title: Romanian Men Indicted For  Access Device Fraud

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that ANDREI FAGARAS (“FAGARAS”) , age 35, and TAMAS KOLOZSVARI (“ KOLOZSVARI “), age 30, Romanian nationals, were indicted on January 31, 2025 on three counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(4). According to court documents, on November 13, 2024 and November 14, 2024, FAGARAS and KOLOZSVARI possessed device-making equipment, namely credit/debit card skimmers, at three locations in the Eastern District of Louisiana. If convicted, FAGARAS and KOLOZSVARI face up to fifteen years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100, as to each count. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The case was investigated by Special Agents of the United States Department of Agriculture – Office of Inspector General; the Jefferson Parish Sheriff’s Office; the St. Bernard Parish Sheriff’s Office; and the New Orleans Police Department. Assistant United States Attorney Christine M. Calogero of the General Crimes Unit is handling the prosecution.


title: Shakopee Woman Pleads Guilty in $250 Million Feeding Our Future Fraud Scheme

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Shakopee woman pleaded guilty for her role in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick. According to court documents, at times between October 2020 and January 2022, Mekfira Hussein knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions in federal child nutrition funds. Specifically, Hussein and her husband, Abduljabar Hussein, fraudulently obtained millions of dollars in federal child nutrition program funds by falsely claiming to have served meals to thousands of children per day. According to court documents, in October 2020, the defendant enrolled her non-profit, Shamsia Hopes, in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future, at the direction of one of its employees, Abdikerm Eidleh. The defendant submitted her application to Aimee Bock, Feeding Our Future’s executive director. In December 2020, and also at the direction of Abdikerm Eidleh, the defendant’s husband registered his company, Oromia Feeds LLC, with the State of Minnesota as a food vendor. Abduljabar Hussein’s company, Oromia Feeds, had a contract to prepare meals to be served by Shamsia Hopes sites run by Mekfira Hussein. According to the plea agreement entered today, Hussein submitted fraudulently inflated invoices for reimbursement—including inflated meal counts and false attendance rosters. As part of their scheme, the defendant and her husband paid at least $140,000 in kickbacks to Eidleh and least $12,000 in kickbacks to Aimee Bock. In some instances, these kickback payments were disguised as “consulting fees,” when, in fact, neither Eidleh nor Aimee Bock provided any service to justify these payments. In other instances, Feeding Our Future billed hundreds of thousands of dollars in Federal Child Nutrition Program claims under the name of the defendant’s organization, Shamsia Hopes, without the defendant’s knowledge or authorization, and Feeding Our Future siphoned those funds to others involved in the conspiracy. Throughout the fraudulent conspiracy, the Husseins obtained up to $8.8 million in federal child nutrition program funds some of which they used to pay for personal expenditures unrelated to feeing children. For instance, the defendant and her husband used $173,438 of their proceeds to pay off the mortgage on their home in Shakopee, Minnesota, and also purchased a 2021 Porsche for $93,250, a 2022 GMC truck for $61,722. Hussein pleaded guilty last Friday in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to commit wire fraud. Her sentencing hearing will be scheduled at a later date. The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.


title: Lackawanna County Woman Sentenced To 27 Years’ Imprisonment For Production Of Child Pornography

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Julia K. Munley, sentenced Mykayliah Hevener, age 26, of Carbondale, Pennsylvania, on January 30, 2025, to 27 years in prison for her production of child pornography. According to Acting United States Attorney John C. Gurganus, for an approximate nine-month period in 2023, Hevener engaged in sexual contact with a toddler and used the toddler to create images and videos of child pornography which were either viewed live or sent over the internet to a co-conspirator, Benjamin Egli, of Iowa. Mr. Egli is being prosecuted by the United States Attorney’s Office for the Northern District of Iowa. He has entered a guilty plea and awaits sentencing in that matter. The case was investigated by the Federal Bureau of Investigation (F.B.I.) and the Tipton, Iowa Police Department. Assistant U.S. Attorney Luisa Honora Berti prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. # # #


title: Mexican National Arrested For Illegal Reentry Into The United States

component: USAO - Florida, Middle

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the filing of a criminal complaint charging Antonio Candia-Bautista (45, Mexico) with illegal reentry into the United States by a previously deported alien. If convicted, Candia-Bautista faces a maximum penalty of two years in federal prison. According to the complaint, Candia-Bautista was deported from the United States on October 4, 2016. At some time thereafter, he unlawfully reentered the United States. He was recently arrested during a state investigation into an automobile accident in Sumter County on January 28, 2025. A records check confirmed that Candia-Bautista was a citizen of Mexico with no lawful permission to be present in the United States. A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the United States Border Patrol. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.


title: Palm Beach County drug dealer sentenced to 10 years in prison for distributing fentanyl

component: USAO - Florida, Southern

body_text: MIAMI – On Jan. 30, a federal district judge in West Palm Beach, Florida sentenced Anthony Raul Del Valle, 29, of Lake Worth Beach, Florida, to 120 months in federal prison. The sentence comes after a federal jury found Del Valle guilty of distributing acetyl fentanyl and fentanyl and possessing a firearm in furtherance of a drug trafficking crime in November 2024. On April 8, 2024, Del Valle distributed pills that appeared to be oxycodone, but in fact were fentanyl and acetyl fentanyl, to three family members in Lantana, Florida. All three family members immediately ingested the pills after the distribution. Two of the family members died less than two hours after the distribution. On April 10, 2024, law enforcement agents identified and arrested Del Valle as the source of the pills after conducting a controlled purchase from Del Valle. Law enforcement agents recovered a loaded firearm from Del Valle during the arrest. U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, announced the sentence. The DEA, Miami Field Division investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, Lantana Police Department, Boynton Beach Police Department and Palm Beach County Sheriff’s Office. Assistant United States Attorneys Shannon O’Shea Darsch and Alexandra Chase prosecuted it. According to the DEA’s National Drug Threat Assessment , synthetic drugs, such as fentanyl, are poisoning our nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (CDC), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida. For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx ; https://www.cdc.gov/opioids/basics/fentanyl.html# ; and https://www.dea.gov/factsheets/fentanyl . You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 24-cr-80062. ###


title: Dominican National Charged With False Statement To Federally Licensed Firearms Dealer

body_text: Orlando, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Eugenio Gonzalez-Paredes (53, Dominican Republic) with making a false statement to a federally licensed firearms dealer. If convicted, Gonzalez-Paredes faces a maximum penalty of 5 years in federal prison. According to the indictment, Gonzalez-Paredes made a false statement on a Bureau of Alcohol, Tobacco, Firearms and Explosives Form 4473 stating that he had not previously been convicted of a crime punishable by more than a year in prison. At the time Gonzalez-Paredes made the statement, he had previously been convicted twice in the United States District Court in the District of Puerto Rico for illegal reentry by a previously deported alien. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Megan Testerman. 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: Convicted Felon Sentenced To 7 Years For Possession Of Firearm

body_text: Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Sherron Gary (41, Tampa) to seven years in federal prison for possessing a firearm and ammunition as a convicted felon. Gary pleaded guilty in October 2024. According to court documents, on April 9, 2023, officers with the Tampa Police Department (TPD) attempted a traffic stop on a vehicle driven by Gary after observing the vehicle had a broken taillight. Gary failed to pull over and instead fled from the officers at a high rate of speed. A police helicopter followed Gary. After Gary’s vehicle was boxed in by law enforcement, Gary fled from the officers on foot, which the helicopter was also able to capture. As Gary fled, the helicopter crew observed Gary discard an item as he was running that resembled a firearm. TPD officers apprehended Gary. After the arrest, the helicopter crew directed officers back to the location where they had observed Gary discard the firearm. Officers located a 9mm Walther Creed semiautomatic pistol at the location. At the time, Gary had four prior felony convictions, including aggravated battery and armed burglary of a dwelling, trafficking of cocaine, delivery of cocaine, and delivery of cocaine within 1,000 feet of church. As a convicted felon, Gary is prohibited from possessing firearms or ammunition under federal law. This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky. 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: Lakeland Man Sentenced To 12 Years In Prison For Trafficking Fentanyl And Methamphetamine

body_text: Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington has sentenced Jermaine Jerome Campbell (35, Lakeland) to 12 years in federal prison for possessing with the intent to distribute fentanyl and methamphetamine. Campbell pleaded guilty on June 25, 2024. According to court documents, on September 15, 2023, Campbell distributed fentanyl pills to another individual from his mother’s residence. Upon searching Campbell’s home on September 21, 2023, law enforcement recovered bulk quantities of methamphetamine hidden inside of a tool bag. This case was investigated by the Federal Bureau of Investigation and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney David Pardo. 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: Honduran National Indicted For Illegal Reentry Into The United States

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Alex Rafael Gonzalez-Morales (35, Honduras) with illegal reentry by a deported alien. If convicted, Gonzalez-Morales faces a maximum penalty of 10 years in federal prison. His trial is set for March 3, 2025. According to the indictment, Gonzalez-Morales was previously convicted of of unlawful reentry of a removed alien and was subsequently removed from the United States in November 2019. Following his removal, Gonzalez-Morales did not receive the consent of the Attorney General or the Secretary of Homeland Security to reapply for admission to the United States. On or about January 14, 2025, Gonzalez-Morales was found to be voluntarily in the United States. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case is being investigated by Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) Miami – Jacksonville sub-office It is being prosecuted by Assistant United States Attorney Rachel Lasry.


title: Lake County Man Indicted For Attempting To Entice A Minor To Engage In Sexual Activity

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jared Menendez (25, Fruitland Park) with attempted enticement of a minor to engage in sexual activity and attempted transfer of obscene material to a minor. If convicted of the attempted enticement offense, Menendez faces a minimum sentence of 10 years, up to life, in federal prison. The attempted transfer of obscene material offense carries a maximum sentence of 10 years’ imprisonment. Menendez is currently detained pending the resolution of the case. According to the indictment, between November 14 and December 20, 2024, Menendez attempted to persuade, induce, entice, and coerce an individual whom he believed had not yet attained 18 years of age to engage in sexual activity. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by Homeland Security Investigations and the Marion County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Federal Inmate Pleads Guilty To Possession Of Methamphetamine With The Intent To Distribute

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces that Jessie Wooden (36, Miami) has pleaded guilty to possession with the intent to distribute 50 grams or more of methamphetamine. Wooden faces a minimum of 10 years, up to life, in federal prison. A sentencing date has not yet been set. According to court records, on March 10, 2024, Wooden was an inmate at the Coleman Federal Correctional Complex (FCC Coleman) in Sumter County. During a visitation session, surveillance footage captured Wooden being thrown a bag containing contraband that had been smuggled into the prison. Correctional officers confiscated the bag, which contained 78 grams of methamphetamine. When interviewed by law enforcement, Wooden admitted to having visitors bring contraband into the prison for him. He also confirmed that he was going to distribute the methamphetamine inside FCC Coleman. This case is being prosecuted as part of a United States Department of Justice task force aimed at rooting out contraband and misconduct in the Federal Bureau of Prisons. The task force was led by the Federal Bureau of Prisons and the Department of Justice Office of the Inspector General, with support from the Federal Bureau of Investigation, the Drug Enforcement Administration, and the United States Attorney’s Office for the Middle District of Florida. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.


title: Bookkeeper Sentenced To Prison For Stealing More Than $1.6 Million From Two Small Businesses

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Marc Weiss, 50, of Charlotte, was sentenced today to 40 months in prison followed by three years of supervised release for embezzling approximately $1.6 million from two small businesses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Weiss was ordered to pay restitution in the amount of $1,644,235.77. Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement. According to filed court documents and the sentencing hearing, from 2016 to 2022, Weiss engaged in a scheme to defraud two Mooresville, N.C. small businesses that employed him as a bookkeeper. Over the course of the scheme, Weiss, who was a trusted employee, abused his position and access to the companies’ financial accounts to make more than 100 fraudulent transfers totaling $1.6 million from the companies’ accounts into bank accounts under Weiss’s control. Court documents show that Weiss began to embezzle from the second company while he was already stealing from the first one. To disguise the fraud, Weiss created fake entries in the victim companies’ books and records, categorizing the fraudulent transfers as payments to existing vendors for software development, and advertising and marketing expenses. According to court records, Weiss used the embezzled funds, in part, to pay for his personal lifestyle, including rent payments for a luxury apartment uptown; payments for high-end vehicles, including an Audi and a Mercedes-Benz; purchases at luxury retail stores, including Luis Vuitton, Gucci, Neiman Marcus, and Tiffany, among others; and luxury vacations, including multiple stays in The Ritz Carlton hotel. In October 2023, Weiss pleaded guilty to wire fraud. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and the Iredell County Sheriff’s Office for their investigation of the case. Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.


title: Hartford Substance Abuse Counselor Sentenced to 27 Months in Prison for Health Care Fraud Schemes

component: USAO - Connecticut

body_text: Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that on January 31, 2025, THELMA “WENDY” EPPS, 60, of Hartford, was sentenced by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for health care fraud. According to court documents and statements made in court, Epps was a Licensed Alcohol and Drug Abuse Counselor (LADC) with an office located at 330 Main Street in Hartford. In April 2013, she enrolled as a participating provider in the Connecticut Medicaid program along with an entity affiliated with Epps called Miracles to Destiny LLC . In July 2018, the Medicaid program suspended Epps from participating as a provider in the program based on a finding of a credible allegation of fraud. Medicaid told Epps that any attempt to circumvent her suspension by submitting claims for services performed by Epps or Miracles to Destiny LLC through other agencies or other billing numbers would result in termination of her provider agreement. In 2019, Epps entered into an agreement with Dennis Tomczak, a Connecticut LADC who was a participating provider in Medicaid. Epps and Tomczak agreed that Tomczak would bill Medicaid using his Medicaid provider number for psychotherapy counseling services purportedly provided by Epps. These claims falsely represented that Tomczak had personally provided the services. In return for Tomczak billing the services, Epps agreed to pay Tomczak 25 percent of the amount Medicaid paid Tomczak. Between approximately April 2019 and November 2022, Medicaid paid Tomczak $330,547.71 for fraudulent claims for services purportedly provided by Epps that were billed under Tomczak’s provider number. At some point during their scheme, Tomczak expressed concerns to Epps about the number and frequency of services that Epps told Tomczak she was providing. At about this time, Epps entered into a similar agreement with Shawn Tyson, a LADC in Connecticut, whereby Tyson would use his Medicaid provider number to submit claims to Medicaid for services Epps purportedly provided to Medicaid clients. In November 2019, Epps assisted Tyson with the process of enrolling Tyson as a participating provider in Medicaid. Tyson’s provider application listed the location at which Tyson would provide services as 330 Main Street, Third Floor, in Hartford, the location of Epps’s and Miracles to Destiny LLC ’s office. Once Tyson was enrolled as a Medicaid provider, Tyson provided Epps with his login information to the online portal for submitting claims to Medicaid, which Epps then used to submit claims. For a brief period before Tyson was enrolled as a Medicaid provider, unbeknownst to Tomczak, Epps submitted claims through Tomczak’s provider number for services purportedly provided by Tyson, by representing to Tomczak that she had performed these services. Medicaid paid Tomczak a total of $7,879.40 for these services. During the scheme involving Epps and Tyson, Tyson would provide Epps the names of Medicaid patients and dates that Tyson purportedly provided psychotherapy counseling services to the patients, and Epps would then bill Medicaid for these services using Tyson’s provider number. Epps would also submit claims using Tyson’s provider number for services she purportedly provided to Medicaid patients. These claims falsely represented that Tyson had personally provided the services to the patients. Epps and Tyson submitted and caused to be submitted claims for hundreds of thousands of dollars of psychotherapy services that neither Epps nor Tyson had actually provided to Medicaid clients. When Epps warned Tyson that he should not bill Medicaid for having provided psychotherapy to patients on holidays, such as July 4 and Thanksgiving, Tyson would typically change the dates of services and resubmit the list of services to Epps. Medicaid paid Tyson $663,081.32 for claims that falsely represented that Tyson had personally provided services, or falsely represented that services had been provided when, in fact, they were not provided at all. Judge Dooley ordered Epps to pay $1,001,058.43 in restitution to the Connecticut Medicaid program. On November 8, 2024, Epps pleaded guilty to health care fraud. Epps, who is released on a $50,000 bond, is required to report to prion on March 3. Tomczak and Tyson pleaded guilty to related charges and await sentencing. This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel. The U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.


title: Serial Fraudster Sentenced to Ten Years in Federal Prison for Stealing Nearly $3 Million and Five Indianapolis Homes

component: Federal Bureau of Investigation (FBI)

body_text: EVANSVILLE— James Henley, 35, of Greenwood, Indiana, has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution. According to court documents, over the course of three years, Henley orchestrated multiple large and complex fraud schemes, resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments. As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for most of them. None of the businesses were legitimate. Instead, Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money. Henley’s schemes are broken down as follows: COVID-19 Fraud: Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications. In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801. Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty. Home Title Fraud: Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners. Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits. Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville. With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes. For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house. Mortgage Fraud: In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank. In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds. Auto Loan Fraud: In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union. In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal. Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account. The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds. The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account. Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans. Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud. “James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.” "James Henley filed fraudulent unemployment insurance (UI) claims in the names of identity theft victims in order to receive UI benefits to which he was not entitled. He enriched himself by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic," said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. "We and our law enforcement partners are committed to protecting the integrity of the UI system from those who seek to exploit this critical benefit program." “This lengthy prison sentence sends a clear message: individuals who attempt to exploit and commit financial crime and identity theft will be brought to justice,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation and our fellow law enforcement partners are committed to protecting the integrity of our financial institutions and will continue to hold criminals like James Henley accountable to the fullest extent of the law.” "This case should serve as a powerful reminder that individuals with a history of financial crimes will face significant consequences when they demonstrate a blatant disregard for the law and continue to exploit and deceive others for personal gain,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI, working alongside our law enforcement partners, will continue to hold those who perpetuate such offenses accountable and protect the public from those who manipulate the system for their own benefit.” The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman. Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Matthew Miller, who prosecuted this case. On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form ###


title: Canadian Man Charged in $65M Cryptocurrency Hacking Schemes

component: Criminal Division

body_text: Note : View the indictment here . A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors. According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless. Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme. Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement. IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation. Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Monaca Resident Pleads Guilty to Charges of Sexual Exploitation of Minors and Obstructing Justice

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Monaca, Pennsylvania, pleaded guilty in federal court to charges related to the sexual exploitation of minors and obstructing justice, Acting United States Attorney Troy Rivetti announced today. Nicholas Sittig, 28, pleaded guilty on January 30, 2025, to two counts before United States District Judge William S. Stickman IV. In connection with the guilty plea, the Court was advised that, from in and around August 2023 until in and around April 2024, Sittig employed, used, persuaded, induced, enticed, and coerced a minor, who resided in California, to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In and around December 2023, when Sittig became aware that federal law enforcement officers were investigating him, Sittig induced the minor to aid him in destroying records and documents related to his sexual offenses against the minor—namely, his contact information within the minor’s cellular telephone and Snapchat messages between himself and the minor—with the intent to impede, obstruct, and influence the investigation. The Court was further advised that agents with Homeland Security Investigations had identified a second minor, residing in the Eastern District of Pennsylvania, whom Sittig similarly exploited online from December 2023 through March 2024. Judge Stickman scheduled sentencing for June 5, 2025. The law provides for a total sentence of not less than 15 years and up to 50 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 offenses and the prior criminal history, if any, of the defendant. Pending sentencing, the defendant remains detained. Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government. Homeland Security Investigations-Pittsburgh, the U.S. Postal Inspection Service (San Francisco and Pittsburgh), the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Monaca Police Department conducted the investigation that led to the prosecution of Sittig. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Russellton Resident Charged with Sexual Exploitation of Minor

body_text: PITTSBURGH, Pa. – A resident of Russellton, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal law regarding the sexual exploitation of minors, Acting United States Attorney Troy Rivetti announced today. The two-count Indictment named Michael Rearick, 43, as the sole defendant. According to the Indictment, from April 21, 2023, until April 23, 2023, Rearick traveled and transported a minor from the Commonwealth of Pennsylvania to Canada, with the intent that the minor engage in criminal activity and illicit sexual activity. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government. Homeland Security Investigations-Pittsburgh, the Pennsylvania Office of Attorney General, and the West Deer Township Police Department conducted the investigation leading to the Indictment. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Methamphetamine Trafficker Is Sentenced To More Than 12 Years In Prison

body_text: CHARLOTTE, N.C. – Jesus Manual Hernandez, 33, of Charlotte, was sentenced today to 151 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. According to court documents and court proceedings, from March 2021 to September 2022, Hernandez and his co-defendant, Wilber Guadalupe Baldenebro Medina, engaged in conspiracy to distribute methamphetamine in the greater Charlotte area. Court documents show that during the investigation into Hernandez’s drug distribution activities, law enforcement utilized confidential human sources to purchase more than 2.2 kilograms of methamphetamine. In addition to distributing methamphetamine in Charlotte, court records indicate that Hernandez organized the distribution of 190 grams of fentanyl pills and 198 grams of powder fentanyl in Montgomery, Alabama. On November 30, 2023, Hernandez pleaded guilty to methamphetamine trafficking conspiracy and distribution of methamphetamine. He remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. On September 27, 2023, Medina was sentenced to 15 years in prison after pleading guilty to conspiracy to traffic methamphetamine and distribution of methamphetamine. In making today’s announcement, U.S. Attorney King commended the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of this Organized Crime Drug Enforcement Task Force (OCDETF) operation. 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 https://www.justice.gov/OCDETF . Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.


title: Spencer, Iowa Man Sentenced to 17 Years in Federal Prison for Meth and Gun Convictions

component: USAO - Iowa, Northern

body_text: Oscar Navarro-Zepeda, 43, from Spencer, Iowa, was sentenced on January 31, 2025, to 204 months’ imprisonment. Navarro-Zepeda was convicted by a jury on August 22, 2024, after a 3 ½ day trial in federal court in Sioux City. Navarro-Zepeda was convicted of conspiracy to distribute methamphetamine; possession with intent to distribute methamphetamine; possession of firearm by prohibited person; and possession of a firearm in furtherance of a drug trafficking crime. Evidence at the trial showed that between April 2021 and April 2023, in the Northern District of Iowa and elsewhere Navarro-Zepeda was involved in a conspiracy that distributed more than 31 kilograms of methamphetamine. Evidence also showed that on April 18, 2023, during a search warrant at Navarro-Zepeda’s residence in Spencer, Iowa, law enforcement seized approximately 33 pounds of methamphetamine in separate one-pound packages, which he intended to distribute to others in the Spencer, Iowa, area. Officers also seized $17,932; an AR-15 style .223 caliber rifle, two loaded magazines, other .223 ammunition, as well as various items of drug distribution and use paraphernalia. Navarro-Zepeda was prohibited from possessing firearms and possessed a firearm in furtherance of his drug trafficking, to protect himself, his drugs and drug proceeds from others. Sentencing was held before United States District Court Judge Leonard T. Strand. Navarro-Zepeda was sentenced to 204 months’ imprisonment and must serve a term of five years of supervised release following imprisonment. There is no parole in the federal system. Navarro-Zepeda remains in custody of the United States Marshal until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-4029. Follow us on X @USAO_NDIA.


title: Second Defendant to Federal Prison for Webster County Firearm Thefts

body_text: A woman who stole firearms during two burglaries she committed with a wanted fugitive was sentenced on January 31, 2025, to more than four years in federal prison. Madison Diane Kidd, age 26, from Stratford, Iowa, received the prison term after an August 16, 2024 guilty plea to possession of firearms and ammunition by a prohibited person. Information from a plea agreement showed that in late 2022 and early 2023, Kidd harbored Michael Ackerson, a federal fugitive who had a warrant for his arrest, at her residence in Stratford. On January 11, and January 13, 2023, Kidd and Ackerson burglarized two homes on Brushy Creek Road in Webster County, Iowa. During these burglaries, they stole five firearms, a safe containing coins and jewelry, and a compound bow, among other items. Kidd hid four of the stolen firearms and the stolen bow in a crawl space in her residence in Stratford. On January 25, 2023, law enforcement officers searched Kidd’s home. During the search, they located and arrested Ackerson. They also found the firearms, the bow, other property stolen during the burglaries, methamphetamine, and drug paraphernalia. In January 2023, Kidd was a methamphetamine user who had at least three prior felony convictions. After Ackerson’s arrest, Kidd and Ackerson discussed who would take responsibility for the firearms on recorded jail calls. Ackerson gave Kidd login information for a Google account, and Kidd logged into the account, changed the password, and deleted information from the account to conceal evidence of their crimes. On December 6, 2023, Ackerson was sentenced to 100 months’ imprisonment after he pled guilty to escape from custody and possession of firearms by a felon. Kidd was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Kidd was sentenced to 57 months’ imprisonment. She was ordered to make $865.34 in restitution to the victims. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This case is part of 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. Kidd is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the United States Marshals Service, the Webster County Sheriff’s Office, the Iowa Division of Criminal Investigation, the Iowa Division of Narcotics Enforcement, and the Hamilton County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-3021. Follow us on X @USAO_NDIA.


title: Canadian National Charged With Stealing Approximately $65 Million in Cryptocurrency From Two DeFi Protocols

component: USAO - New York, Eastern

body_text: An indictment was unsealed today in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains. Medjedovic is also charged with laundering the proceeds of the theft. He is currently at large. John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment. “As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham. “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets. Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.” Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation. “This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis. “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red. In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.” “Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They're stealing money that isn't theirs, and they're breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they're untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy. “These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker. “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.” KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other. The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency. As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools. The KyberSwap Exploit As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol. KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools. In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools. Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains. Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol. Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen. Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency. The Indexed Finance Exploit As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol. Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance. Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users. In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools. Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process. He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools. Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer. Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.” The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance. Valuable assistance was provided by the Justice Department’s Office of International Affairs. The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office. The Defendant : ANDEAN MEDJEDOVIC Age: 22 Canada E.D.N.Y. Docket No. 24-CR-529 (NGG) 24-cr-529_andean_medjedvovic_indictmenrt.pdf


title: New York Man Arrested in Dallas Airport on Healthcare Fraud Charges

component: Criminal - Criminal Fraud Section

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that ROBERT LAKE (“ LAKE ”), age 62, a resident of East Rockaway, New York, was arrested in the Dallas Fort Worth International Airport, after disembarking from an international flight, after being previously indicted for federal healthcare fraud. LAKE had been indicted on October 18, 2025 for one count of conspiracy to commit healthcare fraud, in violation of 18 U.S.C. §§ 1347 and 1349, and three counts of healthcare fraud, in violation of 18 U.S.C. § 1347. According to the indictment, LAKE was a licensed prosthetist and orthotist who operated his own durable medical equipment (“DME”) supply companies, TRISETO and ORTHO WORKS. From 2017 to around July 2019, LAKE purchased doctors’ orders for medically unnecessary orthotic braces and submitted claims to Medicare. After Medicare revoked TRISETO’s enrollment in the program in July 2019, LAKE shifted to selling doctors’ orders through his marketing company, CRANIAL SCIENTIFIC, in exchange for kickbacks. The doctors’ orders were medically unnecessary and, at times, manipulated at LAKE’s direction. LAKE is charged with conspiring with others, including Houma resident, Patrick Haydel. Haydel had previously pled guilty to his role in this same fraudulent scheme. Haydel and LAKE later learned that several physicians complained that they never signed the orders sold by LAKE , and further that Medicare beneficiaries and their caregivers, complained they neither requested nor needed the DME they received. After the government executed a search warrant on Haydel’s business, LAKE transferred over $2 million to a Philippine account. In total, LAKE and Haydel submitted more than $17 million in fraudulent DME claims to Medicare, for which Medicare reimbursed them more than $8 million. As to each count, LAKE faces up to ten years in prison, followed by up to three years of supervised release after release from prison, a fine of up to $250,000, or twice the gross gain to LAKE or the gross loss to any victims, and a mandatory $100 special assessment fee. U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. U.S. Attorney Evans praised the work of the Health and Human Services Office of Inspector General. Trial Attorney Kelly Walters of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nicholas Moses, Healthcare Fraud Coordinator for the Eastern District of Louisiana, are prosecuting the case.


title: Bradford County Man Sentenced To 132 Months In Prison For Distribution Of Methamphetamine

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert M. Lutz, age 42, of Bradford County, Pennsylvania, was sentenced on January 31, 2025, to 132 months’ imprisonment by United States District Court Chief Judge Matthew W. Brann for distribution of a controlled substance, specifically, 50 grams and more of crystal methamphetamine. According to Acting United States Attorney John C. Gurganus, beginning sometime in September of 2019 and continuing through February of 2020, Lutz, along with two indicted co-conspirators, engaged in a drug distribution conspiracy that involved the importation and distribution of methamphetamine in Bradford, Columbia, and Lackawanna counties. On at least two occasions, the Federal Bureau of Investigation conducted controlled purchases of crystal methamphetamine from Lutz in exchange for approximately $4,000 dollars. Laboratory testing of that methamphetamine revealed that it was between 93 and 96 percent pure. The case was investigated by the Federal Bureau of Investigation and Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case. The maximum penalty under federal law for this offense is a term of life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. # # #


title: Naples Man Sentenced To 9 Years In Federal Prison For Trafficking Fentanyl And Methamphetamine

body_text: Fort Myers, Florida – United States District Judge Sheri Polster Chappell has sentenced Jadyn Howard Loman (22, Naples) to 9 years in federal prison for possession with the intent to distribute methamphetamine and fentanyl and possessing firearms in furtherance of a drug trafficking crime. Loman entered a guilty plea on October 30, 2024. According to court documents, deputies from the Collier County Sheriff’s Office attempted to conduct a traffic stop on Loman after he failed to stop at a stop sign at the intersection of 20 th Place Southwest and 41 st Street Southwest in Naples. A subsequent chase ensued with Loman driving in excess of 100 miles per hour - eventually crashing his vehicle. Loman then fled the crash scene on foot before being apprehended. Inside his vehicle, deputies located 2 handguns, ammunition, and various baggies containing fentanyl, cocaine, and methamphetamine. This case was investigated by the Collier County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Patrick L. Darcey. 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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Oviedo Man Sentenced To Over Five Years For Receiving And Possessing Child Sexual Abuse Material

body_text: Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Carl Vecchione (62, Oviedo) to five years and nine months in federal prison for receiving and possessing child sexual abuse material (CSAM). Vecchione pleaded guilty on August 12, 2024. According to the plea agreement, on June 9, 2022, HSI executed a search warrant at Vecchione’s home after determining that the residence’s IP address was sharing CSAM online. Agents located more than 900 images and videos of CSAM on Vecchione’s laptop. This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Stephanie A. McNeff. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Former Member of Congress Pleads Guilty to Wire Fraud Schemes

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Former member of the U.S. House of Representatives Terrance John “TJ” Cox, 61, of Fresno, pleaded guilty today to one count of wire fraud and one count of wire fraud affecting a financial institution, Acting U.S. Attorney Michele Beckwith announced. According to court documents, Cox perpetrated fraud schemes targeting companies he was affiliated with. Cox created unauthorized off-the-books bank accounts and diverted client and company money into those accounts through false representations, pretenses and promises. From 2013 to 2018, across two different fraud schemes, Cox illicitly obtained client payments and company loans and investments that he solicited and then stole. In addition, Cox fraudulently obtained a $1.5 million construction loan to develop the recreation area in Fresno known as Granite Park. Cox and his business partner’s nonprofit could not qualify for the construction loan without a financially viable party guaranteeing the loan. Cox falsely represented that one of his affiliated companies would guarantee the loan and submitted a fabricated board resolution that falsely stated that at a meeting on a given date, all company owners agreed to guarantee the Granite Park loan. No meeting took place, and the other owners did not agree to back the loan. The loan later went into default. This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Jeffrey A. Spivak are prosecuting the case. Cox is scheduled to be sentenced on June 2, 2025. Cox faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will 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. cox_plea_agreement.pdf


title: New Orleans Man Sentenced for Federal Drug and Weapons Offenses

body_text: NEW ORLEANS, LOUISIANA –KENDRICK WILLIAMS (“WILLIAMS”) , age 20, was sentenced on January 27, 2025 by U.S. District Judge Jay C. Zainey to 90 months in prison followed by five years of supervised release, along with a $300 mandatory special assessment fee, after previously pleading guilty to possession with intent to distribute tapentadol and possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). According to court documents, WILLIAMS advertised the sale of tapentadol and marijuana on social media. Law enforcement officers executed two search warrants at WILLIAMS’s residence and recovered over 800 tapentadol pills, one pound of marijuana, two Glock handguns, a Glock Model 23, .40 caliber semi-automatic pistol and a Glock Model 19x, 9mm caliber semi-automatic pistol, with extended magazines, and over $9,000 in cash. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.


title: New Carrollton Man Sentenced to 20 Years in Federal Prison for Kidnapping Minors, Producing Child Sexual Abuse Material

component: USAO - Maryland

body_text: Greenbelt , Maryland – On January 31, 2025, U.S. District Judge Deborah L. Boardman sentenced Julian Everett, 41, of New Carrollton, Maryland, to 20 years in federal prison and 20 years of supervised release, for kidnapping minors and producing child sexual abuse material. Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy; and Chief Malik Aziz, Prince George’s County Police Department. According to the guilty plea, in 2005, 2015 and 2016, Everett acknowledged sexually abusing and capturing sexual abuse material of several victims at his New Carrollton home – four were minors. On July 11, 2005, Everett drove Victim 2 — who was16 at the time — from the Commonwealth of Virginia to his New Carrollton residence. While at his residence, Everett provided Victim 2 with a beverage, before engaging in sexual intercourse without her consent. Everett also took nude photographs of the victim without her consent. Additionally, on August 23, 2015, Everett drove another victim — who was 18 at the time — from a Washington, D.C. night club to a gas station. While there, Everett created and provided Victim 3 with a beverage before driving her to his New Carrollton residence. Everett then engaged in sexual acts with Victim 3 without her consent. Then on August 21, 2016, Everett drove Victim 1 — who was then 17 at the time — from her Washington, D.C. residence to a Northwest D.C. barbershop where he worked. While at the barbershop, Everett created and provided Victim 1 with a beverage. Victim 1 drank it and eventually lost consciousness before waking up at Everett’s home while he was performing a sexual act on her. Additionally, Everett recorded the sexual encounter and took naked pictures of the victim without her consent. Authorities arrested Everett in Prince George’s County on March 21, 2019. Federal law enforcement obtained a search warrant for Everett’s electronic devices, revealing images of child sexual abuse material, including a video of Everett engaging in sexual intercourse with an unidentified fifth female victim. During the video, Victim 5 can be heard mumbling and is physically unresponsive with her eyes closed. On March 26, 2019, a fourth victim reported a sexual-assault incident to the Prince George’s County Police Department’s Criminal Investigation Division. Between March and April 2015, Everett transported Victim 4 — who was16 at the time — from her Washington D.C. residence to his New Carrollton home. After arriving at his house, Everett mixed a drink for Victim 4 who drank it and became lightheaded. Everett then engaged in multiple sexual acts with Victim 4 without her consent, which he also digitally recorded. He also took nude photos of her. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page. U.S. Attorney Barron commended the FBI, Office of State’s Attorney for Prince George’s County, Maryland, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Timothy Hagan and Thomas Sullivan who prosecuted the federal case. For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Tax Preparer Sentenced for Including False Information on Federal Tax Returns

component: USAO - Alabama, Middle

body_text: MONTGOMERY, Ala. – On January 31, 2025, a federal judge sentenced 47-year-old Natoshia Lashawn Crawford to 30 months in prison for making false tax returns and assisting in the filing of false tax returns, announced Acting United States Attorney Kevin Davidson and Special Agent in Charge Demetrius Hardeman with IRS Criminal Investigation’s Atlanta Field Office. Federal inmates are not eligible for parole. According to her plea agreement and other court records, from 2018 through 2022, Crawford owned and operated On Time Professional Tax Service, LLC, in Montgomery, Alabama. There, Crawford prepared and filed federal income tax returns for clients. In her plea agreement, Crawford admitted that she included false information in tax returns filed on behalf of herself and others. Doing so caused Crawford and some of her clients to receive greater refunds than they were entitled to receive. In one example, Crawford reported a total income of $23,116 in her 2020 tax return. When Crawford pleaded guilty on May 13, 2024, she admitted that she knowingly excluded other income she received from her business. The false reporting of Crawford’s income for 2020 resulted in a lower amount of tax due and an underpayment to the IRS in the amount of $32,867. Crawford also admitted that she filed a 2019 return for a client claiming a business loss of $90,171 for a janitorial services business which did not exist. In her plea agreement, Crawford further agreed that the multiple false returns she filed for herself and others during the 2017 – 2021 tax years caused a total loss of $1,721,047.45 to the IRS. In addition to the prison sentence, the judge also ordered that Crawford pay restitution to the IRS for losses from returns filed by her for the 2017 – 2021 tax years. “For far too long, opportunistic tax return preparers like Ms. Crawford have viewed the IRS as a piggybank,” stated Acting United States Attorney Davidson. “As was the case here, preparers attempt to get larger refunds for themselves and their clients by putting false information on the tax returns they prepare. Hopefully, Ms. Crawford’s sentence will cause anyone who has considered cheating the system like this to honestly and accurately prepare tax returns.” “The sentence Natoshia Crawford received is an example of the expected outcome others could face should they willfully defraud the government by submitting false and inaccurate tax returns,” said Special Agent in Charge Hardeman. “IRS Criminal Investigation special agents will investigate and turn over to the U.S. Attorney’s Office for prosecution those who commit tax crimes.” For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf . IRS Criminal Investigation investigated this case, which Assistant United States Attorney Megan A. Kirkpatrick prosecuted.


title: Two Hard Money Lenders Charged for Defrauding Investors in Loans Made to Failed Fresno Company Bitwise Industries

body_text: FRESNO, Calif. — A federal grand jury returned a six-count indictment on Jan. 30, 2025, that charged David Hardcastle, 61, of Fresno, with conspiracy to commit wire fraud and substantive wire fraud for defrauding investors in loans made to the failed Fresno-based startup company Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced today. The indictment was unsealed after Hardcastle’s arrest this morning, and he is scheduled to make his initial appearance in court this afternoon. Andrew Adler, 31, of Greenwich, Connecticut, has been charged by information and entered into a plea agreement with the government where he has agreed to plead guilty to conspiracy to commit wire fraud. Adler is scheduled to enter his guilty plea in court next month. According to court documents, from December 2022 through May 2023, Hardcastle and his business partner Adler gave Bitwise approximately $20 million in hard money loans through their special purpose entity Startop Investments LLC. They syndicated the loans to other investors. In doing so, they altered the original loan documents to make it appear that Bitwise was obligated to pay significantly less interest on the loans than was true. They also forged the signature of Bitwise’s Co-CEO, Jake Soberal, on the altered documents. This made the loans appear less risky and therefore more appealing to the investors. Hardcastle and Adler received tens of thousands of dollars in origination fees for the loans and stood to make millions more in secret profits from the higher, undisclosed interest rates had the loans been fully repaid. Moreover, one of the loans to Bitwise included a secure interest reserve of approximately $700,000. The investors were unaware of this reserve. Hardcastle and Adler then used these reserve funds to make an unrelated investment in another company that they operated without the investors’ authorization, and the money was not available to repay the investors when Bitwise collapsed in May 2023. Generally speaking, secure interest reserves are disclosed to loan investors and are supposed to help protect the investors in the event the borrower does not repay the loan on schedule. Bitwise did not repay the loans before collapsing. As a result, the investors in the loans lost nearly all of their money. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton, Henry Carbajal III, and Cody Chapple are prosecuting the case. If convicted, Hardcastle and Adler each face maximum statutory penalties of 20 years in prison and a $250,000 fine for the conspiracy to commit wire fraud charge. Hardcastle also faces another 20 years in prison and a $250,000 fine for each of the substantive wire fraud charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Nicaraguan Man Sentenced for Making False Statement on Passport Application

body_text: NEW ORLEANS , LOUISIANA – U.S. Attorney Duane A. Evans announced that SILVIO MENDOZA SANCHEZ (“SANCHEZ”) , age 45, a citizen of Nicaragua, sentenced on January 27, 2025, after having previously pled guilty to making a false statement on a passport application, in violation of Title 18, United States Code, Section 1542. According to the court documents, SANCHEZ applied for a United States passport using the name, date of birth, and social security number of a Puerto Rican man. SANCHEZ was sentenced by United States District Judge Jay C. Zainey to (6) six months of probation. U.S. Attorney Evans praised the work of the United States Department of State, Diplomatic Security Service in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.


title: Des Moines Man Sentenced to 204 Months in Federal Prison for Drug Charges

component: USAO - Iowa, Southern

body_text: DES MOINES, Iowa – A Des Moines man was sentenced today to 17 years in federal prison for possession with intent to distribute a controlled substance containing fentanyl. According to public court documents and evidence presented at trial, in the fall of 2023, Sharmarke Omar Mohamed, 37, was identified as a source of supply of counterfeit fentanyl pills in the Des Moines metro. Police conducted several controlled buys of hundreds of fentanyl pills from him. In early 2024, law enforcement surveilled Mohamed as he traveled to Arizona and quickly returned to Iowa. Law enforcement conducted a traffic stop of Mohamed’s vehicle and found him in possession of approximately 30,000 counterfeit fentanyl pills. On September 30, 2024, following a one-day bench trial, a federal judge found Mohamed guilty. At his sentencing, a federal judge found Mohamed obstructed justice by committing perjury at his trial by lying under oath. After completing his term of imprisonment, Mohamed will be required to serve a 6-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines Police Department-Narcotics Division. Fentanyl has become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills often resemble pharmaceutical pills, but contain potentially lethal doses of fentanyl. In 2023, accidental overdose was the number one cause of death in 37 states for residents under 40 years old. https://stateline.org/2023/09/05/death-rates-for-people-under-40-have-skyrocketed-blame-fentanyl/ . In Iowa, opioid-related deaths reached a record high 258 in 2021, up 64% compared with 2019, and decreased 8% in 2022. https://hhs.iowa.gov/media/11935/download .


title: Bangor Woman Sentenced for Role in Penobscot and Aroostook County Drug Trafficking

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

body_text: BANGOR, Maine: A Bangor woman was sentenced today in U.S. District Court in Bangor for her role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl. U.S. District Judge Stacey D. Neumann sentenced Shelby Loring, 29, to time served followed by three years of supervised release. Loring pleaded guilty on January 17, 2023, and was incarcerated for approximately 32 months. According to court records, between January 2018 and December 2021, Loring and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Loring regularly obtained quantities of drugs from her source, paying for the drugs with the proceeds from the sale of prior deliveries. Loring would distribute drugs to customers in Penobscot County while keeping some for her own use. Loring’s participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia, and other items. Twenty-one defendants have been charged in this and related cases for their part in a widespread northern Maine drug trafficking conspiracy. To date, 11 of the defendants have been sentenced while 10 await sentencing: Sentenced: Andrew Adams (32, Aroostook County) – 10 years Matthew Catalano (38, Penobscot County) – 165 months Christopher Coty (44, Bangor) – 4 years Blaine Footman (38, Bangor) – 5 years Nicole Footman (41, Holden) – 3 years Dwight Gary, Jr. (54, Medway) – Time served Thomas Hammond (26, Charleston) – 84 months James King (55, Caribou) – 165 months Shelby Loring (29, Bangor) – Time served (32 months) Danielle McBreairty (34, Glenburn) – 20 years Wayne Smith (33, Bangor) – 85 months Awaiting sentencing: Daquan Corbett (30, Brockton, Mass.) Jason Cunrod (42, Caribou) – sentencing scheduled 02/20/25 Carol Gordon (53, Bangor) – sentencing scheduled 02/20/25 Daviston Jackson (28, Boston, Mass.) Joshua Jerrell (30, Orrington) – sentencing scheduled 02/11/25 Sarah McBreairty (36, Dixmont) – sentencing scheduled 02/11/25 John Miller (24, Caribou) – sentencing scheduled 02/20/25 Aaron Rodgers (43, Bangor) – sentencing scheduled 02/11/25 James Valiante, 42 (Linneus) – sentencing scheduled 02/20/25 Joshua Young (48, Presque Isle) – sentencing scheduled 02/20/25 The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office. Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. ###


title: Rock Island Man Sentenced to 151 Months in Federal Prison for Gun Charge

body_text: DAVENPORT, Iowa – A Rock Island man was sentenced on Thursday, January 30, 2025 to 151 months in federal prison for possessing a firearm as a felon. According to public court documents and evidence presented at sentencing, Adrian Warren Neeley, 38, led officers on a high-speed chase from Rock Island, Illinois, over the Centennial Bridge, into Iowa on October 9, 2022. Officers in Rock Island received reports of a reckless driver, saw Neeley’s vehicle, and heard gunshots and observed muzzle flash from the area where the vehicle had turned. Neeley failed to obey traffic devices and signs and traveled at over 80 miles per hour in a 30-mile-per-hour zone. Neeley’s vehicle eventually became disabled and Neeley ran from the driver’s seat on foot. During the foot chase, Neeley dropped a firearm which was recovered after Neeley was apprehended. Cartridge casings and a bullet recovered from a shooting near the Moline Police Department on August 21, 2022, were examined and determined to have been fired from the gun Neeley drop as he was attempting to flee from police. At sentencing, the Court found that Neeley shot at his significant other from a vehicle on August 21, 2022. Neeley has prior felony convictions, including a 2008 conviction in the United States District Court for the Central District of Illinois for possession with intent to distribute crack cocaine. After completing his term of imprisonment, Neeley will be required to serve a three-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, the Rock Island Police Department, the Moline Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Hamilton man sentenced to 15 years in prison for receiving bulk amounts of narcotics through the mail, illegally possessing firearms, smuggling drugs into Butler County Jail

component: USAO - Ohio, Southern

body_text: CINCINNATI – Joshua M. Riley, 46, of Hamilton, Ohio, was sentenced in U.S. District Court to 180 months in prison for narcotics and firearms crimes. According to court documents, Riley was having bulk amounts of narcotics mailed to his home on Symmes Avenue in Hamilton through the United States Postal Service. In November 2022, law enforcement intercepted a package in route to Riley’s residence that included fictitious sender and recipient names. The package contained more than two kilograms of methamphetamine. When agents later executed a search warrant at Riley’s residence, they discovered approximately 1,000 fentanyl pills, 40 pounds of marijuana, cocaine, drug trafficking paraphernalia, high-end jewelry and $18,500 in cash. Riley also illegally possessed at least 15 firearms, firearm magazines, and ammunition. Four of those firearms were later found to have been previously reported as stolen, and a fifth had an obliterated/filed off serial number. The other firearms included an Akdal Arms, 12 gauge semi-automatic shotgun and a Hi-Point nine millimeter high-powered rifle. In July 2024, Riley pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl, as well as cocaine and marijuana. He also admitted to illegally possessing a firearm as a previously convicted felon. While detained during this case, Riley was repeatedly caught smuggling drugs – namely, dozens of suboxone strips and amphetamines – into the Butler County Jail. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; and Butler County Sheriff Richard K. Jones announced the sentence imposed by U.S. District Court Judge Jeffery P. Hopkins. Assistant United States Attorneys David P. Dornette and Timothy D. Oakley represented the United States in this case. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. # # #