title: Surro Connections Owner, Business Manager, And Spouse Charged With Fraud In Collapse Of Surrogacy Agency

component: USAO - California, Northern

body_text: OAKLAND — Megan Hall-Greenberg, 49, and Jeffrery Greenberg, 45, of Washougal, Washington, and Heather Morgan, 47, of Camas, Washington, have been charged by indictment with wire fraud and conspiracy to commit wire fraud, alleged to have conspired to misappropriate millions of dollars of funds from Surro Connections. Hall-Greenberg and Greenberg were also charged with money laundering and conspiracy to commit money laundering. As part of the scheme, the defendants are alleged to have concealed the misappropriation from Surro Connections’ clients, the intended parents and the surrogates. Surro Connections collected and held funds, often totaling over $100,000 per client, that were pledged to be used to cover the costs of surrogacies, including legal fees, medical costs, compensation to surrogates, travel, and other costs. Instead, as alleged in the indictment, Hall-Greenberg and Greenberg spent over $1.1 million in misappropriated funds on personal expenses, including gambling debts, cruises, a vacation at an adults-only resort in Mexico, and trips to Las Vegas. In addition, Hall-Greenberg and Greenberg spent over $60,000 on luxury items, including Louis Vuitton purses, Bucherer, Rolex and LVMH watches, diamonds and other jewelry. “The victims in this case entrusted their hopes and dreams of starting a family—not to mention their hard-earned savings—to these defendants. But instead of the child they dreamed of, they got heartache and disappointment,” said United States Attorney Craig Missakian. “These defendants took advantage of vulnerable families, and they should pay a steep price for their callous and unbridled greed.” “Families placed extraordinary trust into Surro Connections during one of the most meaningful moments of their lives. The defendants’ alleged actions not only broke that trust—they caused real harm to parents and surrogates who relied on them,” said FBI Special Agent in Charge Scott Schelble. “The FBI is committed to uncovering the truth, protecting victims, and ensuring that those who exploit vulnerable individuals for personal gain are held fully accountable.” The indictment alleges that for over 19 months, Hall-Greenberg, Greenberg, and Morgan conspired to conceal the misappropriation by falsely representing to clients of Surro Connections that their funds were being held safely in an escrow account, when in fact those accounts had been drained. According to the indictment, defendants Hall-Greenberg and Morgan repeatedly sent “balance statements” to Surro Connections clients that falsely represented that their funds were being held in escrow. Instead, as alleged in the indictment, the escrow account was essentially empty, and the defendants were attempting to forestall the company’s collapse by using over $4.7 million in high-interest loans, incoming client payments, and credit cards, in an attempt to pay outstanding costs and conceal the misappropriation. The indictment alleges that on December 5, 2025, Hall-Greenberg sent an email to Surro Connections intended parents, surrogates, and employees that stated the company was ceasing operations immediately and “has no ability to provide any further performance pursuant to any contractual or other Company obligations.” The defendants are scheduled to make an initial appearance in U.S. district court in Oakland, California, on September 3, 3026 at 10:30 a.m. before the Honorable U.S. Magistrate Judge Ajay S. Krishnan. The case is assigned to the Honorable U.S. District Judge Araceli Martinez-Olguin for further proceedings. 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 a maximum sentence of twenty years in prison for wire fraud and conspiracy to commit wire fraud, and ten years in prison for money laundering and conspiracy to commit money laundering. The defendants also face a fine of up to $250,000, and potential forfeiture and restitution. 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. Assistant U.S. Attorneys David Ward and Ivana Djak are prosecuting the case with the assistance of Amala James and Jessie Chelsea. The prosecution is the result of an investigation by the FBI.


title: Four Talladega Men Convicted of Drug-Trafficking Crimes

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

body_text: BIRMINGHAM, Ala. – Four Talladega men have been held accountable in federal court for their roles in a drug-trafficking conspiracy, announced U.S. Attorney Phillip W. Williams Jr. The four men were initially indicted together, but two previously pleaded guilty. The remaining two were set for trial last week before Chief U.S. District Court Judge Madeline H. Haikala. The jury found Tramarcus Fomby also known as “Slacc,” 31, guilty after five days of testimony. Fomby was convicted of conspiracy to possess with the intent to distribute more than 50 grams of pure methamphetamine. Flemings Chatman also known as “Boo Bang,” 44, was set for trial with Fomby but pleaded guilty at the beginning of trial to conspiracy to possess with the intent to distribute methamphetamine. In July, Ladarious Quashawn Brown also known as “Eastside Jack,” 33, was sentenced to 15 years in prison after his earlier guilty plea to conspiracy to possess and distribute more than five kilograms of methamphetamine. And co-defendant Robert Houston Jr., 57, pleaded guilty to his part in the same conspiracy earlier this month. “The defendants have repeatedly engaged in criminal conduct with disregard for the law, and they posed a serious danger to our communities,” said U.S. Attorney Phillip W. Williams Jr. “Together, with our federal, state and local law enforcement partners we will continue to pursue those who profit from drug trafficking and work to keep our communities safe.” “The jury’s verdict convicting Tramarcus Fomby puts an exclamation point on the tremendous work of the DEA and their state and local partners, marking a complete dismantlement of this notoriously violent drug trafficking ring,” said Assistant U.S. Attorney Gregory R. Dimler. “The Talladega area will be safer with Chatman, Fomby, and Brown behind bars.” “Relentless collaboration is the key to dismantling drug trafficking organizations targeting our communities,” said Drug Enforcement Administration (DEA) Special Agent in Charge John P. Scott. “By pairing the reach of our local law enforcement partners with DEA and ATF resources, we ensured every member of this operation was brought to justice.” “This investigation involved premeditated acts to obtain and distribute dangerous amounts of illegal narcotics with blatant disregard for public safety,” said ATF Special Agent in Charge James J. VanVliet. “The ATF and our valued law enforcement partners remain committed to dismantling these trafficking networks, removing illegal firearms and drugs from our communities, and ensuring that individuals who pose a threat to public safety are held accountable.” In January 2024, the DEA, along with local and state law enforcement agencies, began investigating a Talladega-area drug-trafficking organization led by Chatman. In late September 2024, DEA learned that Brown, along with co-defendants Fomby and Chatman, pooled money to buy approximately ten kilograms of methamphetamine for which Chatman and Fomby gave Brown $5,000. Brown later contacted Chatman and advised that he had to get rid of the methamphetamine during a police pursuit. Later that month, Fomby, Chatman, and Brown again pooled their money and planned another methamphetamine buy to recoup their losses from the earlier transaction. Brown, Chatman, and codefendant Robert Houston Jr. drove in two cars from Talladega, Alabama, to Atlanta, Georgia, to purchase approximately six kilograms of methamphetamine to be split amongst Chatman, Brown, and Fomby. Chatman made the purchase and placed the drugs in the car Houston had driven for the trip. On the return trip to Alabama, Chatman and Brown rode together in a car separate from Houston, and the trio traveled in tandem back to Talladega. Law enforcement officers with the Talladega Drug Task Force and DEA special agents waited along Highway 21 in Talladega to spot them on that return journey. That evening, local law enforcement conducted a traffic stop on Houston, searched his car, and seized nearly 4,600 grams of pure methamphetamine. DEA Birmingham Division and ATF Birmingham Division investigated the case along with the Talladega County Drug Task Force, 7th Judicial Circuit Major Crimes Unit, Talladega Police Department, Talladega County Sheriff’s Department, and the Oxford Police Department. Assistant U.S. Attorneys Gregory R. Dimler and Scott Woodard prosecuted the case.


title: Washington man sentenced to 19 years for trafficking fentanyl into Montana while armed

component: Federal Bureau of Investigation (FBI)

body_text: MISSOULA – A Washington man who trafficked fentanyl from Seattle to Missoula while carrying a loaded handgun was sentenced today to 19 years in prison, followed by five years of supervised release, Acting U.S. Attorney Mark Steger Smith said. Tyreece Kingsley Dunbar, 42, pleaded guilty in January 2026 to possession with intent to distribute fentanyl and possessing a firearm in furtherance of a drug crime. U.S. District Judge Dana L. Christensen presided. The government alleged in court documents that several sources had informed law enforcement that Dunbar was moving fentanyl from Seattle to Missoula by bus in early 2025. Agents arrived at the Greyhound bus station there on March 15, 2025, and found Dunbar wearing a face covering and body armor. He was also carrying a loaded Ruger .40 caliber pistol with a round in the chamber and a half pound of fentanyl. “This defendant flooded our streets with deadly synthetic drugs, putting lives at risk for profit,” said Special Agent in Charge Justin Gerken of the FBI Billings Field Office. “The sentence holds him accountable and furthers our commitment to protecting our communities from the devastating effects of illegal drug trafficking.” The U.S. Attorney’s Office prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force conducted the investigation. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.


title: Recidivist Violent Offender Sentenced to Prison for Interstate Threats

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – Paul Richard Lukas (51, Cape Coral) was sentenced today by U.S. District Judge Kyle Dudek to four years in federal prison for making interstate communications of threats to injure. Lukas pleaded guilty on May 20, 2026. United States Attorney Gregory W. Kehoe made the announcement. According to court records, on January 30, 2026, approximately one month after Lukas was released from Florida state prison for violent offenses, Lukas made several threatening phone calls to kill multiple individuals located in Florida, Georgia, and Alaska. One of the victims reported the threat to the Federal Bureau of Investigation. FBI then requested assistance from the Cape Coral Police Department (CCPD). Less than one hour after the FBI had received notification of the threats, CCPD made contact with Lukas at his home where they located several empty rifle cases. In imposing the sentence, the court varied upward after considering Lukas’s lengthy criminal history consisting of approximately 40 prior adult convictions, many of which involved batteries, assaults, and threats against other individuals. This case was investigated by the Federal Bureau of Investigation and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Matthew Redavid.


title: Fraudster Who Impersonated DEA Agent Sentenced to Federal Prison

body_text: Orlando, Florida – Matthew John Sanguine (49, Orlando) has been sentenced by U.S. District Judge Anne-Leigh Gaylord Moe to five years and five months in federal prison for bank fraud, aggravated identity theft, and impersonating an officer of the United States. Sanguine pleaded guilty on December 4, 2025. As part of his sentence, the court also entered an order of forfeiture in the amount of $10,000, the proceeds of bank fraud conviction. United States Attorney Gregory W. Kehoe made the announcement. According to court documents, on May 2, 2022, Sanguine was stopped by the Orlando Police Department while driving a stolen vehicle. Officers found a Florida driver license bearing Sanguine’s photo but listing the identity of an Arizona resident (“J.R.”). The officers kept that fraudulent document as part of the evidence involved in that case. While his case was progressing in state court in Orlando, Sanguine presented the State Attorney’s Office with a fraudulent letter that was purportedly authored by an agent with the Drug Enforcement Administration. The fake letter included claims that Sanguine was authorized to have the false driver license bearing the name “J.R.” because Sanguine was working as an informant for the DEA. The letter demanded that the State Attorney’s Office return the confiscated driver license because Sanguine needed this fake identity to avoid detection by drug cartels. The letter warned of a “grave risk” unless the license was returned to Sanguine “immediately” and all records of this license were removed from the court records. The State Attorney’s Office suspected the letter was not authentic and referred the matter to the FBI. The FBI’s investigation revealed that Sanguine was using “J.R.’s” identity for at least a decade and had used it to perpetrate bank fraud for $10,000. This case was investigated by Federal Bureau of Investigation, with assistance from the Orlando Police Department and the State Attorney’s Office for the Ninth Judicial Circuit. It was prosecuted by Assistant United States Attorney Michael P. Felicetta and Dana E. Hill. The forfeiture is being handled by Assistant United States Attorney Nicole M. Andrejko.


title: Armed Bank Robber Indicted in Orlando

body_text: Orlando, Florida – Kelean Lerod Cobb (38, Orlando) has been charged by indictment with bank robbery, brandishing a firearm in furtherance of a violent crime, and possessing a firearm as a prohibited person. If convicted of all counts, Cobb faces a minimum of 7 years, up to life, in federal prison. United States Attorney Gregory W. Kehoe made the announcement. According to court documents, on February 27, 2026, Cobb robbed a bank in Altamonte Springs at gunpoint. Cobb entered the bank wearing a mask and dark colored clothing. He jumped over the teller counter and brandished a dark colored pistol at one of the bank tellers before pointing the firearm at another bank teller and directing her to open her drawer. Cobb then took approximately $277 and fled from the bank. A follow up investigation by law enforcement identified Cobb as the perpetrator. In addition, Cobb possessed a firearm on August 12, 2026. Cobb is a convicted felon and therefore prohibited from possessing firearms under federal law. His prior offenses include robbery with a firearm, aggravated fleeing and eluding law enforcement, and trafficking in stolen property. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Federal Bureau of Investigation, the Altamonte Springs Police Department, and the Seminole County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kaley Austin-Aronson. This case is part of Project Safe Neighborhoods (PSN), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.


title: Montgomery Man Sentenced to 25 Years in Federal Prison for Series of Armed Robberies

body_text: MONTGOMERY, Ala. — A Montgomery man was sentenced today to 300 months in federal prison for his role in a series of armed robberies targeting businesses throughout Montgomery. On August 26, 2026, a federal judge sentenced 21-year-old Najari Denarka Mitchell of Montgomery to 25 years in federal prison. Mitchell previously pleaded guilty to multiple federal robbery and firearm charges arising from armed robberies committed during the summer of 2025. Following his prison sentence, Mitchell will serve five years of supervised release. There is no parole in the federal system. United States Attorney Thomas Govan and Special Agent in Charge Christopher R. Flowers with the FBI Mobile Division made the announcement. “Mr. Mitchell participated in multiple armed robberies that terrorized employees and customers and put innocent people at risk,” said U.S. Attorney Govan. “His 25-year federal sentence reflects the seriousness of his conduct and should serve as a warning to others who choose to use firearms to commit violent crimes.” “Our partnerships remain essential to driving violent crime down to historic lows,” said Special Agent in Charge Flowers. “Today’s sentence of Mr. Mitchell reflects the strength of those collaborations and our shared commitment to protecting the public. This case is a clear example of what happens when federal, state, and local agencies work as one team. Together with our partners, we remain committed to supporting victims and strengthening stability across the region.” According to his plea agreement and other court records, between June 5 and July 28, 2025, Mitchell committed four armed robberies targeting a cell phone store and three gas stations throughout Montgomery, including businesses located on Troy Highway, Eastern Boulevard, and Virginia Loop Road. Mitchell later partnered with co-defendant Rayshon Frances Demonta Hall in three additional armed robberies. On August 1, 2025, Mitchell and Hall robbed a fast-food restaurant on Troy Highway while threatening an employee with a firearm. The following day, they robbed an auto parts store on Fairview Avenue. On August 4, 2025, Mitchell and Hall robbed a gas station on Troy Highway. Mitchell also pleaded guilty to his role in an attempted robbery of an auto parts store in Montgomery involving Hall. In addition to the robbery offenses, Mitchell pleaded guilty to two counts of brandishing a firearm during and in relation to a federal crime of violence. Mitchell’s co-defendant, Hall, was convicted by a federal jury on May 20, 2026, of three counts of robbery and three counts of brandishing a firearm during and in relation to a federal crime of violence. Hall is scheduled to be sentenced on September 9, 2026. The FBI and Montgomery Police Department investigated this case, with assistance from the United States Marshals Service. Assistant United States Attorneys Mark E. Andreu and Eric M. Counts prosecuted the case. This case is part of Project Safe Neighborhoods (PSN) and the Middle District of Alabama’s Violent Offender Intervention and Deterrence (VOID) program. PSN is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. VOID aims to reduce violent crime by enhancing coordination, communication, and collaboration with law enforcement partners. The program focuses on working directly with local agencies and traditional federal partners to prosecute violent offenders and armed felons, dismantle drug trafficking organizations, and build proactive cases targeting gangs and repeat violent offenders. VOID prioritizes the most serious violent crime cases and fosters close working relationships with state and local prosecutors and law enforcement throughout the Montgomery River Region.


title: Baltimore Man Sentenced for Setting Residential Fires

body_text: Baltimore, Maryland – A Baltimore man entered a guilty plea and received a federal sentence, today, for intentionally setting fire to multiple North Baltimore properties. Justin Michael Reeves, 29, pled guilty to malicious destruction of property by fire, in connection with the incidents. After Reeves pled guilty, the Honorable Stephanie A. Gallagher sentenced him to 63 months in prison, followed by 5 years of supervised release. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea and sentence with Special Agent in Charge Charles Doerrer, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Colonel Michael A. Jackson, Superintendent, Maryland State Police (MSP); Commissioner Richard Worley, Baltimore Police Department (BPD); and Chief James W. Wallace, Baltimore City Fire Department (BCFD). According to his guilty plea, on May 10, 2025, Reeves set a fire at a North Baltimore residence. After setting the fire, Reeves returned to the residence at various points to spread the burning materials across the structure and the garage door. An adjacent property’s surveillance camera captured Reeves setting the fire. Additionally, location information from Reeves’ cellphone also shows the phone in the area at the time of the incident. Additionally, in the early morning hours of May 14, Reeves set another fire at the same residence. This time, the fire extended to the property next door before fire personnel extinguished it. Surveillance video from the rear of the residence captured Reeves walking back and forth before and after the fire. Location information from Reeves’ cell phone also shows the phone in the area during the time Reeves is observed on surveillance footage. On May 16, Reeves returned to the rear of the property to take pictures of the fire-damaged residence. Then on May 25, Reeves set a fire at another North Baltimore residence, which was occupied by an individual sleeping in a second-floor bedroom. Surveillance footage captured Reeves on the premises. The captured video shows Reeves walking back and forth near the residence and wearing the same clothing and carrying the same backpack from the May 14 fire. On May 28, BPD officers arrested Reeves and seized his cellphone. A search of Reeves’s phone uncovered internet searches about the fires, property records in the area of the fires, and searches relating to additional fires that occurred in the same area in 2024. U.S. Attorney Hayes commended the ATF, MSP, BPD, and BCFD for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting this federal case. For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md . # # #


title: Baltimore Man Pleads Guilty to Charges in  Connection With Assaulting Federal Law Enforcement Officer

component: Office of the Inspector General

body_text: Baltimore, Maryland – A Baltimore man entered a guilty plea in federal court, today, stemming from an incident in which he assaulted a law enforcement officer while resisting arrest. Demetris White, 44, pled guilty to a superseding information charging him with assaulting, resisting, or impeding federal officers or employees. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Regional Director Jose Ortiz-Diaz, U.S. Federal Protective Service (FPS), Philadelphia, Pennsylvania Office, and Amy Connelly, Special Agent in Charge, U.S. Social Security Administration Office of Inspector General (SSA-OIG), Boston- New York- Philadelphia Field Division. According to his guilty plea, on May 19, 2025, White entered a Baltimore Social Security Administration (SSA) field office to inquire about his SSA disability benefit payments. Some SSA-benefit recipients access their monthly benefit payments via a Direct Express Debit Mastercard. At the time, White was unable to access his benefit payments because he lost his debit card. During his visit, White became upset when an SSA customer-service representative attempted to explain the process to receive a new debit card. He began berating the customer service representative who then pressed a duress button to notify security. Security personnel responded and asked White to leave the building. Then White berated and threatened to physically assault and spit on security personnel before eventually leaving the building. But due to White’s threats, a federal law enforcement officer responded to the scene. The law enforcement officer found White outside of the building, approached him, and attempted to place him under arrest. But White was still irate and physically resisted the law enforcement officer’s attempt to arrest him. In response, the law enforcement officer pointed a taser at White and warned him that he would tase him if he continued resisting. White then allowed the law enforcement officer to place him in handcuffs. After the law enforcement officer, who was standing behind White, handcuffed him, White forcibly backwards headbutted the officer, causing a laceration to his lip, resulting in bleeding and swelling. White is facing up to eight years in federal prison for assaulting, resisting, or impeding certain officers or employees. U.S. Attorney Hayes commended FPS and SSA-OIG for their work in the investigation, along with the Baltimore Police Department, for its valuable assistance. Ms. Hayes also thanked Special Assistant U.S. Attorney Kertisha Dixon who is prosecuting the federal case. For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md . # # #


title: Massachusetts State Representative Charged With Pandemic Loan Fraud and Money Laundering

component: USAO - Massachusetts

body_text: BOSTON – The Massachusetts State Representative for the 16 th Essex District, representing Lawrence and Methuen, was arrested today and charged with fraudulently obtaining over $700,000 in COVID unemployment insurance benefits and small-business loans, and using the proceeds to buy real estate and loan money to clients of his mortgage business, before he was elected to public office. Francisco Paulino, 46, of Methuen, Mass., is charged in an 11-count indictment returned by a federal grand jury in Boston. Paulino is charged with eight counts of wire fraud and three counts of money laundering. Paulino will make an initial appearance in federal court in Boston at 2 p.m. today. According to the indictment, Paulino fraudulently obtained Pandemic Unemployment Assistance (PUA) benefits in 2020-2021 in the name of an unknowing 77-year-old relative. The PUA program, which was created during the COVID pandemic, provided unemployment benefits for people who were ineligible for regular unemployment benefits, including independent contractors. In April 2020, Paulino allegedly submitted an online PUA application to the Massachusetts Department of Unemployment Assistance (DUA) for his relative, in which Paulino falsely claimed that the relative had worked for Paulino’s business, Madison Tax, LLC, in 2019. Paulino allegedly submitted fabricated documents in support of the PUA application and submitted false weekly certifications to the DUA. It is further alleged that Paulino directed the DUA to electronically deposit the PUA benefits into a bank account held solely in Paulino’s name. As a result, between April 2020 and September 2021, the DUA paid over $44,000 in PUA benefits. Paulino allegedly used the money to pay for real estate expenses, loan payments and transfers into his political campaign account. According to the indictment, Paulino also committed fraud in connection with three Economic Injury Disaster Loans (EIDLs). During COVID, the U.S. Small Business Administration (SBA) offered taxpayer-funded EIDLs to eligible small businesses experiencing substantial financial disruptions due to the pandemic. The interest rate on EIDLs was 3.75% and the loan use was limited. A business could only use EIDL proceeds as working capital to alleviate economic injury caused by COVID. According to the charging documents, Paulino incorporated a business called Jackson Enterprise, Inc. as a “fast food restaurant cafe” on Nov. 25, 2019. Jackson Enterprise allegedly had no revenue prior to August 2020. Although Madison Tax filed tax returns with the IRS stating that Jackson Enterprise’s revenues were $0 in 2019 and $116,925 in 2020, Paulino allegedly submitted an EIDL application to the SBA in June 2020 falsely representing that Jackson Enterprise’s revenues for the 12 months ending Jan. 31, 2020 were $426,755. The SBA granted the application and deposited $136,600 in EIDL proceeds into Jackson Enterprise’s bank account in July 2020. Paulino allegedly used $18,000 of the funds toward the purchase of real estate in Lawrence. Paulino also allegedly obtained a $109,200 EIDL for Madison Tax in May 2020, and later asked the SBA for an increase in the loan amount. In June 2021, the SBA increased the Madison Tax EIDL by $292,600, bringing the total loan amount to $401,800. In October 2021, after the SBA deposited the $292,600 into Madison Tax’s bank account, Paulino allegedly transferred $100,000 of the EIDL funds into the bank account of Madison Mortgage, Inc.– another of his businesses, and used the money to help fund a $600,000 mortgage to two individuals for their purchase of a house in Methuen. Then, in December 2021, Paulino allegedly transferred $120,000 of the EIDL funds from his Madison Tax account to his Madison Mortgage account and used the money to help fund a $460,000 mortgage from Madison Mortgage to an LLC for the purchase of a house in Lawrence. It is further alleged that Paulino not only used $220,000 of Madison Tax EIDL funds for an impermissible purpose, but also that he profited by charging 5.5% and 7.94% interest on the loans he made with the EIDL funds and by charging $25,000 in “loan origination fees” to the home purchasers. The indictment further alleges that Paulino obtained a fraudulent EIDL modification for one of his Madison Tax clients. In June 2020, Paulino allegedly recommended that a client apply for an EIDL and told the client that he would handle the paperwork and the client would not need to do anything. It is alleged that the client agreed and Paulino obtained a $104,300 EIDL for the client’s business. Paulino allegedly asked the SBA for an increase to the client’s EIDL without the client’s knowledge and in September 2021, the SBA approved an increase of $243,200. Paulino allegedly told the client that he had obtained more government loan money for the client’s business, that the client should leave the money in the client’s business account and that he was going to propose a business deal for the client. It is further alleged that Paulino later told the client to lend him $200,000 and together they transferred $200,000 from the client’s account to Paulino’s Madison Tax account. Paulino then allegedly used the $200,000 to help fund a $680,000 mortgage to another Madison Mortgage client for the purchase of real property in Lawrence, charging an interest rate of 6.25% and a “loan origination fee” of $17,000. The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley; Tom Demeo, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony D’Esposito, Inspector General, Department of Labor, Office of Inspector General; and Jeffrey S. Shapiro, Inspector General, Office of the Inspector General, Commonwealth of Massachusetts made the announcement today. Assistant U.S. Attorneys Kistina E. Barclay and Christine Wichers of the Public Corruption Unit are prosecuting the case. On March 26, 2026 , United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621). On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division . The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste and abuse within federal benefit programs. The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: Massachusetts Mayor Indicted by Federal Grand Jury for Pandemic Loan Fraud and Money Laundering

body_text: BOSTON – The Mayor of Lawrence, Mass., has been indicted by a federal grand jury in Boston. The 11-count indictment, unsealed today, charges the Mayor with allegedly obtaining over $1.5 million in COVID small-business loans. It is alleged that the money was used to fund his campaign account, pay personal taxes and pay more than $880,000 in high-interest, hard-money mortgages on properties he owned in Lawrence. Brian A. DePena, 61, was indicted on four counts of wire fraud and seven counts of money laundering. DePena was previously charged by criminal complaint and arrested on Aug. 14, 2026 . DePena will appear in federal court for an arraignment at a later date. DePena was elected as Mayor of Lawrence in November 2021 and was reelected in November 2025. He previously served on the Lawrence City Council from 2016 until 2021. According to the charging documents , in 2020 and 2021, DePena applied for Economic Injury Disaster Loans (“EIDL”) for Tenares Tire Services Inc., a tire sales and automotive services business he owned in Lawrence. The interest rate on EIDLs was 3.75% and the loan use was limited. A business could only use EIDL proceeds as working capital to alleviate economic injury caused by the COVID-19 pandemic. DePena allegedly caused Tenares Tire to apply for and obtain an EIDL in the amount of $150,000 in June 2020 and then used the majority of those funds as working capital for the business. According to the charging documents, DePena needed cash by early 2021. His mayoral campaign was struggling to pay bills; he owed the IRS for back taxes; and he owed almost $900,000 to two private, hard money lenders who were charging DePena 12% and 8% interest – significantly more than the EIDL rate of 3.75% – on loans that encumbered various properties DePena owned in Lawrence. In April 2021, DePena allegedly caused a request for an increase of the Tenares Tire EIDL and on July 14, 2021, the SBA approved an increase of the loan by $350,000, bringing the total Tenares Tire EIDL to $500,000. While waiting for the EIDL funds to be released, DePena allegedly texted (originally in Spanish, here translated to English) his accountant and financial advisor, who had been assisting with the Tenares Tire EIDL application and modification: July 22, 2021: Brother, call me, I’m in trouble. I don’t want to pressure you, but I don’t have time to wait for this loan. I’m in your hands. 🙏 July 25, 2021: Brother, I need your help with this loan. I’ve been trying to reach you all week because I haven’t been able to get it resolved. I know I’m bothering you a lot, but I have no other option. Only you can give me what I need. 🙏🙏🙏🙏 July 28, 2021: Brother call me 🙏🙏🙏 The $350,000 in EIDL funds were electronically deposited into the Tenares Tire bank account on Aug. 16, 2021. The pre-deposit balance in the account was $20.23. Shortly thereafter, DePena allegedly paid $85,000 of the EIDL funds to the IRS to pay off personal tax debts, and transferred $120,000 to a personal account and used that money to write checks totaling $90,000 to The Committee to Elect Brian DePena. It is alleged that these checks were deposited in the DePena mayoral campaign account, and characterized as loans to the campaign, in September and October 2021. In October 2021, DePena allegedly caused a request for a second EIDL modification and on Oct. 27, 2021, the SBA approved the modification which increased the loan by $1,154,400 bringing the total Tenares Tire EIDL to $1,654,400. On Nov. 30, 2021, $1,154,188 in EIDL funds were electronically deposited in the Tenares Tire account and on the same day, DePena allegedly transferred the entire amount to one of his personal accounts which had a balance of $1,401. It is alleged that DePena used $42,112.96 of the EIDL funds for his mayoral campaign, writing checks to the campaign for $10,000 and $32,112.96. The first check was deposited into his campaign account on Dec. 2, 2021, when the account had allegedly been overdrawn for approximately 20 days. DePena allegedly used $883,293 of the EIDL funds to pay off his debts to the hard money lenders. On Dec. 9, 2021, DePena bought a $538,109.03 treasurer’s check and used it to pay off one of the loans, and on Dec. 18, 2021, he bought a $345,184.13 treasurer’s check and used it to pay off the other loan. According to the charging documents, as of Aug. 5, 2026, DePena had made only 16 payments on the Tenares Tire EIDL. The outstanding principal balance was approximately $1,654,420. The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley; Tom Demeo, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony D’Esposito, Inspector General, Department of Labor, Office of Inspector General; and Jeffrey S. Shapiro, Inspector General, Office of the Inspector General, Commonwealth of Massachusetts made the announcement today. Assistant U.S. Attorneys Kistina E. Barclay and Christine Wichers of the Public Corruption Unit are prosecuting the case. On March 26, 2026 , United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621). On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division . The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. The details contained in the charging documents are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: Former Guam Police Officer Sentenced to 15 Months in Federal Prison for Drug Trafficking

component: Drug Enforcement Administration (DEA)

body_text: Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Brian Dacanay Awa, age 47, was sentenced on August 25, 2026, in the U.S. District Court of Guam to 15 months imprisonment for two counts of Distribution of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered three years of supervised release and a mandatory $200 special assessment fee. Working with informants and other investigative leads, federal authorities identified former Guam Police Department (GPD) K9 Officer, Brian Dacanay Awa, as a participant in methamphetamine distribution in Guam. Federal agents and GPD developed a confidential informant who reported prior drug purchases from Awa and agreed to participate in controlled operations. On June 24, 2024, under law enforcement supervision, the informant met Awa at a Dededo store, where Awa provided a cigarette pack containing 3.76 grams of methamphetamine with 100% purity. The transaction was recorded on video. A second controlled buy occurred on July 3, 2024, at another location in Dededo. Inside Awa’s vehicle, he produced a red cigarette pack containing 28.1 grams of methamphetamine with 100% purity. “Law enforcement is entrusted with keeping our communities safe and drug-free,” stated United States Attorney Anderson. “I applaud the work of federal agents, in addition to GPD-SIS, in bringing Awa to justice. We will continue to promote accountability in law enforcement at every opportunity.” “Brian Awa abused his position as a law enforcement officer and violated the public trust by trafficking methamphetamine into Guam,” said HSI Honolulu Acting Special Agent in Charge CJ Ammons. “HSI is committed to working with our federal and local partners to stop drug traffickers, protect our communities, and hold accountable those who exploit positions of public trust.” This investigation was conducted by Homeland Security Investigations–Guam Field Office, with the coordinated assistance of the Drug Enforcement Administration, the United States Postal Inspection Service, and the Guam Police Department Special Investigation Section. Assistant United States Attorney Benjamin K. Petersburg prosecuted the case in the District of Guam.


title: Henrico man sentenced to six years in prison for voluminous collection of child sexual abuse material

body_text: RICHMOND, Va. – A Henrico man was sentenced today to six years in prison for receipt of child sexual abuse material (CSAM). According to court documents, over a period of at least 16 months, David Brent Timberlake, 65, requested and received CSAM through a peer-to-peer file-sharing network designed to anonymize users who share files. On Jan. 25, 2023, the FBI searched Timberlake’s residence and seized more than 100 digital devices and pieces of digital media. A forensic review of a portion of the seized devices revealed 52,343 digital files depicting CSAM, including 48,312 still image files and 4,031 video files, of which 634 involved toddlers or infants and 306 involved sadistic or masochistic conduct. Theophani K. Stamos, First Assistant U.S. Attorney for the Eastern District of Virginia, and Ian Kaufmann, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Brian R. Hood prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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.justice.gov/psc . Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:26-cr-26.


title: Hampton drug trafficker sentenced to five years in prison for distributing LSD

component: USAO - Virginia, Eastern

body_text: NEWPORT NEWS, Va. – A Hampton man was sentenced today to five years in prison for distribution of lysergic acid diethylamide (LSD). According to court documents, during the course of a narcotics trafficking investigation, Naval Criminal Investigative Service (NCIS) conducted five controlled purchases of narcotics from Josiah Antonio Travis, 24, between December 2024 and March 2025. On Jan. 8, 2025, Travis sold 200 gel tabs (approximately 5.8 grams) of LSD. During the course of the controlled buys, Travis also sold marijuana, dimethyltryptamine (DMT), and mushrooms containing psilocybin and/or psilocyn. Following the controlled buys, NCIS searched Travis’ residence and recovered, among other things, 543.2 grams of mushrooms, marijuana, four loaded firearms, various ammunition, ammunition magazines, narcotics packaging materials, and a digital scale. Theophani K. Stamos, First Assistant U.S. Attorney for the Eastern District of Virginia, and Steven DiGiantommaso, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorney Peter G. Osyf prosecuted the case. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:25-cr-64.


title: Levittown Man Pleads Guilty to Child Pornography Offenses

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Gary Margerum, 69, of Levittown, Pennsylvania, entered a plea of guilty today before United States District Chief Judge Wendy Beetlestone to one count of distribution and attempted distribution of child pornography and one count of possession of child pornography. The defendant was charged with those offenses by indictment in June of last year. As detailed in court filings and statements, on or about January 2, 2025, the Bucks County District Attorney’s Office received a CyberTip from the National Center for Missing and Exploited Children. The tip concerned a messaging app account, later identified as belonging to defendant Margerum, that had shared child sexual abuse material (“CSAM”), specifically, a sexually explicit image of a prepubescent female. On or about April 4, 2025, Bucks County investigators, along with agents of Homeland Security Investigations (“HSI”), executed a search warrant at the defendant’s residence, with his iPhone among the items seized. During a forensic examination of the phone, law enforcement recovered approximately 187 images that qualify as child pornography. These images depicted prepubescent children, including children as young as infants and toddlers, being sexually abused by adults. The defendant is scheduled to be sentenced on December 17 and faces a maximum possible term of 40 years in prison and up to a lifetime of supervised release, with a mandatory minimum of five years’ imprisonment and five years of supervised release. In addition, he faces mandatory financial penalties and mandatory registration as a sex offender under the Sex Offender Registration and Notification Act (“SORNA”) and Megan’s Law. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit projectsafechildhood.gov . The case was investigated by the Bucks County Detectives and HSI and is being prosecuted by Assistant United States Attorneys Ruth Mandelbaum and Alisa Shver.


title: Bucks County Man Charged With Attempted Child Sexual Exploitation Offenses

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Bo Branstetter, 30, of Levittown, Pennsylvania, was arrested and charged by indictment with attempted use of an interstate commerce facility to entice a minor to engage in sexual conduct and attempted transfer of obscene material to a minor. The defendant appeared in federal court today for an arraignment before U.S. Magistrate Judge Elizabeth L. Toplin and has been ordered detained in federal custody pending trial. The indictment alleges that, from about June 13, 2026, to June 23, 2026, Branstetter used the internet and cellular phone service to knowingly persuade, induce, entice, and coerce a minor to engage in sexual activity for which any person could be charged with a criminal offense, that is, involuntary deviate sexual intercourse with a child and statutory sexual assault. As further alleged, also in June of this year, Branstetter attempted to transfer obscene content to a person he believed to be a minor under 16 years of age. If convicted, the defendant faces a maximum possible sentence of life in prison, with a mandatory minimum term of 10 years’ imprisonment. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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 projectsafechildhood.gov . The case was investigated by FBI Philadelphia’s Fort Washington Resident Agency and the Bensalem Police Department and is being prosecuted by Assistant United States Attorney Mark Sendek. The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.


title: Bryan County Resident Pleads Guilty To Illegally Manufacturing Machinegun Conversion Devices

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Levi Todd St. Clair, age 32, of Calera, Oklahoma, entered a guilty plea to one count of Illegal Manufacture of Firearm, punishable by up to 10 years in prison and a $250,000 fine. The Indictment alleged that from in or about March 2025 to on or about May 2, 2025, St. Clair knowingly and unlawfully manufactured seven AR-15 machinegun conversion devices, each lacking markings or a serial number. During the plea hearing, St. Clair agreed the Government could prove he manufactured these items and failed to register them with the National Firearms Registration and Transfer Record as required by law. The charge arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Choctaw Nation Lighthorse Police. The Honorable Jason A. Robertson, 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. St. Clair will remain on bond with conditions pending sentencing. Assistant U.S. Attorney Lewis M. Reagan represented the United States.


title: U.S. Attorney's Office Welcomes Three Newly Sworn Assistant United States Attorneys

component: USAO - North Carolina, Eastern

body_text: United States Attorney Ellis Boyle administered the oath of office to three Assistant United States Attorneys who will serve in the Eastern District of North Carolina. Covering 44 counties from the Triangle to the coast, the Eastern District handles a broad range of federal criminal and civil matters, partnering closely with local communities and law enforcement agencies. The newly appointed prosecutors will help uphold the rule of law, protect constitutional rights, and strengthen public trust across this diverse and expansive district.


title: Fort Bragg Killer Receives Three Life Sentences in Federal Prison

body_text: NEW BERN, NC – A federal judge sentenced Kenneth Maurice Quick, Jr., age 26, of Laurinburg, to three life sentences and then to an additional 83 years in federal prison for murdering two service members in December 2020. In May 2026, a federal jury convicted Quick on eight charges after a full trial, including first‑degree murder, drug conspiracy, and obstruction of justice. “This cold‑blooded murderer will never see the light of day again,” said U.S. Attorney Ellis Boyle. “Understand this, if you commit depraved violence on federal property: we will hunt you down, we will prosecute you, and we will lock you away for a very long time. No excuses. No escape. When you take lives, we will come for you without hesitation. You get life for taking a life.” Evidence presented at trial established a series of brutal actions. Quick murdered WL, an active‑duty soldier stationed at Fort Bragg, and TD, a former soldier. Leading up to these killings, he agreed to buy cocaine from WL, but he never intended to pay. TD supplied the cocaine to WL and joined him on the trip to deliver the drugs to Quick. The defendant met WL at a trap house in Laurinburg and remorselessly shot him in the back five times. Quick then forced TD to drive to a remote wooded area on Fort Bragg to help dispose of WL’s body. When the truck became stuck in the sand, Quick shot TD in the head and in the back, killing him at the scene. The next day, Quick and his co‑conspirators recovered the truck from woods, drove it to a country road in another county, ransacked, moved, and burned TD’s truck. About two months later, he arranged another drug deal and murdered another unsuspecting victim in cold blood. While cooling in jail awaiting trial, Quick also provided a fellow gang member with the name of a potential witness. That gang member took that informant and murdered the witness. "Quick likely believed he evaded authorities in killing two men and discarding their bodies on Fort Bragg property. He clearly didn't consider the dedication and expertise of FBI Special Agents and the United States Army Criminal Investigation Division, who followed the evidence and put together a meticulous timeline of Quick's crimes. Three life sentences for eight federal crimes say very loudly and clearly, the FBI and our law enforcement partners will make certain violent criminals are always held accountable," said Reid Davis, the FBI Special Agent in Charge in North Carolina. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI and U.S. Army Criminal Investigation Division led the investigations in the case. A copy of this press release is located on our website . Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:24-CR-FL, Case No. 4:24-CR-46-M, and Case No. 4:24-CR-56-BO.


title: Jefferson County Man Admits Sextortion of Arkansas Teen

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A man from Jefferson County, Missouri on Wednesday admitted requesting and receiving child sexual abuse material from a teen and then forcing her to produce more. David Paeper, 20, pleaded guilty in U.S. District Court in St. Louis to one count of receiving child pornography. He admitted meeting a 15-year-old girl on Instagram and requesting and receiving sexually explicit images of her. When she later refused his request for more images, he threatened to send the initial explicit images to her mother unless she produced more. The Rogers (Arkansas) Police Department traced Paeper’s Instagram account and the St. Louis County Police Department found and interviewed Paeper. They also found images of the teen on Paeper’s phone. Paeper is scheduled to be sentenced on December 1. The charge is punishable by five to 20 years in prison. The Rogers (Arkansas) Police Department and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information, please visit www.justice.gov/psc .


title: Franklin County Man Caught with Over One-Half Pound of Meth Sentenced to 140 Months in Prison

body_text: ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man caught with more than one-half pound of methamphetamine to 140 months in prison. Nathan Hollis Price, 49, was caught on May 20, 2024, after investigators with the Franklin County Sheriff's Office learned that he was bringing the meth from St. Charles to the motel in Sullivan where he was staying. They conducted a traffic stop and found three bags containing a total of 245.9 grams of pure meth. They found two scales and a glass pipe in his motel room. The amount of meth was “clearly an amount that he intended to distribute further,” a sentencing memo written by Assistant U.S. Attorney Paul Rebar says. Price pleaded guilty in May in U.S. District Court in St. Louis to one count of possession with the intent to distribute 50 grams or more of actual methamphetamine. The Franklin County Sheriff's Office and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Paul Rebar is prosecuting the case.


title: Former Missouri Pastor Convicted of All Charges Related to Pandemic, Auto, Personal Loan Fraud

component: National Fraud Enforcement Division

body_text: ST. LOUIS – A jury in U.S. District Court in St. Louis on Wednesday convicted the former visiting pastor of a Missouri church of all 20 of the counts that he faced related to his orchestration of a $1.2 million pandemic loan fraud scheme as well as a more than $600,000 auto and personal loan fraud scheme. After jurors deliberated for about an hour, they found Kenneth C. Sparks III, 56, guilty of one count of conspiracy to commit wire fraud, six counts of wire fraud, three counts of aggravated identity theft and 10 counts of money laundering. The trial started Monday. Evidence and testimony showed that Sparks was invited to Faith Walk Ministry in Paris, Missouri, to preach for three days. He stayed three years, all the while using the church, its employees and parishioners to launch a “full-time fraud operation,” Assistant U.S. Attorney Derek Wiseman told jurors in closing arguments. Sparks claimed to be a prophet and an apostle of God, whose word could not be questioned. “Kenneth Sparks impersonated God himself in order to steal millions of dollars in public funds during the worst days of the pandemic,” Wiseman said. Sparks first fraudulently obtained an Economic Injury Disaster Loan for himself shortly after the pandemic hit. He then “exploited the faith of his congregation” by asking and receiving for parishioners’ personal and bank account information and using that to apply for additional loans, Wiseman said. He also directed them to open accounts at a credit union to receive the money and had them sign blank checks. Sparks told parishioners and church employees that he would use the information to fix their credit and/or obtain grants to build a megachurch, evidence and testimony showed. About 40 fraudulent EIDL and Paycheck Protection Program loans would eventually be obtained. In testimony Wednesday, IRS Criminal Investigation Special Agent Aaron Joifrita said $1.2 million in pandemic loans were obtained in the name of parishioners and church employees. Loan applications contained numerous falsehoods. The applications were filled out by church employees, with the help of two other Sparks’ co-conspirators from outside the church who supplied false tax and employment documents. Parishioners were also supplied with “scripts” in case they were questioned by bank officials about the loans. Just over $1 million went to Sparks, who wrote $313,000 in checks to himself and obtained $172,000 via cash withdrawals or advances in addition to spending $168,000 at luxury retailers, $127,000 on real estate and $47,000 on jewelry, including a diamond-studded Rolex watch, evidence showed. Sparks also used many of the same methods to direct a scheme that took out $685,000 in personal and auto loans in his name and the names of others. Sparks is scheduled to be sentenced on December 1. Ten other defendants have either pleaded guilty or accepted responsibility in the case. The U.S. Postal Inspection Service and Internal Revenue Service Criminal Investigation investigated the case. Assistant U.S. Attorneys Derek Wiseman and Karin Schute are prosecuting the case. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.


title: Brentwood Felon Admits Possessing Firearm

body_text: ST. LOUIS – A convicted felon on Wednesday admitted possessing a firearm that was first brought to authorities’ attention during a domestic disturbance. Matthew Orasco, 46, pleaded guilty to one count of being a felon in possession of a firearm. On Aug. 17, 2025, Brentwood Police Department officers responded to reports of a domestic disturbance. Upon arrival at Orasco’s home, they saw that his girlfriend had bruises under her eyes, a cut lip that had been stitched up, swelling on the side of her head and a red eye. She said that Orasco had assaulted her. Officers then learned that Orasco, a convicted felon, was keeping a handgun at a neighbor’s house. Officers found the .357 Magnum revolver and ammunition and learned that Orasco would ask for the pistol and then return it to the neighbor for safekeeping. Orasco is scheduled to be sentenced on December 2. The charge carries a penalty of up to 15 years in prison. The Brentwood Police Department and the FBI investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.


title: Mexican Illegal Alien Indicted for Illegal Re-Entry of Removed Alien

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – JOSE DE JESUS NIEVES-Juarez (“NIEVES-JUAREZ”) , age 32, a native of Mexico, was indicted on August 21, 2026, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney David I. Courcelle. According to the indictment, the defendant was found in the United States on August 14, 2026, having reentered the United States, without authorization from the Attorney General of the United States, after being previously deported on February 25, 2019. NIEVES-JUAREZ faces up to two years imprisonment, a fine of up to $250,000, up to one year of supervised release, and a mandatory special assessment fee of $100.00 for re-entry of a removed alien. U.S. Attorney Courcelle reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. U.S. Attorney Courcelle praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.


title: Honduran Illegal Alien Indicted for Illegal Re-Entry of Removed Alien

body_text: NEW ORLEANS , LOUISIANA – SANTOS EMILIO GALEANO-MUNOZ , a/k/a “Juan Camacho-Grageda,” a/k/a “Juan Carlos Munoz-Galeana,” a/k/a “Juan Munoz-Galeana,” a/k/a “Hector Borrego” ( "GALEANO-MUNOZ" ) age 48, a native of Honduras, was indicted on August 21, 2026, for illegal re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney David I. Courcelle. According to the indictment, the defendant was found in the United States on August 18, 2026, having reentered the United States, without authorization from the Attorney General of the United States, after being previously deported on January 7, 2015. GALEANO-MUNOZ faces up to two years imprisonment, a fine of up to $250,000, up to one year of supervised release, and a mandatory special assessment fee of $100.00 for re-entry of a removed alien. U.S. Attorney Courcelle reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. U.S. Attorney Courcelle praised the work of the U.S. Border Patrol in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.


title: United States Files Complaint Against Trinity Public Utilities District for Allegedly Igniting a Wildfire That Burned Hundreds of Acres in Shasta-Trinity National Forest

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — The United States filed a lawsuit against the Trinity Public Utilities District alleging that its equipment sparked the Hobo Fire — a wildfire that burned approximately 450 acres in the Shasta-Trinity National Forest, U.S. Attorney Eric Grant announced today. According to the complaint, the fire began on Aug. 31, 2020, when electrical equipment owned, maintained, and operated by Trinity Public Utilities District came into contact with nearby vegetation, igniting the surrounding area. The wildfire spread through the forest, resulting in more than $2.3 million in fire suppression costs. The lawsuit alleges that Trinity Public Utilities District failed to take measures to prevent its power lines and related equipment from triggering a wildfire. These failures include not adequately inspecting its electrical infrastructure, not removing or trimming hazardous trees, and not maintaining appropriate vegetation clearance from its electrical infrastructure, among other failures. The United States also asserts that Trinity Public Utilities District breached the terms of its special use permit, including a strict liability provision for up to $1 million per occurrence, with any liability for injury, loss or damage in excess of that maximum to be determined by the laws governing negligence. This matter is being handled by Assistant U.S. Attorney Tara Amin.


title: Aryan Brotherhood Associate Convicted of Two Murders

body_text: SACRAMENTO, Calif. — An associate of the prison gang Aryan Brotherhood was convicted today of executing two men in Lomita on orders given by an Aryan Brotherhood member incarcerated in Kern Valley State Prison, in Kern County. “This case lays bare the ruthless reach of the Aryan Brotherhood and the violence its members and associates are willing to inflict,” said U.S. Attorney Eric Grant. “Justin Gray executed two men at point‑blank range because an incarcerated gang member ordered it. Our office remains committed to dismantling violent prison gangs and protecting our communities from their deadly influence.” “This verdict reflects the serious problem gang violence represents, even from people doing lengthy prison sentences,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Department will continue to focus its resources on holding gang members accountable, even if they are already behind bars. Clement, who ordered these executions and has been sentenced to life, and now Gray, who carried them out, will pay a severe price for taking life thanks to the good work of the investigators and prosecutors as well as the careful attention of the jury.” “These murders are a stark reminder that criminal organizations can direct violence from behind prison walls,” said Director Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF and our law enforcement partners are committed to dismantling these networks and holding accountable the individuals responsible for these senseless murders.” According to court documents and evidence presented at trial, on Oct. 4, 2020, Justin Gray, 40, of San Pedro, California, executed two men on the orders of Aryan Brotherhood Brother Francis Clement, who was serving a prison sentence in Kern Valley State Prison. Justin Gray lured the victims from San Diego to Lomita where, with the aid of another Aryan Brotherhood associate, he shot both victims in the head. The order to kill had been given over “disrespect” one of the victims had shown to the Aryan Brotherhood. Gray is a member of Baby Blue Wrecking Crew, a white-only gang that takes orders from and works under the Aryan Brotherhood. Gray was convicted of two counts of committing murder in aid of racketeering. Gray is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Nov. 23, 2026. Gray faces a mandatory life sentence. This trial was part of a larger investigation charging Gray and 20 other defendants with a variety of criminal offenses, including RICO conspiracy, VICAR murder, and narcotics offenses, all related to their criminal activities as members and associates of the Aryan Brotherhood. The following individuals charged in the investigation were convicted at trial on Feb. 18, 2025. John Stinson, 72, was found guilty of one count of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity. Francis Clement, 60, was found guilty of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and five counts of murder in aid of racketeering for the murders of the two victims and three other individuals he also ordered to be murdered as part of the racketeering activity of the Aryan Brotherhood. Kenneth Johnson, 65, was found guilty of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and two counts of murder in aid of racketeering for the murders of the two victims. Additional individuals charged in the case and still pending trial include the following: Jayson Weaver, 49, scheduled for trial in September 2027. Waylon Pitchford, 48, scheduled for trial in September 2027. Andrew Collins, 42, scheduled for trial in September 2027. Alexander Van Beusekom, 41, scheduled for trial in September 2027. Evan Perkins, 41, scheduled for trial in September 2027. This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Office of Correctional Safety (CDCR), United States Marshals Service, Los Angeles County Sheriff’s Office, Pomona Police Department, Torrance Police Department, San Diego Police Department, San Diego County Sheriff’s Office, Los Angeles County District Attorney’s Office, Kern County District Attorney’s Office, the California Department of Justice and the California Highway Patrol Special Operations Unit, the FBI, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno County District Attorney’s Office, the Clovis Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney James R. Conolly for the Eastern District of California and Trial Attorney Amanda J. Kotula of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.


title: Maryland Man Sentenced to 198 Months in 2023 Violent Kidnapping and Rape of Former Partner

body_text: WASHINGTON – Brandon Tyriq White, 31, of Maryland, was sentenced today in U.S. District Court to 198-months in federal prison in connection with the violent kidnapping, choking, and sexual assault of his former girlfriend, announced U.S. Attorney Jeanine Ferris Pirro. “Brandon White’s victim fought to escape her attacker twice, and twice White caught her, bound her, and terrorized her,” said U.S. Attorney Pirro. “Domestic violence will not be tolerated. White is now a convicted felon and will spend more than 16 years in federal prison.” White pleaded guilty on Feb. 18, 2025, to a charge of kidnapping. In addition to the 198-month prison term, U.S. District Court Judge Amit P. Mehta ordered White to serve five years of supervised release and to register as a sex offender. Federal prosecutors had requested a 210-month prison sentence. According to court documents, White was in a romantic relationship with a woman with whom he lived in October and November 2023. The woman left White without telling him in late November. Following her departure, she terminated the relationship. She left some of her belongings at White’s home. The next month, the woman sought to recover her belongings and arranged to meet White at a restaurant in Prince George’s County. They sat at a table and ordered drinks and food. The woman received a phone call and stepped away. She returned to the table to find the food was gone, the check had been paid, and White had left the restaurant. White approached the woman in his car as she walked through the restaurant parking lot. The two argued about her taking the phone call. The dispute intensified and White forced the woman against her will into the back of his car. The woman tried to escape. White bound her with zip-ties. Then he drove her from Maryland to a residence in Southeast D.C. When they arrived in the District, the woman tried to escape by running away and crying for help. White caught her on the front steps of the residence and choked her. He released her when she promised not to scream or run. White led the woman to a bedroom on the second floor. He placed a firearm on a bedside table and sexually assaulted her. The woman convinced White to drive her back to Maryland. On the way, they stopped at a convenience store. The woman attempted to flee. A surveillance camera captured images of White trying to force her back into his car. She slipped from his grasp and ran. White caught her, beat her, and broke her front tooth. Ultimately the woman escaped. White drove away. The woman later was treated at local hospital. Police arrested White on Dec. 23, 2023, in Charles County, Maryland, and recovered a Glock semi-automatic pistol from the hotel where he was staying. The gun was registered to White in the state of Maryland, but White had no valid license or registration to carry the gun within the District. This case was investigated by the FBI Washington Field Office. It was prosecuted by Assistant U.S. Attorney Janani Iyengary. 24cr39 U.S. Attorney’s Office for the District of Columbia Follow us on X , Instagram , and YouTube Or at https://www.justice.gov/usao-dc


title: D.C. Man Pleads Guilty in Armed Robbery of Tire Shop

body_text: WASHINGTON – Angelo Harris, 39, of the District of Columbia, pleaded guilty in U.S. District Court today in connection with the armed robbery of a Northeast D.C. tire shop on April 29, 2025, announced U.S. Attorney Jeanine Ferris Pirro. Harris pleaded guilty before Judge Ana C. Reyes to one count of interference with interstate commerce by robbery (Hobbs Act Robbery). Judge Reyes scheduled sentencing for Dec. 1, 2026. According to court documents, Harris, armed with a black handgun, and a co-conspirator, armed with a rifle, arrived at Mac’s Tire Shop on the 400 block of Florida Avenue NE, and brandished their weapons at an employee of the store. Using the threat of the firearms, they forced the employee out of his chair in the garage area of the establishment into the office in order to complete the robbery. The two forcibly took cash and other items from the shop before fleeing the scene. This case was investigated by the Metropolitan Police Department and the Federal Bureau of Investigation-Washington Field Office. It is being prosecuted by Assistant U.S. Attorneys Mark Levy and Caelainn Carney. Surveillance photo taken the day of the tire store robbery. 25cr185 Follow us on X , Instagram , and YouTube Or at https://www.justice.gov/usao-dc


title: Bridgeport and Ansonia Resident Charged with Narcotics Distribution and Gun Possession Offenses

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, and Jarod Forget, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that IRVIN JAVIER VILLEGAS, 49, of Bridgeport and Ansonia, has been charged by indictment with narcotics distribution and firearm possession offenses. As alleged in court documents and statements made in court, in April 2026, law enforcement made two controlled purchases of heroin and fentanyl from Villegas. Villegas was arrested on related state charges on April 27, 2026. On that date, a court-authorized search of his Ansonia residence on Silver Hill Road revealed approximately 1.2 kilograms of cocaine, approximately 400 grams of heroin, and a .40 caliber Glock 23 pistol. It is alleged that Villegas’ criminal history includes state felony convictions for drug, robbery, weapon, and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce. On August 12, 2026, a grand jury in New Haven returned and indictment charging Villegas with possession with intent to distribute 100 grams or more of heroin and 500 grams or more of cocaine, an offense that, based on Villegas’ previous conviction for a serious violent felony, carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive sentence of at least five years; and unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years. On August 24, 2026, Villegas appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and pleaded not guilty to the charges in the indictment. He is released on a $250,000 bond pending trial. U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Drug Enforcement Administration, the Bridgeport Police Department, and the Ansonia Police Department. This case is being prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.


title: Illegal Alien Pleads Guilty To Assaulting Federal Officer

component: USAO - Colorado

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Silvia Paola Sanchez-Hurtado, 23, of Nicaragua, pleaded guilty to one count of assaulting a federal officer. According to the plea agreement, on March 11, officers with Immigration and Customs Enforcement encountered Sanchez-Hurtado in Fort Collins, Colorado, and attempted to arrest her pursuant to a warrant on immigration violations. When officers attempted to place handcuffs on Sanchez-Hurtado, she resisted and bit one of the officers on the neck. Sanchez-Hurtado will be sentenced later this year. United States District Judge Gordon P. Gallagher presided over the hearing. Homeland Security Investigations handled the investigation. Assistant United States Attorney Elizabeth Tonkin handled the prosecution. Case Number: 26-cr-095-GPG


title: The Villages Health System LLC Agrees to $541.5M Settlement to Resolve False Claims Act Allegations

component: Civil Division

body_text: The Villages Health System LLC (TVH), a healthcare provider group headquartered in The Villages, Florida, has agreed to a $541.5 million settlement to resolve self-disclosed allegations that it violated the False Claims Act by causing the submission of false diagnosis codes in order to increase payments that they received from the Medicare Advantage program. “The Medicare Advantage program relies on accurate diagnoses to protect the federal fisc,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement reflects that we will hold accountable entities that inflate payments through invalid diagnoses; at the same time, we will continue to credit organizations that disclose wrongdoing, take appropriate remedial actions, and fully cooperate with the government’s investigation.” “The Villages Health System LLC knowingly submitted false diagnosis codes to increase their payments from the Medicare Advantage program and increase their profits,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “Our Office will continue protecting the integrity of the Medicare program and hold those who seek to defraud federal health care programs accountable.” “The accuracy of diagnosis information submitted to Medicare Advantage is vital to protecting taxpayer dollars,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This case underscores that entities will be held accountable when they submit unsupported information that inflates payments. The provider’s use of the OIG Self Disclosure Protocol and its cooperation were important factors in resolving this matter, and the protocol remains available for managed care entities and other providers that bill managed care entities that seek to disclose potential liability.” Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may opt out of traditional Medicare and enroll in private health plans offered by insurance companies known as Medicare Advantage Organizations, or MAOs. The Centers for Medicare & Medicaid Services (CMS) pays the MAOs a fixed monthly amount for each Medicare beneficiary enrolled in their plans. CMS adjusts these monthly payments to account for various “risk” factors that affect expected health expenditures for the beneficiary. In general, CMS pays MAOs more for sicker beneficiaries expected to incur higher healthcare costs and less for healthier beneficiaries expected to incur lower costs. To make these “risk adjustments,” CMS collects medical diagnosis codes from the MAOs. The diagnoses must be supported by the medical record from a face-to-face visit between a patient and a provider, and for outpatient visits, must have required or affected patient care, treatment, or management at the visit. Providers generally submit diagnosis codes to MAOs that are, in turn, submitted to CMS to increase payments. At times, MAOs agree to pay provider groups like TVH a set percentage of what the MAO receives from CMS. Under such agreements, the provider groups receive more reimbursement for sicker beneficiaries expected to incur higher healthcare costs and less reimbursement for healthier beneficiaries expected to incur lower costs. On Dec. 27, 2024, TVH made a submission pursuant to the HHS-OIG’s Health Care Fraud Self-Disclosure Protocol disclosing that it had submitted invalid diagnosis codes to multiple MAOs for certain beneficiaries enrolled in their plans and that these diagnosis codes increased the capitated payments made by CMS to the MAOs under the MA program. The settlement announced today resolves allegations that, from 2020 through 2024, TVH violated the False Claims Act, 31 U.S.C. §§ 2729-3733, by knowingly submitting false diagnosis codes to MAOs and causing MAOs to submit false diagnosis codes to the MA program resulting in inflated payments from CMS to MAOs. The diagnosis codes were invalid because they did not have adequate support in the patient’s medical record or were based on amendments to the medical record that were not initiated by the rendering provider and were not timely or were not approved by the rendering provider. TVH’s knowing submission of the unsupported and/or undocumented codes identified above caused CMS to make inflated payments to the MAOs, which inflated the MAOs’ payments to TVH. In connection with the settlement, the United States acknowledged that TVH took a number of significant steps entitling them to credit for cooperating with the government. TVH promptly took remedial actions and self-disclosed the invalid diagnoses to HHS-OIG. TVH also provided the government with a detailed and thorough written disclosure and cooperated with the government throughout its investigation. On July 3, 2025, TVH filed a Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Middle District of Florida. In re Villages Health System, LLC , Case No. 6:25-bk-04156-LVV (Bankr. M.D. Fla.). The bankruptcy court approved the settlement announced today on Aug. 25. TVH submitted the invalid diagnosis codes covered by the settlement announced today to three MAOs: Humana Inc., UnitedHealthcare (UnitedHealthcare Insurance Company, United Healthcare of Florida Inc., Preferred Care Partners Inc., and Care Improvement Plus South Central Insurance Company, Inc.), and GuideWell Mutual Holding Corporation (Blue Cross and Blue Shield of Florida Inc. and Florida Blue Medicare Inc.). Pursuant to their contracts with CMS, the MAOs are returning overpayments they received as a result of TVH’s conduct by deleting invalid codes and/or by entering into agreements with the Department of Justice and CMS to return the funds. This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG. The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477). The matter was handled by Fraud Section Attorneys Edward Crooke and Martha Glover and Assistant U.S. Attorney Christopher Emden for the Middle District of Florida. The claims resolved by the settlement are allegations only and there has been no determination of liability. Note : Read the agreements with United here and Florida Blue here .


title: KKR Agrees to Pay Record $250M Penalty for Serial Violations of Federal Premerger Review Law

component: Antitrust Division

body_text: The Justice Department filed a proposed settlement today requiring KKR & Co. GP LLC to pay a civil penalty of $250,000,000 to resolve allegations that KKR repeatedly flouted the premerger antitrust review process. The United States’ Complaint alleged KKR evaded antitrust scrutiny for at least 16 separate transactions by failing to comply with the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). “This historic $250 million civil penalty – more than 20 times any prior HSR penalty obtained by the DOJ – sends a powerful message: the Department is committed to vigorous enforcement of the Act,” said Associate Attorney General Stanley E. Woodward Jr. “The Act’s requirements protect competition by giving the Justice Department an opportunity to investigate potentially unlawful transactions. Companies that disregard their legal obligations will face serious consequences.” The HSR Act requires parties to a merger, acquisition, or other transaction above a certain size to submit a premerger filing to the Department of Justice’s Antitrust Division and the Federal Trade Commission to facilitate the agencies’ enforcement of Section 7 of the Clayton Act, which prohibits mergers and acquisitions that threaten to harm competition. As a sophisticated private equity firm in the business of buying and selling companies, KKR is familiar with the HSR Act and its requirements. Since 2021, KKR was required to make more than 100 premerger filings under the HSR Act. The Division’s Complaint alleged that in 2021-2022, KKR failed to make complete and accurate premerger filings for at least 16 transactions. Specifically, KKR violated the HSR Act by altering documents in HSR filings for at least eight of those transactions, failing to make any HSR filing for at least two of those transactions, and systematically omitting required documents in HSR filings for at least 10 of those transactions. The HSR Act authorizes civil penalties for violations of the Act at more than $50,000 per day per violation. The proposed $250 million penalty is the largest civil penalty ever assessed for violating the HSR Act. KKR is a global investment firm headquartered in New York, New York. It is one of the world’s largest investment firms with over $744 billion in total assets under management. Note : See the Proposed Final Judgment here , the Stipulation and Order here , the Explanation of Procedures here , and the Competitive Impact Statement here .