title: Co-Founder of Paycheck Protection Program Lender Service Provider Sentenced for $65M COVID-19 Relief Fraud Scheme

body_text: A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendant was also ordered to pay over $66 million in restitution. “This defendant orchestrated one of the nation’s largest schemes to defraud the Paycheck Protection Program during a global pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Stealing money from federal relief programs is stealing money contributed by taxpayers to help individuals and small businesses survive economic hardship. This sentence sends a clear message that people who exploit government programs to enrich themselves will be brought to justice.” “In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his own pockets via his massive fraud scheme,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “He and others who criminally exploit federal funding will be prosecuted to the fullest extent in our district.” “SBA was proud to support the Justice Department in their work to bring one of our nation’s largest pandemic fraudsters to justice," said Small Business Administration (SBA) Administrator Kelly Loeffler. "At the SBA, we are tirelessly working to hold criminal actors accountable and claw back the taxpayer dollars that were stolen from honest American families and small business owners.” “Abusing government programs and exploiting a national emergency will never be tolerated,” said Acting Assistant Director Rebecca Day of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s commitment to holding accountable those who defraud the government in an effort to benefit themselves.” “Nathan Reis orchestrated a massive fraud that siphoned tens of millions of dollars from a program meant to save small businesses during a national emergency,” said Acting Deputy Chief Justin Campbell of IRS Criminal Investigation. “Today’s sentence is a testament to the strength of federal partnership and coordinated investigative work. The women and men of IRS-CI remain committed to investigating complex financial crimes and ensuring that those who abuse government programs for personal profit will face justice.” “This sentencing underscores the SBA Office of Inspector General’s unwavering commitment to holding accountable those who exploit taxpayer funds for personal gain,” said Deputy Inspector General Sheldon Shoemaker. “At a time when these programs were designed to support small businesses and workers facing unprecedented hardship, fraud of this magnitude undermines public trust and diverts critical resources from those who truly needed them. We will continue to work closely with our law enforcement partners to investigate and pursue those who abuse SBA programs.” “This sentencing holds accountable and brings to justice a fraudster who stole millions of taxpayer dollars intended to help small business owners for their own personal gain,” said Acting Special Agent in Charge Don Daley of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Western Region. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to achieve this result.” According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications to receive loan funds for which they were not eligible. In April 2020, Reis co-founded Blueacorn, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrowers fees based on a percentage of the funds received. In total, Reis and his co-conspirators processed over 530 fraudulent loans causing over $65 million in losses. In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud. The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and SBA Office of Inspector General investigated the case. Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section; Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section; and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case. The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Federal grand jury indicts Buffalo man on multiple counts of production of child pornography

component: USAO - New York, Western

body_text: BUFFALO, N.Y.—U.S. Attorney Michael DiGiacomo announced today that a federal grand jury has returned an indictment charging Eddie Franceschini, 34, of Buffalo, NY, with eight counts of production of child pornography and three counts of possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison and a maximum of 30 years. Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that on eight separate occasions between December 1, 2023, and July 26, 2024, Franceschini coerced a minor victim to engage in sexually explicit behavior, and then produced a visual depiction of the conduct. In addition, between June 27 and July 27, 2025, Franceschini possessed images of child pornography on three different cellular telephones. Franceschini was arraigned before U.S. Magistrate Judge Michael J. Roemer and was detained. The indictment is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Alphonso Wright and Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan. 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. # # # #


title: Sioux City Man Who Illegally Possessed a Firearm Sentenced to 8 Years in Federal Prison

component: USAO - Iowa, Northern

body_text: Joshua Solis, age 37, from Sioux City, was sentenced December 17, 2025, to 8 years in federal prison after a September 9, 2025, guilty plea to possession of a firearm by a felon. Evidence in the case revealed on May 9, 2025, law enforcement responded to a report of a motor vehicle stopped in a turn lane, with a witness reporting the driver of the vehicle appeared to be slumped over the steering wheel. Solis was the driver and sole occupant of the vehicle. Law enforcement observed Solis displaying signs of drug impairment. Solis consented to a search, where law enforcement located a baggie containing methamphetamine, as well a loaded handgun, magazines, several other rounds of ammunition, and further drug paraphernalia. He was arrested on state charges for these crimes and later formally charged in state court with possession of a firearm as a felon and possession of a controlled substances. He paid a bond and was released on the state charges prior to trial. However, on June 3, 2025, Solis was observed walking in the middle of a roadway. Law enforcement contacted Solis and found him in possession of another handgun, more methamphetamine, a digital scale, and $750 in cash. He was then charged federally for his criminal conduct. Solis was sentenced in Sioux City by United States District Court Judge Leonard T. Strand to 96 months’ imprisonment to be served consecutively to any state sentence, if one is imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Solis is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was investigated by the Sioux City, Iowa Police Department and the United States Department of Justice’s Bureau of Alcohol Tobacco Firearms and Explosives (ATF). This case was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 25-4034. Follow us on X @USAO_NDIA.


title: Sioux City Man Pleads Guilty to Possession With Intent to Distribute Meth

body_text: Jarrami Berndt, 46, from Sioux City, Iowa, who, on two separate occasions, possessed with intent to distribute methamphetamine pled guilty December 16, 2025, in federal court in Sioux City. At the plea hearing, evidence showed that on August 10, 2024, Sioux City police stopped Berndt’s vehicle and observed Berndt throw something out of the window of the vehicle during the traffic stop. Officers found the thrown object, a black bag which contained a scale, marijuana and over 13 grams of pure methamphetamine. On May 1, 2025, Sioux City police conducted a traffic stop of a taxi occupied by Berndt. Berndt admitted ownership of a bag found in the back seat which contained over 16 grams of pure methamphetamine. Berndt admitted that on both occasions, he intended to distribute some or all the drugs to another person or persons. Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Berndt remains in custody of the United States Marshal pending sentencing. On October 4, 1999, Berndt was convicted of voluntary manslaughter, terrorism, going armed with intent, possession and use of an offense weapon (firearm) in the Iowa District Court for Woodbury County. These convictions constitute a serious violent felony conviction which subjects Berndt to a sentencing enhancement. Berndt faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,000,000 fine, and at least eight years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 25-4029. Follow us on X @USAO_NDIA.


title: Fort Dodge Man to Federal Prison for Distributing Methamphetamine

body_text: A man who distributed methamphetamine on two occasions while on state probation was sentenced yesterday to more than seven years in federal prison. Desmond Collins, age 34, from Fort Dodge, Iowa, received the prison term after an August 13, 2025, guilty plea to two counts of distribution of a controlled substance. At his plea and sentencing hearings, Collins admitted that in October 2024, he distributed a total of approximately three ounces of methamphetamine to a person cooperating with law enforcement in Fort Dodge, Iowa. At the time of the distribution, Collins was on state probation for three separate crimes: assault with a dangerous weapon and criminal mischief; driving while barred; and possession of marijuana. Collins has an extensive criminal history including multiple eluding convictions and four domestic assault convictions. Collins was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Collins was sentenced to 90 months’ imprisonment for each count, to be served concurrently. He must also serve a four-year term of supervised release after the prison term. There is no parole in the federal system. Collins is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Webster County Sheriff’s Office and the Iowa Division of Criminal Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 25-CR-03021. Follow us on X @USAO_NDIA.


title: Jamestown woman pleads guilty to drug conspiracy

body_text: BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Susan Walker, 31, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between 2020 and 2023, Walker conspired with others to sell narcotics for profit, utilizing social media to conduct her drug trafficking activities. Walker and co-defendant David Sekerak Ledesma also maintained two Lafayette Street residences in Jamestown for their drug trafficking activities. The investigation included a series of controlled purchases and the execution of two search warrants at Walker and Ledesma’s Lafayette Street residence, during which investigators seized cash, which represented drug proceeds, drug paraphernalia, and cellular phones. In July 2020, Ledesma sold drugs to an individual identified as A.R., who overdosed and suffered seriously bodily injury. He was previously convicted and is awaiting sentencing. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, III, New York Field Division, the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone. Sentencing is scheduled for June 10, 2026, before Judge Sinatra. # # # #


title: Domestic Abuser and Drug User Who Illegally Possessed a  Firearm Sentenced to Federal Prison

body_text: Brandon Mitchell, 29, from Mason City, Iowa, was sentenced December 18, 2025, in federal court in Sioux City, Iowa. Mitchell pled guilty April 30, 2025, to being a prohibited person in possession of a firearm. Mitchell was previously convicted twice for domestic abuse assault in the Iowa District Court for Cerro Gordo County. The convictions prevented Mitchell from legally possessing firearms. Evidence at the plea and sentencing hearings showed that Mitchell had two prior convictions for misdemeanor domestic violence and was an unlawful user of marijuana. Evidence further showed that on February 24, 2024, when Mitchell possessed the 9mm pistol, he was under state felony indictment for attempted murder, intimidation with a dangerous weapon, and possession of a firearm by a domestic abuser. Mitchell also admitted that during a search warrant at his residence he discarded the 9mm pistol out of a bedroom window in an attempt to avoid being found in possession of a firearm. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Sentencing was held before United States District Court Judge Leonard T. Strand. Mitchell was sentenced to 57 months’ imprisonment and must serve a 2-year term of supervised release following imprisonment. There is no parole in the federal system. Mitchell remains in custody of the United States Marshal until he can be transported to a federal prison. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Iowa Division of Narcotic Enforcement, and Mason City Police Department and was prosecuted by Assistant United States Attorney Kraig R. Hamit. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-3038. Follow us on X @USAO_NDIA.


title: Mexican Cartel Leader Sentenced to Over 11 Years in Prison for International Money Laundering

component: Criminal Division

body_text: A foreign national and a leader of the Cártel de Jalisco Nueva Generación (CJNG) was sentenced today to 140 months in prison and three years of supervised release for an international money laundering offense. “Cristian Fernando Gutierrez-Ochoa epitomizes the arrogance of the cartels – laundering millions in drug profits, stockpiling cash and ghost guns, kidnapping military officials, and believing he could live in luxury and anonymity on American soil,” said DEA Administrator Terrance Cole. “He was wrong. Today's sentencing sends a clear message: DEA is dismantling CJNG piece by piece – the financiers, the lieutenants, the safe houses, and the pipelines that sustain these narco-terrorists. We are targeting their money, their leadership, and their infrastructure, and we will not stop until these organizations are eliminated, and American lives are no longer threatened by their greed.” “Cristian Gutierrez-Ochoa laundered money for one of the most violent and prolific cartels in Mexico and funded his lavish lifestyle — including luxury homes, cars, watches and jewelry — with its drug trafficking proceeds,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Cartels like the CJNG traffic substantial quantities of illegal drugs into the United States, profiting from their distribution at the expense of people’s lives and the safety of our communities. Gutierrez-Ochoa’s sentence demonstrates the Criminal Division’s commitment to disrupting and dismantling dangerous drug trafficking organizations, including CJNG, and keeping our country safe.” According to court documents, Gutierrez-Ochoa, 28, of Michoacán, Mexico, worked with other CJNG operatives in Mexico and the United States to launder millions in U.S. currency of CJNG drug proceeds, including to purchase a luxurious residential property in Riverside, California. Gutierrez-Ochoa lived in that residence under a fictitious identity for at least a year with the daughter of the CJNG leader, Nemesio Oseguera Cervantes, also known as El Mencho. The residence was purchased under the name of a Mexican company owned and controlled by the CJNG. Gutierrez-Ochoa admitted to keeping over $2.2 million of drug proceeds in bulk cash at the residence and possessing two untraceable firearms in furtherance of the underlying money laundering offense. Gutierrez-Ochoa also used CJNG drug proceeds to purchase items of value, including jewelry, watches and vehicles. Gutierrez-Ochoa pleaded guilty to conspiracy to launder CJNG’s drug proceeds. As part of his plea agreement, Gutierrez-Ochoa agreed to forfeit the residence and the seized bulk cash, jewelry, watches, vehicles and other items of value. Gutierrez-Ochoa allegedly entered the United States illegally in part to avoid arrest in Mexico. Specifically, in late 2021, Gutierrez-Ochoa allegedly kidnapped two members of the Mexican Navy to force the Mexican authorities to release El Mencho’s wife from custody. The DEA’s Special Operations Division Bilateral Investigations Unit Los Angeles investigated the case. The Office of International Affairs provided valuable assistance. Trial Attorneys Kaitlin Sahni, Lernik Begian and Douglas Meisel of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) prosecuted the case. Trial Attorneys Stephanie Williamson and Chelsea Rooney of MNF assisted with the forfeiture proceedings. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Homeland Security Task Force and Project Safe Neighborhoods.


title: Fraudster Sentenced To 71 Months In Prison For Crypto Ponzi Scheme “IcomTech”

component: USAO - New York, Southern

body_text: United States Attorney for the Southern District of New York, Jay Clayton, announced that Magdaleno Mendoza was sentenced to 71 months in prison for his role in the large-scale cryptocurrency Ponzi scheme known as IcomTech and for reentering the United States illegally after having been deported. MENDOZA pled guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry before the Honorable Paul G. Gardephe, who imposed today’s sentence. A number of MENDOZA’s co-conspirators—David Carmona, IcomTech’s founder; Marco Ruiz Ochoa, IcomTech’s purported CEO; Gustavo Rodriguez, IcomTech’s web developer; and David Brend, Juan Arellano, and Moses Valdez, all senior IcomTech promoters—have been convicted and sentenced separately for their roles in the IcomTech Ponzi scheme. “As a senior promoter of IcomTech, Mendoza helped prey on Spanish-speaking victims who lacked investment experience, including our fellow New Yorkers,” said U.S. Attorney Jay Clayton. “By exploiting trust and the promise of ‘crypto,’ he and his co-conspirators stole millions from working-class people. Today’s sentence provides a measure of justice.” According to the Indictment, public filings, and public court proceedings: IcomTech, which launched in mid-2018, was a purported cryptocurrency mining and trading company that promised to earn its victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products. In reality, IcomTech was a multi-level marketing Ponzi scheme. By at least December 2018, MENDOZA, who previously promoted at least two other similar cryptocurrency Ponzi schemes, was promoting IcomTech and recruiting victim-investors. MENDOZA was one of the most senior promoters of IcomTech and was in regular contact with IcomTech’s founder, David Carmona. MENDOZA and the other promoters of IcomTech falsely promised their respective Victims, among other things, that profits from the company’s cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments. In reality, IcomTech did not engage in cryptocurrency trading or mining for its Investors, and MENDOZA and IcomTech’s other promoters used Victim funds to pay other Victims to further promote the scheme and enrich themselves. MENDOZA and other IcomTech promoters primarily targeted working-class, Spanish-speaking Victims who had little to no prior experience with cryptocurrency. IcomTech promoters, including MENDOZA, traveled throughout the U.S., where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York. During larger-scale events, IcomTech promoters presented on purported investment products and the compensation plan, encouraged Victims to invest as a means of achieving financial freedom, and boasted about the amount of money they were earning. IcomTech promoters often showed up in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech. MENDOZA personally hosted IcomTech promotional events at his restaurant in the greater Los Angeles area, where he collected thousands in cash from his Victims as purported IcomTech investments. Victims invested in IcomTech by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, a Victim would be provided with access to an online portal where the Victim could monitor the purported returns. While Victims saw “profits” accumulate on the online portal, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments. By contrast, IcomTech’s promoters, including MENDOZA, siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on IcomTech promotional expenses, and used for personal expenditures such as luxury goods and real estate. At least as early as August 2018, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all. Despite these complaints, IcomTech promoters, including MENDOZA, continued to promote IcomTech and accept Victims’ investments. As complaints mounted, IcomTech began offering a proprietary crypto-token for sale as a means of injecting liquidity into IcomTech. Promoters of the scheme claimed that these tokens, known as “Icoms,” would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services. This was false. In reality, “Icoms” were essentially worthless and resulted in further financial loss to Victims. By in or about the end of 2019, IcomTech stopped making payments to Victims and IcomTech collapsed. After IcomTech, MENDOZA moved on to promote at least three other cryptocurrency Ponzi schemes. MENDOZA was residing in the United States illegally when he promoted IcomTech and the other cryptocurrency Ponzi schemes. He had been residing in the United States illegally for decades, and had previously been deported or removed four times, including once using a false identity. * * * In addition to the prison sentence, MENDOZA, 56, a citizen of Mexico, was ordered to pay restitution to victims in the amount of $789,218.94 and forfeiture in the amount of $1,500,000. He was also ordered to forfeit his interest in his residence in Downey, CA, which was purchased using proceeds from the crime. Mr. Clayton praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Clayton also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance. The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Michael D. Maimin, T. Josiah Pertz, and Cecilia E. Vogel are in charge of the prosecution.


title: Austin Pain Management Doctor and Pain Medicine Practice to Pay $13,625,000 to Settle Civil False Claims Act Allegations

component: USAO - Texas, Western

body_text: AUSTIN, Texas – Dr. Mark Malone, Advanced Pain Care, and related entities have agreed to pay the United States and the State of Texas $13,625,000 to resolve allegations they submitted false claims for urine drug testing to federal and state healthcare programs. The United States will receive $13,590,544.88 and Texas will receive $34,455.12. Advanced Pain Care is an interventional pain medicine practice with locations in and around Austin, Amarillo, Waco, and Houston. Dr. Malone is a pain management doctor and the founder of Advanced Pain Care. The Advanced Pain Care entities that are parties to the settlement include Mark Malone M.D., P.A., Round Rock Surgery Center, LLC, APC-Amarillo Surgical Operating Company, LLC, Killeen Surgical Operating Company, LLC, Waco Surgical Operating Company, LLC, Southwest Surgical Operating Company, LLC, Shoal Creek Pharmacy Operations, LLC, Palo Duro Pharmacy Operations, LLC, APC Pharmacy, LLC, Advanced Anesthesiology, Advanced Health Holdings, LLC, Advanced RX Pharmacy, APC Investments LLC, APC360 LLC, 6000 South Mopac APC LLC, MMJ Partners, LP, and MMC Holdco, LLC. The United States alleged that Dr. Malone and Advanced Pain Care knowingly submitted false claims to Medicare, Medicaid, TRICARE, and the Federal Employees Health Benefits Program for concurrent presumptive and definitive urine drug testing for the same patient on the same date of service, without reviewing the results of the presumptive test to determine whether a definitive test was medically necessary. The United States also alleged that Dr. Malone and Advanced Pain Care knowingly submitted false claims to the Department of Veterans Affairs for definitive drug testing using separate Current Procedural Terminology (CPT) codes for individual analytes (i.e., CPT series 803XX) for dates of service between January 3, 2017, and December 31, 2021. “‘First, do no harm,’ it’s one of the main charges in the oath traditionally taken by those blessed with the responsibility of providing medical care to their neighbors,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “Some, like Dr. Malone, instead cause harm by submitting false claims for procedures, thereby enriching themselves to the detriment of the American taxpayer. These settlements demonstrate my office’s commitment to protect the healthcare programs on which the American people have come to rely. We will continue to work with our law enforcement partners to ensure that providers are held accountable for false claims violations and the public fisc is protected.” Contemporaneous with the civil settlement, Advanced Pain Care entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Under the CIA, Advanced Pain Care must maintain a compliance program, implement a risk assessment process, and hire an Independent Review Organization (IRO) to review its claims. “When health care professionals submit false claims to federal programs, they erode public trust and divert taxpayer-funded resources away from individuals who truly need care,” said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement underscores our steadfast commitment to safeguarding taxpayer dollars and collaborating with our law enforcement partners to hold accountable those who defraud the American people.” “The Defense Criminal Investigative Service (DCIS) will tirelessly pursue allegations of fraud and corruption, bringing to justice those who seek to enrich themselves through exploitation of TRICARE, the U.S. Military’s health benefit program,” said Chad Gosch, Special Agent in Charge of the Department of Defense Office of Inspector General, DCIS Southwest Field Office. “This outcome is a testament to the commitment of DCIS and our law enforcement partners in safeguarding the integrity of this nation’s healthcare system.” “Health care providers and practices who knowingly submit false claims must be held accountable,” said Special Agent in Charge Derek M. Holt of the U.S. Office of Personnel Management Office of the Inspector General. “We are grateful to our law enforcement partners for their work to protect the integrity of federal healthcare programs, including the Federal Employees Health Benefits Program.” “This civil settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South-Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.” The settlement resolves claims brought against Dr. Malone and Advanced Pain Care in five separate lawsuits filed under the qui tam provisions of the federal False Claims Act and the Texas Health Care Program Fraud Prevention Act: United States ex rel. Lawlor v. Dr. Mark Malone et al. , Civil Action No. 5:15-CV-60; United States and Texas ex rel. Mack v. Mark Malone, M.D., P.A., d/b/a Advanced Pain Care, et al. , Civil Action No. 1:20-CV-215; United States and Texas ex rel. Nuessner et al. v. Mark Malone M.D., P.A. d/b/a Advanced Pain Care, et al. , Civil Action No. 1:21-CV-257; and United States and Texas ex rel. APC, LLP v. Advanced Pain Care, Inc., et al. , Civil Action No. 5:23-CV-1106; and United States and Texas ex rel. [Redacted] v. [Redacted] , Civil Action No. 1:23-CV-1410 (Under Seal). The Department of Health and Human Services Office of Inspector General, DoD Office of Inspector General Defense Criminal Investigative Service, Office of Personnel Management Office of Inspector General, and Department of Veterans Affairs Office of Inspector General participated in the investigation of this matter. Assistant U.S. Attorney Thomas Parnham negotiated the settlement on behalf of the government. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Civil Rights Division Obtains Settlement with a Michigan IT Company for Discriminating Against U.S. Workers

component: Civil Rights Division

body_text: The United States Department of Justice’s Civil Rights Division announced that it has secured a settlement agreement with Tekshapers Inc., (Tekshapers), a Michigan company that provides IT recruitment and staffing services, to address allegations that the company violated the Immigration and Nationality Act (INA) when it advertised employment opportunities favoring temporary employment-based visa holders over U.S. workers. “Recruitment companies cannot place unlawful restrictions based on citizenship status,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “U.S. workers are highly skilled and deserve equal access to all jobs.” This settlement is the fourth since the Department re-launched its Protecting U.S. Workers Initiative to enforce the law against companies that illegally discriminate against U.S. workers in favor of those with employment visas. Under the settlement, Tekshapers will pay civil penalties to the United States and financially compensate a U.S. citizen applicant who was not given fair consideration for employment. Tekshapers also has agreed to undergo training, revise its employment policies, and agreed not to limit positions based on citizenship status without a lawful reason. The public can call IER’s free hotline at 1-800-255-7688 for workers or at 1-800-255-8155 for employers (1-800-237-2515, TTY for hearing impaired) for informal assistance between 9am and 5pm Eastern Time, Monday - Friday; sign up for a live webinar or watch an on-demand presentation ; email IER@usdoj.gov ; or visit www.justice.gov/ier .


title: Federal Inmate to Serve 11 Additional Years in Federal Prison for Possession of and Assault With a "Shank"

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – BRYAN JOSHUA TEWANEMA , 32, of Arizona, has been sentenced to serve 132 months in federal prison for possessing a prohibited object at the Federal Transfer Center (FTC) in Oklahoma City and for assault with a dangerous weapon and possessing a prohibited object at the Grady County Jail, announced U.S. Attorney Robert J. Troester. “This case demonstrates that the danger posed to corrections staff and inmates does not evaporate simply because they are behind bars,” said U.S. Attorney Robert J. Troester. “We appreciate the important work performed by corrections officers every day, and our office will continue to hold inmates accountable if they assault or present a danger to corrections staff or other inmates.” According to public record, on May 29, 2024, corrections officers with the FTC discovered a sharpened piece of plexiglass, a “shank,” hidden in Tewanema’s pant leg. Evidence at trial indicated that this incident was the fourth time a “shank” had been located either on Tewanema’s person or in a cell assigned to him. At the time, Tewanema was in federal custody as part of a 355-month prison sentence for second-degree murder and use of a firearm during a crime of violence in Indian Country following his conviction in the District of Arizona in case number CR-17-08223. On July 17, 2024, a federal grand jury charged Tewanema with possession of a prohibited object. On December 4, 2024, after a two-day trial, a federal jury found Tewanema guilty of the charge. While awaiting sentencing in the case described above, and while temporarily being housed at the Grady County Jail while in United States Marshals custody, court records show that on March 31, 2025, Tewanema stabbed a fellow inmate with another “shank.” On April 16, 2025, a federal grand jury charged Tewanema with assault with a dangerous weapon and possession of a prohibited object. On July 9, 2025, following another two-day trial, a federal jury found Tewanema guilty of both charges. The assault charge is in federal court because Tewanema is a member of the Navajo Nation and the crime occurred within the boundaries of the Chickasaw Nation. At a sentencing hearing on December 18, 2025, Chief U.S. District Judge Timothy D. DeGiusti sentenced Tewanema to serve 132 months in federal prison, to run consecutive to his ongoing federal sentence. This case is the result of an investigation by the Federal Bureau of Prisons’ Special Investigative Services and the Grady County Criminal Justice Authority. Assistant U.S. Attorneys Tiffany Edgmon and Jordan Ganz prosecuted both cases. Reference is made to public filings for additional information.


title: Pair Sentenced in Overdose Death of Northern Virginia Teen

component: USAO - Virginia, Western

body_text: HARRISONBURG, Va. – A pair of individuals responsible for distributing the fatal dose of fentanyl that killed an 18-year-old high school student in 2023 were sentenced today in federal court. Bessy Jimenez Mejia, 27, of Harrisonburg, Virginia, was sentenced today to 180 months in federal prison. Jimenez Mejia previously admitted to being the source of supply for the fentanyl that ultimately killed Cayden Foster in 2023. Liam Conaway, 24, also of Harrisonburg, was sentenced today to 240 months in federal prison. Conaway previously admitted to obtaining the deadly fentanyl from Jimenez Mejia and providing it to Foster. “Fentanyl is a clear and present danger to our communities. One pill can kill,” Acting United States Attorney Robert N. Tracci said today. “In this case, half a fentanyl-laced pill cost a uniquely precious and extraordinary young man his life. This office will seek clear accountability against those who profit from trafficking this poison in the Western District of Virginia.” “We need a Fentanyl-Free America,” stated Christopher Goumenis, Special Agent in Charge of the DEA Washington Division. “Our families are enduring the tragedy of losing loved ones, all due to greedy criminals like Jimenez Mejia and Conaway. For them, Fentanyl is merely a business; they lack concern for human lives and the well-being of our children. To the Foster family, we want you to know that we stand by your side in the fight against this crisis, committed to making a safer future for all. Your strength and resilience inspire us every day.” According to court documents, in January 2023, Foster – who was at the time a high school student in Centreville, Virginia – reached out to Conaway, who was a student at James Madison University (JMU) to purchase pills. Conaway and Foster had previously consumed pills together during Conaway’s academic break from JMU. On January 27, 2023, Foster sent Conaway $105 through Venmo to pay for the drugs. Conaway purchased approximately ten pills from his supplier, Jimenez Mejia, in Harrisonburg. The pills Conaway purchased from Jimenez Mejia were designed to appear as though they were 30 mg Percocet pills but were in fact counterfeit and contained fentanyl. Two days later, a friend of Foster’s delivered three pills, sourced from Jimenez Mejia through Conaway in Harrisonburg to Foster in Northern Virginia. On January 30, 2023, Foster consumed a portion of one of the pills purchased from Conaway. That night, Foster died from fentanyl poisoning. First responders arrived at Foster’s home the next morning and pronounced Foster deceased. The Drug Enforcement Administration (DEA) and the Fairfax County Police Department investigated the case. Assistant United States Attorneys Sally J. Sullivan and Jason Scheff are prosecuting the case for the United States.


title: Antiques and Art Dealer Charged with Money Laundering and Theft Offenses

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, and Thomas Demeo, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that DAVID L. JOHNSON, 66, of Greenwich, has been charged in a five-count indictment with offenses stemming from his embezzlement from a deceased individual’s estate. As alleged in the indictment, Johnson operated an antiques business, Antique Treasures LLC, and an auction business, Greenwich Auction, both based in Stamford. In approximately October 2018, an individual (“the victim”) executed a power of attorney, will, and trust naming Johnson as the victim’s agent, executor, and successor trustee, respectively. Johnson was not a beneficiary of the victim’s estate or trust. The victim died at the age of 87 in August 2020. After the victim’s death, Johnson stole more than $436,000 from one of the victim’s federal tax refund checks, more than $217,000 from an investment account, and more than $308,000 from the proceeds of the sale of artworks, all of which belonged to the victim’s estate. On December 17, 2025, a federal grand jury in Bridgeport returned an indictment charging Johnson with one count of money laundering, which carries a maximum term of imprisonment of 20 years; one count of interstate transport of stolen property, which carries a maximum term of imprisonment of 10 years; and three counts of engaging in monetary transactions derived from specific unlawful activity, which carries a maximum term of imprisonment of 10 years on each count. Johnson appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport, pleaded not guilty to the charges in the indictment, and was released on a $250,000 bond. U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.


title: Tech Company Executive Sentenced To Prison For Multimillion-Dollar Embezzlement Scheme And Tax Evasion

body_text: United States Attorney for the Southern District of New York, Jay Clayton, announced today that MARK ANGAROLA was sentenced to 38 months in prison for committing two extensive fraud crimes—an $8.3 million embezzlement scheme and a $668,000 tax evasion scheme. In the embezzlement scheme, ANGAROLA exploited his management position at a tech company to fraudulently enrich himself, his family, and his friends. Over the course of approximately nine years, ANGAROLA fraudulently billed personal expenses and hired his family and friends to no-show jobs. In the tax evasion scheme, ANGAROLA did not declare income received from the embezzlement scheme and, for two years, filed no taxes at all. ANGAROLA previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today’s sentence. Four other members of the embezzlement conspiracy have also pled guilty to date. “Mark Angarola was the ringleader of a long-running fraud scheme that betrayed the trust of his employer, treated its client like a personal slush fund, and caused millions of dollars in losses to his victims,” said U.S. Attorney Jay Clayton. “He further harmed the broader community by brazenly evading taxes for years. Angarola used his position to rip off his employers, clients, and hard-working, tax-paying Americans, and now he’s going to federal prison.” According to the allegations contained in the Indictment, the Superseding Information to which ANGAROLA pled guilty, and statements made in public filings and in public court proceedings: The Embezzlement Scheme From approximately May 2010 through February 2019, ANGAROLA spearheaded a large fraud scheme to unlawfully enrich himself and his co-conspirators (the “Conspirators”) by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which he was employed in a senior position. In total, the embezzlement scheme caused a loss of more than $8 million. ANGAROLA was a New York-based Global Account General Manager at the Contractor. He was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”). The Contractor had a service contract with the Client, pursuant to which the Contractor provided IT support services to the Client at locations across the U.S. The Contractor subcontracted certain of this work to a technology solutions company (the “Subcontractor”). Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor. Angarola was responsible for oversight of the Subcontractor’s performance on the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract. ANGAROLA abused his position to fraudulently enrich himself, his family, and his friends. For instance, he arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals lacked apparent qualifications to perform deskside IT work. He arranged for the Subcontractor to hire, among others, his wife (a homemaker); his former college roommate (a police sergeant); and his close friends, including a construction manager and the construction manager’s wife, a schoolteacher. Thereafter, various Conspirators falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses. ANGAROLA himself personally benefitted from the scheme by circumventing the Contractor’s expense policies by disguising his personal expenses as purported business expenses under the Subcontract. The Subcontractor submitted invoices to the Contractor for the hours purportedly worked and business expenses purportedly incurred by several of the Conspirators, and ANGAROLA, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices. The purported business expenses incurred by several Conspirators, and ultimately paid for by the Contractor at the direction of ANGAROLA, included restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs. Tax Evasion ANGAROLA also furthered his lavish lifestyle, including his near-daily use of a limousine service, through tax evasion, resulting in a tax loss to the Internal Revenue Service (“IRS”) of approximately $668,000. For four years, ANGAROLA failed to declare to the IRS the income he derived from his embezzlement scheme. In two of those years, he did not even file any tax returns. * * * In addition to his prison term, ANGAROLA, 52, of Point Lookout, New York, was sentenced to three years of supervised release. ANGAROLA was also ordered to forfeit $2,679,445.26 and pay restitution in the amount of $9,023,444.96. Mr. Clayton praised the outstanding investigative efforts of the Federal Bureau of Investigation, New York Field Office; the IRS-Criminal Investigation, New York Field Office; and the U.S. Department of Labor – Office of Inspector General, Northeast Regional Office. This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi and Special Assistant U.S. Attorney Jorge Almonte are in charge of the prosecution.


component: USAO - Texas, Northern

body_text: A co-founder of a lender service provider was sentenced to 10 years in prison for participating in a scheme to fraudulently obtain over $65 million in Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The defendant was also ordered to pay over $66 million in restitution. “This defendant orchestrated one of the nation’s largest schemes to defraud the Paycheck Protection Program during a global pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Stealing money from federal relief programs is stealing money contributed by taxpayers to help individuals and small businesses survive economic hardship. This sentence sends a clear message that people who exploit government programs to enrich themselves will be brought to justice.” “In a critical time for our nation, when businesses were trying to survive a worldwide pandemic, this defendant egregiously lined his own pockets via his massive fraud scheme,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “He and others who criminally exploit federal funding will be prosecuted to the fullest extent in our district.” “Abusing government programs and exploiting a national emergency will never be tolerated,” said Acting Assistant Director Rebecca Day of the FBI’s Criminal Investigative Division. “Today’s sentencing demonstrates the FBI’s commitment to holding accountable those who defraud the government in an effort to benefit themselves.” “Nathan Reis orchestrated a massive fraud that siphoned tens of millions of dollars from a program meant to save small businesses during a national emergency,” said Acting Deputy Chief Justin Campbell of IRS Criminal Investigation. “Today’s sentence is a testament to the strength of federal partnership and coordinated investigative work. The women and men of IRS-CI remain committed to investigating complex financial crimes and ensuring that those who abuse government programs for personal profit will face justice.” “This sentencing underscores the SBA Office of Inspector General’s unwavering commitment to holding accountable those who exploit taxpayer funds for personal gain,” said Deputy Inspector General Sheldon Shoemaker. “At a time when these programs were designed to support small businesses and workers facing unprecedented hardship, fraud of this magnitude undermines public trust and diverts critical resources from those who truly needed them. We will continue to work closely with our law enforcement partners to investigate and pursue those who abuse SBA programs.” “This sentencing holds accountable and brings to justice a fraudster who stole millions of taxpayer dollars intended to help small business owners for their own personal gain,” said Acting Special Agent in Charge Don Daley of the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Western Region. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to achieve this result.” According to court documents, Nathan Reis, 47, of Rio Grande, Puerto Rico, and previously of Arizona, conspired with others to submit false and fraudulent PPP loan applications to receive loan funds for which they were not eligible. In April 2020, Reis co-founded Blueacorn, purportedly to help small businesses and individuals obtain PPP loans. Through Blueacorn, Reis and his co-conspirators submitted fraudulent PPP loan applications they knew contained materially false information to make more money. Reis and others fabricated documents, including tax documents and bank statements. As part of the conspiracy, Reis and his co-conspirators charged borrowers fees based on a percentage of the funds received. In total, Reis and his co-conspirators processed over 530 fraudulent loans causing over $65 million in losses. In August 2025, Reis pleaded guilty to conspiracy to commit wire fraud. The FBI, IRS-CI, the Special Inspector General for Pandemic Recovery, Federal Reserve Board-Consumer Financial Protection Bureau Office of Inspector General, and SBA Office of Inspector General investigated the case. Acting Assistant Chief Philip Trout of the Criminal Division’s Fraud Section; Trial Attorneys Elizabeth Carr and Ryan McLaren of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section; and Assistant U.S. Attorney Matthew Weybrecht for the Northern District of Texas are prosecuting the case. The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.


title: Federal Grand Jury Indicts Man on Terrorism and Arson Charges for Lighting Train Passenger on Fire and Setting Chicago City Hall Ablaze Days Earlier

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: CHICAGO — A federal grand jury in Chicago has indicted a man on terrorism and arson charges for allegedly lighting a passenger on fire on a Chicago Transit Authority train and setting fire to Chicago City Hall three days earlier. The indictment against LAWRENCE REED, 50, of Chicago, was returned on Wednesday in U.S. District Court for the Northern District of Illinois. The charges in the indictment are punishable by a maximum sentence of life in federal prison. The indictment renews the terrorism offense for which Reed was initially charged last month. Reed allegedly approached a woman aboard a Chicago Transit Authority train on Nov. 17, 2025, ignited a bottle containing a liquid substance, and used it to light the victim on fire. The victim was engulfed in flames but was able to depart the train. She remains hospitalized with critical injuries. The indictment for the first time charges Reed with arson for allegedly setting a fire to Chicago City Hall on Nov. 14, 2025. The indictment accuses Reed of maliciously damaging and attempting to destroy the building, which is located at 121 N. LaSalle St. in downtown Chicago. Reed was arrested by Chicago Police officers on Nov. 18, 2025, and he remains detained in federal custody without bond. Arraignment for the charges in the indictment is scheduled for Dec. 19, 2025, at 12:00 p.m. before U.S. Magistrate Judge Laura K. McNally. The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Chicago Transit Authority. The government is represented by Assistant U.S. Attorneys Aaron R. Bond and Ronald L. DeWald. The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. reed_indictment.pdf


title: Mexican National Sentenced for Illegally Reentering the United States and Felon in Possession of a Firearm

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Mexican National illegally residing in Kansas City, Mo., was sentenced in federal court today for Illegal Re-entry by an Alien Previously Removed and Felon in Possession of Firearm. Tomas Alejandro Yanez-Fraide, 23, was sentenced by Chief U.S. District Judge Beth Phillips to four years federal prison followed by three years of supervised release. On August 21, 2025, Yanez-Fraide pleaded guilty to illegally re-entering the United States after previously being removed following a conviction for an aggravated felony and felon in possession of a firearm. Yanez-Fraide admitted he knew he did not have permission to enter the United States lawfully and that, as a felon, he knew he was prohibited from possessing a firearm. Under federal law it is illegal for an alien to knowingly re-enter the United States without permission after being removed. Yanez-Fraide had previously been removed from the country in 2022 after he was convicted in Jackson County, Missouri of robbery in the second degree. He unlawfully returned sometime after his 2022 removal and was found in the Western District of Missouri when he was arrested in February of 2025 by the Kansas City, Missouri Police Department. At the time of his arrest, Yanez-Fraide was in possession of Glock 9 mm firearm, an extended magazine and live ammunition. Under federal law it is illegal for a person convicted of a felony to possess a firearm or ammunition. This case was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Kansas City, Missouri Police Department and Immigration and Customs Enforcement. Operation Take Back America 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.


title: Registered Sex Offender Sentenced to More Than 22 Years in Federal Prison for Sexual Exploitation of a Child in Maryland

body_text: Baltimore, Maryland – U.S. District Court Judge Stephanie A. Gallagher sentenced registered sex offender Scott Lee Dye, 46, of North East, Maryland, today, to 22 1/2 years in federal prison, followed by a lifetime of supervised release, for coercion and enticement of a minor. Dye must also continue to register as a sex offender for life and was also ordered to pay $4,500 in restitution to his victims. He pled guilty to the charge on June 16, 2025, in the U.S. District Court for the District of Maryland. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Evan Campanella, Homeland Security Investigations (HSI) – Maryland, and Colonel Michael A. Jackson, Acting Superintendent, Maryland State Police (MSP). As Dye admitted pursuant to his plea agreement, he used the WhatsApp and Kik applications to attempt to meet and have sexual intercourse with individuals he believed were various minors. According to court documents, in October 2022, law enforcement learned that Dye was engaging in sexual communications via WhatsApp with a minor after the parents reported the communications to the school, who in turn notified the police. Around the same time, New Jersey law enforcement notified Maryland law enforcement that Dye was communicating on the Kik application with an individual he believed was a 13-year-old girl, but was actually law enforcement. Dye’s communications with the purported minor included graphic descriptions of the sexual acts he wanted to perform on the minor. His accounts and devices contained various videos and images of child sexual abuse material. After his release from federal prison, Dye is required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act. This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc . For more information about Internet safety education, please visit justice.gov/psc and click on the “Resources” tab on the left of the page. Know2Protect is a Department of Homeland Security national public awareness campaign to educate and empower children, teens, parents, trusted adults and policymakers to prevent and combat online child sexual exploitation and abuse ; explain how to report online enticement and victimization; and offer resources for victims and survivors and their supporters. Learn more about Know2Protect at dhs.gov/know2protect . U.S. Attorney Hayes commended HSI and MSP for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Michael Aubin who is prosecuting the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Utah Man Indicted after Fraudulently Obtaining Over $1M in Social Security Benefits and Private Insurance Policy Benefits

component: USAO - Utah

body_text: SALT LAKE CITY, Utah –A Salt Lake County man was indicted by a federal grand jury for wire fraud and mail fraud, among other federal crimes, after he allegedly assumed a different person’s identity to fraudulently obtain the person’s Social Security benefits and private insurance policy benefits for approximately 20 years. Terry Lynn Reynolds, 69, of West Jordan, Utah, allegedly obtained of over $1 million in Social Security and private insurance benefits. According to court documents, beginning on or about November 8, 2004, and continuing to about June 13, 2025, Reynolds allegedly executed a scheme to assume the identity of Person 1, who received disability income from a private insurance policy (Company 1) and Social Security benefits from the United States Social Security Administration (SSA) to obtain that money for himself. Reynolds had access to Person 1’s name, Social Security Number, and alleged signature. Under Person 1’s stolen identity, Reynolds obtained over $1 million from the SSA and Company 1. Court documents allege that as part of the scheme, Reynolds corresponded on multiple occasions with the SSA and Company 1. Until about March 2025, Reynolds continued to operate under Person 1’s identity to fraudulently obtain Person 1’s benefits. Reynolds is charged with wire fraud, mail fraud, theft of government property, and aggravated identity theft. His initial appearance on the indictment is January 13, 2026, at 1:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. United States Attorney Melissa Holyoak for the District of Utah made the announcement. The case is being investigated jointly by the Social Security Administration Office of the Inspector General (SSA OIG), United States Postal Inspection Service (USPIS), Utah Department of Public Safety (DPS) and the West Jordan Police Department. Special Assistant United States Attorney Sachiko J. Jepson of the United States Attorney’s Office for the District of Utah is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Armed Career Criminal Indicted for Unlawful Possession of Firearm

component: USAO - California, Eastern

body_text: FRESNO , Calif. — A federal grand jury returned an indictment today against Shyheim Jetton, 31, of Fresno, charging him with being an armed career criminal in possession of a firearm, U.S. Attorney Eric Grant announced. According to court documents, Jetton unlawfully possessed a firearm in that he is prohibited from possessing firearms due to prior felony convictions. Undercover Fresno Police Department officers located Jetton, who had ducked inside a convenience store when uniformed officers came to arrest him. Inside the store, Jetton had hidden a backpack behind a freezer; the backpack contained a 9mm Taurus handgun and 23 rounds of 9mm ammunition. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fresno Police Department. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case. If convicted, Jetton a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 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. This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Man Charged with Operating Online Marketplaces Selling Fraudulent Montana Driver’s Licenses and Other Identity Documents Used by Cybercriminals

component: Federal Bureau of Investigation (FBI)

body_text: BOZEMAN – The operator of illegal online marketplaces that sold digital templates of false identity documents, such as passports, social security cards, and driver’s licenses, was charged in a nine-count federal indictment unsealed in the District of Montana today, U.S. Attorney Kurt Alme said. The United States also announced that it seized three of the marketplace domains used for selling fraudulent identity documents around the world. Zahid Hasan, 29, of Dhaka, Bangladesh, is charged with six counts of transfer of false identification documents, two counts of false use of a passport, and one count of social security fraud. If convicted of transferring false identification documents or false use of a passport, as charged in counts 1 through 8, Hasan faces up to 15 years of imprisonment on each count. Social security fraud, as charged in count 9, carries a maximum sentence of 5 years. Each count also carries a maximum fine of $250,000 and three years of supervised release. The indictment alleges that from at least 2021 through 2025, Hasan operated multiple online businesses based out of Bangladesh, named “TechTreek” and “EGiftCardStoreBD.” These websites electronically sold and transferred digital versions of false government-issued identity and other documents, including U.S. passports, U.S. social security cards, and Montana driver’s licenses. The false identity documents were the types commonly used to create fraudulent online accounts at banks, online processors, social media sites, and digital currency platforms. Customers to these marketplaces could use virtual currencies, such as Bitcoin, to purchase a U.S. passport template for the equivalent of $12, a U.S. social security card for $9.37, and a Montana driver’s license for $14.05. Over a four-year period of operation, Hasan is alleged to have received more than $2.9 million through sales on TechTreek from more than 1,400 customers located around the world. On May 13, 2025, Hasan accepted Bitcoin payments through TechTreek and EGiftCardStoreBD from an individual in Bozeman, Montana and then transferred or attempted to transfer fraudulent templates of U.S. passports, U.S. social security cards, and Montana driver’s licenses to that individual. As part of its investigation, the United States seized three domains operated by Hasan to further his fraudulent documents businesses: www.techtreek.com; www.egiftcardstorebd.com; and www.idtempl.com. Visitors to these sites now receive the following message: Assistant U.S. Attorney Benjamin Hargrove is prosecuting the case. The FBI’s Billings Division and Salt Lake City Cyber Task Force conducted the investigation in coordination with FBI’s International Operations Division and the Dhaka Metropolitan Police Department’s Counterterrorism and Transnational Crime Unit. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt. PACER case reference. 25-44. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Two Lacey, Washington, men now indicted for two-year scheme to steal and sell military gear from JBLM

component: USAO - Washington, Western

body_text: Tacoma – Two Lacey, Washington, men – both former members of the military – were indicted by the grand jury this week for conspiracy, four counts of theft of government property, assault, robbery, and attempted theft of government property, announced U.S. Attorney Charles Neil Floyd. Charles Ethan Fields, 27, and Levi Austin Frakes, 27, have been in custody since their arrest on June 2, 2025. The men will be arraigned on the charges on December 22, 2025. According to the indictment, by at least early 2023, the men conspired to steal military equipment from Joint Base Lewis McChord (JBLM). The men took the equipment from JBLM – including helmets, clothing, communications equipment, and ballistic vests –to the home they shared in Lacey. They photographed the items and offered them for sale on online marketplaces in accounts under false names. The indictment alleges seven different time periods when Fields and Frakes entered JBLM and stole items from the Ranger compound. In January 2023 they stole from lockers in the Alpha Company Operations Facility. In February 2023, they stole from lockers of the Charlie Company Operations Facility. In May 2023, they stole from the Delta Company Operations Facility. In January 2024, they again stole from the Charlie Company Operation Facility lockers. In June 2024, they stole from the Alpha Company a second time, and in January 2025 they raided the Alpha Company lockers a third time. On June 1, 2025, the men were attempting to steal from the Charlie Company Operations Facility in the Ranger compound when a member of the Army discovered them. Fields and Frakes were masked and when questioned, the men started fighting with the Army member and beat him on the head and torso with a hammer. The victim was able to gain control of the hammer, only to have one of the men pull a knife and brandish it at him. The men – later identified as Fields and Frakes – ran from the Ranger compound and dropped the items they were trying to steal. Investigators collected evidence at the scene of the attempted theft and assault and determined the men were trying to steal about $14,000 in government property on that occasion. The men were traced to an address in Lacey and law enforcement obtained a warrant to search the residence the next day. Inside they found weapons and military property, including night vision devices, ballistic plates and plate carriers, and helmets; military munitions; and military explosives such as blasting caps, flashbangs, and smoke grenades. Some of the items are restricted and not allowed to be owned or stored in a private residence. Officers also recovered $24,000 in cash. Assault and theft of government property are each punishable by up to 10 years in prison. Robbery is punishable by up to 15 years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the Department of the Army Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Marci L. Ellsworth. frakes_and_field_indictment.pdf


title: Teen Hitmen for Sinaloa Cartel Plead Guilty to Murder, Attempted Murder in Plot to Kill Cartel’s Target

component: USAO - California, Southern

body_text: SAN DIEGO – Two teenage gang members pleaded guilty in federal court today to murder and attempted murder charges, admitting they were acting as hired hitmen for the Sinaloa Cartel when they made two attempts in five hours to kill the cartel’s target. Two people were wounded and one was fatally shot during the incidents, first at a Chula Vista restaurant and then at the target’s nearby luxury apartment. According to their plea agreements, on March 26, 2024, 15-year-olds Andrew Nunez and Johncarlo Quintero—members of the Mexican Mafia-affiliated Westside Wilmas gang from the greater Los Angeles area—drove from Wilmington, California to a Chili’s restaurant in Chula Vista, where their target was dining with his family. When the target, identified in court records as Victim 1, and his family were leaving the Chili’s restaurant, Quintero and Nunez pulled up behind them in the parking lot. Quintero got out of the car and fired a single bullet that struck Victim 1’s legs. After that single shot, Quintero’s firearm jammed, and he was unable to unjam the weapon in time to shoot Victim 1 again. Quintero got back into the car Nunez was driving, and Nunez attempted unsuccessfully to hit and kill Victim 1 with the vehicle. Quintero and Nunez then fled the scene. Later that night, in the early hours of March 27, 2024, the teen hitmen showed up at the intended victim’s home to finish the job. They were joined this time by an older accomplice, 28-year-old Ricardo Sanchez. Each gang member expected to be paid approximately $50,000. The trio approached Victim 1’s home, carrying at least one firearm apiece. Victim 1’s family (including Victim 2 and Victim 3, a minor) and friend (Victim 4) were present in the home. Sanchez banged on the front door, and once Victim 4 responded, Quintero and Nunez shot at Victim 4 and fired indiscriminately at Victim 1’s family home. According to the plea agreements, Nunez and Quintero acted with the intent of ending the life of Victim 4 and anyone within the kill zone they created in targeting Victim 1. Victim 4 was shot in the hand, arm, and face by Quintero and Nunez, but he survived. In response to Quintero and Nunez’s actions, Victim 4 shot toward Nunez, Quintero and Sanchez to protect himself and the others within the home and, in so doing, Victim 4 shot and killed Sanchez—a provocative-act murder to which Nunez and Quintero pleaded guilty. After that, the hitmen fled the scene. Nunez and Quintero pleaded guilty to the attempted murder of Victim 1 and Victim 4, and to the murder of Sanchez, for knowingly and intentionally engaging in the provocative acts described above. The defendants admitted their purpose in committing the attempted murder was to gain entrance to, to maintain, and to increase their positions in the Westside Wilmas gang. They also admitted they were tapped to murder Victim 1 because they were minors and, specifically, only 15 at the time. According to admissions in their plea agreements, the defendants knew—if apprehended for this conduct—that they were ineligible to be transferred to adult status under the laws of the State of California because they were under the age of 16 at the time of the offense. For example, among other discussions Nunez had with his co-defendant after being arrested, Nunez and Quintero talked about not being able to “catch a…707” because of their age at the time, which referred to not being subject to adult transfer under California Welfare & Institutions Code Section 707. “In 2018, the California Legislature enacted Senate Bill 1391, which made state prosecutions of 14- and 15-year-olds in adult criminal court a practical impossibility regardless of the seriousness of the crime,” said U.S. Attorney Adam Gordon. “SB 1391 created perverse incentives, and today’s plea agreements are proof that the Sinaloa Cartel and a hyper-violent criminal street gang controlled by the Mexican Mafia responded to these incentives. They recruited 15-year-olds to conduct a gangland assassination in San Diego for $50,000 each. The brutal realities of cartel and gang violence demand a response, not a reprieve. The Department of Justice will federally prosecute - as adults - juveniles who commit violent acts on behalf of cartels, the Mexican Mafia, or criminal street gangs.” “Today’s guilty pleas reflect the FBI’s sustained commitment in working with our law enforcement partners to aggressively investigate, dismantle and eliminate these violent groups and keep our neighborhoods safe,” said Mark Dargis, Special Agent in Charge of the FBI San Diego Field Office. “The disgraceful tactic of cartels, street gangs, and the Mexican Mafia using underage children for murderous acts to evade enhanced punishments will not be tolerated. These violent crimes have no place in our communities and criminal gangs will be held accountable to the fullest extent of the law.” “This outcome is the result of outstanding and tireless work by our investigative team and close coordination with our regional and federal partners,” said Chula Vista Police Chief Roxana Kennedy. “Together, we remain committed to holding violent criminals accountable for their actions.” The defendants were charged with Attempted Murder in Aid of Racketeering and Murder in Aid of Racketeering (VICAR murder) because they conducted the hits for the purpose of promoting the Westside Wilmas Enterprise. In association with the Mexican Mafia, the Enterprise engages in drug trafficking, weapons distribution, the collection and transfer of “taxes” and narcotics proceeds, armed assaults, and murders for the Enterprise, which was the Wilmas gang. Enterprise members are also aware that juvenile gang members, particularly those under the age of 16, can be subject to significantly less custodial time than adults would in California state courts even if found guilty of the commission of violent offenses. The defendants are scheduled to be sentenced on March 20, 2026, at 9:30 a.m. before U.S. District Judge Todd Robinson. This case is being prosecuted by Assistant U.S. Attorneys Ashley Goff, Peter Horn and Joshua Mellor. DEFENDANTS Case Number 25cr4822-TWR Andrew Nunez aka “Shooter,” aka “Felon,” Age: 16 Wilmington, CA Johncarlo Quintero Age: 17 Wilmington, CA aka “Dumper” SUMMARY OF CHARGES Attempted Murder in Aid of Racketeering (Title 18, U.S.C., Secs. 1959(a)(5) and 2) Two counts Maximum penalty: Ten years in prison, $250,000 fine Murder in Aid of Racketeering (Title 18, U.S.C., Secs. 1959(a)(1) and 2). One count Maximum penalty: Death or life in prison; $250,000 fine INVESTIGATING AGENCIES Federal Bureau of Investigation Chula Vista Police Department Bureau of Alcohol, Tobacco, Firearms and Explosives United States Marshals Service California Highway Patrol *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty. This 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 San Diego comprises agents and officers from FBI, Homeland Security Investigations, DEA, ATF, U.S. Marshals, Department of Defense, U.S. Postal Inspection Service, Naval Criminal Investigative Service, IRS Criminal Investigation, U.S. Coast Guard, U.S. Customs and Border Protection and Interpol, with the prosecution being led by the United States Attorney’s Office for the Southern District of California.


title: Clarinda Man Sentenced to Nine Years in Federal Prison for Receipt of Child Pornography

body_text: COUNCIL BLUFFS, Iowa – A Clarinda man was sentenced today, December 18, 2025, to nine years in federal prison for receipt of child pornography. According to public court documents, the National Center for Missing and Exploited Children received CyberTips that an account, later determined to be associated with Rodney Ray Biggerstaff, 54, uploaded files containing child sexual abuse material. Law enforcement seized electronic devices during a search of Biggerstaff’s Clarinda residence. A forensic examination of a seized electronic device revealed images and videos containing child sexual abuse material depicting mostly prepubescent females. After completing his term of imprisonment, Biggerstaff will be required to serve a five-year term of supervised release. There is no parole in the federal system. Biggerstaff was also ordered to pay $3000 in restitution. United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Iowa Department of Public Safety-Division of Criminal Investigation-Internet Crimes Against Children Task Force and the Federal Bureau of Investigation-Child Exploitation Task Force, with assistance from the Clarinda Police Department. 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 the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Council Bluffs Man Sentenced to 77 Months in Federal Prison for Firearms Charge While on Federal Supervised Release

body_text: COUNCIL BLUFFS, Iowa – A Council Bluffs man was sentenced today, December 18, 2025, to 77 months in federal prison for possessing firearms as a felon. According to public court documents, Cornelius Lavaughn David, 37, possessed two loaded firearms, which were recovered during a traffic stop in April 2025. One of the firearms David possessed had an extended magazine loaded with 25 rounds of ammunition. David was also in possession of methamphetamine and Xanax. At the time of the traffic stop, David was on federal supervised release for a 2023 conviction for possessing a firearm as a felon. He had been released from prison in November 2024. David was sentenced to 18 months imprisonment for violating his terms of supervised release, consecutive to the 77-month sentence. After completing his term of imprisonment, David will be required to serve a three-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 Iowa State Patrol, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Bay Area Businessmen, Chinese National, And Three Companies Charged With Scheme To Evade Millions In Customs Duties

component: USAO - California, Northern

body_text: SAN FRANCISCO – A federal grand jury has indicted Xin Mian Pan (a/k/a “Henry Pan”), Hua Liang Xie (a/k/a “Nolan Xie”), Jinhua Wang (a/k/a “Johnson Wang”), Uni-Tile & Marble, Inc., Uni-Stone & Cabinet, Inc., and Shenzhen Top & Profit International Forwarding Co. Ltd. on charges arising from a scheme to evade more than $109 million in anti-dumping duties, countervailing duties, and other duties imposed on quartz surface products, wooden cabinets and vanities, and ceramic tiles manufactured in the People’s Republic of China (PRC) and imported into the United States. Pan was arrested yesterday and made his initial appearance in federal district court today. The indictment filed December 17, 2025, and unsealed today charges Pan, 63, of San Francisco; Xie, 61, of South San Francisco; Wang, 53, a PRC national; Pan’s Bay Area companies, Uni-Tile & Marble and Uni-Stone & Cabinet; and Wang’s PRC-based company, Top & Profit, with conspiracy, conspiracy to commit wire fraud, wire fraud, smuggling, and entry of goods by means of false statements. Pan, Uni-Tile & Marble, and Uni-Stone & Cabinet are additionally charged with international money laundering. “Defendants are charged with evading customs duties intended to protect U.S. manufacturers and American jobs. The alleged scheme cheated the United States out of hundreds of millions of dollars in customs duties and harmed honest businesses that play by the rules,” said United States Attorney Craig H. Missakian. “Companies that think they can beat the system should be on notice that they will be investigated and held accountable.” “Evading tariffs and customs duties is not a paperwork violation,” said Deputy Assistant Attorney General Brenna Jenny for the Justice Department’s Civil Division. “Today’s charges reflect the Department’s commitment, through its Trade Fraud Task Force, to impose significant penalties on those who flout U.S. trade laws.” “Today’s indictment demonstrates our unwavering commitment to holding accountable those who seek to undermine the integrity of our financial and trade systems,” said Tatum King, Special Agent in Charge, HSI San Francisco. “The charges of conspiracy, wire fraud, smuggling, entry of goods by means of false statements, and international money laundering reflect the seriousness of the alleged criminal conduct. We will continue to work with U.S. Customs and Border Protection, the U.S. Attorney’s Office, and other partner agencies to ensure that those who attempt to profit through deception and illegal activity are brought to justice.” According to the indictment, the U.S. Department of Commerce imposes duties, including anti-dumping duties and countervailing duties, on certain foreign imports. Antidumping duties (AD) provided relief to domestic industries that had been, or were threatened with, material injury caused by imported goods sold in the U.S. market at prices that were shown to be less than fair market value. Countervailing duties (CVD) gave similar relief to domestic industries that had been, or were threatened with, material injury caused by imported goods that had been found to have received significant foreign government subsidies and could therefore be sold at lower prices than similar goods produced in the United States. These unfair trade practices historically caused significant harm to U.S. manufacturers, resulting in large-scale layoffs of employees and the demise of many U.S.-based manufacturing industries. When imposed together on certain merchandise, AD/CVD rates are described as a “combination rate.” Over the 2018 to 2020 time period, the Department of Commerce determined that quartz surface products, wooden cabinets and vanities, and ceramic tiles manufactured in the PRC were being sold in the United States at less than fair market value. As a result, the United States imposed a combination rate of 341.47 percent on quartz surface products imported from the PRC, a combination rate of 251.64 percent on wooden cabinets and vanities imported from the PRC, and a combination rate of 689.50 percent on ceramic tiles imported from the PRC. The indictment alleges that beginning no later than September 2018 and continuing through August 2023, defendants devised a scheme to avoid paying the combination rate and other customs duties to increase the profitability of Pan’s companies and to enrich Pan. Pan controlled several companies, including Uni-Tile & Marble and Uni-Stone & Cabinet, that imported kitchen products such as quartz surface products, wooden cabinets and vanities, and ceramic tiles that were subject to the combination rate. Pan and his co-conspirators utilized several techniques to avoid paying duties, including the transshipment of goods through Malaysia, the use of shell companies, and misclassifying imported products. Wang and Top & Profit allegedly facilitated Pan’s efforts to avoid paying the combination rate by sending goods manufactured in the PRC to Malaysia, re-exporting those goods from Malaysia to the Port of Oakland, and falsely claiming to Customs and Border Protection (CBP) that the goods had been manufactured in Malaysia. In addition, Pan utilized shell companies that were falsely listed on entry documents as being the U.S.-based importer and recipient of the goods when in fact the goods were destined for Pan’s companies, including Uni-Tile & Marble and Uni-Stone & Cabinet. Defendants are also alleged to have misclassified products and submitted false documentation to CBP, including the filing of false entry summaries by Xie, a licensed customs broker. In total, Pan, Uni-Tile & Marble, Uni-Stone & Cabinet, and their co-conspirators allegedly imported approximately 520 shipments as part of the scheme, which allowed Pan’s companies to avoid paying more than $109 million in duties owed to the United States. Further, CBP has simultaneously issued an approximately $222.5 million pre-penalty notice to Uni-Tile & Marble and Pan, jointly and severally, where CBP tentatively found that both Pan and Uni-Tile & Marble fraudulently entered goods by means of false statement in violation of 19 U.S.C. § 1592. Pan is currently in federal custody and is next scheduled to appear on December 19, 2025, for a detention hearing before U.S. Magistrate Judge Thomas S. Hixson. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of five years in prison for each count of conspiracy in violation of 18 U.S.C. § 371; 20 years in prison for each count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, wire fraud in violation of 18 U.S.C. § 1343, and smuggling in violation of 18 U.S.C. § 545; two years in prison for each count of entry of goods by means of false statements in violation of 18 U.S.C. § 542; and 20 years in prison for each count of international money laundering in violation of 18 U.S.C. §1956(a)(2). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant U.S. Attorneys Christiaan Highsmith, Aseem Padukone, and Kelsey Davidson are prosecuting the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by HSI and CBP. The civil penalty will be pursued by CBP in an administrative process and will be supported by Senior Trial Counsel Liridona Sinani of the Civil Division, Commercial Litigation Branch, National Courts Section and other Civil Division attorneys with the Trade Fraud Task Force. Pan, Xie, Wang, et al. Filed Indictment


title: Customs Broker Sentenced to More Than 4 Years in Federal Prison for Defrauding Clients Out of Millions of Dollars and Cheating on Taxes

component: USAO - California, Central

body_text: LOS ANGELES – A Riverside County man and customs broker was sentenced today to 51 months in federal prison for defrauding his clients – businesses who ship goods into the United States from foreign countries – out of more than $5 million, including after he already had been indicted on federal fraud charges, and to committing more than $1 million in tax evasion. Frank Seung Noah, 63, of Corona, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $7,579,141 in restitution. Noah pleaded guilty on February 7 to one count of tax evasion and two counts of wire fraud. Noah owned and operated Comis International Inc., a Cerritos-based logistics and supply-chain company, which offered customs import brokerage services on behalf of businesses. From 2007 to 2019, Comis was a customs import broker for Daiso, a Japan-based variety and value store with stores in the United States, including Southern California. During that time, Noah provided Daiso with false customs duty forms and invoices in support of fraudulent requests for reimbursement for duty fees. These forms differed materially from those Noah submitted to U.S. Customs and Border Protection (CBP) and inflated the total amounts, resulting in Daiso overpaying Noah nearly $3.4 million. After Noah was indicted for defrauding Daiso in 2022, he continued to defraud his other clients out of more than $2 million using a different fraud scheme. Noah defrauded two other client companies by invoicing and receiving funds from the two victim companies, and then simply pocketing the funds instead of paying the customs duties to CBP. After CBP notified the victim clients of their unpaid customs duties, they asked Noah about the unpaid fees, and he sent the victim clients altered bank statements falsely reflecting that he had paid the customs duties. Noah also willfully evaded payment of federal taxes resulting in a loss to the IRS of approximately $2.4 million, with penalties and interest continuing to accrue. After agreeing with the IRS that he owed more than $1 million in taxes in 2014, Noah actively avoided IRS attempts to collect the amount owed. This included paying for two homes in his former girlfriend’s name, using check cashing businesses to avoid IRS levies of his bank accounts, lying to IRS collection agents, and spending thousands of dollars on country club memberships, travel, and golf purchases. IRS Criminal Investigation and Homeland Security Investigations investigated this matter with the assistance of United States Customs and Border Protection. Assistant United States Attorneys Nandor F.R. Kiss and Robert J. Keenan of the Orange County Office prosecuted this case.