title: Porcupine Man Sentenced to Federal Prison  for Assault within the Pine Ridge Reservation

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Camela C. Theeler has sentenced a man from Porcupine, South Dakota, convicted of one count of Assault with a Dangerous Weapon. The sentencing took place on August 18, 2025. Elijah Keith Battese, 25, was sentenced to one year and one day in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Battese was indicted for two counts of Assault with a Dangerous Weapon by a federal grand jury in January 2025. He pleaded guilty on May 2, 2025. On September 27, 2024, Battese struck a juvenile male with a vacuum handle. The victim suffered a 1.4-inch laceration to his right-ear area, requiring eleven sutures from emergency medical services. The offense took place within the Pine Ridge Reservation. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. This case was investigated by the Oglala Sioux Tribe Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Benjamin Schroeder prosecuted the case. Battese was immediately remanded to the custody of the U.S. Marshals Service.


title: Repeat Offender Sentenced to 10 Years for Possession of Child Sexual Abuse Material

component: Criminal Division

body_text: An Oklahoma man was sentenced last week to 10 years in prison for possession of child sexual abuse material. According to court documents, Thomas Edward Gailus, 52, of Webber Falls, Oklahoma, used the dark web to access child sexual abuse material, which he collected in large quantities, including child sexual abuse material featuring prepubescent minors. Gailus had previously been convicted in 2005 of possession of depictions of minors engaged in sexually explicit conduct and communication with a minor for immoral purposes in Washington State. At the time of the search of his home in 2023, Gailus possessed or accessed with intent to view child sexual abuse files with the same series title as the images that he was convicted of possessing in 2005. Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Chris Wilson for the Eastern District of Oklahoma, Assistant Director Jose A. Perez of the FBI’s Criminal Investigative Division, and Special Agent in Charge Douglas Goodwater of the FBI’s Oklahoma City Field Office made the announcement. The Federal Bureau of Investigation investigated the case. Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jessie K. Pippin for the Eastern District of Oklahoma prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc . This case was a part of Operation Grayskull, a highly successful joint effort between the Department of Justice and the FBI, led by the FBI Child Exploitation Operation Unit. Operation Grayskull resulted in the dismantling of four dark web sites dedicated to images and videos containing child sexual abuse material (CSAM).


title: Zuni Man Sentenced to 10 Years in Federal Prison for Shooting Zuni Resident

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – A Zuni man was sentenced to 10 years and one month in prison for shooting a man during a confrontation. There is no parole in the federal system. According to court documents, on September 19, 2024, Devin Wade Wyaco , 34, an enrolled member of the Zuni Pueblo, fired a handgun from the passenger seat of a moving vehicle at two bicyclists following a dispute, striking one of them in the abdomen. The victim was treated at a local hospital and survived the shooting. As a previously convicted felon, Wyaco was prohibited from possessing a firearm and ammunition. Wyaco pled guilty to three felony crimes: assault with a dangerous weapon; using, carrying, and discharging a firearm during a crime of violence; and being a felon in possession of a firearm. Upon his release from prison, Wyaco will be subject to five years of supervised release. Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today. The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Zachary C. Jones is prosecuting the case.


title: Former Dubois County Nonprofit Director Sentenced for Embezzling Over $161,000 from Youth Mentorship Program

component: USAO - Indiana, Southern

body_text: EVANSVILLE- Ellen L. Corn, 50, of Petersburg, Indiana, has been sentenced to one year and nine months in federal prison, followed by three years of supervised release, after pleading guilty to five counts of wire fraud. Corn has also been ordered to pay $121,439.72 in restitution. According to court documents, from March 2017 to August 2022, Ellen Corn served as the Executive Director for a Dubois County nonprofit that facilitates a youth mentoring program and provides college scholarships for local high school students. During her employment, Corn had various financial responsibilities including entering all income and expenses into the organization’s accounting software and had access to the organization’s credit card. Over that five-year period, Corn stole a total of $161,344.85 via several methods, including by using the organization’s credit card to pay for personal expenses at various businesses and restaurants, such as Amazon, Target, and Walmart, and to make tuition payments to colleges for her children. She made approximately 1,226 unauthorized transactions with the credit card. Corn also stole funds by making unauthorized transfers from the organization’s PayPal account to her personal PayPal account. Additionally, Corn made unauthorized purchases directly from the nonprofit’s checking account via debit card and check. Corn ensured that the organization’s accounts had enough funds to pay for her illegitimate expenses by reducing funding for certain departments and programs. In 2022, she also failed to notify a first-generation college student that the student had been selected to receive a scholarship. To conceal her fraud, Corn deliberately omitted the unauthorized transactions from the nonprofit’s accounting records, which she regularly presented to the Board of Directors and the organization’s tax preparer. “Ellen Corn abused her position of trust and stole from an organization dedicated to serving and mentoring local youth. Her crimes not only harmed the program and its ability to serve young people but also betrayed the trust of the public who support and rely on its mission,” said Tom Wheeler, United States Attorney for the Southern District of Indiana. “This sentence holds her accountable and demonstrates our commitment to protecting community nonprofits from fraud and financial exploitation.” “The sentencing in this case holds Ellen Corn accountable for violating the trust she held as the executive director of an organization focused on mentoring youth. It also reinforces the U.S. Secret Service’s commitment to pursuing officials who shamefully break the public’s trust by illegally enriching themselves through fraud and deception,” said Ike Barnes, Special Agent in Charge of the U.S. Secret Service’s Indianapolis Field Office. “Thanks to the Jasper Police Department and the U.S. Attorney’s Office of the Southern District of Indiana for pursuing this case.” “This case is a testament to the dedication and diligence of Detective Sergeant Greg Brescher, whose thorough investigation uncovered a serious breach of public trust. Thank you to those that came forward to provide the initial information as it your courage to contact us played a vital role in bringing this case to light. We are proud of the strong collaboration between the Jasper Police Department and the U.S. Department of Justice, which ensured that justice was served. Our agency remains steadfast in its commitment to holding individuals accountable, no matter their position, and to protecting the integrity of programs that serve our community’s youth.” The U.S. Secret Service and Jasper Police Department investigated this case. The sentence was imposed by U.S. District Court Judge Richard L. Young U.S. Attorney Wheeler thanked Assistant United States Attorney Matthew B. Miller, who prosecuted this case. ###


title: Mexican National Sentenced to Nine Years in Prison for Drug Trafficking

body_text: ALBUQUERQUE – A Mexican national who concealed his identity from officers and was found with firearms and multiple types of narcotics in Española has been sentenced to nine years in federal prison. There is no parole in the federal system. According to court documents, on April 24, 2023, officers with the Española Police Department found Marco Antonio Lozoya-Ugarte , a Mexican nationalwho entered the United States on a business visa, unresponsive behind the wheel of a running vehicle in Española, New Mexico, within the exterior boundaries of Santa Clara Pueblo. After removing Lozoya-Ugarte from the vehicle, officers discovered a holstered handgun on his hip, a loaded rifle magazine inside the vehicle, and an AR-15 style rifle in plain view. A subsequent search revealed additional firearms and approximately 148 grams of methamphetamine, 22.5 grams of cocaine, 605 fentanyl pills, 204 ecstasy pills, and 6.5 grams of black tar heroin as well as drug paraphernalia, and distribution materials. Lozoya-Ugarte initially gave officers a false name but later admitted his true identity. Lozoya-Ugarte pled guilty to possession with intent to distribute methamphetamine and using and carrying a firearm during and in relation to a drug trafficking crime. Upon his release from prison, Lozoya-Ugarte will be subject to five years of supervised releasewhich shall convert to unsupervised release upon his deportation from the United States. Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today. The Santa Fe Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Española Police Department. Assistant U.S. Attorneys Robert James Booth II and Mark A. Probasco are prosecuting the case.


title: Baltimore Man Pleads Guilty to Possession of Firearm and Ammunition by Convicted Felon

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

body_text: Baltimore, Maryland – Allan Shaw, 36, of Baltimore, Maryland, pled guilty to a federal Possession of a Firearm and Ammunition by a Prohibited Person charge. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Special Agent in Charge Charles Doerrer, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Commissioner Richard Worley, Baltimore Police Department (BPD). According to the guilty plea, on December 31, 2024, BPD officers conducted Citi-Watch camera surveillance on the 300 block of Monroe Street in Baltimore. As law enforcement surveilled the block, they saw Shaw offering controlled substances to individuals on the street. Officers also saw Shaw enter his red Dodge Ram truck multiple times, which was parked on the street. Law enforcement specifically saw Shaw conduct a hand-to-hand drug transaction in which he removed an orange pill bottle from his coat, opened the bottle to retrieve one or more pills, dropped one or more pills in a customer’s hand, and then accepted money from the customer. Officers then arrested Shaw. When law enforcement searched Shaw, they found an orange prescription bottle consistent in appearance with the bottle seen on the Citi-Watch surveillance. The bottle contained 18 oxycodone pills. Additionally, officers searched Shaw’s truck, finding cocaine base, a tan-and-black Polymer80 9mm semi-automatic handgun bearing no serial number, and approximately four rounds of 9mm ammunition. Due to a prior felony conviction, Shaw is prohibited from possessing firearms and ammunition. At the time of his arrest, Shaw was on supervised release in connection with a separate federal conviction for Possession of a Firearm and Ammunition by a Prohibited Person. As part of his plea agreement, Shaw also admitted to violating the terms of his supervised release when he committed another federal crime. Shaw and the government agreed that if the Court accepts his plea agreement, he will be sentenced to five to eight years in federal prison. U.S. District Judge Adam B. Abelson scheduled sentencing for Monday, January 5, 2026, at 10 a.m. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. U.S. Attorney Hayes commended the ATF and BPD for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Alexander Levin who is prosecuting the federal case. For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit justice.gov/usao-md and justice.gov/usao-md/community-outreach . # # #


title: Roswell Man Pleads Guilty to Federal Charges for Making Bomb Threats to Government Offices

body_text: ALBUQUERQUE – A Roswell man pled guilty to federal charges for making multiple bomb threats to government offices across several states. According to court documents, on February 14, 2025, Jeffrey Ramon Diaz , 43, made threatening calls to several governmental agencies and offices, including a United States Senator’s office, the New Mexico Second Judicial District Court in Bernalillo County, the Doña Ana County Magistrate Court, and the Governor of Pennsylvania’s office. During the calls, Diaz identified himself by name and made explicit threats of violence and bombings. He told a congressional staffer he was threatening to bomb the Senator’s office. He left a voicemail for a New Mexico state court judge threatening to blow up the judge’s building and harm the judge. He also spoke directly to a receptionist at the Doña Ana County Magistrate Court, declaring a bomb threat and threatening to set the building on fire. Additionally, Diaz called the Pennsylvania Governor’s office claiming he had placed a bomb in the Governor’s home and threatened to kill those inside. Diaz knew at the time that he did not have bombs at any of these locations but made the threats intending to cause fear, panic, and intimidation. On August 11, 2025, Diaz pled guilty to four counts of Malicious Threat to Injure by Fire or Explosive. At sentencing, Diaz faces up to 10 years in prison. Acting U.S. Attorney Ryan Ellison and Special Agent in Charge Brendan Iber of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement today. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Las Cruces Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office, U.S. Marshals Service, Las Cruces Police Department and Chaves County Sheriff’s Office. Executive Assistant U.S. Attorney Christopher McNair is prosecuting the case.


title: Jacksonville Man Sentenced To Federal Prison For Agreeing To Launder Over $250,000

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Mauricio Chahine (53, Jacksonville) to four years and two months in federal prison for engaging in money laundering. The court also ordered Chahine to forfeit $12,000 in proceeds from his money laundering enterprise. Chahine pleaded guilty on April 30, 2025. According to court documents and evidence presented at Chahine’s sentencing hearing, a confidential source notified the Drug Enforcement Administration that Chahine was a money launderer with the ability to launder funds from the United States to other countries. Prompted by this information, an undercover federal agent contacted Chahine and asked to meet in person. Chahine agreed. During a meeting in March 2024, a pair of undercover agents played the role of cocaine traffickers and told Chahine that they needed help moving money around. Without hesitating, Chahine said he needed to know how much money, where it was going, and how fast they needed it at the destination. When one of the agents asked if Chahine knew what they did, Chahine replied that he did not care. The agent then told Chahine that he sells some of the “white stuff,” referring to cocaine. Chahine responded that he did not want to know. The undercover agent explained that due to his work, he had large amounts of bulk currency in different places. Chahine reiterated that all he needed to know was where the money was going and how they wanted it, including “big bills or small bills,” and identified his fee as 12% for amounts over $200,000 and 15% for amounts under $200,000. Chahine suggested that he had been in the business since 1999 and advertised his abilities to launder money in various states and countries, including Brazil, the Netherlands, Lebanon, Venezuela, Colombia, Panama, China, France, and Spain. Chahine suggested that they may need to create invoices to make it appear as though they were buying or selling merchandise. He also explained how he had multiple businesses and offered to move money through his bank accounts. During the meeting, Chahine mentioned that he would not deposit currency he received all at once; instead, he would split it up and deposit the money in increments like $5,000 per day. A series of meetings followed between Chahine and additional undercover agents during which Chahine accepted money to launder. Over the course of five transactions, Chahine accepted $217,975 in cash and $50,000 in fake currency. He divided and deposited the money into seven different corporate accounts at various banks before being wired back to an undercover government account in different increments. On different occasions, Chahine asked an undercover agent to supply him with a fake invoice to make it appear as if they were engaged in legitimate business. Chahine has been in custody since November 12, 2024, when he was arrested and detained by the court as a flight risk. “Drug traffickers often rely on others to launder the profits from their drug running,” said Special Agent in Charge Ronald Loecker, IRS Criminal Investigation Tampa Field Office. “IRS Criminal Investigation will continue to devote our financial expertise to identify, investigate and bring to justice those who engage in sophisticated money laundering techniques that facilitate the distribution of narcotics and the concealment of proceeds.” This case was investigated by Internal Revenue Service Criminal Investigation and the Drug Enforcement Administration, with assistance from the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Kelly S. Milliron and Michael J. Coolican. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF .


title: Temu Agrees to $2M Civil Penalty and Injunction for Alleged Violations of the INFORM Consumers Act

component: Civil Division

body_text: The Justice Department, together with the Federal Trade Commission (FTC), announced today that a federal court has entered a stipulated order resolving a case against Whaleco Inc., doing business as “Temu.” Under the order, Temu will pay $2 million in civil penalties as part of a settlement to resolve allegations that it violated the INFORM Consumers Act in connection with its online marketplace. The INFORM Consumers Act requires that online marketplaces clearly and conspicuously disclose identifying information about high volume sellers on their platforms and provide mechanisms for consumers to electronically and telephonically report suspicious activity to the marketplace. In a complaint filed in the U.S. District Court for the District of Massachusetts, the government alleged that Temu failed to sufficiently disclose certain information for high-volume third party sellers, such as seller addresses, and Temu did not consistently provide the reporting mechanisms required by law. “The Justice Department is committed to ensuring American consumers have information about third-party sellers online and mechanisms to report suspicious marketplace behavior,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to ensure that online marketplaces follow the INFORM Consumers Act.” In addition to imposing a $2 million civil penalty on Temu, the stipulated order requires Temu to put measures in place to ensure compliance with the INFORM Consumers Act going forward. The United States is represented in this action by Senior Trial Attorney Sarah Williams and Assistant Director Zachary A. Dietert of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Alexandra Brazier for the District of Massachusetts, provided assistance. Tiffany M. Woo and Carl Settlemyer represent the FTC. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch .


title: Owner of Facility for Intellectually Disabled Adults Pleads Guilty to Health Care Fraud

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of the East Hills neighborhood of Pittsburgh pleaded guilty in federal court to health care fraud, Acting United States Attorney Troy Rivetti announced today. Kelley Oliver-Hollis, 61, pleaded guilty before United States District Judge William S. Stickman IV. Through her plea, Oliver-Hollis also acknowledged responsibility for 39 other counts with which she was charged by Superseding Indictment in August 2025, including making false statements relating to health care matters, concealment of material facts related to health care matters, money laundering, and misuse of Social Security benefits by a representative payee (read the Superseding Indictment news release here ). In connection with the guilty plea, the Court was advised that Oliver-Hollis was an enrolled Medicaid provider operating as Serenitycare LLC in Penn Hills, Pennsylvania, under the state’s Home and Community-Based Services (HCBS) Waiver Program, through which the defendant housed and was to have provided services to several intellectually disabled adults, including staffing the homes with adequate workers to care for the residents. Program records demonstrated that, between 2018 and 2023, Oliver-Hollis failed to sufficiently staff the homes according to the requirements of the program, and instead regularly submitted weekly claims for HCBS benefits falsely representing proper staffing of the homes. Additionally, Oliver-Hollis allowed the homes to fall into a state of disrepair, resulting in multiple citations for unsanitary and unsafe living conditions for the residents. Judge Stickman scheduled sentencing for February 10, 2026. The law provides for a maximum total sentence of up to10 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorneys Gregory C. Melucci and Brendan J. McKenna are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of Attorney General, Allegheny County District Attorney’s Office, Department of Health and Human Services-Office of Inspector General, Internal Revenue Service-Criminal Investigation, Social Security Administration-Office of the Inspector General, and U.S. Department of Labor-Office of Inspector General conducted the investigation that led to the prosecution of Oliver-Hollis. The United States Attorney’s Office’s efforts to combat healthcare fraud are frequently made possible by tips from the community. To report suspected fraud, please contact the FBI’s healthcare fraud tipline at WDPAhealthcarefraud@fbi.gov or the Department of Health and Human Services at 1-800-HHS-TIPS.


title: Ecuadorian National Pleads Guilty to Illegally Reentering U.S.

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, announced that STANLIN DANIEL VASQUEZ-SALINAS, also known as “Stalin Vasquez-Salinas” and “Stalin Vasquez,” 25, a citizen of Ecuador last residing in Danbury, pleaded guilty today before U.S. District Judge Victor A. Bolden in New Haven to unlawful reentry of a removed alien. According to court documents and statements made in court, on March 11, 2025, Danbury Police arrested Vasquez-Salinas and charged him with conspiracy to commit commercial sexual abuse of a minor between the ages of 15 and 17 years old. Vasquez-Salinas identified himself as “Stalin D. Vasquez” at the time of his arrest. Analysis of Vasquez-Salinas’ fingerprints confirmed his true identity, and the investigation revealed that Vasquez-Salinas had illegally entered the U.S. in December 2019 and was arrested by the U.S. Border Patrol in Texas. He was removed to Ecuador in May 2020. On March 14, 2025, Vasquez-Salinas was released from state custody on bond. That same day, after a brief vehicle chase and subsequent foot pursuit, he was taken into ICE custody and has been detained since his arrest. At sentencing, which is not scheduled, Vasquez-Salinas faces a maximum term of imprisonment of two years. His state charges are pending. This matter has been investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations, with the assistance of the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj. N. Patel. U.S. Attorney Sullivan thanked the State’s Attorney’s Office for the Judicial District of Danbury for its cooperation in investigating and prosecuting this matter. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).


title: Pittsburgh Man Sentenced to Prison for Bank Robbery

body_text: PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 70 months of imprisonment on his conviction of bank robbery, Acting United States Attorney Troy Rivetti announced today. United States District Judge Cathy Bissoon imposed the sentence on Mark Laughner, 38, on September 4, 2025, and included an order that the defendant pay restitution to the bank. According to the information presented to the Court, on May 16, 2024, Laughner entered a Reserve Township bank wearing a baseball cap and neck gaiter that covered his mouth and nose and instructed the teller to give him all of her large bills. After the teller handed over the $100 and $50 bills from her cash drawer, the defendant demanded that the teller provide more cash quickly or he would shoot her in her face. Laughner left the bank with $1,370 in U.S. currency and was ultimately identified through the utilization of surveillance recordings as well as witness interviews. Allegheny County Police Department (ACPD) detectives obtained a warrant for Laughner’s arrest, and, on May 20, 2024, attempted to apprehend the defendant when detectives observed him in the passenger seat of a vehicle outside of a Pittsburgh fire station. As detectives converged on the vehicle with their emergency lights activated, the driver exited the vehicle. Laughner jumped from the passenger side of the vehicle into the driver’s seat and began fleeing detectives by driving in reverse at a high rate of speed. Ignoring multiple verbal commands to stop, Laughner came within inches of striking two ACPD detectives before stopping, exiting the vehicle in the middle of the street, and fleeing on foot. Using a police K-9 unit, law enforcement apprehended Laughner after finding him hiding in thick brush. Assistant United States Attorney V. Joseph Sonson prosecuted this case on behalf of the United States. The Allegheny County Police Department and Federal Bureau of Investigation conducted the investigation that led to the prosecution of Laughner. 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.


title: New Horizons Computer Learning Center In Jacksonville And Owner Resolve GI Bill Allegations

body_text: Tampa, Fla. – United States Attorney Gregory W. Kehoe announces today that a New Horizons Computer Learning Center franchise and its owner, Coastal Corporate Training, Inc., have agreed to pay $500,000 to resolve allegations that the school overcharged the U.S. Department of Veterans Affairs (VA) by failing to support tuition waivers provided to VA-supported students, by false certifying compliance with a statutory ban on incentive compensation tied to student enrollment, and by falsely certifying compliance with a rule governing veteran enrollment. The Post - 9/11 Veterans Education Assistance Act of 2008 (“GI Bill”) financially supports service members, veterans, and their eligible dependents who attend an education or training program at an educational institution. The longer a person serves in the military, the greater the benefits available under the GI Bill. If a school offers to waive tuition for a student receiving less than 100-percent assistance, that tuition waiver must be reported to the VA and the student’s portion reduced accordingly. Additionally, federal law prohibits participating schools from paying any commission, bonus, or other incentive payment based directly or indirectly on securing student enrollments. Finally, a federal regulation imposes the “85/15” rule, which prohibits the VA from approving enrollment in any course for an eligible veteran not already enrolled for any period during which more than 85% of the enrolled students have all or part of their tuition paid for by the educational institution or the VA. The United States alleged that, between 2015 and 2020, Coastal Corporate Training, Inc., which owned the New Horizons Computer Learning Center – Jacksonville franchise, failed to deduct tuition waivers from the tuition billed to the VA for students receiving less than 100-percent assistance under the GI Bill, falsely certified compliance with Title 38 by paying commissions, bonuses, or other incentive payments to enrollment representatives, and falsely certified compliance with the 85/15 rule for courses that included VA-funded students. “The Post - 9/11 GI Bill provides a hard-earned benefit to our nations’ veterans, equipping them with the education and training of their choice for civilian careers after they have completed their military service,” said United States Attorney Gregory W. Kehoe. “My office will continue to ensure that the GI Bill funds are used as intended – to benefit American veterans.” “This settlement demonstrates that violations of Post-9/11 GI Bill benefits regulations will not be tolerated,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG will continue to work with our law enforcement partners to protect the integrity of VA’s education benefits program.” This resolution results from a coordinated effort by the United States Attorney’s Office for the Middle District of Florida and the U.S. Department of Veterans Affairs - Office of Inspector General. Senior Litigation Counsel Mamie V. Wise handled the investigation and prosecution of the case. The claims resolved by the settlement are allegations only. No determination of liability has occurred.


title: Convicted Felon Sentenced to Federal Prison for Gun, Drug Charges

body_text: COLUMBIA, S.C. — Terrance Demetrius Bass, 34, of Columbia, has been sentenced to more than six years in federal prison for being a felon possession of a firearm and possession with intent to distribute methamphetamine and marijuana. Evidence obtained in the investigation revealed that on Dec. 16, 2022, Columbia Police Department officers approached Bass in a vehicle after concerned citizens reported that individuals were selling drugs out of the vehicle. Officers smelled marijuana coming from the vehicle and conducted a probable cause search. Officers found a bag containing 295 pills which contained methamphetamine, and 91 grams of marijuana packaged for distribution. Officers also found a firearm in the glove compartment and a scale in the center console. Bass admitted the firearm and marijuana belonged to him. Bass has prior convictions for conspiracy to commit burglary and armed robbery, assault and battery and domestic violence, all of which prevent him from possessing a firearm under federal law. United States District Judge Mary Geiger Lewis sentenced Bass to 80 months imprisonment, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system. 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. This case was investigated by the City of Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case. ###


title: Carteret County Man Arrested After Threatening to “Shoot Up” Black Children at a Preschool

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – Federal agents, working with local deputies, arrested Zachary Charles Newell on Monday, September 1, 2025, for a criminal complaint charging him with making vile threats, including to “shoot up a black pre school,” in social media posts. “The defendant’s alleged threats deeply disturb us as federal law enforcement agents and have no place in our society, certainly not in Eastern North Carolina. We will meet this evil with the full force of the federal law enforcement apparatus.” said U.S. Attorney Ellis Boyle. “We will not tolerate using the internet to spread fear or target communities, especially innocent children, with heinous threats of violence.” “Every child in North Carolina deserves go to school without fear. Your FBI will work with local, state, and federal law enforcement partners to investigate threats directed at schools. This federal charge should be a warning to anyone who believes they can sit behind a keyboard and make violent threats, anonymously. FBI Charlotte commends the Carteret County Sheriff's Office for taking immediate action to make an arrest. And we are grateful to our partners at the U.S. Attorney's Office Eastern District of North Carolina to levy federal charges as well,” said James C. Barnacle Jr., the FBI Special Agent in Charge in North Carolina. According to court documents, on August 31, 2025, Google notified the FBI’s National Threat Operations Center of threatening comments posted by YouTube user “CommentatorsHateMe.” Investigators identified the account as belonging to Newell. On August 26 and 27, 2025, Newell allegedly used the account to post threats directed at public YouTube channels discussing a wrestling match involving Raja Jackson. In one instance, Newell wrote, “I’m gonna shoot up a black pre school. 20 black babies will be shot.” The affidavit also alleges that Newell directed additional racist threats promoting violence against Black individuals. If convicted, Newell faces up to five years in federal prison. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina made the announcement. The FBI is investigating the case and Assistant U.S. Attorney Erin Blondel is prosecuting the case. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.4:25-MJ-01076. A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty. ###


title: Zuni Man Pleads Guilty to Sexual Abuse

body_text: ALBUQUERQUE – A Zuni man has pleaded guilty to federal charges for sexually abusing a woman. According to court records, on August 19, 2023, Stanton Hannaweeke , 63, an enrolled member of the Pueblo of Zuni, used force to engage in nonconsensual sexual conduct with Jane Doe. Hannaweeke pleaded guilty to one count of sexual abuse. At sentencing, Hannaweeke faces up to life in prison. Upon his release from prison, Hannaweeke will be subject to no less than five years and up to life of supervised release. Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today. The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Jack Burkhead is prosecuting the case.


title: St. Louis Man Sentenced to Five Years in Prison for Fraudulently Obtaining $1.2 Million in Mortgages

body_text: ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a man to five years in prison for fraudulently obtaining home mortgages totaling more than $1.2 million. Judge Autrey also ordered Edward James Mitchell Jr., also known as Musa Muhammad, to repay a total of $482,096 to lenders for their losses due to Mitchell’s scheme. Mitchell, now 37, of St. Louis, participated in four fraudulent home mortgages from October 2021 through November 2023. Mitchell’s company, Home Team Solutions LLC, purchased three homes in St. Louis and one in Florissant. Mitchell then pretended to be one of his relatives to “buy” two of the homes, submitting fraudulent mortgage loan applications and false employment and financial information and using his relative’s Social Security number and birthdate. He bought another home himself and sold another to his paramour, again submitting false or fraudulent documents. The total value of the loans was $1,226,550. All the lenders suffered losses due to Mitchell’s fraud. One home was sold at a discount. Another was sold in a foreclosure sale. A third was sold in a short sale. “The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) carefully investigates allegations of mortgage fraud involving the government-sponsored enterprises, Fannie Mae and Freddie Mac,” said Korey Brinkman, Special Agent in Charge of FHFA-OIG’s Central Region. “We are proud to work with our partners in this investigation.” Mitchell pleaded guilty in April in U.S. District Court in St. Louis to one felony count of bank fraud. In October 2023, Mitchell legally changed his name to Musa Muhammad. The FBI and the Federal Housing Finance Agency Office of Inspector General investigated the case. Assistant U.S. Attorney Kyle Bateman prosecuted the case.


title: Former Executives Sentenced in $1.9 Million Fraud Scheme

component: USAO - Colorado

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Michael Vergato, 52, has been sentenced to 46 months in federal prison and fined $20,000 for his role in a scheme that defrauded a Colorado-based data management company of nearly $2 million. His co-defendant, Mark Perlstein, 60, received a 25-month prison sentence and a $15,000 fine. Perlstein pleaded guilty to wire fraud in June 2025, while Vergato was convicted on six counts of wire fraud following a six-day trial in May 2025. The court ordered restitution of $1,949,023, for which both men are jointly liable. After their prison terms, Vergato and Perlstein will each serve three years of supervised release. According to Perlstein’s plea agreement, and evidence presented at the trial of Vergato, from 2013 to 2020, Vergato served as a vice president at Arrow Electronics, where he oversaw performance tuning of the company’s Oracle EBS databases, including work performed by Perlstein’s company. Vergato and Perlstein devised a scheme to bill the data management company for performance tuning services purportedly to be completed by a shell company created by Vergato, Oracle Performance Tuning and Optimization, LLC (“OPTO”). Posing as a legitimate contractor, OPTO submitted 21 fraudulent contracts and invoices to the data management company for database performance tuning services that were never performed. Perlstein, in his position as CEO, approved the invoices and wired payments to OPTO. The scheme funneled nearly $2 million in company funds into OPTO. Perlstein and Vergato divided the proceeds, concealing their involvement by using personal email accounts, other corporate entities, and fake identities. To conceal his role, Vergato used his stepdaughter’s identity to conduct business on behalf of OPTO. At trial, the data management company’s current CEO testified that the company could not substantiate any work performed by OPTO or identify any actual employees or contractors related to that entity. Tax records confirmed OPTO paid no salaries and issued no contractor forms. In total, the data management company paid OPTO $1,949,023. Of that amount, Vergato retained approximately $874,000, using the funds for luxury vehicles, credit card payments, retirement accounts, and rent. Perlstein personally received more than $1 million through the scheme. “These defendants’ greed has earned each of them years in federal prison, and they have to pay back every dollar they took,” said United States Attorney Peter McNeilly. “Corporate fraud of this magnitude undermines confidence in our business community and harms employees, customers, and shareholders alike. These sentences send a clear message: executives who abuse their authority for personal gain will be held accountable.” "These two individuals plotted to defraud their companies of nearly $2 million, falsifying work that was never requested nor performed," said FBI Denver Special Agent in Charge Mark Michalek. “They lined their own pockets until their fraudulent scheme was uncovered, and now they will pay the consequences." United States District Judge Nina Y. Wang presided over the sentencing. The investigation was conducted by the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Nicole Cassidy, Bradley Giles, and Bob Brown. Case Number: 1:23-cr-00302-NYW


title: High-Ranking Member of Violent Mexican Drug Cartel Sentenced on Drug Trafficking Conspiracy Charge

body_text: A Mexican national and high-ranking, violent member of the Los Zetas cartel was sentenced today to over 31 years in prison for conspiring to manufacture and distribute large quantities of cocaine and marijuana. He was also ordered to pay $26.5 million in forefeiture. “Eleazar Medina-Rojas used extreme violence to rise through the ranks of Los Zetas, and, as a plaza boss, ensured that the cartel maintained control over key drug trafficking routes used to direct cocaine and marijuana into the United States, devastating our communities,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Today’s sentence is a powerful reminder that the Justice Department will aggressively pursue and bring to justice violent cartel members and hold them accountable for the death and destruction they have committed here in the United States and abroad.” “For four years, Medina-Rojas had a tight grip on routes where he was able to smuggle more than 3,000 tons of drugs into our Southern Texas border,” said Special Agent in Charge Jonathan C. Pullen of the Houston Field Division of the Drug Enforcement Administration (DEA). “Medina-Rojas controlled the routes leading to Brownsville, Laredo, and McAllen, eliminating anyone who stood in the way of his profit. DEA Houston agents' relentless work disrupted his drug trafficking routes, which eventually led to his capture, weakening the ruthless Los Zetas drug trafficking organization.” According to court documents, Eleazar Medina-Rojas, also known as El Chelelo, 53, of Nuevo Laredo, Tamaulipas, Mexico, was a member of Los Zetas, a drug trafficking organization comprised primarily of former Mexican military officers that began as an armed militaristic wing of the Gulf Cartel. Los Zetas later formed an alliance with the Gulf Cartel, and they collectively operated under the name “The Company.” Medina-Rojas was responsible for enforcement actions and protection of drug trafficking routes, which he often carried out through violence, threats of violence, and the use of weapons. For example, Medina-Rojas participated in acts of violence against rival drug trafficking groups during conflicts for control over drug plazas and trafficking routes. Medina-Rojas rose through the ranks of The Company and held important leadership roles, including directly facilitating cocaine and marijuana trafficking into and within the United States. Between 2006 and 2007, he served as regional leader, known as a “plaza boss,” in Monterrey, Mexico, commanding dozens of members of The Company in drug trafficking activity and acts of violence. Rojas was personally responsible for the importation of more than 450 kilograms of cocaine and 90,000 kilograms of marijuana into the United States. The DEA Houston Division investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and July 2023 extradition of Medina-Rojas. Trial Attorneys Jayce Born, Kirk Handrich, and Hunter Smith of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s OCDETF and Project Safe Neighborhoods.


title: Government Announces Settlement With Manhattan Pharmacist For Unlawful Distribution Of Controlled Substances

component: USAO - New York, Southern

body_text: United States Attorney for the Southern District of New York,Jay Clayton, and Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”), Frank A. Tarentino, announced that the United States has settled a civil Controlled Substances Act lawsuit against JANELLE HARRIS, the owner and supervising pharmacist of THE PHARMACY @ LCC (“THE PHARMACY”), a now-defunct pharmacy that previously operated in Manhattan. The settlement resolves claims that THE PHARMACY, under HARRIS’s supervision and direction, repeatedly filled prescriptions for controlled substances that contained “red flags”—warning signs that should have created a reasonable suspicion that the prescriptions were not legitimate. The Government’s Complaint alleged violations of the Controlled Substances Act and asked the Court to order HARRIS to pay penalties pursuant to that statute. Under the settlement, which was approved on Friday, September 5, 2025, by U.S. District Judge Jed S. Rakoff, HARRIS agreed to pay a total sum of $100,000. The settlement amount is based on the Office’s assessment of HARRIS’s ability to pay based on financial information she provided. HARRIS has also executed a Consent Judgment in the amount of $16,700,000, which may be enforced if she does not make the payments required under the settlement agreement. As part of today’s court-ordered settlement, HARRIS is also barred for five years from serving as a supervising pharmacist, and for seven years from owning, controlling, operating, or managing a pharmacy that purchases, stores, or dispenses controlled substances. HARRIS also made extensive factual admissions regarding her conduct. “Pharmacists and other healthcare professionals cannot turn a blind eye to opioid abuse,” said U.S. Attorney Jay Clayton. “Pharmacists who recklessly ignore warning signs of diversion will be held accountable.” “Pharmacists are not exempt from their regulatory responsibilities, especially when dealing with controlled substances and the dangerous effects they have when misused,” said DEA Special Agent in Charge Frank A. Tarentino. “This settlement reflects DEA’s commitment to making sure measures are in place to safeguard the community and hold DEA registrants accountable. I commend our Diversion Investigators for bringing this matter to a resolution.” As alleged in the Complaint: Between 2014 through 2018 (the “Covered Period”), HARRIS, a pharmacist licensed in the State of New York, owned and operated THE PHARMACY and served as its head pharmacist. As THE PHARMACY’s owner and head pharmacist, HARRIS had a duty to ensure that prescriptions filled at THE PHARMACY for controlled substances, including Schedule II controlled substances, were for a legitimate medical purpose before dispensing those drugs. As part of this duty, HARRIS was required to look for “red flags” indicating that the prescribed controlled substances were at risk for abuse or diversion, or not for a legitimate medical purpose. However, during the Covered Period, The Pharmacy, under HARRIS’s supervision and direction, repeatedly filled prescriptions for Schedule II controlled substances, such as Oxycodone, that presented significant red flags. Such red flags included cash payments by customers for Schedule II controlled substances, numerous prescriptions for a Schedule II controlled substance written by a single doctor, and prescriptions with semi-consecutive prescription numbers. HARRIS and her supervisees ignored these red flags and failed to take sufficient steps to resolve them before filling the prescriptions. Some of THE PHARMACY’s prescriptions for Schedule II controlled substances, such as Oxycodone, were ultimately determined to be issued without a legitimate medical purpose. As part of the settlement, HARRIS admitted and accepted responsibility for certain conduct alleged by the United States, including the following: HARRIS, as a pharmacist and owner of THE PHARMACY, had a duty to ensure that prescriptions filled at THE PHARMACY for controlled substances were for a legitimate medical purpose before dispensing. As part of this duty, HARRIS was required to look for “red flags” indicating that the controlled substances prescribed were at risk for abuse or diversion and/or not for a legitimate medical purpose. Such red flags include but are not limited to: prescriptions for high dosage strengths and/or for large quantities of controlled substances; cash payments for controlled substances; sequential prescription numbers; and multiple prescriptions for controlled substances to a single individual within a short period of time. During the Covered Period, HARRIS and/or employees of THE PHARMACY under her supervision filled prescriptions paid for in cash at THE PHARMACY for Schedule II controlled substances, such as Oxycodone, that were ultimately determined to be issued without a legitimate medical purpose and contained numerous red flags. For example, HARRIS, and/or employees of THE PHARMACY under her supervision, filled prescriptions for Schedule II controlled substances that contained the following indicia of invalidity: over a four-month period, 114 of the 115 prescriptions written by a single doctor were for 120 tablets of Oxycodone 30mg. During this period, no one from THE PHARMACY called this doctor to confirm the validity of these prescriptions. * * * Mr. Clayton praised the outstanding investigative work of the DEA. The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jacob M. Bergman is in charge of the case. u.s._v._harris_settlement_stipulation.pdf u.s._v._harris_complaint.pdf


title: Jamaican National Pleads Guilty to Long Running Fraud Scheme

body_text: A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty on Friday in the U.S. District Court for the District of South Dakota in connection a long running scheme to defraud a California woman. Dwayne Anderson, 35, of Hannover, Jamaica, pleaded guilty to federal wire fraud charges. Anderson was arrested on July 11, 2024, by Jamaican authorities based on a U.S. indictment and was extradited to the United States, where he has remained incarcerated pending trial. As part of this plea agreement, Anderson admitted that, from as early as 2010 until September 2017, he participated in a scheme to defraud an American woman. Using phony names, Anderson contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. He persuaded the victim, who believed his false representations, to send money to pay various purported fees and taxes associated with the sweepstakes. He instructed her on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told her that her winnings would be forthcoming if she paid the requested money. The victim paid the purported fees, losing more than $181,000, but never received any of the purported winnings. “The Department of Justice is committed to protecting Americans from the threats posed by transnational criminals and will vigorously pursue them, wherever they are located,” said Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division. “Anderson is the latest example in the Department’s ongoing efforts to combat these kinds of foreign based schemes and hold those involved accountable.” “Americans are increasingly falling victim to devastating fraud schemes perpetrated by transnational criminals,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “Whether it happens in a rural community or a metropolitan area, the Department of Justice will ensure these criminals are held to account for their shameless targeting of vulnerable individuals and their hard-earned savings.” “If you target vulnerable Americans with schemes designed to steal their hard-earned money, you will become our target,” said Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group. “The U.S. Postal Inspection Service knows no boundaries when it comes to protecting our communities. We will find you, we will stop you, and we will hold you accountable.” The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and August 2024 extradition of Anderson. The case is being prosecuted by Assistant Director J. Matt Williams, Senior Trial Attorney Brandon Robers, and Trial Attorney Edward E. Emokpae, of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Ann Hoffman for the District of South Dakota. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available. For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch . For more information about the U.S. Attorney’s Office for South Dakota visit their website at www.justice.gov/usao-sd . Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice .


title: Modesto, Bakersfield, and Fresno Defendants Indicted as Part of Operation Take Back America

component: USAO - California, Eastern

body_text: On Thursday, Sept. 4, 2025, a federal grand jury in Fresno brought two indictments for drug trafficking and one for illegal gun possession, U.S. Attorney Eric Grant announced. Modesto Manuel Rodriguez Diaz, 41, of Modesto, was charged with possessing more than 5 kilograms of cocaine. According to court documents, on July 10, 2025, Diaz was pulled over by law enforcement officers while driving north on California State Road 99 in Madera County. Officers seized 16 individually wrapped packages of cocaine from Diaz’s car. In total, Diaz was transporting approximately 27.65 kilograms (61 pounds) of cocaine. This case is the product of an investigation by the California Highway Patrol, the Madera Police Department, the Tri-County Drug Enforcement Team, the Madera County District Attorney’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case. Bakersfield Individually Packaged Methamphetamine Seized from Garcia’s Car. Steven Paul Garcia, 53, of Bakersfield, was charged with possessing more than 500 grams of methamphetamine with intent to distribute. According to court documents, on Aug. 26, 2025, Garcia was pulled over by law enforcement officers while driving north on California state road 99 in Fresno County. During the stop, deputies seized approximately 22 pounds of methamphetamine individually packaged in 1-pound bags. This case is the product of an investigation by the Fresno County Sheriff’s Office, the Bakersfield Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case. Fresno Thomas Carter Beasley, 20, of Fresno, was charged with being a felon in possession of a firearm. According to court documents, on Nov. 16, 2024, when law enforcement officers attempted to pull Beasley over in Fresno, he led them on a highspeed chase, speeding through stop signs and nearly hit bystanders. After crashing into a parked car, he fled on foot through a nearby apartment complex before he was caught and arrested. Officers later seized a loaded Glock 27 .40‑caliber pistol hidden under a doormat in a breezeway that Beasley fled through. The serial number of the firearm matched the gun box left behind in the crashed car. At the time, Beasley was on probation, and the firearm was loaded with 21 rounds of ammunition. Beasley is prohibited from possessing a firearm because of a prior felony conviction for receiving a stolen motor vehicle. This case is the product of an investigation by the Fresno Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Cody S. Chapple and Robert Veneman-Hughes are prosecuting the case. If convicted, Diaz and Garcia face a statutory minimum of 10 years with a maximum penalty of life in prison and a $10 million fine. If convicted, Beasley faces a maximum statutory penalty of 15 years in prison and 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; all of the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. These cases are part of Operation Take Back America , a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). The case involving Beasley 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.


body_text: WASHINGTON — A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty on Friday in the U.S. District Court for the District of South Dakota in connection to a long running scheme to defraud a California woman. Dwayne Anderson, 35, of Hannover, Jamaica, pleaded guilty to federal wire fraud charges. Anderson was arrested on July 11, 2024, by Jamaican authorities based on a U.S. indictment and was extradited to the United States, where he has remained incarcerated pending trial. As part of this plea agreement, Anderson admitted that, from as early as 2010 until September 2017, he participated in a scheme to defraud an American woman. Using phony names, Anderson contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. He persuaded the victim, who believed his false representations, to send money to pay various purported fees and taxes associated with the sweepstakes. He instructed her on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told her that her winnings would be forthcoming if she paid the requested money. The victim paid the purported fees, losing more than $181,000, but never received any of the purported winnings. “The Department of Justice is committed to protecting Americans from the threats posed by transnational criminals and will vigorously pursue them, wherever they are located,” said Assistant Attorney General Brett Shumate of the Justice Department’s Civil Division. “Anderson is the latest example in the Department’s ongoing efforts to combat these kinds of foreign based schemes and hold those involved accountable.” “Americans are increasingly falling victim to devastating fraud schemes perpetrated by transnational criminals,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “Whether it happens in a rural community or a metropolitan area, the Department of Justice will ensure these criminals are held to account for their shameless targeting of vulnerable individuals and their hard-earned savings.” “If you target vulnerable Americans with schemes designed to steal their hard-earned money, you will become our target,” said Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group. “The U.S. Postal Inspection Service knows no boundaries when it comes to protecting our communities. We will find you, we will stop you, and we will hold you accountable.” The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and August 2024 extradition of Anderson. The case is being prosecuted by Assistant Director J. Matt Williams, Senior Trial Attorney Brandon Robers, and Trial Attorney Edward E. Emokpae, of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ann Hoffman for the District of South Dakota. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available. For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch . For more information about the U.S. Attorney’s Office for the District of South Dakota visit their website at www.justice.gov/usao-sd . Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice .


title: Humboldt County Man to Federal Prison for Illegal Possession of Firearm

component: USAO - Iowa, Northern

body_text: Lawrence Moore, 37, from Bode, Iowa, was sentenced on September 4, 2025, to 96 months’ imprisonment. On April 10, 2025, in federal court in Sioux City, Moore pled guilty to possession of a firearm by a prohibited person. Moore was previously convicted of Armed Robbery and Aggravated Battery (three times) in Cook County, Illinois. The convictions prohibited Moore from possessing any firearms or ammunition. At the plea and sentencing hearings, evidence showed that Moore was involved in negotiations for the buying and selling of firearms to other people. During the fall of 2024, Moore communicated with an undercover agent, attempting to buy or trade a firearm with the agent. Moore also discussed selling marijuana to the agent. On November 18, 2024, a search warrant was executed at Moore’s residence. Law enforcement located and seized a Smith & Wesson Model 59 semi-automatic pistol, which Moore had referenced previously to the agent. The fully loaded firearm was located inside a void cut into the mattress in the bedroom shared by Moore and his wife. Law enforcement also located and seized marijuana and drug use paraphernalia in the residence, including in the bedroom. Sentencing was held before United States District Court Judge Leonard T. Strand. Moore was sentenced to 96 months’ imprisonment and must serve three years of supervised release following any imprisonment. There is no parole in the federal system. Moore remains in custody of the United States Marshal until he can be transported to a federal prison. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Humboldt County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-3050. Follow us on X @USAO_NDIA.


title: Previously convicted felon charged federally for possessing firearm during local gas station shootout

component: USAO - Ohio, Southern

body_text: DAYTON, Ohio – A Trotwood man was charged federally today after he allegedly participated in a shootout at a local gas station last week. Walter Rodgers, 35, is charged with illegally possessing a firearm after being convicted of a felony crime. According to charging documents, on Sept. 2, Dayton police officers were dispatched to the Sunoco gas station on E. Third Street in Dayton due to early afternoon calls of a shooting. Rodgers allegedly ran inside the gas station after being shot at, retrieved a firearm from his bag and exited the Sunoco to return fire. It is alleged that Rodgers possessed a firearm that law enforcement recovered at the scene. The gun was covered in blood; Rodgers was hit during the gun fight. Court documents also detail that, during the shootout, Rodgers allegedly stated, “I’m going to do ya’ll like I did Cierra,” potentially referring to his former girlfriend Cierra Chapman, who was reported missing in 2022 and is yet to be found. Rodgers was previously convicted in Montgomery County of aggravated burglary and abduction. Possessing a firearm as a convicted felon is a federal crime punishable by up to 15 years in prison. Dominick S. Gerace II, United States Attorney for the Southern District of Ohio; Thomas A. Greco, Acting Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Dayton Police Chief Kamran Afzal announced the charges. Assistant United States Attorney Erica Lunderman is representing the United States in this case. A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: St. Louis Area Doctor Sentenced to 70 Months in Prison

component: Drug Enforcement Administration (DEA)

body_text: ST. LOUIS – U.S. District Judge Henry E. Autrey on Monday sentenced a St. Louis, Missouri area doctor to 70 months in prison for two separate criminal cases, one charged in 2020 and one in 2024. Dr. Asim Muhammad Ali, 54, was also ordered to pay $1,845,916 in restitution for the 2020 case and $3,902 for the 2024 case. In the 2020 case, Dr. Ali was involved in a conspiracy to pay kickbacks for urine specimens referred for testing to one of the companies he owned, Central Diagnostic Laboratory. Dr. Ali also admitted signing prescriptions for controlled substances for patients who appeared to be selling or giving away their drugs. He also pre-signed prescriptions for controlled substances to be given to patients of one of his other businesses, the Institute for Pain Management LLC. Dr. Ali did not see the patients on the dates they received the prescriptions and rarely looked at patient charts or determined a legitimate medical need for the controlled substances. Judge Autrey ordered Dr. Ali and a number of his codefendants in that case to pay $950,381 to the Centers for Medicare and Medicaid Services, $13,993 to Tricare and $881,542 to Missouri Medicaid. In the 2024 case, Dr. Ali agreed to perform health care services for the Medicare patients of a company Dr. Mohd Azfar Malik owned, Psych Care Consultants LLC, but bill using Dr. Malik’s name and Medicare billing number. The doctors billed Medicare for “annual wellness visits,” a comprehensive yearly appointment, but Dr. Ali did not see them in person and simply called asked a series of questions. Medicare paid $3,902 for the fraudulent claims. Dr. Ali pleaded guilty in the 2020 case to one count of conspiracy to illegally distribute controlled substances, one count of illegally prescribing controlled substances, one count of paying illegal kickbacks for referrals and one count of a submitting false claims. He pleaded guilty in the 2024 case to one count of conspiracy to illegally distribute controlled substances and to maintain a drug-involved premises. Dr. Malik pleaded guilty to two counts of making false statements related to health care matters. He admitted submitting claims for payment to Medicare, Medicaid and private health insurers in which he falsely claimed to have performed in-person services when he was out of the state or the country. He admitted billing a private insurance company for the intravenous infusion of ketamine that was performed by Dr. Ali, knowing that Dr. Ali was under indictment and lacked a DEA registration authorizing him to administer controlled substances. Dr. Malik admitted causing a total loss of $19,442 to Medicare, Medicaid, and the private health care insurers. In August, Dr. Malik was sentenced to five years of probation, fined $20,000 and ordered to pay restitution of $19,442. He has also agreed to surrender his Drug Enforcement Administration registrations authorizing him to administer controlled substances. “Health care providers who unlawfully distribute dangerous and addictive controlled substances not only endanger the lives of vulnerable individuals but also undermine the integrity of our nation’s health care system. Dr. Ali exploited the trust placed in him by his patients and engaged in kickback schemes for personal financial gain,” said Linda T. Hanley, Special Agent in Charge with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Today’s sentencing highlights HHS-OIG’s commitment to working with our law enforcement partners to hold health care providers accountable for their unlawful actions.” The U.S. Department of Health and Human Services Office of Inspector General, the FBI, Drug Enforcement Administration and the Missouri Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Amy Sestric prosecuted the 2024 case and Assistant U.S. Attorneys Amy Sestric, Derek Wiseman and Jonathan Clow handled the 2020 case.


title: Owners of 1st Adult N Pediatric Healthcare Pled Guilty

component: USAO - Virginia, Western

body_text: LYNCHBURG, Va. – Two former owners of 1 st Adult N Pediatric Healthcare pled guilty today to conspiring with others to commit federal healthcare fraud. Kafomdi “Josephine” Okocha, 49, and Samuel Okocha, 52, both of Upper Marlboro, Maryland pled guilty today to conspiracy to commit health care fraud. At sentencing, both defendants face a penalty of up to 8 years in prison. The defendants were charged in March 2025 along with Carolyn Bryant-Taylor, 61, of Clinton, Maryland; Shekita Gore, a.k.a. Shekita Steele, 38, of Clinton, Maryland; Elizabeth Ilome, 41, of Stafford, Virginia; and Eno Utuk, 47, of Stafford, Virginia. Bryant-Taylor pled guilty last week to similar charges. All other defendants have pending charges. According to court documents, Bryant-Taylor, Josephine Okocha, and Samuel Okocha were owners and operators of 1st Adult N Pediatric Healthcare Service, a Medicaid-enrolled home health agency providing private duty nursing, personal care, and respite care services throughout the Commonwealth of Virginia, including in the Western District of Virginia. Gore was the director of nursing, while Utuk and Ilome were employed by 1st Adult to provide nursing and personal care. The defendants conspired to submit false claims to Medicaid for services that were not provided to patients, including falsifying records and documentation in support of the fraudulent claims submitted for reimbursement. As part of this scheme, between 2017 and 2023, Bryant-Taylor and her co-defendant, Josephine Okocha, planned arrangements to pay the parents or guardians of patients in exchange for blank, signed nursing notes which would be filled out and used to support billing to Medicaid. In these arrangements, the amount billed to Medicaid either reflected nursing services that were not provided at all, or an amount of nursing services that was in excess of what was provided. Robert N. Tracci, Acting United States Attorney for the Western District of Virginia, Virginia Attorney General Jason Miyares, and Acting Special Agent in Charge Stephen Farina of the FBI’s Richmond Division made the announcement. The Federal Bureau of Investigation and the Virginia Attorney General’s Medicaid Fraud Control Unit are investigating the case, with assistance from the United States Department of Health and Human Services. Assistant U.S. Attorneys Jonathan Jones and Laura Taylor, and Special Assistant U.S. Attorney Nicole Terry, a Senior Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.


title: Wilmington Restaurant Owner Pleads Guilty to Tax Evasion and Failure to Pay Employment Taxes on Behalf of Cash-paid Employees

component: USAO - Delaware

body_text: Wilmington, Del. – Domenico Mazzella, the owner and operator of a Wilmington restaurant, Mazzella’s Italian Restaurant, pleaded guilty in federal court to a multi-year scheme to evade taxes, announced Julianne E. Murray, U.S. Attorney for the District of Delaware. Mazzella pleaded guilty to four counts of tax evasion and twelve counts of failure to collect, account for, and pay over trust fund taxes. According to court documents and statements made in court, from at least 2017 through 2020, Mazzella defrauded the Internal Revenue Service (“IRS”). Mazzella failed to pay required employment taxes by paying a number of employees entirely in cash and concealing this cash payroll from his tax preparer. Mazzella also attempted to evade a substantial portion of his personal income tax by diverting over $600,000 from the business’s bank accounts to his personal account, falsely characterizing the payments as reimbursements for business expenses. Mazzella’s overstatement of expenses caused his tax preparer to underreport the restaurant’s income, which in turn caused Mazzella’s personal income to be substantially underreported on his tax returns. Mazzella has agreed to pay restitution to the IRS in the amount of $549,370.39, consisting of evaded income taxes and employment taxes. At sentencing, he faces a maximum of five years in prison for each of the 16 counts of conviction. The Court will determine Mazzella’s sentence after taking into account the U.S. Sentencing Guidelines and other factors required by federal law. “Domenico Mazzella’s actions were a deliberate attempt to cheat the American public and gain an unfair advantage over law-abiding businesses and citizens,” said U.S. Attorney Murray. “This plea demonstrates that our office, working with our law enforcement partners, will aggressively pursue those who willfully evade their tax obligations.” “IRS-Criminal Investigation takes these violations of law very seriously,” said Yury Kruty, Special Agent in Charge of the Philadelphia Field Office. “This plea exhibits a positive message to honest taxpayers and further demonstrates that the IRS and U.S. Attorney’s Office are duty bound to protect the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations." The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Bryan C. Williamson is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 25-113-GBW.


title: Former U.S. Postal Service Letter Carrier Sentenced to 5½ Years in Federal Prison for Stealing More Than $10 Million Worth of Checks from the Mail

component: USAO - California, Central

body_text: LOS ANGELES – A former United States Postal Service letter carrier from Orange County was sentenced today to 66 months in federal prison for stealing from the mail more than $10 million in Treasury and other checks over a four-year span. Rashad Deon Stolden, 34, of Huntington Beach, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $1,627,291 in restitution. Stolden pleaded guilty on April 14 to one count of conspiracy to commit bank fraud. Stolden worked at the Bicentennial Post Office, located in the Fairfax district of Los Angeles. According to his plea agreement and court documents previously filed in this case, from 2020 through August 2024, Stolden stole mail containing large value checks, as well as debit cards from the California Employment Development Department (EDD), which manages the state’s unemployment insurance program. Stolden worked alongside another letter carrier and friends, Charlie Green, 37, of the Wellington Heights area of East Los Angeles, who is scheduled for sentencing on September 14. Stolden and Green sold the checks they stole to co-conspirators who then used counterfeit identity documents to negotiate them. Stolden and his co-conspirators purchased the identifying information of victims so that they could activate their stolen EDD cards. In June 2022, Stolden stole a $7.3 million Treasury check. He then sold the check to a co-conspirator, who negotiated it at a bank in Tennessee, writing him, “I need you man,” “I’m trying to retire,” according to court documents. The co-conspirator was able to withdraw more than $1 million from the deposit of this check. Some of Stolden’s co-conspirators have been prosecuted in separate court proceedings. Both Stolden and Green remain free on $50,000 bond. “Nowhere in [Stolden’s] voluminous communications throughout this conspiracy did he express any empathy for his victims even as he stole their EDD cards containing their disability and unemployment benefits,” prosecutors argued in a sentencing memorandum. “[Stolden] seemed to think only of his own profits, trying to decide whether he should use his thefts to pay for a $13,000 hotel stay in Bora Bora, or if he should upgrade to a $20,000 stay in the Presidential Villa at the Conrad.” The United States Postal Service Office of Inspector General; the United States Postal Inspection Service; the U.S. Department of Treasury for Tax Administration; U.S. Customs and Border Protection; and the Coast Guard Investigative Services investigated this matter. Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.


title: Federal Indictment Charges Man with Illegally Possessing Loaded Machine Gun in Chicago Park

body_text: CHICAGO — A man has been indicted on a federal firearm charge for allegedly illegally possessing a loaded machine gun in a Chicago park. EDDIE ARGUELLES possessed the firearm on May 14, 2025, in Riis Park in the Belmont Cragin neighborhood of Chicago, according to an indictment returned Wednesday in U.S. District Court in Chicago and a criminal complaint previously filed in the case. The Glock handgun was equipped with a conversion device, also known as a “Glock switch” or “auto sear,” allowing the gun to fire multiple rounds with a single pull of the trigger. Chicago Police officers responded to the scene after receiving calls of a person with a gun firing a shot in the park, the charges allege. When officers approached Arguelles, he tried to drive away on a moped but lost control and fell to the ground on a football field in the park, the charges allege. The officers took Arguelles into custody and discovered the firearm in his possession, the charges allege. He remains detained without bond. The indictment charges Arguelles, 20, of Chicago, with one count of possession of a machine gun, which is punishable by a maximum sentence of ten years in federal prison. Arraignment is set for Sept. 17, 2025, at 11:30 a.m., before U.S. Magistrate Judge Maria Valdez. The U.S. Attorney’s Office will seek Arguelles’s continued pre-trial detention. 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, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Wesley Morrissette. The investigation is being conducted in coordination with ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes. 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. arguelles_indictment.pdf arguelles_complaint.pdf


title: Stockton Man Sentenced to over 15 Years in Prison for Methamphetamine and Heroin Trafficking

body_text: Charles Billingsley Jr., 55, of Stockton, was sentenced today by U.S. District Judge William B. Shubb to 15 years and eight months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, U.S. Attorney Eric Grant announced. According to court documents, between March and December 2019, Billingsley conspired with other members of a Stockton-based drug trafficking organization to distribute methamphetamine and heroin. Billingsley regularly obtained and distributed methamphetamine and heroin on behalf of the organization. On Dec. 5, 2019, law enforcement officers searched Billingsley’s two adjacent residences in Stockton and seized more than 1.5 pounds of methamphetamine, approximately 30 ounces of heroin, six ounces of cocaine, four loaded firearms, and more than $33,000 in cash. Agents also eradicated 451 marijuana plants that Billingsley was growing in one of the residences and seized more than 52 pounds of processed marijuana. This case was the product of an investigation by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, Homeland Security Investigations, IRS Criminal Investigation, the California Highway Patrol, and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney David W. Spencer prosecuted the case.


title: Laboratory CEO, Marketers, and Physicians to Pay Over $6M to Settle Allegations of Management Service Organization and other Lab Testing Kickbacks

body_text: One-time laboratory CEO Christopher Grottenthaler, formerly of Frisco, Texas, has agreed to pay $4.25 million to resolve False Claims Act litigation with the United States alleging illegal payments to doctors for laboratory referrals in violation of the Anti-Kickback Statute. Two physicians — Hong Davis, M.D., of Plano, Texas, and Elizabeth Seymour, M.D., of Denton, Texas — and seven marketers — Courtney Love, of Dallas, Texas, Stephen Kash, of Winnie, Texas, Laura Howard, of Lucas, Texas, Jeffrey Parnell, of Tyler, Texas, Stanley Jones, of San Antonio, Texas, Jordan Perkins, of Conroe, Texas, and Ruben Marioni, of Spring, Texas — have agreed to pay an additional $1,818,462 to settle the United States’ laboratory kickback allegations against them in the case. The settling parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes. With these settlements, the Department of Justice has secured over $59 million in civil False Claims Act settlements for kickbacks to healthcare providers disguised as managed service organization (MSO) investment distributions, including recoveries from 50 physicians. “The Department of Justice will continue to pursue and prioritize healthcare fraud, including redressing illegal kickbacks,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks to doctors can undermine medical decision-making, subject patients to wasteful medical treatments, and squander taxpayer money.” “These settlements reflect the firm commitment of the Eastern District of Texas to punish those who use fraudulent means to profit at the expense of federal healthcare programs funded by the hard-working taxpayers of the United States,” said Acting U.S. Attorney Jay R. Combs for the Eastern District of Texas. “We will continue to pursue those who steal from federal healthcare programs through these types of schemes to pay improper kickbacks to providers.” “Laboratory testing is an essential part of patient care, not a vehicle for greed and exploitation,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “In collaboration with our law enforcement partners, HHS-OIG will continue to investigate kickback schemes and false claims made to federal healthcare programs.” “The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the healthcare benefit program for military members, retirees, and their families,” said Acting Special Agent in Charge Chad Gosch of DCIS’s Southwest Field Office. “Decisions that prioritize financial gain over patient health erodes taxpayer trust and negatively affects military readiness. DCIS, alongside our law enforcement partners, will relentlessly pursue those who commit fraud and exploit this critical healthcare program.” The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. It seeks to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Christopher Grottenthaler, the former Chief Executive Officer of True Health Diagnostics, LLC (True Health), a laboratory in Frisco, Texas, agreed to pay $4.25 million to resolve allegations that he caused false claims for laboratory testing to Medicare, Medicaid, and TRICARE from January 2015 to May 2018. Grottenthaler allegedly agreed to a kickback scheme in which marketers, including True Health’s own employees, offered and paid doctors kickbacks disguised as MSO distributions to induce the doctors’ laboratory testing referrals. Grottenthaler allegedly facilitated True Health’s continued participation in the MSO kickback scheme after receiving warnings that the marketers “are a powder keg waiting to explode on us” and that “people are gonna go to prison.” The settlement also resolves allegations that Grottenthaler arranged for True Health to pay kickbacks disguised as consulting fees, processing and handling fees, and waivers of copayments and deductibles, to induce laboratory testing referrals. The settlement with Grottenthaler resolves certain allegations in a lawsuit originally filed by STF LLC under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The False Claims Act permits the United States to intervene in and take over the action, as it did here with respect to Grottenthaler. STF LLC, whose members are Christopher Riedel and Felice Gersh, M.D., will receive a $148,750 share of the Grottenthaler settlement. The United States also added claims to the lawsuit against additional defendants and some of those are resolved in the settlements announced today. The lawsuit, which continues as to other defendants, is captioned United States, et al. ex rel. STF LLC v. True Health Diagnostics LLC et al. , No. 4:16-cv-547 (E.D. Tex.). The settlements announced today resolve the United States’ allegations in the lawsuit that two physicians took kickbacks in violation of the Anti-Kickback Statute from laboratory marketers’ purported MSOs in return for laboratory testing referrals. Dr. Hong Davis agreed to pay $124,627 to resolve allegations that from October 2015 to March 2017, she received thousands of dollars in payments from two purported MSOs, Ascend MSO of TX LLC (Ascend MSO) and Herculis MG LLC, in return for ordering laboratory tests from Little River Healthcare (Little River), a critical access hospital in Rockdale, Texas, and Boston Heart Diagnostics Corporation (Boston Heart), a clinical laboratory in Framingham, Massachusetts. Dr. Elizabeth Seymour agreed to pay $234,215 to resolve allegations that from April 2016 to January 2018, she received thousands of dollars in payments from two purported MSOs, Ascend MSO and Eridanus MG LLC, in return for ordering laboratory tests from Little River, True Health, and Boston Heart. The civil settlement amounts that Drs. Davis and Seymour agreed to pay are in addition to amounts they were ordered to pay in a criminal proceeding captioned United States v. Susan Hertzberg, et al. , No. 6:22-cr-3-JDK (E.D. Tex.). Lastly, the following seven marketers and their associated entities agreed to pay a total of $1,459,620 to resolve the United States’ allegations in the civil litigation that they paid kickbacks disguised as MSO payments to doctors to induce the doctors’ laboratory testing referrals: Former True Health Account Executive Courtney Love; former True Health Director of Strategic Accounts Stephen Kash; former Boston Heart Area Sales Manager Laura Howard; former Boston Heart sales representative Jeffrey Parnell; Stanley Jones, part-owner with Parnell of Texas marketing company LGRB Management Services LLC; and Jordan Perkins and Ruben Marioni, co-owners of Texas marketing company Next Level Healthcare Consultants LLC. The settlement amounts for Kash and Howard were based on their ability to pay. The civil settlement amounts for Kash, Howard, Parnell, and Perkins are in addition to amounts they were ordered to pay in criminal proceedings captioned United States v. Susan Hertzberg, et al. , No. 6:22-cr-3-JDK (E.D. Tex.), and/or United States v. Christopher Grottenthaler, et al. , No. 6:22-cr-135-JDK (E.D. Tex.). The settlements announced today were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas, with assistance from HHS-OIG and DCIS. They were handled by Trial Attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham and Betty Young for the Eastern District of Texas. The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlements are allegations only, and there has been no determination of civil liability.


title: Harrison County Man Sentenced for Insurance Fraud

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Jessie Levi Pumphrey, age 31, of Clarksburg, West Virginia, was sentenced today to 92 months in federal prison for filing false insurance claims. According to court documents and statements made in court, Pumphrey worked with others to stage vehicle accidents in Preston County. Pumphrey and others then submitted false insurance claims for property damage and medical bills that were fraudulent. Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia Offices of the Insurance Commissioner – Office of Inspector General investigated. Chief U.S. District Judge Thomas S. Kleeh presided.