title: Chester County Woman Who Served as Money Mule for Foreign Scammers Pleads Guilty to 13 Counts of Fraud

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Emily Zawacki, 65, of Coatesville, Pennsylvania, entered a plea of guilty today before United States District Judge Nitza I. Quiñones Alejandro to nine counts of wire fraud and four counts of mail fraud, arising from her role as a money mule who helped foreign scammers launder nearly $2 million in proceeds from romance scams and business email compromise schemes. The defendant was charged by indictment in January. As detailed in court filings and admitted to by the defendant, for years, Zawacki received money from people and businesses, none of whom she knew, via wire transfer into her bank accounts, or receipt of checks, cashiers’ checks, or cash that was mailed or shipped to her home. The defendant received the funds at the direction of a man known to her as “David Thomas,” whom she had never met, and was told ahead of time by him when she could expect funds to be wire transferred or mailed to her. Zawacki checked her balance to determine that the wire transfers had occurred, or deposited the checks or cash into her bank account. She then sent the funds to whatever account “David Thomas” directed, by whatever method he directed. She normally converted the funds to cryptocurrency, at his direction. To assist the schemers by receiving victim funds and transferring them, during the indictment period, the defendant used at least 20 accounts at 14 financial institutions, in her own name and in the name of her shell company, “DEmilyEnterprises.” Banks repeatedly closed Zawacki’s accounts due to suspected fraud, and some of the banks told her why they were closing her accounts. Even after being warned twice by federal agents — in October 2022 and March 2023 — that she was helping scammers to defraud other people and could be prosecuted if she continued her money mule activities, the defendant nevertheless continued in that role. Zawacki’s knowing participation from October 2022 until July 2025, the period charged in the indictment, caused individual victims and business victims a loss totaling approximately $1,916,461.29. The defendant is scheduled to be sentenced on December 1 and faces a maximum possible sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 for each of the 13 charges on which she was convicted. This case was investigated by FBI Philadelphia’s Newtown Square Resident Agency, the U.S. Postal Inspection Service, and Homeland Security Investigations and is being prosecuted by Assistant United States Attorneys Mary E. Crawley and S. Chandler Harris.


title: Illegal Alien Pleads Guilty To Unlawful Reentry

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that OSNI AYALA AVELAR, a/k/a Hosni Hernandez, a/k/a Hosni Ayala Avelar, a/k/a Hosni Aldair Hernandez-Avelar, a/k/a Hosni A. Ayala, a/k/a Osni Aldair Ayala-Avelar, a/k/a Osni Ayala, a/k/a Hosni Hernandez-Avelor, a/k/a Hosni Hernandez-Avelar, age 35, a Salvadoran national unlawfully present in Pittsburg County, Oklahoma, pleaded guilty to one count of Unlawful Reentry of Removed Alien, punishable by a term of imprisonment of not more than two years, and a fine of not more than $250,000.00. The charge arose from an investigation by the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Division. The Indictment alleged that on June 12, 2026, Avelar, an alien, was found in the United States without obtaining the express consent of the Secretary of Homeland Security to reapply for admission to the United States after having been previously removed on July 26, 2017, January 28, 2011, and May 26, 2009. This case is part of Operation Take Back America , a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. 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. Avelar will remain in the custody of the United States Marshals Service pending sentencing. Assistant U.S. Attorney Kristin Knutson represented the United States.


title: Queens Accountant Indicted for Multiple Real Estate Investment Fraud Schemes and Federal Bankruptcy Fraud

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Central Islip, an indictment was unsealed charging Alberto Gomez, an accountant with a practice in Elmhurst, New York, with wire fraud and bankruptcy fraud in connection with multiple real estate investment fraud schemes. Those schemes included soliciting and obtaining investments for the purchase of property he purported to own but did not, and for investments of more than 100% ownership interest in properties across Long Island, resulting in losses to over a dozen victims in excess of $3 million. Gomez then fraudulently filed for bankruptcy in the United States Bankruptcy Court for the Eastern District of New York in an attempt to discharge his debts. Gomez was arrested this morning in Boca Raton, Florida, and will be arraigned in the Eastern District of New York at a later date. Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the arrest and charges. “As alleged in the indictment, Gomez brazenly stole millions of dollars from over a dozen investors, some of whom staked their life’s savings on his lies, and then he shamelessly declared bankruptcy, doubling down by lying to the court as well,” stated United States Attorney Nocella. “Our Office will vigorously prosecute serial fraudsters like Gomez.” Mr. Nocella expressed his appreciation to the FBI Miami Office/West Palm Beach Resident Agency for their assistance with today’s arrest. “Alberto Gomez allegedly orchestrated multiple real estate investment fraud schemes by misrepresenting property ownership, soliciting investments for properties he did not control, and collecting funds exceeding the value of real-estate on Long Island. These schemes caused more than $3 million in losses to over a dozen victims. The FBI will continue working alongside our partners at the U.S. Attorney's Office to pursue those who defraud investors and abuse the integrity of our financial systems,” stated FBI Assistant Director in Charge Barnacle. As set forth in the indictment, from approximately April 2021 through November 2024, Gomez, who operated an accounting practice in Elmhurst, solicited real estate investors to purchase, in whole or in part, various properties in New York. Gomez promised exclusive ownership or partnership in these properties, or sought funding for renovations and capital improvements necessary to flip the properties for profit. One such property was located in Mount Vernon, and was the sole asset of a domestic limited liability company for which Gomez had filed Articles of Organization, but in which he himself had no ownership or managerial interest. Nevertheless, Gomez negotiated and executed ownership, purchase and partnership agreements with multiple investors, resulting in the effective sale of 266% of the ownership interest in that property. Approximately one year later, Gomez filed for bankruptcy in an attempt to discharge the debts he owed to these investors. In that filing, he falsely concealed his largest creditor and led the bankruptcy Trustee to believe that he owned the domestic limited liability company and its property. Gomez similarly solicited investors, many of whom were elderly, in properties across Long Island. After executing multiple fraudulent joint venture or partnership agreements, Gomez sold 125% ownership interest in a property located in Mill Neck, and 130% ownership interest in a property located in East Hampton. Gomez also solicited investments in properties located in Glen Cove, Elmont and Bayville with promises to rehabilitate the properties and thereby garner higher resale value. No renovations or improvements were done to these properties; rather, Gomez used the investors’ funds to pay personal expenses and to pay back other investors. The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty. If convicted, Gomez faces up to 20 years’ imprisonment on each of the four wire fraud counts, and up to five years’ imprisonment on the bankruptcy fraud count. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is focused on investigating and prosecuting those who commit fraud against the American people. In June 2019, the Attorney General announced the establishment of the Transnational Elder Fraud Strike Force . The Eastern District of New York was one of six U.S. Attorneys’ Offices to be selected to be a part of this joint law enforcement effort that brings together the resources and expertise of the Department of Justice’s Consumer Protection Branch, the FBI, the U.S. Postal Inspection Service, and other organizations. If you or someone you know is a victim of elder fraud, please call the Department of Justice’s National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Charles P. Kelly is in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder and Victim Witness Specialist Stephanie Marroquin. The Defendant : ALBERTO GOMEZ (also known as “Alberto L. Gomez”) Age: 48 Boca Raton, Florida E.D.N.Y. Docket No. 26-227 (JMA)


title: Pair Accused of Shooting at St. Louis Police, ATF

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

body_text: ST. LOUIS – Two men have been accused of shooting at St. Louis Metropolitan police officers and ATF agents last month. Justin R. Price, 19, and Alexavier Bishop, 19, both of Florissant, were charged by complaint in U.S. District Court in St. Louis Thursday with aiding and abetting the assault of federal agents and aiding and abetting the discharge of a firearm in furtherance of a crime of violence. Price appeared in court Friday. Bishop is in custody. The officers and agents were conducting a traffic stop at Oriole and Thekla Avenues in St. Louis on July 28 when just after 9 p.m. a Ford Fusion stopped about one block away and someone fired 12 shots with an automatic weapon. Police pursued the Fusion, which was abandoned in the 1500 block of Sells Avenue. An affidavit filed in support of the complaint says that Bishop, Price and one other person were in the Fusion but escaped, the affidavit says. About 90 minutes before the shooting, Price and Bishop were spotted pulling on the door handles of parked vehicles in the 1700 block of McLaran Avenue, about one mile away, and appeared to be armed, the affidavit says. “It is a miracle that the police officers, ATF agents and bystanders were not wounded in this incident,” said U.S. Attorney Thomas C. Albus. “You can be assured that we are treating this assault with the utmost seriousness. We are grateful for the hard work of investigators and the assistance of the public, and we hope that the public will continue to help us in this ongoing investigation.” “The fact that no one was struck by the 12 rounds fired at St. Louis police officers and ATF agents that night was extraordinarily fortunate, but it does not diminish the seriousness of this alleged attack,” said ATF Kansas City Field Division Special Agent in Charge Bernard Hansen. “This case reflects the determined work of state, local and federal partners, along with community members who came forward to help. We are especially grateful for SLMPD’s investigative work and for the diligence of the U.S. Attorney’s Office in reviewing the evidence and securing these charges as the investigation continues.” “An attack on law enforcement is an attack on the people working every day to keep our neighborhoods safe. These arrests demonstrate what is possible when local, state and federal law enforcement work together, supported by a community willing to come forward and help, with a shared commitment to accountability,” said St. Louis Metropolitan Police Department Chief Robert J. Tracy. “I am grateful to the many law enforcement partners involved in this investigation, along with our nationally recognized SLMPD Crime Laboratory, for working relentlessly to identify those allegedly responsible and move this case forward.” Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Louis Metropolitan Police Department, the Drug Enforcement Administration, the FBI, the St. Louis County Police Department, the Alton Police Department and the St. Louis Circuit Attorney’s Office were involved in the investigation. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.


title: Man Admits Setting Fires at St. Louis County Hotel

body_text: ST. LOUIS – A Florissant man on Monday admitted setting fires in a hotel near Ferguson, Missouri in 2025. Brandon Dallas Smith, 40, admitted purchasing a cup of gasoline from a convenience store at 2:26 a.m. on March 26, 2025, and then using that gas to ignite several fires at the hotel. Two of the fires were ignited outside of hotel room doors. Hotel guests put out the fires before the fire department arrived, but the hotel was damaged. Smith pleaded guilty in U.S. District Court in St. Louis to one count of use of a facility of interstate commerce with intent to commit a crime of violence in furtherance of arson. He is scheduled to be sentenced on November 18. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Louis County Police Department and the St. Louis County Bomb and Arson Squad investigated the case. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.


title: Illinois Man Accused of Sex Trafficking of Woman Who Later Fatally Overdosed

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A man from Sparta, Illinois has been accused of promoting and facilitating the prostitution of a woman found dead of an overdose in 2025. Jared Anders, 30, was indicted in U.S. District Court in St. Louis on July 22 on three felonies: sex trafficking, use of interstate commerce with intent to distribute prostitution and use of interstate facilities to promote prostitution. He appeared in court Friday and pleaded not guilty. The indictment alleges that Anders benefited financially from the prostitution of the victim between Feb. 1, 2025, and May 22, 2025. A motion seeking to have Anders held in jail until trial says that the investigation began on May 22, 2025, when the victim was found dead of an overdose in a hotel in Edmundson, Missouri, near St. Louis Lambert International Airport. The victim’s picture had been posted on multiple online prostitution sites, the motion says, and she and Anders had been communicating about her prostitution activities and the drugs that she said she needed to keep working as a prostitute. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The Edmundson Police Department and the U.S. Marshals Service investigated the case. Assistant U.S. Attorney Jillian Anderson 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. For more information, please visit www.justice.gov/psc .


title: Former Missouri Police Officer Admits Sexually Abusing 18 Detainees

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A former North County Police Cooperative officer on Monday admitted sexually assaulting 18 men after detaining or arresting them. Marcellis Blackwell, 36, of St. Louis, pleaded guilty in U.S. District Court in St. Louis to 18 counts of deprivation of rights under color of law, namely the right to bodily integrity. All of the counts involved abusive sexual contact and fifteen involved the kidnapping of the victims. As part of his plea agreement, Blackwell admitted that between Nov. 8, 2022, and June 5, 2023, while working as an officer with the North County Police Cooperative, Blackwell sexually assaulted 18 men. The assaults typically followed traffic stops or arrests. In one case, Blackwell detained two men after a traffic accident, groping one in the back seat of his police vehicle before taking his other victim to a remote location. Sixteen of his victims were handcuffed at the time. Fifteen were taken to a remote location, including a high school and the back parking lot of Blackwell’s department, after he deactivated his body-worn camera. On 13 occasions Blackwell falsified reports by claiming that his body-worn camera had been active during his entire interaction with the arrestees. The investigation began on June 4, 2023, when one of Blackwell’s victims from the previous day contacted the North County Police Cooperative. As more victims came forward, the FBI took over the investigation. Blackwell is scheduled to be sentenced on November 24. The U.S. Attorney’s office will request a sentence of 30 years in prison. Assistant U.S. Attorneys Christine Krug and Jennifer Szczucinski are prosecuting the case.


title: New Orleans Man Indicted for Methamphetamine Distribution

component: Drug Enforcement Administration (DEA)

body_text: NEW ORLEANS, LOUISIANA – On August 7, 2026, a federal grand jury returned a three-count indictment against DEXTER MONTGOMERY (“MONTGOMERY”) , age 51, a resident of New Orleans, charging him with violating the Federal Controlled Substances Act, announced United States Attorney David I. Courcelle. According to court documents, MONTGOMERY was indicted on two counts of distribution of fifty (50) grams or more of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A) and one count of distribution of fifty (50) or more grams of a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B). If convicted of the distribution of methamphetamine counts, MONTGOMERY faces a minimum term of imprisonment of ten (10) years, a maximum term of imprisonment of life, a fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment and a mandatory special assessment fee of $100.00. For the distribution of a mixture of methamphetamine count, MONTGOMERY faces a minimum term of imprisonment of five (5) years, a maximum term of imprisonment of forty (40) years, at least four (4) years of supervised release following any term of imprisonment and a mandatory special assessment fee of $100.00. U.S. Attorney Courcelle reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt. The case was investigated by the Drug Enforcement Administration and the Hancock County Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones of the Narcotics Unit. * * *


title: Former Magoffin County High School Teacher Sentenced for Online Enticement of a Minor

component: USAO - Kentucky, Eastern

body_text: ASHLAND, Ky. – A Salyersville, Ky man and former Magoffin County High School teacher, Jason Back, 44, was sentenced on Monday to 17 years in prison by Chief U.S. District Judge David Bunning for online enticement. According to his plea agreement, on March 6, 2023, through March 9, 2023, Back enticed a minor to engage in sexual activity. Specifically, during that time period, Back, a high school teacher, engaged in a text message conversation with a minor and sent a series of sexually explicit messages, including a series of messages that included plans to engage in sexual intercourse. Through the messages sent by Back, in his position as teacher, a position of authority or trust, Back enticed the minor to engage in sexual intercourse. “Teachers are entrusted with the safety and well-being of their students, and that trust must never be exploited. When an adult in a position of authority uses that trust to target or entice a child for sexual purposes, the consequences are serious,” said Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky. “We will continue to hold accountable those who prey upon children and abuse positions of trust.” Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; and Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; jointly announced the sentence. The investigation was conducted by the FBI. Assistant U.S. Attorney Justin Blankenship prosecuted the case on behalf of the United States. The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 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 Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . – END –


title: Ashland Man Sentenced for Receiving Child Sexual Abuse Material

body_text: ASHLAND, Ky. – An Ashland man, Nathaniel Parsons, 46, was sentenced on Monday to 15 years by Chief U.S. District Judge David Bunning for receiving a visual depiction of a minor engaged in sexually explicit conduct. Law enforcement identified an IP address located in Ashland that was sharing child sexual abuse material on peer-to-peer software, EMule. A search warrant was executed at the address, which was Parsons’ residence, and multiple digital devices were seized and searched. In total 84,000 images and 500 videos containing minors engaged in sexually explicit conduct were discovered on the devices. Also, discovered on Parson’s electronic devices were sexually explicit images of a minor known to Parsons. The minor admitted that the images were not created at the request of Parsons and were taken from the minor’s phone, who was unaware that Parsons was in possession of the images. Jason Parman, First Assistant United States Attorney for the Eastern District of Kentucky; Olivia Olson, Special Agent in Charge, FBI, Louisville Field Office; and Chief Todd Kelley, Ashland Police Department, jointly announced the sentence. The investigation was conducted by the FBI and Ashland Police Department. Assistant U.S. Attorney Erin Roth prosecuted the case on behalf of the United States. The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 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 Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . – END –


title: Jordanian National Pleads Guilty to Illegally Possessing a Short-Barreled Rifle

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Yahya Yaghmour, 43, a Jordanian national who holds dual U.S. citizenship and resides in Fresno, pleaded guilty to illegally possessing a short-barreled rifle, U.S. Attorney Eric Grant announced. According to court records, in August 2025, the FBI arrested Yaghmour in connection with a fraud investigation. After Yaghmour’s arrest, he was heard on a recorded jail call instructing his wife to dispose of something that was in a safe in their house. The FBI then searched the house and found an AR-style rifle with a barrel length of 11 inches hidden in a safe in the master bedroom behind several other firearms. Importantly, because the rifle has a barrel length of less than 16 inches and can therefore be more easily concealed, it is considered a short-barreled rifle under the law and must be registered in the federal National Firearms Registration and Transfer Record. Yaghmour did not register the rifle as required. Yaghmour has significant experience with firearms and had previously tried to obtain work as gun salesman or gunsmith. He also admitted to authorities that he had built the AR-style rifle they found and that he knew it had a barrel length of less than 16 inches. This case is the product of an investigation by the FBI. Assistant U.S. Attorney Joseph Barton is prosecuting the case. Yaghmour is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on October 26, 2026. Yaghmour faces maximum statutory penalties of 10 years in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.


title: Fresno County Fentanyl Dealer Sentenced to 12 Years in Prison for Causing Overdose Death

body_text: FRESNO, Calif. — Austin Lloyd Kerns, 54, of Fresno, was sentenced today by U.S. District Judge Kirk E. Sherriff to 12 years in prison for conspiracy to distribute and possession with intent to distribute fentanyl, U.S. Attorney Eric Grant announced. According to court documents, the investigation began following a fatal fentanyl overdose of a 24-year-old Fresno man. The victim died after using counterfeit oxycodone M30 tablets containing fentanyl that he obtained directly from Mr. Kerns after being referred by a co-conspirator. Kerns sold the victim 16 pills in three separate deals over two days, with one of these pills ultimately taking the victim’s life. Kerns pleaded guilty to conspiring with his codefendant, Lakota Tehya Wakley, 22, of Clovis, to sell fentanyl to users like the victim referred by Wakley. Kerns would in turn sell the buyers fentanyl pills and send Wakley a cut of the profits earned from the sales. During this distribution conspiracy, Kerns was out on bail in a pending criminal case before the Fresno County Superior Court on charges of distributing methamphetamine. Kerns pleaded guilty on May 18, 2026. This case was the product of an investigation by Fentanyl Overdose Resolution Team, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant United States Attorney Calvin Lee prosecuted the case.


title: Former Fresno Arts Council Manager Sentenced to 33 Months in Federal Prison for Embezzling over $1.8 Million in Public Funds

body_text: FRESNO, Calif. — Suliana Caldwell, 46, of Fresno, was sentenced to 33 months in federal prison for stealing more than $1.8 million in public funds from the Fresno Arts Council (FAC), U.S. Attorney Eric Grant announced. According to court records, Caldwell was the FAC’s operations manager from 2021 to February 2026. In this position, she managed the FAC’s bank accounts, payroll, grants, donations, and general finances. Her duties also included providing periodic financial updates and reports to the executive director, board members, and the City and County of Fresno. “This defendant abused her position, betrayed the public’s trust, and siphoned away over $1.8 million intended to support parks, trails, and the arts in Fresno,” said U.S. Attorney Grant. “She lied and falsified financial reports in order to use taxpayer dollars to fund casino trips, vacations, and personal indulgences. Her actions undermined a community that believed in her. Today’s sentence reflects our commitment to protecting public funds and holding accountable anyone who exploits her position for personal gain.” "Suliana Caldwell betrayed the public’s trust when she embezzled over $1.8 million from the Fresno Arts Council for personal use,” said FBI Sacramento Acting Special Agent in Charge Brian Tosh. “Today’s sentencing underscores our commitment to investigating public corruption at every level. We encourage anyone with information on corruption to report it to the FBI so we can continue holding bad actors accountable and protecting community resources." “While it is disappointing that the community’s trust was violated by the theft Caldwell committed, we are grateful that the Fresno Police Department’s partnership with FBI investigators helped the U.S. Attorney’s Office to swiftly bring justice for the taxpayers in the City of Fresno,” said Fresno Police Chief Mindy Casto. Beginning in 2022, Caldwell embezzled funds by making unauthorized withdrawals of money from the FAC’s bank accounts. In 2023, after the Fresno City Council designated the FAC to administer its Measure P grant money, Caldwell significantly increased the amount of money she stole from the FAC’s accounts and ultimately took more than $80,000 per month on average. Measure P is a tax initiative approved by Fresno voters in 2018 to provide funding for parks, trails, and the arts, among other things. Caldwell concealed her theft by using her position of trust as the operations manager to falsify financial reports, which omitted her theft and represented that there were significantly higher balances in the FAC’s bank accounts than was true. She then presented the false reports to the FAC’s executive director, board members, and others to trick them into believing everything was okay. Caldwell received an enhancement to her sentence because of this abuse of trust. In total, Caldwell stole over $1.8 million from the FAC. She then used the money to gamble at local casinos where she enjoyed various VIP statuses, pay for vacations, and for other improper personal expenses. The FAC detected Caldwell’s theft in February 2026 when one of its checks bounced. Caldwell was subsequently fired and charged in this case. She pleaded guilty on April 20, 2026. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorneys Cody Chapple and Joseph Barton prosecuted the case.


title: One Year After Federal Law Enforcement Surge, D.C. Is Safer as Crime Declines Sharply

component: USAO - District of Columbia

body_text: WASHINGTON – Today, U.S. Attorney Jeanine Ferris Pirro marked the one-year anniversary of President Trump’s Federal Law Enforcement Surge in the District of Columbia. The surge implemented a significant increase in federal law enforcement resources, bolstering our teams with additional agents, advanced tools, and a no‑nonsense mandate that renewed the focus on cracking down on violent offenders, dismantling criminal networks, and restoring safety to District neighborhoods. “We’ve seen firsthand how sustained, coordinated law enforcement efforts can make an impact and the impact is real when cases are prosecuted,” said U.S. Attorney Pirro. “Our prosecution efforts are up 67 percent since I became U.S. Attorney. Over the past year, we have worked relentlessly to reduce violence, hold offenders accountable, and restore a sense of safety in neighborhoods across the District. Nearly 2,000 illegal firearms were taken off the streets, and arrests included murderers, sex offenders, drug traffickers, and other violent criminals. These results reflect the dedication of every agency involved and our shared commitment to protecting the people of Washington, D.C.” Over the past year, President Trump’s Federal Law Enforcement Surge has resulted in sharp declines in violent crime and property crime across Washington, D.C., based on year‑over‑year comparisons. Homicides have dropped by 45 percent, carjackings by 64 percent, and robberies by 33 percent. The District has also seen a 53 percent reduction in motor vehicle thefts. Since August 11, 2025, the U.S. Attorney’s Office has charged 16,724 cases in D.C. Superior Court, a 67 percent increase from the previous year. During that same period, the U.S. Attorney’s no paper rate is approximately 5 percent—representing a 76 percent decrease from the 5,250 arrests no‑papered the prior year. By comparison, the U.S. Attorney under the previous administration recorded a no‑paper rate of 67 percent, underscoring the magnitude of the Office’s current charging improvements. Today, there are approximately 24,000 criminal cases pending in D.C. Superior Court. Case resolutions have also strengthened. In the past 12 months, prosecutors secured 5,767 guilty pleas, 213 guilty verdicts at trial, and successfully resolved an additional 969 cases through diversion. These gains were driven by close coordination among federal agencies, local law enforcement, and the Metropolitan Police Department. Under the Executive Order, the D.C. Safe and Beautiful Task Force was created to tackle priority public safety challenges, including violent crime, carjackings, property offenses, and vandalism. The initiative supports President Trump’s directive to crack down on gun violence, prioritize federal firearms violations, impose tougher penalties, and seek detention for federal firearms offenders. As part of these efforts, law enforcement agencies have seized nearly 2,000 illegal firearms from the streets of Washington, D.C., reflecting the impact of sustained, coordinated policing across jurisdictions. Together, these measures underscore a year of focused work to support safety, strengthen neighborhoods, and improve the quality of life throughout the District.


title: Former D.C. High School Teacher Pleads Guilty to Coercing and Enticing a Minor

body_text: WASHINGTON – John Aaron Gass, 35, of Hyattsville, Maryland, a former high school history teacher, pleaded guilty today in U.S. District Court to charges related to the sexual abuse of a minor victim, announced U.S. Attorney Jeanine Ferris Pirro. Gass pleaded guilty before U.S. District Judge Sparkle L. Sooknanan to Coercion and Enticement of a Minor. Judge Sooknanan scheduled sentencing for Dec. 11, 2026. According to court papers, Gass worked as a history teacher at the District of Columbia International School, a charter school in Northwest, until November 2025. Gass exchanged sexually explicit images with the minor victim, court papers state. Gass was arrested at his home in Maryland in December 2025. The investigation was conducted by the FBI Washington Field Office's Child Exploitation and Human Trafficking Task Force, with assistance from the Metropolitan Police Department. The matter was prosecuted by Assistant U.S. Attorney for the District of Columbia Rachel Bohlen. This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . 25cr396


title: District Man Charged with Sexually Abusing Multiple Minors and Producing Child Pornography

body_text: indictment_as_to_antonio_simpson_1_count_s_1_6_7_8.pdf WASHINGTON – Today an indictment was returned charging Antonio Simpson, 31, a District of Columbia resident, with twelve counts including production of child pornography and first-degree child sexual abuse, announced U.S. Attorney Jeanine Ferris Pirro. According to court documents, beginning in April 2025, Simpson sexually abused two minor children who were eight and nine years old at the time. The abuse continued for more than a year. Simpson also video recorded multiple acts of sexual abuse with his victims, including placing his penis in their mouths and touching their genitals. Simpson was arrested in this matter on July 21, 2026, and remains detained. Joining U.S. Attorney Pirro in the announcement was FBI Assistant Director in Charge Darren B. Cox of the Washington Field Office. This case is being investigated by the FBI’s Child Exploitation and Human Trafficking Task Force. It is being prosecuted by Assistant United States Attorney Rachel Bohlen. This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . Charges in an indictment are merely allegations, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 26cr191


title: D.C. Man Indicted on 30 Counts in Domestic Violence Case

body_text: WASHINGTON – Tavante Robinson, 26, of Washington, D.C., was arraigned today by a D.C. Superior Court judge on a thirty-count indictment, for charges related to the kidnapping and assault of the mother of his children and other violent acts committed against her friend and other family members, between March 2025 and July 2026. The charges were announced by U.S. Attorney Jeanine Ferris Pirro. “Tavante Robinson allegedly punched his own 4-year-old child, resulting in a black eye. He later kidnapped the child’s mother and their children and set her friend’s apartment door on fire,” said U.S. Attorney Pirro. “Even with a protective order issued against him, the violence continued. This behavior has no place in our community, and my office will continue to prosecute anyone who does harm and instills fear in our community.” Robinson was indicted for first-degree cruelty to children, kidnapping, robbery, arson, stalking, assault with a dangerous weapon, possession of a firearm during a crime of violence, possession and use of a Molotov cocktail, obstructing justice, and various additional counts related to threats, assaultive conduct, and contempt of court orders. D.C. Superior Court Judge Rainey Brandt set a hearing for September 8, 2026. The Court determined that the defendant should be held pending trial. According to court documents, on March 14, 2025, the victim returned to her residence and observed that her 4-year-old son had a black eye. A witness reported that while the mother was out of the home, the defendant became upset with the 4-year-old and punched him in the face. In the months following, the victim received a Civil Protection Order against the defendant from a D.C. Superior Court judge, which the defendant repeatedly violated. On April 16, 2026, the victim reported that the defendant kidnapped her and her children from her friend’s apartment complex and held them captive for multiple hours. The victim and her children ultimately became free of the defendant when he fled the area once police arrived. Just a few days later, on April 20, 2026, the D.C. Fire Department was dispatched to that same apartment complex where the victim and her children were taken from by the defendant. The D.C. Fire Investigation Unit located a fire at the door of the apartment belonging to the victim’s friend and observed further damage to the apartment’s exterior window as well as burned patches beneath that window. Joining the announcement was Interim Chief Jeffery Carroll of the Metropolitan Police Department. This case is being investigated by the Metropolitan Police Department and the D.C. Fire Investigation Unit. The case is being prosecuted by Assistant U.S. Attorney Olivia Hinerfeld. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 2026 CF3 12263


title: Ecuadoran National Charged with Offenses Related to Theft of U.S. Treasury Funds

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, Thomas Demeo, Special Agent in Charge of IRS Criminal Investigation in New England, and Michael Carpenter, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), today announced that EDISON JOVANNY DUTA PINDO, 43, a citizen of Ecuador unlawfully residing in the United States, has been charged in a seven-count indictment with offenses related to the theft of U.S. Treasury funds. The indictment alleges that Pindo, who resided in Danbury, maintained accounts at Newtown Savings Bank in his name and in the name of Home Services Pro LLC, a business that was registered with the State of Connecticut. On April 23, 2024, Pindo deposited a fraudulent U.S. Treasury check in the amount of $53,780.49, made payable to Home Services Pro LLC and Edison Jovanny Duta, into the Home Services Pro LLC account. The following day he made two withdrawals, each in the amount of $15,000, from Newtown Savings Bank branches in Brookfield and Bethel. The indictment further alleges that, on May 14, 2024, Pindo deposited a fraudulent U.S. Treasury check in the amount of $150,597.28, made payable to Home Services Pro LLC and Edison Jovanny Duta, into the Home Services Pro LLC account. That same day, he transferred $50,000 from the business account to his personal account. On December 3, 2025, a grand jury in New Haven returned an indictment charging Pindo with two counts of bank fraud, an offense that carries a maximum term of imprisonment of 30 years on each count, three counts of making illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count, and two counts of passing counterfeit obligations, an offense that carries a maximum term of imprisonment of 20 years on each count. Pindo has been detained since he was located and arrested in Danbury on July 16, 2026. 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 investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division and the Treasury Inspector General for Tax Administration, with the assistance of the Danbury Police Department. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.


title: United States Intervenes in False Claims Act Lawsuit  Against Colorado Medical Companies

component: USAO - Colorado

body_text: The United States Attorney’s Office for the District of Colorado announces that the United States has intervened in a whistleblower lawsuit in the United States District Court for the District of Colorado. The United States alleges in its complaint that three Colorado healthcare companies—Front Range Urgent Care, Inc., Comfort Care Family Practice, Inc., and QwikCareMD, LLC (together, QwikCare)—and two individuals, Anita Weiscamp, and Steven L. Wenrich, M.D., engaged in a scheme for nearly a decade to submit fraudulent claims for payment under federal health insurance programs. Specifically, the complaint alleges that the defendants submitted inflated claims for payments using Dr. Wenrich’s provider number even when Dr. Wenrich did not provide nor supervise any services for which the claims were submitted. The complaint names Front Range Urgent Care, an urgent care medical practice, Comfort Care Family Practice, a family care medical practice, both of which have their primary places of business in Colorado Springs, Colorado. Both entities were established by a doctor, Dr. Steven Wenrich, who later passed away. The complaint also names QwikCareMD, a company that provided medical management services to Front Range Urgent Care and Comfort Care Family Practice. QwikCareMD was established by Dr. Wenrich’s spouse, Anita Wiescamp. The case involves payments by Medicare and TRICARE, which are federal healthcare programs. Medicare provides health benefits to individuals ages 65 and older as well as to certain other individuals with qualifying conditions. Medicare has several parts, including Part B, which provides benefits to Medicare participants to cover the costs of services provided by physicians and other practitioners, among other things . TRICARE provides health benefits to U.S. Armed Forces civilian personnel, military retirees, and their dependents. Under Medicare Part B and TRICARE, the federal government pays healthcare providers for covered services on a fee-for-service basis. In particular, the federal government pays more for physicians to provide services than for nurse practitioners or physician assistants to provide those same services. The complaint alleges that defendants violated the False Claims Act by knowingly submitting false claims under Dr. Wenrich’s physician provider number when Dr. Wenrich did not provide or supervise services for which the claims were submitted. Instead, the services were actually provided by nurse practitioners or physician assistants. The complaint alleges that the defendants fraudulently submitted tens of thousands of these inflated requests for payments. These false claims caused the federal government to pay significantly more for the services that were provided by defendants than Medicare and TRICARE otherwise should have paid. “Our federal healthcare system relies on honest billing,” said U.S. Attorney Peter McNeilly for the District of Colorado. “When companies overbill Medicare and TRICARE by fraudulently submitting inflated requests for payments, they jeopardize important benefits for others under those programs. We will not tolerate such conduct.” “Fraudulent billing that exploits Medicare is not an error, but deliberate misconduct that steals from a program that millions of Americans depend on,” said Special Agent in Charge Linda T. Hanley with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Schemes that knowingly misrepresent who provided care in order to obtain higher reimbursement — as alleged in this case — are a direct attack on the integrity of federal health care programs, including Medicare. HHS‑OIG will continue to pursue allegations of fraud aggressively, working relentlessly with our law enforcement partners to ensure those who commit health care fraud are held fully accountable.” “Healthcare fraud committed against TRICARE, our military’s healthcare benefit program – including schemes in which services are billed at a higher level than what was actually provided – undermines military readiness by diverting critical resources away from beneficiaries who genuinely need medical care,” said Chad Gosch, Special Agent in Charge of the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office. “As the investigative arm of the Department of Defense’s Office of Inspector General, DCIS remains steadfast in our commitment to holding accountable those who illegally compromise the integrity and effectiveness of TRICARE for personal gain.” The lawsuit was originally filed by former employees of QwikCare under the qui tam , or whistleblower, provisions of the False Claims Act. Those whistleblower provisions permit private parties to sue on behalf of the United States based on the submission of false claims to the government. The False Claims Act authorizes the United States to investigate the allegations made by such private parties and, if it elects to do so, to intervene in a whistleblower lawsuit and take over primary responsibility for litigating it, as the United States has done here. The Act permits the government to recover three times its damages, plus civil penalties. The private plaintiffs are then entitled to receive a share of any funds recovered through the United States’s lawsuit. This matter was investigated by the U.S. Attorney’s Office for the District of Colorado, the Department of Health and Human Services’ Office of Inspector General, and the Defense Criminal Investigative Service. The claims asserted against defendants are allegations only, and there has been no determination of liability. The lawsuit is captioned United States ex rels. Young, M.D. and Perez v. Anita Weiscamp., et al ., No. 20-cv-02514-DDD-MDB (D. Colo.).


title: Wasilla man charged with making threats, stalking Michigan public official

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment last month charging a Wasilla man with making threats in interstate commerce and stalking. According to court documents, between Sept. 18 and 23, 2025, James Lawhorn, 54, allegedly sent communications on Facebook to multiple accounts, on a city website, and by telephone that contained threats to injure and murder the mayor of a city in Michigan. Some messages included: “We must get this scum out of our country now. Put a bullet in this mf’s head now.” “This mayor needs to be killed now…. Hang him and all his family now. He is not safe on the streets anymore.” “All Muslims must now die in America because of this fucking fag. No sleep until he is in the dirt along with all his scum family and friends and Muslims.” In total, Lawhorn sent more than 20 threatening messages. The messages contained violent rhetoric and threats of assassination, including via hanging and firing squad. Lawhorn is charged with seven counts of making threats in interstate commerce and one count of stalking. The defendant made his initial court appearance today before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, he faces up to five years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Michael J. Heyman for the District of Alaska and Special Agent in Charge Matthew Schlegel of the FBI Anchorage Field Office made the announcement. The FBI Anchorage Field Office is investigating the case. Assistant U.S. Attorney Andrea Steward is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: California woman arrested, charged with distributing meth that caused overdose death of Unalaska worker in Homeland Security Task Force case

body_text: ANCHORAGE, Alaska – A California woman was arrested last week in Santa Barbara, California, after a federal grand jury in Alaska returned an indictment charging her with distributing methamphetamine that resulted in the fatal overdose of an Unalaska fishing industry worker. According to court documents, between Jan. 21 and Feb. 2, 2025, Darlene Moreno, 44, of Port Hueneme, California, distributed methamphetamine to a 48-year-old victim in Unalaska. On Feb. 2, the victim allegedly used the methamphetamine and fatally overdosed. Law enforcement recovered a baggie of crystal-like substance from the victim and sent the substance for testing. Lab results confirmed the substance was 98% pure methamphetamine. The State of Alaska medical examiner ruled the victim’s cause of death as methamphetamine intoxication. U.S. Attorney's Office, District of Alaska; U.S. v Moreno, Case #: 3:26-cr-00058 Court documents allege that investigators found social media conversations between the victim and Moreno discussing the purchase of methamphetamine. Moreno allegedly shipped a package containing methamphetamine from California to Unalaska on Jan. 21, 2025. The victim picked up the package on Jan. 31, two days before they fatally overdosed. Moreno is charged with one count of distribution of methamphetamine resulting in death and one count of use of a communication facility in committing, causing and facilitating the commission of a drug trafficking felony. The defendant is scheduled to make her initial court appearance today before a U.S. Magistrate Judge of the U.S. District Court for the Central District of California. If convicted, she faces between 20 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Michael J. Heyman of the District of Alaska, Special Agent in Charge Paul Schultz of the Coast Guard Investigative Service (CGIS) Northwest Field Office and Chief Kim Hankins of the Unalaska Police Department made the announcement. The CGIS Northwest Field Office and Unalaska Police Department are investigating the case, with assistance from the FBI Anchorage Field Office and U.S. Postal Inspection Service Anchorage Domicile. The FBI Los Angeles Field Office, Oxnard Police Department in California, the Santa Barbara County Sheriff’s Department in California and the Ventura County Sheriff’s Department in California assisted with operational support. Assistant U.S. Attorney Mandy Mackenzie is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Region One comprises agents and officers from Federal Bureau of Investigation; U.S. Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations – Seattle; the United States Attorney’s Office(s) for the Districts of Alaska, Idaho, Oregon, Eastern Washington, and Western Washington; the Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Marshals Service; Internal Revenue Service - Criminal Investigation Division; U.S. Postal Inspection Service; U.S. Customs and Border Protection (CBP); CBP – Office of Field Operations; CBP – Air & Marine Operations; U.S. Border Patrol; U.S. Coast Guard, Coast Guard Investigative Service; and Transportation Security Administration, Law Enforcement/Federal Air Marshal Service, with the prosecution being led by the United States Attorney’s Office for the District of Alaska. ###


title: West Virginia Convicted Felony Sex Offender Pleads Guilty to Receipt of Over 50 Gigabytes of Child Sexual Abuse Material

component: Criminal Division

body_text: Justin L. Wiegand, 34, of Kenova, West Virginia, pleaded guilty today to receipt of child pornography. “Sexual exploitation of children is one of the worst and most damaging crimes in our country,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Those who participate in these crimes damage lives, rob innocence, and create emotional wounds that last a lifetime. Whether you produce child sexual abuse material (CSAM), distribute it, or access it via subscriptions to messaging apps, we will find and prosecute you subject to mandatory minimum penalties, as in the case of this repeat offender.” “This predator admitted to continuing his horrific crimes against children even while serving a sentence for statutory rape,” said U.S. Attorney Moore Capito for the Southern District of West Virginia. “Our office remains steadfast and unrelenting, working closely with our law enforcement partners to protect our children and communities from such heinous and abhorrent offenses.” “This case demonstrates how DSS leverages its global footprint to protect vulnerable victims and works with law enforcement partners on complex, multi-jurisdictional investigations,” said Deputy Assistant Director William Ferrari of the Office of Investigations for the U.S. Department of State’s Diplomatic Security Service (DSS). “Every day, DSS works alongside U.S. and international partners to investigate cases like this, protect victims, and safeguard U.S. interests at home and abroad.” According to court documents and statements made in court, in December 2023, Wiegand contacted a user on an instant messaging app who provided Wiegand with options for purchasing videos and links to files depicting CSAM. The options included “Cp,” “Kids,” and “Young Girls.” As part of his guilty plea, Wiegand admitted that he ordered a package from the Young Girls and Kids options that included approximately 160 videos and links to four folders on an online file hosting service containing over 50 gigabytes of CSAM. Wiegand further admitted that the videos sent to him depicted minors engaged in sexually explicit conduct, including adult males having sexual intercourse with prepubescent females. Wiegand paid the messaging app user $25 for the package via an online payments system. At the user’s direction, Wiegand messaged a different messaging app account that provided Wiegand with the videos and online links he purchased. Wiegand purchased CSAM from the same and other messaging app users on at least eight other occasions between December 2023 and January 2025. Wiegand requested such content as “young girls cp” and asked if the user had rape videos during these transactions. Wiegand also set up a hidden camera in a bathroom at his residence and recorded a video of an approximately 10-year-old girl undressing until she was nude and taking a shower. The video was saved on one of Wiegand’s cell phones no later than July 29, 2025. Wiegand possessed numerous images and videos of CSAM on his cell phones, including depictions of prepubescent minors engaged in sexual intercourse and oral sex with adults. Wiegand saved some of these images and videos using a private cloud storage service, including at least two images depicting an approximately 14-year-old girl displaying her nude genital area. Wiegand was previously convicted of two counts of third-degree sexual assault in Wayne County Circuit Court on May 5, 2023. As part of today’s guilty plea, Wiegand admitted that his victim in that case is the approximately 14-year-old girl depicted in the CSAM on the private cloud storage service. Wiegard also admitted that he was serving a term of home confinement for those convictions at the time of his current offense. Wiegand is scheduled to be sentenced on Nov. 23 and faces a minimum penalty of 15 years in prison and a maximum penalty of 40 years in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $250,000. DSS investigated the case with the assistance of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) and the West Virginia State Police. Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jennifer Rada Herrald for the Southern District of West Virginia are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc .


title: Veloxis Pharmaceuticals Agrees to Pay Over $46M to Resolve Criminal and Civil Liability for Kickback Schemes

component: Civil Division

body_text: Veloxis Pharmaceuticals Inc. (Veloxis), a drug manufacturer based in Cary, North Carolina, has agreed to pay over $46 million to resolve criminal and civil allegations that it paid kickbacks to induce prescriptions and purchases of Envarsus XR (Envarsus), a kidney transplant immunosuppression drug. As part of the government’s resolution with Veloxis, the company entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of Massachusetts charging Veloxis with conspiracy to commit violations of the federal Anti-Kickback Statute by paying for, among other things, lavish meals, alcohol, and luxury resort stays, to induce healthcare providers to recommend or prescribe Envarsus. As part of the DPA, Veloxis has agreed to pay a criminal penalty of more than $10 million. “Today’s resolution should serve as a warning to any healthcare company that tries to improperly influence the decisions of healthcare providers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can erode medical decision-making, result in unnecessary prescriptions of branded drugs, and waste federal healthcare funds.” “Attempting to improperly influence medical decision-making for financial gain is dangerous, yet it is exactly what Veloxis was doing. Instead of prioritizing patient safety, they were prioritizing profits,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “Treatment decisions need to be based on what’s best for the patient, not what’s best for the drug manufacturer’s bottom line, or what lavish meal or resort stay they can offer. We remain committed to protecting the integrity of taxpayer-funded health care programs. Drug manufacturers should know that the federal government will use all available enforcement mechanisms to stop the payment of illegal health care kickbacks.” “Today’s settlement resolves allegations that Veloxis operated with a principal focus on sales, providing kickbacks in the form of luxury resort stays, lavish meals, and payments to induce health care professionals to recommend and prescribe its kidney transplant immunosuppression drug,” said Special Agent in Charge Ted E. Docks of the FBI Boston Field Office. “It’s harmful when pharmaceutical companies prioritize profits over patients. Just know that the FBI and our partners are committed to fighting health care offenses, one case at a time, and seeing perpetrators held accountable.” “Kickbacks that distort medical decision making put patients at risk and undermine trust in our health care system,” 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). “Veloxis used lavish perks and concealed payments to push its drug, and today’s resolution makes clear that this conduct will not be tolerated. HHS OIG will continue working with our law enforcement partners to protect patients, uphold the integrity of federal health care programs, and hold companies accountable when they violate the law.” Today’s resolution also includes a civil settlement of allegations that Veloxis caused the submission of false claims to federal healthcare programs by paying kickbacks to hospital personnel and specialty pharmacies, in violation of the False Claims Act. Veloxis has agreed to pay $34.45 million to the United States and certain states to resolve those civil allegations. In addition, Veloxis agreed to pay a $1.55 million civil penalty to the Centers for Medicare & Medicaid Services (CMS) to resolve allegations that Veloxis knowingly failed to report to CMS certain payments to physicians under the Open Payments Program (also known as the “Sunshine Act”). This is the largest Sunshine Act recovery since the law was passed in 2010. As part of the criminal resolution and the Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General, Veloxis has agreed to implement a significant corporate compliance program, including adoption of an enhanced system of policies, procedures, and internal controls designed to deter and detect violations of the Anti-Kickback Statute, and implementation of enhanced oversight, reporting, and enforcement mechanisms. The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. It seeks to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. Similarly, Congress created the Open Payments Program to provide greater transparency and protection to consumers by requiring drug manufacturers and others to publicly disclose certain payments and other transfers of value to physicians, with the goal of discouraging the development of inappropriate relationships and potentially unnecessary healthcare costs that can arise from such conflicts. Veloxis’ Criminal Liability for Conspiring to Pay Kickbacks According to admissions and court documents filed in the District of Massachusetts, from October 2016 and continuing through in or around June 2023, Veloxis and its employees engaged in a scheme to pay kickbacks to transplant health care providers (HCPs) to induce them to prescribe, order, or recommend or arrange for prescribing or ordering Envarsus for kidney transplant recipients. During the relevant time, Veloxis manufactured and sold a single drug, Envarsus, for use as an immunosuppressant in adult kidney transplant recipients. Envarsus, a drug taken once a day for the life of the kidney transplant recipient, competed against the generic form of the same drug, which was taken only once a day. To gain market share for Envarsus against a cheaper generic drug, Veloxis engaged in an aggressive marketing strategy pursuant to which it promoted Envarsus to HCPs at and tied to transplant centers and hospitals who could influence the placement of Envarsus on the formulary and/or protocol of their respective facilities. These marketing efforts included various tactics that violated the federal Anti-Kickback Statute, including but not limited to: taking HCPs and at times, their spouses or guests, to lavish dinners and on expensive trips and retreats under the guise of “advisory boards,” providing gifts and expensive alcohol to HCPs, and making purported consulting payments to HCPs for work that was not actually performed. In many of these instances, Veloxis employees submitted falsified company expense reports to conceal their illegal marketing efforts, including by falsely adding names to the list of attendees at dinners and events (to decrease the apparent cost per attendee of the meals) and omitting the names of physicians who attended the meals (to avoid Sunshine Act reporting requirements). This false reporting resulted in Veloxis’ failure to properly report the sums it paid to physicians, which further obscured its illegal activities. Veloxis admitted that it intended the improper remuneration it provided to HCPs to result in increased Envarsus prescriptions, as demonstrated, in part, by communications between Veloxis employees and certain HCPs. For example, in connection with a surgeon’s request to attend a speaker program, a Veloxis employee told the surgeon that the Veloxis employee “need[ed] scripts. Lots of them.” Several months earlier, the Veloxis employee had told the surgeon that he was “over Sales” and needed the surgeon “more than ever,” and instructed the surgeon that it was “[t]ime to open your Rolodex and make things happen.” The statement of facts filed with the DPA today details additional examples of Veloxis’ kickbacks and related efforts to disguise and conceal its unlawful conduct. Veloxis’ Civil Liability for False Claims to Federal Healthcare Programs The resolution announced today also resolves allegations that Veloxis violated the False Claims Act by knowingly causing the submission of claims to Medicare, Medicaid, and TRICARE for Envarsus prescriptions written by HCPs or filled by pharmacies to which Veloxis had knowingly and willfully paid kickbacks in violation of the Anti-Kickback Statute. In connection with the civil settlement agreement, Veloxis admitted that from 2016 to 2023, it paid kickbacks to HCPs in the form of lavish meals, alcoholic beverages, expensive trips, resort stays, gifts, and purported consulting fees to induce prescriptions of Envarsus. Veloxis admitted that it concealed those kickbacks by falsifying company expense reports and business records as to the recipients, amounts, and purpose of the payments; and creating consulting agreements for purported consulting work that was not actually performed. With respect to Veloxis’ obligation to report physician payments under CMS’s Open Payments Program, Veloxis admitted that because its reports to CMS were based on falsified expense reports, Veloxis underreported, or failed to report, the true amounts of its payments or transfers of value to those physicians. In addition, Veloxis admitted that from 2017 to 2023, it paid kickbacks to specialty pharmacies in the form of per-patient and per-month payments to induce those pharmacies to begin or continue purchasing Envarsus instead of competitor drugs, including a cheaper generic drug. Veloxis admitted that it disguised the unlawful purpose of the kickback payments to the pharmacies by falsely describing the payments in written contracts as being for “enhanced services” such as data collection or adherence services. In fact, Veloxis admitted that it paid the pharmacies regardless of whether they provided any data, provided the specified data fields, or provided the data in the specified format, and without confirming whether any adherence services were provided. Under the civil settlement agreement, Veloxis will pay $21,211,251 to the United States to resolve the False Claims Act allegations and an additional $13,238,749 to certain States for claims settled by certain State Medicaid programs. Veloxis also agreed to pay a civil penalty of $1.55 million to resolve allegations that it knowingly failed to report the amounts of its payments to physicians under the CMS’s Open Payments Program. In connection with the civil settlement, Veloxis entered into a five-year Corporate Integrity Agreement (CIA) with the HHS-OIG. The CIA requires, among other compliance provisions, that Veloxis implement a compliance program to identify and address the Anti-Kickback Statute risks associated with other financial arrangements and retain an independent compliance expert to perform a review of the effectiveness of the compliance program. Veloxis received credit under the Department of Justice’s guidelines for accounting for disclosure, cooperation, and remediation in False Claims Act cases. Among other things, Veloxis admitted liability and accepted responsibility for the misconduct, proactively disclosed inculpatory evidence not known to the government, and facilitated interviews with current and former employees and the collection of evidence from third parties. Veloxis also received credit for taking timely and remedial measures, including terminating employees responsible for the misconduct, updating and revising policies and procedures related to the Anti-Kickback Statute, adopting enhanced training, reporting, compliance, disciplinary, and internal investigations programs, and terminating agreements and relationships with third parties involved in the offense conduct. The claims resolved in today’s settlement include certain claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. The qui tam case is captioned United States ex rel. Toulsor1, Inc. v. Veloxis Pharmaceuticals A/S, et al. , No. 1:20-cv-11575 (D. Mass.). The government’s pursuit of this matter illustrates 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 1-800-HHS-TIPS (800-447-8477). 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 criminal case is being prosecuted by Assistant U.S. Attorneys Leslie A. Wright and Christopher R. Looney for the District of Massachusetts. The civil investigation and resolution were handled by Assistant Director Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Steven T. Sharobem and Lindsey E. Weinstein for the District of Massachusetts. The FBI, HHS-OIG, DCIS, Office of Personnel Management Office of Inspector General, Department of Veterans Affairs Office of Inspector General, and U.S. Postal Service Office of Inspector General investigated the case.


title: Justice Department Secures $150,000 Settlement in Sexual Harassment Lawsuit Against Kentucky Landlord

component: Civil Rights Division

body_text: The Justice Department announced today that Danny Bell, the owner and manager of residential rental properties in Somerset, Kentucky, agreed to pay $150,000 to resolve a lawsuit alleging that he sexually harassed female tenants in violation of the Fair Housing Act. “Tenants should not be forced to choose between safety and keeping a roof over their heads,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This case involved a landlord’s sexual harassment of female tenants, including threats to evict tenants who refused his advances. The Justice Department will continue to hold landlords accountable for using their power to violate the rights of vulnerable women.” “Housing should never be used as a tool to exploit vulnerable people in our community,” said First Assistant U.S. Attorney Jason Parman for the Eastern District of Kentucky. “This settlement sends a clear message that our office will not tolerate sexual harassment in housing and will vigorously protect the rights of tenants to feel safe in their homes.” The Justice Department’s lawsuit, filed in the U.S. District Court for the Eastern District of Kentucky in April 2023, alleges that Bell sexually harassed female tenants for over a decade, including in their homes. The suit alleges that Bell offered to forgive rent in exchange for sexual contact, subjected tenants to unwelcome sexual touching, made unwelcome sexual comments and sexual advances, let himself into female tenants’ homes without notice or permission, and threatened to evict tenants who refused his demands. Pursuant to the proposed consent order, which still must be entered by the court, the defendant must pay $140,000 to tenants who were harmed by his harassment and a $10,000 civil penalty to the United States. The consent order governs the sale of Bell’s current residential rental properties, and bars Bell from managing any future residential rental properties and from contacting tenants harmed by his harassment. It also mandates training and the adoption of policies and procedures to prevent future discrimination in his rental properties. If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online . More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative . The initiative, which the department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 53 lawsuits alleging sexual harassment in housing and recovered over $19 million for victims of such harassment.


title: Justice Department Awards Nearly $290 Million to Improve Safety

component: Office of Justice Programs (OJP)

body_text: The Bureau of Justice Assistance, a component under the Department of Justice’s Office of Justice Programs, awarded almost $290 million to support state, local, and tribal governments in criminal justice activities to keep American communities safe. The awards, provided through the Edward Byrne Memorial Justice Assistance Grant (JAG) Program, represent the nation’s leading source of federal justice funding to state and local jurisdictions, the District of Columbia, and all U.S. territories. For more than 20 years, the JAG program has provided critical funding to support law enforcement’s ability to protect the communities they serve, supporting critical needs such as personnel, equipment and supplies, technology, training, information systems for criminal justice or civil proceedings, and other operational priorities. JAG funding also supports a wide range of programs that strengthen crime prevention efforts and enhance the effectiveness of prosecutors, courts, corrections agencies, and services for crime victims and witnesses. “This funding strengthens our state, local, and tribal partners’ ability to address violent crime, support officers on the front lines, and keep our Nation’s communities safe,” said Associate Attorney General Stanley E. Woodward Jr. “The JAG Program continues to provide essential resources that help jurisdictions meet today’s public safety threats and uphold the rule of law.” In addition to foundational uses of JAG funds, specific areas of emphasis were included to the JAG funding opportunities highlighting and encouraging state and local jurisdictions to join federal law enforcement in addressing the most pressing public safety challenges. For Fiscal Year 2025, these areas of emphasis included combatting violent crime, immigration enforcement, safe communities, and safe houses of worship. BJA awarded more than $199 million in state JAG funding across 56 awards and more than $90 million in local JAG funding across 895 awards. Examples of initiatives supported by these grants include: Providing specialized training to strengthen the prevention, detection, and response to human trafficking and to enhance proactive crime‑reduction efforts through improved officer readiness and increased patrol capacity. Enhancing local crime‑fighting efforts by integrating innovative technology, training, and equipment, and using comprehensive crime‑data analysis to guide decision‑making, measure performance, and strengthen strategies addressing violent crime and other public safety issues. Strengthening enforcement efforts by supporting investigations related to gang activity and narcotics through targeted operations carried out by specialized units. Improving officer safety and readiness by replacing outdated ballistic helmets with modern protective equipment used during high‑risk incidents, tactical operations, active threat responses, warrant service, civil disturbances, and other dangerous calls for service. All recipients for both state and local JAG awards can be found here . About the Office of Justice Programs The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation's capacity to prevent and reduce crime; promote fair and impartial administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking or SMART Office – can be found at ojp.gov .


title: Judd Wire Inc. Agrees to Pay $1.014 Million to Settle False Claims Act Allegations for Failing to Test Wire and Cable Used By the United States

body_text: Judd Wire Inc., of Turners Falls, Massachusetts, has agreed to pay $1,014,000 to resolve allegations that it violated the False Claims Act by failing to perform tests required by specifications for certain wire and cable products used by the U.S. Navy. In connection with the settlement, the United States acknowledged that Judd Wire took significant steps entitling it to credit for cooperating with the government. “It is essential to the safety and operational capabilities of the military that suppliers comply with applicable product specifications,” said Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. “When suppliers fail to comply with required specifications, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking prompt remedial measures.” “The performance of safety tests of military equipment is a critically important part of taking care of our Sailors and Marines and the gear their lives and missions depend on,” said General Counsel of the Department of the Navy David W. Denton Jr. “When contractors fail to do so they need to be held accountable. The Navy Acquisition Integrity Office will continue to expand our partnership with the Task Force to Eliminate Fraud on procurement fraud matters and take administrative action when appropriate.” The settlement resolves allegations that from September 2011 to August 2021, Judd Wire produced wire and cable products that were used by the United States, but failed to perform all tests required by each of the 29 wire and cable specifications covered by the settlement. Judd Wire voluntarily disclosed the testing lapses to the United States, cooperated with the U.S. investigation, and implemented remedial measures. 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 combating 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 U.S. Navy’s Office of General Counsel, Acquisition Integrity Office. The matter was handled by Trial Attorney Greg Pearson of the Civil Division’s Commercial Litigation Branch. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: The Department of Justice Files Complaints Against New York, Connecticut, and Vermont Challenging State Laws that Provide In-State Tuition to Illegal Aliens

body_text: Today, the Department of Justice filed lawsuits against three states that seek to undermine our Nation by placing aliens over citizens in clear defiance of Congress’s commands. The Department filed complaints against New York , Connecticut , and Vermont , challenging state laws that provide in-state tuition and financial assistance for illegal aliens. These laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates or scholarships, create incentives for illegal immigration, and reward illegal aliens with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law. “Congress long ago made clear that States cannot put illegal aliens over our Nation’s own citizens,” said Associate Attorney General Stanley Woodward. “By granting illegal aliens in-state tuition, New York, Vermont, and Connecticut are doing just that. No more. As of today, we have now sued every state in the Second Circuit that seeks to thwart Congress’s clear prohibition by placing alien over citizen. And our efforts will not cease until President Trump’s promise is fulfilled: illegal aliens will not receive benefits denied to our Nation’s own citizens.” “This is a simple matter of federal law: colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.” In the complaints, the United States seeks to enjoin enforcement of New York, Connecticut, and Vermont laws, regulations, and policies that require colleges and universities to provide in-state tuition rates for all aliens who maintain in-state residency, regardless of whether those aliens are lawfully present in the United States. Additionally, the complaints seek to enjoin New York, Connecticut, and Vermont from enforcing state laws, regulations, and policies that afford financial assistance and scholarships to illegal aliens. Today’s lawsuits mark 17 lawsuits challenging in-state tuition for illegal aliens. Under the leadership of Attorney General Todd Blanche, the Department’s efforts have already delivered wins for the American people, as five similar lawsuits in Texas , Kentucky , Oklahoma , and Nebraska , and Illinois have resulted favorable orders permanently enjoining and declaring unconstitutional analogous laws that gave reduced tuition to illegal aliens, including an order from the Fifth Circuit . Lawsuits against other states that similarly put illegal aliens ahead of U.S. citizens are pending across the across the country in Minnesota , Virginia , California , New Jersey , Kansas , Massachusetts , Rhode Island , Maryland , and Colorado .


title: Chinese National Pleads Guilty to Trying to Obtain U.S. Military Equipment

component: National Security Division (NSD)

body_text: Earlier today, Dingwei Chen, a 29-year-old citizen of the People’s Republic of China, pleaded guilty in federal court in Salt Lake City to violating the Arms Export Control Act. U.S. District Judge David Sam accepted Chen’s guilty plea and scheduled sentencing for Oct 19. Chen faces a maximum penalty of 20 years in prison. Chen attempted to purchase military-grade satellite modems and radios manufactured for the U.S. military by American companies. The specific communications hardware Chen attempted to buy may not be legally exported from the United States without a license from the Department of State’s Directorate of Defense Trade Controls, which generally does not issue licenses to export military goods and services to China. “Chen tried to divert sensitive U.S. military technologies to the People’s Republic of China, technologies the PRC could have used against us in the future,” said Assistant Attorney General for National Security John A. Eisenberg. “These advanced technologies are a product of United States ingenuity and investment, and the National Security Division will act together with our partners across the government to enforce our laws to protect the military advantage bestowed by such technologies.” “Today’s guilty plea underscores the serious consequences for those who attempt to illegally procure, export, or transfer sensitive U.S.-origin military equipment or technology in violation of our nation’s export control laws,” said Acting Special Agent in Charge Spiros Karabinas of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) New Jersey. “Protecting American innovation and preventing critical technologies from reaching foreign adversaries, terrorist organizations, and transnational criminal organizations is a core national security mission. This investigation reflects the exceptional collaboration between HSI offices across the United States and its territories and the Defense Criminal Investigative Service to disrupt an illicit procurement network and hold accountable those who threaten the security of the United States.” “Advanced communication systems – such as those increasingly sought after by adversaries for their sophisticated capabilities – are essential to protecting our warfighters and ensuring they can operate safely and decisively across modern battlespaces,” said Director James R. Ives of the Defense Criminal Investigative Service (DCIS). “Safeguarding this technology is critical to the men and women who rely on these systems when protecting our nation. As the criminal investigative arm of the Department of Defense’s Office of Inspector General, DCIS will aggressively pursue those who attempt to obtain and illegally export sensitive technology that could pose future risks to our troops and ensure they face justice.” According to court records, Chen worked with others in China to try and acquire these sensitive communications systems from foreign arms dealers on the black market. They discussed various methods to export them to China. Initially, Chen and his co-conspirators sought to transship the goods through Switzerland; then they spoke about picking them up in Saipan; finally, they decided to smuggle through Mexico. After making an initial down payment of over $40,000 U.S. dollars, Chen and his co-conspirators switched to cryptocurrency, noting that “cold wallets are essentially anonymous bank accounts. Each transaction processed through them is private and untraceable.” They went on to pay roughly $30,000 worth of USDT, which is a type of cryptocurrency. These down payments related to the purchase of 10 modems. To avoid detection, Chen and his co-conspirators communicated using an encrypted app. Using the encrypted app, Chen claimed this was merely an initial deal, and he had funding to buy tens of millions of dollars’ worth of additional military equipment. Assistant Attorney General Eisenberg thanked the hardworking HSI and DCIS agents who investigated this case. The case is being prosecuted by Trial Attorney Christopher Magnani of the National Security Division’s Counterintelligence and Export Control Section.