police Department.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information or complaint 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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Bryan County Resident Pleads Guilty to Assault ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devin Kyle Wain Dollar, age 36, of Durant, Oklahoma, entered a guilty plea to one count of Assault Resulting in Serious Bodily Injury in Indian Country, one count of Assault with a Dangerous Weapon with Intent do Bodily Harm in Indian Country, and one count of Assault of a Spouse, Intimate Partner, and Dating Partner by Strangling and Attempting to Strangle in Indian Country, each punishable by up to 10 years in prison and a $250,000 fine.
The Indictment alleged that on June 15, 2024, Dollar assaulted one victim, resulting in serious bodily injury.
The Indictment also alleged that on that same date, Dollar assaulted a second victim with a dangerous weapon, with intent to do bodily harm.
The Indictment further alleged that on February 8, 2025, Dollar assaulted a third victim by strangling and attempting to strangle his intimate dating partner.
The crimes occurred in Bryan County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Federal Bureau of Investigation, the Choctaw Nation Lighthorse Police Department, the Durant Police Department, and the Bryan County Sheriff’s Office.
The Honorable Jason A. Robertson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Dollar will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Edith A. Singer represented the United States.
Brooklyn Man Charged with Coercing and Raping a 14-Year-Old Delaware ResidentRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment today charging a Brooklyn, New York, man with coercion and enticement of a minor and for traveling to Delaware to rape his victim.
According to court documents, Claude Lennon, 24, communicated with a 14-year-old victim via an online messaging platform and engaged in sexually-charged conversations. Through those conversations, Lennon learned the victim’s age and nevertheless arranged to meet the victim in Wilmington, Delaware. Lennon then traveled by train from New York to Wilmington and took an Uber to an agreed-upon location, after which Lennon and the victim engaged in sexual conduct constituting rape in the fourth degree under Delaware law. Lennon also brought condoms with him and provided the victim with approximately $80 and marijuana edibles.
Lennon is charged with one count of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b), and one count of travel with the intent to engage in illicit sexual conduct, in violation of 18 U.S.C. § 2423(b). If convicted, Lennon faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Benjamin L. Wallace made the announcement.
The FBI Baltimore Field Office’s Wilmington Resident Agency, the Wilmington Police Department, and the New York City Police Department investigated the case. Assistant U.S. Attorneys Claudia L. Pare and Bryan C. Williamson are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:26-cr-104.
The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bronx Man Sentenced to 33 Years and Four Months in Prison for Kidnapping, Sex Crimes, and Child Pornography OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that ANTHONY WALLACE was sentenced today by U.S. District Judge Mary Kay Vyskocil to 33 years and four months in prison for kidnapping a minor, coercing and enticing a minor, transporting a minor interstate for unlawful sexual activity, and producing and possessing child pornography. WALLACE was convicted following a week-long jury trial in December 2025 before Judge Vyskocil.
“Anthony Wallace met a 15-year-old girl on the street and targeted her for unimaginable abuse and cruelty,” said U.S. Attorney Jay Clayton. “Over the course of weeks, Wallace physically, sexually, and psychologically abused this minor victim, until she courageously escaped out a fire escape. This type of abuse and exploitation is every parent’s worst nightmare. Wallace is now where he belongs and where every New York parent wants him—off our streets. Our office, together with the NYPD and our federal partners, has devoted substantial resources to combatting sex trafficking and sex crimes involving children and our most vulnerable. Our victim-oriented approach has resulted in more prosecutions and more predators off the streets. It also has shown us that we must do more, and we are most effective when we engage as early as practicable with victims and with our communities. If you have been a victim of a sex crime or have information regarding a sex crime, please call 1-866-874-8900.”
According to the allegations contained in the Indictment, the evidence presented at trial, and other statements made in public court proceedings:
In March 2024, WALLACE met a 15-year-old girl (the “Minor Victim”) in Binghamton, New York. Over the next four weeks, WALLACE subjected the Minor Victim to escalating physical, sexual, and psychological abuse. At first, WALLACE kept the Minor Victim against her will in an apartment in Binghamton. There, WALLACE assaulted the Minor Victim and forced her to disguise her appearance by dyeing her hair and wearing a mask. WALLACE also gave the Minor Victim a steady stream of drugs, including methamphetamine and marijuana. While in Binghamton, WALLACE created child pornography of the Minor Victim, which he kept on his cellphone.
On April 1, 2024, WALLACE transported the Minor Victim from Binghamton across state lines, ultimately bringing her to the Bronx, New York, where he kept her in a barricaded apartment. While in the Bronx, WALLACE continued to physically assault the Minor Victim and forcibly raped her.
On April 4, 2024, the Minor Victim escaped through the window of the Bronx apartment while WALLACE was sleeping. The Minor Victim immediately called 911 and was eventually returned home to her parents.
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In addition to the prison term, WALLACE, 33, of the Bronx, New York, was sentenced to 10 years of supervised release, along with $3,000 in restitution and $500 in mandatory special assessments.
Mr. Clayton praised the outstanding investigative work of the FBI’s C20 task force and the NYPD. He also thanked the Broome County Sherriff’s Office for their assistance in this investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Ariana L. Bloom, Remy Grosbard, Joseph H. Rosenberg, and Alexandra N. Rothman are in charge of the prosecution, with the assistance of Paralegal Specialists Samantha Roberts and Benjamin Coolman.
Bridgeport Man Sentenced to 5 Years in Federal Prison for Trafficking Fentanyl in Southwestern ConnecticutRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that MONTEL CAPLE, also known as “Forbes,” 30, of Bridgeport, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment and three years of supervised release for his involvement in a southwestern Connecticut narcotics trafficking ring.
According to court documents and statements made in court, in 2022, the FBI Bridgeport Safe Streets Task Force, which was investigating gang activity in the South End and West Side of Bridgeport, identified Christian Pichardo as a supplier of various narcotics to gang members and other drug distributors. During the investigation, investigators intercepted calls and text messages over court-authorized wiretaps between Pichardo and his associates, made controlled purchases of narcotics, and seized drugs from members of the conspiracy and their drug customers. Some of the drugs seized during the investigation had been cut with fentanyl analogues, nitazines, and xylazine. Nitazines are synthetic opioids stronger than fentanyl, and xylazine is a large animal tranquilizer.
Pichardo supplied fentanyl to Caple, which Caple sold to his own customers. Caple also sometimes supplied narcotics to Pichardo.
Caple was arrested on August 5, 2024. On December 11, 2025, he pleaded guilty to conspiracy to possess with intent to distribute controlled substances.
Caple, who is released on a $100,000 bond, is required to report to prison on August 24.
Pichardo pleaded guilty to a related charge and, on July 14, 2025, was sentenced to 12 years of imprisonment.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, the Drug Enforcement Administration, and the Bridgeport, Stratford, and Norwalk Police Departments. The case was prosecuted by Assistant U.S. Attorney Karen L. Peck.
Boston Man Sentenced for Distribution of Methamphetamine and FentanylRead the Press Release
Boston Man Sentenced for Distribution of Methamphetamine and Fentanyl
CONCORD – A Boston man was sentenced today in federal court for distribution of methamphetamine and fentanyl, U.S. Attorney Erin Creegan announces. Jeison Eulogio Dume-Calderone, 28, was sentenced by U.S. District Chief Judge Samantha D. Elliott to 70 months in federal prison and one year of supervised release. Dume-Calderone pleaded guilty to the charges on December 1, 2025. The Department of Homeland Security has determined that Dume-Calderon is a citizen of the Dominican Republic who is present in the United States unlawfully.
“Today’s sentence underscores our office’s commitment to combating the flow of methamphetamine and fentanyl into our communities. This defendant chose to traffic in highly addictive and dangerous drugs and now will be held accountable,” said U.S. Attorney Creegan.
“Drug traffickers who move pounds of methamphetamine and fentanyl into our communities are driven by profit, with no regard for the lives they put at risk” said Special Agent in Charge Jarod Forget, New England Field Division. “Today’s sentence sends a clear message that those who traffic these deadly substances into New Hampshire will be identified, investigated, and held accountable. DEA and our law enforcement partners remain committed to disrupting the supply of illicit drugs and protecting families from the devastating consequences of addiction, overdose, and drug-related violence.”
The investigation was led by the United States Drug Enforcement Administration. Assistant U.S. Attorney Jennfer C. Davis is prosecuting the case.
This effort is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Baltimore Man Sentenced for Role in Drug Trafficking Conspiracy Following HSTF InvestigationRead the Press Release
Baltimore, Maryland – A Baltimore man is headed to federal prison for his role in a drug trafficking conspiracy.
U.S. Chief District Judge George L. Russell sentenced Nathaniel Lightford, 47, to nine years in prison, followed by five years of supervised release, for conspiring to distribute and possessing with intent to distribute 500 grams or more of cocaine.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Christopher C. Goumenis, Drug Enforcement Administration (DEA) – Washington Division, and Special Agent in Charge Jimmy Paul, FBI Baltimore Field Office. This prosecution is part of the Trump Administration’s Homeland Security Task Force (HSTF) initiative.
According to court documents, in fall 2022, the DEA and FBI began investigating a drug trafficking conspiracy involving several individuals connected to a drug trafficking organization who were distributing cocaine in the Baltimore area. During the investigation, law enforcement obtained court-authorized wiretaps for several cell phones. Investigators intercepted calls in which Lightford and co-conspirators used coded language to discuss distributing cocaine, arrange meetings to distribute cocaine, and obtain the cash proceeds. Additionally, investigators conducted surveillance connected to intercepted communications in which they observed Lightford engaging in suspected drug transactions.
Then in June 2024, investigators executed federal search warrants on several residences associated with suspected DTO members. This included two residences associated with Lightford. Lightford was present while law enforcement searched his Randallstown, Maryland, residence. During the search, investigators recovered a cell phone, driver’s license, and five brick-shaped objects hidden under a comforter on a bed. The brick-shaped objects contained white powder substances that lab analysis later confirmed was positive for cocaine. Investigators also found approximately $12,232 in cash.
While searching Lightford’s primary residence in Randallstown, investigators also searched a second residence associated with him located in Baltimore City. The Baltimore residence was used as the DTO’s stash location. In the Baltimore residence, investigators found a gas mask, pill press, pill-press parts, empty glassine wrappers, Narcan, cutting agents, digital scales, powdered quinine, and ammunition.
The Homeland Security Task Force (HSTF) is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Baltimore comprises agents and officers from the Federal Bureau of Investigation (FBI); Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI); the United States Attorney’s Office (USAO) for the District of Maryland; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the Internal Revenue Service-Criminal Investigation (IRS-CI); the United States Marshals Service (USMS); the Washington/Baltimore HIDTA (W/B HIDTA); the Maryland State Police (MSP); the Baltimore Police Department (BPD); and the Baltimore County Police Department (BCPD) with the prosecution being led by the United States Attorney’s Office for the District of Maryland.
U.S. Attorney Hayes commended the DEA and FBI for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Sarah Simpkins who prosecuted this federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md.
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Armed Carjacker and Repeat Violent Offender Sentenced to 170 Months for Multiple Firearms Offenses while on Federal Supervised ReleaseRead the Press Release
MINNEAPOLIS – United States Attorney Daniel N. Rosen announced today that Cameron Davon Durand, 32, was sentenced to 170 months in federal prison for possession of a firearm as a felon in Minneapolis, Minnesota, and for discharging a firearm during and in relation to a crime of violence, namely, an armed carjacking in St. Paul, Minnesota. At the time of the offenses, Durand was serving a term of federal supervised release for a 2019 federal conviction for being a felon in possession of a firearm, for which he had been previously sentenced to 90 months’ imprisonment.
U.S. District Judge Donovan W. Frank imposed the sentence on June 22, 2026, following Durand’s guilty plea on December 17, 2025, to two federal counts and his admission to multiple supervised‑release violations stemming from the same violent conduct. The sentence consisted of 50 months’ imprisonment for the felon-in-possession conviction, and 120 months’ mandatory minimum imprisonment for the discharge of the firearm during the carjacking, consecutive to the felon-in-possession term of imprisonment, for a total of 170 months. The court also imposed 30 months’ imprisonment, concurrent with the 170-month term, for Durand’s supervised-release violations.
According to court-filed documents, Durand, already a multi‑convicted felon, was just one month into federal supervised release for his prior firearms federal conviction when he committed a series of new gun crimes during the summer of 2025. In June 2025, officers recovered a loaded 9mm firearm, with an attached red-dot sight, from his vehicle, later confirmed to contain Durand’s DNA. In the weeks that followed, Durand was captured on surveillance video firing another weapon in a densely populated St. Paul neighborhood outside a bar. Then, on July 18, 2025, Durand brandished a firearm, carjacked an Uber driver, chased the victim on foot, and fired a round at him as the victim ran for his life, before driving away in the carjacked vehicle.
Durand fled from responding officers at high speed, abandoned the carjacked vehicle, and escaped on foot with a firearm in his hand. Inside the victim’s car, police recovered Durand’s backpack containing multiple forms of his identification and 9mm ammunition. A discharged 9mm casing found at the scene of the carjacking matched the ammunition inside his backpack.
“This sentence ensures that a dangerous and escalating menace is no longer free to terrorize our communities,” said United States Attorney Daniel N. Rosen. “Durand has demonstrated, repeatedly and over nearly two decades, that no term of supervision, no prior prison sentence, and no tragic personal history will deter him from armed violence. Today’s sentence protects the public and holds him accountable.”
“Durand is a violent offender, and he has been for a long time,” said Assistant Special Agent in Charge Spence Burnett of the ATF St. Paul Field Division. “This is the second ATF investigation to hold him accountable. He has a record of using guns to threaten and harm people, and weeks out of federal prison from a prior ATF case he did it again, arming himself and shooting at an innocent man. He will serve 170 months in federal prison, and ATF will continue to stand with our partners to hold violent offenders accountable. We appreciate the great partnership with St. Paul Police Department on this case.”
Saint Paul Police Chief Axel Henry said, “This sentencing reflects the commitment of the Saint Paul Police Department, and our federal partners, to hold those who commit violent crimes accountable. Repeated, violent crimes, must be met with serious consequences. This case demonstrates that and hopefully lets those who have been victimized know that we stand with them and for them.”
Durand’s criminal history dating back to 2007 includes numerous felony convictions involving firearms, assaults, robbery, and gang‑related violence.
This case is the result of an investigation by the ATF, the Saint Paul Police Department, and the Hennepin County Sheriff’s Office.
Assistant United States Attorney Benjamin Bejar prosecuted the case.
Arizona man sentenced to 4 years in prison for trafficking fentanyl to MontanaRead the Press Release
MISSOULA – An Arizona man who was part of a drug trafficking organizing that brought fentanyl into Montana was sentenced today to four years in prison, followed by five years of supervised release, Acting U.S. Attorney Mark Steger Smith said.
D’Andre Dontae Glass, 36, pleaded guilty in February 2026 to one count of possession with intent to distribute fentanyl.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Glass was part of a drug trafficking organization and oversaw the delivery of packages of fentanyl to Montana and two other western states.
Between February 2023 and March 2025 Gerad Nigel Punch led a drug trafficking organization that supplied fentanyl from Phoenix to local dealers in Texas, Washington, and Montana. In 2023 and 2024, Glass worked for the organization and mailed packages with fentanyl to the three states. He also visited Montana and the other two states to oversee the package deliveries, and to distribute the fentanyl to local dealers.
While working for the organization, Glass possessed more than 400 grams of fentanyl that he intended to distribute. During the investigation of the organization, law enforcement seized over 10 kilograms of fentanyl from its members.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Montana comprises agents and officers from multiple law enforcement agencies with the prosecution being led by the United States Attorney’s Office for the District of Montana.
Assistant U.S. Attorney Brian Lowney prosecuted the case. The Southwest Montana Drug Task Force and the Montana Division of Criminal Investigation conducted the investigation.
Arizona Man Charged with Hate Crime for Defacement of SynagogueRead the Press Release
PHOENIX, Ariz. – A federal grand jury in Phoenix yesterday returned an indictment against Kevin Charles Pyles, 33, of Glendale, Arizona for the Intentional Defacement of Religious Real Property.
The indictment alleges that Pyles defaced Sha’arei Shalom Congregation, a synagogue in Phoenix, on July 11, 2025. On that day, Pyles posted an antisemitic flyer on the synagogue’s front door. Pyles had previously pleaded guilty to Attempted Making and Communicating a Terrorism Threat in Maricopa County Superior Court. Those charges related to online threats Pyles made targeting the Jewish community and Sha’arei Shalom Congregation.
“This indictment is a message to the community – we will not tolerate the defacement or destruction of any house of worship,” said U.S. Attorney Timothy Courchaine. “Members of the Arizona community should feel free to worship without the fear of harassment.”
“Every Arizonan has the right to feel safe in his or her community,” said FBI Phoenix Special Agent in Charge Rebecca Day. “For this reason, investigating hate crimes is one of the FBI’s highest priorities and this office along with our law enforcement partners remain steadfast in our pursuit of offenders.”
“Everyone who calls Phoenix home, and everyone who visits our city, deserves to feel welcome and safe. Acts that target or intimidate any part of our community undermine the values we stand for,” said Phoenix Police Department Chief Matt Giordano. “The Phoenix Police Department takes these crimes seriously, and we remain committed to working with our partners to protect our community.”
A conviction for Intentional Defacement of Religious Real Property carries a maximum penalty of one year in prison, a $100,000 fine, or both.
The FBI’s Phoenix Division and the Phoenix Police Department are handling the investigation. Assistant U.S. Attorney Ben Goldberg and Special Assistant U.S. Attorney Clay Rehrig for the District of Arizona are handling the prosecution, in conjunction with the Department of Justice’s Civil Rights Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
CASE NUMBER: CR-26-00688-PHX-JJT
RELEASE NUMBER: 2026-107_Pyles# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Anchorage man guilty of attempted coercion and enticement of a minorRead the Press Release
ANCHORAGE, Alaska – A federal jury convicted an Anchorage man yesterday for attempting to meet with a child for sexual purposes.
According to court documents and evidence presented at trial, between Aug. 29 and 30, 2025, August Seabrease, 40, used his cell phone to access various social media and messaging applications to chat with what he believed to be a 13-year-old girl. Seabrease turned the conversations sexual, requesting the minor send explicit photos and discussing an in-person meeting for implied sexual purposes.
Throughout the conversation, Seabrease explicitly asked how old the minor was and she stated she was 13. In one message, he acknowledged that he was three times her age. Over the course of two days, Seabrease sent the person he believed to be a minor a photo of his genitalia and incessantly requested photos of the minor through messages. He specified “naughty pics,” “sexy pics,” “fresh pics,” “more pics,” and “right now.”
Seabrease arranged to meet with the minor the following night at a mall in Anchorage. On Aug. 30, 2025, law enforcement observed Seabrease leave his home and drive to the local mall. He circled the mall parking lot several times before parking. Law enforcement contacted him shortly after to arrest him and seized his cell phone.
On Sept. 2, 2025, Seabrease was formally charged by criminal complaint and a federal grand jury indicted him roughly two weeks later. The federal jury found Seabrease guilty of one count of attempted coercion and enticement of a minor following a two-day trial.
U.S. Attorney Michael J. Heyman for the District of Alaska, Special Agent in Charge Matthew Schlegel of the FBI Anchorage Field Office and Special Agent Timothy Weinhold, Air Force Office of Special Investigations Detachment 631 Commander made the announcement.
The FBI Anchorage Field Office and U.S. Department of the Air Force Office of Special Investigations investigated the case.
Assistant U.S. Attorneys Mac Caille Petursson and Michelle Delgado are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
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Alien Admits to Illegally Voting in Federal ElectionRead the Press Release
TRENTON, N.J. – An Ocean County man admitted to illegally voting in a federal election, U.S. Attorney Robert Frazer announced.
Eliezer Kadoch, a resident of Toms River, New Jersey, who is not a citizen of the United States, pleaded guilty yesterday to one count of voting by an alien in a federal election before U.S. Magistrate Judge J. Brendan Day in Trenton federal court.
According to documents filed in the case and statements made in court, Kadoch, 39, is a citizen of France and has never been a citizen of the United States. In November 2022, Kadoch voted in the midterm election that was held in part for the purpose of electing a Member of the United States House of Representatives.
The voting by an alien charge carries a maximum penalty of up to 6 months in prison and a $100,000 fine. Sentencing is scheduled before Judge Day on October 26, 2026.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy; Homeland Security Investigations, under the direction of Special Agent in Charge Michael McCarthy, and U.S. Citizenship and Immigration Services, with the investigation.
This case was brought under the United States Attorney’s Office’s Election Integrity Task Force, a coalition of federal law enforcement partners focused on preserving and protecting the integrity of elections conducted in the District of New Jersey.
The government is represented by Assistant U.S. Attorney Joseph McFarlane of the U.S. Attorney’s Office’s Special Prosecutions Division.
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Defense Counsel: Yosef Jacobovitch, Esq.
kadoch.information.pdf73-Year-Old Former Cub Scout Leader Sentenced to Six Years in Federal Prison for Trafficking Child PornographyRead the Press Release
ATLANTA – Ernest Vera, a former Cub Scout leader and baseball and football coach, was sentenced to six years in federal prison after pleading guilty to distributing child sex abuse videos on the Kik messaging application.
“No matter their age, child sex predators like Ernest Vera must be prosecuted and punished,” said U.S. Attorney Theodore S. Hertzberg. “Thanks to the collaborative efforts of our law enforcement partners, this sex offender should remain in federal prison until he is nearly 80 years old, helping to achieve justice for his victims, prevent him from exploiting others, and deter others from similar misconduct.”
“Every image of child sexual abuse material represents the exploitation and victimization of a real child,” said Marlo Graham, Special Agent in Charge of FBI Atlanta. “Vera actively sought out and traded these horrific images online, fueling the demand for child exploitation. The FBI remains committed to identifying those who prey on children and bringing them to justice, regardless of their age or where they operate.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: In September 2021, FBI agents searched Ernest Vera’s home after learning he used social media to send and receive depictions of child sex abuse. During an interview at his home, Vera admitted that he used the Kik messaging application to view and trade sexually explicit images of children as young as thirteen years old. Vera also told investigators that he used Kik to encourage users whom he believed to be female teenagers living in India, Thailand, and South Africa to send sexual images of themselves, which they did. The FBI later searched Vera’s digital devices and his cellphone, where they found approximately 90 images and a dozen videos of child sex abuse.
On June 22, 2026, Ernest Vera, 73, of Powder Springs, Georgia, was sentenced by U.S. District Judge Michael L. Brown to serve six years in prison without the possibility of parole. Vera was taken into custody immediately following the sentencing hearing. After he completes his prison sentence, Vera will be on supervised release for 10 years. Vera was convicted of distribution of child sexual abuse material after he pleaded guilty on January 7, 2026.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Eric Boylan prosecuted the case.
This case was brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Tuesday 23 June 2026
Western District of Oklahoma Cases Filed as Part of National Health Care Fraud TakedownRead the Press Release
OKLAHOMA CITY – Today, United States Attorney Robert J. Troester announced criminal charges against two defendants and the filing of a separate civil case, both in the Western District of Oklahoma, in connection with the Department of Justice’s 2026 National Health Care Fraud Takedown.
“Fraud against federal health care programs ultimately harms both taxpayers and the individuals these programs are designed to serve,” said U.S. Attorney Robert J. Troester. “Through this national initiative, the Department of Justice and its partners are committed to holding accountable those who allegedly undermine the integrity of our health care system.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting TRICARE, the U.S. Military’s healthcare program, from fraudulent schemes that harm its beneficiaries and waste critical taxpayer-provided resources,” said Special Agent in Charge Chad Gosch, Department of Defense Office of Inspector General, Defense Criminal Investigative Services Southwest Field Office. “These indictments are the result of a strong partnership with the U.S. Attorney’s Office for the Western District of Oklahoma to tirelessly pursue companies and individuals that seek to enrich themselves at the expense of our military members and U.S. taxpayers.”
National Initiative
The cases announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
Western District of Oklahoma Cases
The following cases were brought in the Western District of Oklahoma:
- United States vs Stewart Johnson and Stephen Johnson – Stewart Johnson, 72, and Stephen Johnson, 47, of Lawton, Oklahoma, were charged by Indictment on June 16, 2026, with conspiracy to commit wire fraud, wire fraud, and money laundering in connection with a scheme to defraud TRICARE of more than $27 million. As alleged in the Indictment, the Johnsons operated a durable medical equipment company named Combined Home Medical Equipment that offered Continuous Positive Airway Pressure (“CPAP”) machines. It is alleged that from January 2018 through December 2024, the Defendants submitted fraudulent claims to TRICARE for in-person CPAP-related services that the Defendants did not provide and were not qualified to provide. In total, the Defendants are alleged to have submitted claims for more than 650,000 separate in-person CPAP-related services and received more than $27 million in reimbursements. The case is being prosecuted by Assistant U.S. Attorney D.H. Dilbeck.
- United States & State of Oklahoma v. Judy Dennis – Judy Dennis of Oklahoma City was charged by civil complaint on June 22, 2026, with violating the False Claims Act, 31 U.S.C. §§ 3729-3733, the Oklahoma Medicaid False Claims Act, 63 Okla. Stat. § 5053.1 et seq., federal common law, and Oklahoma common law in connection with the submission of more than $2.5 million in false and fraudulent claims for speech-language pathology services. As alleged in the Complaint, Dennis, a licensed speech-language pathologist, knowingly presented, or caused to be presented, materially false and fraudulent claims for payment or approval to the United States and the State of Oklahoma, including claims for reimbursement submitted to Medicare, Oklahoma Medicaid, and TRICARE, for services that were not rendered, were not medically reasonable and necessary, and/or did not comply with program requirements. The case is being prosecuted by Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos of the U.S. Attorney’s Office for the Western District of Oklahoma and Assistant Attorneys General Jamie L. Bloyd and Annette Howlett of the Oklahoma Attorney General’s Office, Medicaid Fraud Control Unit.
The Western District of Oklahoma worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the Oklahoma Medicaid Fraud Unit, the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Services, and the U.S. Department of Health and Human Services, Office of Inspector General.
The cases across the nation are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virginia participated in the investigation of federal cases announced today.
For more information on today’s nationwide takedown, visit the Justice Department’s website here.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Warren County Physician and Nurse Practitioner Pay $500,000 to Resolve Unlawful Opioid Prescribing and Fraudulent Conveyance Actions; Barred from DEA Registration for 20 YearsRead the Press Release
ALBANY, NEW YORK – Dr. Douglas Cline and nurse practitioner Laurie McKenna have agreed to pay $500,000 to resolve civil actions brought by the United States involving unlawful opioid prescribing practices and a fraudulent conveyance action against Dr. Cline, announced First Assistant United States Attorney John A. Sarcone III. This settlement is part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
Dr. Cline formerly owned and operated Chronic Pain Management (CPM), a cash-pay medical practice in Queensbury, New York focused on prescribing controlled substances. Under the settlement, Dr. Cline and Ms. McKenna are barred for 20 years from applying for or holding a DEA controlled-substances registration.
As reflected in the settlement agreement, the defendants admitted and accepted responsibility for conduct involving a practice in which several patients received high-dose opioid medications, often in combination with other controlled substances. Access to prescriptions was tied to recurring payments, including in circumstances where patients were not regularly examined by a provider.
“Douglas Cline operated a high-volume, cash-pay medical practice in which hundreds of patients received high-dose opioid prescriptions, often in combination with other controlled substances. Access to those medications was tied to recurring payments, including in circumstances where patients were not seen by him or another provider,” said First Assistant United States Attorney John A. Sarcone III. “After federal scrutiny began, Dr. Cline transferred his lake house valued at over $1 million to his ex-wife to diminish assets that could pay an eventual judgment. This resolution holds him accountable for his prescribing conduct and his attempts to frustrate collection, and reinforces that such conduct will meet continued aggressive enforcement action.”
"While today’s settlement against Dr. Douglas Cline and Nurse Practitioner Laurie McKenna may resolve their scheme to unlawfully distribute controlled substance prescriptions for money, exploiting their patients to addiction and their harmful effects are not” stated DEA New York Enforcement Division Special Agent in Charge Farhana Islam. “Medical professionals are entrusted with protecting patients’ lives, not placing profits above their health and safety. I commend the work of our DEA Diversion SPEAR team for pursuing those who endanger public health and profit from the ongoing opioid crisis."
“The illegal prescribing practices detailed in this settlement were especially egregious in light of the ongoing opioid epidemic, and they were committed without regard for the proper care of Dr. Cline’s patients,” said Special Agent in Charge Naomi D. Gruchacz 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 ensure that health care providers who are involved in schemes that threaten patient safety are held accountable.”In March 2024, the United States filed a civil action against the defendants’ involving prescriptions issued to a combat wounded military veteran and his spouse, including escalating doses of fentanyl, oxycodone, and benzodiazepines despite warning signs of misuse and dependency. The complaint further described continued prescribing to these individuals over extended periods, including while they resided in the southeastern United States and were not regularly examined in person, while continuing to pay CPM appointment fees for continued access to prescriptions.
After learning of the government’s investigation and his potential liability, Dr. Cline transferred substantial assets, including a residence in Bolton Landing, New York, to his then-spouse. The United States later filed a separate civil action alleging that the transfer constituted a fraudulent conveyance intended to hinder federal recovery in the first action.
Dr. Cline surrendered his DEA Certificate of Registration on August 29, 2025. Ms. McKenna’s registration expired on January 31, 2026.
Under the settlement, both defendants are barred for 20 years from applying for, renewing, or reinstating DEA controlled-substances registration.
“Douglas Cline’s reckless prescribing practices caused needless harm to TRICARE beneficiaries and placed profit ahead of proper medical care,” said Christopher M. Silvestro, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office. “As the investigative arm of the Department of War’s Office of Inspector General, we are committed to protecting the health and well-being of our service members and their families.”
The case was investigated by the DEA Albany District Office SPEAR Group, the DCIS Syracuse Resident Agency, and the U.S. Department of Health and Human Services, Office of Inspector General, with assistance from the Defense Health Agency, the New York State Department of Health Bureau of Narcotic Enforcement, the New York State Police, and the Warren County Sheriff’s Office.
Assistant United States Attorneys Christopher R. Moran and Adam J. Katz represented the United States.