component: USAO - Michigan, Western

body_text: WASHINGTON — The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers. Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown. Today’s Takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 50 U.S. Attorneys’ Offices nationwide, and 12 State Attorneys General Offices. “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” "As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” said Secretary Robert F. Kennedy Jr. of the Department of Health and Human Services. “The Criminal Division is intensely committed to rooting out health care fraud schemes and prosecuting the criminals who perpetrate them because these schemes: (1) often result in physical patient harm through medically unnecessary treatments or failure to provide the correct treatments; (2) contribute to our nationwide opioid epidemic and exacerbate controlled substance addiction; and (3) do all of that while stealing money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The Division’s Health Care Fraud Unit and U.S. Attorneys’ Offices stand united with our law enforcement partners in this fight, and we will continue to use every tool at our disposal to protect the integrity of our health care programs for the American people.” “Health care fraud drains critical resources from programs intended to help people who truly need medical care,” said Director Kash Patel of the FBI. “Today’s announcement demonstrates our commitment to pursuing those who exploit the system for personal gain. With more than $13 billion in fraud uncovered, this is the largest takedown for this initiative to date. Together, the FBI and our law enforcement partners will continue to hold those accountable who steal from the American people and undermine our health care systems.” Transnational Criminal Organizations 29 defendants were charged for their roles in transnational criminal organizations alleged to have submitted over $12 billion in fraudulent claims to America’s health insurance programs. For instance, a nationwide investigation known as Operation Gold Rush resulted in the largest loss amount ever charged in a health care fraud case brought by the Department. These charges were announced in the Eastern District of New York, the Northern District of Illinois, the Central District of California, the Middle District of Florida, and the District of New Jersey against 19 defendants. Twelve of these defendants have been arrested, including four defendants who were apprehended in Estonia as a result of international cooperation with Estonian law enforcement and seven defendants who were arrested at U.S. airports and the U.S. border with Mexico, cutting off their intended escape routes as they attempted to avoid capture. The organization allegedly used a network of foreign straw owners, including individuals sent into the United States from abroad, who, acting at the direction of others using encrypted messaging and assumed identities from overseas, strategically bought dozens of medical supply companies located across the United States. They then rapidly submitted $10.6 billion in fraudulent health care claims to Medicare for urinary catheters and other durable medical equipment by exploiting the stolen identities of over one million Americans spanning all 50 states and using their confidential medical information to submit the fraudulent claims. As alleged, the organization exploited the U.S. financial system by laundering the fraudulent proceeds and deploying a range of tactics to circumvent anti-money laundering controls to transfer funds into cryptocurrency and shell companies located abroad. The arrests announced today also include a banker who facilitated the money laundering of fraud proceeds on behalf of the organization through a U.S.-based bank. The Health Care Fraud Unit’s Data Analytics Team and its partners detected the anomalous billing through proactive data analytics, and HHS-OIG and CMS successfully prevented the organization from receiving all but approximately $41 million of the approximately $4.45 billion that was scheduled to be paid by Medicare. HHS and CMS intend to seek to return the $4.41 billion in escrow to the Medicare trust fund for needed medical care. The scheme nonetheless resulted in payments of approximately $900 million from Medicare supplemental insurers. To date, law enforcement has seized approximately $27.7 million in fraud proceeds as part of Operation Gold Rush. In another action involving foreign influence, charges were filed in the Northern District of Illinois against five defendants, including two owners and executives of Pakistani marketing organizations, in connection with a $703 million scheme in which Medicare beneficiaries’ identification numbers and other confidential health information were allegedly obtained through theft and deceptive marketing. The defendants allegedly used artificial intelligence to create fake recordings of Medicare beneficiaries purportedly consenting to receive certain products. According to court documents, the beneficiaries’ confidential information was then illegally sold to laboratories and durable medical equipment companies, which used this unlawfully obtained and fraudulently generated data to submit false claims to Medicare. Certain defendants controlled dozens of nominee-owned durable medical equipment companies and laboratories that allegedly submitted fraudulent claims for products and services the beneficiaries did not request, need, or receive. Certain defendants also allegedly conspired to conceal and launder the fraud proceeds from bank accounts they controlled in the United States to bank accounts overseas. In total, the defendants caused approximately $703 million in alleged fraudulent claims to Medicare and Medicare Advantage plans, which paid approximately $418 million on those claims. The government seized approximately $44.7 million from various bank accounts related to this case. Finally, a defendant based in Pakistan and the United Arab Emirates who owned a billing company allegedly orchestrated a scheme to prey upon vulnerable individuals in need of addiction treatment by conspiring with treatment center owners to fraudulently bill Arizona Medicaid approximately $650 million for substance abuse treatment services. According to court documents, some of the services billed were never provided, while other services were provided at a level that was so substandard that it failed to serve any treatment purpose. As part of the conspiracy, treatment center owners allegedly paid illegal kickbacks in exchange for the referral of patients recruited from the homeless population and Native American reservations. The defendant received at least $25 million of ill-gotten Arizona Medicaid funds as a result of the conspiracy and is charged with a money laundering offense for his alleged use of those funds to purchase a $2.9 million home located on a golf estate in Dubai. Fraudulent Wound Care Charges were filed in the District of Arizona and the District of Nevada against seven defendants, including five medical professionals, in connection with approximately $1.1 billion in fraudulent claims to Medicare and other health care benefit programs for amniotic wound allografts. As alleged, certain defendants targeted vulnerable elderly patients, many of whom were receiving hospice care, and applied medically unnecessary amniotic allografts to these patients’ wounds. Many of the allografts allegedly were applied without coordination with the patients’ treating physicians, without proper treatment for infection, to superficial wounds that did not need this treatment, and to areas that far exceeded the size of the wound. Certain defendants allegedly received millions in illegal kickbacks from the fraudulent billing scheme. “Today's unprecedented enforcement action demonstrates that CMS and our federal partners are united in our mission to protect the integrity of Medicare and Medicaid by crushing waste, fraud, and abuse," said Administrator Dr. Mehmet Oz of CMS. "Every dollar we prevent from going to fraudsters is a dollar that stays in the system to serve legitimate beneficiaries. Through advanced data analytics, real-time monitoring, and swift administrative action, CMS is leading the fight to protect Medicare, Medicaid, and the trust Americans place in these vital programs. We're not waiting for fraud to happen—we're stopping it before it starts." Prescription Opioid Trafficking 74 defendants, including 44 licensed medical professionals, were charged across 58 cases in connection with the alleged illegal diversion of over 15 million pills of prescription opioids and other controlled substances. For example, five defendants associated with one Texas pharmacy were charged with the unlawful distribution of over 3 million opioid pills. As alleged, the defendants conspired to distribute massive quantities of oxycodone, hydrocodone, and carisoprodol, which were subsequently trafficked by street-level drug dealers, generating large profits for the defendants. This coordinated action is a continuation of the Health Care Fraud Unit’s systematic approach to stopping drug trafficking organizations and their pharmaceutical wholesale suppliers, which together have fueled an epidemic of prescription opioid abuse for nearly a decade. DEA also announced today that in the last six months, DEA charged 93 administrative cases seeking the revocation of pharmacies, medical practitioners, and companies authority to handle and/or prescribe controlled substances. “Health care fraud isn’t just theft — it’s trafficking in trust. Today’s announcement shows that when doctors become drug dealers and treatment centers become profit-driven fraud rings, DEA will act,” said Acting Administrator Robert Murphy of the DEA. “We’re targeting the entire ecosystem of fraud — from pill mills in Texas to kickback clinics exploiting Native communities. If you abuse your medical license to push poison or pad your pockets, we will hold you accountable.” Telemedicine and Genetic Testing Fraud In today’s Takedown, 49 defendants were charged in connection with the submission of over $1.17 billion in allegedly fraudulent claims to Medicare resulting from telemedicine and genetic testing fraud schemes. For example, in the Southern District of Florida, prosecutors charged an owner of telemedicine and durable medical equipment companies with a $46 million scheme in which Medicare beneficiaries were allegedly targeted through deceptive telemarketing campaigns and then fraudulent claims were submitted to Medicare for durable medical equipment and genetic tests for these beneficiaries. The Department continues to focus on eliminating health care fraud schemes that depend on telemedicine, including schemes involving fraudulent claims for genetic testing, durable medical equipment, and COVID-19 tests. Other Health Care Fraud Schemes The other cases announced today charge an additional 170 defendants with various other health care fraud schemes involving over $1.84 billion in allegedly false and fraudulent claims to Medicare, Medicaid, and private insurance companies for diagnostic testing, medical visits, and treatments that were medically unnecessary, provided in connection with kickbacks and bribes, or never provided at all. For example, in the Western District of Tennessee, prosecutors charged three defendants, including business owners and a pharmacist, with a $28.7 million scheme to defraud the Federal Employees’ Compensation Fund by allegedly billing for medications for injured United States Postal Service employees that were never prescribed by a licensed practitioner and largely were not dispensed as claimed. And in the Western District of Washington and the Northern District of California, prosecutors charged medical providers with allegedly stealing fentanyl and hydrocodone, respectively, that was meant for the providers’ patients, including child patients in need of anesthesia. “VA’s Integrated Veteran Care Programs provide critical community-based health care to our nation’s disabled veterans and their dependents,” said Acting Inspector General David Case of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “Robust oversight of VA’s health care system is one of VA-OIG’s highest priorities. VA-OIG is committed to holding accountable those who defraud government benefits programs intended to care for our nation’s heroes.” Breaking Down Silos in the Fight Against Health Care Fraud In connection with the coordinated nationwide law enforcement operation, the Department is announcing that it is working closely with HHS-OIG, FBI, and other agencies to create a Health Care Fraud Data Fusion Center to bring together experts from the Department’s Criminal Division, Fraud Section, Health Care Fraud Unit Data Analytics Team; HHS-OIG; FBI; and other agencies to leverage cloud computing, artificial intelligence, and advanced analytics to identify emerging health care fraud schemes. The Health Care Fraud Unit’s Data Analytics Team was established in 2018 to enhance the Unit’s ability to detect, investigate, and prosecute complex health care fraud schemes. Joining forces with data analysts from HHS-OIG, FBI, and other partners will increase efficiency, detection, and rapid prosecution of emerging health care fraud schemes. It will also implement the President’s Executive Order Stopping Waste, Fraud, and Abuse by Eliminating Information Silos (Exec. Order No. 14243, 3 C.F.R. 294 (2025)) by reducing duplicative data teams, increasing operational efficiency through a whole-of-government approach, and leveraging cloud computing, artificial intelligence, and other agency resources. Principal Assistant Deputy Chief Jacob Foster, Assistant Deputy Chief Rebecca Yuan, Trial Attorney Miriam L. Glaser Dauermann, and Data Analyst Elizabeth Nolte, all of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, led and coordinated this year’s Takedown. The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Middle District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Western District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorneys General’s Offices for California, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Missouri, New York, Ohio, Pennsylvania, South Carolina, and Wisconsin. The Health Care Fraud Unit’s Data Analytics Team used cutting-edge data analytics to identify and support the investigations that led to these charges. In addition to FBI, HHS-OIG, DEA, and CMS, HSI, VA-OIG, IRS Criminal Investigation, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, Office of Personnel Management Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation. The Medicaid Fraud Control Units of California, the District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Missouri, New York, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and Wisconsin also participated in the investigation of many of the federal and state cases announced today. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Forces. Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the Health Care Fraud Strike Force, which operates in 27 districts, charged more than 5,400 defendants who collectively billed Medicare, Medicaid, and private health insurers more than $27 billion. An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ***** The following materials related to today’s announcement are available on the Health Care Fraud Unit’s website through these links: • Graphics and Resources • Case Descriptions • Court Documents ###


title: Twice-deported Mexican national federally indicted in the Eastern District of Texas

component: USAO - Texas, Eastern

body_text: TYLER, Texas – A twice-deported Mexican national, illegally living in Texarkana, Texas, has been charged with federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Jay R. Combs. Jose Orlando Colorado-Barcenas, 35, was named in a federal indictment returned by a grand jury last week in the Eastern District of Texas charging him with illegally reentering the United States after previously being removed. The indictment alleges that on May 14, 2025, Colorado-Barcenas was found illegally in Texarkana, after having been previously deported to Mexico from the United States in June 2009 and again in January 2010. 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). If convicted, Colorado-Barcenas faces up to 2 years in federal prison and deportation. This case is being investigated by Immigration and Customs Enforcement, Homeland Security Investigations, Texas Department of Public Safety, and Bowie County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Lauren Richards. A federal indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Canton Man Charged in National Health Care Fraud Takedown

component: USAO - Massachusetts

body_text: BOSTON – Today, as part of the Department of Justice’s 2025 National Health Care Fraud Takedown, a Canton, Mass. man has been charged and has agreed to plead guilty in connection with an alleged fraud scheme to defraud Medicare of over $4 million by submitting claims for durable medical equipment (DME) that was medically unnecessary, not wanted by the Medicare beneficiaries, and tainted by kickbacks. Krishna Gidwani, 55, of Canton, Mass., was charged by an Information with one count of conspiracy to commit health care fraud. The Court has scheduled a plea hearing for July 30, 2025. According to the charging documents, Gidwani allegedly worked with Raju Sharma, and other co-conspirators to own and operate a DME company that paid telemarketing companies for DME orders for orthotics such as ankle, wrist, knee and back braces. Often, the Medicare beneficiaries did not need or want the braces the defendants shipped them and, as further alleged in the information, the doctors whose signatures appeared on these DME orders often did not treat these beneficiaries and did not prescribe the DME. In May 2025, Sharma, agreed to plead guilty to health care fraud conspiracy for his alleged role in the scheme. His plea hearing is scheduled for July 8, 2025. The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. 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. “Mr. Gidwani is accused of manipulating Medicare to enrich himself – misusing the names of unwitting doctors to push unwanted and unnecessary medical equipment onto elderly patients. Health care fraud is not a victimless crime. It drives up costs, exploits vulnerable patients and undermines public trust in our medical system,” said United States Attorney Leah B. Foley. “Today’s charges are part of a historic, nationwide effort to hold accountable those who abuse federal health care programs for personal gain. Our office will continue to work closely with our law enforcement partners to root out fraud and ensure that Medicare dollars support genuine patient care, not criminal profit.” “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” “The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said HHS-OIG Acting Inspector General Juliet T. Hodgkins. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.” “Health care fraud affects everyone. Not only does it put a strain on our country’s vital health care system, but it costs taxpayers billions of dollars every year,” said Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division. “FBI Boston will continue to work with our law enforcement and private sector partners to identify and investigate individuals like Krishna Gidwani who are accused of submitting claims that are medically unnecessary and tainted by kickbacks.” U.S. Attorney Foley; AG Bondi; HHS-OIG Acting IG Hodgkins; and FBI SAC Docks made the announcement today. Assistant U.S. Attorneys Lauren A. Graber and Sarah B. Hoefle of the Criminal Division are prosecuting the case. Today’s announcement is part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in intended loss and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. The United States has seized over $245 million in cash, luxury vehicles and other assets in connection with the takedown. The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle, District of Florida, Northern District of Florida, Southern District of Florida, Middle, District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here . The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: Former Middle School Teacher Sentenced to 7 Years for Possessing Child Pornography

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – U.S. District Judge Matthew T. Schelp on Monday sentenced a former St. Louis County, Missouri middle school teacher to seven years in prison for possessing hundreds of images and videos containing child sexual abuse material. Scott R. Ellis, 39, was also ordered to pay $90,500 in restitution to 12 victims that have been identified in the child sexual abuse material that he collected. After his release from prison, he will be on supervised release for life. Ellis possessed 72 images containing child sexual abuse material (CSAM) on his cell phone and about 700 videos and more than 900 images in his Mega cloud storage account. CSAM in his Google account triggered two cyber tipline reports to the National Center for Missing and Exploited Children, and the subsequent investigation. Ellis, 38, pleaded guilty in February to one felony count of possession of child pornography. He was a teacher at Rogers Middle School in the Affton School District at the time of his crimes and formerly worked at Hancock Place School District in St. Louis County. The FBI and the St. Louis County Police Department Bureau of Special Investigations investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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: National Health Care Fraud Takedown Results in 324 Defendants Charged in Connection with Over $14.6 Billion in Alleged Fraud

component: USAO - New Jersey

body_text: NEWARK - Today, United States Attorney Alina Habba announced criminal charges and civil settlements against 15 defendants in connection with alleged schemes to defraud Medicare, Medicaid, TRICARE, and private health insurers. The charges and settlements filed in federal court are part of the Department of Justice’s 2025 National Health Care Fraud Takedown. The charges and settlements filed in the District of New Jersey involve physicians and pharmacies submitting reimbursements for drugs, devices, and tests that patients didn’t need, pharmacies seeking reimbursement for drugs they never sold, and healthcare providers who received kickbacks to drive phony prescriptions. “My Office, in lockstep with the Department’s nationwide Health Care Fraud Takedown, is cracking down on corrupt physicians, pharmacies, and healthcare providers who exploit Medicare and Medicaid with shameless kickback schemes, unnecessary prescriptions, and phony reimbursements for unneeded drugs, medical devices, and genetic tests – or drugs never even delivered. These predatory schemes prioritize profits over patients, and the District of New Jersey is fiercely committed to rooting out this fraud and ensuring those responsible face justice.” - U.S. Attorney Alina Habba “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” The charges announced today by U.S. Attorney Habba are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers. The following individuals were charged and entered settlements in the District of New Jersey: Alan Vaughan , 56, of the United Kingdom, was charged with conspiracy to violate the federal anti-kickback statute in connection with a scheme to generate referrals for durable medical equipment and cancer genetic tests. As alleged in the indictment, Vaughan paid kickbacks to several marketers in exchange for personal health and insurance information about Medicare beneficiaries, transmitted that information to telemedicine companies, and then received kickbacks from genetic testing laboratories and durable medical equipment supply companies for each item of durable medical equipment and/or each cancer genetic test for which Medicare provided reimbursement. As further alleged, to conceal the scheme, Vaughan and his co-conspirators received millions of dollars in kickbacks through a shell company in New Zealand. As a result of the alleged scheme, Vaughan and his co-conspirators caused a loss to Medicare of more than $80 million. The case is being prosecuted by Assistant U.S. Attorney Garrett J. Schuman of the U.S. Attorney’s Office for the District of New Jersey. Taejin Kim , 43, of River Vale, New Jersey, was charged by information with conspiracy to commit health care fraud in connection with a scheme to submit false and fraudulent claims to Amtrak’s health care plan for services that were never provided and were medically unnecessary. As alleged in the information, Kim, a licensed physical therapist, participated in a conspiracy to use Amtrak employees’ insurance information to submit false and fraudulent claims for services that were medically unnecessary and never provided to the Amtrak employees. Amtrak paid approximately $2,253,453 on these claims. The case is being prosecuted by Assistant U.S. Attorneys Jessica R. Ecker and Katie M. Romano of the U.S. Attorney’s Office for the District of New Jersey. Nestor E. Jaime , 36, of Pine Brook, New Jersey, was charged by indictment with health care fraud in connection with a scheme to submit fraudulent prescription drug claims to Medicare. As alleged in the indictment, Jaime, a pharmacy owner, engaged in a scheme to submit fraudulent claims to Medicare for a high-reimbursement medication that the pharmacy never dispensed and for which the pharmacy never received any prescriptions from the purported beneficiaries’ health care providers for the medication. Medicare paid Jaime’s pharmacy $2,505,754 for these false and fraudulent claims. The case is being prosecuted by Assistant U.S. Attorney Jessica R. Ecker of the U.S. Attorney’s Office for the District of New Jersey. Newark Beth Israel Medical Center (“NBIMC”), located in Newark, New Jersey, has agreed to pay the United States $250,000 to resolve allegations that from January 1, 2018 through December 31, 2019, doctors working in NBIMC’s Heart Transplant Program failed to adequately disclose to patients and their family members material medical information about patients’ conditions. The United States contends that this conduct resulted in NBIMC performing medically unnecessary treatment on these patients. The case is being handled by Assistant U.S. Attorney Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. Excel Pharmacy Inc. , located in Jersey City, New Jersey, agreed to pay the United States and the State of New Jersey $3,000,000 to resolve allegations that from January 2, 2015, through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The case is being handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. QuickRx LLC, an entity affiliated with Community Pharmacy , located in Elizabeth, New Jersey, agreed to pay the United States and the State of New Jersey $962,821 to resolve allegations that from January 7, 2015, through January 24, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The case is being handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. Raghu Ram Inc. d/b/a Camden Discount Pharmacy , located in Camden, New Jersey, agreed to pay the United States and the State of New Jersey $310,000 to resolve allegations that from January 2, 2015, through January 24, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The case is being handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. Rachit Drug Inc. , located in Newark, New Jersey, has agreed to pay the United States and the State of New Jersey $225,000 to resolve allegations that, from January 2, 2015, through January 25, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries. The case is being handled by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. Premier Dental Holdings, Inc. d/b/a Sonrava Health, Element Dental Partners Holdco, LLC, Element Dental Partners, LLC, Mid-Atlantic Dental Services Holdings LLC , and The Jersey Dental Group have agreed to pay the United States and the State of New Jersey $540,000 to resolve allegations that from January 1, 2021 through July 31, 2023, it submitted or caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program (“NJ FamilyCare”) for: (a) services that were performed by providers who were not credentialed with NJ FamilyCare or the applicable managed care organization, but billed for by using the National Provider Identifiers of dentists who did not perform the services but had the necessary credentials; or (b) services that were performed and billed by uncredentialed providers at the time the service was rendered. The case is being handled by Assistant U.S. Attorney Robert Toll of the U.S. Attorney’s Office for the District of New Jersey. “The scale of today’s Takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said HHS-OIG Acting Inspector General Juliet T. Hodgkins. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.” “Today’s announcement provides insight into the complex and costly nature of the health care fraud threat. More importantly, this coordinated effort highlights the professionalism of the FBI and our partners to find, expose and hold accountable those practitioners, business owners and facilitators who took advantage of our system for personal gain,” said Special Agent in Charge Stefanie Roddy. “Today’s actions represent the sheer dedication, professionalism, and commitment of our agents, joint partners, and U.S. Attorneys in holding accountable those who put greed ahead of patient care and basic ethics,” said Mike Waters, Special Agent In Charge of Amtrak’s Northeast Region. “We hope these actions serve as a deterrent for health care providers and others who choose to engage in such schemes, and we ask anyone who suspects or observes such fraud to report it to our fraud, waste, and abuse hotline.” The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle, District of Florida, Northern District of Florida, Southern District of Florida, Middle, District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the Department’s website here . The District of New Jersey, in particular, worked with the Department’s Criminal and Civil Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); FBI; and Amtrak’s Office of Inspector General. A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


component: USAO - Mississippi, Northern

body_text: Oxford, MS — The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers. Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown. Today’s Takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 50 U.S. Attorneys’ Offices nationwide, and 12 State Attorneys General Offices. The Northern District of Mississippi announced one Indictment in this national initiative. Ricky Wayne Quinn and John Anthony Null a/k/a “Andy Null,” both of Corinth, Mississippi, were charged by indictment with conspiracy to commit health care fraud in connection with the submission of false and fraudulent claims to Medicare and Medicaid for over $700,000 for prescription drugs. As alleged in the indictment, Quinn and Null, both pharmacists, paid cash to runners in the community who brought them legitimate prescriptions for prescription drugs. Quinn and Null dispensed the prescription drugs to the patients, who provided the unopened prescription drugs to the runners. In exchange for cash, the runners returned the unopened prescription drug products back to Quinn and Null to be restocked in order to be billed to Medicare and Medicaid again. This practice allowed Quinn and Null to bill Medicare and Medicaid numerous times for the same prescription drug products. “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” “As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” said Secretary Robert F. Kennedy Jr. of the Department of Health and Human Services. This case is being prosecuted by Assistant U.S. Attorney Clayton A. Dabbs of the U.S. Attorney’s Office for the Northern District of Mississippi. The materials related to the announcement of National Health Care Fraud Takedown are available on the Health Care Fraud Unit’s website: https://www.justice.gov/criminal/criminal-fraud/2025-national-health-care-fraud-takedown An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Two Mexican Citizens Living Illegally in the United States Plead Guilty and are Sentenced for Immigration Crimes

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Today, Jesus Eduardo Villeda-Villegas, 30, and Brigido Cayetano-Galvez, 29, Mexican citizens living illegally in Huntington, each pleaded guilty to the felony offense of reentry of a removed alien and were sentenced to time served. U.S. Immigration and Customs Enforcement (ICE) has immigration detainers on Villeda-Villegas and Cayetano-Galvez so they can be transferred to ICE administrative custody for removal proceedings. According to court documents and statements made in court, law enforcement officers in Huntington encountered Villeda-Villegas on April 23, 2025, and Cayetano-Galvez on April 21, 2025. ICE agents confirmed that Villeda-Villegas and Cayetano-Galvez are citizens of Mexico in the United States illegally and had previously been deported from the United States. Villeda-Villegas and Cayetano-Galvez had no identification documents permitting them legal status in the United States. Villeda-Villegas was removed from the United States to Mexico on March 12, 2015, after being found in Hildalgo, Texas. Cayetano-Galvez was removed from the United States to Mexico on September 2, 2015, after being found in Nogales Arizona, and on April 27, 2017, after being found in the Huntington area of West Virginia. Villeda-Villegas and Cayetano-Galvez never obtained the express consent of the Secretary of U.S. Homeland Security to reapply for admission to the United States, nor did either seek to reenter the United States through other legal means. These cases are part of Operation Take Back America , a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN). “Stopping illegal immigration is a top enforcement objective of the United States Attorney’s Office for the Southern District of West Virginia,” said Acting United States Attorney Lisa G. Johnston. “I commend U.S. Immigration and Customs Enforcement (ICE), the U.S. Department of Homeland Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their work in these cases.” United States District Judge Robert C. Chambers presided over the hearings and imposed the sentences. Assistant United States Attorneys Erik S. Goes and Jonathan T. Storage prosecuted the cases, as part of a special unit within the United States Attorney’s Office for the Southern District of West Virginia focused on the immigration enforcement objectives of Operation Take Back America. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 3:25-cr-79 (Villeda-Villegas) and 3:25-cr-80 (Cayetano-Galvez). ###


title: Eastern Iowan Sentenced to Federal Prison for Derecho and COVID-19 Pandemic Benefits Fraud

component: USAO - Iowa, Northern

body_text: An Eastern Iowa woman who stole over $25,000 in federal benefits intended for victims of the August 2020 derecho and the COVID-19 pandemic was sentenced on June 27, 2025, to over a year in federal prison. Denisha Clarice Morrison, age 28, from Marion, Iowa, received the prison term after January 10, 2025, guilty pleas to one count of theft of government funds and one count of wire fraud. On August 10, 2020, a severe storm, commonly referred to as a derecho, struck multiple counties in the Northern District of Iowa, as well as other parts of the States of Iowa, Illinois, and Indiana. The derecho caused long-duration power outages across the Northern District of Iowa and extensive damage in Cedar Rapids in particular. In response to the derecho, the Federal Emergency Management Agency (“FEMA”) declared Disaster No. 4557 for the State of Iowa on August 17, 2020. Victims of the disaster who resided in the Iowa counties approved for assistance could apply to the FEMA for disaster relief assistance to help meet repair and replacement expenses not covered by insurance. The derecho occurred less than six months after the arrival of the COVID-19 pandemic in the United States. In a plea agreement, Morrison admitted that, in October 2020, she received over $7,000 in FEMA benefits after falsely claiming she was living in an apartment on the west side of Cedar Rapids when the derecho hit and had suffered damage to her residence and personal property. In truth, Morrison was not living there and suffered no damage from the derecho. Morrison also admitted that, in June 2021, she filed a fraudulent application for Paycheck Protection Program (“PPP”) loan moneys. At that time, the Small Business Administration (“SBA”) and its participating lenders offered low-interest, forgivable loans to small businesses who were suffering from the economic effects of the pandemic. Morrison falsely claimed to be the owner of a cleaning business and, as a result, received $20,000 in fraudulent PPP moneys. While her federal case was pending, Morrison committed a theft in Waterloo and violated the terms of her pretrial release on multiple occasions by testing positive for an illegal substance, failing to find full-time employment, and violating location monitoring requirements while in home detention. Morrison has an extensive criminal history that includes a dozen other convictions in state court, including multiple theft and forgery convictions, carrying weapons, and assault causing bodily injury. Morrison was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Morrison was sentenced to 18 months’ imprisonment. She was ordered to make $27,191.45 in restitution to FEMA and the SBA. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Morrison is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Department of Homeland Security, Office of Inspector General. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file numbers are 24-CR-55 and 25-CR-2001. Follow us on X @USAO_NDIA.


title: Colorado Man Conspiring to Distribute Meth and Fentanyl in Iowa Pleads Guilty in Federal Court

body_text: A man who conspired to distribute methamphetamine and fentanyl and illegally possessed a firearm pled guilty June 27, 2025, in federal court in Sioux City. Ryan Miller, 40, originally from Colorado, but most recently residing in Pilot Mound, Iowa, was convicted of one count of conspiring to distribute methamphetamine and fentanyl and one count of possession of a firearm by a prohibited person. Miller was previously convicted of possession with intent to distribute methamphetamine in 2017, this conviction prohibits him from possessing a firearm. At the plea hearing, Miller admitted that from January 2024 through April 27, 2024, he and others conspired to distribute at least a half pound of methamphetamine and more than 1700 pills of fentanyl. On April 21, 2024, Miller, along with two others were headed to Colorado to pick up more methamphetamine and to sell fentanyl pills. They attempted to elude law enforcement in a high-speed vehicle chase during which Miller threw two pop cans containing fentanyl pills from the vehicle. Miller’s two co-defendants made “false” 911 calls to law enforcement in an attempt to distract law enforcement and avoid capture. Later the same date, law enforcement executed a search warrant at Miller’s residence and seized a small amount of methamphetamine, psilocybin mushrooms, marijuana, and a loaded .22 caliber Beretta handgun. Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Miller remains in custody of the United States Marshal pending sentencing. Miller faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $8,250,000 fine, and at least eight years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Ida and Sac County Sheriff’s Offices, the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Iowa DCI Laboratory Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-4042. Follow us on X @USAO_NDIA.


title: Former Cedar Rapids Resident Sentenced to Federal Prison for Identity Theft

body_text: A former Cedar Rapids resident who cashed a phony check from a Chicago law firm was sentenced on June 27, 2025, to two years in federal prison. Shango Johnson, age 35, from Chicago, Illinois, received the prison term after a March 24, 2025, guilty plea to one count of aggravated identity theft. In a plea agreement, Johnson admitted that, in November 2023, he obtained a false and fraudulent check in the amount of $9,634 purportedly drawn on a Chicago law firm’s account. The law firm had closed the account in 2021 after its mail was stolen. Johnson deposited the fraudulent check into his own bank account in Cedar Rapids. The check falsely stated it was intended for Johnson’s “[p]ersonal injury final settlement payout”; in truth, Johnson had not received a settlement for a personal injury lawsuit and was not entitled to any of the funds in the law firm’s bank account. Johnson then attempted to use funds drawn from the bogus check before his bank could discover that the check from the law firm was fraudulent. Johnson has an extensive criminal history. Johnson has more than 20 adult criminal convictions in state court, including for assault, forgery, perjury, and theft. Johnson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Johnson was sentenced to 24 months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Johnson is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-71.


title: NATIONAL HEALTH CARE FRAUD TAKEDOWN RESULTS IN 324 DEFENDANTS CHARGED IN CONNECTION WITH OVER $14.6 BILLION IN ALLEGED FRAUD

component: USAO - Louisiana, Middle

body_text: Acting United States Attorney Ellison C. Travis announced criminal charges against two defendants in connection with alleged schemes to defraud government benefit programs. The charges filed in federal court are part of the Department of Justice’s 2025 National Health Care Fraud Takedown. “We are taking significant strides in our ongoing battle against health care fraud within the Middle District of Louisiana. These fraudulent activities not only undermine the integrity of our health care system, but also jeopardize the well-being of countless patients who rely on these essential services, stated Acting U.S. Attorney Travis. “Our office is committed to holding accountable those who seek to exploit vulnerable individuals for personal gain. This takedown is a testament to the dedication and collaboration of law enforcement partners, and we will continue to work tirelessly to ensure justice is served and integrity is restored in our health care system.” “This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.” The charges announced today by Acting U.S. Attorney Ellison C. Travis are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the Takedown, seized over $245 million in cash, luxury vehicles, and other assets. The following individuals were charged in the Middle District of Louisiana: Cody Hulbert, 41, of Baton Rouge, Louisiana, was charged by indictment with conspiracy to commit wire fraud, wire fraud, and theft of government funds in connection with a scheme to submit fraudulent Paycheck Protection Program (“PPP”), Economic Injury Disaster Loan (“EIDL”) program, and unemployment insurance applications. As alleged in the indictment, Hulbert and her co-conspirators fraudulently obtained at least approximately $51,474 from the fraudulent PPP applications, sought at least approximately $12,391 from at least one fraudulent EIDL application, and obtained at least approximately $5,654 in unemployment insurance benefits. Britney McCoy, 31, of Baton Rouge, Louisiana, was charged by indictment with one count of wire fraud and one count of making false statements in a loan and credit application in connection with a fraudulent PPP scheme. As alleged in the indictment, McCoy submitted and caused to be submitted false and fraudulent loan applications and other documents to lenders and others to obtain funds and loan forgiveness through the PPP. In total, McCoy fraudulently sought and obtained at least approximately $22,884 in PPP funds based on the false and fraudulent applications. “The scale of today’s takedown is unprecedented, and so is the harm we’re confronting. Individuals who attempt to steal from the federal health care system and put vulnerable patients at risk will be held accountable,” said HHS-OIG Acting Inspector General Juliet T. Hodgkins. “Our agents at HHS-OIG work relentlessly to detect, investigate, and dismantle these fraud schemes. We are proud to stand with our law enforcement partners in protecting taxpayer dollars and safeguarding patient care.” “These charges, stemming from the meticulous work of DEA’s Baton Rouge District Office and the U.S. Attorney’s Office in the Middle District of Louisiana, highlight our unwavering commitment to holding accountable those who illegally divert controlled substances,” said DEA New Orleans Acting Special Agent in Charge Michael J. Arnett. “We stand united with our law enforcement partners to protect our communities and ensure justice for those who exploit programs designed for the most vulnerable.” The Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle, District of Florida, Northern District of Florida, Southern District of Florida, Middle, District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorney Generals’ Offices for Arizona, California, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Missouri, New York, Ohio, and Pennsylvania are prosecuting the cases in the National Health Care Fraud Takedown, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available at https://www.justice.gov/criminal/criminal-fraud/2025-national-health-care-fraud-takedown The Middle District of Louisiana, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General; the Drug Enforcement Administration; and the U.S. Department of Labor Office of Inspector General. These cases are being prosecuted by Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana and Trial Attorney Gary A. Crosby II of the Gulf Coast Strike Force. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Beckley Man Sentenced to Prison for Escape

body_text: CHARLESTON, W.Va. – Kishaun Andre Jones, 25, of Beckley, was sentenced today to four months in prison, to be followed by three years of supervised release, for escape after walking away from a federal reentry facility. According to court documents and statements made in court, on August 2, 2024, Jones left Dismas Charities Inc., a Bureau of Prisons residential reentry facility in St. Albans, without permission. Jones was confined at Dismas Charities as a result of his conviction for distribution of methamphetamine in United States District Court for the Southern District of West Virginia on February 23, 2023. Law enforcement recaptured Jones in Greenbrier County on January 14, 2025. Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the United States Marshals Service and the Greenbrier County Sheriff's Office. Chief United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney D. Keith Randolph prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:25-cr-21. ###


title: Prince George’s County Man Sentenced to Decade in Federal Prison for Fentanyl Distribution Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: Greenbelt , Maryland – Today, U.S. District Judge Theodore D. Chuang sentenced Amos Oluremi Nureni, 43, of Laurel, Maryland, to 10 years in federal prison, followed by four years of supervised release, for conspiracy to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Evan Campanella, Homeland Security Investigations (HSI) – Baltimore, Special Agent in Charge Ibrar A. Mian, Drug Enforcement Administration (DEA) – Washington Division, and Chief Marc Yamada, Montgomery County Police Department (MCPD). In September 2023, HSI and the DEA began investigating Nureni in connection with suspected fentanyl trafficking. During the investigation, law enforcement conducted two controlled purchases in which Nureni sold an undercover officer approximately 400-500 pills. The pills were blue in color and imprinted with “M30” – mimicking the markings on legitimate pills from a manufacturer containing oxycodone hydrochloride. As confirmed by laboratory analysis, the blue “M30” pills contained fentanyl. In total, Nureni sold approximately 866 fentanyl pills — or nearly 100 grams of a mixture and substance containing fentanyl — to the undercover officer. On the morning of March 27, 2024, law enforcement executed a search warrant on Nureni’s Laurel residence. During the search, law enforcement found a bag containing approximately 10.48 grams (98 pills) of a mixture and substance containing fentanyl, and a silver Taurus pistol with an obliterated number, in Nureni’s safe. The pistol was loaded with a 9mm round of ammunition in the chamber and a magazine containing six rounds of 9mm ammunition. Additionally, law enforcement found a large silver and red hydraulic press; small silver hydraulic press; digital scale with white powder residue; and several bags containing approximately 6.44 grams (61 pills) of fentanyl, approximately 6.25 grams of cocaine base, approximately 0.859 grams of cocaine, approximately 3.04 grams of cocaine, approximately 3.02 grams of methamphetamine, and approximately 1.478 grams of dipentylone, in Nureni’s residence. U.S. Attorney Hayes commended HSI, the DEA, and MCPD for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Megan S. McKoy and Elizabeth Wright who prosecuted the case. For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach . # # #


title: Department of Justice Announces the Opening of Nominations to Honor the Honorable: The Attorney General’s Award for Distinguished Service in Policing

component: Office of the Attorney General

body_text: WASHINGTON – United States Attorney General Pamela Bondi announced today that the Department of Justice is now accepting nominations to Honor the Honorable: The Attorney General’s Award for Distinguished Service in Policing. This award represents the Department of Justice’s reaffirmed commitment to uplifting the valor and exceptional contributions to policing of our great nation’s law enforcement personnel. It is the mission of the Department of Justice to recognize individuals in law enforcement who exhibit remarkable courage, innovation, and outstanding performance in making America safe again. The Attorney General’s Honor the Honorable Award recognizes individual or teams of rank-and-file officers from state, local, Tribal or territorial law enforcement agencies for exceptional efforts in policing. The awarded officers, deputies and troopers will have demonstrated exceptional service in one of three areas: criminal investigations, field operations or exemplary community involvement. Within each category, an award will be given to law enforcement agencies serving small, medium and large jurisdictions. Those agency sizes are defined as: Small: agencies serving populations of fewer than 50,000; Medium: agencies serving populations of 50,000 to 250,000; Large: agencies serving populations of more than 250,000. By acknowledging and rewarding these efforts, the Department strives to advance and reaffirm its dedication to policing and to promote proactive law enforcement methods that support public safety within our nation’s communities. Through this Award, the Attorney General recognizes that the nation’s law enforcement agencies, officers, deputies and troopers continue to work tirelessly to make American communities safe places to live and work again. The deadline for nominations is July 14, 2025, at 8:00 p.m. EDT. More information and the application for nominees can be found at: https://www.justice.gov/ag/policing-award


title: PCP Dealer in Possession of a Machine Gun Sentenced to 138 Months in Federal Prison

body_text: WASHINGTON – Lamont Langston, 44, of the District of Columbia, was sentenced today in U.S. District Court to 138 months in federal prison for supplying and coordinating the distribution of more than two kilograms of PCP to undercover officers while also possessing at least two firearms—a Glock with a machine gun conversion switch and an AK-style Draco semiautomatic pistol. The sentence was announced by U.S. Attorney Jeanine Ferris Pirro. Langston pleaded guilty on Dec. 19, 2024, before Judge Dabney L. Friedrich to one count of possession with intent to distribute one kilo of phencyclidine (PCP) and to one count of unlawful possession of a firearm by a felon. In addition to the 138-month prison term, Judge Friedrich ordered Langston to serve five years of supervised release. According to court documents, Langston procured PCP for the conspiracy from at least November through late February 2024. On nine occasions, Langston’s co-conspirator, Jamar Bennett, sold wholesale quantities of the PCP to two undercover officers in water or juice bottles. Langston often stored the PCP at the home of co-conspirator Kelvin Sanker Jr., 42, who was later sentenced on Jan. 30, 2025, to 65 months in prison for his role in the trafficking ring. Co-conspirator Bennett, 45, was sentenced on Jan. 15, 2025, to 121 months in prison for conspiracy to distribute one kilogram or more of PCP, and for being a felon in possession of a firearm. Co-conspirator Norman Morris, 44, was convicted on June 4, 2025, for conspiracy to distribute PCP, following a jury trial. Morris will be sentenced on October 24, 2025. In addition to being the source of supply, Langston acted as an organizer, leader, manager, or supervisor of others in the conspiracy. He admitted that he directed others in the preparation, storage, collection, and distribution of PCP. On February 25, 2024, Langston met with a co-conspirator on the 300 block of 57th St. NE. As an MPD police cruiser came down the street, Langston turned, ran, and discarded a loaded Glock Model 22C .40 caliber handgun with a machine gun conversion device and an extended magazine. Langston was apprehended about 30 minutes later, after an extensive search involving a K9 unit and a police helicopter. Police recovered a loaded AK-style Century Arms Micro Draco pistol with a 30-round extended magazine, $9,868 in cash; and an 8-ounce water bottle containing PCP. Less than 48 hours after his arrest, Langston began making calls from the jail to his co-conspirators to protect and further the conspiracy. Langston was prohibited from possessing a firearm due to his 2016 Superior Court conviction, and three-year prison sentence, for assault with a dangerous weapon. This case was investigated by the FBI Washington Field Office, the Drug Enforcement Administration Washington Division, and the Metropolitan Police Department. It was prosecuted by Special Assistant U.S. Attorney Adam L.D. Stempel and Assistant U.S. Attorney Peter V. Roman. Security video still of Langston holding a can of starter fluid, as he let himself into a stash house for the conspiracy.


title: Oklahoma City Man Charged with Medicare Fraud as Part of National Takedown

component: USAO - Oklahoma, Western

body_text: Largest Justice Department Health Care Fraud Takedown in History Results in 324 Defendants Charged in Connection with Over $14.6 Billion in Alleged Fraud OKLAHOMA CITY – Today, United States Attorney Robert J. Troester announced ALEXANDER FRANK , 55, of Oklahoma City, Oklahoma, has been charged in connection with an alleged scheme to defraud Medicare. “We are committed to combatting fraud in our nation’s health care system, especially against federal programs that serve those most in need of care,” said U.S. Attorney Robert J. Troester. “Today’s nationwide announcement is proof of the Department of Justice’s ongoing effort to protect Americans from those who seek to exploit government programs for their personal gain.” On June 3, 2025, Frank was charged by indictment with twenty-five counts of health care fraud. As alleged in the indictment, between 2021 and 2023, Frank fraudulently billed Medicare for approximately $3.2 million dollars’ worth of face-to-face visits with beneficiaries in skilled nursing facilities which he did not render or rendered only in part. If convicted, Frank faces up to ten years in prison on each count, a $250,000 fine, and mandatory restitution. The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in alleged false billings and over 15.6 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. In connection with the Takedown, the Government seized over $245 million in cash, luxury vehicles, and other assets. Details of the Department of Justice’s 2025 National Health Care Fraud Takedown, and materials related to today’s national announcement, are available on the Department website through these links: Department of Justice press release Graphics and Resources Case Descriptions Court Documents The Western District of Oklahoma case against Frank is being prosecuted by Assistant United States Attorney D.H. Dilbeck. The Western District of Oklahoma worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Department of Defense Office of Inspector General, and the U.S. Department of Veterans Affairs Office of Inspector General. A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Mexican Felon with History of Drug Trafficking in Waco Back in Federal Custody

component: USAO - Texas, Western

body_text: WACO, Texas – A Mexican national was transferred into federal custody Friday and charged with illegal re-entry after being found in the McLennan County Jail. According to court documents, Pedro Martinez-Solorzano, 41, was arrested by local law enforcement in March for evading arrest with a vehicle. Martinez-Solorzano was identified as an alien unlawfully present in the U.S. who had been previously removed to Mexico in February 2022 through Del Rio. In June 2014, Martinez-Solorzano was sentenced in Waco to 110 months federal imprisonment after pleading guilty to one count of distribution of methamphetamine, aiding and abetting. Martinez-Solorzano made his initial appearance in a federal court in Waco today. If convicted, he faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Justin R. Simmons for the Western District of Texas made the announcement. Immigration and Customs Enforcement is investigating the case. Assistant U.S. Attorney Stephanie Smith-Burris is prosecuting the case. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN). A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Hartford Man Admits Defrauding Amazon

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, announced that TERRELL KIMBLE, 45, of Hartford, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to an offense stemming from a scheme to defraud Amazon. According to court documents and statements made in court, Kimble was employed by Amazon as a Regional Fleet Specialist and an Area Manager, based in Connecticut. Amazon operated an employee reward program called Peak, administered through a procurement portal called Coupa. Coupa allowed certain employees, including Area Managers, to reward other employees on their work team for superior performance by ordering an item from Amazon for the employee at no cost. Between approximately July 2021 and December 2022, Kimble placed at least 196 Coupa orders fraudulently representing that they were to reward employee performance, but had the products, mainly high-end electronic goods, delivered to his mother’s residence for his own use. The electronic items included Apple iPad Pro, Apple AirPods Pro, and Apple Watch devices, and Nintendo Switches. Kimble was arrested on August 15, 2024. Kimble pleaded guilty to wire fraud, which carries a maximum term of imprisonment of 20 years. He is released on a $250,000 bond pending sentencing, which is not scheduled. This matter has been investigated by the U.S. Secret Service and the Connecticut Financial Crimes Task Force, with the assistance of the Windsor, West Hartford, and Hartford Police Departments. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.


title: Man Admits Meeting 14-Year-Old to Engage in Sexual Activity

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A man living in St. Louis County on Monday admitted meeting with a 14-year-old to engage in sexual activity. Yeison Perdomo, 30, pleaded guilty to one count of coercion and enticement of a minor. Perdomo met the victim in February of 2024 on a dating website. The victim initially said she was 20 years old, then 15, then “not yet” 15, Perdomo’s plea agreement says. Between February 28 and March 8, the pair exchanged 8,462 text messages. They often discussed meeting to engage in sexual activity. Perdomo, who is a citizen of Spain and unlawfully residing in the United States, mentioned getting married when the victim turned 18 so he might acquire status as a legal resident. On March 8, Perdomo picked the victim up from school and took her to his home in Berkeley, Missouri. When she didn’t come home, her family reported her missing, and the Chesterfield Police Department identified Perdomo’s vehicle and tracked him to his home. Early in the morning of March 9, officers with the Berkeley and Chesterfield police found Perdomo and the victim hiding under a blanket in his vehicle’s backseat. Perdomo refused police commands and had to be dragged from the vehicle. The victim told police that the pair had engaged in sexual activity. At Perdomo’s September 18 sentencing, both sides have agreed to recommend 10 years in prison. He will be required to register as a sex offender and will likely be deported after his release from prison. The Chesterfield Police Department, the Berkeley Police Department and Immigration and Customs Enforcement’s Homeland Security Investigations 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: Honduran National Indicted For Re-Entry of Deported Alien

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – ActingUnited States Attorney Michael M. Simpson announced that JUNIOR ELIXON BURGOS-LARA (“BURGOS-LARA”) , age 28, a native of Honduras, was indicted on June 26, 2025, for re-entry of removed alien, in violation of Title 8, United States Code, Section 1326(a). According to court documents, BURGOS-LARA an illegal alien, was found in St. Tammany Parish on May 21, 2025. He had previously been removed to Honduras on November 27, 2018. If convicted, BURGOS-LARA faces a maximum penalty of two years imprisonment, up to a $250,000 fine, up to one year of supervised release, and a $100 mandatory special assessment fee. Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). Acting U.S. Attorney Simpson praised the work of the U.S. Customs and Border Protection in investigating this matter. Special Assistant United States Attorney Frederick W. Veters Jr., of the General Crimes Unit, oversees the prosecution.


title: Sacramento Man Sentenced to 5 Years in Prison for Fentanyl Trafficking

component: USAO - California, Eastern

body_text: Isaias Aroldo Contreras, 26, of Sacramento, was sentenced today by U.S. District Judge William B. Shubb to five years in prison for possession with intent to distribute fentanyl, Acting U.S. Attorney Michele Beckwith announced. According to court documents, on Jan. 5, 2023, law enforcement officers executed a search warrant at Contreras’s residence and seized 992 fentanyl-laced pills that were made to look like oxycodone “M-30” pills, a loaded Glock 9 mm pistol, $31,154 in cash, a money counter, and numerous items of custom diamond jewelry, including a Rolex watch with full-cut diamonds. On Contreras’s seized cellphone, law enforcement found messages from at least March 2020 through December 2022 between Contreras and drug suppliers and customers regarding the purchase and sale of counterfeit M-30 pills (in quantities ranging from hundreds of pills to thousands of pills) and cocaine in kilogram quantities. Contreras was also ordered to forfeit to the government $31,154 in cash and numerous items of seized jewelry, valued at over $50,000, that was seized from his residence. This case was the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations and the Sacramento Area Intelligence/Narcotics Task Force (SAINT). Assistant U.S. Attorney David W. Spencer prosecuted the case. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF .


title: Fresno Man Sentenced to over 5 Years in Prison for Running a $4.2 Million Fraud Scheme Through His Technology Startup

body_text: Royce Newcomb, 62, of Fresno, was sentenced today to five years and 10 months in prison for wire fraud and money laundering charges in a long-running fraud scheme where he stole $4.2 million from investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith announced. “Fraud schemes like this one are devastating to the victims, and prosecuting the perpetrators is one of our highest priorities,” Acting U.S. Attorney Beckwith said. “Our office will continue to work closely with the FBI to root out fraudsters who steal from private victims and from the federal government.” “Royce Newcomb’s greed and disregard for the law while on supervised release adds salt to his victims’ financial wounds and serves as a cautionary tale for would-be investors,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “He lured his victims into the scheme with slick marketing and false promises to ensure investors trusted him and would be unlikely to question his claims. The FBI encourages all investors to research individuals and companies prior to making a financial commitment. We also encourage anyone who feels they may have invested in a fraud scheme to report their concerns promptly.” According to court documents, from 2017 through 2022, Newcomb owned Strategic Innovations, which was a technology startup company that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses. Newcomb developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list. Newcomb made several false representations to his investors to deceive and cheat them out of their money. The false representations included that he had been awarded a grant by the National Science Foundation and that he would use the investors’ money to further develop and bring his products to market. That was not true. Instead, Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion. He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors’ authorization. During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans. Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case. This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak prosecuted the case. This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.