title: Three Convicted for Fraudulently Billing Over $8 Million to Medicare and Medicaid Through Opioid Addiction Treatment Clinics in Kentucky

component: Criminal Division

body_text: A federal jury convicted a Kentucky doctor, a Texas businessman, and a Kentucky woman yesterday for their roles operating a scheme out of a series of addiction treatment facilities in Kentucky that fraudulently billed Medicare and Kentucky Medicaid for over $8 million. According to court documents and evidence presented at trial, Dr. José Alzadon, 61, of Paintsville, Kentucky; Michael Bregenzer, 52, of Richmond, Texas; and Barbie Vanhoose, 62, of West Van Lear, Kentucky, orchestrated their health care fraud scheme through Kentucky Addiction Centers (KAC), which operated in Winchester, Paducah, Paintsville, and London, Kentucky. As part of his role as KAC’s medical director, Alzadon prescribed Suboxone, a controlled substance that can be used to treat opioid addiction when properly prescribed under regulations issued by the Drug Enforcement Administration (DEA). Bregenzer served as KAC’s CEO and Vanhoose as KAC’s billing manager. Together, Alzadon, Bregenzer, and Vanhoose ran a scheme that falsely billed taxpayer-funded health programs like Medicare and Medicaid for medical services that were not performed or were falsely represented as more complex than the services provided. They also conspired to falsely bill for services in the name of Alzadon’s elderly father, using Alzadon’s father’s identity to bypass insurance credentialing issues that Alzadon had, and to use Alzadon’s father’s DEA prescribing credentials to prescribe Suboxone, even though Alzadon’s father had not seen the patients for whom he was supposedly issuing prescriptions. Alzadon, Bregenzer, and Vanhoose were each convicted of one count of conspiracy to commit health care fraud, eight counts of health care fraud, and one count of conspiracy to distribute controlled substances using the DEA registration number of another person. They face a maximum penalty of ten years in prison on each health care fraud conspiracy and substantive health care fraud count and four years in prison on the conspiracy to distribute controlled substances count. Alzadon and Vanhoose were also each convicted of two counts of aggravated identity theft and face a consecutive mandatory minimum of two years in prison. Alzadon and Bregenzer are scheduled to be sentenced on June 25 and Vanhoose is scheduled to be sentenced on June 26. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Matthew R. Galeotti, head of the Justice Department’s Criminal Division; Special Agent in Charge Jim Scott of the DEA Louisville Division; Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office; Special Agent in Charge Kelly Blackmon of the Department of Health and Human Service Office of the Inspector General (HHS-OIG); Regional Director Joe Rivers of the Department of Labor Employee Benefits Security Administration (DOL-EBSA); and Kentucky Attorney General Russell Coleman made the announcement. The DEA, FBI, HHS-OIG, DOL-EBSA, and the Kentucky Medicaid Fraud Control Unit investigated this case. Trial Attorneys Dermot Lynch, Sarah Edwards, and Samad Pardesi of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Federal jury convicts Virginia Beach man for auto loan scheme and identity theft

component: Federal Bureau of Investigation (FBI)

body_text: NORFOLK, Va. – A federal jury convicted a Virginia Beach man today on 19 charges of bank fraud, wire fraud, aggravated identity theft, and false representation of a social security number. According to court records and evidence presented at trial, Dion Lamont Camp, 40, spent years conning numerous women into romantic relationships and then leveraging those relationships to obtain fraudulent loans and credit cards. He would show the women fake tax documents and ask for their help, claiming that the IRS had frozen his accounts and promising to repay the money when the matter was cleared up. Camp caused six fraudulent loans from a national credit union in 2020 through 2022 for cars that were either ghost purchased, meaning the car was never purchased at all and there was never any collateral securing the loan, or double financed, meaning Camp procured financing both from the credit union and from the car dealership for the same car, thereby obtaining the credit union loan proceeds and the car. As part of the scheme, Camp opened shell businesses with names closely resembling that of actual used car dealerships in Hampton Roads. He then persuaded two women, identified as Jane Doe (JD) 2 and JD5, to open corresponding business bank accounts. Once those accounts were open, Camp persuaded JD2, JD5, as well as four other women, JD3, JD4, JD6, and JD7, to apply for automobile loans in their own names at the credit union. Camp convinced the women he could not obtain a loan himself because his accounts were erroneously frozen and promised to pay them back. After the credit union approved the loan applications and provided checks to the women for the dealerships, they gave the checks to Camp. Camp, using a call spoofing service to make it appear as if he were calling from the legitimate car dealership, called the credit union, impersonated employees at the dealership, and pretended that the loan was being used for various luxury vehicles. Providing the vehicle identification numbers (VINs) for those cars, he successfully obtained the code from the credit union necessary to release the check, which he then negotiated and funneled through the business accounts. JD2 and JD5 withdrew the loan proceeds from those accounts and gave the money to Camp. The four ghost-purchased cars were located across the country and never at the businesses in Hampton Roads. They were never purchased by Camp or the women using the credit union checks, depriving the credit union of its collateral to secure the loans. Camp also conned JD4 and JD7, who had already gotten loan checks from the credit union, to purchase two other luxury cars at a dealership in northern Virginia using in-house financing for over $100,000. Again, Camp cashed the credit union checks, and the credit union was deprived of having the cars as collateral for the loan as the cars were double financed. For two of these fraudulent automobile loans, Camp obtained not only the money from the loan check, but also induced the women to trade in their own cars to help fund the credit union loans. He then sold their cars at local dealerships and kept that money as well. As part of his fraud, Camp also purchased a car in his own name from CarMax as repayment for a friend of the family who gave him money for a car years earlier. To obtain financing, Camp used false information, including that he had been a UPS employee for more than a decade. After Camp was arrested in this case and housed at Western Tidewater Regional Jail, the family friend feared the BMW would be repossessed. Camp called the finance company on a recorded jail call, using another inmate’s account to avoid detection, and convinced the finance company to give him a payment extension on the loan so long as he was still employed at UPS, which he falsely affirmed that he was. Camp also defrauded banks to give personal loans. In 2019, JD8 and JD11 each had little income, so Camp provided them with fraudulent paystubs with inflated income to support personal loan applications to another local credit union. JD8 and JD11 each gave the loan proceeds to Camp, which again he had falsely promised to repay. Camp obtained an American Express credit card using JD3’s personal identifying information without her knowledge. He also obtained supplemental American Express credit cards from the accounts of JD5, JD3, and JD10 using the Social Security number of an individual identified as R.D. R.D., who testified at trial, has never met or had any relationship with Camp. The final charge for which Camp was convicted involved his application for a property rental in Virginia Beach using a false Social Security number, a fake credit report with a highly inflated credit score, and a false IRS business tax filing that showed that his alleged house flipping business, Camp Investments LLC, made hundreds of thousands of dollars a year. In truth, Camp’s business bank account rarely had any significant balance, and Camp never filed taxes for Camp Investments. The evidence at trial revealed that, during the scheme, Camp defrauded both women and banks out of hundreds of thousands of dollars. Camp faces a minimum of two years and up to 392 years in prison when sentenced on Sept. 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Michael Feinberg, Acting Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict. Assistant U.S. Attorneys Rebecca Gantt and Elizabeth M. Yusi are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-63.


title: United States uses civil asset forfeiture to recover $7M of investment fraud proceeds

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – The United States has recovered and cleared title to $7 million of investment fraud proceeds using civil asset forfeiture. The United States will now begin the process of inviting the victims from whom those funds were stolen to submit petitions to have the funds remitted back to them. According to court documents, the perpetrators used social engineering to convince victims to invest in cryptocurrency using spoofed investment websites. The social engineering involved the perpetrators getting to know the victims and earning their trust before introducing them to cryptocurrency investment ideas through the spoofed websites. These websites were set up to mimic legitimate cryptocurrency investment platforms, but funneled victim funds to the perpetrators through over 75 bank accounts in the names of shell companies. The sites falsely represented to the victims that their investments were making sizeable gains. However, when victims would attempt to make withdrawals, the perpetrators would coerce the victims to send even more money using tactics such as claiming the victims owed taxes on their purported profits. The perpetrators laundered victims’ money, often to a location outside the United States. After the perpetrators received the victim funds in the shell company bank accounts, they would transfer them through a series of other bank accounts before ultimately sending them abroad. The wiring instructions affecting these transfers deceptively characterized them as domestic wires, when in fact the funds were bound for a bank outside the United States. In June 2023, agents with the Secret Service seized some of these investment fraud proceeds from a bank account belonging to the foreign bank. The United States began a civil forfeiture action against the seized funds by publicly filing a civil forfeiture complaint in U.S. District Court. The United States then sent notice of the forfeiture action to every person and entity with a potential property interest in the funds, in addition to giving notice more broadly through online publication, providing potential claimants an opportunity to contest the forfeiture action in court. Following a claim by the bank that owned the account from which the funds were seized, the United States reached a settlement in which $7 million of the seized funds would be forfeited to the United States, allowing victims to petition to recover on their losses. Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia and Matthew McCool, Special Agent in Charge for the United States Secret Service’s Washington Field Office, made the announcement after the settlement order between the United States and the foreign bank was issued by U.S. District Judge Rossie D. Alston, Jr. The matter was handled by Assistant U.S. Attorneys Zoe Bedell and Kevin Hudson. Any person who may have been a victim of this investment fraud scheme may contact the United States Secret Service at cryptofraud@usss.dhs.gov . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cv-2333.


title: Large-Scale Fentanyl Supplier from California Sentenced in Washington D.C. to 120 Months in Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: WASHINGTON – Jose Anthony Contreras, 31, of Fullerton, California, was sentenced today in U.S. District Court to 120 months in prison for his role in a nationwide narcotics distribution conspiracy that brought tens of thousands of doses of illegal fentanyl from California into the Washington, D.C. area. The sentence was announced by U.S. Attorney Edward R. Martin, Jr., DEA Special Agent in Charge Ibrar A. Mian of the Washington Division, and Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division. Contreras pleaded guilty on December 6, 2024, to conspiracy to distribute 400 grams or more of fentanyl. In addition to the 120-month prison term, U.S. District Court Judge Amit P. Mehta ordered Contreras to serve five years of supervised release. According to court documents, Contreras was part of a large-scale fentanyl distribution conspiracy that obtained tens of thousands of fentanyl pills in California and then distributed those pills throughout the United States, including the Washington, D.C., metropolitan area. On June 18, 2024, law enforcement arrested Contreras at his residence and executed a search warrant. During the search, law enforcement recovered 600 to 700 fentanyl pills and $5,700 in cash hidden inside the canvas of a painting. Contreras has been detained since his arrest. This case was investigated by the DEA and the United States Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Isabelle Sun, Anthony Scarpelli, and Daniel Seidel of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. 24cr80


title: Oglala Man Sentenced to 17 ½ Years in Federal Prison for Receiving Child Pornography

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced an Oglala, South Dakota, man following his conviction for two counts of Receipt of Child Pornography. The sentencing took place on March 17, 2025. Johnathan Morrison, 34, was sentenced to eight years and nine months in federal prison on each count for a total of 210 months in prison, followed by five years of supervised release on each count with the time to run concurrently, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each count. Morrison was also ordered to pay $95 in restitution to the South Dakota Internet Crimes Investigation Fund and to forfeit his interest in a smartphone. He will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. A federal grand jury indicted Morrison in February of 2024. He pleaded guilty on January 8, 2025. In August 2023, Morrison solicited a 10-year old female to engage in sexually explicit conduct over social media. Shortly thereafter, an adult learned that Morrison had enticed the child and reported Morrison’s criminal actions to the Oglala Sioux Tribe Department of Public Safety. Morrison was immediately apprehended and arrested. His smartphone was seized as evidence. An extraction of his smartphone revealed that prior to August 2023, Morrison downloaded and installed multiple social media platforms, including KIK, Telegram, and Snapchat onto his cellular device. Through these platforms, Morrison solicited, sent, and received images and videos containing child pornography. Some of the images recovered involved prepubescent females engaged in sexual acts. Through his chats, investigators learned that Morrison had an interest in 10-14 year old females. The search also revealed that Morrison had made sexual advances to his girlfriend’s teenage daughter and that he had covertly photographed her over 130 times with his smartphone. 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the FBI, the Oglala Sioux Tribe Department of Public Safety, and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Megan Poppen prosecuted the case. Morrison was immediately remanded to the custody of the U.S. Marshals Service.


title: Rapid City Man Sentenced to Over 2 ½ Years in Federal Prison for Failure to Register as a Sex Offender

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on March 17, 2025. Trevor Red Bird, age 36, was sentenced to two years and nine months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Red Bird was indicted by a federal grand jury in November 2024. He pleaded guilty on January 8, 2025. Red Bird was convicted in U.S. District Court of Abusive Sexual Contact in May 2008. As a result of this conviction, he is required to register as a sex offender and to update his registration. Red Bird was convicted of Failure to Register as a Sex Offender in 2017, 2019, and 2022. In December 2023, Red Bird was released from prison and began supervised release in Rapid City. Initially, Red Bird properly updated his registration. In May 2024, however, he moved from his registered address but did not update his registration. An arrest warrant was subsequently issued and on October 5, 2024, Red Bird was arrested in Rapid City. 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the U.S. Marshals Service and the Rapid City Police Department. Assistant U.S. Attorney Kirk Albertson prosecuted the case. Red Bird was immediately remanded to the custody of the U.S. Marshals Service.


title: Oglala Woman Sentenced to More Than Five Years in Federal Prison  for Voluntary Manslaughter of her Partner

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced an Oglala, South Dakota, woman convicted of Voluntary Manslaughter. The sentencing took place on March 17, 2025. Alexis Wounded, age 26, was sentenced to five years and 10 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Restitution was also ordered. A federal grand jury indicted Wounded in July 2024. She pleaded guilty on December 11, 2024. The conviction relates to Wounded’s act of stabbing her significant other, Roger Big Crow, a single time in his back on April 21, 2024, near Pine Ridge, after a quarrel had broken out. Big Crow died as a result of the stab wound. Wounded, who was highly intoxicated when she killed Big Crow, initially told the FBI that Big Crow fell backwards onto the knife. Wounded eventually admitted she stabbed Big Crow intentionally in her kitchen, though she did not specifically intend or plan to take his life. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court. This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Knox prosecuted the case. Wounded was immediately remanded to the custody of the U.S. Marshals Service.


title: Cryptocurrency Financial Services Firm "Gotbit" and Founder Plead Guilty to Market Manipulation and Fraud Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – Gotbit Consulting LLC (Gotbit), a financial services firm known in the cryptocurrency industry as a “market maker,” and its founder pleaded guilty today in federal court in Boston to criminal charges relating to Gotbit’s fraudulent manipulation of cryptocurrency trading volume on behalf of client cryptocurrency companies. Aleksei Andriunin, 26, of Russia and Portugal, and Gotbit, pleaded guilty to charges of wire fraud and conspiracy to commit market manipulation and wire fraud. Andriunin was arrested in Portugal on Oct. 8, 2024 and extradited to the United States on Feb. 25, 2025. Gotbit and Andriunin were indicted by a federal grand jury on the same charges in October 2024. The indictment also charges two of Gotbit’s directors, Fedor Kedrov and Qawi Jalili. As alleged in court documents, Gotbit was a well-known “market maker” in the cryptocurrency industry. Between 2018 and 2024, Gotbit provided market manipulation services to create artificial trading volume for multiple cryptocurrency companies, including companies located in the United States and companies whose cryptocurrencies traded on platforms available to investors located in the United States. Andriunin was Gotbit’s Founder and Chief Executive Officer. In a 2019 interview, Andriunin described how he developed a code to “wash trade” cryptocurrencies to artificially inflate trading volume for the purpose of getting cryptocurrencies listed on CoinMarketCap (a website that published information about “trending” cryptocurrencies) and trading on larger cryptocurrency exchanges. Andriunin and Gotbit’s employees marketed these wash trading tactics to prospective clients and explained how Gotbit used multiple accounts to avoid detection of the wash trades on the public blockchain. Gotbit made wash trades worth millions of dollars on behalf of clients and received tens of millions of dollars in payments from clients. In connection with its plea, Gotbit admitted that it engaged in manipulative trades to artificially increase the trading price and volume of tokens for clients that included Robo Inu and Saitama. Leaders of those cryptocurrency companies were charged in separate cases unsealed in October 2024 . As part of today’s criminal resolution , Gotbit agreed to cease all operations and forfeit approximately $23 million in seized cryptocurrency. Pursuant to the plea agreement with Andriunin , the government will recommend a sentence of up to two years in prison. Gotbit is the third market maker to resolve criminal charges relating to wash trading in the cryptocurrency industry. In October 2024 , the founder of MyTrade pleaded guilty in connection with providing an unlawful wash trading service identified through an undercover law enforcement operation. In January 2025 , CLS Global FZC LLC pleaded guilty in connection with offering illegal “volume support” services uncovered by the same operation. The Securities & Exchange Commission brought a related civil enforcement action against Gotbit alleging violations of the securities laws. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, a fine of up to $250,000 or twice the gross gain or loss from the offense, restitution and forfeiture. The charge of conspiracy to commit market manipulation and wire fraud provides for a sentence of up to five years in prison, up to three years of supervised release, a fine of up to $250,000 to twice the gross gain or loss from the offense, restitution and forfeiture. 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 Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Valuable assistance was provided by the FBI’s Legal Attaché (Madrid) as well as Portugal’s Policia Judiciaria and Procuraduría General de la República. The Justice Department’s Office of International Affairs coordinated with Portuguese authorities to secure the arrest and extradition of Andriunin. Assistant U.S. Attorneys Christopher J. Markham and David M. Holcomb of the Securities, Financial & Cyber Fraud Unit are prosecuting the case. Assistant U.S. Attorney Carol Head, Chief of the Asset Recovery Unit is handling the forfeiture matter. The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: U.S. Attorney’s Office Charges Over 215 Individuals for Immigration-Related Criminal Conduct in Arizona This Week

component: USAO - Arizona

body_text: PHOENIX, Ariz. – During this week of enforcement operations from March 15, 2025, through March 21, 2025, the U.S. Attorney’s Office for the District of Arizona has brought immigration-related criminal charges against 217 defendants. Specifically, the United States filed 91 cases in which aliens illegally re-entered the United States, and the United States also charged 103 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 15 cases against 23 individuals responsible for smuggling illegal aliens into and within the District of Arizona. These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Recent matters of interest include: United States v. Juan Antonio Ruiz: On March 18, 2025, Juan Antonio Ruiz, a native and citizen of Mexico and lawful permanent resident of the United States, was indicted for violation of Title 18 U.S.C. § 1425(a), Naturalization Fraud. According to the Indictment, in 2015, in his Application for Naturalization, naturalization interview, and Notice of Naturalization Oath Ceremony he provided false statements under oath indicating that he had never committed a crime for which he had not been arrested. In January 2021, Ruiz pleaded guilty to the crimes of Sexual Conduct with a Minor Under Fifteen (from January 2004 through January 2008) and Attempted Molestation of a Child (from September 2003 through September 2006) in the Superior Court of Arizona, Pima County. He was arrested for the crimes in May 2018. Case number CR-25-01502-TUC-AMM. United States v. Jose Alejandro Medrano-Renteria : Medrano-Renteria was arrested and charged by complaint with Transportation of Illegal Aliens for Profit. United States Border Patrol agents attempted a vehicle stop, but Medrano-Renteria failed to yield, and a vehicle immobilization device had to be deployed. The vehicle lost a tire, but the defendant continued to drive until all occupants bailed from the vehicle. With the assistance of a K9, Border Patrol agents located four illegal aliens who had been in the defendant's vehicle. The defendant was located hiding in a tree on a nearby property. He admitted he was being paid $1,000 per alien he smuggled. Case number 25-MJ-01687-MAA. United States v. Tracy Ann Cook; Alex Puella; Yesenia Monique Ortiz: Tracy Ann Cook, Alex Puella, and Yesenia Monique Ortiz were arrested and charged by complaint with Conspiracy to Transport Illegal Aliens for Profit. Tohono O'odham Police Officers stopped the vehicle driven by Cook for a traffic violation. Puella and Ortiz were passengers in the vehicle. Officers located three additional people laying down in the vehicle. When United States Border Patrol agents arrived on scene, the additional three people were determined to be illegal aliens. One of the illegal aliens was determined to be a citizen of Uzbekistan. Case number 25-MJ-01704-MAA. A criminal complaint and criminal indictment are simply methods by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. CASE NUMBERS: CR-25-01502-TUC-AMM 25-MJ-01687-MAA 25-MJ-01704-MAA RELEASE NUMBER: 2025-040_March 21 Immigration Enforcement # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Former Seattle tech worker sentenced to three years in prison for defrauding employer, government programs, and former significant other

component: USAO - Washington, Western

body_text: Seattle – A 31-year-old Seattle resident was sentenced today in U.S. District Court in Seattle to three years in prison for two counts of wire fraud and one count of aggravated identity theft related to his three different fraud schemes, announced Acting U.S. Attorney Teal Luthy Miller. Westcott Francis-Curley has been in custody since March 2024, following his indictment in August 2023. At the sentencing hearing, U.S. District Judge Ricardo S. Martinez imposed three years of supervised release and ordered $689,675 in restitution to the three victims. “Mr. Francis-Curley’s fraud spiral stemmed from greed,” said Acting U.S. Attorney Miller. “After his employer discovered his theft, he stole from a program designed to keep small businesses afloat during the pandemic. And when those proceeds were gone, he committed identity theft against his former romantic partner. This sentence is an important step to break the cycle of fraud.” According to records filed in the case, the first scheme began in 2019, when Francis-Curley embezzled money from his then-employer by misusing cloud computing resources and accounts available to him as an employee. Francis-Curley used employer funds and his employee work authorizations to purchase cloud computing resources, then sell or lease them back to the company—paying himself with company money—at many times their market value. Through this scheme he obtained more than $550,000, and he was caught while attempting to obtain another half-million dollars. He spent significant portions of the proceeds on extravagances, such as trips on private jets, luxury hotel stays and a penthouse apartment at Seattle’s Harbor Steps complex. Even after Francis-Curley was caught and fired, he emailed customer service and corporate executives in an effort to receive an additional half-million dollars. In 2020, Francis-Curley defrauded the Paycheck Protection Program (PPP), a COVID assistance program designed to help small businesses and their employees weather the pandemic. Francis-Curley filed paperwork claiming that two companies he controlled qualified for assistance, when in fact they had no payroll and did not qualify for relief. He obtained nearly $100,000 and spent much of it on personal goods and services. Program funds were limited, meaning his theft deprived other applicants of the needed assistance. Finally, in October 2022, Francis-Curley applied for and obtained a credit card in the name of his former significant other. Francis-Curley used the card for more than $1,000 in personal expenditures. The unpaid bill means the damage from the identity theft continues to impact the victim. In asking the court for the three-year sentence, Assistant United States Attorney David T. Martin wrote of Francis-Curley, “He had a comfortable life and a lucrative job, but that wasn’t enough. Leveraging a bit of Google research and the trust of his employer, Francis-Curley—in his own words—'found a way to make as much money as’ he wanted. Within weeks of commencing the scheme, he was living large: private jets, luxury hotels, cash gifts to friends and family, monthly credit card bills approaching six figures—the list goes on. In two months, he went from paying himself $13,000, to a quarter-million dollars, to—he hoped—a half-million dollars. Only getting caught stopped that unabashed escalation.” Francis-Curley has agreed to pay restitution to his former employer, to the Small Business Administration, and to the person whose identity he used to obtain the credit card for fraud. The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney David T. Martin.


title: 10 Indicted in Alleged Scheme Orchestrated by Street Gang Members  to Smuggle Narcotics into a Riverside County Jail

component: USAO - California, Central

body_text: RIVERSIDE, California – Three people were arrested today pursuant to a federal grand jury indictment alleging a scheme to smuggle narcotics into a Riverside County jail by concealing drugs inside of individuals who would purposely get arrested to deliver the contraband. The three arrested today are among 10 defendants named in the indictment that alleges a scheme to smuggle fentanyl, methamphetamine and heroin into the detention facility. The other defendants charged in the case were already in custody. “Drug smuggling endangers the lives of inmates and the sheriff’s deputies who are sworn to guard them,” said Acting United States Attorney Joseph McNally. “I thank and commend our partners at the FBI and the Riverside County Sheriff’s Department for the time and attention they have paid to this urgent and important matter.” “This investigation highlights the importance of the cooperation and working relationship with our federal partner law enforcement agencies when it comes to public safety,” said Riverside County Sheriff Chad Bianco. “The smuggling of drugs into our jails, particularly with the emergence of fentanyl, has dramatically increased inmate deaths and medical emergencies within our corrections division. I commend the sheriff's investigators and FBI agents who worked tirelessly on this case to ensure those responsible were identified and brought to justice. We will continue to partner with federal agents in our ongoing efforts to keep Riverside County safe.” The conspiracy allegedly was led by Andrew Jesus Ayala, 46, of Riverside, and members of a Riverside-based street gang who worked with three in-custody defendants who wanted to obtain narcotics, a group of facilitators on the street and an at least one drug mule who concealed narcotics in a body cavity, the indictment alleges. The indictment outlines a scheme that began at an unknown date and continued into late 2022, when intercepted phone calls revealed efforts to smuggle narcotics into a Riverside County custody facility. Members of the drug trafficking ring obtain narcotics and recruited individuals who were willing to smuggle drugs hidden inside their bodies, according to the indictment. Leaders of the scheme arranged temporary housing for the drug mules before and after they went into custody and delivered narcotics, according to the indictment, which details steps taken by the smugglers to avoid having the drugs detected by X-ray scanners. In one incident in late 2022, a defendant attempted to smuggle 1¾ ounces of methamphetamine concealed inside his body, but that shipment was intercepted when the contraband was seen on an X-ray machine when the defendant was brought into custody, the indictment alleges. Members of the conspiracy allegedly discussed smuggling fentanyl-laced pills that could be sold inside the jail for 10 times the street price. The indictment unsealed today charges all 10 defendants with conspiracy to possess with intent to distribute and distribute methamphetamine, a charge that carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison. Nine of the defendants are additionally charged with possession with intent to distribute methamphetamine, which also carries a mandatory minimum sentence of five years in federal prison and statutory maximum sentence of 40 years in federal prison. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The FBI and the Riverside County Sheriff’s Department are investigating this matter. Assistant United States Attorneys Peter Dahlquist and Erin C. Kiss of the Riverside Branch Office are prosecuting this case.


title: Buffalo man pleads guilty to child pornography charges

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Alexander J. Weidner, 35, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography involving a prepubescent minor, which carries a maximum penalty of 20 years in prison, and a fine of $250,000. Assistant U.S. Attorney Douglas A.C. Penrose, who is handling the case, stated that on February 28, 2023, a federal search warrant was executed at Weidner’s residence as a result of child pornography uploaded to Snapchat and Instagram accounts, both associated with Weidner. Investigators seized two cellular telephones, which contained approximately 4,843 images and 371 videos of child pornography. Some of the images depicted minors under the age of 12 engaged in sexually explicit conduct. In addition, on two occasions, Weidner used the Session application to upload and share a video file containing child pornography with another Session user. The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the New York State Police, under the direction of Major Amie Feroleto, and the National Center for Missing and Exploited Children. Sentencing is scheduled for July 29, 2025, at 9:30 a.m. before Judge Vilardo. # # # #


title: Arkansas man arrested, charged with enticing a minor in West Seneca

body_text: BUFFALO, N.Y.- U.S. Attorney Michael DiGiacomo announced today that Brayden Storey, 21, of West Fork, Arkansas, was arrested and charged by criminal complaint with enticement of a minor, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life. Assistant U.S. Attorney Maeve E. Huggins, who is handling the case, stated that according to the complaint, on June 13, 2024, the West Seneca Police Department received a report from a minor victim of an incident involving an individual that she met online. The victim said that Storey first contacted her on Instagram in September 2022, when she was 13 years-old and he was 19 years-old. He also communicated with the minor victim through the social media platform Discord and text message. Between September 2022, and September 2023, they talked about video games and anime shows. At times, Storey made sexual comments, but in October 2023, the sexual communications that Storey sent to the minor victim significantly increased. Storey sent the minor victim a nude image of himself and repeatedly asked her to send him sexually explicit images. Between October 2023, and March 2024, Storey and the minor victim exchanged sexually explicit images. In March 2024, the minor victim blocked Storey on all social media applications. As a result, he created another Instagram account to contact her. In April 2024, Storey called the minor victim approximately 50 times in a two-day span, but she did not answer the calls and blocked Storey’s phone number so that he could not contact her. In May 2024, Storey sent the minor victim a four-page letter in the mail at her residence, writing about his suicidal ideations and his desire to be in a relationship with her, regardless of their age difference. Along with the letter, Storey provided a lock of his hair. a search of the minor victim’s phone recovered nude images of Storey and child pornography. Storey made an initial appearance in the Western District of Arkansas and was detained. He will be returned to the Western District of New York at a later date. The complaint is the result of an investigation by the West Seneca Police Department, under the direction of Chief Brian Cosgrove, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. Additional assistance was provided by the Little Rock Office of the FBI, the Washington County Sheriff’s Office, the Benton County Sheriff’s Office, the Arkansas State Police, and Assistant U.S. Attorney Devon Still, with the U.S. Attorney’s Office in the Western District of Arkansas. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Federal grand jury indicts Jamestown woman for her role in Jamestown drug conspiracy

body_text: BUFFALO, N.Y. –U.S. Attorney Michael DiGiacomo announced today a federal grand jury returned an indictment charging Latika Saintkitts a/k/a Tika, 34, Jamestown, NY, with narcotics conspiracy, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life. Assistant U.S. Attorneys Joshua A. Violanti and Louis A. Testani, who are handling the case, stated that according to the indictment, between 2018, and May 26, 2022, Saintkitts conspired with Joseph S. Zaso and others, to sell heroin and fentanyl in the Jamestown area. Co-defendants include Andres Pizzaro Campos, Max Pizzaro Campos, Cindy Frank, Edward Leeper, and Jaquez L. Thomas. Joseph Zaso was previously charged and convicted and is awaiting sentencing. Saintkitts was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and released. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Pierce County woman sentenced to 84 months (24 months on count 1 consecutive to 60 months on count 2) in prison for role in drug ring and firearms possession

body_text: Tacoma – A high-level drug redistributor for a drug ring connected to Aryan prison gangs was sentenced today to 84 months (24 months on count 1 consecutive to 60 months on count 2) in prison for drug and gun possession, announced Acting U.S. Attorney Teal Luthy Miller. C’La Morales, 39, of Pierce County, was arrested as part of an extensive drug trafficking investigation of three interrelated drug distribution organizations tied to Aryan prison gangs operating both inside and outside state prisons. Morales served as a key associated of the leader of one distribution ring, Jesse Bailey, who has pleaded guilty to conspiracy to distribute controlled substances, possession of a firearm in furtherance of drug trafficking, and conspiracy to commit money laundering. At the sentencing hearing U.S. District Court Judge David Estudillo said, “You took on the responsibility to distribute large quantities of controlled substances. You had to know those were going to … lead to addiction and wreak havoc for those individuals and their families, friends, and loved ones.” According to records filed in the case, Morales was a trusted member of the drug ring who trafficked fentanyl, heroin, and methamphetamine and possessed multiple firearms. The wiretap evidence in the case revealed that she was purchasing and distributing 10 ounces of heroin and 10,000 fentanyl pills at a time. Morales was well aware of the significant fire power Jesse Bailey kept to protect his drug trafficking activities including fully automatic weapons. When law enforcement searched Morales’ storage locker and vehicle, they seized 5,815 fentanyl laced pills that were fraudulently stamped with the imprint for prescription Oxycodone and 480 grams of heroin. Within arm’s reach of the drugs, agents located a loaded Mossberg shotgun, several boxes of 12-gauge shotgun ammunition, and $5,183 of drug trafficking proceeds. In Morales’ car they found additional guns: On the floorboard between the front driver’s seat and passenger seat, law enforcement found a lock box containing two pistols with loaded magazines. In asking for a ten-year prison sentence, prosecutors wrote to the court with concern about Morales’ drug trafficking history. “Morales is not new to drug trafficking while armed with firearms. In 2019 she was arrested for drug trafficking while armed with a firearm that eventually resulted in convictions for unlawful possession of controlled substances with intent to distribute and unlawful possession of a firearm. Morales committed the current charges while on warrant status for the Pierce County drug court program. Thus, despite her clear drug addiction and need for treatment, it is difficult to trust that she will maintain compliance with treatment and not return to trafficking controlled substances.” Morales was sentenced to five years of supervised release following prison. This prosecution is one of some two dozen related to a lengthy investigation of South Sound based drug trafficking rings. On March 22, 2023, Law enforcemen t made two dozen arrests on federal charges. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms. The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS). The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.


title: Jamestown man pleads guilty to meth charge

body_text: BUFFALO, NY—U.S. Attorney Michael DiGiacomo announced today that Aaron Miller, 31, of Jamestown, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, methamphetamine, which carries a maximum penalty of 20 years in prison, and a $1,000,000 fine. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that Miller bought and sold methamphetamine and cocaine for profit and for his own use. He received large quantities of methamphetamine and cocaine from co-defendant Jun Martinez, a Jamestown drug dealer, and from others. Miller then distributed the drugs to other individuals in the Jamestown area, for profit. Co-defendants Jun Martinez, La Huynh, and Antasia Babcock were previously convicted and awaiting sentencing. This effort is part of an Organized Crime Drug Enforcement Task Forces (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 . The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the Jamestown Police Department, under the direction of Chief Timothy Jackson. Sentencing is scheduled for July 22, 2025, at 10 a.m. before Judge Sinatra. # # # #


title: Federal Way, Washington woman indicted for bank and wire fraud for fake investment scheme

body_text: Seattle – A 52-year-old Federal Way, Washington woman was indicted this week by a federal grand jury for three counts of wire fraud and two counts of bank fraud, announced Acting U.S. Attorney Teal Luthy Miller. Jenni Yoon Jeong Lee allegedly held herself out to elderly members of the Korean community as an investment advisor. In reality, the investments went into accounts controlled by Lee and were used for her personal expenses. Lee allegedly defrauded at least 28 victims of over $3 million that was used for her expenses, her family’s expenses or to pay off earlier investors in the style of a Ponzi scheme. “Ms. Lee held herself out as an experienced investment advisor offering her victims a guaranteed return on the funds they placed with her,” said Acting U.S. Attorney Miller. “However, the indictment notes that none of the money was invested and in fact, nearly $1 million of investor funds were accessed and spent at area casinos.” According to the indictment, Lee created various business entities with names that made it seem they were financial investment companies. Lee opened and controlled bank accounts for these shell companies. Lee held herself out as a financial advisor employed at the shell companies. She claimed both orally and in writing that she would place victim investments in funds that would guarantee a safe return, sometimes as high as 10%. She often represented that the principal was fully guaranteed so there was no risk associated with the investment. Lee allegedly got the victims to write checks to one of the shell companies for ‘investment,’ or she induced the client to fund a self-directed IRA at a legitimate financial services company and give Lee access to manage the account. Lee would sometimes provide the financial services company with a promissory note to make it appear the client was loaning money to one of Lee’s shell companies. In this way she gained control of the investor funds. In all Lee took in at least $3 million. Some money was paid back to investors making the full loss amount approximately $2.2 million. Of that, over $900,000 was withdrawn and spent at casinos. The three counts of wire fraud are for specific transfers of funds from self-directed IRA accounts. The two counts of bank fraud are for depositing client checks into one of the shell corporation accounts. These counts are representative acts of the alleged scheme. The charges in the indictment are punishable by up to 30 years in prison. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Sean H. Waite


title: Steuben County sheriff’s deputy arrested on child pornography charges

body_text: ROCHESTER, NY—U.S. Attorney Michael DiGiacomo announced today that Stuart J. McHenry, 34, of Hornell, NY, was arrested and charged by criminal complaint with distribution and receipt of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a fine of up to $250,000. Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the complaint, on July 5, 2024, the National Center for Missing and Exploited Children (NCMEC) received a CyberTip from the instant messaging application Kik, which stated that Kik user “acman990,” uploaded approximately 24 files of suspected child pornography. A review of the files found that approximately 22 of the files constituted child pornography, which he sent to other users via private message. Subsequent investigation traced the account to the defendant. During the course of the investigation, it was determined that McHenry works as a deputy for Steuben County Sheriff’s Office. On October 18, 2024, investigators seized two cellular telephones during the execution of a search warrant at McHenry’s Hornell residence. A forensic review of one of the phones determined that Kik was previously installed on the phone and located evidence of use of the Kik username acman990. A review of McHenry’s iCloud account recovered a number of sexually explicit conversations and child pornography on Kik, including the videos reported in the CyberTip as well as additional videos and images of child pornography. McHenry made an initial appearance this afternoon before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing. The complaint is the result of an investigation by the New York State Police, under the direction of Major Kevin Sucher, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Steuben County Sheriff’s Office, under the direction of Sheriff Jim Allard. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Janesville Man Sentenced to 7 ½ Years for Fentanyl Trafficking and Illegally Possessing Firearms

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Cedric Sanders, 26, Janesville, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 7 ½ years in federal prison for possessing fentanyl intended for distribution and possessing firearms as a felon. Sanders pleaded guilty to these charges on December 5, 2024. In November 2023, Sanders sold fentanyl to a confidential informant on two occasions and to an undercover officer on two occasions. In December 2023, officers searched three homes and two vehicles connected to Sanders. During those searches, officers found two firearms, firearm magazines, ammunition, a firearm suppressor, and a high-capacity firearm drum magazine. They also found $12,960 in cash and 4,545 pills (approximately 396 grams) of fentanyl. Sanders is prohibited from legally possessing firearms because of prior felony convictions. At sentencing, Judge Conley found that the dangers of distributing fentanyl combined with Sanders’s illegal possession of two firearms warranted a significant prison sentence. The charges against Sanders were the result of an investigation conducted by the Janesville Police Department and the Drug Enforcement Administration. The ATF Madison Crime Gun Task Force also assisted with the case. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from state and local agencies throughout the Western District of Wisconsin. Assistant U.S. Attorneys Jennifer Remington and William Levins prosecuted this case. This case is part of Operation Take Back America. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime.


title: Madison Man Sentenced to 7 Years for Illegally Possessing a Firearm

body_text: MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that James Stevens, 42, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 7 years in federal prison for possessing a firearm as a felon. Stevens pleaded guilty to this charge on December 11, 2024. Agents with the Wisconsin Department of Justice used a confidential informant to purchase cocaine and heroin from Stevens. During the investigation, agents searched Stevens’s home and seized 224 grams of cocaine. Agents also found a loaded Smith & Wesson M&P .40 caliber handgun hidden in Stevens’s couch. Stevens is prohibited from legally possessing firearms because of a prior felony conviction In choosing a sentence, Judge Conley balanced Stevens’s stated desire to turn his life around with the danger he posed to the community. The charge against Stevens was the result of an investigation conducted by the Madison Police Department. The ATF Madison Crime Gun Task Force also assisted with the case. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from state and local agencies throughout the Western District of Wisconsin. Assistant U.S. Attorney Louis Glinzak prosecuted this case. This case is part of Operation Take Back America. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime.


title: Arizona Brothers Plead Guilty for Roles in Conspiracies to Fraudulently Obtain Nearly $109 Million in Covid-Relief Funds

component: USAO - Oregon

body_text: PORTLAND, Ore.—Two brothers from Sedona, Arizona, pleaded guilty for conspiring with one another and others to defraud the U.S. Small Business Administration (SBA) out of nearly $109 million in loans intended to help small businesses during the COVID-19 pandemic. Eric Karnezis, 43, pleaded guilty Thursday to conspiring to commit wire fraud. Today, in a separate but related case, Anthony Karnezis, 43, also pleaded guilty to conspiring to commit wire fraud. According to court documents, from January 2021 until at least March 2022, Eric Karnezis carried out a scheme whereby he conspired to gather false and fraudulent business information from customers and used the information to submit at least 350 fraudulent Paycheck Protection Program (PPP) loan applications through Blueacorn, a lender service provider, to Capital Plus Financial, a lender participating in the PPP. To facilitate the scheme, Eric Karnezis and his co-conspirators created fictious documents to support the fraudulent loan applications, including false payroll information and tax documents. In total, Eric Karnezis submitted or caused to be submitted at least 1,300 PPP applications, which together attempted to obtain at least $178 million from Capital Plus Financial, of which approximately $105 million in loans were funded in response to the fraudulent applications. Additionally, Eric Karnezis required applicants to pay a fee for his role in the conspiracy and he received approximately $3 million for submitting the fraudulent applications. Anthony Karnezis carried out a related scheme through at least March 2022, whereby he conspired with his brother, among others, to gather fraudulent business information from customers and used the information to submit at least 140 fraudulent PPP loan applications, through Blueacorn, to Capital Plus Financial. Based on the false and misrepresented information, more than $3.9 million in loans were funded in response to these fraudulent applications. Anthony Karnezis also required applicants to pay a fee for his role in the conspiracy and he received more than $957,000 for submitting the fraudulent applications. On August 21, 2024, a federal grand jury in Portland returned a 23-count indictment charging Eric Karnezis and other defendants with conspiring to commit and committing wire fraud and conspiring to commit money laundering. On February 19, 2025, Anthony Karnezis was charged by criminal information with conspiring to commit wire fraud. Each faces a maximum sentence of 20 years in prison, a $250,000 fine and 3 years of supervised release and will both be sentenced on June 20, 2025, before U.S. District Court Judge Karin J. Immergut. As part of their plea agreements, Eric Karnezis agreed to pay between $25 million and $65 million in restitution to their victims, and Anthony Karnezis agreed to pay between $3.5 million and $9.5 million in restitution to their victims. They have also agreed to forfeit any criminally-derived proceeds and property. This case was investigated by the SBA Office of Inspector General (SBA-OIG), IRS Criminal Investigation (IRS:CI), the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Naval Criminal Investigative Service (NCIS). It is being prosecuted by Meredith Bateman and Robert Trisotto, Assistant U.S. Attorneys for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Julia Jarett, also of the District of Oregon. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Palo Alto Man Back to Federal Prison

component: USAO - Iowa, Northern

body_text: David Specketer, 57, from Emmetsburg, Iowa, was sentenced on March 21, 2025, to 60 months’ imprisonment. Specketer pled guilty in federal court in Sioux City on November 14, 2024, to possession with intent to distribute methamphetamine within 1,000 feet of the Emmetsburg High School, a protected location. Specketer was previously federally convicted of conspiracy to manufacture and distribute methamphetamine in 2013. Evidence at the plea and sentencing hearings showed that on April 15, 2024, law enforcement attempted to arrest Specketer at his residence in Emmetsburg on an outstanding arrest warrant. That warrant involved a pending 2022 case in Woodbury County for possession with intent to deliver methamphetamine. Specketer attempted to flee back into his residence after initial contact with law enforcement at his door. Law enforcement apprehended Specketer in his residence with approximately one ounce of methamphetamine. Specketer admitted he intended to distribute all or some of the methamphetamine to another. Specketer’s residence is within 1,000 feet of the Emmetsburg High School, a protected location. Sentencing was held before United States District Court Judge Leonard T. Strand. Specketer was sentenced to 60 months’ imprisonment, must serve an eight-year term of supervised release following imprisonment, and was ordered to pay $10,000 in fines and court-appointed attorney fees. There is no parole in the federal system. Specketer remains in custody of the United States Marshals Service until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Emmetsburg Police Department, Palo Alto County Sheriff’s Office, Iowa DCI Laboratory, and the Woodbury County Sheriff’s Office. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-3024. Follow us on X @USAO_NDIA.


title: Henry County Resident Pleads Guilty to Possessing Machinegun at Hospital

body_text: MACON, Ga. – A Henry County man who had a stolen Glock 9mm handgun with a loaded 30-round extended magazine capable of converting to a fully automatic weapon while at the Labor and Delivery unit of a hospital has pleaded guilty to possessing a machinegun. Terrell Monquez Searcy, 21, of McDonough, Georgia, pleaded guilty to one count of possession of a machinegun before U.S. District Judge Tilman E. “Tripp” Self on March 20. Sentencing is scheduled for June 4, 2025, in Athens. There is no parole in the federal system. “All those found in possession of machineguns and with illegal conversion devices in the Middle District of Georgia will be held accountable for breaking federal law,” said Acting U.S. Attorney C. Shanelle Booker. “This case exemplifies how law enforcement effectively engages to remove illegal firearms from the streets and hold criminals accountable as we work together to make our communities safer.” “Machinegun conversion devices enable a conventional semi-automatic pistol to function as a fully automatic firearm which is illegal,” said Assistant Special Agent in Charge Beau Kolodka. “Anyone possessing these illegal machinegun conversion devices will be facing felony charges. ATF will continue to work with our law enforcement partners to keep them off our streets.” According to court documents, the stipulation of facts and other statements made in Court, Monroe Police Department officers were dispatched to Piedmont Walton Hospital on Aug. 17, 2023, after a nurse observed Searcy in a Labor and Delivery room with a handgun, which is prohibited in the hospital. When hospital security came to the room, Searcy admitted he did have a handgun and that he put it under the couch cushion. He gave the firearm—a Glock Model 17 9mm handgun with a loaded 30-round extended magazine—to security and remained in the room. Hospital security noticed that a full auto sear pin appeared to have been attached to the rear of the slide, making the firearm a machinegun, prompting the call by hospital security to police. Police ran the serial number on the firearm and found out it was reported stolen from Walton County, Georgia. Searcy was taken into custody. ATF agents tested the firearm and confirmed it did function as a machinegun. Further investigation revealed that Searcy, a rapper known as Quez 2RR, had showcased a pistol with what appeared to be a machinegun conversion device in music videos on a YouTube channel. In a music video titled “Traffic,” Searcy rapped, “I pop out a switch on the back of my Glock” and “I put a switch on the back of my Glock, just to clean up the street when it’s time for that action.” At one point in the video, Searcy’s holding a pistol in his waistband with what appears to be a machinegun conversion device attached to the back. Following the federal indictment charging Searcy with possessing a machine gun in August 2024, agents located Instagram messages between Searcy and a female law enforcement officer with the Clayton County Police Department. Between January and March 2023, Searcy asked the police officer to run his information to see if there were any warrants for his arrest. The police officer also provided information to Searcy regarding an active homicide investigation. During an interview with Clayton County Police Department detectives, the officer admitted to providing Searcy with information on an active homicide investigation and advising Searcy when she located active warrants for his arrest. On Feb. 11, 2025, members of the ATF, McDonough Police Department and Henry County Sheriff’s Office executed a federal search warrant at Searcy’s residence in McDonough, Georgia. Searcy and two other men were in the home along with several firearms. The defendant told agents that he had been living at the residence for a couple of months, that he slept with a Draco firearm under his bed and that the Glock 17 found in the living room belonged to him. ATF agents submitted test fires from both firearms to the National Integrated Ballistic Information Network (NIBIN) to determine if either firearm had been used in other crimes. The Micro Draco recovered from Searcy’s bedroom returned with several NIBIN leads, including two from the DeKalb County Police Department. Both DeKalb County incidents indicated that the Micro Draco was used in a drive-by shooting in DeKalb County where four people, including two juveniles, were shot inside their homes. Each shooting occurred within just days of Searcy receiving information from the Clayton County police officer on the active Clayton County homicide where his friend was shot and killed. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case, with assistance from the City of Monroe Police Department, Clayton County Police Department, McDonough Police Department, Henry County Sheriff’s Office, the Dekalb County Police Department and the Piedmont Walton Hospital Security Department. Assistant U.S. Attorney Daniel Peach is prosecuting the case for the Government.


title: Two Cleveland Men Indicted For Trying To Send Firearms To Drug Cartel Members In Mexico

component: USAO - Florida, Middle

body_text: Tampa, FL – Acting United States Attorney Sara C. Sweeney announces the unsealing of an indictment charging Yarquimedes Rodriguez Hilario (32, Cleveland, OH) and Adison Lopez-Ramirez (34, Cleveland, OH) with conspiring to traffic firearms and money laundering. If convicted on all counts, each defendant faces a maximum penalty of 35 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit assets that are traceable to proceeds of the offense. According to the indictment and other court documents filed during this investigation, since 2021, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), posing as Mexican cartel members, were introduced to Yuendry Rodriguez Hilario because he was a trafficker of firearms that could be smuggled to Mexico. Undercover communications with Yuendry Rodriguez Hilario and others discussed the purchase of AR-15s and rocket-propelled grenade launchers. One of the coconspirators described that he sold AR-15s and AK-47s to El Salvadorans and had cocaine available for distribution. Yuendry Rodriguez Hilario further offered fentanyl to one of the agents to make pills. Beginning in late-2021, members of the conspiracy sold or arranged the sale of at least 90 rifles and one Mac-10-type machine gun with a silencer to undercover agents in the Middle District of Florida and Cleveland, Ohio. On October 21, 2021, Adison Lopez-Ramirez delivered nine .223/5.56 caliber rifles and one 9mm rifle to undercover ATF agents in St. Petersburg, Florida, in exchange for $16,000. Soon after the sale, federal agents followed Lopez-Ramirez as he deposited $9,000 from the sale into the bank account of Yarquimedes Rodriguez Hilario, the brother of Yuendry Rodriguez Hilario. In November 2022, an undercover agent told Yuendry Rodriguez Hilario that his associates in Mexico were “battling and losing” and needed to purchase more firearms. On March 2, 2023, Yuendry Rodriguez Hilario arranged to deliver 40 AM-15 multi-caliber firearms to the agents. Saleh Yusuf Saleh, who acquired and assembled the parts to make the firearms, arrived at the meeting with Yuendry Rodriguez Hilario and the agents. After an undercover agent inspected one of the boxes of firearms, both Yuendry Rodriguez Hilario and Saleh were arrested. In March 2024, Yuendry Rodriguez Hilario was sentenced to 13 years and 4 months’ imprisonment. In November 2024, Saleh Yusuf Saleh previously was sentenced to 5 years and 8 months in federal prison. Image 1: Firearms from the October 21, 2021 Sale Images 2-3: Firearms from March 10, 2022 Sale Images 4-5: Firearms from May 26, 2022 Sale 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the OCDETF Panama Express Strike Force is to disrupt and dismantle Transnational Criminal Organizations involved in large scale drug trafficking, money laundering, and related activities. The OCDETF Panama Express Strike Force is comprised of agents and officers from the Coast Guard Investigative Service, Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), and Homeland Security Investigations (HSI). The Cleveland offices of ATF, HSI, DEA, and FBI, with assistance from the Cleveland Police Department and Cuyahoga County Sheriff’s Office, provided critical support in the apprehension of the defendants. It is being prosecuted by Dan Baeza. This case is part of Operation Take Back America which streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).


title: Mexican Man Indicted for False Claim to U.S. Citizenship, False Statement in Application for a Passport, and Aggravated Identity Theft

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose Arturo Perez Ramirez, age 33, a citizen of Mexico, was indicted by a federal grand jury for False Claim to U.S. Citizenship, making a False Statement in Application for Passport, and Aggravated Identity Theft. According to Acting United States Attorney John C. Gurganus, the indictment alleges that Perez Ramirez applied for a U.S. Passport using the name, date of birth, place of birth, and social security number of another person to represent that he was a U.S. Citizen. It is further alleged that in furtherance of that offense, Perez Ramirez utilized multiple means of identification of another actual person, including a state issued identification card and birth certificate. The matter was investigated by the U.S. Department of State Diplomatic Security Service (DOS-DSS) and United States Immigration and Customs Enforcement and Removal Operations. Assistant U.S. Attorney Sarah R. Lloyd is prosecuting the case. The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Former Crofton Pastor Sentenced to Over Two Years  in Federal Prison for Fraud and Tax Offenses

component: USAO - Kentucky, Western

body_text: Paducah, KY – A Crofton, Kentucky, man was sentenced last week to 2 years and 3 months in prison for fraud and tax offenses. U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Karen Wingerd, Special Agent in Charge, Cincinnati Field Office, IRS Criminal Investigation made the announcement. According to court documents, Marvin Upton, 58, was sentenced to 2 years and 3 months in prison, followed by 3 years of supervised release, for 3 counts of bank fraud and 3 counts of filing false tax returns. Until recently, Upton was the pastor at Crofton Pentecostal Church in Crofton, Kentucky. The bank fraud charges arose from Upton’s scheme during the years 2013 to 2016 to defraud one of his elderly parishioners who suffered from dementia. During that same time period Upton also submitted multiple false tax returns which omitted income from the fraud scheme. There is no parole in the federal system. Upton was also ordered to pay restitution in the amount of $500,000 to the victim’s estate and $222,037 in restitution to the IRS. The case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Madison T. Sewell and Corinne E. Keel prosecuted the case. This case was investigated and prosecuted as part of the National Elder Justice Task Force and the Kentucky Elder Justice Task Force. The Department of Justice’s mission of its Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. In response to the growing need and targeting areas of greatest concern, the Department of Justice stood up 10 task forces made up of 11 federal districts to combat a variety of elder abuse, including elder financial exploitation. Kentucky’s federal districts make up two of the 11 districts under the Initiative. Kentucky’s task force is comprised of investigators, prosecutors, and others at the local, state, and federal level with a common objective of protecting seniors across Kentucky. ###


title: Convicted Felon Is Sentenced To Prison For Illegal Possession Of A Firearm And Possession Of A Machinegun

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Trevaris Devar Kennedy, 21, of Charlotte, was sentenced today to 46 months in prison followed by three years of supervised release for possession of a firearm by a felon and possession of a machinegun, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. According to filed court documents and court proceedings, on December 22, 2023, an officer with the Statesville Police Department attempted to conduct a traffic stop on a vehicle with an expired registration tag. Kennedy was a passenger in the vehicle. When the officer activated his blue lights, the driver of the vehicle sped away. Later, the vehicle came to a stop and the driver attempted to flee on foot. While the officer was attempting to apprehend the driver, two firearms were thrown from the vehicle’s passenger window into a wooded area at the side of the road. Later, officers searched the area and recovered two firearms: a Glock, Model 19, 9mm, and a stolen Glock, Model 26, 9mm. Both firearms had extended magazines and were modified with “Glock switches,” devices capable of converting conventional firearms into fully automatic weapons. A total of 55 rounds of 9mm ammunition was also recovered. On January 5, 2024, law enforcement arrested Kennedy and seized his cell phone. Law enforcement forensically analyzed Kennedy’s cell phone and found videos and photos of the defendant holding various firearms, many of which were fitted with Glock switches. They also found messages and other communications indicating that Kennedy was selling Glock switches on social media. When Kennedy was arrested, he was on probation for prior criminal convictions and was prohibited from possessing firearms or ammunition. Kennedy is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney Ferguson credited the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Statesville Police Department with the investigation that led to Kennedy’s conviction. Assistant U.S. Attorney Sara Kinlaw of the U.S. Attorney’s Office in Charlotte prosecuted the case. Stills and photos saved on the defendant’s phone showing him in possession of firearms & Glock switches


title: Software company settles fraud case for $524,947

body_text: ALEXANDRIA, Va. – Vianair Inc., an airport management software company located in Naples, Florida, agreed to pay $225,000 and forgo $299,947 remaining unpaid on a National Science Foundation (NSF) grant to settle False Claims Act allegations involving statements made in connection with a Small Business Innovation Research (SBIR) grant awarded by the NSF. The government alleged that Vianair performed grant work outside of the United States, which is expressly prohibited by the terms and conditions of the grant funding agreement and interim reports, and contrary to Vianair’s grant proposal, and, separately, that Vianair failed to maintain timesheets on NSF-related grant efforts, while falsely certifying compliance with both conditions. NSF suspended payments on the grant when it learned of the conduct. At the time, $299,947 was the balance remaining on the grant that had not yet been transmitted to Vianair. “The requirement that research associated with these grants be conducted in the United States is intended to protect our nation’s security, and the recordkeeping requirements are important to protect taxpayer resources,” said Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia. “When grantees fail to comply with those requirements, my office will pursue ardent enforcement to safeguard American citizens and the public treasury. I thank the NSF Office of Inspector General for ensuring that grant requirements are faithfully observed.” “SBIR awards are highly competitive grants intended to fund American-owned small businesses to conduct U.S.-based research that will lead to the commercialization of innovative new products and services,” said Megan E. Wallace, Acting Inspector General of the National Science Foundation. “This investigation resulted from the NSF Office of Inspector General’s proactive initiative to protect national security interests by identifying SBIR recipients who improperly operate outside the U.S. The NSF Office of Inspector General is committed to vigorously pursuing oversight of these taxpayer funds. I commend the U.S. Attorney’s Office for supporting this effort.” The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the National Science Foundation Office of Inspector General. The matter was investigated by Assistant U.S. Attorney Gina Kim. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia . The civil claims settled are allegations only; there has been no determination of civil liability.


title: Georgia Man Accused of Sex Charges Involving Missouri Teen

body_text: ST. LOUIS – An underage Missouri girl has been rescued from a Georgia man accused of child sex crimes. Carlan Travis Penney Jr., 46, was charged by complaint on March 7 in U.S. District Court in St. Louis with coercion and enticement or a minor and transportation of a minor across state lines with the intent to engage in illegal sexual activity. He was arrested the next day in Georgia and indicted on those same charges by a grand jury Wednesday. Charging documents say the teen’s family alerted the local sheriff’s office when she went missing, and the sheriff’s office contacted the FBI. FBI special agents learned that the teen had been in contact with Penney, who had rented a car to drive to the teen’s home to pick her up and bring her to Georgia, charging documents say. When Penney arrived in Missouri to pick up the teen, he was masked and told the victim he had a firearm in case she turned out to be a law enforcement officer, charging documents say. After her phone and another mobile device were smashed, he took her to Georgia, the documents say. Penney always used cash and always wore gloves during stops on the trip, the documents say. Penney also made threatening statements about “snitches getting snitches” and frequently raised the topic of murder, the documents say. Investigators found her at a home belonging to Penney’s family, the documents say. The victim told the FBI that after she’d met Penney via a “chat site,” he turned their conversation toward sex and sent her pictures of his genitals, the documents say. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. “The victim was rescued quickly because of partnerships. After the FBI became aware, the minor was found in 24 hours hundreds of miles from her home,” said Special Agent in Charge Ashley Johnson of the FBI St. Louis Division. “We thank all the various agencies that immediately helped at all hours of the night. Special thanks to the Worth County and Crisp County Sheriff’s Offices that recovered the girl safely after an hour-long standoff with the subject." The FBI’s St. Louis Division, FBI Atlanta’s Albany Resident Agency, the Missouri State Highway Patrol, the Worth County (Georgia) Sheriff’s Office and the Crisp County (Georgia) Sheriff’s Office investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Member of Philadelphia-Based Drug Trafficking Organization Sentenced to 80 Months in Prison

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Alex Wellman Castro Frias, 51, a Dominican citizen who had been residing in Philadelphia, Pennsylvania, was sentenced by United States District Court Judge Paul S. Diamond to 80 months’ imprisonment followed by three years of supervised release for his role as a “bagger” in a drug trafficking operation based in Philadelphia. In August of 2023, Castro Frias was charged by superseding indictment with conspiracy to distribute a mixture or substance containing a detectable amount of fentanyl and possession with intent to distribute a mixture or substance containing a detectable amount of fentanyl. The defendant pleaded guilty to both counts in April of last year. As detailed in court filings, Castro Frias and his co-conspirators in the Ortiz drug trafficking organization (DTO) were responsible for packaging thousands of individual baggies of fentanyl mixed with xylazine, drugs bound for distribution in Philadelphia and Pittsburgh. The volume of drugs processed was significant; when the FBI executed a search warrant on a house used by the DTO, over six kilograms of fentanyl were found on the bagging table. “As a member of this DTO, Castro Frias played an active role in funneling fentanyl cut with xylazine onto the streets of Philadelphia and beyond,” said U.S. Attorney Metcalf. “This highly addictive and destructive combination of drugs does horrific physical damage to users, causing gaping wounds that have led to amputations and deaths. My office is committed to bringing to justice the people and organizations fueling the city’s drug epidemic and all the ills that come with it. After serving his sentence, Castro Frias, who’s here illegally, will promptly be deported to his home country.” The case was investigated by the FBI as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program and is being prosecuted by Assistant United States Attorney Jason Grenell.


title: Former Valentine ISD Employee Sentenced to Federal Prison for Stealing Federal Funds

body_text: PECOS, Texas – A former Valentine Independent School District employee was sentenced in a federal court in Pecos to 27 months in prison for wire fraud and theft concerning programs receiving federal funds. According to court documents, Ernesto Villarreal Jr., 43, of Marfa, was employed as the Business Manager and served as the Tax Collector and Assessor for the Valentine ISD, in Valentine, Texas. During his time as an agent of Valentine ISD, Villarreal schemed to defraud Valentine ISD by using two ISD credit cards to make hundreds of unauthorized personal purchases totaling over $100,000; issued over $10,000 in unauthorized checks to himself from Valentine ISD accounts; and issued over $20,000 in unauthorized checks from Valentine ISD accounts to cover personal expenses owed to a credit card company. He also changed the bank account information for certain current and former employees, then generated over $100,000 in fraudulent payments to those current and former employees, for work that did not actually occur. Villarreal then routed those payments to his own personal bank accounts, all without the knowledge or permission of the employees. Villarreal used the ill-gotten funds for hundreds of personal purchases, including but not limited to purchases for travel, lodging, home improvements, hardware store purchases, personal cell phone bills, fuel, oil changes, convenience store purchases, Airbnb rentals, personal flight purchases, and various other unauthorized purchases. The total loss to Valentine ISD was $314,497.74. Villarreal was arrested on June 24, 2024 and pleaded guilty Nov. 20 to all nine counts against him. In addition to imprisonment, U.S. District Court Judge David Counts ordered Villarreal to pay restitution to Valentine ISD in the amount of $314,497.74 and ordered a forfeiture money judgment against Villarreal in the amount of $291,853.90. “Mr. Villarreal abused his positions and the trust given to him, to steal and defraud the Valentine ISD—one of the smallest school districts in Texas—out of more than $300,000,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “This investigation, conviction, and sentence in this case all show that this type of dishonest behavior will not be tolerated.” "The foundation of any financial system is trust—and the expectation that those persons entrusted with public funding will honor that trust and act with integrity. As the Valentine School District Business Manager and Tax Collector/Assessor, Villarreal held a position of absolute trust. Instead, he chose to betray that trust by misappropriating funds that were destined for students,” said Special Agent in Charge John Morales for FBI El Paso. “Most students and everyday citizens don’t have access to institutional finances to be able to question discrepancies or missing funds. That is why the FBI El Paso, alongside our law enforcement partners, is committed to uncovering financial wrongdoing and ensuring those who believe they can quietly take $300,000 without consequence are held fully accountable and prosecuted to the fullest extent of the law.” The FBI investigated the case with assistance from the Texas Rangers and the Department of Education Office of Inspector General. Assistant U.S. Attorneys John Fedock, Scott Greenbaum and Chris Skillern prosecuted the case. ###


title: Two illegal aliens imprisoned for unlawfully reentering the U.S.

component: USAO - Texas, Southern

body_text: McALLEN, Texas – Two Mexican nationals with felony criminal histories have been sentenced in two separate cases for illegally entering the county without authorization, announced U.S. Attorney Nicholas J. Ganjei. Jose Eduardo Soto-Hernandez, 29, and Salvador Eduardo Gonzalez-Ledezma, 25, pleaded guilty Dec. 17 and 18, 2024, respectively. Chief U.S. District Judge Randy Crane has now imposed a 46-month term of imprisonment for Gonzalez-Ledezma, while Soto-Hernandez received 27 months. Not U.S. citizens, both are expected to face removal proceedings following their imprisonment. Soto-Hernandez has prior felony convictions for sexual assault of a child and possession of a controlled substance. He has been removed from the United States two previous times, most recently in 2019. Gonzalez-Ledezma also has prior felony convictions for assault family violence impeding breath and harboring aliens. Authorities removed him most recently in 2022, but he has a total of four prior removals. Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Border Patrol conducted the investigations. Assistant U.S. Attorney Amanda McColgan prosecuted the cases.


title: Enfield Man Charged with Cocaine Trafficking Offense

component: USAO - Connecticut

body_text: Marc H. Silverman, Acting United States Attorney for the District of Connecticut, Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Enfield Police Chief Alaric Fox today announced that a federal grand jury in Hartford has returned an indictment charging RAHKEEM BLAKLEY, 34, of Enfield, with a cocaine trafficking offense. The indictment was returned on February 13, 2025. Blakley appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and entered a plea of not guilty. He has been detained since his arrest on related state charges on September 12, 2024. The indictment alleges that, on September 12, 2024, Blakley possessed with intent to distribute cocaine. On that date, a search of Blakley’s residence on Main Street in Enfield revealed five handguns, gun magazines, ammunition, and approximately $73,000 in cash, and a search of two safety deposit boxes at a bank in Springfield, which were connected to Blakley, revealed more than $280,000 in cash. The indictment charges Blakley with possession with intent to distribute cocaine, an offense that carries a maximum term of imprisonment of 20 years. The indictment also seeks the forfeiture of the firearms and cash seized on September 12, 2024. Acting U.S. Attorney Silverman stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Drug Enforcement Administration and the Enfield Police Department. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.


title: Career Criminal Sentenced To 12+ Years For Fentanyl Trafficking And Gun Charges

body_text: ASHEVILLE, N.C. – Tyrone Eugene Sitton a/k/a “Dirty,” 46, of Asheville, was sentenced to 151 months in prison followed by three years of supervised release today for fentanyl trafficking and gun charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Sheriff Quentin Miller of the Buncombe County Sheriff’s Office, and Chief Michael Lamb of the Asheville Police Department, join U.S. Attorney Ferguson in making today’s announcement. According to filed court documents and today’s sentencing hearing, between November and December 2022, Sitton distributed 30.1 grams of fentanyl in the Asheville area. During the investigation, Sitton sold fentanyl at least three times to a confidential informant working with the ATF. In addition to selling fentanyl, on December 28, 2022, Sitton sold the informant three firearms: a shotgun, a rifle, and a pistol. On July 29, 2024, Sitton pleaded guilty to three counts of distribution of fentanyl, and one count of possession of a firearm by a felon. Court records indicate Sitton has multiple state convictions in North Carolina for drug distribution. Because of these prior criminal convictions, Sitton qualified for an increased sentence as a career offender. In making today’s announcement, U.S. Attorney Ferguson commended the ATF, the DEA, the Buncombe County Sheriff’s Office, and the Asheville Police Department for their investigation of the case. Assistant U.S. Attorney Alex M. Scott with the U.S. Attorney’s Office in Asheville prosecuted the case.