title: Eureka Chiropractor Convicted of Defrauding Medicare, Insurance Companies Out of More Than  $1.5 Million

component: Department of Justice

body_text: PEORIA, Ill. – A federal jury returned a guilty verdict late Friday evening against Carrie Musselman, 48, of Eureka, Illinois, for defrauding Medicare and other insurance companies out of more than $1.5 million dollars and for five counts of wire fraud in furtherance of her scheme to defraud. Sentencing for Musselman has been scheduled for June 24, 2025, at the U.S. Courthouse in Peoria, Illinois. Over 13 days of testimony, the government presented evidence establishing that Musselman, a chiropractor in Eureka, engaged in a scheme to defraud Medicare and other insurance companies. As part of the scheme, Musselman disguised the identity of the people providing services and misrepresented the nature of the services that had actually been provided. For instance, Musselman falsely claimed services were being provided by physicians when they were actually being provided by nurse practitioners and physician’s assistants. This resulted in an automatic pay increase for Musselman and her practice. In addition, one of Musselman’s highest reimbursement services, the placement of an electroacupuncture (which she was falsely billing as a surgically implanted neurostimulator), would not have qualified for any payment but for her deception. Musselman also billed for services that were not actually rendered. This included not only billing for neurostimulators that were never provided, but also for purportedly providing patients with allergy injections when, in reality, no such injections were given. Instead, patients were sent home with oral drops that had not been approved by the Food and Drug Administration, were considered “experimental,” and had not been proven to be effective. Musselman remains released on bond. At sentencing, Musselman faces statutory penalties of up to 10 years’ imprisonment for the healthcare fraud charge and up to 20 years’ imprisonment for each of the wire fraud charges, to be followed by up to three years of supervised release on each of the counts. Each of the six convictions could also incur up to a $250,000 fine. The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorneys Douglas F. McMeyer, Bryan D. Freres, and Grace J. Hitzeman represented the government at trial.


title: U.S. Attorney's Office and FBI Charge Pojoaque Man with Sexual Abuse of a Minor

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – A Pojoaque man has been charged with aggravated sexual abuse of a minor. According to the indictment, between December 21, 2021, and February 23, 2022, Alexander John Duran , 30, an enrolled member of Pojoaque Pueblo, allegedly engaged in and attempted to engage in sexual acts with a child under the age of 12. Duran will remain in custody pending trial, which has not been set. If convicted, Duran faces no less than 30 years and up to life imprisonment. Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today. The Albuquerque-Santa Fe Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case. Assistant U.S. Attorney Mark A. Probasco is prosecuting the case as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.


title: Eldon Sex Offender Sentenced to 20 Years for Child Pornography

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – An Eldon, Mo., man who is a registered sex offender was sentenced in federal court today for possessing child pornography. David Arabie, 59, was sentenced by U.S. District Judge Brian C. Wimes to 20 years in federal prison without parole, the statutory maximum sentence for this offense. The court also sentenced Arabie to 25 years of supervised release following incarceration. Arabie is a registered sex offender with prior felony convictions for statutory sodomy involving a 6-year-old victim and criminal sexual conduct involving the sexual abuse of three children ages 7 to 12. On Oct. 26, 2023, Arabie pleaded guilty to possessing child pornography. The court found him in breach of his plea agreement at today’s hearing, however, after Arabie filed a motion to withdraw his guilty plea and recanted his previous statements made under oath during the change of plea hearing, claiming to be innocent of the charged conduct. On Dec. 20, 2024, the court denied Arabie’s motion to withdraw his guilty plea. Arabie admitted that, while visiting his in-laws, he used a peer-to-peer file-sharing network on his computer to share images of child sexual abuse material with an undercover law enforcement officer. Arabie shared a video of the sexual abuse of a child victim approximately 3 to 6 years old. Arabie also admitted that he possessed more than 600 images of child sexual abuse material on his computer. This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Missouri State Highway Patrol. Project Safe Childhood 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 . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: Fresno Man Sentenced to 3 Years in Prison for a Series of Vehicle Pipe-Bombings

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Paul New, 57, of Fresno, was sentenced today to three years in prison for conspiracy to destroy property and malicious destruction by means of an explosive device, Acting U.S. Attorney Michele Beckwith announced. According to court documents, between November 2022 and February 2023, New committed a series of pipe-bombings on unoccupied vehicles and property in Fresno. The bombings damaged vehicles belonging to two auto-related businesses on Clinton Avenue. On Feb. 19, 2023, a bomb heavily damaged a vehicle used by a home health care business on Fallbrook Avenue. On October 9, 2024, co-defendant Scott Eric Anderson was sentenced to three years in prison. This case was the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael G. Tierney prosecuted the case.


title: Defendant Pleads Guilty to Selling Fentanyl that Caused  Fatal Overdose

component: USAO - California, Southern

body_text: SAN DIEGO – Danny Nunez pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the death of a 25-year-old San Diego woman identified in court records as “L.P.” on September 11, 2024. According to the plea agreement, on September 12, 2024, the young woman’s parents found her deceased in her bedroom. Cell phone evidence and witness statements show that the victim purchased fentanyl from the defendant on September 11, 2024, which she later consumed, resulting in her death. On October 3, 2024, members of the Homeland Security Investigations (HSI) San Diego – Fentanyl Abatement and Suppression Team (FAST), in conjunction with the Escondido Police Department, conducted an enforcement operation resulting in the arrest of the defendant after he attempted to sell two baggies of fentanyl, weighing 7.67 grams and 1.23 grams, to undercover agents. Nunez is scheduled to be sentenced on May 19, 2025, at 9:30 a.m. before U.S. District Court Judge Thomas J. Whelan. This case is being prosecuted by Assistant U.S. Attorney Sean Van Demark. HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl. DEFENDANT Case Number 24-CR-2295-W Danny Nunez Age: 25 San Diego, CA SUMMARY OF CHARGES Attempted Distribution of Fentanyl 21 U.S.C. § 841(a)(1) Maximum penalty: Twenty years in prison (per count) INVESTIGATING AGENCIES Homeland Security Investigations Escondido Police Department San Diego Imperial Valley High Intensity Drug Trafficking Areas *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Helena man admits unlawful possession of firearm in school zone

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

body_text: HELENA — A Helena man accused of carrying a firearm on the campus of the Jim Darcy Elementary School in Helena admitted to a firearm charge today, Acting U.S. Attorney Timothy J. Racicot said. The defendant, Bryant Nicholas Espinoza, 37, pleaded guilty to unlawful possession of a firearm in a school zone. Espinoza faces a maximum of five years in prison, consecutive to any other count of conviction, a $100,000 fine and three years of supervised release. Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for June 9. Espinoza was released pending further proceedings. The government alleged in court documents that on Feb. 7, 2024, the principal of Jim Darcy Elementary School contacted the Lewis and Clark Sheriff’s Office and advised the responding deputy that a staff member had notified her that the day prior, the parent of a student was on campus and was carrying a firearm. The staff member observed Espinoza standing in front of the school with a small dog. The staffer approached to assist Espinoza, and he informed the staffer he was there to pick up his daughter, who was a student. During the conversation, the staffer observed Espinoza was carrying a firearm. The staffer identified Espinoza in a photo, and surveillance video showed Espinoza on school property with a small dog and what appeared to be a pistol in a holster on his hip. On April 9, 2024, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the sheriff’s office executed a federal search warrant at Espinoza’s residence and seized a 9mm pistol, two rifles and ammunition. In an interview, Espinoza identified himself in still photos taken from the surveillance video and said that the item on his hip looked like a firearm. Espinoza told agents where the pistol was located at his residence. Agents asked if there was a reason he had the gun at the school, and Espinoza responded that Montana was an “open carry state.” The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office conducted the investigation. 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 . XXX


title: McAllen man enters plea to illegally pointing laser at law enforcement aircraft

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 35-year-old local resident has admitted he pointed a laser at a Customs and Border Protection (CBP) helicopter, announced U.S. Attorney Nicholas J. Ganjei. George Anthony Garza pointed the laser multiple times on the evening of Dec. 29, 2024. On that date, a CBP aircrew in an official Air and Marine Operations helicopter observed a green laser beam being pointed at the helicopter multiple times during flight, impeding the vision of a pilot. Authorities were able to determine the source originated from Garza’s backyard. Law enforcement approached Garza at his residence, at which time he surrendered the laser pointer and admitted to aiming the beam at the aircraft that night. U.S. District Judge Drew B. Tipton will impose sentencing June 3. At that time, Garza faces up to five years in federal prison as well as a possible $250,000 maximum fine. He was permitted to remain on bond pending sentencing. The FBI, CBP and Border Patrol conducted the investigation with the assistance of the Federal Aviation Administration and the McAllen Police Department. Assistant U.S. Attorney Amanda McColgan is prosecuting the case.


title: Companies That Own and Operate Bulk Carrier Guilty, Sentenced For Environmental Crimes

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpson announced that two companies that owned and operated the bulk carrier M/V ASL Singapore —ASL Singapore Shipping Limited and Jia Feng Shipping (Fuzhou) Limited — pled guilty on February 20, 2025 to knowingly violating the Act to Prevent Pollution from Ships (APPS), and obstruction of justice related to the falsification of the vessel’s Oil Record Book, a required log. The guilty pleas occurred before U.S. District Judge Jay C. Zainey. The companies were sentenced during the same proceeding. Pursuant to the court approved plea agreement, the companies were fined a total of $1.85 million and are banned from operating in the United States in the future. Separate charges were filed against Fei Wang, a Chinese national who was the ship’s Chief Engineer. Wang pled guilty and was sentenced on January 24, 2025. The criminal case stems from a routine U.S. Coast Guard inspection, which revealed that the crew had been using a portable pump and flexible hose—a so-called magic pipe—to dispose of oily bilge water. This action constituted a violation of MARPOL, the International Convention for the Prevention of Pollution from Ships, coupled with the vessel’s failure to use the appropriate pollution prevention equipment and monitoring. Crew members presented the vessel’s Oil Record Books to the Coast Guard knowing they contained fraudulent entries and omitted information about discharging oily bilge water directly overboard before arriving in the United States. The falsified logs were intended to conceal that since at least June 2023, the crew had dumped oily bilge water overboard directly from the bilge holding tank and was non- compliant with international treaties regulating oil pollution from ships. ASL Singapore Shipping Limited is based in The Republic of the Marshall Islands, and Jia Feng is based in China. The corporations were each charged with two felonies: an APPS violation and obstruction of justice. The Coast Guard Investigative Service and the EPA Criminal Investigations Division investigated the case with assistance from U.S. Coast Guard Sector New Orleans. Assistant U.S. Attorneys Christine M. Calogero and G. Dall Kammer of the General Crimes Unit are prosecuting the case.


title: Fresno County Man Pleads Guilty to Conspiring to Distribute Fentanyl

body_text: FRESNO, Calif. — Lakota Tehya Wakley, 21, of Clovis, pleaded guilty today to conspiracy to distribute and possess with intent to distribute fentanyl, Acting U.S. Attorney Michele Beckwith announced. According to court documents, between Nov. 18, 2024, and Dec. 9, 2024, Wakley conspired with Austin Lloyd Kerns, 53, of Fresno, and others to distribute fentanyl. The investigation began after a fentanyl‑overdose death in Fresno. On Nov. 23, 2024, Wakley connected the overdose victim with Kerns to buy fentanyl pills. Over the next 48 hours, the victim bought fentanyl pills multiple times from Kerns and died soon after of a fentanyl overdose. Wakley received fees for connecting the victim with Kerns. This case is the product of an investigation by the Fentanyl Overdose Resolution Team (FORT), a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno and Clovis Police Departments. Assistant U.S. Attorneys Calvin Lee and Arin C. Heinz are prosecuting the case. Charges are pending against Kerns. He is scheduled for a status conference on March 26, 2025, before Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; Kerns is presumed innocent until and unless proven guilty beyond a reasonable doubt. Wakley is scheduled to be sentenced by U.S. District Judge Kirk E. Sherriff on June 23, 2025. Wakley faces a maximum sentence of 20 years in prison. 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. This case is part of Operation Synthetic Opioid Surge (S.O.S.), a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.


title: Hard Money Lender Pleads Guilty to Defrauding Investors Out of $20 Million in Loans Made to Failed Fresno Company Bitwise Industries

body_text: FRESNO, Calif. — Andrew Adler, 31, of Greenwich, Connecticut, pleaded guilty today to conspiracy to commit wire fraud when he defrauded investors out of $20 million in loans made to the failed Fresno-based, start-up company Bitwise Industries, Acting U.S. Attorney Michele Beckwith announced. According to court records, between December 2022 and May 2023, Adler and his business partner, David Hardcastle, 61, of Fresno, gave Bitwise approximately $20 million in hard money loans through their special purpose entity Startop Investments LLC. Adler and Hardcastle used a syndicate of investors to fund the loans. In order to mislead the investors, Adler and Hardcastle altered the original loan documents to make it appear as though 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. Adler and Hardcastle 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. Bitwise, however, did not repay the loans before collapsing, and the investors in the loans lost nearly all of their money. On Feb. 3, 2025, Hardcastle was arrested and arraigned on an indictment charging him with conspiracy to commit wire fraud and wire fraud. This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph D. Barton and Cody S. Chapple are prosecuting the case. Adler is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 2, 2025. Adler faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the conspiracy to commit wire fraud charge. If convicted, Hardcastle faces a maximum of 20 years in prison and a $250,000 fine for conspiracy to commit wire fraud and for each of the substantive wire fraud charges. Sentences are 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. Hardcastle is charged in a separate indictment and those charges remain pending. Those charges are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Jury Convicts St. Louis Man of Drug Trafficking and Charges Connected to Nine Murders

body_text: ST. LOUIS – A jury in U.S. District Court in St. Louis on Monday found a St. Louis man guilty of a cocaine trafficking charge and charges related to the death of nine people during a nearly six-year period. Evidence and testimony presented at trial showed that Anthony “TT” Jordan, 38, was the leader of a cocaine trafficking ring. Jordan committed murders to protect that organization and hinder any investigation by law enforcement. He later committed additional murders to retaliate against a St. Louis gang he held responsible for the murder of a friend, gathering information and targeting gang members with the help of associates. Jordan and his co-conspirators also killed several bystanders, to include Clara Walker, a 51-year-old mother of nine, and Keairrah Johnson. Among those who testified were direct witnesses to the murders. Jordan was convicted of one count of conspiracy to distribute cocaine, one count of possession of firearms in furtherance of a drug trafficking crime and nine counts of use of a firearm in furtherance of a drug-trafficking crime resulting in death. Those counts relate to the following fatal shootings, with details according to trial testimony: • The April 19, 2008, deaths of Al Walters, Linnie Jackson, and Keith Burks. Walters was Jordan’s target. • The Feb. 3, 2010, deaths of Marquis Jones and Keairrah Johnson. Jones was the target. • The June 25, 2013, death of Anthony “Blinky” Clark. • The Dec. 29, 2013, deaths of Robert “Parker G” Parker and Clara Walker. Parker was the target. • The Jan. 21, 2014, death of Michail “Yellow Mack” Gridiron. Jordan was also convicted of a nonfatal shooting on Dec. 23, 2013. “I would like to thank the jury for their service over the last few weeks and commend all of our law enforcement partners, the Assistant United States Attorneys, and the support staff who worked tirelessly over the years to investigate and prosecute this case,” said U.S. Attorney Sayler A. Fleming. “With today’s guilty verdict, justice was served. The evidence proved without a doubt that Anthony Jordan is a violent drug-trafficker and serial murderer who needed to be removed from the streets of St. Louis. Our office remains dedicated to working with our local, state, and federal counterparts to bring at least some measure of comfort and resolution to the families of the victims of such violence, as they deserve nothing less.” “These murders were committed to benefit a large-scale drug trafficking organization that flooded our communities with poison directly sourced from cartels in Mexico. Anthony Jordan is not only a drug trafficker, but a serial murderer whose job was to eliminate competition from other drug dealers,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “St. Louis is a safer place with Jordan and his associates off the streets.” “Today’s verdict is the culmination of countless hours of investigative work,” DEA St. Louis Division Special Agent in Charge Michael Davis said. “Over a span of several years, we uncovered the extent of Anthony Jordan’s reach into our St. Louis neighborhoods. His acts of violence instilled fear in our communities, while the drugs he pushed destroyed lives. Let this serve as a reminder that no one is above the law. The DEA, in partnership with our fellow law enforcement agencies, will go to great lengths to bring justice to the families impacted by those who inflict pain and suffering in our neighborhoods.” The trial began with jury selection on January 31. Jordan is scheduled to be sentenced on May 29, and faces up to life in prison. Jordan’s cocaine was supplied by Adrian Lemons, who obtained cocaine in bulk from representatives of a Mexican cartel. Lemons, now 46, of St. Louis, was sentenced in 2020 to 20 years in prison. Lemons, Jordan and 32 others were indicted as part of a long-running investigation by the FBI and the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant U.S. Attorneys Erin Granger and Donald Boyce are prosecuting the case. This effort is part of an 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 .


title: Former Stanford Research Coordinator Convicted For Unlawfully Accessing And Altering Breast Cancer Study Database Hours After She Was Fired

component: USAO - California, Northern

body_text: SAN JOSE – A federal jury convicted Naheed Mangi, 66, a former employee of Stanford University, of accessing a clinical research database for a multisite breast cancer study after her authorization was revoked and altering patient records in the database. The jury reached its verdict late afternoon on Friday, Feb. 21, 2025, following a two-week trial before Senior U.S. District Judge Edward J. Davila. According to court documents and evidence presented at trial, Mangi was employed as a clinical research coordinator in the Cancer Clinical Trials Office at Stanford’s National Cancer Institute from September 2012 until August 2013. Mangi worked with doctors and patients in the clinical research program, reporting significant patient events, monitoring research, assisting with scheduling patient appointments, and entering data into clinical dataset. Mangi was assigned to a Genentech-sponsored study being conducted at Stanford for breast cancer patients that was referred to as the “Velvet Breast Cancer MO27782 Study.” The study sought to determine the safety and efficacy of a new, experimental pharmaceutical treatment for patients with metastatic or locally advanced breast cancer. Among other duties, Mangi was responsible for reporting any serious adverse events that a patient may experience during the course of the study and accurately entering patient medical data into the study database. On Aug. 19, 2013, Mangi was terminated from her employment with Stanford and Mangi’s supervisor attempted to revoke her Stanford-related computer access and privileges. The supervisor emailed Genentech to terminate Mangi’s access to the clinical database, but Mangi’s credentials were not disabled until the following day. The jury found that later in the evening on Aug. 19, after Stanford had revoked her access, Mangi logged into the clinical database and altered data in the Velvet Breast Cancer MO27782 Study, replacing patient medical data with erroneous information and insults about her former supervisor. As a result of Mangi’s unauthorized actions, Stanford undertook an internal investigation, reentered all of the data about its participants in the study from source documents into the study database, and reported the incident to local and federal regulatory authorities, including the FDA. In addition, Mangi’s criminal conduct caused thousands of dollars in financial loss to Stanford University and the Stanford School of Medicine. “Naheed Mangi intentionally tampered with a breast cancer research database by entering false information and personal insults. Her senseless actions undermined a study into the safety and efficacy of a new treatment for breast cancer patients,” said Acting United States Attorney Patrick D. Robbins. “The jury’s verdict holds the defendant accountable for her crimes.” “Naheed Mangi’s actions jeopardized important cancer research and caused thousands in financial loss to Stanford University. The U.S. Secret Service continues to work diligently to investigate these types of crimes to ensure those responsible are held accountable,” said U.S. Secret Service Special Agent in Charge Shawn Bradstreet. Mangi, who was convicted of two counts of Intentional Damage to a Protected Computer in violation of 18 U.S.C. § 1030(a)(5)(A) and one count of Accessing a Protected Computer Without Authorization in violation of 18 U.S.C. § 1030(a)(2)(C), will be sentenced on July 21, 2025. She faces a maximum penalty of 10 years in prison as to each conviction for Intentional Damage to a Protected Computer and one year in prison as to the conviction for Accessing a Protected Computer Without Authorization. Any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant U.S. Attorneys Nikhil Bhagat and Matthew Chang are prosecuting the case with the assistance of Nina Burney, Mimi Lam, Susan Kreider, Sahib Kaur, Fernanda Gonzalez, Maureen French, and Bella Schou. The prosecution is the result of an investigation by the Secret Service.


title: Muskogee Resident Plead Guilty To Federal Drug Charges

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Christian Deion Larance Smith, age 27, and Kaleel Montrel Smith, age 26, both of Muskogee, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine, and one count of Possession with Intent to Distribute Cocaine. The Indictment alleged that on July 25, 2024, the defendants knowingly and intentionally possessed with intent to distribute substances containing detectable amounts of methamphetamine and substances containing detectable amounts of cocaine, Schedule II controlled substances. The charges arose from an investigation by the Oklahoma Bureau of Narcotics, the Muskogee Police Department, the Muskogee County Sheriff’s Department, and the Muscogee (Creek) Nation Lighthorse Police Department. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Kaleel Smith was remanded into the custody of the United States Marshals Service pending sentencing. Christian Smith will remain out on bond pending sentencing. Assistant U.S. Attorney Jordan Howanitz represented the United States.


title: Kenner Man Enters  Guilty of Possession of Child Sexual Abuse Material

body_text: NEW ORLEANS, LOUISIANA – NOAH TORRES (“TORRES”) , age 47, of Kenner, pled guilty on February 20, 2025, to Possession of Materials Involving the Sexual Abuse of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B), announced Acting U.S. Attorney Michael M. Simpson. TORRES faces a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, a term of supervised release of no less than five (5) years and up to life, after release from prison, and a mandatory $100 special assessment fee. According to court documents, on Monday, July 24, 2023, TORRES was arrested at his Kenner residence by Special Agents with the U.S. Department of Homeland Security, Homeland Security Investigations, after the execution of a federal search warrant. TORRES admitted to possessing 219 images and 340 videos depicting prepubescent minors engaging in sexually explicit conduct. Sentencing in this matter is scheduled for May 22, 2025, before United States District Judge Eldon E. Fallon. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . Acting U.S. Attorney Simpson praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations, including the Portland, Oregon and New Orleans, Louisiana offices; the Kenner Police Department; and the Louisiana Bureau of Investigation. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Chief of Financial Crimes Unit.


title: New Orleans Man Guilty of Machinegun Possession

body_text: NEW ORLEANS, LOUISIANA – LADONTE RICHARDSON (“RICHARDSON”), age 22, a resident of New Orleans, pled guilty on February 13, 2025, to possession of a machinegun, announced Acting U. S. Attorney Michael M. Simpson. RICHARDSON faces a maximum term of 10 years of imprisonment, and/or a fine up to $250,000, up to 3 years of supervised release, and $100 mandatory special assessment fee. According to court records, on August 29, 2023, RICHARDSON posted a photo on his Instagram page with three train emojis, along with an emoji of a cellphone. Investigators believed this to be an advertisement for selling Tapentadol pills, which are commonly referred to as “trains.” On September 7, 2023, RICHARDSON posted another advertisement for drugs. Based upon these posts, on September 8, 2023, a Federal Bureau Investigation (“FBI”) Task Force Officer (“TFO”) obtained a search warrant for RICHARDSON’s Instagram account that showed RICHARDSON possessing firearms. Specifically, on September 17, 2023, RICHARDSON live streamed himself on a video brandishing a firearm with a laser sight. On September 21, 2023, an arrest warrant was issued for RICHARDSON for two counts of second-degree murder that occurred on December 7, 2022. U.S. Marshals located and arrested RICHARSON in New Orleans. A search of his residence revealed the same firearm brandished by RICHARDSON on his Instagram page, in a bedroom dresser. The firearm was equipped with a switch. The firearm was also stolen. RICHARDSON admits possessing and knowing it was a machine gun. 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. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel of the Violent Crime Unit.


title: Bogalusa Man Indicted for Federal Drug and Gun Charges

body_text: NEW ORLEANS , LOUISIANA – FERNANDO BRISTER (“BRISTER”) , age 35, and resident of Bogalusa, Louisiana was indicted on January 31, 2025, announced Acting United States Attorney Michael M. Simpson. Count One of the indictment charged him with distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). Count Two charged him with being a felon in possession of firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(8), and 942(e). If convicted, BRISTER faces up to 20 years’ imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release for Count One. For Count Two, BRISTER faces not less than 15 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. BRISTER also faces payment of a $100 mandatory special assessment fee as to both counts. According to court documents, on January 31, 2023, BRISTER knowingly and intentionally distributed methamphetamine, a Schedule II controlled substance, to an undisclosed person. On February 6, 2023, BRISTER was a felon and knowingly possessed a Glock Model 43, nine--millimeter caliber pistol and ammunition. 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. Acting United States Attorney Michael M. Simpson 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 the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Washington Parish Police Department. It is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.


title: Honduran Guilty of Illegally Using Social Security Number to Obtain Employment

body_text: NEW ORLEANS , LOUISIANA – Acting United States Attorney Michael M. Simpson announced that CESAR ALVAREZ-ESPINAL (“ ALVAREZ-ESPINAL ”) , a native of Honduras, pleaded guilty on February 20, 2025 to illegally using a social security number to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B). ALVAREZ-ESPINAL faces a maximum term of imprisonment of five (5) years, up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00. According to court documents, in November 2024, Homeland Security Investigations received information that certain individuals had used fraudulent Social Security cards in an initial application to obtain employment. Prior to finalizing employment with their prospective company, the individuals were required to report to the Gulf Coast Safety Council. The Gulf Coast Safety Council provides safety courses to applicants applying for work with companies that service petrochemical processing plants. On November 13, 2024, ALVAREZ-ESPINAL arrived at the Gulf Coast Safety Council office in St. Rose, Louisiana to complete the safety course. On that day, ALVAREZ-ESPINAL presented a fraudulent United States Social Security card bearing the name and United States Social Security number of a United States citizen, that he represented to be his own in order to obtain employment. Acting U.S. Attorney Simpson praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Jon M. Maestri of the General Crimes Unit is in charge of the prosecution.


title: New Orleans Man Guilty of Federal Controlled Substances and Federal Gun Control Acts Violations

body_text: NEW ORLEANS, LOUISIANA – ARMOND BURNETTE (“BURNETTE”) , age 35, of New Orleans, pled guilty on February 11, 2025 to a three-count indictment charging him with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), and possession of a firearm by a convicted felon, in violation of Title 21, United States Code, Sections 922(g)(1) and 924(a)(8). BURNETTE faces a maximum penalty of (20) years imprisonment, at least three (3) years of supervised release and a fine of up to $1,000,000, for possession with the intent to distribute controlled substances; and a maximum penalty of fifteen (15) years imprisonment, up to three (3) years of supervised release, and a fine of up to $250,000.00 for the possession of a firearm by a convicted felon. BURNETTE also faces payment of a $100 mandatory special assessment fee per count. According to court documents, on June 23, 2023, New Orleans Police Department (NOPD) officers observed BURNETTE who was wanted for multiple attachments, walking in the French Quarter. NOPD officers approached BURNETTE but he fled and was arrested a short time later. BURNETTE was found in possession of a plastic bag with twenty-one (21) individually wrapped baggies containing fentanyl, and 3.39 grams of cocaine. On April 25, 2024, NOPD officers conducting a drug investigation, observed BURNETTE exit a silver BMW in the 600 block of Iberville and enter a bar wearing a backpack. Officers met BURNETTE as he was exiting the bar without the backpack. Officers located the bag, that contained a firearm, near a poker machine inside the bar. Officers opened the bag and found a firearm. Thereafter, officers searched the silver BMW and recovered one bag containing seven bags of fentanyl, a digital scale, and a small amount of methamphetamine. After searching the backpack , officers also recovered six dosages of Tapentadol, ecstasy pills, approximately 4 grams of cocaine, and a stolen .40 caliber Smith & Wesson firearm. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun track 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 Bureau of Alcohol, Tobacco, and Firearms. Assistant United States Attorney Michael E. Trummel of the Violent Crimes Unit is in charge of the prosecution.


title: Former Army Reservist Sentenced for Conspiracy to Steal Government Funds

body_text: NEW ORLEANS – CODY FRANCIS ( “FRANCIS” ), age 34, of New Orleans, was sentenced on February 13, 2025, by Chief United States District Judge Nannette Jolivette Brown. FRANCIS previously pled guilty to conspiracy to commit theft of government funds, having stolen $11,378.27 from the United States Department of the Army by claiming reimbursement for the performance of military funeral honors ceremonies that never happened. The National Defense Authorization Act of 2000 authorizes military funeral honors for active-duty soldiers, retirees, and veterans. At a family’s request, eligible persons can receive military funeral honors, including the folding and presenting of the United States flag and the playing of “Taps.” Chief Judge Brown sentenced FRANCIS to one year probation, 100 hours of unpaid community service, the payment of $11,378.27 in restitution to the Department of the Army, and a $100 mandatory special assessment fee. Acting U.S. Attorney Simpson praised the work of the United States Army Criminal Investigation Command. Assistant United States Attorney Andre J. Lagarde of the Public Integrity Unit is in charge of the prosecution.


title: Canadian Drug Traffickers Sentenced To Prison For Transporting Methamphetamine And Cocaine On Behalf Of The Wolfpack Alliance

component: USAO - New York, Southern

body_text: Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that MICHAEL HABIB, an associate of the Canadian criminal organization known as the Wolfpack Alliance, was sentenced to 17 and a half years in prison for trafficking narcotics. HABIB pled guilty on December 20, 2023, before U.S. District Judge John P. Cronan, who imposed today’s sentence. HABIB’s sentencing follows the imposition of sentences of 18 years, 17 and a half years, and four and half years on his co-defendants, SURINDER SINGH CHEEMA, BHUPINDER SINGH VIRK, and CHRISTOPHER BURGOS, on December 19, 2024, July 17, 2024, and December 16, 2024, respectively. Acting U.S. Attorney Matthew Podolsky said: “Wolfpack and its associates have spread drugs and violence in the United States and in Canada. Michael Habib and his co-conspirators are responsible for transporting thousands of kilograms of cocaine and methamphetamine across our northern border, ordering drug-related shootings and kidnappings, and attempting to smuggle wanted international hitmen into the United States from Canada. Today’s prison sentence will help protect the public from wanton violence and dangerous narcotics, and demonstrates our resolve to root out transnational criminal organizations like Wolfpack.” FBI Assistant Director in Charge James E. Dennehy said: “The associates of the Wolfpack Alliance have all been rightly sentenced for establishing an international drug trafficking route to assist the flow of thousands of kilograms of methamphetamine and cocaine through our country into Canada. This conspiracy caused significant amounts of dangerous drugs to enter the United States, endangering the public’s safety. The FBI will continue to dismantle and hold accountable any criminal enterprise member, regardless of their origin, which utilizes our nation as an economic foothold and throughfare for their illegal operations.” According to the Indictment, public filings, and statements made in court proceedings: From at least in or about February 2022 through at least in or about November 2022 , HABIB, CHEEMA, VIRK, BURGOS and others conspired to distribute narcotics by shipping thousands of kilograms of methamphetamine and cocaine across the U.S. and into Canada. In or about March 2022, law enforcement seized approximately 400 kilograms of cocaine shipped by the conspirators from a warehouse in New Jersey, and approximately 96 kilograms of cocaine and 86 kilograms of methamphetamine in the vicinity of Kansas City, Kansas. In connection with their guilty pleas, HABIB admitted to conspiring to distribute at least approximately 400 kilograms of cocaine; CHEEMA admitted to conspiring to distribute at least approximately 1.3 metric tons of methamphetamine and 764 kilograms of cocaine; VIRK admitted to conspiring to distribute at least approximately 1.1 metric tons of methamphetamine and 480 kilograms of cocaine; and BURGOS admitted to conspiring to distribute at least approximately 400 kilograms of cocaine. The defendants engaged in additional criminal activities. HABIB and BURGOS, on behalf of the Wolfpack Alliance, assisted two Wolfpack-aligned hitmen, Gene Lahrkamp and Duncan Bailey, in their attempt to escape Canada and evade Canadian law enforcement, until Lahrkamp and Bailey were killed in an accidental plane crash in Canada on or about April 30, 2022. CHEEMA, in or about the spring of 2024, subsequent to his guilty plea and while awaiting sentencing at the Metropolitan Detention Center in Brooklyn, New York, directed his confederates in the greater Toronto, Canada area to conduct shootings and issue threats of violence in connection with drug debts. VIRK was arrested in or about November 2022 in California with three unregistered “ghost” guns and approximately $487,900 in cash. * * * In addition to their prison terms, HABIB, 38, of Toronto, Canada; CHEEMA, 31, of Brampton, Canada; VIRK, 31, of Fresno, California; and BURGOS, 36, of Brooklyn, New York, were sentenced to five, four, four, and three years of supervised release, respectively, and were ordered to forfeit $487,900 and a 2020 Mercedes Benz AMG GT63. Mr. Podolsky praised the outstanding investigative work of the FBI and U.S. Customs and Border Protection. Mr. Podolsky further thanked the Royal Canadian Mounted Police and Peel Ontario Regional Police for their assistance and cooperation in the investigation. This prosecution is part of an Organized Crime Drug Enforcement Task Force (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Thomas S. Burnett, Jane Y. Chong, and Matthew R. Shahabian are in charge of the prosecution.


title: Hilton Head Lawyer Sentenced for Knowingly Transferring $3M to Prevent the Lawful Seizure of the Funds

component: USAO - South Carolina

body_text: CHARLESTON, S.C. — Peter J. Strauss, 46, of Hilton Head, has been sentenced to nine months in federal prison for knowingly transferring, and aiding and abetting the transfer of, $3 million to prevent the lawful seizure of the funds. Evidence obtained in the investigation revealed that Strauss directed and aided and abetted the transfer of $3 million for Jeff and Paulette Carpoff following the execution of federal search and seizure warrants in California. Strauss directed the transfer of $3 million from an account in the Bahamas to his trust account, thereafter, combining the funds for his personal use. Jeff and Paulette Carpoff owned and operated DC Solar Solutions, Inc. and DC Solar Distribution, Inc. (DC Solar), California corporations that designed, manufactured, and leased renewable energy products, specializing predominantly in the production of mobile solar generators. On Dec. 18, 2018, the FBI and other federal law enforcement agencies executed numerous search warrants on the businesses associated with DC Solar, as well as the personal residences of Jeff and Paulette Carpoff. Several seizure warrants were also executed on bank accounts and assets associated with DC Solar and its principals. The search warrants were conducted in conjunction with a large-scale investigation regarding an investment fraud and money laundering scheme being operated by the principals of DC Solar. Following the execution of search and seizure warrants related to an investigation into the Carpoffs’ company, Strauss received $11 million from the Carpoffs. On Dec. 19, 2018, the first $5 million was transferred into Strauss’ trust account and thereafter distributed to various criminal defense attorneys and bankruptcy counsel and to Carpoffs’ captive insurance funds, managed by Strauss’ captive insurance management company. Thereafter, on Dec. 28, 2018, Strauss received an additional $3 million, largely used to pay for the Carpoffs’ captive insurance fund premiums. Finally, on Jan. 15, 2019, the Carpoffs wired Strauss $3 million into Strauss’ trust account. The combined funds in Strauss’ trust account were completely spent over the next few months. Jeff Carpoff pleaded guilty in California to money laundering and wire fraud in January 2020 and was sentenced to 30 years in prison. In November 2021, Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. Paulette was sentenced to 11 years and three months. Strauss pleaded guilty in November 2023 to removal of property to prevent seizure, admitting that by the time of the $3 million transfer in January 2019, he knowingly transferred and aided and abetted the transfer of funds from Carpoff to prevent and impair the government’s lawful authority to take the property into its custody and control. United States District Richard M. Gergel sentenced Strauss to nine months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system. Strauss was ordered to pay $2.7 million in restitution, which Strauss previously paid in compliance with the terms of his plea agreement. This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Emily Limehouse prosecuted the case. ###


title: Guilty Verdict in Georgia Tax Fraud Case, Defendant’s Second Federal Fraud Conviction

component: USAO - Georgia, Middle

body_text: ALBANY, Ga. – A Southwest Georgia resident with a prior federal conviction for tax fraud in Florida was found guilty by a federal jury seated in Albany of a fraudulent tax filing scheme. Reginald Knight, 52, of Arlington, Georgia, was found guilty of one count of making and subscribing a false tax return on Feb. 19, following a two-day trial that began on Feb. 18. Knight faces a maximum of three years in prison to be followed by three years of supervised release and a $100,000 fine. Chief U.S. District Judge Leslie Abrams Gardner is presiding over the case. A sentencing date will be determined by the Court. “The defendant was claiming millions in refunds for a business that never generated income or incurred any losses, fabricating these claims in yet another attempt by the defendant to steal from taxpayers,” said Acting U.S. Attorney C. Shanelle Booker. “We are grateful to the IRS investigators who collaborated with our office to help bring a repeat fraudster to justice.” “The guilty verdict serves as a notice to unscrupulous tax preparers that filing fraudulent tax returns will lead them to a criminal court date,” said Assistant Special Agent in Charge Lisa Fontanette, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue to investigate and recommend prosecution for those individuals who commit tax crimes.” According to court documents and evidence presented at trial, Knight filed a tax return with the IRS on March 13, 2018, falsely claiming $3,211,907 in wages, $2,586,551 in withholdings, $1,848,000 in Schedule C (Form 1040) losses and claimed a refund of $2,165,154. As part of the scheme, Knight fabricated W-2s and Schedule Cs for two separate business entities; however, neither business ever generated the income, paid the withholdings or suffered the losses Knight claimed on his return. The financials Knight submitted on the signed tax form were entirely fabricated. The IRS did not issue a refund. The IRS began investigating Knight in 2021, discovering that Knight filed tax returns with similarly exorbitant financials for the non-operating business for tax years 2014, 2015 and 2016; the IRS did not issue a refund for tax years 2014 and 2015. The IRS did issue a $745,953 refund to Knight for tax year 2016 on June 7, 2017. Knight used the refund from the false claim to pay for the construction of a new home in Albany, made transfers to his investment account, purchased a vehicle and paid for personal living expenses totaling $442,667.30. The IRS recovered $315,466.97. Knight has a prior federal conviction in the Southern District of Florida for one count of Conspiracy to Defraud the Government through False Claim for a Tax Refund and False Claim for a Tax Refund on Nov. 22, 2005, and was sentenced to serve five months in prison per charge, to be served concurrently. The IRS Criminal Division and IRS Special Enforcement Program are investigating the case. Assistant U.S. Attorney Veronica Hansis is prosecuting the case for the Government.


title: “La Empresa” Member Sentenced in El Paso to Nearly 20 Years in Federal Prison

body_text: EL PASO, Texas – An El Paso transnational criminal organization (TCO) member was sentenced in federal court Thursday to 235 months in prison for his role in a hostage taking conspiracy. According to court documents, a man was forcefully kidnapped at gunpoint from his motel room in Juarez, Mexico, on Aug. 24, 2023, and was held hostage until Sept. 5, 2023. During that time, the victim’s family received threatening phone calls from multiple unknown subjects demanding payment. Ultimately, the family paid approximated $9,000 to the TCO for safe travel and release of the victim. Luis Edward Castro, 28, worked for the TCO, “La Empresa.” Armed with a handgun, he recorded and sent proof-of-life videos to the victim’s family. In the videos, the victim appeared visibly scared and stated he was in El Paso. An investigation led law enforcement to Castro’s address, where they searched the residence and found six undocumented noncitizens and multiple firearms. Castro was arrested Sept. 5, 2023 and charged with six counts pertaining to harboring and transporting undocumented noncitizens for financial gain, hostage taking, and the possession of a firearm with an obliterated serial number. He pleaded guilty to the hostage taking charge on Sept. 26, 2024. “This case highlights some of the many dangers posed by TCOs on both sides of our southern border, and Castro’s sentencing of two decades in federal prison is a significant penalty,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “I am thankful for our partners at the FBI, HSI and the U.S. Border Patrol, whose investigative skill and expertise led to the recovery of these kidnapping victims and the outcome of this case.” “TCOs such as La Empresa will find no refuge whatsoever in our communities," said Special Agent in Charge John Morales for FBI’s El Paso Field Office. "These ruthless networks exploit the vulnerable through human smuggling, drug trafficking, and violent extortion, as seen in Castro’s crimes where innocent people were held hostage to extract more money from their families. This sentencing serves as a clear warning: the FBI and our partners at the U.S. Border Patrol are relentless in our pursuit of those who seek to profit from suffering. We will dismantle these criminal enterprises, protect our communities, and bring every perpetrator to justice—because we will never tolerate those who threaten the safety and dignity of our people.” "This criminal was recognized as both a stash house operator and enforcer for a transnational criminal organization, thanks to our diligent collaboration with law enforcement partners." said Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) El Paso Special Agent in Charge Jason T. Stevens. “This prison sentence delivers a powerful message to human smugglers who engage in holding hostage and exploiting vulnerable individuals: we are fully committed to collaboration and the protection of our communities, and we will relentlessly hold these ruthless transnational criminal organizations accountable.” “Criminal organizations like ‘La Empresa’ and other TCOs are not in the business of helping people. Their sole motive is profit, with no regard for human life,” said El Paso Sector Chief Walter N. Slosar. “The U.S. Border Patrol remains committed to working alongside our law enforcement partners to dismantle these criminal networks. Those who put innocent lives at risk will be identified, apprehended, and prosecuted to the fullest extent of the law.” The FBI, ICE HSI, and USBP investigated the case. Assistant U.S. Attorneys Mathew Engelbaum and Kyle Myers prosecuted the case. ###


title: Arizona Man Charged With Conspiracy To Commit Bank Fraud And Theft Of $1 Million In Federal Grants For HIV Programs

component: USAO - New Jersey

body_text: NEWARK, N.J. – Yesterday, a complaint was unsealed charging an Arizona man for his role in a conspiracy to misappropriate government funds used to support low-income individuals with HIV, Acting U.S. Attorney Vikas Khanna announced. Brent Lee, 51, of Phoenix, Arizona, was charged by complaint with one count of bank fraud conspiracy and one count of theft of government funds. Lee appeared before U.S. Magistrate Judge Deborah M. Fine in the District of Arizona. According to documents filed in this case and statements made in court: In January 2023, a municipality in Hudson County, New Jersey, issued five checks totaling approximately $1M to a nonprofit charitable organization. The funds for four of the checks originated from a federal grant program that funds a comprehensive system of primary medical care, medications, and essential support for low-income people with HIV. Yet, as alleged in today’s complaint, the nonprofit organization never received the checks. Instead, as alleged, in February and March 2023, Lee conspired with others to use a fraudulent business entity to misappropriate nearly all of the funds derived from the checks. In February 2023, Lee filed articles of incorporation in Wyoming for a business entity with a name nearly identical to the nonprofit’s, and opened a bank account for that entity. From February to March 2023, the checks were deposited into that account, and Lee paid himself, a family member, and various other individuals nearly all the proceeds via cash withdrawals, cashier’s checks, and wire transfers. As a result, the bank recorded a loss of approximately $1M. The charge of bank fraud conspiracy carries a maximum penalty of 30 years in prison and a maximum fine of $1,000,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of theft of government funds carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. Acting U.S. Attorney Khanna credited special agents and members of the FBI’s Public Corruption and Civil Rights Unit in Newark, under the direction of Acting Special Agent in Charge Terence G. Reilly, and the New Jersey Field Office of the U.S. Department of Health and Human Services’ Office of the Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, with the investigation leading to the charges and arrest. The government is represented by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. ### Defense Counsel: Jazmin Alagha, Esq. lee.complaint.pdf


title: Railroad employee pays to settle False Claims Act liability

body_text: HOUSTON – A 53-year-old federal railroad employee has agreed to pay $24,000 to resolve potential violations related to his submission of unemployment benefit claims under the Railroad Unemployment Insurance Act during the COVID-19 pandemic, announced U.S. Attorney Nicholas J. Ganjei. Between April 20, 2020, and Aug. 27, 2021, Chad Gillingwater, Katy, allegedly falsely claimed federal unemployment benefits. Gillingwater was not entitled to those funds because he was already receiving state unemployment benefits and/or paid leave from his employer at the same time. Gillingwater also received additional benefits under The Coronavirus Aid, Relief and Economic Security Act, which extended unemployment insurance benefits for railroad workers sidelined during COVID-19. The U.S. Attorney’s Office conducted the investigation with assistance from the Railroad Retirement Board - Office of Inspector General. Assistant U.S. Attorney (AUSA) Michelle Luong handled the matter.


title: Jury Convicts Former KC Police Officer of $200,000 Charity Fraud Scheme

body_text: KANSAS CITY, Mo. – A former Kansas City, Mo., police officer who ran an anti-crime charity has been convicted in federal court of a scheme in which he spent more than $200,000 in donations for his own personal expenses. Aaron Wayne McKie, 47, was found guilty on Thursday, Feb. 20, of nine counts of wire fraud and one count of money laundering. McKie worked as a police officer for the Kansas City, Mo., Police Department for 24 years, assigned as a police officer to the Crime Free Multi-Housing section from 2002 through 2023. McKie served from 2009 to 2023 as president of Mid-America Crime Free, Inc. (MACF), a non-profit organization that claimed to provide training to persons in the rental housing industry and promote anti-crime programs. He was an officer of the charity for three years prior, from 2006 to 2009. Evidence produced during the trial indicated that McKie devised a scheme to defraud MACF and its donors that began in July 2009 and lasted until October 2023. Individuals and businesses contributed $387,620 to MACF, not including in-kind donations. McKie spent at least $200,060 for his own personal purposes. The biggest source of MACF funds was an annual golf tournament, “Fairways 4 Fuzz Golf Tournament.” Individuals and businesses donated both money and in-kind donations, such as food and beverages, to MACF via the golf tournament. At least 121 donors have been identified. From 2009 to 2023, the flyers soliciting donations and players for the tournament claimed the funds raised would enable MACF to provide free seminars to owners of rental properties and train police officers. In reality, those claims were false. The Kansas City Police Department paid the salaries and expenses of Crime Free Multi-Housing unit officers who may have provided training to landlords; McKie used the majority of MACF funds for personal spending; and the IRS had revoked the organization’s tax-exempt status in 2010. Under federal statutes, McKie is subject to a sentence of up to 20 years in federal prison without parole on each of the 10 counts on which he was convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for nine hours before returning guilty verdicts to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, Feb. 10. This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney and Special Assistant U.S. Attorney Amanda Hanson. It was investigated by the FBI and the Kansas City, Mo., Police Department.


title: Founder of Haitian Orphanage Convicted for Sexually Abusing Boys in his Care

component: Criminal Division

body_text: A federal jury in Miami convicted a Colorado man yesterday for sexually abusing numerous boys at the orphanage he founded and directed in Haiti. According to court documents and evidence presented at trial, Michael Karl Geilenfeld, 73, most recently of Littleton, founded St. Joseph’s Home for Boys — a home for orphaned, impoverished, and otherwise vulnerable children in Haiti — in 1985 and operated it for more than two decades. During this time, Geilenfeld repeatedly traveled from the United States to Haiti, where he sexually abused the boys entrusted to his care. The jury convicted Geilenfeld of one count of traveling in foreign commerce for the purpose of engaging in illicit sexual conduct and six counts of engaging in illicit sexual conduct in a foreign place, between 2005 and 2010. Each of the six counts of engaging in illicit sexual conduct in a foreign place relates to a particular victim who was a child at the time of the offense. Each of the six victims testified about the sexual abuse they suffered at the hands of Geilenfeld, as did four other victims who were not the subject of the charged offenses. Geilenfeld is scheduled to be sentenced on May 5 and faces a maximum penalty of 30 years in prison on each of the seven total counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Immigration and Customs Enforcement Homeland Security Investigations Miami and the FBI Miami Field Office investigated the case. Trial Attorneys Jessica L. Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Lacee Monk for the Southern District of Florida are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc .


title: Howey-In-The-Hills Resident Pleads Guilty To Embezzling Employment Taxes

component: USAO - Florida, Middle

body_text: Ocala, Florida – Acting United States Attorney Sara C. Sweeney announces that Dorian Farmer has pleaded guilty to one count of failure to pay employment trust fund taxes and two counts of willfully failing to file tax returns. Farmer faces a maximum penalty of five years in federal prison for the employment trust fund offense and up to one year of imprisonment for each willful failure to file tax return offenses. A sentencing date has not yet been set. According to court documents, Farmer was the owner of several businesses in Howey-In-The-Hills in Lake County. For years, Farmer collected employment trust fund taxes from his employees—such as those that pay for Social Security or Medicare. Rather than turning these taxes over to the Internal Revenue Service (IRS), Farmer embezzled the funds for his own use. He took large cash distributions from one of his businesses which went unreported to the IRS. Farmer also failed to file tax returns for himself and one of his businesses, Titleist Technologies, Inc. (d/b/a Summit Joint Performance) for tax year 2000, as required under federal law. Farmer’s criminal acts resulted in a total tax loss of $806,653. This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.


title: Lake City Man Sentenced To Over 10 Years For Selling Methamphetamine

body_text: Jacksonville, Florida – Senior United States District Judge Timothy J. Corrigan has sentenced Jeremy Leonardo Roldan (52, Lake City) to 10 years and 4 months in federal prison for selling 50 grams or more of a substance or mixture containing methamphetamine. Roldan pleaded guilty on October 3, 2024. According to court documents, on December 11, 2023, Roldan sold methamphetamine to an undercover law enforcement officer. Roldan previously sold methamphetamine to the undercover officer at least two prior times. Roldan was responsible for selling 59 grams of pure methamphetamine. While selling narcotics, Roldan was on supervised release for the same offense. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Columbia County Sheriff’s Office, and the Lake City Police Department. The case was prosecuted by Assistant United States Attorney John Cannizzaro.


title: Previously Convicted Sex Offender Sentenced to Life in Prison for Producing Child Pornography

body_text: WASHINGTON – Victor Armando Simms, 54, a previously convicted sex offender who most recently lived in Southeast Washington D.C., was sentenced today to life in federal prison in connection with his sexual abuse of multiple young girls, recording many of the incidents, and amassing a library of 3,300 still images and over 250 videos depicting the sexual abuse of children. The sentencing was announced by U.S. Attorney Edward R. Martin, Jr., FBI Special Agent in Chief Sean Ryan of the FBI Washington Field Office Criminal and Cyber Division, and Chief Pamela Smith of the Metropolitan Police Department. Simms, aka “Stacey Patrick Simms,” pleaded guilty on May 20, 2024, before U.S. District Judge Tanya S. Chutkan to first degree child sexual abuse with aggravating circumstances, two counts of aggravated sexual abuse with children, three counts of sexual exploitation of children, and possession of child pornography. According to court documents, law enforcement was called on January 15, 2023, when a young girl discovered explicit images of child sexual abuse depicting herself on an iPad belonging to Simms. The same day, Simms was formally placed under arrest and charged by complaint with one count of first-degree child sexual abuse in D.C. Superior Court. On January 17, 2023, the FBI’s Child Exploitation and Human Trafficking Task Force executed a search warrant at Simms’s residence and seized multiple electronic devices including an iPad and a one-terabyte external hard drive. In addition, law enforcement agents seized numerous pills and pill bottles, which were believed to be used to sedate the young victims. Many of the videos produced by Simms showed the young victims asleep during the sexual assaults. The forensic examination of the external hard drive revealed 3300 still images and 250 videos depicting the sexual abuse of children, many of which included metadata indicating the date, time, and location where the file was initially produced. The metadata indicated that the minor female victims were sexually exploited and abused by Simms in Washington D.C., and at hotels in Maryland and Virginia. The investigation into this matter also revealed that Simms has engaged in acts of child sexual abuse and sexual exploitation of minors since approximately 1997. According to court documents, Simms is a previously adjudicated sex offender. He was convicted in North Carolina in 2005 of indecent liberties with a six-year-old child and a felony child sex act. According to court documents, Simms used drugs to incapacitate some of the children, but not all, to make it easier to abuse them and to ensure they had no memory of his criminal conduct. He recorded the sexual abuse of these children, including anally and vaginally penetrating them, to ensure he had souvenirs of his crimes to carry with him. He raped and abused at least ten young victims. This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents and detectives from the Metropolitan Police Department, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. This case was prosecuted by Assistant U.S. Attorneys Jocelyn Bond, Sarah Folse, and Caroline Burrell. The prosecution team received valuable assistance from Victim-Witness Advocate Yvonne Bryant and Paralegal Specialist Melissa Macechko, as well as former Paralegal Specialist Alexis Spencer-Anderson. 23cr41


title: Guatemalan National Indicted for Illegal Reentry

component: USAO - Massachusetts

body_text: BOSTON – A Guatemalan man residing in Medford has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation. Christian Estuardo Sanchez, 41, was indicted on one count of unlawful reentry of a deported alien. He will appear in federal court in Boston at a later date. According to the indictment, Sanchez was deported from the United States on Sept. 14, 2010. It is alleged that sometime after his removal, Sanchez illegally reentered the United States without permission. Sanchez was detained by Immigration and Customs Enforcement on Jan. 27, 2025. The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. The defendant will also be subject to deportation upon completion of any sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley and Patricia H. Hyde, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement. Assistant U.S. Attorney Allegra Flamm of the Major Crimes Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Orange Park Man Sentenced To Two Years’ Imprisonment For Firearms Violation

body_text: Jacksonville, Florida – Senior United States District Judge Brian J. Davis has sentenced D’eante Corker (25, Orange Park) to two years in federal prison for possession of a firearm by a convicted felon. Corker was found guilty on November 26, 2024, following a bench trial. According to court documents, on March 27, 2024, a deputy from the Clay County Sheriff’s Office conducted a traffic stop on a vehicle driven by Corker. During the stop, a canine officer arrived at the scene and his canine alerted to the presence of narcotics in the vehicle, which led to a search of Corker’s vehicle. During the search, a loaded Smith & Wesson pistol was found under the hood of the vehicle. Corker admitted to knowing about the firearm under the hood and that he was unable to lawfully possess firearms as a convicted felon. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sherriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro. 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: Mexican National Indicted For Aggravated Identity Theft And Passport Fraud

body_text: Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces the return of an indictment charging Jose Manuel Ortiz Perdomo (41) with aggravated identity theft and making a false statement on a passport application. If convicted, Ortiz Perdomo faces a minimum sentence of 2 years, up to 12 years, in federal prison. According to court records, on October 18, 2024, Ortiz Perdomo applied for a passport in a name that was not his own. Prior to applying for the passport, Ortiz Perdomo obtained means of identification in the victim’s name. When Ortiz Perdomo applied for the passport, he pretended to be the victim and submitted the fraudulent identification as his own. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the U.S. Department of State’s Diplomatic Security Service (DSS). It is being prosecuted by Special Assistant United States Attorney Michael Leath.


title: Jackson Man Pleads Guilty to Child Exploitation, Cyberstalking, and Sextortion Offenses

body_text: Jackson, MS – A Jackson man entered a guilty plea to federal charges relating to a “sextortion” scheme that targeted multiple victims, including minors, across several states. According to court documents and statements made in court, Marquez Cameron Jones Weston, 22, operated a “sextortion” scheme in which he engaged in cyberstalking, interstate threats, extortion, attempted production of child pornography, and transportation of child pornography over the internet. As part of the scheme, Weston attempted to and did extort money and sexually explicit photographic images and videos from numerous female victims, some of whom were minors, over the internet. Weston pleaded guilty to attempted production of child pornography, transportation of child pornography over the internet, extortion, and cyberstalking. He is scheduled to be sentenced on August 27, 2025 and faces a mandatory minimum sentence of at least 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement. The FBI is investigating the case with assistance from the Sam Houston State University Police Department. Assistant U.S. Attorneys Kimberly T. Purdie and Dave Fulcher are prosecuting the case. The FBI provides the following six tips on how people can protect themselves from sextortion schemes: Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you. Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers. Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims. Be suspicious if you meet someone on one game or app and this person asks you to start talking on a different platform. Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next. Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. If you, your child, or someone you know is being exploited via sextortion, contact your local FBI field office , call 1-800-CALL-FBI (1-800-225-5324), or report it online at the Internet Crime Complaint Center (IC3) . Additional resources can found at Sextortion and Financially Motivated Sextortion — FBI . If you believe you are a victim in this particular case, please also contact the United States Attorney's Office for the Southern District of Mississippi.


title: Lithia Nurse Pleads Guilty To Tampering With Injectable Fentanyl And Falsifying Hospital Records

body_text: Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces that Lisa Williams (56, Lithia) has pleaded guilty to six counts of tampering with a consumer product and six counts of acquiring a controlled substance by misrepresentation. Williams faces a maximum penalty of 10 years in federal prison for each count of tampering and up to 4 years in federal prison for each acquisition offense. A sentencing date has not yet been set. According to court documents, on October 30, November 5 and 28, and December 3, 9, and 10, 2023, Williams – a Florida licensed registered nurse (RN) – removed injectable fentanyl from a secure drawer at Hospital #1. Thereafter, Williams tampered with the injectable fentanyl by removing a portion of the controlled substance from its container for her own personal use. After removing the injectable fentanyl from the infusion bag, Williams swapped it with another container she had already tampered with and put it back into circulation. By tampering with the injectable fentanyl, Williams acted with reckless disregard that Hospital #1 patients would be placed in danger of death or bodily injury and under circumstances manifesting extreme indifference to such risk. Williams also knowingly manipulated the hospital records to falsely report a canceled transaction and give the fraudulent appearance that nothing was removed from the secure drawer. This case was investigated by the Food and Drug Administration—Office of Criminal Investigations and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Greg Pizzo.


title: Sanford Man Sentenced To 20 Years In Prison For Enticement Of A Minor

body_text: Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Matthew Reed Dione (37, Sanford) to 20 years in federal prison for enticement of a minor to engage in sexual activity. Dione will also forfeit two hard drives and a cellphone, which were used to commit the offense. Dione entered a guilty plea on July 2, 2024. According to court documents, Dione met a minor victim on a teen dating website when Dione was 32 years old. He engaged in inappropriate chats with the minor victim prior to picking up the victim from the victim’s home late at night and taking the victim to his home. At his home, Dione sexually abused the victim and recorded the activity. In January 2023, the FBI executed a search warrant at Dione’s home and seized multiple electronic devices. During a forensic extraction of the seized devices, the FBI located numerous videos and images of sexual abuse. In many of those videos and images, the minors had Dione’s name written on their bodies. The FBI was able to identify three additional victims from the sexual abuse material found on Dione’s devices. The evidence on the devices showed that Dione had been targeting teenage girls for more than a decade. This case was investigated by the Federal Bureau of Investigations. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones. This is another case 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: California Man Indicted For Production Of Child Sexual Abuse Material And Coercion And Enticement Of A Minor

body_text: Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces the unsealing of an indictment charging Rigoberto Rios Gallardo (31, Los Angeles, California) with three counts of production of child sexual abuse material and one count of coercion and enticement of a minor to engage in sexual activity. If convicted on all counts, Rios Gallardo faces a maximum penalty of life in federal prison. According to the indictment, on three dates in August and September 2024, Rios Gallardo used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction. Between August and December 2024, Rios Gallardo knowingly persuaded, induced, enticed and coerced a minor 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 the FBI and the North Port Police Department. It will be prosecuted by Assistant United States Attorney Courtney Derry. 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: Saad Healthcare Agrees to Pay $3M to Settle False Claims Act Allegations That It Billed Medicare for Ineligible Hospice Patients

component: Civil Division

body_text: Note : View the settlement here . Saad Enterprises Inc., doing business as Saad Healthcare, has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by knowingly submitting false claims for the care of hospice patients in Alabama who were ineligible for the Medicare hospice benefit because they were not terminally ill. Hospice care is special, end-of-life care intended to comfort terminally ill patients. Patients admitted to hospice care generally stop receiving traditional medical care designed to cure their terminal condition and instead receive medical care focused on providing them with relief from the symptoms, pain, and stress of a terminal illness. Medicare patients are considered to be terminally ill and hospice-eligible when they have a life expectancy of six months or less if their illness runs its normal course. “Respectful and appropriate end-of-life care is the crux of the hospice benefit under Medicare,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will hold accountable those who exploit this benefit for their own gain.” “Caring for terminally ill people is a responsibility the United States and the Medicare program take seriously,” said Acting U.S. Attorney Keith A. Jones for the Southern District of Alabama. “Patients and taxpayers deserve not to be cheated, and the Department of Justice will continue to protect them.” The settlement resolves allegations that between 2013 and 2020 Saad submitted, or caused the submission of, false claims to Medicare for 21 patients who did not meet the eligibility requirements for the Medicare hospice benefit as defined by statute and regulation, despite Saad knowing the patients were ineligible for the Medicare hospice benefit. The civil settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam lawsuit was filed by Melissa Wolff and Whitney Sims, former Saad employees, and is captioned United States ex rel. Wolff & Sims v. Saad Enterprises, Inc. , Case No. 1:19-cv-00040 (S.D. Ala.). Ms. Wolff and Ms. Sims will receive $540,000 in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort amongst the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Alabama; and the Department of Health and Human Services Office of Inspector General. The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Assistant U.S. Attorney Nina Herring for the Southern District of Alabama and Trial Attorney Rory Skaggs of the Civil Division handled the matter. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Sextortionist gets 24 years for victimizing minors online

body_text: HOUSTON – A 22-year-old New York native has been sentenced for production of child pornography, coercion and enticement of minors and cyberstalking, announced U.S. Attorney Nicholas J. Ganjei. Tyler N. Grundstrom pleaded guilty Oct. 8, 2024. U.S. District Judge Andrew Hanen has now sentenced Grundstrom to a total of 288 months in federal prison. When he is eventually released, he will be on supervised release for the rest of his life, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Grundstrom will also be ordered to register as a sex offender. “The significant sentence in this case is a reminder of how seriously the Department of Justice takes the online victimization of minors,” said Ganjei. “Gone are the days where the predator lives next door or down the street; now a would-be exploiter can be thousands of miles away. Grundstrom, and similar online predators, are the reason why parents need to know who is talking to their child online.” “This case is a chilling reminder there are twisted criminals, like Tyler Grundstrom, who use the internet’s anonymity to manipulate children’s innocence for their own sick ends,” said FBI Houston Special Agent in Charge Douglas Williams. “I want to remind every child and parent to remain vigilant, especially on social media, because predators regularly use these platforms to find their victims. Today’s sentencing shows the FBI will relentlessly hunt down those who harm children, no matter where they live, and ensure they face the full force of the law for their vile crimes.” Grundstrom used popular online communication platforms to identify and target young girls for extortion and exploitation. Grundstrom would manipulate, threaten and coerce the victims into producing explicit and offensive content. The investigation revealed more than one victim in at least two states had been targeted, and the abuse occurred from 2021 and continued through 2022. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the future. FBI Houston and FBI Atlanta’s Athens Resident Agency conducted the investigation. The case was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Mexican National Sentenced to 5 Years Federal Prison for Illegal Reentry Following Multiple Deportations

body_text: CHARLESTON, S.C. — Fermin Ortuno Valdovinos, 47, of Summerville, has been sentenced to five years in federal prison for illegal reentry of an alien after removal, subsequent to a conviction of an aggravated felony, and violation of supervised release. Evidence obtained in the investigation revealed that Valdovinos has a lengthy criminal history. He has reentered the country three times following three separate deportations. Additionally, Valdovinos has convictions for child sex crimes in the U.S. On July 13, 2009, ICE officers encountered Valdovinos in the Anaheim City Jail in California where he was being held for charges of lewd and lascivious acts upon a child under 14 and forcible lewd and lascivious acts upon a child under 14. Valdovinos was interviewed and questioned regarding his immigration status in the United States and admitted entering the United States without being inspected, admitted, or paroled by an Immigration Officer. On March 28, 2011, Valdovinos was convicted in the California Superior Court in Orange County, California of the offense of lewd and lascivious acts upon a child under 14 and sentenced to six years’ imprisonment, and for two counts of the offense of forcible lewd and lascivious acts upon a child under 14. He was sentenced to 12 years’ imprisonment. While serving his sentence for child sex crimes, an Immigration official in San Berdino, California ordered Valdovinos to be removed to Mexico. Valdovinos was removed from the United States to Mexico on July 2, 2019. Days later on July 11, 2019, near Sasabe, Arizona, Valdovinos illegally entered the United States and was encountered by a United States Border Patrol (USBP) agent. On Oct. 1, 2019, Valdovinos pleaded guilty to illegal reentry into the United States, subsequent to a conviction for a felony, in the United States District Court for the District of Arizona. On Jan. 6, 2020, Valdovinos was sentenced to 24-months’ imprisonment and 36-months’ supervised release. On April 14, 2021, the Order of Removal was executed, whereby Valdovinos was removed from the United States to Mexico for a second time. On July 8, 2022, in San Clemente, California, Valdovinos illegally entered the United States and was encountered by the USBP. On Sept. 21, 2022, Valdovinos pled guilty to improper attempted entry by an alien, in the United States District Court for the Southern District of California. He received a six month sentence. On Oct. 31, 2022, Valdovinos was found to be in violation of the terms of his supervised release in the United States District Court for the Southern District of California and was sentenced to eight months’ imprisonment and 24 months’ supervised release. On July 5, 2023, the Order of Removal was executed, whereby Valdovinos was removed from the United States to Mexico for the third time. At some point following the third removal, Valdovinos again reentered the U.S. On June 20, 2024, the Berkeley County, South Carolina Sheriff’s Office arrested Valdovinos for failing to register as a sex offender. Valdovinos was charged with illegal reentry of an alien after removal, subsequent to a conviction of an aggravated felony. United States District Judge Richard M. Gergelsentenced Valdovinos to 50 months imprisonment, to be followed by a three-year term of supervised release. Judge Gergel also sentenced Valdovinos to 10 months imprisonment for violation of supervised release, to be served consecutive to the 50-month term of imprisonment. This case was investigated by the U.S. Department of Homeland Security-U.S. Immigration and Customs Enforcement- Enforcement and Removal Operations. Assistant U.S. Attorney Dean H. Secor is prosecuting the case. ###