title: Crypto-Enabled Fraudster Sentenced For Orchestrating $40 Billion Fraud

body_text: United States Attorney for the Southern District of New York, Jay Clayton, announced today that DO HYEONG KWON was sentenced to 15 years in prison for committing wire fraud and conspiring to commit securities fraud, commodities fraud, and wire fraud in connection with KWON’s fraud centered around Terraform Labs PTE, Ltd. (“Terraform”), and the cryptocurrencies launched by Terraform. KWON was extradited on December 31, 2024, and pled guilty in August 2025 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence. “Do Kwon devised elaborate schemes to mislead investors and inflate the value of Terraform’s cryptocurrencies for his own benefit,” said U.S. Attorney Jay Clayton. “When his crimes caught up to him, Kwon embarked on a deceptive public relations campaign to cover up his fraud, laundered the proceeds of his illegal schemes, and sought to purchase political protection in foreign countries to evade criminal prosecution. Let there be no mistake, fraud is fraud whether it takes place on our streets, in our securities markets, or in our emerging and important digital asset ecosystem, and no matter where in the world criminals may seek refuge, the women and men of the Southern District of New York will relentlessly pursue justice for investors and protect the integrity of financial markets.” According to the allegations in the Superseding Indictment and statements made in public court filings and proceedings: From at least in or about 2018, up to and including in or about 2022, KWON orchestrated schemes to defraud purchasers of cryptocurrencies created and issued by Terraform. Terraform was a blockchain and cryptocurrency company co-founded by KWON in 2018. Terraform distinguished the Terra blockchain from other competing blockchains by issuing so-called algorithmic stablecoins pursuant to what it called the “Terra Protocol.” According to KWON and others, Terraform stablecoins maintained a steady value even under changing market conditions. In or around September 2020, Terraform publicly announced the launch of Terraform’s stablecoin pegged to the U.S. dollar, TerraUSD (“UST”). Terraform promotional materials claimed that, under the Terra Protocol, one UST could always be exchanged for $1 worth of LUNA, the Terra blockchain’s native token. Conversely, $1 worth of LUNA could always be exchanged for one UST. KWON claimed that Terraform had used blockchain technology to create a self-contained, decentralized financial world with its own money, payment system, stock market, and savings bank. KWON presented Terraform as having developed functioning, reliable financial technologies on the cutting edge of a movement towards “decentralized finance” (or “DeFi”), in that Terraform’s products purportedly operated largely through automated mechanisms and economic incentives, and that Terraform’s systems were governed by their users rather than by KWON and his associates and subordinates. In fact, core Terraform products did not work as KWON advertised and were manipulated to create the illusion of a functioning and decentralized financial system in order to lure investors. KWON engaged in this deceptive conduct in order to pump up the value of Terraform’s cryptocurrencies, which KWON and entities he controlled (a) possessed in large amounts and (b) sold to investors in exchange for billions of dollars’ worth of other assets. The misrepresentations that KWON made in furtherance of his schemes to defraud included the following: The Stablecoin Misrepresentations : KWON lied about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (“UST”), at a value of $1 for one UST. Beginning at least in or about 2020, KWON and his associates advertised the Terra Protocol, including the economic incentives it created in the market, as sufficient on its own to maintain parity between one UST and one U.S. dollar. In particular, KWON claimed that the Terra Protocol on its own had caused the successful restoration of UST’s $1 value after it dropped below 92 cents in or about May 2021. That was a lie. In truth, after the Terra Protocol on its own failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the “Trading Firm”) to have the Trading Firm purchase large amounts of UST to artificially support UST’s $1 peg. UST’s $1 peg was restored in May 2021 only after the Trading Firm strategically purchased millions of dollars of UST for the purpose of artificially propping up the peg. The LFG Misrepresentations : KWON lied about the governance of the Luna Foundation Guard Ltd. (the “LFG”), a purportedly independent body the creation of which KWON publicly announced in or about January 2022. KWON claimed that the LFG was managed by a governing body that operated independently of Terraform and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg. In truth, KWON simultaneously controlled both the LFG and Terraform at all relevant times following the creation of the LFG; operated the LFG as an arm of Terraform rather than as an independent entity; repeatedly made significant financial decisions for the LFG without the prior approval of its governing body; and treated the LFG’s funds as interchangeable with Terraform’s funds when it suited KWON’s interests, resulting in KWON misappropriating hundreds of millions of dollars in assets from the LFG. KWON and others acting at his direction then sought to launder those misappropriated funds using a variety of transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds. The Mirror Misrepresentations : KWON lied about the control, operation, and extent of user adoption of an investing application on the Terra blockchain called Mirror Protocol (“Mirror”), that purportedly allowed for the creation, buying, and selling of synthetic versions of stocks listed on United States securities exchanges. KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance. In truth, KWON and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets issued by Mirror. KWON funded those manipulative trading bots in part by using a supply of one billion stablecoins that he created at the genesis of the Terra blockchain (the “Genesis Stablecoins”). KWON also caused Terraform to inflate key user metrics to deceive investors about the extent of Mirror’s adoption and decentralization. The Chai Misrepresentations : KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai. KWON pointed to Chai’s purported use of the Terra blockchain as evidence that Terra had “real world” applications or uses, as distinct from competing cryptocurrency platforms. In truth, Chai processed transactions through traditional financial processing networks, not the Terra blockchain. To create the illusion that Chai processed transactions through the Terra blockchain, KWON and his co-conspirators used an automated process that copied transactions onto the Terra blockchain. KWON used the Genesis Stablecoins in part to fund these fraudulent efforts. The Genesis Coin Misrepresentations : When the Terra blockchain was first established in or about 2019, KWON arranged for it to have a preexisting supply of approximately one billion Terra stablecoins (the Genesis Stablecoins). KWON provided limited, shifting, and knowingly false disclosures to investors about the Genesis Stablecoins. Rather than using the Genesis Stablecoins solely for the purposes set forth in disclosures to investors, KWON used the Genesis Stablecoins for fraudulent purposes, such as funding (i) fake Chai blockchain transactions and (ii) trading bots to manipulate the prices of synthetic assets issued by Mirror. Enticed, in part, by the fraudulent claims of KWON, both institutional and retail investors flocked to the Terra blockchain, such that, at its peak in the spring of 2022, the total market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion. KWON solicited and obtained investments from several investment firms in the United States and other locations, with the investments primarily consisting of agreements for the purchase or loan of Terraform’s cryptocurrencies built on the Terra blockchain. Much of this growth followed KWON’s brazen deceptions about Terraform and its technology, including efforts by KWON and his associates to paper over UST’s vulnerabilities in May 2021 by secretly manipulating the market for UST. By May 2022, UST’s peg began to break again. By this time, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to one year prior, in May 2021, when KWON sought to deceptively manipulate UST to maintain its $1 value. While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022 when the market had expanded substantially. As a result, UST and LUNA crashed, resulting in over $40 billion worth in investor losses. After the crash of UST and LUNA in May 2022, and the initiation of government investigations in multiple jurisdictions into the crash, KWON sought to continue Terraform’s business operations and made public remarks about being in “full cooperation” with law enforcement inquiries. In truth, KWON sought to evade accountability. In a recorded conversation with an associate in or about August 2022, for example, KWON stated, in substance and in part, that his strategy with law enforcement investigating the crash of UST and LUNA was to “tell them to fuck off,” and that he had been taking steps to obtain “political protection” from multiple countries and was “pretty comfortable” that he would not be extradited to face criminal charges. On or about March 23, 2023, KWON was arrested in Montenegro for trying to use a fraudulent passport. * * * In addition to the prison term, KWON, 34, of the Republic of Korea, was ordered to forfeit over $19 million in proceeds from his illegal schemes, including his interest in Terraform and its cryptocurrencies. Mr. Clayton praised the investigative work of the Federal Bureau of Investigation (“FBI”), FBI’s Virtual Assets Unit, FBI’s Economic Crimes Unit, FBI’s International Operations Division, and the Department of Justice’s Office of International Affairs for their assistance. Mr. Clayton further thanked the U.S. Securities and Exchange Commission, which previously conducted a separate civil action against KWON. Mr. Clayton commended the Ministry of Justice of the Republic of Montenegro and the Ministry of Justice of the Republic of Korea for their cooperation and assistance in this matter. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite B. Colson, Sarah Mortazavi, and Kimberly Ravener are in charge of the prosecution.


title: Kauai Woman Sentenced to Over 12 Years’ Imprisonment for Drug Trafficking

component: USAO - Hawaii

body_text: HONOLULU – United States Attorney Ken Sorenson announced that Faith Michelle Nelson, 52, of Kauai, was sentenced yesterday in federal court by Senior United States District Judge Leslie E. Kobayashi to 151 months’ imprisonment followed by 5 years’ supervised release after pleading guilty to possessing with intent to distribute methamphetamine. Nelson has been detained since her initial arrest in this case on April 10, 2024. According to court records, Nelson was part of a conspiracy that was acquiring controlled substances through the U.S. mail and was engaged in the distribution of methamphetamine on Kauai. In total, Nelson was held responsible for over 18 pounds of methamphetamine. Nelson is one of eleven defendants charged in three separate indictments for crimes related to the operation of a trans-Pacific drug trafficking network, nine of whom have pled guilty with the remaining awaiting trial. Nelson is the first defendant in a nine-defendant indictment to be sentenced. The overall investigation yielded seizures of more than 150 pounds of methamphetamine, several kilograms of fentanyl and carfentanil, eight firearms, ammunition, and over $150,000 in cash. On April 30, 2025, in one of the related cases charged by separate indictment, Shawn Pauahi Santana was sentenced to 240 months’ imprisonment and 5 years’ supervised release after pleading guilty to conspiring to distribute and possess with intent to distribute methamphetamine and to distributing methamphetamine. “Yesterday’s sentence represents a significant step in bringing to justice the trans-Pacific criminal enterprise that Nelson and her coconspirators used to flood communities in Hawaii, Alaska, and beyond with deadly drugs,” said U.S. Attorney Ken Sorenson. “We credit our tremendous law enforcement partners with helping to expose and dismantle this dangerous drug operation.” “This sentencing and related investigation mark a crucial moment in the ongoing fight to protect our citizens from the deadly drugs that plague our island communities,” said FBI Honolulu Special Agent in Charge David Porter. “We are grateful for the tremendous partnerships across all levels of law enforcement in this joint effort, and we will continue to use every available resource to protect our communities and bring these trans-Pacific criminal enterprises to justice.” “This individual has an extensive history of harming our community and putting countless families at risk,” said Chief Kalani Ke, Kaua‘i Police Department. “Today’s sentence holds her accountable for her actions and demonstrates that such destructive behavior will not be tolerated. We commend our federal partners for helping end this operation, and we remain committed to keeping Kaua‘i safe from those who bring dangerous drugs into our communities.” This case was investigated by the Federal Bureau of Investigation, with assistance from the Kauai, Maui, and Honolulu Police Departments, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Margaret C. Nammar is prosecuting the case.


title: California Man Sentenced to 6 Years for Drug Trafficking

body_text: HONOLULU – United States Attorney Ken Sorenson announced that Lynden David Lightburn, 52, of Los Angeles, California was sentenced today by United States District Judge Jill A. Otake to 72 months in federal prison for conspiring to distribute fentanyl, heroin, and methamphetamine, followed by 5 years of supervised release. According to court records, from September 2020 to June 30, 2021, Lightburn, a/k/a “Soulja,” supplied more than 6.6 kilograms of fentanyl, 6.4 kilograms of heroin, and 2.8 kilograms of methamphetamine to a Honolulu drug trafficking organization (DTO) co-led by Gabriel Antone Eberhardt, 43, of Detroit, Michigan, and Jason Darnell Smith, 42, of Detroit, Michigan. The DTO obtained drugs from Lightburn in Los Angeles, as well as Robert Adams, 38, of Philadelphia, Pennsylvania. Lightburn and Adams mailed the drugs to Honolulu. The DTO distributed fentanyl—a potent synthetic opioid 50 times stronger than heroin—in mixtures with heroin and in counterfeit oxycodone tablets. During an investigation by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), and the Honolulu Police Department (HPD), agents made dozens of controlled purchases of fentanyl, heroin, and methamphetamine from the conspirators, and executed 15 search warrants on residences, rental storage units, and parcels. As a result of the controlled purchases and warrants, law enforcement agents seized more than 15 kilograms of fentanyl, heroin, and methamphetamine, seven firearms, including assault rifles and semi-automatic pistols, hundreds of rounds of ammunition, a vehicle, and more than $250,000 in cash drug proceeds. “Today’s sentence brings to a close years of collaboration between the U.S. Attorney’s Office and our partners across multiple federal and local law enforcement agencies, as we worked tirelessly to bring down this large-scale, prolific, and dangerous drug trafficking operation,” said U.S. Attorney Ken Sorenson. “The aggressive pursuit and dismantling of drug enterprises that pump illicit drugs into Hawaii remains one of our top priorities. We will continue to devote our time, effort, and resources to protecting our community from those who seek to poison it with illegal narcotics, along with the violence and criminal use of firearms that drug trafficking spawns.” “This sentencing, and the overall resolution of the related investigation, represents years of collaboration between multiple law enforcement agencies to dismantle one of Hawaii’s most dangerous drug trafficking organizations,” said FBI Honolulu Special Agent in Charge David Porter. “The FBI—in coordination with our partners—will continue to use every available resource to protect our communities by taking these violent offenders off the board and bringing them to justice.” “Today’s sentencing closes the loop on a network of incessant drug traffickers, whose crimes threatened the safety and wellbeing of the island community,” said Anthony Chrysanthis, Deputy Special Agent in Charge for the DEA Los Angeles Field Division, which oversees Honolulu. “This case reflects DEA’s continued commitment to holding drug traffickers accountable and stemming the flow of fentanyl, methamphetamine, and other dangerous drugs.” “This case shows the power of collaboration,” said ATF Seattle Field Division Acting Special Agent in Charge Eric Jackson. “When federal, state, and local law enforcement work together, our resources are unlimited and our efforts unmatched. It is through these partnerships that we continue to hold accountable those who seek to profit from dealing illegal and dangerous drugs in our communities.” “The trafficking of dangerous drugs like fentanyl and methamphetamine through the U.S. Mail puts Postal Service employees and our communities at risk. Postal Inspectors will aggressively pursue anyone who uses the mail to transport and distribute deadly drugs,” said Stephen Sherwood, Postal Inspector in Charge of the United States Postal Inspection Service’s San Francisco Division. “We thank our federal and local partners for working with us to combat these crimes and make our communities safer.” In addition to Lightburn, who is the last of his coconspirators to be sentenced, the following defendants were prosecuted in this and related cases in the District of Hawaii: Eberhardt, a/k/a “Stacks,” pled guilty to conspiracy and possession of a firearm in connection with a drug trafficking crime, and was sentenced on October 21, 2024, to 30 years in federal prison and five years of supervised release; Smith, a/k/a “Famous,” a/k/a “Sweets,” pled guilty to conspiracy, and was sentenced on February 4, 2024, to 14 years in federal prison and five years of supervised release; Martzes Junior, a/k/a “Green,” 44, of Southfield, Michigan, pled guilty to conspiracy and possession of a firearm in connection with a drug trafficking crime, and was sentenced on December 10, 2024, to 12 years in federal prison and five years of supervised release; Adams, a/k/a “Tre,” a/k/a “Tre Block,” a/k/a “Block,” a/k/a “T-Block,” a/k/a “Ray Smith,” pled guilty to conspiracy, and was sentenced on July 11, 2025, to 10 years in federal prison and five years of supervised release; Jared Northern, a/k/a “White Boy Jay,” a/k/a “Gage,” 26, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on May 15, 2024, was sentenced to 10 years in federal prison and five years of supervised release; Jennifer Ashcraft, a/k/a “Jessie,” a/k/a “Jess,” 34, of Honolulu, pled guilty to conspiracy, and was sentenced on January 28, 2025, to 37 months in federal prison and five years of supervised release; Zakiyyah Mareus, a/k/a “Kai,” 28, of Miami Gardens, Florida, pled guilty to conspiracy, and on August 8, 2024, was sentenced to 37 months in federal prison and three years of supervised release; Isaiah Marks, a/k/a “Seh,” 26, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on January 18, 2023, was sentenced to 24 months in federal prison and four years of supervised release; Tishanah Iwalani Kaio-Barrozo, 34, of Honolulu, pled guilty to distribution of controlled substances, and on June 7, 2022, was sentenced to 9 months in federal prison and three years of supervised release; Michael Garrett, a/k/a “Sideburns,” a/k/a “Burns,” 42, of Romulus, Michigan, pled guilty to conspiracy, and on March 28, 2024, was sentenced to 3 months in federal prison and five years of supervised release; This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN). The case was investigated by the FBI, DEA, ATF, USPIS, and HPD. Assistant U.S. Attorney Craig S. Nolan is prosecuting the case.


title: St. Michael, North Dakota, Man Indicted for Murder and Manslaughter

component: USAO - North Dakota

body_text: FARGO – United States Attorney Nicholas W. Chase announced the United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury returned a true bill of indictment charging D’Angelo James Hunt, age 26, of St. Michael, North Dakota, with ten federal felonies including murder and manslaughter. On November 17, 2025, Hunt was charged by criminal complaint with Second Degree Murder of I.H. He waived a detention hearing following his initial appearance and remains in custody. The Grand Jury then returned a true bill of indictment charging Hunt with nine additional counts. Hunt’s charges are as follows: Three Counts of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner; Two Counts of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangulation; Assault Resulting in Serious Bodily Injury; Voluntary Manslaughter; Second Degree Murder within Indian country; Tampering with Evidence; and Use of Fire to Commit a Felony. The indictment includes six counts of assaults committed by Hunt against J.M.P. as well as one count of voluntary manslaughter against J.M.P. In addition to the second-degree murder of I.H., the indictment charges Hunt with tampering with evidence and use of a fire to commit felony as it relates to the murder. The Indictment in this case is not evidence of guilt. The Defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial. “Today’s unsealing of this Indictment marks an important step toward justice in a case that has weighed heavily on the victims’ families and the Spirit Lake community for more than two years, said United States Attorney Nicholas W. Chase. “No indictment can undo their loss, but it affirms our commitment to pursuing accountability with care, diligence, and resolve. Of course, an Indictment is not proof of guilt, and the Defendant is presumed innocent until proven guilty. Violent crime remains one of the highest priorities of this office, and we will continue to devote the resources necessary to hold violent offenders accountable. I want to commend our law-enforcement partners, who have worked tirelessly and followed every lead to move this case forward. The investigation in this case is ongoing, with the goal of bringing a family some measure of closure through the recovery of J.M.P.” “The charges alleged in this indictment are one more brutal example of violence against indigenous women. Too many women and men face fear and violence on tribal lands,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Through exhaustive investigation and strong collaboration with our tribal, state, and federal partners, the FBI is fully committed to holding violent criminals accountable and protecting safe communities. The indictment of Hunt is the first step in securing much-deserved justice for two victims, their families, and the community.” “President Trump and Secretary Burgum are committed to bringing forth all available resources to protect tribal communities and deliver justice on behalf of the victims and their families," said Billy Kirkland, Assistant Secretary for Indian Affairs at the Department of the Interior. "I appreciate the close collaboration with our law enforcement partners that led to this arrest and prosecution. Together, we may bring closure and peace to families impacted by violence and hold those responsible to account for their actions.” This case is being investigated by Federal Bureau of Investigation, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by the United States Attorney’s Office, with Assistant United States Attorneys Lori H. Conroy and Samantha L. Schmidt, and First Assistant United States Attorney Jennifer Klemetsrud Puhl assigned. # # #


title: Nine Indicted On Multiple Charges Arising From Armed Burglaries Of Marijuana Grow Facilities That Resulted In Death Of Oakland Police Officer

component: USAO - California, Northern

body_text: OAKLAND – A federal grand jury has indicted Allen Brown, Sebron Russell, Marquise Cooper, Janiero Booth (a/k/a Javon Herrington), Jowaun Jones, Shawn McGee, and Salvador Munguia on charges of conspiring to distribute, possessing with intent to distribute, and attempting to possess with intent to distribute more than 100 marijuana plants. Brown and Russell were additionally charged with discharging and brandishing a firearm, respectively, in connection with a drug trafficking crime. Two other defendants, Jasmine Kumar and Felicia Sanders, were charged with accessory after the fact. All nine defendants were arrested yesterday or were already in custody. Defendants made their initial appearances in federal district court in San Francisco today. According to the indictment filed on November 20, 2025, and unsealed today, the charges relate to three armed burglaries of a marijuana grow facility in Oakland, California, between late evening December 28, 2023, and early morning December 29, 2023. Oakland Police Department (OPD) officers responded to the third burglary, and the suspects fled in multiple vehicles. During the pursuit, an unnamed co-conspirator fired more than 20 shots at one of the OPD vehicles, killing Officer Tuan Le. Following Officer Le’s death, Jasmine Kumar, the shooter’s girlfriend, and Felicia Sanders, the shooter’s mother, knowing that the shooter had stolen marijuana and murdered Officer Le, allegedly assisted the shooter in order to hinder and prevent his apprehension by law enforcement, including by furnishing him with a one-way plane ticket. As alleged, Brown, Russell, Cooper, and the unnamed co-conspirator organized and perpetrated a series of three separate armed burglaries of the marijuana grow facility. They recruited additional individuals, including Booth, Jones, McGee, and Munguia, for the third attempted burglary, which occurred around 4:00 a.m. In total, the perpetrators are alleged to have stolen more than 100 marijuana plants. The indictment describes that when undercover OPD officers, including Officer Le, arrived at the scene, the suspects fled the location in multiple vehicles. As suspects exited the building, the unnamed co-conspirator brandished a firearm at OPD’s unmarked undercover vehicle. Two OPD undercover vehicles chased two vehicles fleeing from the burglary scene. One vehicle, driven by Brown, followed the OPD vehicle driven by Officer Le. The unnamed co-conspirator, who was the passenger in Brown’s vehicle, fired the shots that killed Officer Le. United States Attorney Craig H. Missakian and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Special Agent in Charge Robert Topper made the announcement. Some of the defendants are scheduled to appear on December 15, 2025, for bail proceedings before Magistrate Judge Thomas S. Hixson. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences as set forth in the following chart. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Defendant Charge(s) Maximum Penalties Allen Brown Counts One, Two, Three & Five : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(iii) – Discharging a Firearm in Connection with a Drug Trafficking Crime Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Count Five: maximum of life imprisonment, a mandatory consecutive minimum of 10 years’ imprisonment, and a $250,000 fine. Sebron Russell Counts One, Two, Three & Four : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(ii) – Brandishing a Firearm in Connection with a Drug Trafficking Crime Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Count Four: maximum of life imprisonment, a mandatory consecutive minimum of 7 years’ imprisonment, and a $250,000 fine. Marquise Cooper Counts One, Two & Three : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; and 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Janiero Booth (a/k/a Javon Herrington) Counts One & Three : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Jowaun Jones Counts One & Three : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Shawn McGee Counts One & Three : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Salvador Munguia Counts One & Three : 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine. Jasmine Kumar Count Six : 18 U.S.C. § 3 – Accessory After the Fact Maximum of 15 years’ imprisonment and $125,000 fine. Felicia Sanders Count Six : 18 U.S.C. § 3 – Accessory After the Fact Maximum of 15 years’ imprisonment and $125,000 fine. Assistant U.S. Attorneys Alethea Sargent and Kelly Volkar are prosecuting the case with the assistance of Laurie Worthen and Amala James. The prosecution is the result of an investigation by the ATF and OPD, with assistance from the Drug Enforcement Administration, U.S. Marshals, FBI, OPD, California Highway Patrol, Concord Police Department, and Pittsburg Police Department for yesterday’s arrests.


title: UNDOCUMENTED FELON SENTENCED FOR RE-ENTERING THE UNITED STATES ILLEGALLY

component: USAO - Virgin Islands

body_text: St. Thomas, VI – United States Attorney Adam F. Sleeper announced today that a Dominican Republic national, Tommy Walter Ramirez, 36, was sentenced to 20 months’ incarceration by Chief District Judge Robert Molloy. According to court documents, on May 24, 2025, Homeland Security Investigations, Enforcement and Removal agents and the United States Marshals apprehended Tommy Walter Ramirez. When apprehended, Ramirez did not have any identification on him. A biometric fingerprint check came back positive for Ramirez, who was assigned an alien registration number by Citizen and Immigration Services (CIS). Record checks revealed that on April 22, 2022, Ramirez was deported from the United States to the Dominican Republic and ordered not to return. A review of Ramirez’s immigration file did not show any legal entries into the United States, nor did Ramirez show any proof that he was given advance, written permission to re-enter the United States by the United States Attorney General or the Secretary of the Department of Homeland Security. Further, Ramirez’s criminal history showed that while residing illegally in the Virgin Islands, Ramirez sustained two felony convictions for conspiring to possess with intent to distribute cocaine. The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Natasha Baker.


title: FORMER VIPD COMMISSIONER AND FORMER OMB DIRECTOR FOUND GUILTY ON ALL COUNTS IN FEDERAL CORRUPTION TRIAL

body_text: St. Thomas, VI –United States Attorney Adam F. Sleeper announced today that Ray Martinez, former Commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, former Director of the Virgin Islands Office of Management and Budget (OMB), were found guilty on all counts following a one-week jury trial before United States District Judge Mark A. Kearney. Martinez and O’Neal were convicted of participating in a wide-ranging public corruption scheme involving honest services wire fraud, federal program bribery, conspiracy to commit money laundering, and, in Martinez’s case, obstruction of justice. “Public corruption erodes trust in government and interferes with the provision of important services to the community,” said United States Attorney Adam Sleeper. “These convictions show that those who violate the public trust, whoever they are, will be held accountable.” “Today’s verdict delivers a clear message: no one is above the law,” said Joe Rodriguez, Acting Special Agent in Charge of the FBI’s San Juan Field Office, which covers the US Virgin Islands. “The FBI remains steadfast in our commitment to rebuild public trust, which is the foundation of our democracy.” According to evidence presented at trial, Martinez accepted nearly $100,000 in bribe payments from contractor David Whitaker—including cash, luxury travel, personal expenses, private-school tuition, and restaurant equipment—and used his official authority to approve invoices and award Whitaker a $1.4 million dollar contract funded by federal American Rescue Plan Act dollars. O’Neal, who served as the territory’s chief budget official, knowingly approved a $70,000 inflated invoice under that same contract and later accepted a $17,730 lease payment for her business, Java Grande, using federal funds from the inflated invoice. The evidence further showed that, after learning of the federal investigation, Martinez attempted to obstruct justice by directing Whitaker to destroy evidence and by creating a fraudulent promissory note in an effort to conceal bribe payments. Martinez and O’Neal each face significant statutory penalties, including terms of imprisonment, and fines. Sentencing dates will be scheduled by the Court. The FBI San Juan Field Office, St. Thomas Resident Agency investigated the case, in collaboration with the Virgin Islands Office of Inspector General. Trial Attorney Alexandre Dempsey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cherrisse Amaro for the District of the Virgin Islands are prosecuting the case.


title: Salisbury Man Charged with Communicating Threats Against President Trump and Others

component: USAO - North Carolina, Middle

body_text: GREENSBORO, NC –United States Attorney Dan Bishop announced that the FBI today arrested Christian Wolfe DANIELS, of Salisbury, on charges of threatening the President and communicating threats using a means of interstate communication. The criminal complaint against DANIELS alleges two counts of making threats against the President on November 13 and 14, 2025, in violation of Title 18, United States Code, Section 871(a), and one count of transmitting threats in interstate commerce on November 17, 2025, in violation of Title 18, United States Code, Section 875(c). If convicted of all counts, DANIELS faces a maximum term of 15 years of imprisonment and a term of supervised release of not more than 3 years. “We’re not going to abide threats against President Trump in the Middle District of North Carolina,” said Bishop. “As soon as I received the details, I insisted we act immediately. I’m grateful to the FBI and AUSA Iverson and for their quick response.” “It has become far too common for people to make violent threats on social media. Listen closely, you cannot hide behind a keyboard and threaten people’s lives. The FBI will find you. Threats to public officials, their loved ones, a grieving widow, or the President of the United States, are illegal. Political violence in all forms must stop,” said James C. Barnacle Jr, the FBI Special Agent in Charge in North Carolina. DANIELS had an initial appearance today in Winston-Salem . He was detained and will have a detention hearing in Greensboro on December 18, 2025. A criminal complaint is merely an allegation , and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the Federal Bureau of Investigation and United States Secret Service, and prosecuted by Assistant United States Attorney Eric L. Iverson. ###


title: Lead defendant in multi-state car theft ring sentenced to 7 years in prison

component: USAO - Ohio, Southern

body_text: DAYTON, Ohio – The lead defendant in a $1.5 million chop shop conspiracy was sentenced in U.S. District Court today to 84 months in prison. Kahrese Tracey Scott Lee, 28, of Cincinnati, pleaded guilty in July 2025 to conspiring to transport stolen vehicles in interstate commerce and to knowingly operating a chop shop. According to court documents, between at least October 2023 and October 2024, Lee, who is also known as “Reese Lee” and “Bennett Jones,” knowingly worked with others to orchestrate an interstate stolen car ring. The defendant operated a garage in Dayton and received dozens of stolen vehicles. For example, during May 2024 alone, Lee’s Dayton chop shop housed within it more than half a million dollars in stolen cars and vehicle parts. Lee often dissembled stolen vehicles and removed their parts for resale or for placement in another vehicle. He both received and traded or sold vehicles out of state. On occasion, Lee also stole vehicles himself or worked with others to do so. During one planned theft incident, Lee and others traveled from Ohio to Indiana, where they stole three vehicles valued at more than $200,000 total from an auto lot. Law enforcement ultimately discovered Lee and others in possession of the stolen vehicles in Alabama, where Lee planned to establish a new garage. Officers confiscated the cars and returned them to the Indiana dealership that owned them. Lee and his accomplices had placed a tracking device on one of the stolen cars and tracked it back to Indiana. Lee traveled back to the Indiana dealership and attempted to steal the vehicle again; however, law enforcement apprehended him as he attempted to do so. Lee and six others were charged by a federal indictment in November 2024. Dominick S. Gerace II, United States Attorney for the Southern District of Ohio; Jason Cromartie, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Afzal announced the sentence imposed today by Senior U.S. District Judge Walter H. Rice. Deputy Criminal Chief Brent G. Tabacchi and Assistant United States Attorney Rob Painter are representing the United States in this case. # # #


title: Rock Island Man Sentenced to 48 Months in Federal Prison for Illegal Possession of a Machine Gun Charge

component: USAO - Iowa, Southern

body_text: DAVENPORT, Iowa – A Rock Island man was sentenced to 48 months in federal prison for illegally possessing a machine gun. According to public court documents and evidence presented at sentencing, in February 2025, Juwan Attron Johnson, 28, also known as “Chubbs,” possessed a machine gun conversion device. Machine gun conversion devices, commonly referred to as “switches,” convert a semi-automatic firearm into a fully automatic firearm that fires multiple shots with a single pull of the trigger. Machine gun conversion devices are classified as machine guns under federal law and are illegal to possess. Johnson is also prohibited from possessing firearms and ammunition because he is a felon, including a 2017 conviction for voluntary manslaughter. After completing his term of imprisonment, Johnson will be required to serve a two-year term of supervised release. There is no parole in the federal system. United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Multiple Chinese Nationals Indicted on Charges Related to Theft and Re-Sale of Restaurant Cooking Oil

component: Federal Bureau of Investigation (FBI)

body_text: DES MOINES, Iowa – A federal grand jury in Des Moines returned a nine-count indictment on December 9, 2025, charging multiple individuals with charges related to a racketeering conspiracy, conspiracy to commit the offense of interstate transportation of stolen property, and money laundering. As alleged in the Indictment, the charged Defendants committed thefts of used cooking oil, which can be refined into biodiesel fuel and re-sold. Defendants drove trucks to restaurants and stole and attempted to steal cooking oil from oil collection tanks located at restaurants throughout Iowa, and in Tennessee, Minnesota, Indiana, Ohio, Alabama, Illinois, Nebraska, Missouri, and Kentucky. Defendants then transported the stolen cooking oil to warehouses in Nevada and Ankeny, Iowa; Lewisburg, Tennessee; Dora, Alabama; and Tipp City, Ohio. Defendants subsequently sold the stolen cooking oil and laundered the proceeds. The following individuals are charged in the Indictment: Tianzhu Chen, 33, of Flushing, New York, is charged with racketeering conspiracy, conspiracy to transport stolen property interstate, two counts of interstate transportation of stolen property, and two counts of money laundering. Jingliu Chen, 55, of Flushing, New York, is charged with conspiracy to transport stolen property interstate. Yong Chen, 32, of Brooklyn, New York, is charged with racketeering conspiracy, conspiracy to transport stolen property interstate, and two counts of interstate transportation of stolen property. Xian Quan Guo, 48, of Des Moines, Iowa, is charged with racketeering conspiracy and conspiracy to transport stolen property interstate. Jianfa Huang, 40, of Des Moines, Iowa, is charged with racketeering conspiracy, conspiracy to transport stolen property interstate, and interstate transportation of stolen property. Fukang Wang, 37, of Staten Island, New York, is charged with racketeering conspiracy and conspiracy to transport stolen property interstate. Futao Wang, 36, of Des Moines, Iowa, is charged with racketeering conspiracy, conspiracy to transport stolen property interstate, and interstate transportation of stolen property. Jie Wang, 30, of Dayton, Ohio, is charged with racketeering conspiracy and conspiracy to transport stolen property interstate. Xiangjing Wang, 34, of Des Moines, Iowa, is charged with racketeering conspiracy, conspiracy to transport stolen property interstate, and two counts of interstate transportation of stolen property. Danrong Zhang, 38, of Flushing, New York, is charged with conspiracy to transport stolen property interstate and money laundering. Changxu Zou, 41, of Tulia, Texas, is charged with conspiracy to transport stolen property interstate. Changyu Zou, 38, of Edmond, Oklahoma, is charged with racketeering conspiracy and conspiracy to transport stolen property interstate. Wenrong Zou, 32, of Edmond, Oklahoma, is charged with conspiracy to transport stolen property interstate In connection with the case, federal search warrants and arrest warrants were executed today in Iowa, Ohio, New York, Kentucky, Oklahoma, and Texas. Xian Quan Guo, Jianfa Huang, Futao Wang, and Xiangjing Wang made their initial court appearances today before a United States Magistrate Judge of the United States District Court for the Southern District of Iowa. Trial was set for February 2, 2026. The remaining defendants will make their initial court appearances in the Southern District of Iowa on later dates. United States Attorney David C. Waterman of the Southern District of Iowa made the announcement. The Central Iowa Gang Task Force of the FBI Des Moines Resident Agency of the Omaha Field Office is investigating this case, with assistance from the Polk County Sheriff’s Office; Story County Sheriff’s Office; Des Moines Police Department; West Des Moines Police Department; Iowa Department of Public Safety; Iowa Department of Transportation; Gahanna, Ohio Police Department; Cullman, Alabama Police Department; Springfield, Illinois, Police Department; 18th Judicial District Drug Task Force in Tennessee; FBI Dayton Resident Agency of the Cincinnati Field Office; FBI Lexington Resident Agency of the Springfield Field Office; FBI Oklahoma City Field Office; FBI New York City Field Office; FBI Birmingham Field Office; FBI Amarillo Resident Agency of the Dallas Field Office; FBI Language Services; and the Environmental Protection Agency. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Former Community Support Worker Pleads Guilty to Defrauding District of Columbia Medicaid Program

component: USAO - District of Columbia

body_text: WASHINGTON – Jariatu Jalloh, 39, of Maryland, pleaded guilty yesterday to two counts of first-degree fraud and two counts of first-degree theft related to fraudulent billing submitted to the District’s Medicaid program. The announcement was made by U.S. Attorney Jeanine Ferris Pirro and Daniel W. Lucas, Inspector General for the District of Columbia. According to the government’s evidence, Jalloh was employed as a community support worker (CSW) by a District Mental Health Rehabilitation Service (MHRS). MHRS provides for diagnostic and assessment services, counseling, medication, intensive day treatment, and crisis or emergency services. A CSW provides community support services by helping consumers learn and improve basic life skills, such as managing their medication, increasing social skills, and learning how to apply for housing or a job. CSWs are responsible for helping eligible patients improve life skills, such as medication management and social skills. Jalloh admitted that between August 2021 and continuing through July 2023, while employed by the District MHRS provider, she engaged in a scheme to defraud the District’s Medicaid program by submitting encounter notes for community support services she did not provide and overbilling for services she allegedly provided to District Medicaid beneficiaries. Evidence shows that several of the Medicaid recipients who were assigned to Jalloh reported that they never received services from Jalloh, while others said their contact lasted only a few minutes. Despite this, Jalloh repeatedly submitted documentation claiming she rendered an hour or more of services – even in cases where she had no interaction with the Medicaid recipients. Through this scheme, Jalloh caused the District government and its Medicaid program to pay over $234,500 for fraudulent CSW claims. The Honorable Carmen McLean accepted the plea, and scheduled sentencing for March 13, 2026. This case was investigated by the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit and the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Special Assistant United States Attorney Emmanuela Charles, on detail from the D.C. Office of the Inspector General. 25CF2007145


title: Four-Time Convict Sentenced to 108 Months for Possession of a Glock with a Laser Sight While on Supervised Release

body_text: WASHINGTON – Jaswan Dayquon Thomas, 28, a four-time convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to a total of 108 months in prison for illegally possessing a Glock 19 9mm handgun outfitted with a laser attachment while he was still on supervised release for two prior firearms convictions, announced U.S. Attorney Jeanine Ferris Pirro. Thomas pleaded guilty May 27 before Judge Trevor N. McFadden to unlawful possession of a firearm and ammunition by a felon. In addition to the 108-month prison term, Judge McFadden ordered Thomas to serve three years of supervised release. According to court documents, on Sept. 9, 2024, Thomas had two outstanding warrants. Deputy United States Marshals (DUSMs) were canvassing near the 1300 block of Morris Road Southeast. The deputy marshals spotted a black 2005 Mercedes Benz C230 sedan known to be the same year, make, model, and color of the vehicle Thomas had operated during a traffic stop six months earlier. Thomas exited a nearby building, approached the Mercedes, and got into the driver’s seat. The deputy marshals approached. Thomas obeyed their commands to exit the vehicle with his hands up. The DUSMs placed Thomas under arrest and searched him. From Thomas’s front right jacket pocket, they recovered a clear plastic baggie with suspected marijuana. A DUSM looked into the open driver’s side door of the Mercedes and immediately saw a Glock 19 9mm handgun outfitted with a laser attachment in the open glove box. The gun, which was loaded with one round in the chamber, was equipped with an extended magazine that contained 38 rounds of ammunition. Thomas has four prior convictions in the District of Columbia. On March 28, 2015, Thomas pleaded guilty to theft – first degree in D.C. Superior Court, and was sentenced to 12 months in jail, suspended. On Jan. 12, 2018, Thomas pleaded guilty to attempted robbery in Superior Court and was sentenced to 10 months in jail. On Jan. 18, 2018, Mr. Thomas pleaded guilty to unlawful possession of a firearm (prior conviction) in Superior Court and was sentenced to 18 months. On Feb. 21, 2020, Thomas pleaded guilty in District Court to unlawful possession of a firearm and ammunition by a felon and was sentenced to 57 months of imprisonment followed by 36 months of supervised release. Thomas was on supervised release for two of those convictions when he was arrested in the Mercedes in 2024. This case was investigated by the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Brendan Horan. 24cr435 19cr367


title: ‘21st & Vietnam’ Defendant Sentenced to 16 Years for Fentanyl Trafficking and Assault While Armed

component: Drug Enforcement Administration (DEA)

body_text: WASHINGTON – Trevon Palmer, 30, a key member of the violent D.C. drug trafficking crew known as “21st and Vietnam,” was sentenced today in U.S. District Court to 192 months in prison for his role in running an open-air drug market in Northeast Washington, announced U.S. Attorney Jeanine Ferris Pirro. Palmer pleaded guilty on Sept. 12, 2025, to conspiracy to distribute 400 grams or more of fentanyl and to aggravated assault while armed. In addition to the 192-month prison term, Judge Beryl A. Howell ordered Palmer to serve five years of supervised release. Joining U.S. Attorney Pirro in the announcement were FBI Assistant Director in Charge Darren B. Cox of the Washington Field Office, DEA Special Agent in Charge Christopher C. Goumenis of the Drug Enforcement Administration Washington Division, and Chief Pamela A. Smith of the Metropolitan Police Department. According to court documents, the 21 st & Vietnam crew centered their open-air drug market near the interesection of 21st Street and Maryland Avenue, NE, and used an apartment building on the 1900 block of I Street as their base of operations. The crew distributed significant quantities of narcotics, including crack cocaine, fentanyl, methamphetamine, phencyclidine (PCP), and n-n-dimethylpentylone (boot). Palmer was one of the most prolific sellers of narcotics. Between late November 2023 and March 2024, Palmer made 12 sales – totalling about 300 grams of fentanyl – to undercover agents. Palmer also sold crack cocaine and methamphetamine. On April 19, 2024, Palmer and co-defendant Briyon Shuford sought to target members of a rival crew. As they drove in a stolen car midday along the 1200 block of Mt. Olivet Road, NE, they shot and injured four people near a convenience store. Shuford was sentenced to 161 months for drug conspiracy and the drive-by shooting. This investigation was a multi-agency effort between the Violent Crime Investigations Team of the Violent Crime Suppression Division of the Metropolitan Police Department, the FBI Washington Field Office’s Cross-Border Task Force, the Drug Enforcement Administration’s Washington Division, the District of Columbia National Guard Counter Drug Program, and the Department of Labor Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Andrea Duvall and Solomon Eppel of the Violent Crime Reduction and Narcotics Trafficking Section. 24cr226


title: Felon Sentenced in Possession of Firearm That Had Been Outfitted with a Machine Gun ‘Giggle Switch’

body_text: WASHINGTON – Sherwood Russell, 35, a previously convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to 27 months in federal prison for illegal possession of a firearm outfitted with a machine gun conversion device during which he struck a police officer with his vehicle, assaulted a woman, resisted arrest, and threatened an additional police officer, announced U.S. Attorney Jeanine Ferris Pirro. Russell pleaded guilty on Sept. 4, 2025, to unlawful possession of a firearm and ammunition by a felon. In addition to the prison term, Judge Christopher R. Cooper ordered Russell to serve three years of supervised release. Joining in the announcement were Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Chief Pamela A. Smith of the Metropolitan Police Department. According to court documents, on May 4, 2025, about 6:46 p.m., MPD officers responded to a call for a domestic disturbance on the 2000 block of 11th St. NW. Officers observed Russell grabbing a woman by her arms. Russell then entered his vehicle, a white Tesla with New Jersey tags. An officer instructed Russell to exit the vehicle. Instead, Russell turned the wheel, accelerated the vehicle, and struck the officer in the leg. After crashing into a fence, Russell exited the vehicle and attempted to flee. Officers tackled Russell and placed him under arrest. Officers looked into Russell’s vehicle and noticed a spilled open container of alcohol in the front seat. While conducting a probable cause search of the vehicle for more open containers of alcohol, officers recovered a Glock 23 .40 caliber pistol, loaded with 26 rounds of ammunition. The Glock was modified with a “giggle switch” that converted the semi-automatic into a fully automatic machine gun. Russell previously was convicted in 2011 of burglary one while armed with gun, assault with a dangerous weapon (AWD), and related counts and sentenced to 10 years in prison on the burglary conviction and 30 months for the AWD. This case was investigated by the ATF and the MPD. It was prosecuted by Assistant U.S. Attorney David Liss. 25cr210


title: Ada Resident Pleads Guilty To Failure To Register As Sex Offender

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jaylon Parker Jackson Gore, age 25, of Ada, Oklahoma, entered a guilty plea to one count of Failure to Register as Sex Offender, punishable by a term of up to 10 years in prison and a $250,000 fine. The Indictment alleged that Gore was convicted of Sexual Abuse of a Minor in Indian Country in the Eastern District of Oklahoma on July 11, 2024, and was required to register as a sex offender, and that from August 14, 2025, until September 6, 2025, Gore failed to update his registration despite residing in Indian country, within the Eastern District of Oklahoma. The charge arose from an investigation by the U.S. Marshals Service and U.S. Probation. The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors. Gore will remain in the custody of the United States Marshals Service pending sentencing. Assistant U.S. Attorney Jessie K. Pippin represented the United States.


title: Ada Resident Pleads Guilty To Felony Assaults

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Isaiah Thomas Billey, age 23, of Ada, Oklahoma, entered a guilty plea to two counts of Assault Resulting in Serious Bodily Injury in Indian Country, each punishable by a term of up to ten years in prison and a $250,000 fine. The Superseding Indictment alleged that on May 2, 2025, Billey assaulted one victim, resulting in serious bodily injury. The Indictment further alleged that on September 23, 2025, Billey assaulted a second victim, resulting in serious bodily injury. The crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Pittsburg County Sheriff’s Department and the Federal Bureau of Investigation. The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors. Billey will remain in the custody of the United States Marshals Service pending sentencing. Assistant U.S. Attorney Lewis M. Reagan represented the United States.


title: Sisseton Man Sentenced to Nearly 3 Years in Federal Prison  for Assaulting Another Person with a Knife

component: USAO - South Dakota

body_text: ABERDEEN - United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann has sentenced a Sisseton, South Dakota, man convicted of Assault with a Dangerous Weapon. The sentencing took place on December 4, 2025. Garrett Joseph Ojeda, Sr., age 33, was sentenced to two years and eleven month in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Ojeda was indicted by a federal grand jury in July 2025. He filed a Petition to Plead Guilty on September 15, 2025. The conviction stemmed from an incident February 9, 2025, on the Lake Traverse Reservation when Ojeda became angry about a missing TV remote device. Ojeda took out his anger on the victim and stabbed the victim several times before the victim could escape. The victim sustained serious bodily injuries which required medical treatment and reparative surgery. This case was investigated by the FBI and the Sisseton-Wahpeton Law Enforcement. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case. This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court. Ojeda was immediately remanded to the custody of the U.S. Marshals Service.


title: Sioux Falls Man Sentenced to Over 13 Years in Federal Prison for Conspiring to Distribute Methamphetamine

body_text: SIOUX FALLS - United States Attorney Ron Parsons announced today that U.S. District Judge Schreier has sentenced a Sioux Falls, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on December 1, 2025. Alex Lang, 31, was sentenced to 160 months in federal prison, followed by five years of supervised release, fine, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Lang was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in April 2025. He pleaded guilty on September 9, 2025. Lang worked with others to distribute multiple pounds of methamphetamine in Sioux Falls. He obtained methamphetamine from a co-conspirator who investigators identified as sourcing the methamphetamine from Arizona through the mail. Lang then sold methamphetamine to others. In total, investigators believe that Lang was responsible for selling approximately seven pounds of methamphetamine in the community. This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). This case was investigated by United States Postal Investigation Service and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Mark Hodges prosecuted the case. Lang was immediately remanded to the custody of the U.S. Marshals Service.


title: South Dakota and Arizona Men Collectively Sentenced to Decades in Federal Prison for Conspiracies to Distribute Fentanyl Pills and to Launder Drug Proceeds

body_text: SIOUX FALLS - United States Attorney Ron Parsons announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota man and a Phoenix, Arizona man convicted of Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering. The sentencings took place for both defendants on December 1, 2025. Fame Cobbs, 40, of Sioux Falls was sentenced to 24 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. In addition to the drug and money laundering convictions, Cobbs was also sentenced in a separate case following a conviction for Assault on a Federal Officer. In the assault case Cobbs was sentenced to 18 months in federal prison, followed by 3 years of supervised release, and ordered to pay a $100 special assessment. This sentence is to run concurrent with the drug sentence. Mario Taylor, 34, of Phoenix was sentenced to 15 years in federal prison, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. “Fentanyl traffickers are merchants of death who knowingly flood our communities with substances so lethal that two milligrams—less than a few grains of salt—can kill,” said U.S. Attorney Parsons. “Each pill they press, each gram they move, is a loaded weapon aimed directly at our children, our neighbors, and our future.” Cobbs and Taylor were indicted for Conspiracy to Distribute a Controlled Substance and Conspiracy to Commit Money Laundering by a federal grand jury in December 2023. Cobbs pleaded guilty on August 29, 2025, and Taylor pleaded guilty on September 8, 2025. Cobbs was indicted for Assault on a Federal Officer in September 2024 and pleaded guilty on August 29, 2025. During the conspiracy Mario Taylor was the source of supply in Arizona of thousands of fentanyl pills. He arranged for packages containing fentanyl to be mailed from Arizona to Fame Cobbs and others in the Sioux Falls area. Cobbs and his co-conspirators in Sioux Falls then distributed the fentanyl pills in Sioux Falls. Investigators identified approximately 18 packages through historical records and learned that each package contained approximately 2,000-4,000 fentanyl pills. Additionally, Cobbs collected money from various individuals to send back to Taylor in Arizona. Cobbs and Taylor utilized the electronic payment system Cash App to move proceeds related to the sale of fentanyl and to promote their drug distribution. Investigators believe a total of approximately 35,000 fentanyl pills were trafficked during the conspiracy. Cobbs’ criminal activity did not stop once he was in arrested. While in federal custody pending resolution of his case, Cobbs engaged in multiple instances of assaultive behavior while confined at the Minnehaha County jail. During one incident, Cobbs flooded his cell and physically struggled with officers. During the struggle Cobbs kicked one of the officers. “Today’s federal sentences reflect a simple truth,” said U.S. Attorney Parsons. “If you traffic fentanyl in South Dakota, you will end up behind bars for a long time.” These cases were investigated by Homeland Security Investigations, IRS-Criminal Investigations, the Sioux Falls Area Drug Task Force, and the United States Marshals Service. Assistant U.S. Attorneys Mark Hodges and Meghan Dilges prosecuted the cases. Cobbs and Taylor were immediately remanded to the custody of the U.S. Marshals Service.


title: MADISON MAN SENTENCED FOR POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE

body_text: TALLAHASSEE, FLORIDA – Willie Frank Hicks, 42, of Madison, Florida, has been sentenced to a 10-year term of imprisonment for possession with intent to distribute methamphetamine. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida. U.S. Attorney Heekin said: “Thanks to the excellent work of our state and federal law enforcement partners, my office has been able to deliver another successful prosecution that will keep this drug dealer off our streets. Meth has a devastating impact on the communities where it proliferates, but drug traffickers’ days are numbered in the Northern District of Florida as my office aggressively pursues prosecutions like these to keep our residents safe and our streets drug-free.” Court documents reflect that on May 29, 2025, Madison County Sheriff’s Office deputies on patrol conducted a traffic stop of a vehicle occupied by the defendant. During the traffic stop, the defendant attempted to flee the scene on foot and was subsequently apprehended by deputies. After being detained, the defendant was found in possession of approximately one kilogram of methamphetamine. “Methamphetamine is the second most common substance found in people who die from a drug poisoning,” said Drug Enforcement Administration Miami Field Division Special Agent in Charge Deanne L. Reuter. “With meth, addiction is all but guaranteed. Our agents will not stop until distributors of this poison have been brought to justice.” The case involved a joint investigation by the Drug Enforcement Administration, Madison County Sheriff’s Office, and Florida Highway Patrol. The case was prosecuted by Assistant United States Attorneys Eric K Mountin and James McCain. This case is part of Operation Take Back America ( https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Canton Man Sentenced to more than 3 Years in Federal Prison  for Wire Fraud and Money Laundering

body_text: RAPID CITY - United States Attorney Ron Parsons announced today that U.S. District Judge Karen E. Schreier has sentenced a Canton, South Dakota, man convicted of three counts of Wire Fraud and two counts of Money Laundering. The sentencing took place on December 5, 2025. Gary Aaron King, 51, was sentenced to three years and one month in federal prison, followed by two years of supervised release and ordered to pay a $500 special assessment to the Federal Crime Victims Fund and $1,418,220.87 in restitution. King was indicted for Wire Fraud and Money Laundering by a federal grand jury in February 2024. He pleaded guilty on September 5, 2025. Between July 2022 and January 2023, King, the sole owner of Cypress Risk Management, LLC, collected insurance premiums from client colleges for student athlete insurance coverage and then embezzled the funds for his own personal benefit. Rather than remitting those premiums to the managing general agents as he was required, King used more than $1,400,000.00 for another business venture and to purchase a luxury home. When questioned by the managing general agents regarding the payments on the policies the colleges had purchased, King provided false explanations and sent checks to the managing general agents that were returned as insufficient funds. “Federal investigators are committed to rooting out fraud wherever it exists,” said U.S. Attorney Parsons. “This sentence, which includes full restitution for the institutions fleeced by this defendant, is another reminder that the bill for committing fraud will eventually come due and be paid with a term of years.” This case was investigated by the Internal Revenue Service – Criminal Investigation and Health and Human Services, Office of Inspector General. Supervisory Assistant U.S. Attorney Benjamin Patterson prosecuted the case. King was ordered to self-surrender to the custody of the U.S. Marshals Service at a future date.


title: DESTIN MAN CHARGED IN FEDERAL INDICTMENT FOR FRAUD AND AGGRAVATED IDENTITY THEFT

component: USAO - Florida, Northern

body_text: PENSACOLA, FLORIDA – Marcus Bernard Clark , 30, of Destin, Florida, was indicted by a federal grand jury charging him with fraud and related activity in connection with fifteen or more access devices and aggravated identity theft. John P. Heekin, United States Attorney for the Northern District of Florida, announced the charges today. Clark appeared in federal court for his arraignment before United States Magistrate Judge Hope Thai Cannon on December 2, 2025, in Pensacola, Florida. Jury trial is scheduled for January 20, 2026, before United States District Judge T. Kent Wetherell, II in Penscaola, Florida. If convicted, Clark faces up to ten years imprisonment, with two years as a minimum mandatory sentence. The Okaloosa County Sheriff’s Office is investigating the case. Assistant United States Attorney Jessica S. Etherton is prosecuting the case. An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Justice Department Sues Minneapolis Public Schools for Racial Discrimination Against Teachers

component: Office of the Attorney General

body_text: Yesterday, the Justice Department’s Civil Rights Division filed a lawsuit against Minneapolis Public Schools (MPS) over MPS’ collective bargaining agreement (CBA) with a teachers’ union which preferences teachers who are members of an “underrepresented population” in employment decisions and prioritizes “Black Men Teach Fellows” for certain employment benefits, terms, and conditions. “Discrimination is unacceptable in all forms, especially when it comes to hiring decisions,” said Attorney General Pamela Bondi. “Our public education system in Minnesota and across the country must be a bastion of merit and equal opportunity — not DEI.” “Employers may not provide more favorable terms and conditions of employment based on an employee’s race and sex,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously pursue employers who deny their employees equal opportunities and benefits by classifying and limiting them based on their race, color, national origin, or sex.” The lawsuit, filed in the U.S. District Court for the District of Minnesota, notes that MPS seeks to increase their “BIPOC staffing . . . to at least 40% by 2026,” and that by 2026–2027, at least “54.3 %” of new teacher hires “identify as Black, Indigenous, and People of Color (BIPOC).” MPS’ CBA classifies teachers for involuntary reassignment, layoff, and reinstatement depending on whether the teacher is a member of an “underrepresented population.” The United States’ complaint further alleges that MPS awards members of a third-party group organization called “Black Men Teach Fellows” multiple benefits, terms, and conditions of employment not available to female or non-black teachers, in violation of Title VII of the Civil Rights Act of 1964, as amended. The complaint asks the court to declare that MPS discriminates against teachers based on their race, color, national origin, and sex, in violation of Title VII, and to enter a permanent injunction against MPS stopping them from implementing similar discriminatory provisions in a future CBA. This case stems from an investigation launched by the Employment Litigation Section of the Department of Justice’s Civil Rights Division. You can view the complaint here .


title: Kyle Man Found Guilty of Assault Following Federal Jury Trial

body_text: RAPID CITY - United States Attorney Ron Parsons announced that a jury has convicted Oliver Brown Bull, age 37, of Kyle, South Dakota, of Assault Resulting in Serious Bodily Injury following a 3-day jury trial in federal district court in Rapid City. The verdict was returned on December 4, 2025. The charges carry a maximum penalty of ten years in custody and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered. Brown Bull was indicted by a federal grand jury in March 2025, for two counts of Assault Resulting in Serious Bodily Injury and one count of Assault with a Dangerous Weapon. At the conclusion of a federal jury trial, he was found guilty of assaulting one victim and not guilty of assaulting another victim. On January 31, 2025, in the Pine Ridge Reservation, Brown Bull assaulted another man by pushing him to the ground and punching him multiple times in the face. Brown Bull then kicked the victim in the face. As a result, the victim suffered several injuries, including a broken eye socket, a laceration around his eye, two broken bones in his nose, and severe bruising. At the time of trial, the victim was still suffering from the assault, including continued pain and disfigurement. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court. This case was investigated by the Oglala Sioux Tribe Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Benjamin Schroeder prosecuted the case. A presentence investigation was ordered, and a sentencing date will be set. In the interim, Brown Bull was remanded to the custody of the U.S. Marshals Service.


title: Aberdeen Man Sentenced to 25 Years in Federal Prison  for Conspiring to Distribute Methamphetamine

body_text: SIOUX FALLS - United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann has sentenced an Aberdeen, South Dakota man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on December 4, 2025. Calvin Taylor, 42, was sentenced to 25 years in federal prison, followed by five years of supervised release, fine, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Taylor was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in November 2024. He pleaded guilty on June 2, 2025. In February 2024, Taylor began having packages of methamphetamine mailed to various addresses in Aberdeen and the surrounding area from a source of supply in California. Taylor then sold the drugs to other members of a conspiracy of which he was a member who distributed it in the Aberdeen area. Approximately 4.5 pounds of distributed methamphetamine was attributed to Taylor at sentencing. This case was investigated by the Brown County Sheriff’s Office, the Aberdeen Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Joyce prosecuted the case. Taylor must self-report to the U.S. Marshals Service on or before December 26, 2025.


title: HINDS COUNTY MAN SENTENCED FOR TWO COUNTS OF ATTEMPTED PRODUCTION OF CHILD SEX ABUSE MATERIAL

component: Department of Justice

body_text: Jackson, MS –Joe Lewis, a resident of Hinds County, Mississippi was sentenced to 292 months in federal prison for two counts of Attempted Production of Child Pornography. After release from prison, Lewis will be on supervised release for 10 years and must register as a sex offender. According to court documents, Joe Lewis, 55, under the pretense of mentoring middle school aged boys, would send money to his victims via Cash App and demand that victims expose their pubic areas to him during FaceTime sessions that Lewis recorded. The Federal Bureau of Investigation Jackson ‘s Office (“FBI”) was contacted by the Jackson Police Department (“JPD”) for assistance in investigating Joe Lewis and identifying other victims. JPD’s investigation began when the mother of one of the minors reported to JPD that an older man had being sending her son money via Cash App. The FBI forensically examined Lewis’ electronic devices and found that Lewis had also been sending obscene sexually explicit abuse materials to young boys in and around Jackson. During the course of the investigation the FBI Jackson was able to locate other minor victims. “Those who hurt and endanger our children by committing these despicable crimes will not be tolerated and will be held accountable”, said Baxter Kruger, United States Attorney for the Southern District of Mississippi. “This lengthy sentence ensures this defendant can never again hurt and abuse children. My office is committed to working with the FBI, Jackson Police Department, and other state and local law enforcement agencies to help protect children.” FBI Special Agent in Charge Rob Eikhoff said, “Those who prey on minors shatter their innocence. Protecting children and holding vile predators, like Joe Lewis, accountable is one of the FBI’s highest priorities. FBI Jackson, the United States Attorney’s Office and the Jackson Police Department stand together to protect our children and ensure justice is served for all who seek to harm them.” This case was brought as part of 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 Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . Assistant U.S. Attorney Glenda R. Haynes prosecuted the case.


title: Aberdeen Man Sentenced in Federal Court for Gun Charge

body_text: ABERDEEN - United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann has sentenced an Aberdeen, South Dakota man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on December 8, 2025. Christopher Emmanuel Walton, 35, was sentenced to serve five months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Walton was indicted for Prohibited Person in Possession of a Firearm by a federal grand jury in July 2024. He pleaded guilty on November 3, 2025. Walton is prohibited from possessing a firearm due to a prior domestic violence conviction. In June 2024, Walton’s roommate borrowed his car to go target shooting. When he returned home, the roommate inadvertently left a pistol in the trunk. Later that day, Walton discovered the firearm in his vehicle as he was preparing to leave for parenting time with his children. Since he was already late, Walton put the firearm inside his backpack rather than take it back inside to his roommate. An Edmunds County deputy pulled Walton over and found the firearm in the trunk of his vehicle. This case was investigated by the FBI. Assistant U.S. Attorney Carl Thunem prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Recovery Centers of America Agrees to Pay $2 Million to Resolve Allegations That It Violated the Controlled Substances Act and the False Claims Act by Mishandling Controlled Substances and Providing Inadequate Treatment Services

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney David Metcalf announced today that Recovery Centers of America (RCA) has agreed to pay $1,000,000 to resolve allegations that it failed to comply with provisions of the Controlled Substances Act (CSA) that are designed to prevent the diversion of controlled substances for illegal uses, and an additional $1,000,000 to resolve allegations that it violated the False Claims Act (FCA) by billing the government for drug and alcohol treatment services that it failed to adequately provide. The United States’ allegations under the CSA arise from audits and investigations the Drug Enforcement Administration (DEA) conducted at RCA facilities in Pennsylvania and Maryland between 2019 and 2024. Based on those audits and investigations, the United States contends that RCA dispensed controlled substances in an unlawful manner, that certain controlled substances were missing from the company’s records, and that the company failed to comply with additional recordkeeping requirements of the CSA. In addition, the United States alleges that, at certain facilities during a period from 2017 through 2019, RCA violated the FCA by billing the Federal Employees Health Benefits Program and Medicaid for the care of beneficiaries to whom it failed to provide and document the requisite treatment services. “Drug and alcohol treatment facilities must prescribe and store controlled substances in a manner that comports with rules designed to ensure that dangerous drugs do not fall into the wrong hands. They also must provide treatment services that comply with all governing laws and regulations,” said U.S. Attorney Metcalf. “When they fail in either of those critical duties they will face significant consequences.” “When rehabilitation and treatment centers do not live up to their obligations, our office will vigorously pursue the violations,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s Philadelphia Division. “Careless behavior and failure to adhere to the provisions of the CSA allows for substances to be diverted and sold without accountability.” “This settlement underscores our agency’s steadfast commitment to investigating alleged False Claims Act violations targeting federal health care programs,” said Maureen Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Unlawful dispensing of controlled substances and billing for unprovided care endanger patients and defraud taxpayers. HHS-OIG will continue working with our partners to hold providers accountable and protect patient safety.” “Patients seeking to recover from addiction should be able to trust that treatment facilities will provide safe, legitimate care in support of their health,” said Derek M. Holt, Special Agent in Charge of the U.S. Office of Personnel Management Office of Inspector General (OPM-OIG). “We thank our dedicated staff and federal law enforcement partners for holding accountable those facilities that instead seek to exploit vulnerable federal employees and their family members.” The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, a former Outcomes Supervisor at RCA’s corporate headquarters in King of Prussia, Pa., to receive a $230,000 share of the settlement amount. The qui tam case is captioned U.S. ex rel. McLoyd v. TRC-OC, Trading as Recovery Centers of America Holdings, LLC , No. 17-cv-5164 (E.D. Pa.). The resolution obtained in this matter was the result of a coordinated effort among the United States Attorney’s Office for the Eastern District of Pennsylvania, the DEA, the Office of Personnel Management Office of Inspector General, and the Department of Health and Human Services Office of Inspector General. The matter was handled in the U.S. Attorney’s Office for the Eastern District of Pennsylvania by Assistant U.S. Attorneys Peter Carr and Charlene Keller Fullmer and former auditor Dawn Wiggins. The claims resolved by the settlement are allegations only; there has been no determination of liability.


title: Virtual Asset Trading Platform Pleads Guilty to Violating the Travel Act and Other Federal Criminal Charges

component: Criminal Division

body_text: Paxful Holdings Inc., an online virtual currency trading platform, agreed to plead guilty yesterday to a three-count information filed in the Eastern District of California and agreed to pay a criminal penalty of $4 million based on its ability to pay. “Paxful made millions of dollars in part by knowingly moving cryptocurrency for the benefit of fraudsters, extortionists, money launderers and purveyors of prostitution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant attracted its criminal clientele by promoting its lack of anti-money laundering controls and its deliberate decision not to identify its customers. This conviction shows that no matter the means, the Criminal Division will hold criminals accountable for knowingly engaging in illicit finance to further dangerous criminal activity.” “Yesterday’s guilty plea by Paxful Holdings holds the company accountable for knowingly facilitating serious criminal conduct in the United States and elsewhere,” said U.S. Attorney Eric Grant for the Eastern District of California. “Through its calculated lack of controls, the company made itself available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution. This resolution sends a clear message: those who deliberately turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law. The Department of Justice remains committed to protecting victims and ensuring that the financial system, including the cryptocurrency ecosystem, is not exploited.” “For years, Paxful disregarded its Bank Secrecy Act obligations and facilitated transactions associated with illicit activity and high-risk jurisdictions, such as Iran and North Korea,” said Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki. “FinCEN is committed to mitigating risks to the U.S. financial system while fostering responsible innovation in the virtual asset ecosystem.” “Paxful Holdings, Inc. knowingly enabled its platform to serve as a conduit for criminal activity — including fraud and illegal prostitution,” said Special Agent in Charge Linda Nguyen of the IRS Criminal Investigation (IRS-CI) Oakland Field Office. “By willfully disregarding anti-money laundering laws and failing to report suspicious activity, Paxful profited in illicit trades while facilitating crimes with serious harm and consequences. IRS-CI remains steadfast in its mission to hold virtual currency platforms accountable when they are used to conceal and enable criminal conduct.” According to court documents, Paxful Inc., and later, Paxful Holdings Inc. (collectively Paxful), owned and operated an online peer-to-peer virtual currency platform and money transmitting business (MTB) where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, pre-paid cards and gift cards. Paxful knew that its customers transmitted funds from criminal offenses, including fraud schemes and illegal prostitution. From Jan. 1, 2017, to Sept. 2, 2019, Paxful facilitated more than 26.7 million trades, totaling nearly $3 billion in value, and collected more than $29.7 million in revenue. Paxful knowingly transferred virtual currency on behalf of its customers, including Backpage, an online advertising platform for illicit prostitution and similar sites. In various criminal proceedings, Backpage and its owners and operators admitted that Backpage advertised and profited from illegal prostitution, including illegal sex work depicting minors. Paxful’s founders boasted about the “Backpage Effect,” which enabled Paxful’s business to grow. Between December 2015 and December 2022, Paxful’s collaboration with Backpage and a similar site caused nearly $17 million worth of bitcoin to be transferred from the Paxful wallet to Backpage and the copycat site from which Paxful obtained at least $2.7 million in profits. As described in the plea agreement, from July 2015 to June 2019, Paxful and its founders marketed Paxful as a platform that did not require know-your-customer (KYC) information; allowed customers to open accounts and trade on the Paxful platform without gathering sufficient KYC information; presented to third parties fake anti money-laundering (AML) policies that they knew were not implemented or enforced; and failed to file suspicious activity reports, despite knowing that Paxful users were engaged in suspicious and criminal activity. As a result, Paxful knew it was used as a vehicle for prostitution, fraud, romance scams and extortion schemes. Paxful agreed to plead guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce; conspiring to operate an unlicensed MTB by knowingly transmitting funds derived from criminal offenses or supporting unlawful activity, including illegal prostitution and fraud schemes; and conspiring to violate the Bank Secrecy Act’s (BSA) AML program requirement. As a result of its illegal conduct, the virtual currency platform was used to transfer the proceeds of fraud schemes, illegal prostitution, hacks by malign state actors and distribution of child sexual abuse material. The Justice Department reached its resolution with Paxful based on several factors, including the nature and seriousness of the offenses, which involved Paxful’s processing of millions of dollars of illicit transactions. Paxful did not make a timely and voluntary disclosure of wrongdoing, but it received credit for its cooperation with the department’s investigation, including among other things, collecting, analyzing and producing voluminous information, providing timely updates on facts learned during its internal investigation and engaging in extensive and timely remedial measures. Accordingly, Paxful received a 25% reduction off the bottom of the applicable U.S. sentencing guidelines fine range. According to court documents, Paxful agreed that the appropriate criminal penalty based on the law and the facts in its case is $112,500,000. Based on the Justice Department’s independent analysis, it determined that Paxful did not have the ability to pay a criminal penalty greater than $4 million. The court will sentence Paxful on Feb.10, 2026. On July 8, 2024, Paxful’s co-founder and former chief technology officer, Artur Schaback, pleaded guilty to conspiracy to fail to maintain an effective AML program in relation to the same scheme. Paxful’s guilty plea is part of a coordinated resolution with FinCEN. Immigrations and Customs Enforcement Homeland Security Investigations (ICE HSI) and IRS-CI are investigating the case. Bank Integrity Unit Deputy Chief Kevin Mosley and Trial Attorneys Emily Cohen, Caylee Campbell and Katherine Nielsen of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case. The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.