title: 18 Charged With Violent, Gun, Or Immigration Crimes As Part Of Operation Take Back America

body_text: CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that the U.S. Attorney’s Office has filed separate criminal charges against 18 defendants as part of Operation Take Back America , for violations that include straw purchasing of firearms, bank robbery, possession of a firearm by a convicted felon, possession of a firearm by an illegal alien, illegal reentry, and failure to notify a change of address. The 18 defendants charged last week and the alleged offenses include: Walter Adonai Rivera Chinchilla , 24, of Charlotte, and Fausto Odalis Reyes Guevara , 27, of Honduras, are charged via a superseding indictment of conspiracy to provide a false statement during the purchase of a firearm. Guevara is also charged with possession of a firearm by a person unlawfully in the United States. According to the superseding indictment, on October 12, 2024, Guevara messaged Chinchilla that Guevara needed a “17” and a white Beretta for a good price. Two days later, Chinchilla allegedly purchased a Beretta 92FS pistol from Guns Too, a licensed firearms dealer located in Caldwell County. When he purchased the firearm from Guns Too, Chinchilla allegedly lied on the forms, falsely attesting that he was the actual buyer of the firearm when he was in fact buying it for Guevara. The indictment further alleges that on the same day Chinchilla purchased a second firearm, a Glock 45 pistol, from Foothills Jewelry & Loan, a licensed firearms dealer in Catawba County. It is further alleged that Chinchilla lied again on the forms falsely attesting that he was the actual buyer of the firearm when he knew he was buying it for Guevara. Chinchilla is also facing additional charges including trafficking in firearms, making a false statement during the purchase of a firearm, and dealing in firearms without a license. Jose Francisco Meraz-Villatoro , 31, of Mexico, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. It is alleged that Meraz-Villatoro unlawfully possessed two firearms: a Glock 43 9mm handgun and a Girsan Regard MC 9mm handgun. Meraz-Villatoro was previously deported from the United States three times: in September 2013, in July 2014, and again in November 2022. Carlos Sarmiento-Ochoa , 20, of Honduras, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. It is alleged in the indictment that Sarmiento-Ochoa unlawfully possessed a Glock 23, 40 caliber handgun, and that he was previously deported from the United States in May 2018 and again in October 2019. Gial Obed Rodas-Hernandez , 20, of Honduras, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. The indictment alleges that Rodas-Hernandez unlawfully possessed a Taurus PT709 handgun, 9mm, and that he was previously deported from the United States in February 2021. Jose Alberto Velazquez-Trejo , 41, of Mexico, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. The indictment alleges that Velazquez-Trejo unlawfully possessed a Sig Sauer P226 handgun. Velazquez-Trejo was also previously deported from the United States in May 2008. Norman Enrique Lopez-Santamaria , 42, of Honduras, is charged with illegally reentering into the United States and failure to notify of a change of address. Lopez-Santamaria was previously deported from the United States four times: in October 2002, in July 2009, in August 2010, and again in May 2014. Rogelio Hernandez-Flores , 50, of Mexico, is charged with illegally reentering the United States and failure to notify of a change of address. Hernandez-Flores was previously deported from the United States three times: in August 1997, July 2003, and again in November 2007. Luis Zamora-Cruz , 47, of Mexico, is charged with illegally reentering the United States and failure to notify of a change of address. Zamora-Cruz was previously deported from the United States in July 2010 and again in May 2017. Christian Emanuel Valladares-Sierra , 25, of Honduras, is charged with illegally reentering the United States and failure to notify of a change of address. Valladares-Sierra was previously deported from the United States in September 2018. Josue Oveniel Martinez-Avalo , 31, of Honduras, is charged with illegally reentering into the United States and failure to notify of a change of address. Martinez-Avalo was previously deported from the United States in June 2014. Luis Alfredo Navarrete Pastrana , 32, of Mexico, is charged with illegal reentry into the United States. Pastrana was previously deported from the United States in October 2021. Bryan Flowers , 53, of Hickory, N.C., is charged with bank robbery. According to the indictment, on April 17, 2025, Flowers allegedly robbed the Peoples Bank located in Lincolnton, N.C., by force, violence, and intimidation. Dwayne Furlow Chaney , 40, of Charlotte, is charged with possession of a firearm by a felon. Chaney allegedly illegally possessed a Smith & Wesson M&P, .40 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction. Marshall Demetrius Rice , 45, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Rice illegally possessed a Smith & Wesson, model SD9VE, 9mm pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction. Damiyus Diamonte Fowler , 28, of Charlotte, is charged with possession of a firearm by a felon. Fowler allegedly illegally possessed a Glock 19, Gen 5 9mm caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction. Aaron Deondre Conway , 41, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Conway illegally possessed a Walther, Model PPK/S .380 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction. Jamil Omire Ali , 31, of Charlotte, is charged with possession of a firearm by a felon. Ali allegedly illegally possessed a Smith & Wesson M&P Shield, .40 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction. Operation Take Back America is a nationwide initiative to repel the invasion of illegal immigration, achieve total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In making today’s announcement, U.S. Attorney Ferguson credited Homeland Security Investigations, Immigration and Customs Enforcement Removal Operations, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigations that led to the charges. U.S. Attorney Ferguson also commended the local law enforcement agencies that assisted in the investigation and apprehension of the defendants. Assistant U.S. Attorneys with the Criminal Division of the U.S. Attorney’s Office in Charlotte are prosecuting the cases.


title: Construction Manager Sentenced To Prison For Multimillion-Dollar Embezzlement And Tax Evasion

component: USAO - New York, Southern

body_text: Jay Clayton, the United States Attorney for the Southern District of New York, announced today that JOSE GARCIA was sentenced to 27 months in prison for committing two lengthy fraud crimes—a $4.5 million embezzlement crime and a $2.1 million tax evasion crime. In the embezzlement scheme, GARCIA had a lucrative no-show job with a technology company from 2012 to 2019. GARCIA did no work for the technology company, but GARCIA’s co-conspirator, a technology executive, approved millions in payments to GARCIA and GARCIA’s shell entities. In the tax evasion scheme, GARCIA neither filed tax returns nor paid income taxes from 2011 through 2019. GARCIA previously pled guilty to wire fraud conspiracy and tax evasion before U.S. District Judge Dale E. Ho, who imposed today’s sentence. Three other members of the embezzlement conspiracy have also pled guilty to date. “Jose Garcia engaged in a lengthy embezzlement scheme that involved a no-show job, fraudulent billings, and largescale cash kickbacks,” said U.S. Attorney Jay Clayton. “Garcia then doubled-down and sought to conceal his embezzlement activities by committing another crime – tax evasion. In all, Garcia stole millions at the expense of hard-working, tax-paying Americans. He then used the proceeds of his frauds to fund a lavish lifestyle. For these brazen crimes, Garcia has been sentenced to prison.” According to the allegations contained in the Indictment, the Superseding Information to which GARCIA pled guilty, and statements made in public filings and in public court proceedings: The Embezzlement Scheme From approximately May 2010 through February 2019, GARCIA’s co-defendant, Mark Angarola, spearheaded a large fraud scheme to unlawfully enrich himself and his co-conspirators (the “Conspirators”) by submitting and causing to be submitted fraudulent invoices and expenses to an information technology (“IT”) services company (the “Contractor”), at which Angarola was employed in a senior position. In total, the embezzlement scheme caused a loss of more than $7 million. GARCIA received the majority of the scheme’s fraud proceeds: $4,554,950. Angarola was a New York-based Global Account General Manager at the Contractor. He was responsible for managing the Contractor’s relationship with a particular client, which was a subsidiary of a global financial institution (the “Client”). The Contractor had a service contract with the Client, pursuant to which the Contractor provided IT support services to the Client at locations across the U.S. The Contractor subcontracted certain of this work to a technology solutions company (the “Subcontractor”). Pursuant to the agreement between the Contractor and the Subcontractor (the “Subcontract”), the Subcontractor provided certain IT support services directly to the Client in the place of the Contractor. Angarola was responsible for oversight of the Subcontractor’s performance on the Subcontract, which included approving payment to the Subcontractor on invoices submitted for work purportedly performed and expenses purportedly incurred in the Subcontractor’s performance on the Subcontract. Angarola abused his position to fraudulently enrich himself, his family, and his friends. For instance, he arranged for the Subcontractor to hire certain of his family members, friends, and subordinates, despite the fact that these individuals lacked apparent qualifications to perform deskside IT work. He arranged for the Subcontractor to hire, among others, his wife (a homemaker); his former college roommate (a police sergeant); and his close friends, including GARCIA (a construction manager) and GARCIA’s wife (a schoolteacher). Thereafter, various Conspirators falsely reported to the Subcontractor that they had performed work under the Subcontract and incurred business expenses. The Subcontractor submitted invoices to the Contractor for the hours purportedly worked and business expenses purportedly incurred by several of the Conspirators, and Angarola, in turn, caused the Contractor to pay the Subcontractor on these fraudulent invoices. The purported business expenses incurred by several Conspirators, and ultimately paid for by the Contractor at the direction of Angarola, included restaurant meals, hotel stays, transportation fees, a cruise, and gentlemen’s clubs. In fact, the expenses were personal expenses and were not reimbursable under the Contractor’s policy. GARCIA was a central beneficiary of the embezzlement scheme and received the majority of the fraud proceeds. These fraud proceeds were paid in part to GARCIA personally, and in part to his shell entities. GARCIA did no work whatsoever for the Contractor or Subcontractor, but invoiced the Subcontractor, month after month, requesting payment for purported “Management Fees.” For instance, at different points in the scheme, GARCIA requested monthly payment of $36,000, $45,000, $51,000, or $60,000. Angarola approved these payments to GARCIA on behalf of his employer, the Contractor. In return, GARCIA paid Angarola cash kickbacks exceeding $1 million. GARCIA participated in the embezzlement scheme despite having fulltime, gainful employment elsewhere as a consultant and project manager in the construction industry. Financial records reveal that GARCIA spent fraud proceeds on, among other things, private school tuition, rent, luxury travel, luxury items, gym memberships, and sports memorabilia. For instance, GARCIA paid for stays at luxury hotels such as the Ritz Carlton (in four different cities), the Waldorf Astoria, and the Plaza. And GARCIA spent more than $50,000 on luxury items, including expensive purchases at Cartier, Hermes, Gucci, Louis Vuitton, Bulgari, Burberry, Bianca Jewelers, a glass blower in Venice, and a violin shop specializing in Stradivarius models. Tax Evasion From 2011 through 2019, GARCIA also committed tax evasion, resulting in a tax loss to the Internal Revenue Service (“IRS”) of approximately $2,116,605. For this nine-year period, GARCIA neither filed tax returns nor paid income taxes. As such, GARCIA failed to report to the IRS the income he derived from the embezzlement scheme as well as the income he derived from other business interests and sources. GARCIA used shell entities to conceal his receipt of income, including by creating such entities, diverting income to such entities, and using entity bank accounts to pay for his personal expenses. * * * In addition to his prison term, GARCIA, 53, of New York, New York, was sentenced to three years of supervised release. GARCIA was also ordered to forfeit $4,554,950 and pay restitution in the amount of $7,007,055. Mr. Clayton praised the outstanding investigative efforts of the Federal Bureau of Investigation, New York Field Office; the IRS-Criminal Investigation, New York Field Office; and the U.S. Department of Labor – Office of Inspector General, Northeast Regional Office. This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit, along with the Justice Department’s Tax Division. Assistant U.S. Attorneys Michael D. Neff, Timothy V. Capozzi, and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.


title: Yakama Man Sentenced to Prison for Assault with a Dangerous Weapon

component: USAO - Washington, Eastern

body_text: Yakima, Washington – Acting United States Attorney Richard R. Barker announced that United States District Judge Mary K. Dimke sentenced, Joey Anthony Andy, age 44, to 63 months in prison for assault with a dangerous weapon. Judge Dimke also imposed 3 years of supervised release. Andy was convicted of this crime on May 15, 2024, following a jury trial. According to court documents and information disclosed at trial and at the sentencing hearing, on April 4, 2023, a victim, an enrolled member of the Yakama Nation, was leaving Noah’s Ark Homeless shelter in Wapato, Washington. As the victim was walking away from the shelter, he was confronted by Andy. Andy was upset with the victim because Andy believed the victim had stolen his Bluetooth speaker. Andy then shoved the victim. After the victim stepped back, Andy pulled out a knife, lifted the sleeve on this hooded sweatshirt (presumably to ensure he did not get blood on his clothing), and lifted the knife, and then swung the knife at the victim’s head. As the victim attempted to dodge the blow, the knife hit the victim, leaving a four-inch laceration to the side of the victim’s head. The laceration cut down to the victim’s skull and required fourteen staples to close. The victim ran back to Noah’s Ark for help. There, employees rendered first aid and called police. Wapato Police later located Andy in the neighborhood near Noah’s Ark. Although Andy attempted to flee, officers took Andy into custody without incident after a short chase. At the sentencing hearing, MMIP AUSA Black Horse argued that a maximum guideline sentence was necessary to afford adequate deterrence and to protect the public from further crimes of the Defendant. “This assault occurred outside the doors of Noah’s Ark Shelter, a low barrier shelter and service center for chronically homeless persons based in downtown Wapato. Noah’s Ark Shelter is the only low-barrier shelter and service center of its kind in the lower Yakima Valley, and Native American individuals comprise a significant portion of its clientele,” MMIP AUSA Black Horse told the court. She further noted that “individuals who frequent Noah’s Ark Shelter are inherently at risk, experience marginalization, and a reduced sense of personal safety based on their unhoused status. The Defendant’s violent knife assault outside of Noah’s Ark Shelter only compounds these circumstances, and more importantly, may have a chilling effect on unhoused vulnerable persons seeking out the critical services provided by Noah’s Ark Shelter.” “Mr. Andy attacked his victim without provocation or justification,” stated Acting U.S. Attorney Barker. “Because of the tremendous law enforcement response from our federal, state, local, and Tribal partners, the victim’s voice was heard and Mr. Andy will be held to account for this attack.” This case is part of the Department of Justice’s Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP and MMIP-related cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorneys Bree R. Black Horse and Todd Swensen. 1:23-cr-02054-MKD


title: Sussex County Woman and Texas Man Admit to Exploiting a Child and Producing Child Pornography

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Sussex County, New Jersey woman and a Texas man admitted to exploiting a child and producing child pornography, as well as to other child pornography offenses, U.S. Attorney Alina Habba announced. Dominique Saczawa, 34, of Sparta, New Jersey, and Russell Lynn Davis, Jr., 47, of Heller, Texas, pleaded guilty before U.S. District Judge Edward S. Kiel in Camden federal court. Saczawa pleaded guilty to production of child pornography, distribution of child pornography, advertisement of child pornography, and possession of child pornography. Davis pleaded guilty to conspiracy to produce child pornography, production of child pornography, and receipt of child pornography. According to documents filed in these cases and statements made in Court: Saczawa admitted to sexually exploiting a then-four-year-old by engaging in sexual contact and then producing images and videos of that sexual contact. Saczawa also admitted to sharing these videos and/or images with others, including Davis. Davis admitted to conspiring with Saczawa to sexually exploit the victim, including instructing Saczawa in a video message to perform oral sex on the victim. Saczawa also admitted to running a group chat within an online messaging application in which participants discussed and shared content and/or images of child pornography. As an administrator of this group, Saczawa solicited participants to share such content. The images Saczawa shared included images of toddlers potentially as young as one year old being sexually assaulted. Davis had previously been convicted in Texas of indecent contact with a child. “Protecting small children, the most vulnerable of our community, is among the most important work that we can do. Every child deserves to be in a home free of sexual exploitation, and we will prosecute those that threaten this right. When predators target children, we are committed to unmasking and holding them accountable.” - U.S. Attorney Alina Habba "There are truly no words to describe how grotesque the behavior in this case is. A woman admitting to using a prepubescent child to create child sexual assault material is beyond the bounds of any acceptable human behavior – and it always will be. Our FBI Newark Child Exploitation and Human Trafficking Task Force, alongside our partner agencies, do the work of superheroes each and every day, saving children from monsters and preventing evil from harming more victims," said Acting Special Agent in Charge Terence G. Reilly. U.S. Attorney Habba credited FBI Newark’s Child Exploitation and Human Trafficking Task Force, under the direction of Acting Special Agent in Charge Terence G. Reilly, with the investigation. The charge of production of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison, or in the case of a defendant who has previously been convicted of a sex offense, a mandatory minimum penalty of 25 years and a maximum potential penalty of 50 years in prison, and a $250,000 fine. The charge of receipt of child pornography carries a mandatory minimum penalty of 5 years in prison and a maximum potential penalty of 20 years in prison, or in the case of a defendant who has previously been convicted of a sex offense, a mandatory minimum penalty of 15 years and a maximum potential penalty of 40 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of advertisement of child pornography carries a mandatory minimum penalty of 15 years in prison and a maximum potential penalty of 30 years in prison, and a $250,000 fine. Saczawa and Davis are both scheduled for sentencing on September 22, 2025. 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 Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc . The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering, and Recovery Unit in Newark. ### Defense counsel for Saczawa: Stephen Natoli, Esq. Defense counsel for Davis: Anthony Iacullo, Esq. saczawa.information.pdf davis.indictment.pdf


title: Mercer County Man Sentenced to 12 Years in Prison for Witness Tampering Conspiracy in Sex Trafficking Case

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Terry Leon Blankenship, 56, of Bluefield, was sentenced on Tuesday, May 27, 2025, to 12 years in prison, to be followed by a lifetime of supervised release, for obstruction of justice related to a sex trafficking prosecution. On January 18, 2024, a federal jury found Blankenship guilty of interfering with the enforcement of federal sex trafficking laws and attempted witness tampering and found Blankenship and his wife, Laurel Blankenship, guilty of conspiracy to commit witness tampering following a one-day trial. Evidence at trial proved that from on or about April 4, 2023 through at least July 25, 2023, the couple conspired to influence the testimony of a witness in a federal sex trafficking case against Terry Leon Blankenship. The witness was a 12-year-old girl who alleged that Terry Leon Blankenship had paid her for sexual activity with vapes and other items. Based upon those allegations, Terry Leon Blankenship was indicted on a charge of sex trafficking of a minor under the age of 14. Later, the minor victim recanted the allegation during the course of a West Virginia Child Protective Services (CPS) investigation that could have resulted in her being placed into foster care. In multiple recorded audio and video jail calls while Terry Leon Blankenship was incarcerated pending trial in the sex trafficking case, he and his wife had numerous conversations about ensuring that the minor witness maintained the recantation she had allegedly made to CPS. The recorded conversations included discussions about bribing the minor witness with an iPhone to ensure she stood by her recantation. Citing evidence presented at an earlier hearing, the Court concluded at sentencing that Terry Leon Blankenship engaged in sex acts with the minor female, that her initial disclosure of his sexual abuse was credible, and that the later recantation was not. The Court also found that Terry Leon Blankenship obstructed justice by testifying falsely at the earlier hearing. At the time of this offense conduct, Terry Leon Blankenship was a registered sex offender after pleading guilty to possession of child pornography in United States District Court for the Southern District of West Virginia on December 5, 2008. Terry Leon Blankenship was sentenced to eight years and four months in prison in that case, and was serving a lifetime term of supervised release at the time of the alleged sex trafficking offense and subsequent attempts at witness tampering. “The evidence showed that Terry Leon Blankenship was a registered sex offender on supervised release for possessing child pornography when he repeatedly sexually abused a minor female over several months,” said Acting United States Attorney Lisa G. Johnston. “He preyed on her and then conspired to escape accountability for his crimes by attempting to corruptly persuade the minor to recant her initial allegations.” Laurel Blankenship, 58, of Bluefield, is scheduled to be sentenced on May 29, 2025. Terry Leon Blankenship is scheduled for a revocation hearing on his alleged violations of supervised release on June 10, 2025. Johnston made the announcement and commended the investigative work of the Mercer County Sheriff’s Department. United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald and former Assistant United States Attorney Andrew D. Isabell 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. 1:23-cr-97. ###


title: Father And Son Plead Guilty To Defrauding Sports Park Bondholders

body_text: Jay Clayton, the United States Attorney for the Southern District of New York, announced today that RANDY MILLER and CHAD MILLER pled guilty to securities fraud and aggravated identity theft in connection with their scheme to defraud municipal bond investors. The defendants pled guilty before U.S. Magistrate Judge Robyn F. Tarnofsky and will be sentenced before U.S. District Judge Lewis A. Kaplan at a later date. “Randy and Chad Miller’s fraudulent actions resulted in nearly total losses for investors,” said U.S. Attorney Jay Clayton. “As today’s guilty pleas make clear, this Office remains committed to protecting the integrity of the public finance system and holding accountable those who exploit investors’ trust. This case demonstrates the strength of our partnership with the FBI, whose diligent investigation uncovered the defendants’ fraud.” According to the allegations contained in the Indictment, the Superseding Information, public filings, and statements made in court: RANDY MILLER and CHAD MILLER defrauded investors in municipal bonds used to fund the development of a major sports complex in Mesa, Arizona called Legacy Park. In connection with the initial $250 million bond offering in August 2020 and supplemental bond offering in June 2021, the defendants lied to potential investors about the interest sports organizations and other potential customers had in using or relocating to Legacy Park. The defendants and their associates forged and altered purported “binding” letters of intent and other documents from those potential customers to make it appear that the customers were committing to holding many events at Legacy Park, with a significant number of spectators, and agreeing to pay large fees – all far beyond what the organizations were considering, if they were considering Legacy Park at all. In some instances, RANDY MILLER and CHAD MILLER signed and directed others to sign customers’ names without the customers’ knowledge or permission. At other times, the defendants copied and directed others to copy the signatures of other customers onto the fabricated letters, again without the customers’ knowledge or permission. As part of their scheme, the defendants forged documents on behalf of numerous persons and organizations, including an organization that promotes sports for disabled athletes. RANDY MILLER and CHAD MILLER presented the fraudulent documents to prospective bond investors and incorporated them into their solicitation materials by claiming that Legacy Park would be 100% occupied at opening and would generate nearly $100 million in revenue in its first year of operations, more than enough to cover the bond payments. After the Legacy Park bonds were sold to investors, RANDY MILLER and CHAD MILLER profited personally from the bond proceeds raised. Legacy Park opened in 2022 and failed shortly thereafter, defaulting on its bonds in October 2022 and filing for bankruptcy in May 2023. The project was later sold in bankruptcy for less than $26 million. Of those proceeds, less than $2.5 million went to repay the approximately $284 million owed to Legacy Park bondholders. * * * RANDY MILLER, 70, and CHAD MILLER, 41, both of Phoenix, Arizona, pled guilty to one count of securities offering fraud, which carries a maximum sentence of five years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. As part of their guilty pleas, money judgments in the amounts of $7,289,134.89 and $4,798,980.19 were entered against RANDY MILLER and CHAD MILLER, respectively. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action. The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Matthew R. Shahabian and Courtney L. Heavey are in charge of the prosecution. us_v._randy_miller_and_chad_miller_superseding_information.pdf


title: La Crosse Man Sentenced to 7 ½ Years for Methamphetamine Trafficking

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Toudeng Thao, 59, La Crosse, Wisconsin was sentenced yesterday by U.S. District Judge William M. Conley to 90 months in federal prison for distributing methamphetamine and possessing methamphetamine for distribution. Thao pleaded guilty to these charges on March 3, 2025. On January 25, 2024, law enforcement arrested both Thao and codefendant Joua Thao during a traffic stop as they returned to La Crosse, Wisconsin, from Minnesota after picking up approximately 443 grams of methamphetamine for distribution. Thao and Joua Thao were previously married but were divorced at the time of the arrest. In the six months before his arrest, Thao distributed or possessed for distribution over 5 ½ kilograms of methamphetamine. Thao claimed to have received methamphetamine from multiple sources in Minnesota, California, Canada, and Mexico. He also claimed he supplied six drug distributors. Through a series of controlled purchases, Thao and Joua Thao sold a confidential informant a total of 203.9 grams of methamphetamine in La Crosse. Thao also possessed a firearm during one drug transaction and sought more firearms to traffic to his drug suppliers. At sentencing, Judge Conley said he was struck by Thao’s statements rationalizing his turn to drug trafficking and found Thao’s minimal criminal history to be puzzling at best given his violent characteristics. Judge Conley noted Thao’s substantial drug dealing was serious enough on its own, but his involvement with firearms, threats of violence, and history of violence against his codefendant and family made him a serious risk to the community. Joua Thao also pleaded guilty and on March 20, 2025, Judge Conley sentenced her to 5 years of probation for her role in assisting with the drug transactions. The charges against Toudeng and Joua Thao were the result of an investigation conducted by the West Central Metropolitan Enforcement Group, Drug Enforcement Administration, Wisconsin Department of Justice – Division of Criminal Investigation, Crawford County Sheriff’s Office, Prairie du Chien Police Department, La Crosse County Sheriff’s Office, Campbell Police Department, La Crosse Police Department, Onalaska Police Department, and Wisconsin State Patrol. Assistant U.S. Attorney Steven Ayala prosecuted this case.


title: Former Deputy Superintendent of the Norfolk County Sheriff’s Office Arrested and Charged With Extortion

component: USAO - Massachusetts

body_text: BOSTON – The former Deputy Superintendent at the Norfolk County Sheriff’s Office (NCSO) has been arrested and charged in connection with an alleged extortion scheme to force subordinate employees to perform free labor at his residence. Thomas Brady, 53, of Norwood, has been indicted by a federal grand jury on four counts of extortion and three counts of use of interstate facilities to commit bribery and extortion. Brady was arrested this morning and will appear in federal court in Boston later today. According to the charging documents, from 2021 through May 2023, Brady served as the Assistant Deputy Superintendent (ADS) for Jail Operations at NCSO. Brady was promoted in May 2023 to Deputy Superintendent. It is alleged that, between December 2021 and mid-November 2022, Brady utilized his official position and authority as an ADS to order two NCSO maintenance officers (Maintenance Officers A and B), who were subordinate in position to Brady, to perform home repairs at his residence during and after work hours. During the first instance, in late 2021, Brady allegedly ordered Maintenance Officer A to install a new showerhead at Brady’s residence. Because of Brady’s position and authority as an ADS at the NCSO, Maintenance Officer A feared that if they refused Brady’s request, Brady would use his official position and authority to negatively affect Maintenance Officer A’s job position at NCSO – including the possibility of causing Maintenance Officer A to lose their preferred shift schedule, position and/or employment at the NCSO. It is alleged that Maintenance Officer A complied with Brady’s order and Brady drove Maintenance Officer A to his residence to install the showerhead, during NCSO work hours. Brady then allegedly drove Maintenance Officer A back to NCSO to continue their workday. During the second instance, on or about Feb. 13, 2022, which was a Sunday, Brady allegedly contacted Maintenance Officer A to fix his water heater. It is alleged that Maintenance Officer A was unavailable that day; however, the following morning, Maintenance Officer A allegedly drove to Brady’s residence, instead of going to work at NCSO, to fix Brady’s water heater. Specifically, after arriving at Brady’s residence, Maintenance Officer A allegedly disconnected the existing water heater in Brady’s basement, carried the water heater to their truck and drove the water heater and Brady to Home Depot. There, Brady allegedly purchased a new 50-gallon water heater, which Maintenance Officer A carried to their truck, drove back to Brady’s residence, carried the into Brady’s residence and connected. Afterwards, Maintenance Officer A allegedly drove to NCSO to finish their shift. It is further alleged that, between October 2022 and mid-November 2022, Brady ordered Maintenance Officer B to his residence to fix the heating system. Because of Brady’s official position and authority as an ADS at the NCSO, Maintenance Officer B allegedly feared that if Maintenance Officer B refused Brady’s request to help fix the heating system, Brady would use his official position and authority to negatively affect Maintenance Officer B’s job position at NCSO – including the possibility of causing Maintenance Officer B to lose their preferred shift schedule, position and/or employment at the NCSO. Maintenance Officer B allegedly complied with the order, and on or about Oct. 6, 2022, drove to Brady’s residence to troubleshoot his heating system during NCSO work hours. It is alleged that, after Brady had subsequent problems with his heating system and contacted Maintenance Officer B to replace the circulator pump. On or about Oct. 15, 2022, Maintenance Officer C allegedly learned that Brady was looking for Maintenance Officer B and the two exchanged the following text messages: On two occasions between Nov. 1, 2022 and Nov. 2, 2022, Maintenance Officer B allegedly returned to Brady’s residence – with Maintenance Officer C assisting – where they drained the hot water system, removed the old circulator pump and installed the new circulator pump The charge of extortion provides for a sentence of up to 20 years in prison, three years of supervised release and a $250,000 fine. The charge of use of interstate facilities to commit bribery and extortion provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley and Kimberly Milka, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Lucy Sun of the Public Corruption & Special Prosecutions Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Evansville Duo Sentenced to Federal Prison for Death of a Toddler and Non-Fatal Overdose of an Infant

component: Drug Enforcement Administration (DEA)

body_text: EVANSVILLE – Arcinial Montreal Watt, 36, and Jazmynn Alaina Brown, 27, both of Evansville, have been sentenced for their roles in a fentanyl dealing operation that resulted in the death of a three-year-old girl. Watt has been sentenced to 20 years in federal prison followed by five years of supervised release after pleading guilty to conspiracy to distribute fentanyl resulting in death. Watt has also been ordered to pay $6,007 in restitution. Brown has been sentenced to 15 years in federal prison followed by five years of supervised release after pleading guilty to conspiracy to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. According to court documents and evidence presented during Brown’s sentencing hearing, between August and October of 2021, Watt obtained at least 400 grams of fentanyl-laced counterfeit pills and stored them in a bedroom he shared with his girlfriend, Jazmynn Brown. Brown sub-leased the room in a shared residence on East Sycamore Street in Evansville, where she lived with two other women and their four children—ages 4, 3, 18 months, and 2 months. Pills were sold and divided for sale by Brown inside the residence. On October 26, 2021, the three older children accessed the bedroom where the pills were stored and removed a plastic bag containing fentanyl pills prepared for sale. The pills spilled, exposing the children to direct contact. Although Brown recovered some of the pills, several remained unaccounted for. The three-year-old girl who came into contact with the pills was pronounced dead the following morning as a result of fentanyl poising. The 18-month-old girl was taken to the hospital, where she was placed on a NARCAN drip and survived her fentanyl poisoning. During the investigation, agents seized over 5,750 fentanyl-laced counterfeit pills marked M30, more than $25,000 in cash, and a firearm. According to the Drug Enforcement Administration, as little as 2 milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people. “This heartbreaking case underscores the devastating consequences of fentanyl trafficking—not just for those who use these drugs, but for innocent children caught in the crossfire,” said John E. Childress, Acting United States Attorney for the Southern District of Indiana. “The loss of a young life is a tragedy that no family should endure, and those who recklessly endanger others by distributing these deadly substances must be held fully accountable. We remain unwavering in our commitment to protecting our communities and pursuing justice for the most vulnerable among us.” “The sentencings of Mr. Watt and Ms. Brown are righteous. This case is a heartbreaking example of individuals who recklessly stored Thousands of illicit fentanyl pills in their residence, leading to the tragic poisoning death of one child and the overdose of another. The victims in this case were innocent children. The DEA, alongside our law enforcement partners, remains committed to keeping our communities safe and holding drug traffickers fully accountable,” said DEA Assistant Special Agent in Charge J. Michael Gannon. The Evansville Police Department and the Drug Enforcement Administration investigated this case. The Vanderburgh County Prosecutor’s Office Cyber Crime Task Force also provided invaluable assistance. The sentences were imposed by U.S. District Judge Matthew P. Brookman. Acting U.S. Attorney Childress thanked Assistant United States Attorneys Jeremy Kemper, Lauren Wheatley, and Todd S. Shellenbarger, as well as former Assistant U.S. Attorney, Kristian R. Mukoski, who prosecuted this case. ###


title: Department of Justice Takes Action to Enforce Title IX in California to Protect Girls’ Sports

component: Civil Rights Division

body_text: RIVERSIDE, California – The Justice Department today sent letters of legal notice to California Attorney General Rob Bonta, State Superintendent of Public Instruction Tony Thurmond, Jurupa Unified School District, and the California Interscholastic Federation (CIF) that it is opening an investigation to determine whether Title IX, a landmark federal civil rights law, is being violated by AB 1266, a state law permitting males to participate on female sports teams at state schools. The investigation is to determine whether California, its senior legal, educational, and athletic organizations, and the school district are engaging in a pattern or practice of discrimination on the basis of sex. The letters of legal notice were sent at the time the Justice Department filed a statement of interest in federal court in support of a lawsuit filed by and on behalf of girls’ athletes to advance the appropriate interpretation of Title IX to ensure equal educational opportunities and prevent discrimination based on sex in federally funded schools and athletic programs. The statement of interest is part of a national effort by the President , the Attorney General , and the Justice Department to oppose the deprivation of women and girls of fair athletic opportunities. “Title IX exists to protect women and girls in education. It is perverse to allow males to compete against girls, invade their private spaces, and take their trophies,” said Harmeet K. Dhillon, Assistant Attorney General for Civil Rights. “This Division will aggressively defend women’s hard-fought rights to equal educational opportunities.” “The law is clear: Discrimination on the basis of sex is illegal and immoral,” said United States Attorney Bill Essayli. “My office and the rest of the Department of Justice will work tirelessly to protect girls’ sports and stop anyone – public officials included – from violating women’s civil rights.” According to the allegations in the lawsuit, Save Girls’ Sports, et al. v. Thurmond, et al. , AB 1266 – passed by the California State Legislature and codified in the California Education Code – conflicts with Title IX. AB 1266 unlawfully permits males to participate on female sports teams and to use female spaces, resulting in unfair and unsafe environments for women and girls. The lawsuit alleges that this California statute “is harming hundreds – if not thousands – of female students by removing opportunities for female athletes to be champions in their own sports, robbing them of podium positions and awards, and creating unsafe and intimidating environments in their bathrooms and locker rooms.” The plaintiffs include K.S., a ninth-grade female cross-country athlete and T.S., an 11th-grade female cross-country athlete and team captain, both of whom attend Martin Luther King High School in Riverside. T.S. was removed from her position of the girls’ varsity cross-country team to make room for a biological male athlete who did not consistently attend practices and failed to satisfy many of the team’s varsity eligibility requirements. As a result, T.S. missed the opportunity to compete at a high-profile meet, lost the right to compete on the varsity level, and missed the opportunity to compete with elite fellow athletes to be recruited by universities and receive other forms of recognition. The biological male who replaced T.S. on the girls’ varsity cross-country team recently had transferred from another local high school after breaking that school’s all-time cross-country record for the girls’ cross-country team. The lawsuit further alleges that the Riverside Unified School District, Martin Luther King High School’s principal, and its assistant principal and athletic director violated the constitutional rights of T.S. and K.S. when it ordered them to stop wearing t-shirts protesting T.S.’s removal from the team. The plaintiffs are seeking declaratory and injunctive relief related to the defendants’ speech policy and rules governing participating in girls’ sports. Assistant United States Attorney Richard Park of the Civil Division’s Civil Rights Section is handling this matter. To learn more about the Civil Rights Division visit www.justice.gov/crt , and to report possible violations of federal civil rights laws go to www.civilrights.justice.gov or call toll-free at (800) 253-3931.


title: Bronx Woman Sentenced To 63 Months In Prison For Laundering Over $2 Million For African Romance Scammers

body_text: Jay Clayton, United States Attorney for the Southern District of New York, announced today that NADINE JAZIMNE WADE was sentenced to 63 months in prison for laundering more than $2 million in fraud proceeds acquired from the victims of romance fraud schemes. WADE’s sentence was imposed by U.S. District Judge Katherine Polk Failla who also presided over a two-week trial at which WADE was convicted of money laundering and bank fraud charges. “Nadine Wade used lies and deception to launder over two million dollars for scam artists in Nigeria and South Africa,” said U.S. Attorney Jay Clayton. “Those funds were stolen from our most vulnerable – elderly men and women — as part of a cruel romance scam. Today’s sentence should be a reminder that this Office will pursue all persons who participate in online scams targeting our elderly.” According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial: From in or about 2016 through in or about 2021, co-conspirators of WADE based in Nigeria and South Africa committed a series of romance scams against individuals located across the U.S. Those co-conspirators used aliases, including the names “Diego Francisco” and “Richard Francisco” (the “Francisco Alias”), to meet victims on various dating websites. After engaging in romantic conversations with the victims via phone, text, and email, those co-conspirators, posing as the Francisco Alias, asked victims for money. The Francisco Alias then instructed the victims to transfer funds to bank accounts controlled by WADE and others. WADE received fraud proceeds from victims of the Francisco Alias in personal bank accounts and business bank accounts for her shell company Royal Treasure Chest LLC, a company purportedly involved in, among other things, the sale of women’s clothing and accessories. Once WADE received fraud proceeds, she rapidly depleted her bank accounts of those funds through cash withdrawals, cashier’s checks, and the purchase of vehicles, among other means. After taking her own cut of the money, WADE transferred the bulk of the funds to other members of the scheme. From in or about 2016 through in or about 2021, WADE controlled more than 18 bank accounts that had deposits totaling over $2 million. Most of those deposits consisted of wire transfers and check or cash deposits from U.S.-based individuals who were victims of the romance fraud scam described above. * * * In addition to the prison term, WADE, 30, of the Bronx, New York, was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,772,618 and forfeit $2,261,791. Mr. Clayton praised the outstanding work of the U.S. Secret Service and the Internal Revenue Service, Criminal Investigation. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Micah F. Fergenson, Matthew J. King, and Dina McLeod are in charge of the prosecution, with assistance from Paralegal Specialist Jayda Foote.


title: Independence Man Charged with Cocaine Trafficking, Illegal Firearms

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – An Independence, Mo., man has been charged in federal court with possessing over two kilograms of cocaine and illegally possessing three firearms. Jacob N. Dodge, 26, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. on Tuesday, May 27. The complaint charges Dodge with participating in a conspiracy to distribute cocaine, possessing cocaine with the intent to distribute, and possessing firearms in furtherance of a drug trafficking crime. The complaint alleges investigators attempted to arrest Dodge on May 23, 2025 after a controlled drug evidence purchase. Members of the Kansas City, Mo. Police Department Tactical Unit attempted to initiate a high-risk car stop utilizing a Vehicle Intervention Tactic, also known as a “VIT”. Dodge maneuvered his vehicle out of the VIT and fled at a high rate of speed. Three tactical vehicles attempted the VIT maneuver again, and Dodge purposely struck the occupied police vehicles with his vehicle. Police successfully disabled Dodge’s vehicle in the front yard of a residence and arrested Dodge. Investigators executed a federal search warrant on Dodge’s residence and searched Dodge and his vehicle after he was arrested. Investigators found over 2 kilograms of cocaine, 290 kilograms of marijuana, 251 kilograms of THC wax, 852 kilograms of THC vapes, 125 kilograms of THC syrup, 44 kilograms of THC edibles, 24 kilograms of miscellaneous THC items, 35 kilograms of THC resin, 5 kilograms of psilocybin mushrooms, 250 kilograms of psilocybin mushroom bars, and 46 grams of LSD. Investigators also found $78,943 in cash and 6 firearms. The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Kansas City, Missouri Police Department, the FBI, IRS-Criminal Investigations, the Independence, Missouri Police Department, and the Johnson County, Kansas Sheriff’s Office. KC Metro Strike Force This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.


title: Ohio Man Sentenced to 30 Years in Prison for Sexually Exploiting Child He Met Online

component: Federal Bureau of Investigation (FBI)

body_text: CHICAGO — A federal judge has sentenced an Ohio man to 30 years in prison for sexually exploiting a Chicago-area girl with whom he communicated on social media. ANDREW BOLTZ began communicating with the then-16-year-old girl in 2020 on the social media application Omegle. Boltz continued communicating with the girl via text messaging and the social media application Snapchat. During these communications, Boltz enticed the victim into sending him sexually explicit images of herself. Boltz instructed the girl on what type of sexually explicit conduct should be portrayed in the images. A federal jury in 2023 convicted Boltz, 27, of Kenton, Ohio, on exploitation and child pornography charges. The victim bravely testified at trial about being manipulated and degraded by Boltz. U.S. District Judge John Robert Blakey imposed the 30-year prison sentence during a hearing on Friday in federal court in Chicago. The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Peru, Ill. Police Department, LaSalle County, Ill. State’s Attorney’s Office, Wilmington, Ill. Police Department, Will County, Ill. State’s Attorney’s Office, Will County, Ill. Children's Advocacy Center, DuPage County Sheriff’s Office, Norwalk, Ohio Police Department, and the Cleveland, Ohio Field Office of the FBI. Assistant U.S. Attorneys Edward A. Liva, Jr., Elly Moheb, and Kavitha Babu represented the government. This case was brought as part of Project Safe Childhood (PSC) , a nationwide initiative to combat child sexual exploitation and abuse. PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, while also providing critical services to victims. If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to https://www.missingkids.org/ or calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.


title: Former Coach and Child Predator Sentenced for Sexual Crimes Against Three Minor Children

body_text: TULSA, Okla. – Today, U.S. District Judge Sara E. Hill sentenced Brandon Earl Presley, 30, of Bixby, for two counts of Sexual Abuse of a Minor in Indian Country, two counts of Abusive Sexual Contact with a Minor in Indian Country, and one count each of Production of Child Pornography, and Possession of Child Pornography. Judge Hill ordered Presley to serve 264 months imprisonment, followed by a lifetime of supervised release. Upon his release, Presley will also be required to register as a sex offender. “Presley is a child predator who used his position as a coach to groom and seek out minor children through social media. His actions were undetected until someone had the courage to report him,” said U.S. Attorney Clint Johnson. “I want to encourage parents and teens to learn about the dangers of social media.” Law enforcement began investigating a tip that Presley had sex with a 14-year-old on a college campus during a high school track meet. The tip included a photo of Presley from social media and described how Presley would often hang out in his car or help at high school track practice or meets. While investigating the tip, law enforcement discovered a photo Presley took while sexually abusing an unknown minor child. Law enforcement found the location of the minor child and discovered that the child was only 13 years old. Presley chatted with the minor child through social media. When the minor child was at home alone, Presley showed the minor child pornography for “education,” coerced the minor child to engage in sexual activity, and photographed it. Court records show that Presley admitted to sexually abusing the minor child, taking a photo of the sexual abuse, and keeping the photo. During the investigation, law enforcement discovered that Presley had other minor victims. In the summer of 2022, Presley found another 13-year-old minor victim online through social media. He lied to the minor victim, stating he was 18 years old. Presley attempted to coerce the minor child to engage in sexually explicit activity. Court records show that Presley admitted to abusive sexual contact with the minor child. Presley further admitted to abusive sexual contact and sexual abuse of a 15-year-old minor victim in 2019, which led to his termination as an assistant football coach. He approached the minor at school, groomed and coerced her using social media. When Presley convinced the minor child to meet, he showed her a video of himself engaging in sexual activity to “teach” the minor. He repeatedly told the minor not to tell anyone. Presley is a citizen of the Muscogee Creek Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons. Homeland Security Investigations, the Bixby Police Department, the Tulsa County Sheriff’s Office, and the Norman Police Department investigated the case. Assistant U.S. Attorneys Kate Brandon, Alicia Hockenbury, and Elliot 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 CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC .


title: Freight Forwarding Company Executive Arrested on Federal Indictment Alleging Massive Scheme to Avoid Customs Duties Payments

component: USAO - California, Central

body_text: LOS ANGELES – The chief financial officer (CFO) at a Downtown Los Angeles-based shipping company has been arrested on a 22-count federal grand jury indictment charging him and the company’s CEO with using fraudulent documents, shell companies, bribes to public officials, and kickbacks to Mexican drug cartels to smuggle billions of dollars’ worth of goods from the United States into Mexico, repeatedly lying to U.S. customs officials and defrauding Mexico out of hundreds of millions of dollars’ worth of duties owed, the Justice Department announced today. Ralph Olarte, 55, of Glendale, the CFO of Sport LA Inc., was arrested late last night at Los Angeles International Airport. He is expected to make his initial appearance and be arraigned this afternoon in United States District Court in downtown Los Angeles. Also charged in the indictment is Humberto Lopez Belmonte, 53, of Mexico City, who was arrested and arraigned on Tuesday in Los Angeles federal court. Lopez pleaded not guilty to the charges against him and a July 21 trial date was scheduled. A federal magistrate judge ordered Lopez released on $100,000 bond. Olarte and Lopez are charged with one count of conspiracy to smuggle goods from the United States. Both defendants and their company, Sport LA Inc., also are charged with one count of smuggling goods from the United States, three counts of knowingly submitting false and misleading export information, five counts of wire fraud for false information submitted to U.S. Customs and Border Protection (CBP), one count of conspiracy to commit wire fraud against Mexico, one count of conspiracy to commit money laundering, and seven counts of international promotional and concealment money laundering. Sport LA is charged with three counts of making false statements to a government agency. The other defendant companies – H&R Logistics Inc. and Olarte Transport Service Inc. – are charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. According to the indictment returned on April 30 and unsealed Tuesday, Olarte and Lopez, from at least 2013 to the present, operated a lucrative international shipping enterprise. Through shipping companies they controlled, Olarte and Lopez smuggled billions of dollars’ worth of goods from and through the United States into Mexico. Many times, they concealed the nature of the shipped goods, some of which contained contraband. The companies allegedly submitted millions of false and misleading statements to U.S. customs officials, used shell companies in Mexico to shield their true customers, and created and presented false documents – including sham certificates for paid Mexican import taxes. They also bribed Mexican customs officials, paid kickbacks to drug cartels – including the Jalisco New Generation Cartel (CJNG) – to operate the scheme and smuggled bulk cash into the U.S. to avoid reporting requirements. Olarte and Lopez then laundered the proceeds of their scheme back from the true Mexican customers, through the shell companies, and ultimately into the companies’ U.S. bank accounts. As a result of the conspiracy, Olarte and Lopez personally received millions of dollars in illicit proceeds. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Olarte and Lopez would face a statutory maximum sentence of 20 years in federal prison for each count of wire fraud- and money laundering-related count, up to five years in federal prison for each smuggling- and false statements-related count, and up to two years in federal prison for each count of knowingly submitting false and misleading export information. Homeland Security Investigations (HSI), CBP, IRS Criminal Investigation, and the Drug Enforcement Administration are investigating this matter. The cases announced today were investigated by HSI’s El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California. The Transnational Organized Crime Section is prosecuting this case.


title: Inmate Sentenced to 33 Months in Prison for Assault with a Deadly Weapon in U.S. Penitentiary Atwater

component: USAO - California, Eastern

body_text: FRESNO, Calif. — U.S. District Judge Kirk E. Sherriff sentenced Delonte Williams, 37, of Washington, D.C., Tuesday to 33 months in prison today for assault with a deadly weapon in the U.S. Penitentiary at Atwater, Acting U.S. Attorney Michele Beckwith announced. According to court documents, on April 28, 2024, Williams chased another inmate around a cell block while holding a knife-like, jail-made weapon. Williams, along with another inmate, used his jail-made knife to stab the victim, which wounded him and required him to seek medical attention. Williams’ co-defendant, Jarvell Kent, is scheduled for sentencing before Judge Sherriff on June 23, 2025. This case was the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorney Robert Veneman-Hughes prosecuted the case.


title: Fresno Man Pleads Guilty to Paycheck Protection Program Loan Fraud

body_text: FRESNO, Calif. — Gurjeet Bath, 37, of Fresno, pleaded guilty Tuesday to one count of theft of government property, Acting U.S. Attorney Michele Beckwith announced. According to court documents, Bath and other family members operated two trucking businesses: G.S. Bath Inc. and Complete Transportation Solutions (CTS), operating in Fresno County. In 2020 and 2021, Bath applied for and received three PPP loans totaling over $1 million. To obtain the loans, Bath knowingly falsified records to inflate his businesses’ employees and their wages. Bath then used approximately $600,000 of those funds to purchase two parcels of agricultural land in Fresno County. This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Small Business Administration (SBA) Office of Inspector General. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case. Bath is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Oct. 6, 2025. Bath faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.


title: Amtrak Employees Admit Participating in $11 Million Health Care Fraud Scheme

body_text: NEWARK, N.J. – Five Amtrak employees recently admitted participating in a health care fraud scheme to defraud Amtrak, U.S. Attorney Alina Habba announced. Kevin Frink, 53, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an Indictment charging him with conspiracy to commit health care fraud. Michael Toal, 35, of Hazlet, New Jersey, David McBrien, 37, of Levittown, Pennsylvania, Damany Walker, 41, of Irvington, New Jersey, and David Lonergan, 65, of Rockaway Park, New York, in recent weeks also pleaded guilty before Judge Arleo in Newark federal court to the Indictment charging conspiracy to commit health care fraud. The Indictment also charges four other co-conspirators in connection with the scheme: Quinton Johnson, 53, of Irvington, New Jersey; Gregory Richardson, 35, of Roosevelt, New York; Timothy Bogen, 59, of Hamden, Connecticut; and Dion Jacob, 50, of Brooklyn, New York. Defendant Rodolfo Rivera, 41, of Clayton, Delaware, previously pleaded guilty to the Indictment, and co-conspirator Anthony Saloka, 44, of Elizabeth, New Jersey, previously pleaded guilty to an Information. “The defendants admitted to colluding with corrupt health care providers in a scheme to defraud Amtrak’s health care plan for personal financial gain. My office is committed to holding accountable those who profit from health care scams, like this one, that harm the public and the health care system.” - U.S. Attorney Alina Habba According to documents filed in this case and statements made in court: From January 2019 through June 2022, Frink, Toal, McBrien, Walker, Lonergan, and their co-conspirators—who were also Amtrak employees—engaged in a scheme to obtain cash kickbacks from health care providers in return for their agreement to allow their health insurance plan to be billed for services that were never provided and were not medically necessary. In total, as a result of the conspiracy, the Amtrak health care plan paid over $11 million in fraudulent claims associated with providers connected to the scheme. Each defendant received thousands of dollars in cash kickbacks from health care providers in return for their participation in the scheme, including from Punson Figueroa, an acupuncturist. Defendants Frink, McBrien, Walker, and Lonergan also received cash kickbacks from Michael DeNicola, a podiatrist. Figueroa previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on September 24, 2024 to 34 months in prison. DeNicola previously pleaded guilty on June 29, 2022 to conspiracy to commit health care fraud, among other offenses. His sentencing remains pending. The health care fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Walker’s and McBrien’s sentencings are scheduled for July 24, 2025. Lonergan’s sentencing is scheduled for August 20, 2025. Toal’s sentencing is scheduled for October 23, 2025. Frink’s sentencing is scheduled for October 9, 2025. U.S. Attorney Habba credited special agents of the Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, the Amtrak Police Department, under the direction of Chief of Police Sam Dotson, and special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Frank A. Tarentino III in New York, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorneys Jessica R. Ecker and Katherine M. Romano of the Health Care Fraud and Opioid Abuse Prevention Unit, and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit, in Newark. The charge and allegations contained in the Indictment against Johnson, Richardson, Bogen, and Jacob are merely accusations, and they are each presumed innocent unless and until proven guilty. ### Defense counsel: Sarah Sulkowski, Esq. (for Kevin Frink) Michael Chazen, Esq. (for Michael Toal) Michael V. Calabro, Esq. (for David McBrien) Michael Rosas, Esq. (for Damany Walker) Bruce S. Rosen, Esq. and Sarah Fehm Stewart, Esq. (for David Lonergan)


title: 14 Arrested on Complaints Alleging More Than $25 Million in COVID-19 Relief and Small Business Loans Were Fraudulently Obtained

body_text: LOS ANGELES – Fourteen defendants – including San Fernando Valley and Glendale residents – were arrested on two federal criminal complaints alleging they fraudulently obtained more than $25 million in taxpayer-funded COVID-19 relief funds and federally-guaranteed small business loans. The 18 total defendants named in the complaints – four defendants are believed to be in Armenia – are charged with conspiracy to defraud the government with respect to claims; false, fictitious, or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; money laundering conspiracy; laundering of monetary instruments; engaging in monetary transactions in property derived from specified unlawful activity; and/or structuring financial transactions to evade reporting requirements. The defendants arrested today include: Vahe Margaryan, a.k.a. “William McGrayan,” 42, of Tujunga, who allegedly orchestrated a scheme to defraud numerous banks and the Small Business Administration’s (SBA) Preferred Lender Program, a program designed to help small businesses that otherwise might not obtain financing. McGrayan allegedly directed owners of sham corporations to open bank accounts, make false statements, and concoct documents, including phony resumes and financial statements, to support loan applications to buy other sham corporations. McGrayan allegedly paid for phony tax returns that falsely reported millions in revenue and tens of thousands in tax due and owing. McGrayan, whose alleged criminal activity lasted from 2018 until January 2025, then directed the laundering of millions in fraud proceeds through various bank accounts. Sarkis Gareginovich Sarkisyan, 37, a.k.a. “Samuel Shaw,” of Glendale, who allegedly, among other offenses, submitted a false application and bogus documents to obtain a loan under the Paycheck Protection Program (PPP), which provided low-interest, forgivable loans to help small businesses retain their workforce and cover expenses. Sarkisyan allegedly applied in April 2021 on behalf of a fake business that received more than $700,000 in PPP funds. Mery Babayan, 32, a.k.a. “Mery Diamondz,” of Van Nuys, together with co-defendants Margaryan and Hovannes Hovannisyan, 48, a.k.a. “John Harvard,” of Panorama City, in May 2021 allegedly defrauded a bank by representing the nonexistent sale of a sham business to another sham company to obtain an approximately $3 million federally guaranteed loan through the SBA’s Preferred Lending Program. Felix Parker, 77, of North Hollywood, who in January 2023 allegedly made false statements and submitted fraudulent documents, including fake tax returns that falsely reported that his shell company, Canmar Promo, earned millions of dollars annually and owed tens of thousands in federal income taxes. Parker allegedly obtained more than $2 million in government-guaranteed funds earmarked to help small businesses. Axsel Markaryan, 47, a.k.a. “Axel Mark,” of Pacoima, who in June 2023 allegedly fraudulently obtained more than $5 million in SBA loans via the submission of false statements and the submission of fake documents, including bogus tax returns. After the loans were obtained, Markaryan and his co-schemers in November 2023 laundered the money, including sending at least $100,000 to a co-schemer in Armenia. As a result of today’s takedown, law enforcement seized approximately $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition. “Today’s enforcement action is intended to send a message to all criminals who take advantage of government programs designed to help those who need them most,” said United States Attorney Bill Essayli. “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit. Together with our law enforcement partners, my office will aggressively prosecute individuals who cheat the system meant to protect and support law-abiding citizens.” “Scheming to fraudulently obtain federal funds that were meant to provide assistance to the nation’s small businesses is unacceptable,” said the U.S. Small Business Administration Office of Inspector General (SBA-OIG) Western Region Acting Special Agent in Charge Jonathan Huang. “OIG will continue to ardently investigate fraudulently obtained SBA program funds, including COVID-19 pandemic-related loans, to protect taxpayers from fraud, waste, and abuse. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.” “This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Through the diligent work of the El Camino Real Financial Crimes Task Force and our federal partners, HSI is continuing to identify these criminal groups looking to profit from the pandemic and will use all available resources to criminally prosecute or remove them from the country.” “Today, 14 individuals were arrested in connection with a fraudulent loan scheme in which they allegedly obtained in excess of $25 million through the SBA Paycheck Protection Program, Economic Injury Disaster Loan programs, and other federal funding programs,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher, Los Angeles Field Office. “These programs were established to assist individuals and businesses in need of financial assistance and instead were pilfered by the named defendants. IRS-CI is dedicated to identifying and dismantling criminal organizations that prey on assistance programs set up for the benefit of our law-abiding citizens.” A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, each defendant would face a statutory maximum sentence of decades in federal prison. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolster efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of the three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . SBA-OIG, IRS Criminal Investigation, and HSI are investigating these matters. The cases announced today were investigated by the U.S. Department of Homeland Security’s Office of Inspector General and Homeland Security Investigations’ (HSI) El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California. Assistant United States Attorneys Mark Aveis and Gregg Marmaro of the Major Frauds Section and Maxwell Coll of the Cyber and Intellectual Property Crimes Section are prosecuting these cases.


title: U.S. Attorney’s Office in Chicago Obtains Forfeiture of $214 Million in Proceeds From Alleged “Pump and Dump” Investment Fraud Scheme

body_text: CHICAGO — The U.S. Attorney’s Office has successfully obtained forfeiture to the government of approximately $214 million in proceeds from an alleged “pump-and-dump” investment fraud scheme that previously resulted in charges against seven individuals. From November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that purported to provide educational services in China, according to an indictment returned in March in U.S. District Court in Chicago. The scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company. The misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits, the indictment states. The stock price ultimately decreased significantly, at the expense of other investors, some of whom lost almost the entirety of their investment. During the investigation, federal law enforcement seized approximately $214 million in alleged proceeds from the fraud scheme. The funds are currently in U.S. custody. On Tuesday, U.S. District Judge Jorge L. Alonso granted a motion by the U.S. Attorney’s Office in Chicago to have the money permanently forfeited to the United States. The order allows for the government to return the money to victim investors. The forfeiture order was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Boston Regional Office of the U.S. Securities and Exchange Commission and the SEC’s Office of Inspector General. Assistant U.S. Attorney Jared Hasten represents the government. “As alleged in the indictment and forfeiture complaint , the defendants defrauded U.S. investors through deceitful and coordinated trading activities," said U.S. Attorney Boutros. “Our attorneys and staff in this case placed a high priority on recovering funds for victims. The large forfeiture order of more than $200 million should serve as a warning that federal law enforcement will aggressively pursue fraudulent profits from those who seek to prey upon investors by manipulating the U.S. stock market.” “Despite the overwhelming manipulation as alleged in this case, this serves as one of the premier FBI investigations in which the federal government was able to successfully recover victims’ hard-earned money before it disappeared into overseas bank accounts,” said FBI SAC DePodesta. “This elaborate fraud scheme boasting bogus profit potentials has caused extensive harm to unsuspecting Americans. The FBI will continue to work with our partner networks to ensure that justice is served against anyone who seeks to weaponize financial systems to gain personal profit.” Seven individuals were charged in the criminal indictment with wire fraud and securities fraud: LIM XIANG JIE CEDRIC, of Malaysia, MING-SHEN CHENG, of Taiwan, KO SEN CHAI, of Malaysia, KING SUNG WONG, of Malaysia, SIONG WEE VUN, of Malaysia, CHIEN LUNG MA, of Taiwan, and KOK WAH WONG, of Malaysia. The defendants are not in custody and warrants have been issued for their arrests. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If you believe you or someone you know may have been victimized by the fraud scheme charged in the indictment, you are encouraged to notify the FBI by completing this online form or calling 1-800-CALL-FBI (1-800-225-5324).


title: Convicted Felon Who Fired Gun Outside Crowded S.F. Bar Sentenced To Three Years And Nine Months For Unlawful Possession Of Ammunition

component: USAO - California, Northern

body_text: SAN FRANCISCO – Fernando Aguilera was sentenced yesterday to 45 months in federal prison for being a felon in possession of ammunition. Senior U.S. District Judge William Alsup handed down the sentence. Aguilera, 37, a national of Honduras, was indicted by a federal grand jury on July 18, 2023. On Feb. 12, 2025, Judge Alsup found Aguilera guilty of being a felon in possession of ammunition in violation of 18 U.S.C. § 922(g)(1) after a bench trial. According to court documents and evidence presented at trial, Aguilera took a gun out of his waistband on two occasions at a crowded bar in San Francisco. He then left the bar and fired into the air two separate times with people and cars nearby. When law enforcement arrived, Aguilera fled from the police before being apprehended in the garden area of a nearby residence. Law enforcement found a firearm with the wrong caliber bullet stuck in the chamber next to Aguilera and ammunition in his bag. At the time of his arrest, Aguilera had four prior felony convictions for being an accessory, being a prohibited person with ammunition, and second-degree burglary. United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement. In addition to the prison term, Judge Alsup also sentenced the defendant to a three-year period of supervised release. The defendant has been in custody since the offense. Assistant U.S. Attorneys Kelsey Davidson and Sophia Cooper prosecuted the case with the assistance of Kevin Costello and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI and San Francisco Police Department.


title: Orlando U.S. Postal Employee Sentenced In "Fenta-Pill" Conspiracy

component: USAO - Florida, Middle

body_text: Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Orlando Rosa Rodriguez (59, Orlando) to 5 years and 10 months in federal prison for conspiracy to distribute fentanyl and money laundering. The court also ordered Rosa Rodriguez to forfeit two vehicles, both of which were traceable proceeds of the offense. Rosa Rodriguez pleaded guilty on February 24, 2025. According to court documents, co-defendants Jayson Perez-Quinones (48, Orlando) and Jovan Rivera Rodriguez (36, Kissimmee) arranged to receive shipments of thousands of pills that were pressed to look like pharmaceuticals but contained fentanyl – (so-called “fenta-pills”). At their home in Orlando, Perez-Quinones and co-defendant Karen AltaGracia Perez (44, Orlando) packaged those pills into individual pill bags (pictured below) for street delivery. Perez-Quinones and Perez then distributed those bags to mid-level distributors such as Rosa Rodriguez for resale. Rosa Rodriguez distributed those pills to customers, including in the parking of his workplace at the U.S. Postal Service. Rosa Rodriguez earned more than $300,000 in one 20-month period on top of his salary from the U.S. Postal Service and VA disability benefits. He used those proceeds to purchase sports cars, including a Corvette worth approximately $80,000, a Porsche 911 Carrera Coup worth approximately $92,000, and a Porsche 718 Cayman Coup worth approximately $120,000. On June 13, 2023, AltaGracia Perez was sentenced to five years and six months in federal prison for her role in the conspiracy. On August 8, 2023, Perez-Quinones and Rivera Rodriguez were sentenced to 15 years’ and 5 years’ imprisonment, respectively, for their roles in the conspiracy. This case was investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation, with assistance from the Orlando Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill. This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.


title: Kanawha County Man Sentenced to Prison for Federal Fraud Crimes

body_text: CHARLESTON, W.Va. – Donald A. Ennis, 43, of St. Albans, was sentenced today to two years and nine months in prison, to be followed by three years of supervised release, and ordered to pay $513,072.28 in restitution for two counts of wire fraud. Ennis admitted that he filed false insurance claims to obtain $347,237.70 after setting fire to his residence and defrauded a volunteer fire department of $153,728 while serving as its finance and operations manager. According to court documents and statements made in court, in October 2018 Ennis purchased a residence on Ridgeview Way in St. Albans with assistance from a mortgage company that required him to insure the residence for loss. Ennis obtained a residential insurance policy with a maximum value of $161,100 for the dwelling and $120,825 for its contents. Ennis paid an annual premium of approximately $979.35 for the policy, which had effective dates from November 8, 2020, through November 8, 2021. The policy covered losses for multiple contingencies including fire, and explicitly excluded intentional acts of loss or damage by Ennis. Ennis admitted that he intentionally set fire to his residence on February 15, 2021. The fire department responded but could not extinguish the fire, which consumed the residence and left it and its contents a total loss. Ennis falsely reported the fire to his Indiana-based insurance company as an accident later that day and began the process of filing a claim. Ennis admitted that he placed a series of claims electronically from February 21, 2021, to March 19, 2021, fraudulently claiming losses from the fire. Ennis further admitted that he obtained $347,237.70 from the insurance company as a result of this wire fraud scheme. The fraudulent insurance funds were deposited in Ennis’ bank account. From at least 2009 through 2022, Ennis worked for a volunteer fire department serving the Tornado area of Kanawha County. As its finance and operations manager, Ennis had access to the fire department’s North Carolina-based bank debit card and regularly acted as its accountant. Ennis admitted that from some time prior to March 19, 2020 through about September 18, 2022, he fraudulently obtained $153,728 of the fire department’s funds through a series of ATM withdrawals and dozens of unauthorized online purchases with its debit card for his personal benefit. “This prosecution sends an important and firm message that those who commit arson for financial gain will be prosecuted and brought to justice,” said Acting United States Attorney Lisa G. Johnston. “The fire put others at risk – first responders as well as neighbors. The defendant also deprived the volunteer fire department of vital funds.” Johnston made the announcement and commended the investigative work of the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU), the West Virginia Offices of the Insurance Commissioner-Special Investigations Division, and the Federal Bureau of Investigation (FBI). United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Erik S. Goes 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. 2:24-cr-129. ###


title: Methamphetamine Dealer Sentenced To More Than Seven Years In Federal Prison

body_text: Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Robert Donoso (33, Orlando) to seven years and three months in federal prison for conspiracy to distribute methamphetamine. Donoso pleaded guilty on February 26, 2025. According to court documents, Donoso engaged in importing and distributing methamphetamine for a year leading up to his arrest in April 2024. In April 2023, Donoso received a vehicle shipped from California that contained approximately 15 kilograms of methamphetamine and 10 pounds of marijuana that was concealed inside a hidden “trap.” On April 8, 2024, Donoso received a delivery of 11 kilograms of methamphetamine from Pherai Bogeajis and was detained by law enforcement. The next day, Bogeajis’s home was searched and agents located another 50 kilograms of methamphetamine and more than $700,000. Bogeajis (35, Orlando) previously pleaded guilty for his role in the case and was sentenced in November 2024 to 19 years and 7 months in federal prison. This case was investigated by the Drug Enforcement Administration, with assistance from the Orange County Sheriff’s Office, the Orlando Police Department, and the Oviedo Police Department. It was prosecuted by Assistant United States Attorney Dana E. Hill.


title: Restaurant management company settles False Claims Act allegations  involving Paycheck Protection loan

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – Both Management Services, Inc., located in Virginia Beach, has agreed to pay $750,000 to settle False Claims Act allegations that it certified that it was eligible to receive first and second draw loans under the Paycheck Protection Program (PPP) for which it was not eligible. The PPP offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. Only businesses with fewer than 500 employees (or fewer than an industry-based size standard, if applicable) were eligible for PPP loans. Under the Small Business Administration’s “affiliation rules,” businesses under common ownership or control were required to add their employee counts together when determining their size for purposes of eligibility. The PPP allowed certain eligible borrowers that previously received a PPP loan to apply for a second draw PPP loan with the same general loan terms as their first draw PPP loan. The settlement began with a lawsuit involving Both Management Services, Inc.’s second draw PPP loan, United States ex rel. Verity Investigation, LLC v. Both Management Services, Inc. , , which was filed under the whistleblower provision of the False Claims Act. The settlement resolves allegations that Both Management Services, Inc. obtained two PPP loans by falsely representing the total number of its employees and/or its affiliates’ employees. The United States alleged that Both Management Services, Inc. falsely certified it was eligible, on the date of both applications, to receive PPP loans and forgiveness. This resolution was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Small Business Administration. The matter was handled by Assistant U.S. Attorney John E. Beerbower. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia . Case records may be found on PACER under case number 2:24-cv-474. The civil claims settled are allegations only; there has been no determination of civil liability.


title: Recidivist investment fraudster sentenced to six years in prison for oil-and-gas scam

body_text: ALEXANDRIA, Va. – A South Carolina man was sentenced today to six years in prison for wire fraud in connection with an oil drilling investment scheme. According to court documents, in 2016, Charles Eli Colburn III, 70, of Pawley’s Island, held himself out as the Chairman and Chief Executive Officer of Geo Reserve Corporation, also known as Geo Reserve Group (GEO RESERVE). GEO RESERVE ostensibly was in the business of securing leases on land that had been deemed unproductive for oil production and using its employees’ and affiliates’ expertise in the oil and gas industry to drill and produce oil profitably. At times, Colburn or his associates represented that GEO RESERVE had secured, or was imminently going to secure, millions of dollars in financing from individuals in the professional sports world; that GEO RESERVE had a current partnership with Ralph E. Davis Associates, a long-standing oil and gas engineering and consulting firm; and that GEO RESERVE had already acquired leases to hundreds of thousands, or even millions, of acres of land in Montana, New Mexico, Texas, and Wyoming. They also represented that GEO RESERVE was an active, ongoing concern with revenue from oil production and substantial assets in the form of land and/or mineral rights holdings, and that GEO RESERVE was imminently planning to begin public trading of its stock, which was expected to appreciate quickly. Investors’ money, they claimed, would be used to purchase additional leases and cover expenses and supplies associated with developed land for oil drilling. Instead, Colburn used investor money for personal expenses, such as lavish rental properties, a Hummer SUV, a golf cart, and home furnishings. For example, in 2020, Colburn was introduced to an individual identified as S.G. Colburn and an associate told S.G. that Geo Reserve owned two wells in Montana, that Geo Reserve needed money to purchase equipment to reconstruct the wells to make them productive, that work was already being done on the wells, and that Geo Reserve would use money made from those wells to expand and purchase additional land and wells. Based on those statements and promotional materials supplied by Colburn and his associate, S.G. invested $250,000 in a wire transfer from S.G.’s account to an account held in the name of GEO RESERVE, that Colburn controlled and that previously held a $0 balance. The following day, Colburn deposited a $50,000 check, drawn on S.G.’s investment, into Colburn’s personal checking account. Colburn used the money for personal expenses. In the weeks that followed, Colburn used more than $ 100,000 of S.G.’s investment toward the purchase of a family home. Altogether, Colburn swindled more than 45 investors out of more than $1.6 million. The Court ordered Colburn to pay full restitution and to forfeit nearly $1.56 million. During tax years 2017-2021, Colburn never filed any personal or business income tax returns. He failed to report and pay over any taxes due and owing on GEO RESERVE investment funds he and family members used for personal expenses. Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Emily Odom, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Katherine E. Rumbaugh and Russell L. Carlberg prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-121.