title: Med Spa Owner Sentenced to 46 Months in Prison for Performing Thousands of Counterfeit Botox and Filler Injections

component: USAO - Massachusetts

body_text: BOSTON – A Massachusetts woman has been sentenced in federal court in Boston to nearly four years in prison for performing thousands of cosmetic injection procedures using counterfeit Botox and dermal fillers imported from China and Brazil. The defendant, who was not licensed to perform injections and falsely represented herself as a nurse, received more than $1 million in payments from more than 900 clients for these procedures. Defendant owned and operated Skin Beaute Med Spa, with locations in Randolph and South Easton, Mass. Rebecca Fadanelli, 40, of Stoughton, Mass. was sentenced on Sept. 2, 2026 by U.S. District Court Judge Julia E. Kobick to 46 months in prison, to be followed by two years of supervised release. Fadanelli was also ordered to pay restitution and forfeiture each in the amount of $1,001,562. In April 2026, Fadanelli pleaded guilty to four counts of importing merchandise contrary to law, two counts of selling or dispensing a counterfeit drug and two counts of selling or dispensing a counterfeit device. She was arrested and charged in November 2024. “This was not a mistake or a one-time lapse in judgment. Rebecca Fadanelli built a business on deception and repeatedly put profit ahead of the health and safety of the people who trusted her,” said United States Attorney Leah B. Foley. “She lied about being a nurse, injected counterfeit products into hundreds of clients even after federal authorities seized her shipments, searched her businesses and ultimately arrested her. Her victims were left with infections, facial paralysis, vision problems, scars and the lasting fear of not knowing what was injected into their bodies. As cosmetic injections and med spas continue to grow in popularity, this case underscores a serious and growing public health threat: counterfeit products and unlicensed providers can cause devastating harm. Those who knowingly put consumers at risk for profit will be held accountable.” “FDA requirements are designed to ensure the safety, efficacy, and quality of drugs and devices distributed to American consumers. Administering counterfeit products for profit puts consumers at serious risk,” said Special Agent in Charge Fernando McMillan, FDA Office of Criminal Investigations, New York Field Office. “Today’s sentencing demonstrates that the FDA will continue to hold accountable those who endanger public health.” Beginning in at least March 2021, Fadanelli owned and operated Skin Beaute Med Spa, with locations in Randolph and South Easton, Mass. Although Fadanelli was an aesthetician who was never licensed to perform injections or otherwise dispense or administer prescription drugs or devices, she offered botulinum toxin and dermal filler injections to clients and falsely represented to clients and employees that she was a licensed nurse. Fadanelli also misrepresented the identity and safety of the substances she was injecting, telling clients that she was using authentic Botox and FDA-approved dermal fillers such as Sculptra, Restylane and Juvéderm. In reality she was using counterfeit versions of these products, many of which she imported from China and Brazil. There is no record that Fadanelli ever purchased authentic prescription drugs or devices directly from the manufacturers of those FDA-approved products. Business records show that between approximately March 2021 and June 2024 alone, Fadanelli performed more than 2,700 botulinum toxin and dermal filler injection procedures using counterfeit prescription drugs and devices. More than 900 clients paid a combined total of more than $1 million for the procedures. Fadanelli continued operating her med spa illegally despite repeated warnings and law enforcement intervention. After federal authorities began seizing international shipments of counterfeit prescription drugs and devices addressed to Fadanelli’s home and business – and notified her that the products were misbranded and unapproved – Fadanelli took steps to conceal her continuing activity. Among other things, she directed suppliers to use different delivery addresses and other individuals’ names as recipients in an effort to avoid additional seizures. On June 28, 2024, during searches at both Skin Beaute locations, products labeled as Botox, Sculptra, Restylane and Juvéderm that the product manufacturers subsequently identified as counterfeit, were recovered. Bacteriostatic water, used to dilute Botox that laboratory testing found contained methylobacterium, a bacteria that can cause infection, was also found. Fadanelli continued offering and performing injection procedures until her arrest on Nov. 1, 2024. However, in May 2025 while on pretrial release following her arrest, Fadanelli performed an injection procedure at her home using an unknown substance that the client reportedly believed to be Sculptra. Her pretrial release was later revoked, and she has remained in custody since November 2025. Numerous clients suffered adverse health effects as a result of injections performed by Fadanelli, including severe swelling, infections, drooping or paralysis of the face and eyes, double vision, impaired eyesight and hard lumps or nodules. Multiple clients were hospitalized, and many required follow-up treatment from licensed medical professionals. For example, one client spent weeks hospitalized after developing severe facial swelling, headaches, weakness and fever-like symptoms following botulinum toxin injections. Another victim was hospitalized for four days after experiencing facial drooping and paralysis, double vision and headaches; another client suffered impaired vision for approximately three months; and a separate client ultimately underwent corrective surgery to remove a hard lump beneath her skin and was left with scarring. When clients reported adverse reactions, Fadanelli often dismissed their concerns or provided misleading assurances, in some cases falsely claiming that she had used authentic FDA-approved products for the clients’ injection procedures. Fadanelli told some of these clients to return to Skin Beaute for additional treatments. U.S. Attorney Foley, FDA-CI SAC McMillan; and Jennifer De La O, Director of Field Operations, U.S. Customs and Border Protection, Boston Field Office made the announcement today. The Medicaid Fraud Division of the Massachusetts Attorney General’s Office and the Stoughton and Randolph Police Departments also provided valuable assistance in the investigation. Assistant U.S. Attorneys Leslie Wright and Sarah Hoefle of the Health Care Fraud Unit prosecuted the case.


title: Georgian National Charged for Conspiracy to Launder Proceeds of $1.3 Billion Health Care Fraud Scheme

body_text: BOSTON – A Georgian national has been indicted by a federal grand jury in Boston for allegedly conspiring to launder the proceeds of a $1.3 billion health care fraud scheme while he was illegally in the United States. Erekle Gugava, 33, a Georgian national, was indicted on one count of money laundering conspiracy. Gugava fled the United States in July 2025, after the alleged conduct. According to court documents, Gugava was a money launderer for the foreign-based organization that spearheaded the largest health care fraud case ever prosecuted by the Department of Justice, dubbed Operation Gold Rush. The organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar health care fraud and money laundering scheme to target, exploit and steal from Medicare and other health insurers. As alleged in the charging documents, Gugava purportedly owned ND Medical Solutions, LLC (ND Medical), a durable medical equipment company located in Pennsylvania, between February 2025 and July 2025. During the limited five-month span of Gugava’s purported ownership, ND Medical submitted at least $1.3 billion in fraudulent DME claims to Medicare, private health insurance companies that contracted to provide Medicare supplemental insurance policies, private employer-sponsored plans and union health plans. These insurers paid ND Medical approximately $6.5 million. As part of the scheme, Gugava allegedly facilitated the deposit and transfer of fraud proceeds. Among other things, he allegedly opened several bank accounts in the name of ND Medical – for which he was the sole signatory – and deposited checks from Medicare Supplemental Insurers and other health insurers into the ND Medical bank accounts. The funds were then ultimately transferred to various overseas bank accounts for the benefit of the organization. As alleged in charging documents, the fraudulent claims relied, in part, on the stolen identities of citizens from Massachusetts, across New England, and throughout the United States to justify the fraudulent billings. Many of these individuals, including elderly and disabled Americans, reported their concerns to Medicare and its contractors after receiving explanation of benefit forms that reflected them purportedly receiving DME that they did not in fact receive, that was purportedly prescribed by doctors whom they had never visited and purportedly delivered from ND Medical—a DME company with which they were unfamiliar. As further alleged, the organization exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The health care fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources. Medicare and established private insurance carriers, giving the funds the initial appearance of legitimacy. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the amount of laundered funds, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Leah B. Foley; Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Department of Health and Human Services – Office of the Inspector General Special Agent in Charge Roberto Coviello; Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation, Philadelphia Division; Justin Page, Acting Inspector in Charge of the U.S. Postal Inspection Service (USPIS) Boston Division; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Jeff Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Kelly M. Lawson, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office made the announcement. Assistant U.S. Attorney Meghan Cleary of the Health Care Fraud Unit is prosecuting the case alongside Deputy Chief Kevin Lowell, Assistant Deputy Chief Jim Hayes, and Trial Attorneys Tiffany Wynn and Sarah Rocha of the National Fraud Enforcement Division’s Health Care Fraud Section. On March 26, 2026 , United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621). On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division . The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.


title: McLennan County man sentenced to 15 years in federal prison for supplying fentanyl-laced pills responsible for an overdose in the Eastern District of Texas

component: Drug Enforcement Administration (DEA)

body_text: SHERMAN, Texas – A Hewitt man has been sentenced to 15 years in federal prison for a drug trafficking violation in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs. Thomas James Hurtt, 33, pleaded guilty to conspiracy to possess with intent to distribute fentanyl and was sentenced to 180 months in federal prison by U.S. District Judge Michael Truncale on September 4, 2026. According to information presented in court, on February 21, 2024, law enforcement officers with the Cross Roads Police Department responded to a report of an overdose victim in Denton County. The victim was treated with Naloxone and transported to the hospital where they eventually recovered. Further investigation revealed Hurtt as the supplier of the counterfeit pills laced with fentanyl. 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. This case was investigated by the U.S. Drug Enforcement Administration and the Cross Roads Police Department and prosecuted by Assistant U.S. Attorney Matthew T. Johnson. ###


title: Jefferson County man sentenced for bank fraud related to an altered U.S. Treasury check

component: USAO - Texas, Eastern

body_text: BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a bank fraud scheme in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs. Byron Demetrius Franklin, 61, pleaded guilty to bank fraud and was sentenced to 27 months in federal prison by U.S. District Judge Marcia A. Crone on September 3, 2026. According to information presented in court, in January of 2025, Franklin attempted to deposit a U.S. Treasury check in the amount of $1,197,149.98 at a Walmart ATM in Houston to a U.S. Automobile Association federal banking account (USAA). Franklin called USAA and spoke with a bank financial investigator to complain that the check amount was read incorrectly by the ATM and only deposited $119,714.99. USAA credited Franklin’s account a difference of $1,077,434.99 for the reported error, but gave Franklin access to the $119,714.99, while they verified the check’s authenticity. Between January 18, 2025, to January 20, 2025, Franklin withdrew a total of $5,507.90 from the account via JP Morgan Chase and 5Point Credit Union ATMs in Beaumont before USAA closed Franklin’s account because the check was found to have been altered. This case was investigated by the U.S. Secret Service and U.S. Automobile Association and prosecuted by Assistant U.S. Attorney Rachel Grove. ###


title: Jefferson County man sentenced to 10 years in federal prison for drug trafficking violations in the Eastern District of Texas

component: Federal Bureau of Investigation (FBI)

body_text: BEAUMONT, Texas – A Beaumont man has been sentenced to 10 years in federal prison for a drug trafficking violation in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs. Joskin Love, 50, pleaded guilty to possession of a controlled substance with intent to distribute and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on September 3, 2026. According to information presented in court, on March 19, 2025, Love was stopped for a traffic violation. Officers smelled marijuana during the stop. A search was conducted resulting in the discovery of methamphetamine and fentanyl-laced pills. 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. This case was investigated by the FBI and the Texas Department of Public Safety – Criminal Investigations and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin. ###


title: Chattanooga Man Sentenced To 25 Years For Exploitation Of A Minor

body_text: CHATTANOOGA, Tenn. – On September 3, 2026, Michael Ray Buckley, 34, currently of Chattanooga, Tennessee, was sentenced to 300 months by the Honorable Charles E. Atchley, Jr., United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following his imprisonment, he will be on supervised release for 20 years and he will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release. As part of the plea agreement filed with the court, Buckley agreed to plead guilty to an indictment charging him with one count of exploitation of a minor in violation of 18 U.S.C. § 2251(a) and (e). According to court filed documents, Buckley admitted that through his Instagram account of “candy_cams,” and other social media accounts using the internet, he solicited and recruited minor females to produce child pornography, paying the minors for produced images and videos through CashApp, and distributing child pornography to buyers online. To facilitate his communications with minor victims, Buckley falsely represented his identity, age (11-13), and gender. By exploiting these false identities, Buckley persuaded and induced the minor victims to create and transmit sexually explicit images of themselves. Buckley’s conduct reflected a deliberate and sustained pattern of predatory behavior directed toward children, intended to manipulate and entice minor victims into engaging in sexually explicit conduct and producing sexually explicit images for his personal financial gain and sexual gratification of his clients. U. S. Attorney Francis M. Hamilton III, of the Eastern District of Tennessee, Special Agent in Charge, Terrence G. Riley, Federal Bureau of Investigation (FBI) Nashville Field Office, and the Hamilton County District Attorney’s Office made the announcement. The criminal indictment was the result of an investigation by the Federal Bureau of Investigation. This investigation was led by FBI Chattanooga Resident Agency Special Agent Samuel K. Moore. Special Assistant United States Attorney Charles D. Minor represented the United States. This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc . For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click the tab "resources.” ###


title: Owner of Tax Prep Business Found Guilty of Conspiring to Defraud the IRS

component: National Fraud Enforcement Division

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Manoach Chayaud, 43, of Carmel, Indiana, was convicted today at trial of a years-long conspiracy to defraud the Internal Revenue Service (“IRS”). The defendant was charged by indictment in December 2024, arising from a scheme that ran from approximately November 2013 through February 2022, in the Eastern District of Pennsylvania and elsewhere. As proven at trial, Chayaud recruited two individuals to assist him in a scheme to file false tax returns on behalf of clients of his tax preparation business, setting up an office in Indiana, where he lived, and an office in Philadelphia, where the two co-conspirators lived. Chayaud taught the two co-conspirators how to prepare tax returns to increase client refunds by, among other things, filing false Schedules C claiming large losses for businesses that the client did not have, fraudulently claiming education credits, and fraudulently claiming Schedule A deductions. As a result, the defendant and his co-conspirators were able to increase the refunds for their clients and charge additional tax preparation fees. Chayaud and one of the co-conspirators split the proceeds of the business; the other co-conspirator was paid a percentage of the fees the business charged. The defendant is scheduled to be sentenced on December 15 and faces a maximum possible term of five years in prison, a fine, or both. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. This case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant United States Attorneys Jessica Rice and David Ignall.


title: Franklin Towne Charter High School and Its Former CEO Agree to Pay Nearly $4 Million to Resolve Claim of Racial Discrimination in Admissions Process

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney David Metcalf announced today that Franklin Towne Charter High School (“Franklin Towne”), a public charter high school in Philadelphia, and its former CEO Joseph Venditti have separately agreed to pay a total of $3,914,328.77 to resolve claims that they violated the False Claims Act by discriminating against black applicants during a January 2023 admissions lottery. “Racial discrimination has no place in school admissions,” said U.S. Attorney Metcalf. “Selecting or excluding students because of their race is illegal and violates the agreements schools sign when they accept federal grant money.” Title VI of the Civil Rights Act of 1964 and United States Department of Education regulations prohibit any school that receives federal financial assistance from discriminating based on race, color, or national origin during the admissions process or otherwise. The United States contends that, in January 2023, Franklin Towne, acting through or at the behest of Venditti, manipulated what should have been a random admissions lottery to reduce the chances of black applicants being admitted. At the time of the lottery, Franklin Towne was funded in part by grants that were provided by the United States Department of Education and administered by the Commonwealth of Pennsylvania pursuant to the Elementary and Secondary Education Act and the Elementary and Secondary School Emergency Relief Fund. The settlement amounts with both defendants were based on analyses of their abilities to pay. Franklin Towne will pay $3,639,328.77 as part of its settlement agreement and Venditti will pay $275,000.00 as part of his settlement agreement. As part of the settlement agreement with Franklin Towne, the United States acknowledges, pursuant to the Department of Justice’s Guidelines for Taking Voluntary Disclosure, Cooperation and Remediation into Account in False Claims Act Matters (Justice Manual § 4.4.112), that the school has made significant governance changes, including replacing the Chief Executive Officer and hiring an independent third party to conduct all future admissions lotteries at the school. “I am proud of the work of OIG staff, and our law enforcement and prosecutorial partners whose efforts brought about this settlement,” said Jamila Davis, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office. “The OIG will continue to pursue allegations of violations of the False Claims Act in carrying out our important public service.” This matter was handled in the Eastern District of Pennsylvania by Assistant United States Attorneys Peter Carr and Fernando I. Rivera, with assistance from litigative consultant Denis Cooke. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Raleigh Drug Ringleader Convicted at Federal Guns and Drugs Trial

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

body_text: RALEIGH, N.C. – A federal jury convicted a Raleigh man after three days of trial on nine counts for fentanyl and five counts for possessing a firearm stemming from his role directing a major fentanyl‑trafficking operation. “This thug had a long history of pushing venomous poison and despite being locked up in the past, he immediately went back to his dirty work, orchestrating a violent drug‑peddling enterprise from right here in Raleigh, pumping our community full of deadly fentanyl, all while using illegal guns,” said U.S. Attorney Ellis Boyle. “Working with a collaboration of men and women from local, state, and federal law enforcement, we dismantled his operation, seized his poison and guns, and removed him off our streets. This verdict delivers a clear message: Drugs destroy lives, and prison awaits—choose the right path.” Isiah Naaquan Weeks ran a drug‑trafficking operation that pushed hundreds of thousands of fentanyl pills from California and Arizona into Eastern North Carolina. He and his crew crisscrossed the country to grab massive loads of fentanyl, shipped those pills into Wake County, and flooded Raleigh with them. Investigators uncovered high‑volume deliveries, coordinated communications, and nonstop dealing from 2022 until Weeks’ arrest in 2024. Weeks constantly carried guns to assist his drug dealing and kept selling even as his associates were arrested with thousands of pills. When an associate was caught with one hundred thousand fentanyl pills tied to him, Weeks panicked and googled ‘Best place to live for Americans in Mexico’ and ‘no extradition countries’ just days before his arrest. “Holding a drug dealer accountable for his dangerous and careless crimes sends a powerful message to anyone that threatens our public safety,” said ATF Special Agent in Charge Alicia Jones. “ATF and our law enforcement partners will use every resource we have available to pull the plug on violent criminal networks.” “The Raleigh Police Department extends its sincere gratitude to the exceptional public safety partners whose dedication, professionalism, and commitment throughout this case exemplify the very best of collaboration in modern law enforcement. Alongside our officers and detectives, their teamwork, coordination, and shared expertise were instrumental in advancing this investigation and furthering our collective mission to protect and serve our community. We are especially grateful for the strong partnership between the Raleigh Police Department and the U.S. Attorney’s Office for the Eastern District of North Carolina. The coordination and teamwork demonstrated throughout this investigation reflect the shared commitment of local, state, and federal agencies to working together to uphold justice and keep our community safe.” 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. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the jury’s verdict. The ATF, United States Postal Inspection Service, and the IRS – Criminal Investigation and Raleigh Police Department collaborated on this multi-year investigation. A copy of this press release is located on our website . Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-200-D.


title: Dent County Caregiver Admits Stealing from Client

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A caregiver from Dent County, Missouri on Friday admitted stealing at least $321,000 from a client. Loretta Pyeatt, 52, pleaded guilty in U.S. District Court in St. Louis to one count of fraud in connection with access devices. She admitted that she worked for the victim from roughly July 2023 to September 2025. At the time she started, the victim had at least $232,026 and was receiving Social Security Administration retirement benefits and Veteran’s Affairs benefits monthly. He gave Pyeatt his debit cards so she could buy groceries for him. Pyeatt, however, used the card to make cash withdrawals and additional unauthorized purchases. Before Pyeatt started working for the victim, he had 20 to 30 debit transactions per month. That ballooned to as many as 330 transactions per month. By July 2025, the victim’s account balance had declined to less than $5,600. Pyeatt is scheduled to be sentenced on December 9. The charge carries a potential penalty of up to 15 years in prison, a fine of $250,000 or both prison and a fine. The Social Security Administration Office of the Inspector General and the Veterans Affairs Office of Inspector General investigated the case. Assistant U.S. Attorney Jolene Taaffe is prosecuting the case.


title: Homeland Security Task Force Arrests Owner of Southwest Detroit Business, “La Posada,” on Charges of International Money Laundering Conspiracy

component: USAO - Michigan, Eastern

body_text: DETROIT - Juan Romo-Padilla, 58, owner of La Posada – a Mexican restaurant, convenience store, and money remitter business located in Southwest, Detroit – was arrested on September 3, 2026, following a joint investigation by DEA-Detroit and IRS-CI, announced United States Attorney Jerome F. Gorgon Jr. Romo-Padilla faces federal charges for conspiracy to launder monetary instruments, international money laundering, laundering of represented drug proceeds, and violations of the Bank Secrecy Act. Gorgon was joined in the announcement by Joseph O. Dixon, Special Agent in Charge, Drug Enforcement Administration, Detroit Field Division, and Todd Strom, Acting Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation. According to the federal criminal complaint, agents from DEA and IRS-CI have been investigating Romo-Padilla since September 2024 for illegally sending structured cash transfers of drug proceeds to Mexico through La Posada. Between 2022 and 2026, Romo-Padilla conducted over 100,000 wire transfers totaling over $140 million to Mexico. Nearly all of the funds were sent to Mexican states associated with major drug cartels, including the Jalisco New Generation Cartel (CJNG), La Familia Michoacana, and the Sinaloa Cartel. “To fight the Mexican cartels, we have to stop the flow of drug money back to Mexico,” said Gorgon. “Money laundering is not a victimless crime, it is the financial engine that allows drug traffickers to turn illicit profits into the resources that fuel addiction, violence, and death in cities across America,” said Special Agent in Charge Dixon. “We will follow the money, expose the networks behind these operations, and dismantle the financial infrastructure that allows them to thrive. We are moving with a renewed sense of urgency and will not stop until these criminal networks are destroyed.” “The arrest of Juan Romo-Padilla for his role in transmitting funds from illegal drug transactions in and out of the United States is a victory for the American public and a defeat to drug traffickers everywhere. The special agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that is the lifeblood for these criminals,” said Acting Special Agent in Charge Todd Strom, Detroit Field Office, IRS Criminal Investigation. “We will continue to be relentless in our mission to dismantle these drug trafficking organizations and bring the criminals who run them to justice.” If convicted of these money laundering offenses, Romo-Padilla faces up to 20 years in prison on each count. 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 Detroit comprises agents and officers from numerous agencies with the prosecution being led by the United States Attorney’s Office for the Eastern District of Michigan. This case is being investigated by the DEA and IRS-Criminal Investigations with assistance from the Department of Homeland Security. The case is being prosecuted by Assistant United States Attorneys Caitlin Casey and Rajesh Prasad.


title: Federal Court Sentences Former Substitute Teacher to 40 Years in Prison for the  Sexual Exploitation of Minors and Receipt of Child Pornography

body_text: DETROIT – Timothy Higle, 34, of Clawson, Michigan and former substitute teacher, was sentenced this week to 40 years in federal prison after having pleaded guilty in April 2026 to charges that he sexually exploited minors and received child pornography, announced Jerome F. Gorgon, Jr., United States Attorney of the Eastern District of Michigan. Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation, Detroit Field Division. According to court records, Higle solicited nude images and sexually explicit videos from over a dozen minors between ages 14 and 17 over Snapchat, targeting victims over the course of 12 years. Higle used money, drugs, alcohol, and extortion to get what he wanted from his victims. In exchange for producing the images and videos, Higle paid the minor victims using Cashapp and Venmo, and in some instances, he provided or offered marijuana and alcohol. As part of his tactics, Higle befriended his victims, knew their ages, and learned intimate details about their lives and family circumstances. For many, he became a trusted adult as he groomed them only to later exploit that knowledge and trust for his sexual gain. Higle inflicted countless mental and emotional harms on his victims without regard to their wellbeing. Through grooming, Higle sexualized his young victims and commented on his preference for younger bodies over developed women. Higle directed his victims in graphic detail on what types of photos or videos he wanted to see such as specific poses and body parts. Higle also propositioned victims for sex, offering to pay victims as much as $500 to $1,000 for sex acts. When some victims attempted to cut contact or refused to send images, Higle threatened to post their photos online and he continued to harass them across other social media platforms. Law enforcement became aware of Higle’s conduct after one of the victims contacted the Michigan State Police in August 2024. “This former teacher is a scheming pervert who hurt children for more than a decade. Now he has a 40-year sentence because law enforcement caught him,” said U.S. Attorney Gorgon. “This sentence makes one thing clear: those who choose to exploit children will face serious consequences,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “This defendant’s actions were a betrayal of public trust, and today’s outcome reflects our commitment to protecting vulnerable victims and holding offenders accountable. I commend the diligent investigative work of our FBI Oakland County Resident Agency, in partnership with the Michigan State Police, for bringing this predator to justice.” This case was investigated by the Federal Bureau of Investigation and the Michigan State Police. The case was prosecuted by Assistant U.S. Attorney Sean King of the Trafficking and Exploitation of Children Unit.


title: Ponchatoula Woman Guilty of Theft from an Organization Receiving Federal Funds

body_text: NEW ORLEANS, LOUISIANA – RACHEL CRAWFORD , a/k/a “Rachel Davenport,” a/k/a “Rachel Monjure,” a/k/a “Rachel Haygood” (“CRAWFORD”), age 47, of Ponchatoula, pleaded guilty to Theft from an Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A), announced U.S. Attorney David I. Courcelle. According to plea documents, CRAWFORD was the Chief Financial Officer of an organization that received federal funds. Beginning on or about May 14, 2021, and continuing until or about May 8, 2025, CRAWFORD withdrew approximately $162,209.61 in cash from the organization’s checking account for personal use. CRAWFORD then altered bank statements to conceal her withdrawals. In addition, CRAWFORD made $9,254.81 of unauthorized purchases for personal items, including airplane tickets and a cosmetic dermatologist, using the organization’s credit card. When interviewed by federal agents, CRAWFORD admitted to the scheme. CRAWFORD faces up to ten (10) years of imprisonment, a term of supervised release for up to three (3) years, and a fine of up to $250,000. A mandatory $100 special assessment fee is also applicable. U.S. District Judge Greg G. Guidry set sentencing for December 16, 2026. U.S. Attorney Courcelle praised the work of the U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. Assistant United States Attorney Maria M. Carboni of the Public Integrity Unit is in charge of the prosecution. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.


title: New Orleans Man Guilty of Receiving Materials Involving the Sexual Exploitation of Minors

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LOUISIANA – JAKE ALEXANDER GRZELKA (“GRZELKA”) , age 40, of New Orleans, pled guilty on September 3, 2026, to Receipt of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1), announced U.S. Attorney David I. Courcelle. GRZELKA faces a mandatory minimum sentence of five (5) years and a maximum sentence of twenty (20) years imprisonment, and/or a fine of up to $250,000.00, a term of supervised release of no less than five (5) years and up to life, and a $100.00 mandatory special assessment fee. According to court records, beginning at an unknown time and until on or about July 31, 2025, GRZELKA received, and attempted to receive, images and videos of pre-pubescent child pornography. GRZELKA’s home was searched by state law enforcement officials and federal agents on July 31, 2025. GRZELKA was arrested during the execution of the search warrant by agents with the Louisiana Bureau of Investigation, after finding him in possession of electronic devices and media containing the sexual abuse of prepubescent children. Through a partnership between state and federal authorities, the U.S. Attorney’s Office adopted the state charges and is now prosecuting GRZELKA in federal court. GRZELKA is currently being held without bail in federal custody. Sentencing is scheduled for December 8, 2026 before United States District Judge Brandon S. Long. U.S. Attorney Courcelle praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations and the Louisiana Bureau of Investigations. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Project Safe Childhood Coordinator and Deputy Chief of the Criminal Division. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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. * * *


title: Mexican national sentenced to 4 years and 9 months in prison for being a deported alien found in the United States

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Jorge Arellano Torres, 33, residing illegally in Modesto, pleaded guilty today to being a deported alien found in the United States and was sentenced by U.S. District Judge Dena Coggins to four years and nine months in prison to be served consecutively to his state prison term, U.S. Attorney Eric Grant announced. According to court documents, on Oct. 11, 2025, Arellano Torres was found by immigration officers in the Eastern District of California after he had illegally re-entered the United States. Arellano Torres is a citizen and national of Mexico and had been deported in 2017. Prior to his deportation, Arellano Torres had been convicted in state court of possession for sale of methamphetamine and heroin in 2015. After Arellano Torres re-entered the United States, he was convicted in state court and is serving a state prison sentence. The Department of Homeland Security Immigration and Customs Enforcement conducted the investigation. Assistant U.S. Attorney J. Douglas Harman prosecuted the case.


title: Little Rock Man Returns to Federal Prison for Fourth Time to Serve a 10-Year Sentence for Being a Felon in Possession of Firearms

component: USAO - Arkansas, Eastern

body_text: LITTLE ROCK—Tyjuan Townsend, a multi-convicted felon who has previously served time in federal prison three separate times, was sentenced to serve 120 months’ incarceration for being a felon in possession of multiple firearms. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Thursday, September 3, 2026, by United States District Judge Brian S. Miller. On August 3, 2025, a federal grand jury indicted Townsend, 47, of Little Rock, in a five-count Indictment charging him with being a felon in possession of firearms, possession of a firearm in furtherance of drug trafficking, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, and possession with intent to distribute fentanyl. On April 28, 2026, Townsend pleaded guilty to being a felon in possession of firearms and received the 10-year sentence in federal prison, which included enhancements for the drug possession. In addition, Judge Miller also sentenced Townsend to three years’ supervised release. There is no parole in the federal system. In late 2022, Little Rock Police Department (LRPD) detectives learned from multiple sources that Townsend was selling pound-levels of methamphetamine and carried firearms. On July 27, 2023, officers with LRPD conducted a controlled buy of methamphetamine from Townsend using a confidential informant. Officers then obtained a search warrant for Townsend’s residence. Upon execution of the search warrant, agents from the Drug Enforcement Administration (DEA) and LRPD officers located four firearms in Townsend’s bedroom, including a Glock .40 caliber firearm, a HI-Point 9mm firearm with a defaced serial number, a Ruger .40 caliber firearm, and a Smith & Wesson, 9mm firearm. During a search of the kitchen, agents and officers located approximately 219 grams of methamphetamine, 89 grams of fentanyl, and 228 grams of cocaine. Townsend’s criminal history includes a 2009 federal conviction out of the Eastern District of Arkansas for cocaine possession after multiple drug felonies. His second Eastern District of Arkansas federal conviction was for conspiracy to tamper with a witness. Townsend also has three separate felony convictions for possession of cocaine with intent to deliver, a felony conviction for possession of cocaine, two misdemeanor convictions for third-degree domestic battery, and a felony conviction for criminal attempt-furnishing, possessing, or using prohibited articles during his incarceration at the Pulaski County Regional Detention Facility. Townsend’s third federal conviction originated out of the Eastern District of Texas for being an inmate in possession of a prohibited object – weapon or knife. The investigation was conducted by the Drug Enforcement Administration with assistance from the Little Rock Police Department. The case was prosecuted by the U.S. Attorney’s Office for the Eastern District of Arkansas. # # # Additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar X (formerly known as Twitter): @USAO_EDAR


title: Felon Sentenced to 37 Months in Federal Prison for Illegal Firearm Possession

body_text: WASHINGTON – Cordell Simms, 32, a convicted felon residing in the District of Columbia, was sentenced yesterday to 37 months in prison for carrying a loaded semiautomatic pistol in a backpack while he was serving a period of supervised release and prohibited from possessing a firearm, announced U.S. Attorney Jeanine Ferris Pirro. Simms pleaded guilty Oct. 23, 2025, before Judge Emmet G. Sullivan to a charge of unlawful possession of a firearm by a felon. In addition to the 37-month sentence, Judge Sullivan ordered Simms to serve three years of supervised release. According to court documents, on Sept. 10, 2025, about 4:45 p.m. a Metropolitan Police officer responded to a report of a person with a gun in their waistband near 2nd and Farragut Streets NW. The officer canvassed the neighborhood in his marked cruiser and observed a man with a backpack – later identified as Simms. Simms spotted the police officer and handed his backpack to a minor child. The child immediately began walking toward the front door of a nearby home. The officer intercepted the child and told her to drop the backpack. Simms began to run and led police on a lengthy foot chase. Police caught and detained Simms and inspected the backpack. Inside the bag police recovered a Ruger SR40, .40 caliber semi-automatic handgun with an obliterated serial number that was fitted with a laser sight. The Ruger was loaded with one round in the chamber and 11 rounds in the magazine. Simms did not have a license to carry a firearm in the District. A criminal history check revealed he had been convicted of attempted assault with a dangerous weapon, had been sentenced to 18 months in prison, and was therefore prohibited from possessing a firearm of any sort. At the time of his arrest in this case, Simms also was on supervised release following convictions of simple assault, second degree theft, and two counts of contempt. This case was investigated by the MPD with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives – Washington Field Office. It was prosecuted by Assistant U.S. Attorney George Eliopoulos of the Violent Crime and Narcotics Trafficking Section. Simms spotted the police officer and handed his backpack to a minor child. The officer intercepted the child and told her to drop the backpack. Inside Simms’ bag, police recovered a Ruger SR40, .40 caliber semi-automatic pistol that was fitted with a laser sight. 25cr321 Follow us on X , Instagram , and YouTube Or at https://www.justice.gov/usao-dc


title: D.C. Man Sentenced to Two Years in Prison for Strangling His Pregnant Girlfriend in Front of His Mother

component: USAO - District of Columbia

body_text: WASHINGTON – Davon Willis, 28, of Washington, D.C., was sentenced yesterday to two years in prison, in D.C. Superior Court for charges related to strangling his pregnant girlfriend in August 2025, announced U.S. Attorney Jeanine Ferris Pirro. Willis was found guilty of one count attempted strangulation and one count of simple assault on June 23, 2026. The Honorable Carmen McLean ordered Willis to the prison term to be followed by three years of supervised release. According to the government’s evidence, on August 4, 2025, Willis and his pregnant girlfriend were having a verbal argument, when the defendant put his hands around his pregnant girlfriend’s neck after pushing her on to the bed. The defendant did this in front of his own mother, who ultimately called the police. Unfortunately, this was not a unique incident – the defendant had strangled the victim just a few months prior, which went unreported until a later date. Willis was arrested on August 5, 2025, and has been in custody since. Joining the announcement was Interim Chief Jeffery Carroll of the Metropolitan Police Department. In announcing the sentence, U.S. Attorney Pirro and Interim Chief Carroll commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged Assistant U.S. Attorney Randy Fultz, who prosecuted the case. 2025 FD3 009005


title: Armed Robber Pleads Guilty to 2023 and 2024 Crime Spree

body_text: WASHINGTON – Kwesi Pyne, 20, of Washington, D.C., pleaded guilty today, for a series of robberies committed in October 2023 and February 2024, announced U.S. Attorney Jeanine Ferris Pirro. Pyne pleaded guilty in the Superior Court of the District of Columbia, to two counts of armed robbery, two counts of possession of a firearm during a crime of violence, and one count each of assault with intent to commit robbery, attempted robbery and unauthorized use of a vehicle. Each armed robbery offense carries a maximum penalty of 30 years in prison and a mandatory minimum term of five years in prison. Superior Court Judge Judith Pipe scheduled sentencing for December 18, 2026. According to the government’s evidence, at approximately 9:30 a.m., on October 30, 2023, Pyne approached the victim in the alley behind 940 Randolph Street NW. The victim was on his way to work when the defendant approached him from behind and demanded that he hand over his car keys. When the victim refused, Pyne struck him multiple times, insisting on the keys. A bystander attempted to intervene, until the defendant produced a firearm, pointed it at the victim, and again demanded the car keys from the victim. The victim complied and threw the keys away from himself, Pyne retrieved them and walked towards the victim’s car, and the victim followed. As the victim attempted to gain entry into his own car, on the passenger side, the defendant entered the vehicle and drove away. At the time of this offense, Pyne was 17 years old, and this offense was prosecuted by the United States Attorney’s Office under Title 16 of the D.C. Code. On February 7, 2024, at approximately 9:00 a.m., Pyne approached another victim, as he was standing in an alleyway in the 3100 Block of Mount Pleasant Street NW, preparing to begin his work as a plumber. The defendant entered the alleyway, looked over the victim’s work tools and then turned to the victim. Pyne produced a firearm and demanded the victim’s wallet, and when the victim refused to hand it over, the defendant struck him in the face with the firearm before asking for it again. The defendant fled the scene without the wallet. The victim sustained a laceration to his face. On February 12, 2024, at approximately 5:35 p.m., Pyne and other accomplices rode to 915 Spring Road, NW, outside of Raymond Education Campus, on bicycles. The victim had just arrived at that location and parked her car, a black Honda CRV, on the side of the road. She went inside the school, leaving her car running. One member of the group entered the car without permission and drove it away. Later this same day, at approximately 9:30 p.m., three victims were standing nearby a liquor store on Mount Pleasant Street NW, waiting for a family member, when the stolen black Honda CRV arrived and Pyne got out of the driver’s seat. A second accomplice exited the rear passenger seat. Both Pyne and his accomplice were armed, and they approached the three victims. One of the victims began to run, but Pyne pursued him, dragging him to the ground by the backpack the victim was wearing. Pyne then tore the backpack off the victim while pointing the firearm at his head. At the same time, the accomplice, holding the other two victims at gunpoint, went through their pockets and took, among other things, one victim’s cell phone and wallet. Both Pyne and his accomplice then re-entered the stolen CRV, with the victims’ belongings, and Pyne drove away. Pyne was arrested on February 16, 2024, and has been in custody since. Joining the announcement was Interim Chief Jeffery Carroll of the Metropolitan Police Department. This case was investigated by the Metropolitan Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey Comber. 2024 CF3 001561


title: Armed Waterbury Drug Dealer Sentenced to 5 Years in Federal Prison

component: USAO - Connecticut

body_text: David X. Sullivan, United States Attorney for the District of Connecticut, today announced that FELIX NARVAEZ, 55, of Waterbury, was sentenced yesterday by U.S. District Judge Kari A. Dooley in Bridgeport to 60 months of imprisonment and four years of supervised release for a firearm possession offense. According to court documents and statements made in court, between September and November 2024, Waterbury Police made multiple controlled purchases of cocaine from Narvaez. Narvaez was arrested on state charges on November 7, 2024. On that date, investigators searched his residence and vehicle and seized a loaded Ruger P90 .45 A.C.P handgun. cocaine that Narvaez intended to distribute, nearly $3,000 in cash, and other items. Narvaez’s criminal history includes state felony convictions for firearm, assault, and controlled substances offenses. Narvaez has been detained since his arrest. On April 9, 2026, he pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Mary G. Vitale.


title: San Diego County Man Federally Charged with Mailing to Temecula Mosque Letter Threatening to Perpetrate Mass Murder of Muslims

component: USAO - California, Central

body_text: RIVERSIDE, California – A San Diego County man has been federally charged with mailing to a mosque in Riverside County a letter that included threats of perpetrating a mass killing of Muslims, the Justice Department announced today. Louis White, 60, of Warner Springs, was charged Thursday in a federal criminal complaint with mailing threatening communications. White is in state custody but is expected to be transferred to federal custody in the coming weeks. According to an affidavit filed with the complaint, on August 26, the Islamic Center of Temecula Valley, a mosque in Temecula, reported to law enforcement that it had received a threatening letter that read, in part, “I CANNOT WAIT FOR THE DAY TO KILL EVERY ONE OF YOU, IT CANNOT COME SOON ENOUGH!” Under the text was a hand drawing of crosshairs containing a bearded face with X’s for eyes and wearing a hat stating, “[expletive] Allah.” Law enforcement investigated and traced the letter to White. During a search of White’s residence on August 29, law enforcement seized several firearms, including one believed to be an AR15-style short-barreled rifle with no serial number – commonly referred to as a “ghost gun.” White was arrested and is currently in state custody in a Riverside County jail. A criminal complaint contains merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, White would face a statutory maximum sentence of five years in federal prison. The United States Postal Inspection Service and the Riverside County Sheriff’s Department are investigating this matter. The Temecula Police Department provided assistance. Assistant United States Attorney Barr Benyamin of the General Crimes Section is prosecuting this case.


title: District of Arizona Charges 265 Individuals for Immigration-Related Criminal Conduct this Week

component: USAO - Arizona

body_text: PHOENIX, Ariz. – During the week of enforcement operations from Aug. 29 through Sep. 4, 2026, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 265 individuals. Specifically, the United States filed 128 cases in which aliens illegally re-entered the United States, and the United States also charged 124 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 12 cases against 13 individuals responsible for smuggling illegal aliens into and within the District of Arizona. These cases were referred or supported by federal law enforcement partners, including U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO), ICE- Homeland Security Investigations (ICE-HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the FBI, the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Recent matters of interest include: United States v. Andrew Lee Esquivel. On August 29, 2026, Andrew Lee Esquivel was charged by criminal complaint with Transportation of an Illegal Alien. On August 28, 2026, a Pinal County deputy conducted a traffic stop on a Chevrolet Trax on I-10. As the deputy approached the Trax, he saw the passenger lying on the floorboard of the car. The car also contained a camouflage backpack, camouflage clothing, and carpet shoes in the back seat. When the deputy returned to his vehicle, the passenger fled on foot and ran across both lanes of traffic. The passenger was located 2 hours later, several miles away from the original stop. Border Patrol agents confirmed the passenger is a citizen of Mexico, unlawfully present in the United States. [26-MJ-6362] United States v. Julian Beltran-Montoya. On September 3, 2026, Julian Beltran-Montoya, was charged by criminal complaint with Reentry of a Removed Alien. Beltran-Montoya had been previously removed from the United States in 2020. In 2012, he was convicted of Conspiracy to Possess with Intent to Distribute Methamphetamine, in the United States District Court, District of Wyoming. Beltran-Montoya was sentenced to 120 in prison, followed by 5 years of supervised release in that case. [26-MJ-3322] A criminal complaint is a formal accusation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. RELEASE NUMBER: 2026-152_September 4, 2026 Immigration Enforcement # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Fairbanks man sentenced to 30 years for carrying a machinegun during a drug trafficking crime

component: USAO - Alaska

body_text: FAIRBANKS, Alaska – A Fairbanks man was sentenced yesterday to 30 years in prison for carrying a machinegun during a drug trafficking crime. According to court documents, in early 2025, the Fairbanks Police Department conducted eTraces on firearms recovered at multiple crime scenes. Several firearms were linked to Mason Lanon, 23. The Bureau of Alcohol, Tobacco, and Firearms (ATF) ran a query in the ATF National Tracing Center (NTC) for Lanon. They determined that between September 2024 and March 2025, Lanon purchased 20 firearms from licensed firearms dealers. Five of the firearms purchased by Lanon were recovered and linked to crimes in the local area. ATF contacted FFLs in the Fairbanks area for records of Lanon’s firearm purchases. Between the NTC and FFL records, Lanon was associated with over 70 firearms in a one-year period. As part of the investigation, on May 26, 2025, law enforcement conducted a controlled purchase for one firearm from Lanon. On Aug. 7, 2025, law enforcement conducted another controlled purchase of one firearm with a suspected machinegun conversion device (MCD) installed and over 14 grams of cocaine from Lanon. During this purchase, Lanon was in possession of a second firearm with an MCD installed. Investigators concluded that Lanon is the leader of a local gang known as the Soul Reaper Gang and built a reputation as the “go to guy” for gangs in Fairbanks to obtain firearms and some drugs. On Nov. 20, 2025, Lanon was indicted by a federal grand jury with one count of unlicensed dealing in firearms, one count of distribution of a controlled substance and one count of carrying a machinegun during a drug trafficking crime. On June 2, Lanon pleaded guilty to one count of carrying a machine gun in relation to a drug trafficking crime. “Mr. Lanon’s illegal firearm and drug dealing directly fueled violence and crimes throughout the Fairbanks community, including within his gang affiliations,” said U.S. Attorney Michael J. Heyman for the District of Alaska. “This sentence should serve as a reminder that the act of carrying a machinegun during a drug trafficking crime will result in decades behind bars. I commend our law enforcement partners for uncovering the extent of Mr. Lanon’s trafficking and ceasing his ability to continue his reign of chaos.” “I cannot overstate the dangerousness of machinegun conversion devices (MCDs), especially in the hands of violent criminals,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “The illegal trafficking of these devices, particularly alongside firearms and narcotics, represents a direct and serious threat to our communities. Offenders like Mr. Lanon should take note: ATF will leverage every investigative tool and partnership available to take these illegal devices off the streets to prevent them from being used to fuel violent crime.” “Mr. Lanon’s actions put firearms directly into the hands of individuals committing violent crimes in Fairbanks,” said Fairbanks Police Department Chief of Police Ron Dupee. “FPD's firearm tracing and investigative assistance played a key role in stopping that pipeline. We will not tolerate gun traffickers operating in our city threatening our way of life.” The ATF Anchorage Field Office, Alaska State Troopers and Fairbanks Police Department investigated the case, with assistance from the DEA Anchorage Field Office. Assistant U.S. Attorney Carly Vosacek prosecuted the case. ###


title: Ohio Company Pleads Guilty in Worker Death Case

component: Energy and Natural Resources Division

body_text: An Ohio corporation pleaded guilty this week in federal court in the Southern District of Ohio to a charge of negligent endangerment. The criminal charge is related to an explosion that resulted in the death of one employee and injuries to several more. Yenkin Majestic Paint Corporation operated a coatings and resin manufacturing facility in Columbus. As part of the resin manufacturing process, Yenkin would heat ingredients in large steel vessels known as “kettles.” In 2020 Yenkin decided to fabricate and install a new door, known as a “manway” on the top of Kettle 3. Working in conjunction with a local fabrication company, Yenkin installed the new manway in December 2020. Despite several examples of Kettle 3 seeing high pressure spikes, Yenkin never pressure tested the new manway before placing it back in service. Once installed, it immediately began leaking. Nevertheless, Yenkin continued to utilize Kettle #3, opting instead to add a thicker gasket, which Yenkin erroneously believed to be made of Teflon (but was actually silicone). On April 8, 2021, Yenkin was in the process of producing a resin in Kettle #3. Unbeknownst to the operator, the agitator inside Kettle 3 had stopped, likely due to electrical work Yenkin was conducting at the time. Around midnight, the operator turned the agitator back on, causing the contents to vaporize and increasing the pressure inside the kettle. Moments later, Kettle 3’s closed manway and gasket could no longer contain the pressure and began to release a mixture of hot resin liquid and flammable solvent vapor into the resin plant and then into adjacent operating areas of the plant. Multiple flammable gas detectors inside the facility started detecting an increasing concentration of flammable vapors during the release. However, the flammable gas detectors were not configured to sound an audible alarm. At 12:04 a.m., the released flammable vapors found an ignition source and exploded, which led to the death of one employee and severe injuries to several others. The explosion also damaged the resin plant and nearby structures. “When safety protocols aren’t followed, pressurized equipment can cause terrible accidents like the tragedy at Yenkin in 2021,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “The company is pleading guilty to negligent endangerment, because their actions, or inactions, created a manufacturing environment that resulted in death and severe injury. Our hope in highlighting this case is that other manufacturers will vigilantly protect the safety of their workers and properly operate their equipment.” “Companies that use hazardous chemicals have a responsibility to prevent releases that put people in danger of death and serious bodily injury,” said Assistant Administrator Jeffrey A. Hall of EPA’s Office of Enforcement and Compliance Assurance. “The resulting incident caused a tragic loss of life, injuries, and property damage. EPA will continue to hold companies accountable when they put workers and the public at risk by ignoring basic safety and emergency procedures.” “Employees deserve to be protected from danger in the workplace – and we will hold companies accountable to that obligation,” said U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio. “This tragic circumstance serves as a stark reminder to all manufacturers that safety requirements must be followed.” “Companies have an obligation to protect their workers,” said Ohio Attorney General Andy Wilson. “Yenkin failed to keep its employees safe, and as a result, one person died and several others were injured. This guilty plea provides a measure of accountability for Yenkin’s failures.” “This devastating incident underscores the serious consequences of why environmental safeguards and proper operating procedures matter,” said Ohio Environmental Protection Agency Director John Logue. “Ohio EPA remains committed to protecting Ohio’s communities and natural resources and holding regulated facilities accountable for meeting their environmental obligations.” The case was investigated by the U.S. Environmental Protection Agency (EPA)’s Criminal Investigation Division, the Ohio Attorney General’s Office Bureau of Criminal Investigation, and the Ohio Environmental Protection Agency Special Investigations Unit, with support from the U.S. Department of Labor, Occupational Safety and Health Administration. Senior Trial Attorney and Assistant U.S. Attorney Adam Cullman for ENRD and the Southern District of Ohio and Assistant U.S. Attorney David Twombly for the Southern District of Ohio are prosecuting the case.


title: Mexican National Pleads Guilty to Laundering More than $4M in Drug Trafficking Proceeds

component: Criminal Division

body_text: A Mexican national, Carlos Erick Vazquez Gonzalez, 48, pleaded guilty today for his role in the laundering of approximately $4 million in drug trafficking proceeds in the United States and the return of those proceeds via cryptocurrency to Mexico as part of a money laundering conspiracy. According to court documents, Vazquez Gonzalez worked with “money brokers” who arranged for the collection of drug profits in cities throughout the United States, which he then laundered and returned through cryptocurrency to Mexico. Vazquez Gonzalez accepted the deposit of approximately $4 million of these narcotic proceeds into a cryptocurrency wallet that he controlled. Vazquez Gonzalez then quickly moved the money to conceal or obfuscate its origins. He also sold the cryptocurrency for U.S. dollars in Mexico and returned the bulk cash to the “money broker” who arranged the pick-up of drug proceeds in the United States. Vazquez Gonzalez received an estimated $40,000 in commission for his participation. Vazquez Gonzalez pleaded guilty to money laundering conspiracy. He is scheduled to be sentenced on Dec. 17 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division, U.S. Attorney Jason Parman for the Eastern District of Kentucky, and Special Agent in Charge Jim Scott of the Drug Enforcement Administration (DEA) Louisville Field Division made the announcement. The DEA Lexington Resident Office investigated the case, working closely with the Detroit Field Division and Rocky Mountain Field Division and assisted by DEA offices in Mexico, Minneapolis, St. Louis, Birmingham, Chicago, Cincinnati, Tulsa, Oklahoma City, Louisville, Baltimore, Des Moines, Milwaukee, Portland, Columbia, and Rapid City, with Internal Revenue Service (IRS) Criminal Investigation. Deputy Chief Elizabeth R. Rabe of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) and Deputy Chief Todd Bradbury for the Eastern District of Kentucky are prosecuting the case. MNF’s mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations. MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims. This prosecution is also part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159 , Protecting the American People Against Invasion. 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, HSTF directs the full might of U.S. 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, HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. HSTF utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.


title: Mexican National Pleads Guilty to Alien Smuggling Conspiracy Using an Underground Tunnel

body_text: A Mexican national, Luis Carlos Davalos-Lopez, 29, pleaded guilty today in El Paso, Texas, to conspiracy to bring in aliens to the United States. According to court documents, Davalos-Lopez conspired with others to smuggle migrants through an underground tunnel from Ciudad Juarez, Mexico, to El Paso, Texas. “This defendant demonstrated a total disregard for our nation’s laws by conspiring to smuggle illegal aliens into the United States through a tunnel that ran from Mexico under the U.S. border into Texas,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “This shows that smugglers will stop at nothing to move illegal aliens into the United States for profit. The Department of Justice is sending a clear message that those who undermine the integrity of our borders will be investigated and prosecuted.” “The defendants in this case were key figures in a criminal enterprise that has had a heavy, detrimental impact on both sides of the border, smuggling drugs and illegal aliens into the U.S. while also trafficking firearms into Mexico, firearms which were then used to further facilitate the movement of drugs and illegal aliens into this country,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “The convictions secured in this case are just another nail in the coffin for these transnational criminal organizations and foreign terrorist organizations. With the full force of the Homeland Security Task Force and Joint Task Force Alpha behind us, we will accomplish our mission of eradicating these groups and ending their reign of terror.” “Davalos-Lopez and his co-conspirators thought they could exploit the United States southern border utilizing a secret tunnel which was constructed by the foreign terrorist organization, Cartel de Jalisco Nueva Generacion to facilitate their illegal activities in smuggling of humans, drugs, and firearms,” said Acting Special Agent in Charge Coult W. Markovsky of the FBI El Paso Field Office. “The discovery of this tunnel and the subsequent convictions related to those who were part of this operation underscores the FBI’s and our partners’ never-ending commitment to dismantle trafficking by the foreign terrorist organization, CJNG.” “Criminals who traffic human beings and firearms are exactly the individuals ATF works every day to stop,” said ATF Director Rob Cekada. “Our focus is squarely on violent offenders and the criminal networks that threaten public safety. If you fuel cartel violence or exploit our communities, we will find you and hold you accountable.” “Today’s guilty plea reflects the relentless work of law enforcement to dismantle foreign terrorist organizations like CJNG,” said Special Agent in Charge Robert “Eric” Castañeda of the DEA’s El Paso Division. “No matter the concealment tactics, smuggling methods, or illicit finance networks used, DEA will track down those responsible and ensure they face justice.” “Members of foreign terrorist organizations, such as the Cartel de Jalisco Nueva Generacion, pose a serious threat to the safety and security of our communities and our nation,” said HSI Acting Executive Associate Director John A. Condon. “Exploiting vulnerable individuals for profit while facilitating movement of weapons, drugs or resources to terrorist organizations will not be tolerated. HSI will aggressively pursue those who enable these criminal networks and hold them accountable for the grave consequences of their actions. There is no place in our communities for individuals who profit from human suffering or knowingly strengthen terrorist organizations.” Photo of tunnel discovered between Ciudad Juarez, Mexico and El Paso, Texas In January 2025, federal law enforcement located a sophisticated tunnel between Ciudad Juarez and El Paso. Intercepted phone calls between Davalos-Lopez and other individuals revealed conversations regarding the smuggling of aliens through the tunnel and included references to charging aliens upwards of $30,000 to utilize the tunnel for purposes of entering the United States unlawfully and without inspection. In several of these intercepted phone calls, Davalos-Lopez specifically referred to a tunnel that exists between Juarez and El Paso and discussed how many migrants cross through the tunnel and how much is charged to use the tunnel. Davalos-Lopez and his co-defendants were indicted in April 2025. The Government of Mexico, pursuant to its National Security Law, subsequently transferred Davalos-Lopez to the United States. Davalos-Lopez pleaded guilty to one count of conspiracy to bring in aliens to the United States. A sentencing date has not yet been set. Davalos-Lopez faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Davalos-Lopez’s co-defendant, Maria Del Rosario Navarro-Sanchez, 40, of Mexico, previously pleaded guilty on Aug. 27 to conspiring with others to provide material support to the Cartel de Jalisco Nueva Generación (CJNG) by trafficking firearms from the United States to Mexico, for the express purpose of delivering those firearms to members of CJNG. Gustavo Castro-Medina, 29, of Mexico, also previously pleaded guilty to serving as an intermediary to facilitate the interstate and foreign transfer of $3,000 in U.S. currency via wire to an undercover agent to purchase firearms for subsequent unlawful transport. The Federal Bureau of Investigation (FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI) in El Paso, assisted by the U.S. Border Patrol, investigated the case. ATF legal attachés in Mexico City and Mexico’s Fiscalía General de la República Organized Crime Unit (FGR-FEMDO) provided substantial assistance. HSI’s Human Smuggling Unit in Washington, D.C., and CBP’s National Targeting Center International Interdiction Task Force also provided assistance with the investigation. The Justice Department’s (DOJ) Office of International Affairs provided significant assistance. Trial Attorney Marie Zisa of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Gregory McDonald for the Western District of Texas are prosecuting the case. The investigation and superseding indictment were supported and prosecuted by Joint Task Force Alpha (JTFA), the DOJ’s lead effort in combating high-impact human smuggling and trafficking committed by cartels and Transnational Criminal Organizations (TCOs). A highly successful partnership between the DOJ and the Department of Homeland Security (DHS), JTFA investigates and prosecutes human smuggling and trafficking and related immigration crimes that impact public safety and border security. JTFA’s mission is to target the leaders and organizers of cartels and TCOs involved in human smuggling and trafficking throughout the Americas. The Attorney General has elevated and expanded JTFA to target the most prolific and dangerous human smuggling and trafficking groups operating not only in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras, but also in Canada, the Caribbean and the maritime border, and elsewhere. Led by the Criminal Division’s Human Rights and Special Prosecutions Section and supported by the Money Laundering, Narcotics and Forfeiture Section, the Office of International Affairs, and the Office of Enforcement Operations, among others, JTFA has dedicated Assistant U.S. Attorneys from the Southern District of California; District of Arizona; District of New Mexico; Western and Southern Districts of Texas; Southern District of Florida; Northern District of New York; and District of Vermont. JTFA also partners with other U.S. Attorney’s Offices throughout the country and supports high-priority cases in any district. All JTFA cases rely on substantial law enforcement resources from DHS, including HSI and Customs and Border Protection U.S. Border Patrol and Office of Field Operations, as well as FBI and other law enforcement agencies. To date, JTFA’s work has resulted in more than 482 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling and/or trafficking; more than 433 U.S. convictions; and more than 369 significant jail sentences imposed and forfeitures of substantial assets. This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159 , Protecting the American People Against Invasion. 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, HSTF directs the full might of U.S. 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, HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. HSTF utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.


title: Justice Department Secures Agreement with Mount Sinai to End Pediatric “Gender-Affirming Care”

component: Office of the Attorney General

body_text: Today, the Department of Justice announced an agreement with Mount Sinai Health System (“Mount Sinai”) that resolves an investigation into potential violations of federal law arising from its provision of sex-rejecting procedures on children—often described as “gender-affirming care.” Under the agreement, Mount Sinai, one of the largest health care providers in the state of New York, will cease providing these interventions to minors, including by administering puberty blockers and cross-sex hormones and performing surgical procedures. Mt. Sinai will also pay a monetary penalty and dedicate $2 million to providing free medical care to individuals suffering harmful consequences of “gender affirming care” they received as children. This announcement follows similar agreements with Texas Children’s Hospital , the Cleveland Clinic Foundation , and Connecticut Children’s Hospital . In working towards this resolution, the United States acknowledged that Mount Sinai took significant steps entitling it to credit for cooperation with the Department in its investigation. At all times during the investigation, Mount Sinai remained cooperative, proactive, and solution-driven, as evidenced by its multimillion-dollar commitment to detransition care. “The Department of Justice is committed to holding accountable medical providers that violate federal law and endanger children through so-called gender-affirming care,” said Attorney General Todd Blanche. “This agreement puts an end to these practices at Mount Sinai and provides meaningful relief for individuals who have already suffered harm.” “A growing number of hospitals, like Mount Sinai, have recognized the medical scandal of sex-rejecting procedures,” said Assistant Attorney General Brett Shumate of the Civil Division. “While we are grateful when we secure resolutions to end this discredited practice and protect children, we must not and will not rest in our pursuit of justice for the victims it has left behind.” “The Northern District of Texas remains committed to holding medical providers, hospitals, and pharmaceutical companies accountable for unsound medical practices and procedures that put our kids at risk,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “This settlement is a step in the right direction, and we will continue to use all of our civil and criminal tools to hold these actors and entities accountable when they violate federal law when providing this so-called care.” The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Enforcement and Affirmative Litigation Branch and the Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Northern District of Texas, the U.S. Department of Health and Human Services, Office of Inspector General, and the Food and Drug Administration Office of Criminal Investigations. In January 2025, President Trump issued an order "Protecting Children from Chemical and Surgical Mutilation," directing the Department of Justice to prioritize investigations and enforcement actions involving violations of federal law in the provision of so-called “gender-affirming care” to children. In April 2025, Attorney General Pam Bondi issued a memorandum on "Preventing the Mutilation of American Children." Acting on these directives, the Civil Division launched a nationwide investigation into the child gender-transition industry. The investigation examines potential violations of the Food, Drug, and Cosmetic Act, the False Claims Act, and other federal health care laws, including fraudulent billing practices such as the use of false diagnosis codes to obtain payment from federal health care programs and private insurers. These schemes compound the harm inflicted on vulnerable children by fraudulently shifting the cost of potentially unlawful medical interventions to taxpayers and insurers. Today’s agreement is one result of that nationwide investigation. The Civil Division’s Enforcement & Affirmative Litigation Branch and Commercial Litigation Branch will continue to pursue these cases across the country, stop unlawful conduct, recover funds obtained through fraud, and hold accountable those who profit by violating federal law at children’s expense. The claims resolved by the United States in the agreements are allegations only, and there has been no determination of liability. Mount Sinai has denied all allegations.


title: Justice Department Reaches Proposed Consent Decree with Pinnacle,  One of America’s Largest Landlords, to Resolve Information Sharing and Algorithmic Coordination Claims

component: Antitrust Division

body_text: The Justice Department’s Antitrust Division filed a proposed consent decree today to resolve the United States’ claims against Pinnacle Property Management Services LLC, as part of its ongoing enforcement action in the Middle District of North Carolina against algorithmic coordination, the use of competitors’ competitively sensitive data, and other anticompetitive practices in rental markets across the country that artificially increase housing costs for the American people. Today’s proposed decree builds on the Justice Department’s success in obtaining settlements in the same enforcement action against RealPage Inc. and four other large landlords, Cortland Management LLC, Greystar Management Services LLC, LivCor LLC, and Willow Bridge Property Company LLC. “This administration will not tolerate illegal actions by corporate landlords that inflate housing prices for Americans,” said Associate Attorney General Stanley E. Woodward Jr. “The Department of Justice will fight for every American who is being taken advantage of by corporate greed.” “The Antitrust Division is diligent in our work of protecting consumers in housing markets, including by putting an end to practices by corporate landlords that illegally prevent honest competition that benefits renters,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “This consent decree is an important step in achieving affordable housing for Americans.” The United States, along with state co-plaintiffs, filed a complaint on Jan. 7, 2025, alleging that Pinnacle, with five other co-defendant landlords, actively participated in a scheme to set their rents using each other’s competitively sensitive information through pricing algorithms. Pinnacle and other landlords shared competitively sensitive data to generate pricing recommendations using RealPage’s algorithms, which also included anticompetitive rules that aligned pricing. Pinnacle and other landlords also conferred on competitively sensitive topics, such as pricing strategies, rents, and selected parameters for RealPage’s software. If approved by the court, the proposed consent decree would require Pinnacle to: Refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features; Refrain from sharing competitively sensitive information with competitors; Accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified pursuant to the terms of the consent decree; Refrain from attending or participating in RealPage-hosted meetings of competing landlords; and Cooperate with the United States’ claims against other defendants. As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlement within 60 days following the publication to Danielle Hauck, Acting Chief, Technology and Digital Platforms Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7050, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest. Pinnacle is a residential property manager headquartered in Frisco, Texas. Note : Read the Proposed Final Judgement here , the Stipulation and Order here , the Explanation of Procedures here , and the Competitive Impact Statement here .


title: Illegal Alien from Georgia Charged for Conspiracy to Launder Proceeds of $1.3B Health Care Fraud Scheme

component: National Fraud Enforcement Division

body_text: A federal grand jury in the District of Massachusetts returned an indictment yesterday charging Erekle Gugava, 33, an illegal alien from Georgia, with conspiracy for laundering proceeds in connection with a $1.3 billion health care fraud scheme. According to court documents, Gugava was a money launderer for the transnational criminal organization (the Organization) responsible for the largest health care fraud case ever prosecuted by the Department of Justice, as uncovered by Operation Gold Rush . The Organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar health care fraud and money laundering scheme to target, exploit, and steal from Medicare and other health insurers “Fraud networks cannot function without people willing to launder and transmit their proceeds — and deterring those facilitators is essential to safeguarding taxpayer resources,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As alleged in this indictment, Gugava allegedly helped facilitate a massive fraud on the American people by moving stolen proceeds through domestic and international financial channels. This indictment reflects our resolve to hold all participants in fraud networks accountable for their conduct.” As alleged in charging documents, Gugava purportedly owned ND Medical Solutions LLC (ND Medical), a durable medical equipment (DME) company located in Pennsylvania, between February and July 2025. During the limited five-month span of Gugava’s purported ownership, ND Medical submitted at least $1.3 billion in fraudulent DME claims to Medicare, private health insurance companies that contracted to provide Medicare supplemental insurance policies, private employer-sponsored plans, and other insurers. These insurers paid ND Medical approximately $6.5 million. As part of the scheme, Gugava facilitated the deposit and transfer of fraud proceeds. Among other things, he opened several bank accounts in the name of ND Medical — for which he was the sole signatory — and deposited checks from Medicare supplemental insurers and other health insurers into the ND Medical bank accounts. The funds were then ultimately transferred to various overseas bank accounts for the benefit of the Organization. As alleged in charging documents, the fraudulent claims relied, in part, on the stolen identities of citizens from Massachusetts, across New England, and throughout the United States to justify the fraudulent billings. Many of these individuals, including elderly and disabled Americans, reported their concerns to Medicare and its contractors after receiving explanation of benefit forms that reflected them purportedly receiving DME that they did not in fact receive, that was purportedly prescribed by doctors whom they had never visited, and purportedly delivered from ND Medical — a DME company with which they were unfamiliar. As further alleged, the Organization exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The health care fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources — Medicare and established private insurance carriers — giving the funds the initial appearance of legitimacy. Banking Surveillance Image of Gugava on Feb. 24, 2025, Related to ND Medical Bank Account Opening Banking Surveillance Image of Gugava on June 9, 2025 Gugava is charged with one count of money laundering conspiracy. If convicted, he faces a maximum penalty of 20 years in prison. Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Attorney Leah B. Foley for the District of Massachusetts; U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) Special Agent in Charge Roberto Coviello; FBI Special Agent in Charge Wayne A. Jacobs; U.S. Postal Inspection Service (USPIS) Boston Division Acting Inspector in Charge Justin Page; IRS Criminal Investigations Special Agent in Charge Thomas E. Demeo; Acting Special Agent in Charge Jeff Grimming of Homeland Security Investigations (HSI) New England; and U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA) Regional Director Kelly M. Lawson made the announcement. HHS-OIG, FBI, USPIS, IRS, HSI, and DOL-EBSA are investigating the case. Deputy Chief Kevin Lowell, Assistant Deputy Chief Jim Hayes, and Trial Attorneys Tiffany Wynn and Sarah Rocha of the National Fraud Enforcement Division’s Health Care Fraud Section and Assistant U.S. Attorney Meghan Cleary for the District of Massachusetts are prosecuting the case. On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs. The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.