title: Ringleader of a Multi-State Bank Fraud Scheme Sentenced to Five Years in Prison

component: National Fraud Enforcement Division

body_text: BIRMINGHAM, Ala. – A Sumter County man has been sentenced for his role in a multi-state bank fraud scheme, announced U.S. Attorney Phillip W. Williams Jr. U.S. District Judge Anna M. Manasco sentenced Eddarrius Tyjuan Wallace, 37, of York, Alabama, to 60 months in prison and a $25,000 fine. In May, Wallace pleaded guilty to conspiracy to commit bank fraud and bank fraud. “This type of fraud is a double problem: it steals money from the federal government and undermines the integrity of our banking system,” said U.S. Attorney Williams. “My office will continue to work closely with our law enforcement partners to investigate and prosecute those who steal from the government and manipulate the financial system for personal gain.” “The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit U.S Treasury refund checks meant for hard working taxpayers for their own private gain," said TIGTA Special Agent in Charge Joel Weaver. “TIGTA's mission is to protect the integrity of our nation's tax administration system. We are committed to working with our law enforcement partners to ensure that those who violate federal laws are prosecuted to the fullest extent possible.” According to court documents, between June and September 2023, Wallace organized and managed a multi-state bank fraud conspiracy targeting the fraudulent deposit and withdrawal of United States Treasury checks. Wallace recruited and trained others to carry out his fraud scheme. In June 2023, the scheme was brought to the attention of law enforcement when a bank in Tuscaloosa, Alabama, reported that two U.S. Treasury checks with forged endorsements had been deposited. Over the course of the conspiracy, multiple fraudulent deposits and withdrawals were made in Alabama and Mississippi totaling over $1.8 million. During this time, Wallace was on bond for state offenses. On September 19, 2023, officers with the Madison Police Department in Mississippi arrested Wallace and five others during a traffic stop. Wallace was the driver and had $11,969 of cash in his pocket. Officers searched the vehicle and found a fraudulent identification card, mail, and multiple bank debit cards with names that did not match any of the car’s occupants. 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 U.S. Treasury Inspector General for Tax Administration investigated the cases along with the Mississippi Attorney General’s Office and the Madison, Mississippi, Police Department. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.


title: California man sentenced to more than 3 years for drug trafficking

component: Drug Enforcement Administration (DEA)

body_text: BILLINGS – A California man who was found with 57 pounds of methamphetamine in his car, among other illicit drugs, was sentenced Thursday to three years and two months in prison, followed by five years of supervised release, Acting U.S. Attorney Mark Steger Smith said. Heriberto Eddie Garcia, 46, pleaded guilty in March 2026 to one count of possession with intent to distribute controlled substances. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that Garcia worked for a drug trafficking organization transporting meth, cocaine, fentanyl, and cash to various western states, including Montana. In late 2023, law enforcement learned from a source that Garcia was flying from Santa Ana, California, to Des Moines, Iowa, and then driving to Billings with a shipment of illicit drugs. At the direction of the DEA, Montana Highway Patrol troopers pulled Garcia over on Jan. 22, 2024, and with a warrant searched his car. They found 57 pounds of meth and a kilogram of cocaine. In an interview with law enforcement, Garcia said he had been in Des Moines and then South Dakota picking up money. He had travelled to Billings previously to pick up $70,000 for methamphetamine and fentanyl. The U.S. Attorney’s Office prosecuted the case. The DEA conducted the investigation.


title: Billings man sentenced to prison for posting bonds in exchange for sex

component: USAO - Montana

body_text: BILLINGS – A Billings bail bondsman who posted bond for an inmate in return for sexual favors was sentenced Wednesday to one year in prison, followed by three years of supervised release, Acting U.S. Attorney Mark Steger Smith said. Louis Christopher Ikeda, 46, pleaded guilty in April 2026 to one count of racketeering. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that Ikeda was using his position as a bail bondsman to leverage sexual favors from at least one female inmate at the Yellowstone County Detention Facility in November and December 2024. The only way to communicate with county inmates is through the jail’s communication system, which includes text messaging. On. Nov. 18, 2024, Ikeda began texting an inmate who had contracted the services of his bail bond company. Ikeda’s messaging quickly turned sexual, especially when the inmate brought up the topic of her $10,000 bail. The two discussed how much of a bond the inmate would need to pay Ikeda to be released and they finally settled on $300. The conversation then turned sexual in anticipation of her release. Ikeda posted the inmate’s bail on Dec. 2, 2024, and the two left the county jail together, driving to a secluded area where they had sex. The inmate later described “feeling pressured” into having sex with Ikeda. He always responded to her comments about being released from jail by expressing his desire to have sex with her. She also told investigators she believed her sexual encounter with Ikeda was in exchange for the reduced bond amount. Following the encounter with the first inmate, Ikeda contacted to two other inmates. He discussed bail with both and those conversations quickly turned sexual. Ultimately, he posted bond for both inmates for less than the required minimum premium amount. Both women later said they believed a sexual relationship with Ikeda was expected in exchange for his posting their bond. However, both were able to evade him after being released from the county jail. Assistant U.S. Attorney Thomas Godfrey prosecuted the case. The Department of Homeland Security, the Office of the Montana State Auditor, the Yellowstone County Sheriff’s Office, and the Montana Department of Corrections conducted the investigation.


title: Billings man sentenced to over 3 years in prison for possessing stolen gun

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

body_text: BILLINGS – A Billings man who was found with a stolen gun was sentenced Wednesday to three years and 10 months in prison, followed by three years of supervised release, Acting U.S. Attorney Mark Steger Smith said. Dalton Cole Hilliard, 28, pleaded guilty in April 2026 to one count of a prohibited person in possession of a firearm and one count of possessing a stolen firearm. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that Hilliard was found with a stolen gun after he and a partner were spotted in a Heights neighborhood where police were investigating a string of thefts on Dec. 7, 2025. Hilliard was on probation with the Montana Department of Corrections for a previous felony conviction and was wearing a GPS monitor. When investigators tracked the location history of the monitor it showed that Hilliard had been at multiple locations in the Heights and on the same street as one of the thefts. Billings police visited Hilliard, speaking to him outside his home. He acknowledged to officers that he and his associate had gone through the Heights and stolen numerous items, including a handgun which Hilliard said was in his truck. Officers searched the truck with a warrant and found the gun, along with numerous driver’s licenses, social security cards, vehicle keys, and other stolen items. Officers also learned the truck had been stolen. With a warrant, law enforcement searched Hilliard’s home, where they found a loaded 10 mm magazine for the stolen firearm. The U.S. Attorney’s Office prosecuted the case. The Billings Police Department and ATF conducted the investigation.


title: Billings man sentenced to 20 months in prison for assaulting, injuring girlfriend

component: Federal Bureau of Investigation (FBI)

body_text: BILLINGS – A Billings man who struck his girlfriend multiple times during an argument was sentenced Wednesday to 20 months in prison, followed by three years of supervised release, Acting U.S. Attorney Mark Steger Smith said. Isaiah Shawn-Sam Glenn, 30, pleaded guilty in April 2026 to one count of assault resulting in substantial bodily injury to a dating or intimate partner. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that Glenn assaulted his girlfriend while the two were arguing in his vehicle in Lodge Grass on Sept. 21, 2025. Big Horn County Sheriff’s deputies arrived and spoke with the victim, who said Glenn struck her multiple times. She was treated by EMTs and taken to an area hospital, where she was diagnosed with multiple injuries, including bilateral bruising on her neck and scratches on her face. The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.


title: New York Man Sentenced for Bank Fraud Conspiracy Following Homeland Security Task Force Investigation

body_text: BANGOR, Maine: A New York man was sentenced today in U.S. District Court in Bangor for conspiring to commit bank fraud. U.S. District Judge John A. Woodcock, Jr. sentenced Yongliang Deng , 35, to time-served (approximately one day) in prison to be followed by five years of supervised release. Deng was also ordered to pay restitution. Deng pleaded guilty on January 21, 2026. According to court records, Deng provided his personal information and government-issued identification documentation to a co-defendant, who used Deng’s information to apply for and obtain a residential mortgage loan from a Maine bank to buy a residence in Eddington. Deng obtained the mortgage by misrepresenting that he would occupy and use the property as his primary residence. During an interview with federal agents, Deng admitted that the Eddington property was an investment property that had been rented out, and that he had never resided there. The property was instead used to illegally cultivate marijuana. Neither Deng nor any property associated with the conspiracy was licensed through the Maine Office of Cannabis Policy. The FBI, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and IRS-Criminal Investigation (IRS-CI) investigated the case, with assistance provided by the Penobscot County Sheriff’s Office and the Maine Fire Marshal’s Office. 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. The Maine HSTF comprises agents and officers from FBI; HSI; DEA; IRS-Criminal Investigations; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Diplomatic Security Service; U.S. Customs and Border Protection; U.S. Border Patrol; Coast Guard Investigative Service; and Transportation Security Administration, with the prosecution being led by the United States Attorney’s Office for the District of Maine. ###


title: “Operation Last Call” Effort Results in Arrests of 44 for Illegal Firearms and Narcotics Offenses

body_text: NASHVILLE – Forty-four individuals were arrested on federal indictments over the weekend of August 19-23, 2026, as a part of a joint enforcement initiative combating the illegal sale of firearms and narcotics in Nashville, United States Attorney Braden H. Boucek announced today. Dubbed “Operation Last Call”, the Summer 2026 initiative combined the law enforcement efforts of the U.S. Attorney’s Office for the Middle District of Tennessee, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the U.S. Marshals Service (USMS), and the Metropolitan Nashville Police Department (MNPD). “This operation resulted in the indictments and arrests of dozens of individuals who have been illegally selling firearms and dangerous drugs like fentanyl, methamphetamine, and crack on the streets of Nashville,” said U.S. Attorney Braden H. Boucek. “This large-scale, months long effort shows that the combined efforts of federal and local law enforcement can have positive effects in the fight against the illegal trafficking of firearms and drugs.” As described in court filings, ATF, USMS, and MNPD utilized undercover federal agents to make controlled firearm and narcotics purchases from individuals in multiple areas of Nashville. The areas were determined after a three-year review of shots fired calls, shooting crimes, and analysis provided by the National Integrated Ballistic Information Network (NIBIN). Another law enforcement agency in another state then reviewed the collected data to determine focus areas without regard to population or socioeconomic factors. “This was a data driven operation,” U.S. Attorney Boucek said, “focused on real incidents of shootings and violent crime, many of which are drug related, that have victimized innocent civilians.” The operation seized over 160 firearms off the street, many of them assault-style rifles equipped with high-capacity magazines. Law enforcement also seized multiple “switches” or machine gun conversion devices which are illegal add-ons that turn pistols into machine guns. Finally, agents and detectives removed over two kilograms of methamphetamine, over one kilogram of fentanyl, and over half-kilogram quantities of powder cocaine and crack from Nashville’s streets. “Every illegal firearm removed from the hands of a violent offender or prohibited person and every illegal narcotic removed from our communities potentially saves lives,” said ATF Special Agent in Charge Jamey VanVliet. “The ATF is committed to disrupting violent crime in our communities, but ‘Operation Last Call’ would not have been successful without the partnerships and collaborative efforts of the men and women from the Metropolitan Nashville Police Department, the United States Marshals Service, and the United States Attorney’s Office.” “The U.S. Marshals Service specializes in apprehending fugitives, and we are always ready to work with our local and federal partners to make sure that defendants are apprehended so they can be held accountable in a court of law,” said Denny King, U.S. Marshal for the Middle District of Tennessee. “This hard work we put in during this operation shows that when law enforcement works together, we can deliver positive results for the citizens of our community.” “Operation Last Call is precision policing in the truest sense,” said Metro Nashville Police Chief John Drake. “The guns seized, totaling more than 150, will not be part of a future homicide, robbery or shooting incident. I am grateful to the front-line detectives in our Specialized Investigations Division, ATF agents, deputy U.S. Marshals and the U.S. Attorney’s Office for partnerships that are, indeed, making Nashville safer. That’s especially true in the vulnerable communities where data showed Operation Last Call should focus, including the Harding Place/I-24 corridor, Bell Road-Murfreesboro Pike area, Brick Church Pike-Trinity Lane corridor, and the Napier-Sudekum neighborhood. Residents in those communities deserve peaceful surroundings.” Twenty-seven of the forty-four individuals arrested have previous felony convictions for crimes such as aggravated assault, attempted aggravated robbery, being a felon in possession of a firearm, possessing a firearm during a dangerous felony, aggravated burglary, and narcotics trafficking. Ten defendants arrested were already on probation, parole, supervised release, or bond at the time of the alleged offenses. The individuals arrested on federal indictments during the operation include: KeDarious Bell , age 21, charged in two indictments with distribution of methamphetamine (two counts); possessing a firearm in furtherance of a drug trafficking crime; use or carry of a firearm during and in relation to a drug trafficking crime; possession of a machine gun; unlawful transfer of firearms (six counts); dealing firearms without a license (five counts) Kenyon Blackman , age 21, unlawful transfer of firearms (two counts); dealing firearms without a license (three counts) Taurus Booker , age 51, distribution of cocaine; felon in possession of a firearm Corian Bowling , age 26, conspiracy to distribute methamphetamine; distribution of 50 grams or more methamphetamine; possession of a firearm in furtherance of a drug trafficking crime James Braden , age 47, distributing 28 grams or more of crack cocaine; felon in possession of a firearm Gregory Brooks , age 30, conspiracy to distribute methamphetamine; distribution of 50 grams or more methamphetamine; felon in possession of a firearm Imari Calloway , age 20, unlawful transfer of firearms (three counts); dealing firearms without a license (four counts) Aron Capps , age 27, distribution of fentanyl Waldorf Coleman , age 42, felon in possession of a firearm Alexi Contreras , age 39, distribution of fentanyl Cory Cotton , age 45, distribution of fentanyl; distribution of crack cocaine; distribution of 40 grams or more of fentanyl Ulises Cruz , age 26, distribution of 50 grams or more of methamphetamine Brandon Dardy , age 39, distribution of cocaine; felon in possession of a firearm with prior convictions Lewis Dawson , age 26, felon in possession of a firearm; distribution of 50 grams or more of methamphetamine; distribution of crack cocaine; possession of a firearm in furtherance of a drug trafficking crime Miguel De La Rosa , age 24, distribution of 50 grams or more of methamphetamine; unlawful transfer of firearms Danny DeMoss , age 38, distribution of fentanyl; distribution of 40 grams or more of fentanyl Terry Fields , age 42, distribution of 50 grams or more of methamphetamine Latherio Fizer , age 42, distribution of cocaine, distribution of crack cocaine Brian Ging , age 28, possession of a firearm with an obliterated serial number William Givens , age 67, distribution of 28 grams or more of crack cocaine Tiffany Givens , age 42, distribution of 28 grams or more of crack cocaine (two counts) Easan Harris , age 19, possession of a machine gun conversation device William Henderson , age 37, distribution of fentanyl; distribution of 40 grams or more of fentanyl; distribution of 50 grams or more of methamphetamine, Tyrone Hudson , age 41, distribution of 50 grams or more of methamphetamine; use or carry of a firearm during and in relation to a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime Jerron Huey , age 40, distribution of 50 grams or more of methamphetamine; distribution of 5 grams or more of methamphetamine Aiden Johnson , age 20, distribution of 50 grams or more of methamphetamine; distribution of methamphetamine Peter McKinnie , age 46, distribution of 40 grams or more of fentanyl; possession of a firearm in furtherance of a drug trafficking crime Shomari Milliken , age 40, distribution of 40 grams or more of fentanyl with prior conviction Jeremy Mimms , age 38, felon in possession of a firearm (six counts); distribution of 50 grams or more of methamphetamine; distribution of 5 grams or more of methamphetamine Jermaine Morgan , age 27, charged in two indictments with possession of a machine gun conversation device (two counts); distribution of cocaine (two counts); felon in possession of a firearm Frank Newsom , age 38, felon in possession of a firearm (two counts); distribution of fentanyl James Oliver , age 39, felon in possession of a firearm; attempted distribution of fentanyl; possession of a firearm in furtherance of a drug trafficking crime Lilburn Reynolds , age 56, distribution of crack cocaine (two counts); use or carry of a firearm during and in relation to a drug trafficking crime; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm Barry Robertson , age 40, felon in possession of a firearm Ladon Robertson , age 40, distribution of 28 grams or more of crack cocaine; distribution of 40 grams or more of fentanyl; distribution of 50 grams or more of methamphetamine Timothy Schields , age 35, distribution of 50 grams or more of methamphetamine; distribution of 5 grams or more of methamphetamine Joshua Selmon , age 36, unlawful possession of a firearm after a misdemeanor domestic violence conviction; dealing firearms without a license Courtney Skinner , age 41, distribution of fentanyl; distribution of 40 grams or more of fentanyl; distribution of 50 grams or more of methamphetamine (two counts); possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm Tyler Sloan , age 30, distribution of 5 grams or more of methamphetamine; distribution of 5 grams or more of methamphetamine Cameron Thompson , age 26, distribution of 50 grams or more of methamphetamine; distribution of methamphetamine Andre Vaughn , age 37, distribution of 28 grams or more of crack cocaine Ronnie Wellington , age 47, distribution of 50 grams or more of methamphetamine; distribution of fentanyl Corey Wilson , age 43, distribution of 50 grams or more of methamphetamine (two counts); distribution of fentanyl; distribution of 40 grams or more of fentanyl; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm The indictments against all of the individuals arrested are allegations only. All individuals are presumed innocent until proven guilty in a court of law. The ATF’s Nashville Field Office, the USMS for Middle Tennessee, and the MNPD conducted the investigations for this operation. First Assistant U.S. Attorney Robert E. McGuire and Assistant U.S. Attorneys Rachel Stephens, Dina Shabayek, Brian Enright, Alex Bergida, and Carlin Hess are prosecuting the cases charged. #####


title: Former Serviceman Sentenced for Child Sexual Exploitation Crimes

component: USAO - Maryland

body_text: Baltimore, Maryland – A former serviceman received a federal-prison term, today, for committing child sexual abuse crimes. U.S. District Judge Matthew Maddox sentenced Daniel Lara-Salazar, 33, to 15.5 years in federal prison, followed by lifetime supervised release, for sexually exploiting a child. Lara-Salazar committed these crimes while serving in the U.S. Military. Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Akil Baldwin, Homeland Security Investigations (HSI) – Maryland; Sheriff Chuck Jenkins, Frederick County Sheriff’s Office; and J. Charles Smith III, State’s Attorney for Frederick County. According to his guilty plea, Lara-Salazar, who was stationed in Puyallup, Washington, coerced and enticed a minor female victim, who resided in Maryland, to engage in sexually explicit conduct. From June 2024, through July 2024, Lara-Salazar sexually exploited her by producing and causing the production of sexually explicit images and videos. In June 2024, Lara-Salazar began using Snapchat to message the minor victim. Then Lara-Salazar demanded the minor victim send sexually explicit images and videos to him. Snapchat has a feature that causes images to disappear upon receipt. In some instances, the minor victim sent images to Lara-Salazar that were not retained or visible when law enforcement reviewed the account. Law enforcement later discovered that Lara-Salazar used Snapchat to communicate with three other minor females, who lived in Texas and elsewhere. He also coerced and enticed them to send sexually explicit images. This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood 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 Project Safe Childhood, please visit justice.gov/psc . For more information about Internet safety education, please visit justice.gov/psc and click on the “Resources” tab on the left of the page. U.S. Attorney Hayes commended HSI, the Frederick County Sheriff’s Office, and Frederick County State’s Attorney’s Office for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Colleen Elizabeth McGuinn and Special Assistant United States Attorney Joyce R. King who prosecuted the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md . # # #


title: Wichita men sentenced for bringing cocaine & meth from California to Kansas

component: USAO - Kansas

body_text: WICHITA, KAN. – A Kansas man was sentenced to 37 months in prison for attempting to transport illegal narcotics from the West Coast to Wichita. According to court documents, Jonathan Umana, 29, of Wichita pleaded guilty to one count of interstate travel in aid of racketeering. In January 2024, Kansas Highway Patrol stopped Umana on in Ford County for speeding. After Umana gave illogical responses to questions, the trooper asked for permission to search the vehicle. Umana consented. The officer found approximately two pounds of methamphetamine and six pounds of cocaine in a backpack inside the car. Umana was arrested. An investigation revealed Umana had flown from Wichita to California to pick up the drugs then rented a vehicle to drive back to Kansas for intended distribution. Text messages show that that Christian Abel Ruiz, 44, of Wichita arranged for Umana to pick up the drugs from a source in California by supplying Umana with an address and phone number and instructions of where to deliver the drugs upon returning to Kansas. Ruiz pleaded guilty to one count of interstate travel in aid of racketeering and was sentenced to 60 months in prison. “The right to freely travel within our nation’s borders is central to the American way of life, but too often criminals exploit this easy access to bring in narcotics, weapons, and other unsavory elements that law abiding citizens don’t want in our communities,” said U.S. Attorney Ryan A. Kriegshauser. “We encourage Kansas law enforcement agencies confiscating narcotics they can prove crossed state lines to reach out to the Department of Justice. This is a federal offense, and a conviction may offer stiffer penalties for these offenses than at the state level.” The Kansas Highway Patrol (KHP) investigated the case. ###


title: Investiture ceremony marks Kriegshauser leadership

body_text: KANSAS CITY, KAN. – The U.S. Attorney’s Office -District of Kansas held an investiture ceremony at the Robert J. Dole Federal Courthouse in Kansas City, Kansas, for U.S. Attorney Ryan A. Kriegshauser. Chief Judge John W. Broomes administered the oath. Kriegshauser serves as the 43rd U.S. Attorney for the District of Kansas. He began serving as Interim U.S. Attorney in July 2025 and was eventually confirmed by the U.S. Senate in December 2025. An investiture is a formal, ceremonial event to mark the appointment. Judges, former U.S. Attorneys, law enforcement, and community members attended the event on August 21, 2026. Kriegshauser supervises the prosecution of all federal crimes and litigation of all civil matters in which the U.S. has an interest. He leads a staff of attorneys, paralegals, and support professionals working in offices associated with the federal courts in Wichita, Kansas City, and Topeka. “Nearly two-thirds of Kansas’ 420 law enforcement agencies have fewer than 10 full-time officers. We have been working with our partners to alleviate some of the strain on agencies feeling overwhelmed,” said Kriegshauser. “My goal is for the federal government to be a force multiplier in support of state and local officers. There are certain cases like transnational drug cartels and cybercrime that the federal government is in a unique position to bring criminals to justice.” Through the first 10 months of the fiscal year, USAO-KS projects for 427 indictments, which is fifth among the 25 medium USAO districts (up from 10th last FY) and 29th among all 94 districts in the country (up from 48th last FY). This caseload reflects a projected 39 percent increase for USAO-KS year on year. In particular, violent crime indictments are projected to be up 50% compared to last fiscal year. Here are some noteworthy sentencings, convictions, guilty pleas, and indictments since Kriegshauser took office. FINANCIAL FRAUD • Two former employees of the Wyandotte County District Court received prison sentences for using their positions in the accounting office to steal approximately $980,000 in taxpayer funds. • A federal jury convicted union leaders of racketeering, fraud, and embezzlement in a scheme involving theft of union-member dues through the award of no-show jobs, lavish travel, unearned vacation payouts, and an unauthorized $7 million loan made to a union-related bank. VIOLENT CRIME • Four defendants in a kidnapping received prison sentences in a crime where the victim was bound and blindfolded for approximately 10 hours. • An illegal alien from Mexico was sentenced to 20 years in prison for violently attacking a federal law enforcement agent, the maximum punishment allowed under the statute. The defendant assaulted and strangled an Immigration and Customs Enforcement (ICE) Deportation officer. PROJECT SAFE CHILDHOOD • A Kansas man was sentenced to 210 months in prison followed by a lifetime of supervised release after he directed a foreign national living in another country to create child sexual abuse material (CSAM) and send him the images. • A Kansas man was sentenced to 25 years in prison after he uploaded photographs of women and children he knew into a publicly available Artificial Intelligence platform. He then utilized AI to manipulate and merge their images into hundreds of depictions of child sexual abuse material. NATIONAL SECURITY • The FBI arrested three men on charges that they conspired to provide support ISIS, a foreign terrorist organization. The defendants allegedly discussed violent attacks on U.S. servicemembers. • An Oklahoma man pleaded guilty after lying to U.S. customs officials while attempting to board a flight to China with proprietary information belonging to his employer. FENTANYL & OTHER NARCOTICS TRAFFICKING • An illegal alien from Mexico was sentenced to 20 years in prison as the ringleader of a drug trafficking ring supplied by a Mexican cartel. A Homeland Security Task Force (HSTF) investigation led to the convictions of more than a dozen defendants who either worked for or were clients of the operation. • Fifteen defendants were sentenced to prison after the Homeland Security Task Force (HSTF) dismantled a Kansas City metro-based drug trafficking ring linked to Mexico. The smuggled cocaine was distributed in Kansas, Missouri, Illinois, Indiana, and the Washington, D.C. metropolitan area. Ryan A. Kriegshauser Kriegshauser began his legal career at a firm in Kansas City litigating constitutional claims, complex commercial litigation, and regulatory defense. Kriegshauser then led the Kansas Secretary of State's Office as Deputy Secretary of State for the Office of Legal Counsel and Policy before becoming General Counsel at the Office of the Kansas Securities Commissioner. In 2018, Kriegshauser entered private practice where his work included constitutional claims. election law, business litigation as well as other civil and criminal matters. Kriegshauser received a bachelor's degree from Georgetown University and a law degree from the University of Missouri at Kansas City. He continues to serve in the U.S. Navy Reserve as a Commander. ###


title: Hutchinson man pleads guilty to producing child pornography

body_text: WICHITA, KAN. – A Kansas man pleaded guilty to producing child sexual abuse material (CSAM). According to court documents, William “Bill” Bright, 58, of Hutchinson pleaded guilty to two counts of production of child pornography. In June 2025, Bright went to a Kansas truck stop for a sexual meetup with a 15-year-old girl with whom he’d been exchanging private messages. The “girl” was actually a law enforcement officer, and Bright was arrested. Officers obtained a search warrant for Bright's cellphone where they discovered CSAM images of two minor victims under 14 years old. Text messages indicate Bright requested the images from the victims and that he was aware the victims were minors. Bright is scheduled to be sentenced on November 12, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Homeland Security Investigations (HSI), Kansas Internet Crimes Against Children (ICAC) Task Force, and the Harvey County Sheriff’s Office are investigating the case. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . ###


title: North Carolina Man Who Sought Murder-for-Hire Plot Sentenced to Over 15 Years in Prison

body_text: PHILADELPHIA – United States Attorney David Metcalf announced that Xin Guang Guo, 48, of Plymouth, North Carolina, was sentenced this afternoon to 188 months in prison and three years of supervised release by United States District Judge Harvey Bartle III for his effort to pay another individual $30,000 to kill two people residing in the Philadelphia area. The defendant was arrested on a criminal complaint and warrant in October of last year, charged by indictment the same month, and pleaded guilty in April to two counts of using interstate commerce facilities in the commission of a murder-for-hire. As detailed in court filings and statements, on September 30, 2025, the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) received information that the defendant wanted to contract a hitman to murder his former business partner and the business partner’s paramour (“Person-1” and “Person-2”). Investigators received copies of text messages written by the defendant, whom they were able to identify as Xin Guang Guo, detailing his plan and providing identifying information about Person-1 and Person-2. In subsequent phone calls monitored by the ATF, Guo discussed the terms of the contract, in which he would pay $15,000 for each murder. Guo also arranged to meet an individual he thought was the hitman in Philadelphia on October 6, so Guo could give him $2,500 to buy a gun. At the October 6 meeting, the defendant gave the $2,500 to an ATF undercover officer and requested photographic proof that Person-1 and Person-2 had been murdered before he would pay the remaining balance. The agreement was made, Guo departed in his vehicle, and shortly thereafter was arrested by the ATF without incident. “The defendant orchestrated the death of two people,” said U.S. Attorney Metcalf. “It does not matter whether you pull the trigger or pay someone else to do it. It also does not matter that, in this case, the plan failed. Anyone who takes action to take the life of another faces a lengthy stay in federal prison.” “Xin Guang Guo thought he could get away with paying a killer to commit two murders for him, and even wanted photos of the bloody crime,” said ATF Philadelphia Field Division Special Agent in Charge Eric DeGree. “Our ATF Special Agents caught him cash-in-hand, and now he’s going to prison for a long time for his insidious crime.” This case was investigated by the ATF and prosecuted by Assistant United States Attorney Amanda McCool.


title: Arms Dealer Sentenced to Prison for Conspiring to Export American Made Ammunition Used in War Against Ukraine

component: USAO - New York, Eastern

body_text: Earlier today in federal court in Brooklyn, Italian national Manfred Gruber was sentenced by United States District Judge Hector Gonzalez to 18 months in prison for conspiracy to commit export control violations. Gruber pleaded guilty to the charge on March 30, 2026. Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; John A. Eisenberg, Assistant Attorney General of the Justice Department’s National Security Division; James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and David Peters, Assistant Secretary for Export Enforcement, U.S. Department of Commerce (DOC), announced the charges. “The defendant was held accountable for his scheme to send military‑grade ammunition to Kyrgyzstan before reexporting the ammunition to Russia to support its war effort,” stated United States Attorney Nocella. “Today’s sentencing reaffirms that people who illegally divert weapons will be brought to justice.” “Manfred Gruber's guilty plea reflects our unwavering commitment to enforcing U.S. export-control laws and protecting national security. His actions undermined federal regulations designed to safeguard our defense materials, and this outcome demonstrates that violations of these laws will be addressed with the utmost seriousness,” stated FBI Assistant Director in Charge Barnacle. As set forth in court filings, the defendant was the Director of Sales for Italian Company-1, a large wholesale distributor of firearms and ammunition. The defendant served as a key member of an international procurement network for Russia during its war against Ukraine, purchasing ammunition from the United States and reexporting it to Kyrgyzstan in violation of DOC licenses issued to Italian Company-1, which required that the ammunition stay in Italy. The defendant did not apply for, obtain, or possess a license to export or reexport ammunition to Kyrgyzstan. The defendant illegally exported ammunition worth over $540,000 from the United States to Kyrgyzstan, via companies that the defendant and his co-conspirator controlled in Italy. After reaching Kyrgyzstan, most of this ammunition was subsequently reexported to Russia. In one example of the defendant’s illegal transactions, U.S. Company-1, headquartered in Nebraska, had a license to lawfully export ammunition to Italian Company-1, but the ammunition could not be reexported out of Italy. In violation of the license, the defendant, using a cutout company, Italian Company‑2, reexported U.S. Company-1 ammunition to Sergei Zharnovnikov, an arms dealer from Kyrgyzstan who has since pleaded guilty to conspiracy to violate export controls by sending U.S.-made firearms and ammunition to Russia. A contract found on Zharnovnikov’s phone indicated that he had contracted with a Russian company for ammunition manufactured by U.S. Company-1. Zharnovnikov was sentenced to 39 months’ imprisonment earlier this year. See United States v. Zharnovnikov , 25‑cr‑45 (HG). In addition, U.S. Company-2, headquartered in Tennessee, had a license to lawfully export ammunition to Italian Company‑1, but the ammunition could not be reexported out of Italy. The defendant exported the ammunition from U.S. Company-2 to Italy, and then reexported the U.S. Company-2 ammunition from Italy to Kyrgyzstan. The defendant was aware that U.S. law prohibited the reexport of U.S. ammunition without further licenses, which he did not obtain. To help the unlawful export scheme succeed, the defendant took steps to disguise the true destination of the ammunition. For example, in encrypted messages on or about September 23, 2023, the defendant and a co-conspirator discussed splitting up a shipment of 100,000 bullets. In the defendant’s words, this was necessary “so it goes unnoticed” by “FBI.” The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Ellen H. Sise, Tara B. McGrath, and Adam Amir are in charge of the prosecution, along with Trial Attorney Leslie Esbrook of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Paralegal Specialist Jessica Spindler. The Defendant : MANFRED GRUBER Age: 61 Ora, Italy E.D.N.Y. Docket No. 26-CR-61 (HG)


title: Two Lenoir County Women Guilty in $180K COVID Fraud Case

component: Criminal - Criminal Fraud Section

body_text: WILMINGTON, N.C. – Two Lenoir County women, Kendra Edmondson, 39, and Britteny Dryer, 35, each pleaded guilty to Conspiracy to Commit Mail Fraud after they and others defrauded the federal government of more than $187,000 by submitting fraudulent North Carolina Housing Opportunities and Prevention of Evictions (NC HOPE) loan applications for emergency rental assistance. As part of the scheme, the defendants and their associates submitted fictitious tenant lease agreements for multiple Lenoir County properties to support those applications. Each faces up to thirty years in federal prison and a $1,000,000 fine when the court sentences them later this year. “These two lowdown fraudsters chose to milk the system by lining their pockets while hardworking taxpayers rolled up their sleeves during the pandemic. Do what your parents taught you, don’t steal. Cheaters. Never. Win,” said U.S. Attorney Ellis Boyle. Between November 2020 and December 2021, Edmondson, Dryer, and others submitted 23 fraudulent applications and collected more than $187,000 in federal government housing funds for their personal benefit. On March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial assistance to millions of Americans suffering economically from the Covid-19 pandemic. The CARES Act authorized $5 billion in Community Development Block Grant (CDBG) programs, giving states and localities flexible federal funding to prevent, prepare for, and respond to the pandemic. The United States Department of Housing and Urban Development (HUD) administers the CDBG program, which supports economic and community development and provides long‑term recovery funding to states and localities during disasters and emergencies. The State of North Carolina’s Office of Recovery and Resiliency (NCORR), a division of the North Carolina Department of Public Safety, used CARES Act federal funds to help North Carolina renters remain in their homes during COVID‑19 by preventing evictions and loss of utility services. The NC HOPE program used an initial $51.5 million allocation of CDBG funds from the CARES Act to provide housing and utility assistance. North Carolina also received CRF funds from the CARES Act, including $66 million allocated for administrative costs associated with the NC HOPE program. "This case reflects the strength of our partnerships with the USAO-EDNC and HUD-OIG in fighting fraud, waste and abuse that hurts our most vulnerable citizens,” said NCSBI Director, Chip Hawley. “Thanks also to USMS and the Kinston Police Department for their help. We will continue to aggressively target those who steal from hardworking taxpayers." Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. The United States Department of Housing and Urban Development – OIG (USHUD-OIG), and NCSBI are investigating the case. A copy of this press release is located on our website . Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:26-CR-14-M.


title: Henderson Drug Kingpin Sentenced to Almost 27 Years in Federal Prison

body_text: WILMINGTON, N.C. – A federal judge sentenced Alexander Trowbridge, also known as “Snow,” 41, of Henderson, NC, to almost 27 years in federal prison for conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl and more than 2.2 pounds of heroin; possession with intent to distribute fentanyl and heroin; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon. “Drug trafficking organizations can no longer hide in Eastern North Carolina,” said U.S. Attorney Ellis Boyle. “We shut down this network, and we are coming for the rest to clean these predators off our streets and protect the citizens. If you sell drugs, we will find you, prosecute you, and put you in prison for a long time. Simple lesson: Drugs kill; prison awaits—do right.” In August 2019, the DEA, ATF, and other state and local law enforcement agencies, including the Henderson Police Department, initiated an investigation into a drug trafficking organization (DTO) in Henderson, North Carolina. The DTO obtained kilogram-level quantities of heroin and fentanyl from New Jersey and sold the drugs throughout Vance, Durham, Warren, Wake, Wilson, Franklin, and Granville counties. They regularly distributed fentanyl in baggies marked with a “Toy Story” stamp; a trademark they used to identify their product. Law enforcement identified Trowbridge as the leader of the organization and, through controlled purchases along with physical and electronic surveillance, pinpointed several locations in Henderson used by the group, including 56 Kelly Road, 100 Kelly Road, and 66 Pinecone Lane. The group would hide heroin and fentanyl in various places inside residences, as well as in buckets, stacks of tires, or in the woods out around the property. Drone footage showed that members of the DTO regularly drove back and forth between 66 Pinecone Lane to 56 Kelly Road, from the stash house to the trap house. They conducted hand-to-hand transactions selling drugs to customers at the trap house. Trowbridge often used numerous drug mules to transport and sell his drugs. In one instance, authorities stopped one of his mules in Maryland and found more than 2 pounds of fentanyl in the mule’s car. The investigative findings set the stage for the next phase of the operation, culminating on November 17, 2022, when law enforcement simultaneously executed search warrants at 66 Pinecone Lane, 56 Kelly Road, and 100 Kelly Road. During those searches, authorities seized the following: • 66 Pinecone Lane: 38 grams of a heroin/fentanyl mixture stamped with a “Toy Story” emblem (found in a bucket in the wood line) Four shotguns Four rifles A loaded 9mm handgun A 31‑round magazine A .45‑caliber handgun Multiple firearm magazines, including a drum magazine More than 2,000 rounds of assorted ammunition • 56 Kelly Road: A .40‑caliber firearm A large‑capacity magazine 25 rounds of .40‑caliber ammunition Four rounds of .38‑caliber ammunition $10,304 in U.S. currency A stolen firearm • 100 Kelly Road: A loaded rifle $88,931 in U.S. currency A loaded 9mm handgun with an extended magazine 80 grams of heroin and fentanyl stamped with a “Toy Story” emblem (found in a bucket in the woods between 56 Kelly Road and 100 Kelly Road) Several DTO members have already been convicted and sentenced in federal court for their roles in the drug trafficking organization. Bridgett Burrows; seven and a half years in federal prison; Marques D. Gray eight years; Daquan Lovely; eight years and one month; Joseph Trowbridge; seven years; and Dwayne Trowbridge eight years. To view press conference go to: https://youtu.be/F0447PvHZ3Q?si=7maFYBu9KpHnyEa3 “This sentence reflects the commitment of law enforcement agencies working together to hold those who traffic fentanyl accountable,” said Jae W. Chung, Special Agent in Charge of the DEA Atlanta Field Division. “Through strong partnerships and coordinated enforcement, we will continue disrupting the flow of this deadly drug and doing everything we can to keep our communities safe. Together, we are working toward a Fentanyl Free America.” “This investigation is another example of what can be accomplished when local, state, and federal law enforcement agencies work together toward a common mission. Partnerships make our communities safer and send a clear message to drug traffickers: there is no jurisdictional boundary that will protect you from our unified law enforcement efforts,” said Marcus Barrow, Henderson Police Chief. This prosecution is part of Operation TYM 2 Block the Bridge 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. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. This case was investigated by the ATF, DEA, NCSBI, Henderson Police Department, and Vance County Sheriff’s Office. 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. 5:22-CR-332-M-1.


title: St. Louis Bar Co-Owner Admits Fraud

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – The co-owner of a St. Louis bar on Monday admitted obtaining a credit card in the name of one of his co-owners and using it to charge nearly $30,000. Anthony Saputo, 44, pleaded guilty in U.S. District Court in St. Louis to one count of engaging in illegal transactions with an access device. Saputo admitted that on Sept. 9, 2021, while another of the bar’s co-owners was out of the country, he applied for and obtained an American Express card by using her name and Social Security number without her knowledge or authorization. In the next two months, Saputo charged nearly $30,000 on the card, including a $3,000 cash advance that he used to pay his rent and car loan. Some of the charges were also business expenses related to the opening of the bar. Saputo failed to pay the balance, incurring significant penalties and interest. Saputo, of St. Louis County, is scheduled to be sentenced on December 1. As part of his plea agreement, he has agreed to release any ownership interest in the LLC that owns the bar. He will also be ordered to pay restitution. The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Gwendolyn Carroll is prosecuting the case.


title: Flint man sentenced to more than 18 years in federal prison  for possessing with intent to distribute heroin

component: USAO - Michigan, Eastern

body_text: FLINT — Isiah L. Claiborne, 38, of Flint, was sentenced last week to 224 months in federal prison for possession with intent to distribute heroin, U.S. Attorney Jerome F. Gorgon Jr. announced. Gorgon was joined in the announcement by Joseph O. Dixon, Special Agent in Charge of the Drug Enforcement Administration’s Detroit Field Division. U.S. District Court Judge Shalina D. Kumar sentenced Claiborne following his guilty plea to possession with intent to distribute heroin. Judge Kumar ordered Claiborne’s sentences to be served concurrently to his state sentences for felon in possession of a firearm and felony firearm. Claiborne was convicted of those offenses following a trial in Genesee County Circuit Court involving the murder of Devaroe Davis. The jury was unable to reach a verdict on Claiborne’s murder-related charges, and those remain pending in state court. Judge Kumar ordered that Claiborne serve five years of supervised release following his term of imprisonment. According to court documents, on October 1, 2021, law enforcement officers executed a search warrant at Claiborne’s residence. During the execution of the search warrant, law enforcement officers seized over a kilogram of heroin, quantities of cocaine, methamphetamine, and marijuana, and two semi-automatic firearms. This investigation was conducted by special agents of the DEA’s Flint Resident Office in conjunction with agents from the FBI and ATF offices in Flint.


title: Orleans Parish Men Indicted for Possession with Intent to Distribute Controlled Substances and Federal Gun Charges

body_text: NEW ORLEANS, LA – On August 13, 2026, LAQUAN GRANT (“GRANT”) , age 32, and DEMOND SMITH , ( “SMITH” ), age 28, both of Orleans Parish, were indicted in a four-count indictment, announced United States Attorney David I. Courcelle. Count One charged GRANT AND SMITH with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(C), and (b)(1)(D). Count Two charged GRANT AND SMITH with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). Count Three and Count Four charged SMITH AND GRANT , respectively, with felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). According to the indictment, on or about March 19, 2026, GRANT AND SMITH did intentionally possess, with intent to distribute, a quantity of marijuana, a Schedule I controlled substance, and Tapentadol, a Schedule II controlled substance, while in possession of firearms, to further their drug trafficking enterprise. SMITH , knowing that he had prior felony convictions in Criminal District Court for the Parish of Orleans, State of Louisiana in 2022, did knowingly possess a firearm, specifically, a Cobra Model CB38, .38 caliber pistol, and ammunition. The firearm and ammunition were in and affected interstate commerce. GRANT knowing that he had prior felony convictions in Criminal District Court for the Parish of Orleans, State of Louisiana did knowingly possess a firearm, specifically, a Glock Model 19X, nine-millimeter caliber pistol, and ammunition. The firearm and ammunition were in and affected interstate commerce. GRANT is also charged with a sentencing allegation, pursuant to Title 18, United States Code, Section 924(e)(1), because the offenses for which he was previously convicted, described in Count Four, are violent felonies and serious drug offenses committed on occasions different from one another. If convicted of Count One, GRANT AND SMITH face up to 20 years of imprisonment, a fine of up to $1,000,000, at least three (3) years of supervised release, and a mandatory assessment fee of $100. If convicted of Count Two, GRANT AND SMITH face five (5) years up to life imprisonment, imposed consecutively to any other sentence, a fine up to $250,000, up to five (5) years of supervised release, and a mandatory assessment fee of $100. If convicted of Count Three and Count Four, SMITH AND GRANT, respectively, face up to 15 years’ imprisonment, a fine up to $250,000, up to three (3) years of supervised release, and a $100 mandatory assessment fee. GRANT also faces a mandatory minimum sentence of 15 years’ imprisonment under Title 18, United States Code, Section 924(e)(1). U.S. Attorney Courcelle reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Troy L. Bell of the Violent Crime Unit. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. * * *


title: Orleans Parish Man Indicted on Federal Gun Charges

body_text: NEW ORLEANS, LA – On August 7, 2026, CALIV THORNTON (“THORNTON”) , age 19, a resident of Orleans Parish, was indicted in a two-count indictment charging him with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8), announced, United States Attorney David I. Courcelle. According to the indictment, on or about February 25 and March 2, 2026, WALKER , knowing that he had been previously convicted of felony crimes, did knowingly possess a firearm, specifically, a Glock, Model 23, .40 caliber pistol. If convicted of Counts One and Two, THORNTON faces up to 15 years of imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a mandatory special assessment fee of $100 per count. U.S. Attorney Courcelle reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Troy L. Bell of the Violent Crime Unit. Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities. * * *


title: Stanislaus Man Pleads Guilty to Distributing Fentanyl in Operation Blue Death

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Andrew Rodriguez , 30 , of Ceres , pleaded guilty to possession of fentanyl with intent to distribute in connection with a drug and firearm trafficking conspiracy, U.S. Attorney Eric Grant announced. According to court documents, Operation Blue Death, an investigation into drug and illegal firearm trafficking in Stanislaus County, resulted in the arrest of seven individuals engaged in selling fentanyl and firearms between September 2022, and June 2023. Throughout March and April 2023, co-defendant Arturo Madrid sold several firearms and thousands of fentanyl pills, including one instance on April 21, 2023, where Madrid sold 6,000 fentanyl pills and a Draco (PAK 9 9mm Luger) rifle. On June 13, 2023, Andrew Rodriguez and co-defendants Olga Arreola, Arturo Madrid, and Enrique DeLeon arrived at a location in Stanislaus to complete a pre-arranged purchase of 50,000 fentanyl pills. Officers arrested the four defendants shortly after they arrived. When officers arrested Rodriguez, he had two handguns, a short-barreled rifle, an AR-15 style firearm, and 30,000 fentanyl pills in his car. Additionally, officers seized an AK-style Draco rifle Arreola brought to the drug deal and had at his feet during his arrest. Co-defendant DeLeon had approximately 30,000 fentanyl pills inside a briefcase in his vehicle when officers arrested him. In total, seven individuals were charged with drug and firearm trafficking offenses in a seventeen-count indictment. Their status, based on court records, includes: Andrew Rodriguez is scheduled to be sentenced on November 16, 2026. Arturo Madrid, 30, of Modesto, pleaded guilty to distributing fentanyl and possession of a firearm as a felon. He was sentenced to 135 months in prison on November 17, 2025. Enrique Cruz DeLeon, 29, of Salida, pleaded guilty to possession with intent to distribute 30,000 fentanyl pills. He was sentenced to 135 months in prison on April 21, 2025. Ebony Lambert, 49, of Turlock, pleaded guilty to distributing fentanyl. She was sentenced to 24 months in prison on August 25, 2025. Oleg Arreola, 29, of Modesto, pleaded guilty to possession of a firearm as a felon. He was sentenced to 135 months in prison on March 9, 2026. Donnell Mays, 51, of Turlock, pleaded guilty to distributing fentanyl. He was sentenced to 94 months in prison on July 13, 2026. Andrew Madrid is set for trial on September 22, 2026. According to court documents, Madrid is charged with conspiracy to distribute fentanyl and distributing fentanyl. If convicted, he faces a mandatory minimum of 10 years and a maximum statutory penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges against Andrew Madrid are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. This case was investigated by the Stanislaus Sherriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorneys Cody S. Chapple and Chan Hee Chu are prosecuting the case. This case is part of the Homeland Security Task Force (HSTF) and Operation Take Back America initiatives. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).


title: Modesto Man Sentenced to 37.5 Years in Prison for Sexual Exploitation of Minors

body_text: FRESNO, Calif. — Jacob Jacobsen, 31, of Modesto, was sentenced today to 37.5 years in prison, to be followed by 10 years of supervised release, for the sexual exploitation of minors and receipt of child sexual abuse images. Jacobsen will also be required to pay special assessments of $25,000 and to forfeit devices used in committing the crimes, U.S. Attorney Eric Grant Announced. According to court documents, the mother of a 13-year-old girl in Memphis, TN, informed law enforcement that someone, later identified as Jacobsen, had been communicating with the minor through Snapchat. Investigators executed numerous search warrants and discovered that Jacobsen had contacted dozens of minor females while using the Snapchat screen names “trippinj” and “treydawgg2000.” Jacobsen often purported to be 16 or 17 years old when communicating with the victims and soliciting sexually explicit photographs and videos. Jacobsen admitted to investigators that he had been obtaining sexually explicit images of minor females for more than five years prior to his arrest. Jacobsen pleaded guilty on May 5, 2025. “Jacobsen preyed upon some of the most vulnerable members of our society for years. Now, thanks to the quick thinking of a Tennessee mother, and the swift and decisive action of our law enforcement partners and prosecution team, this significant sentence will ensure the public is protected from this child sexual predator for decades to come,” said U.S. Attorney Eric Grant. The FBI Nashville Field Office, Memphis Resident Agency, and the FBI Sacramento, Ripon Resident Agency conducted the investigation. Assistant U.S. Attorney David Gappa prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Fresno Man Sentenced to 52 Months in Prison for Operating a $9 Million Real Estate Ponzi Scheme

body_text: FRESNO, Calif. — Matthew Campbell, 43, of Fresno, was sentenced today to 52 months in federal prison for defrauding investors in a $9 million Ponzi scheme, U.S. Attorney Eric Grant announced. According to court documents, since 2012, Campbell operated two real estate investment companies, Preferred Property LLC and Ampez Rehab Investments LLC, which he used to buy, sell, build, and renovate properties, as well as to solicit investor money to fund his operations. Beginning in 2018, Campbell began using his businesses to conduct a Ponzi scheme. He knowingly made false representations about his company’s finances, the return on investment, and distributions to attract new investors, and then used those funds to pay returns to earlier investors. To obtain new investments, he promised unrealistically high returns. Between January 2018 and October 2025, Campbell obtained more than $9.1 million in investor funds from over 40 investors that he used in unauthorized ways. At least $2,293,000 in new investor funds went to pay old investors and continue the scheme. "Mr. Campbell took advantage of the hard-earned savings of innocent people who were trying to secure their financial futures," said U.S. Attorney Eric Grant. "By masking a fraudulent Ponzi scheme as a legitimate real estate opportunity, he violated federal law and exploited the trust of dozens of investors. This sentence reflects our office's unwavering commitment to seeking justice for the American People and holding accountable those who seek to do them harm." “Today’s sentence ensures Matthew Campbell will pay a price for his crimes, but it cannot erase the breach of trust and financial devastation families and retirees who placed their confidence in Campbell suffered. Each investor believed Campbell’s claim that his legitimate real estate business could offer guaranteed returns, not knowing those promises were impossible to fulfill,” said FBI Sacramento Special Agent in Charge Brian Tosh. “The FBI is committed to investigating all allegations of financial fraud to both protect the public and ensure those who take advantage of the American people will face justice.” This case is the product of an investigation by the FBI. Assistant United States Attorneys Cody S. Chapple and Arelis M. Clemente prosecuted the case. Campbell pleaded guilty on February 9, 2026, before U.S. District Judge Jennifer L. Thurston. A restitution hearing is scheduled for October 22, 2026.


title: Medicare Advantage Provider Monogram Health Agrees to Pay $2.4 Million to Settle False Claims Act Lawsuit

component: USAO - California, Central

body_text: LOS ANGELES – Monogram Health Professional Services PC and Monogram Health Inc., headquartered in Tennessee, have agreed to pay $2.4 million to resolve allegations that they violated the False Claims Act by causing the submission of false diagnosis codes to increase payments that they received from the Medicare Advantage program. “When it comes to how federal money is being spent, taxpayers deserve to know that this Justice Department is looking out for them,” said First Assistant U.S. Attorney Bill Essayli. “My office will continue to work to ensure that money for public health programs is spent how it’s intended, as today’s settlement shows.” “When companies submit false diagnosis codes, they unlawfully exploit a system built to support vulnerable seniors,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement reinforces the Department’s commitment to protecting taxpayer money and ensuring that Medicare Advantage payments are based on accurate information.” “Health care companies that seek to inflate profits by inaccurately reporting the medical conditions of Medicare Advantage enrollees will be held accountable,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the Department of Health and Human Services Office of Inspector General (HHS‑OIG). “This settlement underscores HHS‑OIG’s commitment to protecting the integrity of taxpayer‑funded federal health care programs. Medicare Advantage exists to deliver medically necessary care to beneficiaries, not to serve as a vehicle for improper financial gain.” Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may opt out of traditional Medicare and enroll in private health plans offered by insurance companies known as Medicare Advantage Organizations, or MAOs. The Centers for Medicare & Medicaid Services (CMS) pays the MAOs a fixed monthly amount for each Medicare beneficiary enrolled in their plans. CMS adjusts these monthly payments to account for various “risk” factors that affect expected health expenditures for the beneficiary. In general, CMS pays MAOs more for sicker beneficiaries expected to incur higher healthcare costs and less for healthier beneficiaries expected to incur lower costs. To calculate the payment amounts, CMS uses a health-based risk adjustment model — the Hierarchical Conditions Category (HCC) model — that considers diagnoses reported by healthcare providers. In general, the more severe the diagnosis or costly the associated treatment, the higher the risk score and the higher the corresponding payments to the MAO. The diagnoses must be supported by the medical record of a face-to-face visit between a patient and a provider, and for outpatient visits, must have required or affected patient care, treatment, or management at the visit. Monogram provides in-home care and related services to Medicare beneficiaries enrolled in MA Plans pursuant to contracts with certain MAOs. Under these contracts, Monogram was eligible to be paid more by the MAOs if the beneficiaries in its care had higher risk scores because the MAO received higher payments from CMS for those beneficiaries. These risk sharing arrangements gave Monogram a financial incentive to submit additional diagnosis codes to increase its patients’ risk scores and the corresponding payments made by CMS. The settlement announced today resolves allegations that, during the period from January 1, 2021 through December 31, 2023, Monogram knowingly submitted diagnosis codes within the following four HCCs that were not clinically accurate, not supported by documentation in the beneficiary’s medical records, and/or did not require or affect patient care, treatment or management: HCC 21 (Protein-Calorie Malnutrition), HCC 55 (Substance Use Disorder); HCC 48 (Coagulation Defects and Other Specified Hematological Disorders), and HCC 88 (Angina Pectoris). The submission of these diagnosis codes resulted in false claims that inflated the risk scores of the Medicare Advantage beneficiaries, thereby causing CMS to make higher capitated payments to the MAOs than it would have paid without these diagnosis codes. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Dr. Ajay Gupta, a physician formerly employed by Monogram. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Dr. Gupta will receive approximately $380,000 as his share of the recovery in this case. The lawsuit is captioned United States of America ex rel. Dr. Ajay Gupta v. Monogram Health Professional Services, et. al. , Case No. 2:22-cv-08758 MWF-JCx (C.D. Calif.). Monogram received credit under the Department of Justice’s guidelines in Justice Manual § 4-4.112 for taking cooperation into account in cases involving False Claims Act allegations. This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California with assistance from the U.S. Department of Health and Human Services Office of Inspector General. The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). The matter was investigated by Assistant United States Attorney Hunter B. Thomson of the Civil Division’s Civil Fraud Section and Justice Department Fraud Section Attorney Jennifer Cook. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Former City Councilmen for Baldwin Park and Compton Sentenced to Federal Prison for Their Roles in Bribery Schemes

body_text: LOS ANGELES – Two former city councilmen for Baldwin Park and Compton were each sentenced to 18 months in federal prison terms today for engaging in corrupt acts while they were elected officials, including the payment and acceptance tens of thousands of dollars in bribes for a police union’s support and to obtain official city permits for marijuana cultivation. Ricardo Pacheco, 63, of Baldwin Park, who served on the Baldwin Park City Council from 1997 until his resignation in 2020 and served as the city’s mayor pro tempore in 2018, was sentenced to 18 months in federal prison by United States District Judge Otis D. Wright II, who also fined him $10,000 and ordered him to forfeit $219,755. A restitution hearing will be scheduled in the coming weeks. Judge Wright today also sentenced Isaac Jacob Galvan, 39, of Compton, who served on the Compton City Council from 2013 to 2022, to 18 months in federal prison and ordered him to pay $323,557 in restitution. Ricardo Pacheco Pacheco pleaded guilty in June 2020 to one count of federal program bribery and admitted to accepting tens of thousands of dollars in bribes – including $20,000 in cash – from a Baldwin Park Police officer working at the FBI’s direction, in exchange for the councilmember’s political support of the Baldwin Park Police Association’s contract with the city. Pacheco, who agreed to fully cooperate with federal prosecutors, solicited and received a total of $37,900 in bribes from a Baldwin Park police officer from January through October 2018 to support and vote for the Police Association’s contract, which was worth at least $4.4 million over three years. The police officer who made the payments did so at the direction of the FBI after another officer and he approached the FBI and agreed to assist in its ongoing corruption investigation. In exchange for the payments, Pacheco voted in favor of the Police Association contract in March 2018. The payments to Pacheco included a $20,000 cash bribe in October 2018, which the police officer provided to him in an envelope in a Baldwin Park coffee shop. Pacheco also solicited and received $17,900 in checks that he directed be made out to his church and sham political action committees he had set up using other individuals’ names but which he controlled. In June 2020, Pacheco resigned from his Baldwin Park City Council seat as part of his plea agreement with federal prosecutors. He also forfeited $83,145 in cash proceeds seized by the FBI, which included $62,900 that Pacheco said he had buried in his backyard in two locations. The FBI investigated this matter. Isaac Jacob Galvan Galvan pleaded guilty in December 2025 to one count of federal program bribery and one count of evasion of tax assessment. He admitted to paying $70,000 in bribes to Pacheco – then serving on the Baldwin Park City Council – in exchange for Pacheco’s votes and support for commercial marijuana permits and further admitted to failing to report to the IRS more than half a million dollars in income. In June 2017, Baldwin Park began permitting the cultivation, manufacture, and distribution of marijuana within its city limits. Soon afterward, Pacheco began soliciting bribes from businesses seeking marijuana development agreements and related permits in the city. In exchange for the illicit payments, Pacheco agreed to use his position in city government to assist the companies with obtaining marijuana permits, including voting in their favor. Galvan – then serving on the Compton City Council – offered his consulting services to W&F International Corp., a Diamond Bar-based import-export business, who wanted a marijuana permit in Baldwin Park. After securing W&F International Corp. as a consulting client, Galvan facilitated $70,000 in bribes to Pacheco from Yichang Bai, 52, of Arcadia, W&F’s the owner and operator. Galvan paid the bribes in exchange for Pacheco’s political support of and promise to deliver Baldwin Park’s approval of marijuana permits for W&F. Pacheco then delivered, voting in favor of W&F’s marijuana permit in June and July of 2018 and voting later that year in favor of W&F’s bid to relocate its operations. Throughout the scheme, Galvan and Bai took steps to cover up their illegal payments to Pacheco by concealing Bai and W&F’s connection to the payments for Pacheco. For example, Bai collected checks from third parties who owed him money and then gave Galvan the checks with blank payee lines. Galvan then gave the checks to Pacheco. Shortly after the votes to approve W&F’s relocation, Pacheco contacted Galvan and asked him to obtain more money from W&F for his legal defense fund. Galvan told Bai that Pacheco wanted $25,000 for his fundraiser, but Bai insisted only on paying $20,000. Bai provided a total of seven checks from different bank accounts that were not Bai’s or W&F’s. Galvan arranged for the checks to be delivered to Pacheco as further payment in exchange for his votes and support of W&F’s marijuana permit. Galvan also failed to file federal individual tax returns for the years 2017 through 2020, evading assessment of the federal taxes he owed in several ways. For example, he concealed his ownership and control of I&I LLC, a shell company Galvan used to solicit bribes for public officials and to facilitate paying those bribes. Galvan also directed individuals to issue checks with blank payee lines to later be cashed and converted into income for himself, and he individuals to write checks for income he earned to conduits, who would pay for Galvan’s living expenses, including his rent. In total, Galvan failed to report approximately $560,525 in income for the tax years 2017 through 2020, causing a total loss to the United States Treasury of $115,816. Bai pleaded guilty on February 23 to one count of conspiracy to commit bribery concerning programs receiving federal funds. On July 6, Judge Wright sentenced him to 20 months in federal prison and fined him $3,000. The FBI and IRS Criminal Investigation investigated this matter. Assistant United States Attorneys Michael J. Morse and Kedar S. Bhatia of the Public Corruption and Civil Rights Section, and Neil P. Thakor of the Major Crimes Section prosecuted both Pacheco and Galvan.


title: Employee of LAX Service Provider Charged in Federal Complaint with Possessing 11 Kilograms of Fentanyl in Men’s Bathroom at Airport

body_text: LOS ANGELES – An employee of a service provider working at Los Angeles International Airport (LAX) and a fellow South Bay resident have been arrested and charged in a federal criminal complaint with possessing a bag containing approximately 11 kilograms (24.3 pounds) of fentanyl in an airport bathroom, where it was to be taken and transported on a Minnesota-bound flight, the Justice Department announced today. Miguel Angel Tuz-Noh, 24, of Lennox, who works at LAX, and Anthony Olvera, 23, also of Lennox, are charged with possession with intent to distribute a controlled substance. Both defendants were arrested on August 19 and made their initial appearances on August 21 in United States District Court in downtown Los Angeles. A federal magistrate judge ordered each of them released on $10,000 bond. Their arraignments are scheduled for September 17. According to an affidavit filed with the complaint, Tuz-Noh is an LAX employee whom law enforcement believes has ties to a drug trafficking organization. On August 19, law enforcement observed Tuz-Noh and Olvera attempt to exchange narcotics in a men’s bathroom at one of the airport’s terminals. Soon afterward, law enforcement detained both defendants and opened a duffle bag Olvera had carried. Inside the duffle bag were 10 brick-type packages containing a total of approximately 11 kilograms of fentanyl. Law enforcement believes Olvera had agreed to fly with the fentanyl to Minneapolis-St. Paul International Airport. 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, the defendants would each face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. The Drug Enforcement Administration and Los Angeles Airport Police are investigating this matter. Assistant United States Attorney Kent M. Walters of the General Crimes Section is prosecuting this case.


title: Tucson Man Indicted for Lying to Obtain Federal Contract Work While on Active Duty with the Air Force

component: USAO - Arizona

body_text: TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned an indictment against Davide Velarde, 44, of Tucson for making materially false statements on background investigation forms to obtain employment with federal contractors for the National Aeronautics and Space Administration (NASA), the Internal Revenue Service (IRS), and the National Oceanic and Atmospheric Administration (NOAA). The indictment alleges that while Mr. Velarde was still on active duty with the United States Air Force (USAF), he held positions with federal contractors for the IRS and NASA after making false statements about when he would retire from the USAF. After retiring, Mr. Velarde made additional false statements while applying to work for a federal contractor for NOAA to conceal that he had been previously fired from federal contract work. Mr. Velarde is alleged to have earned approximately $466,708 in wages from the USAF and the federal contractors between August 2021 and October 2025. “American servicemembers are held to the highest level of integrity,” said U.S. Attorney Timothy Courchaine. “This case is about protecting the honor of every other airman by holding David Velarde accountable for his alleged falsehoods. Our office is proud to stand with the United States Air Force and the many excellent investigators involved in this matter.” “You cannot be in multiple places at once, and you certainly cannot mislead the federal government to obtain simultaneous employment,” said Jennifer Bryan, Special Agent in Charge of the NASA Office of Inspector General’s Western Field Office. “David Velarde’s scheme to collect multiple paychecks was both an abuse of taxpayer dollars and a breach of public trust. Let this indictment be an example to those who attempt to game the federal contracting system.” “As the nation’s tax watchdog, the Treasury Inspector General for Tax Administration (TIGTA) is dedicated to safeguarding the integrity of the Internal Revenue Service’s (IRS) contracting and procurement processes” said Special Agent in Charge Krystofor Proev of TIGTA’s Northwest Field Division. “We are grateful to the U.S. Department of Justice and our law enforcement partners for their continued collaboration and critical support in this investigation.” “According to the indictment, David Velarde knowingly provided false information to secure federal contract positions, including with NOAA,” said Judd Leinum, Special Agent in Charge, U.S. Department of Commerce Office of Inspector General. “Misrepresenting employment history and eligibility threatens the integrity of federal procurement and the protection of taxpayer funds. Any attempt to deceive federal agencies will not be tolerated. We appreciate the partnership of the U.S. Attorney’s Office for the District of Arizona and our law enforcement partners in pursuing this matter.” “This is another great example of interagency efforts to stem fraudulent activity impacting entities across the federal government,” said Special Agent Richard Kautz, AFOSI Detachment 217 Commander. “This case highlights the ever-present commitment of the involved agencies to protecting the integrity of our hiring and employment practices.” A conviction for making false statements carries a maximum penalty of five years imprisonment and a fine of $250,000. Investigators from the National Aeronautics and Space Administration, Office of Inspector General, Office of Investigations; U.S. Treasury Inspector General for Tax Administration; Department of Commerce, Office of Inspector General, Office of Investigations; United States Air Force, Office of Special Investigations; and Department of Defense Inspector General, Defense Criminal Investigative Service conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution. An indictment is a formal accusation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. CASE NUMBER: 26-CR-04345-TUC- SHR RELEASE NUMBER: 2026-144_Velarde # # # 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: Anchorage businesswoman sentenced to prison for fraudulently obtaining, misusing nearly $1M in COVID-19 relief funds for personal gain

component: USAO - Alaska

body_text: ANCHORAGE, Alaska - An Anchorage businesswoman was sentenced today to 3.8 years in prison for lying on federal loan applications and stealing identities to fraudulently obtain nearly $1 million in COVID-19 relief funds. According to court documents, Cheryl Labrie, 39, was the owner of AKBS LLC, doing business as Liberty Tax Service and Alaska’s Bookkeeping Solutions, providing bookkeeping and tax preparation services in Alaska, including for several marijuana businesses. Over the course of more than a year, Labrie applied for and obtained multiple emergency relief loans and advances, totaling nearly $1 million. During the COVID-19 pandemic, the Small Business Administration (SBA) provided funds to qualifying small businesses to offset the impacts of the pandemic. The two SBA programs relevant to this case are the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP). The funding for these programs was limited and when it ran out there were thousands of applications from small businesses pending that were never funded. Between April 2020 and November 2021, Labrie falsified applications and submitted fraudulent IRS documents seeking four loans and two forgiveness applications from the EIDL and PPP programs. She obtained over $970,000 in federal tax-payer dollars through these applications. Labrie falsely certified on her applications that she had never been convicted or pleaded guilty to a crime and had never been placed on pretrial diversion or probation. Labrie had two prior convictions and was on probation when she filed the applications. She also falsely stated that the funds would be used for business expenses, like payroll relief for AKBS LLC. Instead, Labrie used the fraudulently obtained federal funds for her personal use including purchasing a parcel of land on the hillside and making a downpayment for a personal residence. Labrie also used the relief funds to pay off her prior criminal restitution and other unauthorized debts. To disguise her misuse of federal funds, Labrie co-mingled the funds with cash from her marijuana clients, structured transactions through multiple accounts, and utilized money orders and cashier checks before spending the funds for personal purposes. Labrie also used the personal identifying information of seven marijuana business employees, without their permission, to falsely claim them as employees of AKBS LLC to obtain funds her business was not eligible to receive. On Jan. 18, 2024, Labrie was indicted by a federal grand jury on 12 criminal counts. On March 20, 2025, and Feb. 18, 2026, a federal grand jury in Alaska returned superseding indictments against LaBrie, ultimately charging her with seven counts of aggravated identity theft, six counts of wire fraud, and two counts of money laundering. On April 13, 2026, Labrie pleaded guilty to one count of wire fraud and one count of aggravated identity theft. During sentencing, in addition to incarceration, the Court also ordered Labrie to serve three years on supervised release upon completion of her prison sentence. The total loss amount in this case was more than $970,000, and the Court ordered Labrie to pay the total loss amount in full through restitution. “Ms. Labrie orchestrated an elaborate web of deceit to steal nearly $1 million from the American taxpayers, funds that could have benefited struggling businesses during a national emergency,” said U.S. Attorney Michael J. Heyman for the District of Alaska. “Tackling fraud against the American purse is a priority for my office and this administration. We must protect the systems set in place to assist law abiding U.S. citizens in times of need.” “Lying to gain access to SBA’s pandemic response programs will be met with justice,” said SBA OIG’s Acting Special Agent in Charge, Tim Larson. “OIG will aggressively pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office, and our law enforcement partners for their dedication and pursuit of justice.” The investigation was led by the Small Business Administration Office of Inspector General, with significant assistance from the U.S. Treasury Inspector General for Tax Administration, FBI Anchorage Field Office and IRS Criminal Investigation Anchorage Field Office. Assistant U.S. Attorneys Andrea Steward and Mac Caille Petursson prosecuted 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. ###