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11 December 2025
Illegal Alien Indicted on Illegal Reentry ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Vanessa Yalixa Munoz-Baque, 31, of Ecuador, charging her with illegally reentering the United States after removal.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Acting Field Office Director Jeremy Bacon, U.S. Immigration and Customs Enforcement (ICE-ERO) – Baltimore Field Office.
According to the indictment, on September 11, 2024, local law enforcement apprehended Munoz-Baque in Frederick, Maryland, after she was previously removed to her home country in 2023. Munoz-Baque’s arrest in Frederick County was in connection to a service call to local police. Prior to her arrest, Munoz-Baque did not obtain consent at any time from the Attorney General of the United States, or from the Secretary of the Department of Homeland Security, for readmission into the country.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
U.S. Attorney Hayes commended the ICE-ERO for its work in this investigation. Ms. Hayes also thanked First Assistant U.S. Attorney Jason D. Medinger who is prosecuting this case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
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Illegal Alien Indicted on Illegal Re-Entry ChargesRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Willians Elenilson Beltran-Quintanilla, 39, of El Salvador, charging him with illegally re-entering the United States after removal.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the superseding indictment with Acting Field Office Director Vernon Liggins, U.S. Immigration and Customs Enforcement (ICE-ERO) – Baltimore Field Office.
According to the indictment and other court documents, in December 2023, law enforcement found Beltran-Quintanilla in Prince George’s County, Maryland, after he was previously removed.
On June 13, 2005, Beltran-Quintanilla illegally entered the United States near Eagle Pass, Texas. Then on September 16, 2005, after United States Border Patrol (USBP) apprehended him, an immigration judge ordered his removal from the U.S. to El Salvador. On April 10, 2007, Beltran-Quintanilla was then removed from the United States.
Beltran-Quintanilla again re-entered the U.S. at an unknown place, date, and time. On June 16, 2007, law enforcement encountered Beltran-Quintanilla, resulting in USBP issuing removal orders for a second time from the U.S. Then on December 21, 2023, Prince George's County Police found him unlawfully in the U.S. again as officers executed a search warrant at his residence, charging him with drug-related offenses.
Before his arrest, Beltran-Quintanilla did not obtain consent from the Attorney General of the United States or the Secretary of the Department of Homeland Security for readmission into the country at any time.
An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent until proven guilty at a later criminal proceeding.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
U.S. Attorney Hayes commended ICE-ERO for its work in this matter. Ms. Hayes also thanked Assistant U.S. Attorney Brooke Oki who is prosecuting the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.
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Illegal Alien Pleads Guilty to Unlawfully Possessing a FirearmRead the Press Release
PENSACOLA, FLORIDA – Juan De La Cruz Mejia Castro, 33, of El Salvador, pleaded guilty in federal court to possessing a firearm as an alien unlawfully in the United States. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “Outstanding work by the Escambia County Sheriff’s Office, with support from our federal law enforcement partners, to capture this criminal alien and prevent him from continuing to threaten the safety of our communities. President Donald J. Trump and Attorney General Pam Bondi promised to Take Back America from the criminal aliens who have violated our immigration laws and threatened the safety of our communities, and my office will continue to deliver on that promise with successful prosecutions.”
Court documents reflect that Mejia Castro admitted to drinking alcohol in his truck before firing two rounds from a 9-millimeter pistol. Mejia Castro claimed to have heard a noise in his yard and fired the gun in an attempt to scare off a suspected animal. The Escambia County Sheriff’s Office found two spent shell casings at the scene, as well as a small amount of marijuana possessed by Mejia Castro.
Mejia Castro faces up to fifteen years in prison followed by removal from the United States.
The case was a joint investigation by the Escambia County Sheriff’s Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Brooke DiSalvo is prosecuting the case.
Mejia Castro’s sentencing is scheduled for March 10, 2026, at the United States Courthouse in Pensacola before United States District Judge M. Casey Rodgers.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Houston resident gets 10 years for exploiting minorRead the Press Release
HOUSTON – A 25-year-old man has been sentenced for coercion and enticement of a minor, announced U.S. Attorney Nicholas J. Ganjei.
Brice Andrew Flickinger pleaded guilty March 20.
U.S. District Judge Keith P. Ellison has now sentenced Flickinger to 120 months in federal prison. At the hearing, the court heard additional information, including a victim letter detailing how the minor victim was taken advantage of at a young age and how it affected the victim negatively for several years. In imposing the sentence, the court noted that Flickinger engaged in a sexual relationship with a very young minor.
Flickinger was also ordered to pay $5,000 to the Justice for Victims of Trafficking Act of 2015 and forfeit his phone. Restitution will be determined later. Following his prison term, Flickinger will serve the rest of his life on supervised release and must comply with numerous requirements designed to restrict his access to children and the internet. He will also be required to register as a sex offender.
On July 9, 2021, the victim’s mother reported her daughter missing. Shortly thereafter, authorities conducted a traffic stop after observing a vehicle with two men, including Flickinger as passenger, drop the minor victim off near her home. A search resulted in the discovery of a phone in Flickinger’s possession. Forensic examination revealed at least nine videos of child sexual abuse material depicted Flickinger and the minor victim engaged in sexually explicit conduct.
Law enforcement later executed a search warrant at his home where they seized numerous items, including a pair of purple handcuffs located near his bed.
The investigation revealed Flickinger had initially met the minor victim through social media. They later met in person, approximately 15 times, during which he would drive them both to his home after midnight.
He will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.
FBI conducted the investigation with the assistance of Sherrif’s offices in Harris and Fort Bend County.
Assistant U.S. Attorney Celia Moyer prosecuted the case, which was brought as part of Project Safe Childhood, a nationwide initiative the Department of Justice launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Houston man sentenced to federal prison in ATM crime spreeRead the Press Release
PLANO, Texas – A Houston man has been sentenced to federal prison for a violent crime spree in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.
Coby Stephon Williams, 27, pleaded guilty to conspiracy to commit bank theft and was sentenced to 57 months in federal prison by U.S. District Judge Sean D. Jordan on December 11, 2025. Williams was ordered to pay restitution in the amount of $89,032.
According to court documents, from June 2020 to June 2024, Williams was involved in a crime spree referred to as “Hook and Chain” burglaries, which involved stealing a truck, attaching hooks and chains to the vehicle, and using it to drag the door off an ATM to retrieve the cash currency from the machine. This crime spree involved several burglaries in the DFW area, including the Texas Bank on South Preston Road in Prosper, the BB&T on Legacy Drive in Frisco, and the First United Bank in Pottsboro. The conspiracy resulted in the theft of approximately $363,000 and damages to ATMs and property of at least $250,000.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
This case was investigated by the FBI, Fort Worth Police Department, and Pottsboro Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew Johnson.
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Hollywood Director and Writer Convicted of $11 Million Fraud on Subscription Streaming ServiceRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today the conviction of CARL ERIK RINSCH, a Los Angeles-based director and writer, for his role in a fraudulent scheme to steal $11 million from a subscription video on-demand streaming service (“Streaming Company-1”) in connection with a planned science fiction television show called “White Horse,” and then laundering that money. The defendant was found guilty following a one-week trial before U.S. District Judge Jed S. Rakoff and is scheduled to be sentenced on April 17, 2026.
“Carl Erik Rinsch took $11 million meant for a TV show and gambled it on speculative stock options and crypto transactions,” said U.S. Attorney Jay Clayton. “Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.”
As reflected in the Indictment, public filings, and the evidence presented at trial:
RINSCH is a film and television writer and director who partially completed a science fiction television show called “White Horse.” In 2018, RINSCH reached an agreement with Streaming Company-1 in which Streaming Company-1 would both pay RINSCH for the existing episodes of White Horse and also fund completion of the rest of the show. Between 2018 and 2019, Streaming Company-1 paid approximately $44 million for White Horse.
Between late 2019 and early 2020, RINSCH demanded even more money from Streaming Company-1 to complete White Horse. Streaming Company-1 ultimately agreed to pay another $11 million and transferred those funds to a company RINSCH controlled on or about March 6, 2020. The entirety of those funds was to be spent on the completion of White Horse.
But RINSCH did not use those funds to complete White Horse. Instead, within days, RINSCH began transferring the funds he received through a number of different bank accounts before consolidating them in a personal brokerage account. RINSCH then used those funds to make a number of personal and speculative purchases of securities. His trading was unsuccessful, and in less than two months after receiving $11 million from Streaming Company-1, RINSCH had lost more than half of those funds.
Even after losing most of the $11 million, RINSCH still did not spend the remaining funds he had stolen on White Horse. Instead, he used the money to speculate on cryptocurrency, and on personal expenses and luxury items, including at least $1.7 million on credit card bills; at least $3.3 million on furniture, antiques, and mattresses; at least $387,000 on a Swiss watch; and at least $2.4 million on five Rolls Royces and a red Ferrari.
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RINSCH, 48, of Los Angeles, California, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and five counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum sentence of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Timothy V. Capozzi, Jackie Delligatti, David A. Markewitz, Kevin Mead, and Adam Sowlati are in charge of the prosecution with assistance from Paralegal Specialists Maria Larracuente and William Coleman.
Ho-Ho-Hold up: Christmas convenience store robbers head to federal prisonRead the Press Release
CORPUS CHRISTI, Texas – Two Corpus Christi residents have been sentenced for a string of aggravated robberies, announced U.S. Attorney Nicholas J. Ganjei.
Jonathan Stein, 20, and Alvaro Martinez, 21, pleaded guilty Aug. 4.
U.S. District Judge Davis S. Morales has now imposed a 96-month term of imprisonment for Stein, while Martinez received 68 months. Both must also serve three years of supervised release following their sentences. At the hearing, the court heard additional evidence detailing the robberies committed on Christmas Day and in the days that followed. In handing down the sentences, Judge Morales noted the seriousness of the offenses and the fear and danger their actions caused the victims.
Between Dec. 25 and 27, 2024, Stein and Martinez worked together to rob three Stripes convenience stores in Corpus Christi.
Surveillance footage showed Stein entering a Stripes convenience store on Airline Road Dec. 25. He was wearing a red and grey ski mask and brandished a firearm with an attached drum magazine while demanding money from the cashier.
Approximately two days later, he robbed another Stripes in a similar manner. Martinez provided the firearm and acted as the getaway driver.
Authorities uncovered a photograph of Martinez posing with a firearm and a large amount of cash. That firearm matched the one used in the robberies. Inside his vehicle, they located the firearm, along with a red-and-black mask matching the one used in the robberies.
Both men were permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Corpus Christi Police Department. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Hancock County Man Sentenced for Methamphetamine TraffickingRead the Press Release
WHEELING, WEST VIRGINIA – Lawrence James Reagan, 40, of Weirton, West Virginia, was sentenced to 78 months in prison for methamphetamine distribution, announced U.S. Attorney Matthew L. Harvey.
According to court documents and statements made in court, Reagan was selling methamphetamine in Hancock County, West Virginia. Investigators seized methamphetamine which he intended to distribute inside Reagan’s home during the execution of a search warrant.
Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government.
The Hancock Brooke Weirton Drug Task Force, a HIDTA-funded initiative, and the Drug Enforcement Administration investigated.
U.S. District Judge John Preston Bailey presided.
Greenville Man Indicted for Armed Robbery and Firearms Offenses at Bear Creek BankRead the Press Release
Brad D. Schimel, United States Attorney for the Eastern District of Wisconsin, announced that on December 9, 2025, a federal grand jury returned a two-count indictment against a man allegedly involved in the armed robbery of a bank in Bear Creek in northwestern Outagamie County. The indictment named Martin M. Muniz-Lara (age: 43) of Greenville, Wisconsin.
Count One of the indictment charges Muniz-Lara with Armed Bank Robbery in violation of 18 U.S.C. §§ 2113(a) and 2113(d). If convicted, Muniz-Lara faces a maximum of 25 years in prison. Count Two charges Muniz-Lara with Brandishing a Firearm During and in Relation to a Crime of Violence in violation of 18 U.S.C. § 924(c). If convicted, Muniz-Lara faces up to life in prison, with a 7-year mandatory minimum sentence that must be consecutive to any other sentence. Muniz-Lara would also face fines, a special assessment, and terms of supervised release at the end of any sentence imposed.
According to the indictment, on or about October 17, 2025, the defendant forcefully took money from a federally insured bank in Bear Creek and brandished a firearm while committing the robbery.
The Outagamie County Sheriff’s Office investigated the case with assistance from the FBI, Oshkosh Police Department, and Outagamie County District Attorney’s Office. Assistant United States Attorney Andrew J. Maier will prosecute the case in United States District Court in Green Bay.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove his guilt beyond a reasonable doubt.
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For further information contact:Public Affairs Officer Steve Caballero
(414) 297-1700
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Ghanaian National Charged with Running Romance Scams That Took over $8 Million from Elderly VictimsRead the Press Release
CLEVELAND – A federal grand jury has returned a 2-count indictment charging a Ghanaian National with defrauding elderly victims out of over $8 million.
According to a recently unsealed indictment, Frederick Kumi, aka Emmanuel Kojo Baah Obeng, aka Abu Trica, 31, of Swedru, Ghana was part of a criminal network that targeted elderly victims in romance scams across the United States since 2023. Kumi was arrested in Ghana on December 11, 2025.
According to the indictment, perpetrators of this romance scam used Artificial Intelligence software to assume false identities and form close personal relationships with victims. They gained victims’ trust to obtain money and valuables, often targeting individuals through social media and online dating platforms under false pretenses.
Victims were often elderly and engaged in romantic but physically distant relationships with perpetrators. The perpetrators built trust through frequent, intimate conversations by phone, email, and messaging platforms. They then requested money or valuables under false pretenses, such as urgent medical needs, travel expenses, or investment opportunities. Relying on these misrepresentations, victims were persuaded to send funds or valuables, which were then directed to co-conspirators posing as third parties.
The indictment also alleges that after the victims transferred funds, Kumi worked with a network of co-conspirators to distribute the money from Ohio and across the United States to associates in the Republic of Ghana and other locations.
Kumi has been charged with conspiracy to commit wire fraud, money laundering conspiracy, and a forfeiture specification, and faces up to 20 years in prison.
If convicted, a defendant’s sentence will be determined by the Court after a review of factors unique to this case, including a defendant’s prior criminal record, if any, his role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
The investigation preceding the indictment was conducted by the FBI Cleveland Division and is being prosecuted by Assistant U.S. Attorney Brian M. McDonough for the Northern District of Ohio.
The U.S. Attorney’s Office for the Northern District of Ohio would like to acknowledge and thank the Ghana Attorney General’s Office, EOCO – Ghana Economic Organised Crime Office, GPS – Ghana Police Service, Ghana Cyber Security Authority, NACOC – Ghana Narcotics Control Commission, Ghana National Intelligence Bureau, U.S. Drug Enforcement Administration’s Sensitive Investigation Unit, U.S. Department of Homeland Security’s Homeland Security Investigations, U.S. Department of Justice’s Office of International Affairs, and FBI Legal Attaché Office in Accra for their cooperation with this matter.
The investigation and prosecution of this case is in response to the Elder Justice Initiative Program originating from the Elder Abuse Prevention and Prosecution Act of 2017 (EAPPA). The mission of the EAPPA and Elder Justice Initiative is to support and coordinate the Department of Justice’s enforcement efforts to combat elder abuse, neglect, financial fraud, and scams that target the nation’s elderly population.
To submit a report of suspected elder financial abuse, visit tips.fbi.gov/home or justice.gov/elderjustice/financial-exploitation.
Georgia Man Sentenced to Two Months in Prison for Evading Security Requirements at Philadelphia International AirportRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that David Easley, 39, of Georgia, was sentenced to two months' incarceration and 26 months of supervised release, with the first two months on home confinement, by United States District Judge Gail A. Weilheimer for evading security requirements at Philadelphia International Airport.
The defendant was charged by information in May of this year and pleaded guilty in July to one count of evading airport security, arising from his use of the identification badge of an airline employee to access a secured, sterile area of Philadelphia International Airport, knowingly and willfully bypassing airport security. Easley has never been employed at the Philadelphia International Airport.
As detailed in court filings and statements, on March 9, 2024, Easley was a ticketed domestic airline passenger, scheduled to fly from Philadelphia to Atlanta, Georgia, on a flight departing at 7:05 p.m. At approximately 6:35 p.m., video surveillance captured Easley using an airport Secure Identification Display Area (SIDA) badge belonging to an airport employee, typing a passcode on the keypad, and gaining access through the secure doors leading from the public side of the airport ticketing area to the secure area of the airport.
The defendant entered a restricted area for employees that is between the public, pre-security ticketing area and the public, post-security “sterile” terminal. Easley did not go through TSA screening before entering this secure area.
Easley then used another door to enter the public “sterile” terminal area of the airport, that being the area where screened passengers have access to board their flights. The TSA encountered Easley while conducting random security inspections to prevent prohibited items and unauthorized individuals from accessing the sterile area.
This case was investigated by the FBI and prosecuted by Assistant United States Attorney Priya De Souza.
Georgia Man Sentenced for Conspiracy to Defraud Former Political Candidate and Four Other Louisiana ResidentsRead the Press Release
NEW ORLEANS, LOUISIANA – Acting U.S. Attorney Michael M. Simpson announced that on December 4, 2025, CHASE DUNCAN CAMPBELL (“CAMPBELL”), a resident of Cobb County, Georgia, was sentenced by United States District Judge Barry W. Ashe to 6 months of imprisonment to be followed by 18 months of home detention after he previously pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. The home detention will be served as part of a three-year term of supervised release. CAMPBELL was also ordered to pay $446,302.23 in restitution to his victims and a $100 mandatory special assessment fee.
According to court documents, from as early as November 2020, and continuing through at least May 2024, CAMPBELL, and others, conspired to: defraud Candidate 1 with fake campaign services; defraud Victim 1 out of approximately $236,867 in fake real estate purchases and associated costs; defraud Victim 2 out of approximately $83,268.05 in fraudulent claims of real estate and title work; and defraud Victims 3 and 4 out of approximately $112,328.18 in connection with a fake legal defense scheme. Among other things, CAMPBELL, and others, utilized numerous fake aliases and occupations, “burner” numbers for text messages and calls, and fraudulent invoices to defraud their victims.
Acting U.S. Attorney Simpson praised the work of the Federal Bureau of Investigation and the Jefferson Parish Sheriff’s Office. The prosecution of the case was handled by Assistant United States Attorney Chandra Menon of the Public Integrity Unit.
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Four-Time Convict Sentenced to 108 Months for Possession of a Glock with a Laser Sight While on Supervised ReleaseRead the Press Release
WASHINGTON – Jaswan Dayquon Thomas, 28, a four-time convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to a total of 108 months in prison for illegally possessing a Glock 19 9mm handgun outfitted with a laser attachment while he was still on supervised release for two prior firearms convictions, announced U.S. Attorney Jeanine Ferris Pirro.
Thomas pleaded guilty May 27 before Judge Trevor N. McFadden to unlawful possession of a firearm and ammunition by a felon. In addition to the 108-month prison term, Judge McFadden ordered Thomas to serve three years of supervised release.
According to court documents, on Sept. 9, 2024, Thomas had two outstanding warrants. Deputy United States Marshals (DUSMs) were canvassing near the 1300 block of Morris Road Southeast. The deputy marshals spotted a black 2005 Mercedes Benz C230 sedan known to be the same year, make, model, and color of the vehicle Thomas had operated during a traffic stop six months earlier.
Thomas exited a nearby building, approached the Mercedes, and got into the driver’s seat. The deputy marshals approached. Thomas obeyed their commands to exit the vehicle with his hands up. The DUSMs placed Thomas under arrest and searched him. From Thomas’s front right jacket pocket, they recovered a clear plastic baggie with suspected marijuana.
A DUSM looked into the open driver’s side door of the Mercedes and immediately saw a Glock 19 9mm handgun outfitted with a laser attachment in the open glove box. The gun, which was loaded with one round in the chamber, was equipped with an extended magazine that contained 38 rounds of ammunition.
Thomas has four prior convictions in the District of Columbia. On March 28, 2015, Thomas pleaded guilty to theft – first degree in D.C. Superior Court, and was sentenced to 12 months in jail, suspended. On Jan. 12, 2018, Thomas pleaded guilty to attempted robbery in Superior Court and was sentenced to 10 months in jail. On Jan. 18, 2018, Mr. Thomas pleaded guilty to unlawful possession of a firearm (prior conviction) in Superior Court and was sentenced to 18 months. On Feb. 21, 2020, Thomas pleaded guilty in District Court to unlawful possession of a firearm and ammunition by a felon and was sentenced to 57 months of imprisonment followed by 36 months of supervised release. Thomas was on supervised release for two of those convictions when he was arrested in the Mercedes in 2024.
This case was investigated by the U.S. Marshals Service. It was prosecuted by Assistant U.S. Attorney Brendan Horan.
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19cr367Former VIPD Commissioner and Former OMB Director Found Guilty on All Counts in Federal Corruption TrialRead the Press Release
Yesterday, a federal jury found Ray Martinez, former Commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, former Director of the Virgin Islands Office of Management and Budget (OMB), guilty on all counts following a one-week jury trial before U.S. District Judge Mark A. Kearney. Martinez and O’Neal were convicted of participating in a wide-ranging public corruption scheme involving honest services wire fraud, federal program bribery, conspiracy to commit money laundering, and, in Martinez’s case, obstruction of justice.
According to evidence presented at trial, Martinez accepted nearly $100,000 in bribe payments from contractor David Whitaker — including cash, luxury travel, personal expenses, private-school tuition, and restaurant equipment — and in exchange used his official authority to approve invoices and award Whitaker a $1.4 million dollar contract funded by federal American Rescue Plan Act (ARPA) dollars. O’Neal, who served as the territory’s chief budget official, knowingly approved a $70,000 inflated invoice under that same contract and later accepted a $17,730 lease payment for her business, Java Grande, using federal funds from the inflated invoice.
The evidence further showed that, after learning of the federal investigation, Martinez attempted to obstruct justice by directing Whitaker to destroy evidence and by creating a fraudulent promissory note in an effort to conceal bribe payments. Martinez and O’Neal each face significant statutory penalties, including terms of imprisonment and fines. Sentencing dates will be scheduled by the court.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Adam F. Sleeper of the District of the Virgin Islands, and Acting Special Agent in Charge Joe Rodriguez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office, St. Thomas Resident Agency investigated the case, with assistance from the Virgin Islands Office of Inspector General.
Trial Attorney Alexandre Dempsey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cherrisse Amaro for the District of the Virgin Islands are prosecuting the case.
Former St. Louis Area Pediatrician Admits Exchanging Prescriptions for Sex ActsRead the Press Release
ST. LOUIS – A former St. Louis County, Missouri pediatrician on Thursday admitted prescribing pain pills and other controlled substances in exchange for sex acts, nude photos or cash.
Craig A. Spiegel, 69, also admitted lying in a prior court hearing when he accused police of misconduct.
Spiegel pleaded guilty to one count each of illegal distribution of controlled substances, making false statements related to health care matters and conspiracy to distribute controlled substances. As part of his plea, he admitted engaging in a pattern of issuing prescriptions for controlled substances beginning at least as early as 2014 through May 2023, knowing that it was illegal and that there was no legitimate medical purpose to the prescriptions. Spiegel wrote prescriptions for numerous adult women in exchange for sexual acts or sexual photos. In many cases, he wrote the prescriptions despite knowing that the women had a substance use disorder and that issuing the prescription would endanger the recipient’s mental or physical health. Spiegel knew many of the women because he was their pediatrician when they were children.
Spiegel admitted that one woman performed sex acts, typically at his pediatrics office in Bridgeton, Missouri, or provided him with nude photos of herself, in exchange for pain pills or Adderall. Spiegel issued prescriptions to another woman, including an opioid, a benzodiazepine and a stimulant and/or a muscle relaxer despite knowing that she had a severe substance use disorder and was at high risk of overdose. He also admitted pressuring the women into engaging in sex acts or providing him with nude photos.
Spiegel also admitted prescribing controlled substances to his co-defendant, April Bingham, 48, in exchange for sexual favors. He knew that she was selling some of the drugs, and that she was addicted. He prescribed drugs to Bingham using the names of her ex-husband, mother and friends in part to take advantage of their insurance benefits, his plea says. Bingham introduced Spiegel others who paid him or performed sex acts in exchange for controlled substances.
The Medicare, Missouri Medicaid and Illinois Medicaid programs suffered losses totaling $114,480 as a result of Spiegel’s illegal prescription practices.
Finally, Spiegel admitted lying in an April 2025, hearing in U.S. District Court in St. Louis during which he sought to suppress evidence found on his cell phone. Spiegel falsely claimed, in court and under oath, that he had not signed a consent form authorizing the search of his cellular phone until after the cellular phone data had been extracted by investigators. Spiegel lied in an effort to accuse officers of the Bridgeton Police Department of illegally searching his cellular phone.
Spiegel is scheduled to be sentenced on March 24, 2026. The charges of conspiracy and illegal distribution of controlled substances are each punishable by up to 20 years in prison, a $1 million fine or both prison and a fine. The charge of making false statements is punishable by five years in prison, a $250,000 fine, or both. Bingham pleaded guilty to the conspiracy charge. She was sentenced in 2024 to 21 months in prison.
Individuals with concerns about Dr. Spiegel should call the Department of Health and Human Services Office of Inspector General (HHS-OIG) at 800-447-8477.
The Bridgeton Police Department, the Drug Enforcement Administration, the HHS-OIG, the FBI, and the Missouri Attorney General’s Office Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorneys Amy Sestric and Jonathan Clow are prosecuting the case.
Former Elementary School Teacher Charged with Child Pornography OffensesRead the Press Release
KANSAS CITY, Mo. – A former elementary school teacher and employee of two area school districts has been indicted by a federal grand jury for additional child pornography offenses.
Dennis Adlai Hernandez, 28, was charged in a thirteen-count federal superseding indictment filed in the U.S. District Court in Kansas City, Mo. yesterday. Hernandez was previously charged in a seven-count indictment with five counts of production and attempted production of child pornography, transportation of child pornography, and possession of child pornography. The superseding indictment includes those charges and six additional counts of production and attempted production of child pornography. The offenses charged in the indictment are alleged to involve twelve minor victims and are alleged to have occurred between August 2022 and August 2025.
The charges contained in this superseding indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Alison Dunning. It was investigated by the Federal Bureau of Investigations.
Project Safe Childhood
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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Community Support Worker Pleads Guilty to Defrauding District of Columbia Medicaid ProgramRead the Press Release
WASHINGTON – Jariatu Jalloh, 39, of Maryland, pleaded guilty yesterday to two counts of first-degree fraud and two counts of first-degree theft related to fraudulent billing submitted to the District’s Medicaid program. The announcement was made by U.S. Attorney Jeanine Ferris Pirro and Daniel W. Lucas, Inspector General for the District of Columbia.
According to the government’s evidence, Jalloh was employed as a community support worker (CSW) by a District Mental Health Rehabilitation Service (MHRS). MHRS provides for diagnostic and assessment services, counseling, medication, intensive day treatment, and crisis or emergency services. A CSW provides community support services by helping consumers learn and improve basic life skills, such as managing their medication, increasing social skills, and learning how to apply for housing or a job. CSWs are responsible for helping eligible patients improve life skills, such as medication management and social skills.
Jalloh admitted that between August 2021 and continuing through July 2023, while employed by the District MHRS provider, she engaged in a scheme to defraud the District’s Medicaid program by submitting encounter notes for community support services she did not provide and overbilling for services she allegedly provided to District Medicaid beneficiaries.
Evidence shows that several of the Medicaid recipients who were assigned to Jalloh reported that they never received services from Jalloh, while others said their contact lasted only a few minutes. Despite this, Jalloh repeatedly submitted documentation claiming she rendered an hour or more of services – even in cases where she had no interaction with the Medicaid recipients. Through this scheme, Jalloh caused the District government and its Medicaid program to pay over $234,500 for fraudulent CSW claims.
The Honorable Carmen McLean accepted the plea, and scheduled sentencing for March 13, 2026.
This case was investigated by the D.C. Office of the Inspector General’s Medicaid Fraud Control Unit and the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. It is being prosecuted by Special Assistant United States Attorney Emmanuela Charles, on detail from the D.C. Office of the Inspector General.
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Former Canton Municipal Utilities Commissioner and Former Canton City Engineer Sentenced to 7 and 12 Years Prison for Bribery Scheme in FederalRead the Press Release
Jackson, MS – Rudolph M. Warnock, Jr. of Birmingham, Alabama, and Cleveland Anderson of Canton, Mississippi were sentenced today to 144 months and 84 months in federal prison, respectively, for their roles in a bribery scheme.
In July, a federal jury convicted Warnock and Anderson of multiple felony charges following an eight-day trial.
Counts 1 and 2 of the indictment charged Warnock and Anderson with conspiring to commit bribery. Warnock was also charged in Counts 3 and 4 of the indictment with conspiracy to commit honest services wire fraud and the completed offense of honest services wire fraud. Warnock and Anderson were both convicted on all the counts for which they were charged in the indictment.
Their co-defendants, former City of Canton Aldermen Eric Gilkey and Andrew Grant, are scheduled to be sentenced on January 15, 2026. Grant and Gilkey pleaded guilty to conspiracy to commit bribery in November 2022, and face a maximum penalty of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Baxter Kruger of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant United States Attorneys Kimberly T. Purdie and David H. Fulcher are prosecuting the case.
Former Boston Teacher Pleads Guilty to Child ExploitationRead the Press Release
BOSTON – A former science teacher at Josiah Quincy Upper School in Boston pleaded guilty today to coercing or enticing at least one underage female to engage in sexual conversations online and requesting she produce and send child sexual abuse material (CSAM) of herself. Defendant, who also previously worked at the Academy of the Pacific Rim Charter Public School in Hyde Park and the Brookline Public Schools, possessed CSAM depicting rape of both female and male minors, ranging in age from approximately five to 17 years old.
John Magee Gavin, 35, of Brookline, pleaded guilty to one count of coercion and enticement of a minor; one count of receipt of child pornography; and one count of possession of child pornography. U.S. Senior District Court Judge F. Dennis Saylor IV scheduled sentencing for March 12, 2026. Gavin was indicted by a federal grand jury in July 2025, and remains in federal custody.
According to court filings, Gavin is a former teacher at the Josiah Quincy Upper School in Boston. Prior to that, he was a 6th grade teacher at the Academy of the Pacific Rim Charter Public School in Hyde Park and was a paraprofessional with the Brookline Public Schools.
In January 2025, Gavin was identified as the owner of a Discord account who messaged at least 20 underage females between the ages of 12 and 17 years old located throughout the country, including Georgia, Texas, Tennessee, West Virginia, North Carolina and Florida, as well as the United Kingdom and Canada. In these chats, Gavin disclosed that he was a teacher, engaged in sexual conversations and often asked the minors to send him pictures of themselves engaged in sexually explicit conduct – knowing that the children were underaged. He was arrested by local authorities in February 2025 and charged in Brookline District Court with enticing a child under 16, possession of child pornography and other offenses.
A forensic review of evidence seized from Gavin’s Brookline residence revealed approximately 147 files (94 images and 53 videos) on his iPhone depicting CSAM. The CSAM depicted rape of both female and male minors, ranging in age from approximately five to 17 years old.
Further analysis of Gavin’s Discord account identified numerous chats with underage females in which he engaged in online masturbation sessions with the minors; solicitated images from and exchanged images with the minors; and engaged in sexualized conversations with the minors while he was at school.
The chats also included conversations in which Gavin expressed his sexual interest in certain students at Josiah Quincy. In one conversation, Gavin discussed his sexual interest in a freshman student at the school where he was employed as a teacher and fantasied about having sex with her.
All victims involved in this matter have been identified and their families have been contacted by law enforcement.
The charge of coercion and enticement of a minor provides for a sentence of no less than 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of receipt of child pornography provides for a sentence of no less than five years and up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation Boston Division made the announcement today. Valuable assistance was provided by the Brookline Police Department; the Tennessee Bureau of Investigations; and the Norfolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm, Project Safe Childhood Coordinator and a member of the Major Crimes Unit, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Filipino Man Pleads Guilty to Sexually Exploiting and Sex Trafficking ChildrenRead the Press Release
BOSTON – A Filipino national living in Baltimore, Md., pleaded guilty yesterday in federal court in Boston to sexually exploiting and conspiring to sex traffic minor children.
Christopher Allan Tisoy, 27, a Filipino national residing in Baltimore, Md., pleaded guilty to one count of sexual exploitation of children (and attempt and conspiracy) and one count of conspiracy to commit sex trafficking of children. U.S. District Court Judge Richard G. Stearns scheduled sentencing for May 6, 2026.
Tisoy was arrested and charged in May 2025 along with Joshua DeWitte, a former local music teacher. The two were subsequently charged by an Information and indictment, respectively, in October 2025. Both defendants remain in federal custody.
According to the charging documents, at the time of the alleged conduct, DeWitte was a music teacher at a local school in Massachusetts. Tisoy, a citizen of the Philippines who lawfully entered the United States in September 2024 on a H-1B Visa, was employed as a medical technologist at the Sinai Hospital of Baltimore.
In December 2024, DeWitte was allegedly identified as the owner of a Snapchat account that uploaded child sexual abuse material (CSAM) depicting the abuse of a boy who appears to be between approximately eight and 10 years old. Snapchat records showed that, in September 2024, DeWitte allegedly requested nude pictures from multiple purported minors; sent pictures of his genitals to the purported minors; and discussed previous and potential in-person meetups for sexual relations with minors. Additionally, it is further alleged that DeWitte paid, and offered to pay, another Snapchat user to obtain and produce child pornography and to recruit minor boys for himself.
Based on that information, DeWitte was arrested and charged in Cambridge District Court with six counts of disseminating obscene material to a child, one count of distribution of material depicting a child in a sexual act and one count of possession of child pornography. He was later released on conditions.
According to the charging documents, a Telegram conversation between DeWitte and Tisoy was located on DeWitte’s phone, in which they arranged for the production of videos depicting the sexual exploitation of minor boys in the Philippines. Specifically, it is alleged that in the conversations, DeWitte and Tisoy negotiated the terms of creating sexually explicit videos involving minors, including which minors should be involved; which sex acts the minors should perform; who should film, including whether a third party or one of the minors themselves should film; what angles should be filmed; and how much DeWitte should pay Tisoy for each video. The negotiation allegedly incorporated the sexual preferences of both DeWitte and Tisoy, with both agreeing on what they would each find sexually gratifying. Tisoy then relayed instructions to the minor victims to create a video.
DeWitte allegedly paid Tisoy for each video Tisoy produced and sent. Between July 3, 2023 and Dec. 27, 2024, DeWitte allegedly sent 87 PayPal payments to Tisoy, in amounts ranging from $27 to $958, to film the sexual exploitation of minors in the Philippines – totaling approximately $23,752.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274 or contact USAMA.VictimAssistance@usdoj.gov.The charge of sexual exploitation of minors (and attempt and conspiracy) provides for a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of conspiracy to commit sex trafficking of children provides for a sentence of up to life in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was provided by the Cambridge Police Department; HSI-Baltimore; the Maryland Department of State Police; and the Middlesex District Attorney’s Office. Assistant U.S. Attorneys Sandra Gonzalez Sanchez and Anne Paruti of the Criminal Division are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Felon Sentenced in Possession of Firearm That Had Been Outfitted with a Machine Gun ‘Giggle Switch’Read the Press Release
WASHINGTON – Sherwood Russell, 35, a previously convicted felon residing in the District of Columbia, was sentenced today in U.S. District Court to 27 months in federal prison for illegal possession of a firearm outfitted with a machine gun conversion device during which he struck a police officer with his vehicle, assaulted a woman, resisted arrest, and threatened an additional police officer, announced U.S. Attorney Jeanine Ferris Pirro.
Russell pleaded guilty on Sept. 4, 2025, to unlawful possession of a firearm and ammunition by a felon. In addition to the prison term, Judge Christopher R. Cooper ordered Russell to serve three years of supervised release.
Joining in the announcement were Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Chief Pamela A. Smith of the Metropolitan Police Department.
According to court documents, on May 4, 2025, about 6:46 p.m., MPD officers responded to a call for a domestic disturbance on the 2000 block of 11th St. NW. Officers observed Russell grabbing a woman by her arms. Russell then entered his vehicle, a white Tesla with New Jersey tags.
An officer instructed Russell to exit the vehicle. Instead, Russell turned the wheel, accelerated the vehicle, and struck the officer in the leg. After crashing into a fence, Russell exited the vehicle and attempted to flee. Officers tackled Russell and placed him under arrest.
Officers looked into Russell’s vehicle and noticed a spilled open container of alcohol in the front seat. While conducting a probable cause search of the vehicle for more open containers of alcohol, officers recovered a Glock 23 .40 caliber pistol, loaded with 26 rounds of ammunition. The Glock was modified with a “giggle switch” that converted the semi-automatic into a fully automatic machine gun.
Russell previously was convicted in 2011 of burglary one while armed with gun, assault with a dangerous weapon (AWD), and related counts and sentenced to 10 years in prison on the burglary conviction and 30 months for the AWD.
This case was investigated by the ATF and the MPD. It was prosecuted by Assistant U.S. Attorney David Liss.
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Federal Jury Finds Plant City Gas Station Robber GuiltyRead the Press Release
Tampa, FL – United States Attorney Gregory W. Kehoe announces that a federal jury has found Emarjai Walker (29, Plant City) guilty of interference with commerce by robbery and discharging a firearm during a violent felony. Walker faces a maximum penalty of life in federal prison.
According to testimony and evidence presented at trial, just before midnight on April 5, 2020, Walker robbed a gas station located at 2911 James Redman Parkway in Plant City. After the clerk opened the register as Walker had demanded, Walker shot the clerk in the face. While his victim was lying on the floor bleeding, Walker fired a second shot which barely missed the clerk’s head. Walker ran from the store leaving the clerk for dead. The victim was discovered by a customer 10 minutes after the shooting. Although Walker was disguised and masked, the clerk’s familiarity of Walker’s mannerisms from previous visits to the store allowed him, from his hospital bed days later, to identify Walker as the shooter. Further investigation revealed that Walker had done extensive media research following the shooting and that he had tried to sell a .38 handgun the next day.
This case was investigated by the Plant City Police Department, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Jim Preston and Brooke Padgett.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Federal Jury Convicts Man of Sending Threatening Letter to Spiritual Mission in Suburban ChicagoRead the Press Release
CHICAGO — A federal jury has convicted a Georgia man of sending a threatening letter to a spiritual mission in suburban Chicago.
In July 2023, JIMIL PARMAR mailed a letter to the Sant Nirankari Mission in West Chicago, Ill. The letter stated, “CANCEL US CANADA TOUR IMMEDIATELY SRS ATTACK PLANNED.” The threat coincided with the visit of the Mission’s spiritual leader, Satguru Mata Sudiksha Ji Maharaj, who was touring the United States and Canada that summer, including scheduled appearances in Chicago and Atlanta, Ga. At least four other Sant Nirankari Missions in the United States received identical letters that summer, and all of them were postmarked from the Atlanta metropolitan area.
Parmar, 33, of Lawrenceville, Ga., was found guilty on Wednesday of mailing a threatening communication. The jury returned its verdict after a three-day trial in U.S. District Court in Chicago.
The conviction is punishable by up to five years in federal prison. U.S. District Judge Matthew F. Kennelly set sentencing for March 4, 2026, at 1:15 p.m.
The conviction was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Atlanta Field Office of the FBI. The government is represented by Assistant U.S. Attorneys Kavitha J. Babu and Ramon Villalpando.
Fall River Woman Sentenced to Nearly Six Years in Prison for Sex Trafficking ConspiracyRead the Press Release
BOSTON – A Fall River woman was sentenced yesterday in federal court in Boston for her role in a sex trafficking conspiracy.
Cory Primo, 43, of Fall River, was sentenced by U.S. District Court Angel Kelley to 70 months in prison and five years of supervised release. Primo was also ordered to pay $5,000 in restitution to the three victims in this matter. In August 2025, Primo pleaded guilty to one count of conspiracy to commit sex trafficking. She was among six individuals charged in July 2024.
From in and around April 2023 until August 2023, Primo conspired with others to traffic a Massachusetts adult woman and two minors. Primo indicated that she started helping her co-defendant sell the victims because she was “broke.” Primo sent pictures of the victims to sex buyers, communicated with sex buyers to schedule commercial sex acts and negotiated prices. Primo joked about her role in the conspiracy, referring to it as like “playing a game of Tetris.” She also encouraged another co-defendant to be violent toward the victims and expressed indifference to what the victims had to endure, as long as they continued to make money.
United States Attorney Leah B. Foley; Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was provided by the Somerset Police Department. Assistant U.S. Attorney Elizabeth Riley, Chief of the Human Trafficking & Civil Rights Unit and Trial Attorney Francisco Zornosa of the Criminal Division prosecuted the case.
Former Vipd Commissioner and Former Omb Director Found Guilty on All Counts in Federal Corruption TrialRead the Press Release
St. Thomas, VI –United States Attorney Adam F. Sleeper announced today that Ray Martinez, former Commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, former Director of the Virgin Islands Office of Management and Budget (OMB), were found guilty on all counts following a one-week jury trial before United States District Judge Mark A. Kearney. Martinez and O’Neal were convicted of participating in a wide-ranging public corruption scheme involving honest services wire fraud, federal program bribery, conspiracy to commit money laundering, and, in Martinez’s case, obstruction of justice.
“Public corruption erodes trust in government and interferes with the provision of important services to the community,” said United States Attorney Adam Sleeper. “These convictions show that those who violate the public trust, whoever they are, will be held accountable.”
“Today’s verdict delivers a clear message: no one is above the law,” said Joe Rodriguez, Acting Special Agent in Charge of the FBI’s San Juan Field Office, which covers the US Virgin Islands. “The FBI remains steadfast in our commitment to rebuild public trust, which is the foundation of our democracy.”
According to evidence presented at trial, Martinez accepted nearly $100,000 in bribe payments from contractor David Whitaker—including cash, luxury travel, personal expenses, private-school tuition, and restaurant equipment—and used his official authority to approve invoices and award Whitaker a $1.4 million dollar contract funded by federal American Rescue Plan Act dollars. O’Neal, who served as the territory’s chief budget official, knowingly approved a $70,000 inflated invoice under that same contract and later accepted a $17,730 lease payment for her business, Java Grande, using federal funds from the inflated invoice.
The evidence further showed that, after learning of the federal investigation, Martinez attempted to obstruct justice by directing Whitaker to destroy evidence and by creating a fraudulent promissory note in an effort to conceal bribe payments. Martinez and O’Neal each face significant statutory penalties, including terms of imprisonment, and fines. Sentencing dates will be scheduled by the Court.
The FBI San Juan Field Office, St. Thomas Resident Agency investigated the case, in collaboration with the Virgin Islands Office of Inspector General. Trial Attorney Alexandre
Dempsey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cherrisse Amaro for the District of the Virgin Islands are prosecuting the case.Executive Director of Black Lives Matter OKC Charged with Wire Fraud and Money LaunderingRead the Press Release
OKLAHOMA CITY – A federal grand jury Indictment has been unsealed, charging TASHELLA SHERI AMORE DICKERSON, 52, of Oklahoma City, with wire fraud and money laundering, announced U.S. Attorney Robert J. Troester.
According to the Indictment, beginning in at least 2016, Dickerson served as the Executive Director of Black Lives Matter OKC (BLMOKC). As Executive Director, Dickerson had access to BLMOKC’s bank, PayPal, and Cash App accounts.
The Indictment alleges that, although BLMOKC was not a registered tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code, it accepted charitable donations through its affiliation with the Alliance for Global Justice (AFGJ), based in Arizona. AFGJ served as a fiscal sponsor to BLMOKC and required BLMOKC to use its funds only as permitted by Section 501(c)(3). AFGJ also required BLMOKC to fully account upon request for the disbursement of all funds received and prohibited BLMOKC from using its funds to purchase real estate without AFGJ’s consent.
Beginning in late spring 2020, BLMOKC raised funds to support its social justice mission from online donors, as well as from national bail funds. In total, BLMOKC raised more than $5.6 million, which included grants from national bail funds, including the Community Justice Exchange, Massachusetts Bail Fund, and Minnesota Freedom Fund. Most of those funds were routed through AFGJ, as fiscal sponsor, to BLMOKC.
According to the Indictment, BLMOKC was supposed to use these national bail fund grants to post pretrial bail for individuals arrested in connection with protests for racial justice after the death of George Floyd. When bail funds were returned to BLMOKC, the national bail funds sometimes allowed BLMOKC to keep all or a portion of the grant funding to establish a revolving bail fund, or for BLMOKC’s social justice mission, as permitted by Section 501(c)(3).
Despite the stated purpose of the money raised, and the terms and conditions of the grants, the Indictment alleges that beginning in June 2020 and continuing through at least October 2025, Dickerson embezzled funds from BLMOKC’s accounts for her personal benefit. The Indictment alleges Dickerson deposited at least $3.15 million in returned bail checks into her personal accounts, rather than into BLMOKC’s accounts. Among other things, Dickerson then used these funds to pay for:
- recreational travel to Jamaica and the Dominican Republic for herself and her associates;
- tens of thousands of dollars in retail shopping;
- at least $50,000 in food and grocery deliveries for herself and her children;
- a personal vehicle registered in her name; and
- six real properties in Oklahoma City deeded in her own name or in the name Equity International, LLC, an entity she exclusively controlled.
The Indictment further alleges that Dickerson used interstate wire communications to submit two false annual reports to AFGJ on behalf of BLMOKC. Dickerson reported that she had used BLMOKC funds only for tax-exempt purposes. She did not disclose that she used funds for her personal benefit.
On December 3, 2025, a federal Grand Jury returned a 25-count Indictment, charging Dickerson with 20 counts of wire fraud and five counts of money laundering. For each count of wire fraud, Dickerson faces up to 20 years in federal prison, and a fine of up to $250,000. For each count of money laundering, Dickerson faces up to ten years in prison and a fine of up to $250,000 or twice the amount of the criminally derived property involved in the transaction.
The public is reminded that these charges are merely allegations, and that Dickerson is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the FBI Oklahoma City Field Office and IRS-Criminal Investigation. Assistant U.S. Attorneys Matt Dillon and Jessica L. Perry are prosecuting the case.
Reference is made to public filings for additional information.
Everett Man Pleads Guilty to Selling FirearmsRead the Press Release
BOSTON – An Everett man pleaded guilty today to trafficking more than half a dozen firearms, including AM-15 rifles.
Joao Victor Da Silva Soares, 21, pleaded guilty to one count of dealing firearms without a license and one count of conspiracy to engage in the business of dealing in firearms without a license. U.S. District Court Judge Myong J. Joun scheduled sentencing for April 1, 2026. Da Silva Soares was charged by criminal complaint in January 2025 and subsequently indicted by a federal grand jury in July 2025.
Between August and September 2024, Da Silva Soares supplied firearms for sale in Eastern Massachusetts. Specifically, on Aug. 26, 2024, Da Silva Soares delivered two AM-15 rifles and sold them for $6,000 in a parking lot in Malden. On Sept. 11, 2024, Da Silva Soares participated in another sale involving a total of five firearms (consisting of rifles, pistols and a shotgun) outside a residence in Milford.
The charges of conspiracy and engaging in the business of dealing firearms without a license each provide for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Patricia H. Hyde, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Valuable assistance was provided by the Massachusetts State Police and the Malden and Milford Police Departments. Assistant U.S. Attorney John Reynolds of the Organized Crime & Gang Unit is prosecuting the case.
Dorchester Man Pleads Guilty to Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
BOSTON – A Dorchester man pleaded guilty yesterday to unlawfully possessing a firearm and ammunition as a convicted felon.
Robert Campbell, 36, pleaded guilty to one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Jan. 13, 2027. Campbell was charged in January 2025 and later indicted by a federal grand jury in February 2025.
On Jan. 28, 2025, in Dorchester, Campbell possessed a Glock 32, .357 caliber handgun, 14 rounds of .357 caliber ammunition, 40 rounds of .45 caliber ammunition and 75 rounds of 9mm ammunition, after having been convicted of a felony.
The charge of being a felon in possession provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement. Assistant United States Attorneys Mark Grady and Allegra Flamm of the Major Crimes Unit are prosecuting the case.
Crypto-Enabled Fraudster Sentenced for Orchestrating $40 Billion FraudRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced today that DO HYEONG KWON was sentenced to 15 years in prison for committing wire fraud and conspiring to commit securities fraud, commodities fraud, and wire fraud in connection with KWON’s fraud centered around Terraform Labs PTE, Ltd. (“Terraform”), and the cryptocurrencies launched by Terraform. KWON was extradited on December 31, 2024, and pled guilty in August 2025 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.
“Do Kwon devised elaborate schemes to mislead investors and inflate the value of Terraform’s cryptocurrencies for his own benefit,” said U.S. Attorney Jay Clayton. “When his crimes caught up to him, Kwon embarked on a deceptive public relations campaign to cover up his fraud, laundered the proceeds of his illegal schemes, and sought to purchase political protection in foreign countries to evade criminal prosecution. Let there be no mistake, fraud is fraud whether it takes place on our streets, in our securities markets, or in our emerging and important digital asset ecosystem, and no matter where in the world criminals may seek refuge, the women and men of the Southern District of New York will relentlessly pursue justice for investors and protect the integrity of financial markets.”
According to the allegations in the Superseding Indictment and statements made in public court filings and proceedings:
From at least in or about 2018, up to and including in or about 2022, KWON orchestrated schemes to defraud purchasers of cryptocurrencies created and issued by Terraform. Terraform was a blockchain and cryptocurrency company co-founded by KWON in 2018. Terraform distinguished the Terra blockchain from other competing blockchains by issuing so-called algorithmic stablecoins pursuant to what it called the “Terra Protocol.” According to KWON and others, Terraform stablecoins maintained a steady value even under changing market conditions. In or around September 2020, Terraform publicly announced the launch of Terraform’s stablecoin pegged to the U.S. dollar, TerraUSD (“UST”). Terraform promotional materials claimed that, under the Terra Protocol, one UST could always be exchanged for $1 worth of LUNA, the Terra blockchain’s native token. Conversely, $1 worth of LUNA could always be exchanged for one UST.
KWON claimed that Terraform had used blockchain technology to create a self-contained, decentralized financial world with its own money, payment system, stock market, and savings bank. KWON presented Terraform as having developed functioning, reliable financial technologies on the cutting edge of a movement towards “decentralized finance” (or “DeFi”), in that Terraform’s products purportedly operated largely through automated mechanisms and economic incentives, and that Terraform’s systems were governed by their users rather than by KWON and his associates and subordinates.
In fact, core Terraform products did not work as KWON advertised and were manipulated to create the illusion of a functioning and decentralized financial system in order to lure investors. KWON engaged in this deceptive conduct in order to pump up the value of Terraform’s cryptocurrencies, which KWON and entities he controlled (a) possessed in large amounts and (b) sold to investors in exchange for billions of dollars’ worth of other assets.
The misrepresentations that KWON made in furtherance of his schemes to defraud included the following:
- The Stablecoin Misrepresentations: KWON lied about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (“UST”), at a value of $1 for one UST. Beginning at least in or about 2020, KWON and his associates advertised the Terra Protocol, including the economic incentives it created in the market, as sufficient on its own to maintain parity between one UST and one U.S. dollar. In particular, KWON claimed that the Terra Protocol on its own had caused the successful restoration of UST’s $1 value after it dropped below 92 cents in or about May 2021. That was a lie. In truth, after the Terra Protocol on its own failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the “Trading Firm”) to have the Trading Firm purchase large amounts of UST to artificially support UST’s $1 peg. UST’s $1 peg was restored in May 2021 only after the Trading Firm strategically purchased millions of dollars of UST for the purpose of artificially propping up the peg.
- The LFG Misrepresentations: KWON lied about the governance of the Luna Foundation Guard Ltd. (the “LFG”), a purportedly independent body the creation of which KWON publicly announced in or about January 2022. KWON claimed that the LFG was managed by a governing body that operated independently of Terraform and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg. In truth, KWON simultaneously controlled both the LFG and Terraform at all relevant times following the creation of the LFG; operated the LFG as an arm of Terraform rather than as an independent entity; repeatedly made significant financial decisions for the LFG without the prior approval of its governing body; and treated the LFG’s funds as interchangeable with Terraform’s funds when it suited KWON’s interests, resulting in KWON misappropriating hundreds of millions of dollars in assets from the LFG. KWON and others acting at his direction then sought to launder those misappropriated funds using a variety of transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds.
- The Mirror Misrepresentations: KWON lied about the control, operation, and extent of user adoption of an investing application on the Terra blockchain called Mirror Protocol (“Mirror”), that purportedly allowed for the creation, buying, and selling of synthetic versions of stocks listed on United States securities exchanges. KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance. In truth, KWON and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets issued by Mirror. KWON funded those manipulative trading bots in part by using a supply of one billion stablecoins that he created at the genesis of the Terra blockchain (the “Genesis Stablecoins”). KWON also caused Terraform to inflate key user metrics to deceive investors about the extent of Mirror’s adoption and decentralization.
- The Chai Misrepresentations: KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai. KWON pointed to Chai’s purported use of the Terra blockchain as evidence that Terra had “real world” applications or uses, as distinct from competing cryptocurrency platforms. In truth, Chai processed transactions through traditional financial processing networks, not the Terra blockchain. To create the illusion that Chai processed transactions through the Terra blockchain, KWON and his co-conspirators used an automated process that copied transactions onto the Terra blockchain. KWON used the Genesis Stablecoins in part to fund these fraudulent efforts.
- The Genesis Coin Misrepresentations: When the Terra blockchain was first established in or about 2019, KWON arranged for it to have a preexisting supply of approximately one billion Terra stablecoins (the Genesis Stablecoins). KWON provided limited, shifting, and knowingly false disclosures to investors about the Genesis Stablecoins. Rather than using the Genesis Stablecoins solely for the purposes set forth in disclosures to investors, KWON used the Genesis Stablecoins for fraudulent purposes, such as funding (i) fake Chai blockchain transactions and (ii) trading bots to manipulate the prices of synthetic assets issued by Mirror.
Enticed, in part, by the fraudulent claims of KWON, both institutional and retail investors flocked to the Terra blockchain, such that, at its peak in the spring of 2022, the total market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion. KWON solicited and obtained investments from several investment firms in the United States and other locations, with the investments primarily consisting of agreements for the purchase or loan of Terraform’s cryptocurrencies built on the Terra blockchain. Much of this growth followed KWON’s brazen deceptions about Terraform and its technology, including efforts by KWON and his associates to paper over UST’s vulnerabilities in May 2021 by secretly manipulating the market for UST.
By May 2022, UST’s peg began to break again. By this time, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to one year prior, in May 2021, when KWON sought to deceptively manipulate UST to maintain its $1 value. While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022 when the market had expanded substantially. As a result, UST and LUNA crashed, resulting in over $40 billion worth in investor losses.
After the crash of UST and LUNA in May 2022, and the initiation of government investigations in multiple jurisdictions into the crash, KWON sought to continue Terraform’s business operations and made public remarks about being in “full cooperation” with law enforcement inquiries. In truth, KWON sought to evade accountability. In a recorded conversation with an associate in or about August 2022, for example, KWON stated, in substance and in part, that his strategy with law enforcement investigating the crash of UST and LUNA was to “tell them to fuck off,” and that he had been taking steps to obtain “political protection” from multiple countries and was “pretty comfortable” that he would not be extradited to face criminal charges.
On or about March 23, 2023, KWON was arrested in Montenegro for trying to use a fraudulent passport.
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In addition to the prison term, KWON, 34, of the Republic of Korea, was ordered to forfeit over $19 million in proceeds from his illegal schemes, including his interest in Terraform and its cryptocurrencies.
Mr. Clayton praised the investigative work of the Federal Bureau of Investigation (“FBI”), FBI’s Virtual Assets Unit, FBI’s Economic Crimes Unit, FBI’s International Operations Division, and the Department of Justice’s Office of International Affairs for their assistance. Mr. Clayton further thanked the U.S. Securities and Exchange Commission, which previously conducted a separate civil action against KWON. Mr. Clayton commended the Ministry of Justice of the Republic of Montenegro and the Ministry of Justice of the Republic of Korea for their cooperation and assistance in this matter.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite B. Colson, Sarah Mortazavi, and Kimberly Ravener are in charge of the prosecution.
Convicted Murderer Sentenced to Additional Prison Time for Assaulting Detention OfficerRead the Press Release
ALBUQUERQUE – Antonio Chaco, a convicted murderer already serving a federal prison sentence for the 2020 murder of Thomas Brown, received additional prison time for attacking a CoreCivic detention officer while in federal custody awaiting that murder trial.
There is no parole in the federal system.
According to court documents, on November 5, 2024, Chaco, 42, assaulted a CoreCivic detention officer at the Cibola County Correctional Center. After the officer opened Chaco’s cell door, Chaco launched a surprise attack, punching her repeatedly in the face, attempting to throw her over a second-floor railing, and then taking her to the ground, where he straddled and strangled her.
Following the assault, medical staff evaluated the officer and documented bruising and swelling on the left side of her face, and she later sought additional treatment at a local hospital for neck, arm, and facial pain.
At the time of the assault, Chaco was in federal custody awaiting trial in connection with the 2020 killing of Thomas Brown, whom he beat and abandoned in the To’Hajiilee wilderness without food, water, or shelter. Chaco later pleaded guilty to second-degree murder in that case and was sentenced to 17 years in prison.
In this case, the Court imposed a second 46-month term of imprisonment for the assault. 24 months of that sentence will run consecutively, resulting in an additional two-year period of incarceration beyond the 17-year sentence Chaco is already serving.
Acting U.S. Attorney Ryan Ellison and United States Marshal David Barnett made the announcement today.
The U.S. Marshals Service investigated this case. Assistant U.S. Attorney Zachary C. Jones and Brittany DuChaussee prosecuted both cases.
Convicted Felon Charged with Illegally Possessing a FirearmRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury has indicted a convicted felon for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona.
A one-count indictment filed in U.S. District Court charges Marty Dwayne Beasley, 48, of Hackleburg, Alabama, with being a felon in possession of a firearm.
According to the indictment, on March 12, 2024, Beasley illegally possessed a Jennings .22 caliber pistol. Beasley is prohibited from possessing a firearm following prior felony convictions, including convictions on November 29, 2018, of the offense of Sexual Abuse First Degree; on August 4, 2010 of Attempted Unlawful Manufacturing of a Controlled Substance and Attempted Possession of a Controlled Substance; and on February 1, 2006, of the offense of Theft of Property, all in the Circuit Court of Franklin County, Alabama; and on August 6, 2010, of the offense of Unlawful Manufacturing a Controlled Substance, in the Circuit Court of Lauderdale County, Alabama.
The FBI investigated the case along with the Franklin County Sheriff’s Office. Assistant U.S. Attorney Sara M. Judah is prosecuting the case.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
Company to Pay $102,000 to Resolve Civil Fraud Allegations Related to Pandemic LoanRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that WP Deli LLC (WP Deli), a Colorado business, and its majority owner and chief executive, Robert Montuoro, of Stratton, Vermont, will pay $102,000 to resolve allegations that they violated the False Claims Act by misusing funds procured through the Paycheck Protection Program (PPP).
According to the settlement agreement, WP Deli, through Mr. Montuoro, submitted an application for a PPP loan in May 2020. The PPP was established pursuant to the Coronavirus Aid, Relief, and Economic Security Act to provide emergency financial assistance to millions of Americans suffering economic effects caused by the COVID-19 pandemic. Under the program, small businesses could receive loans that the Small Business Administration (SBA) would forgive if the PPP regulations were followed, including rules related to eligible uses of PPP loan proceeds.
The SBA approved WP Deli’s loan application, and the company received $40,915 for use on payroll and other authorized expenses. Yet, the government’s investigation revealed that in June 2020, Mr. Montuoro diverted some of the PPP funds to cover his own improper, personal expenses. In March 2021, WP Deli, through Mr. Montuoro, submitted a PPP loan forgiveness application, falsely certifying that the PPP requirements for use of the loan had been met. The government alleges that this knowing misuse of the PPP loan violated the False Claims Act, a civil fraud statute.
“PPP loans were meant to provide a lifeline to small businesses during the pandemic but instead were often misused,” said First Assistant United States Attorney Michael P. Drescher. “This office will continue to pursue businesses and individuals who wrongly exploited pandemic programs and to recover ill-gotten funds on behalf of taxpayers.”
To resolve the claims against them, WP Deli and Mr. Montuoro jointly have agreed to pay to the United States a total of $102,000. This amount reflects Mr. Montuoro’s acceptance of responsibility and cooperation with the government investigation.
Assistant United States Attorneys Nicole Cate and Lauren Almquist Lively handled this matter for the U.S. Attorney’s Office for the District of Vermont. Investigative support was provided by the United States Secret Service and the U.S. Treasury Inspector General for Tax Administration.
The settlement agreement is available at this link: Settlement Agreement USAVT and WP Deli
Columbia Gang Member Sentenced to Federal Prison for Illegal Gun PossessionRead the Press Release
COLUMBIA, S.C. — Taylor Molic Morris, 23, of Columbia, has been sentenced to more than three years in federal prison after being convicted at trial for being a felon in possession of ammunition.
On June 6, 2025, a jury found Taylor Morris guilty of being a felon in possession of ammunition. Evidence presented during trial and at sentencing revealed that on June 11, 2023, around 5:00 a.m., Morris was involved in a shooting at a night club on Broad River Road in Columbia. During the shooting, Morris possessed a loaded firearm that she purchased approximately three weeks prior. The evidence revealed Morris fired the gun four times, leaving behind four shell casings, which were fired from the same firearm. After the shooting, Morris fled from the scene. Prior to this incident, the Midlands Gang Task Force identified Morris as a validated gang member.
Morris has prior convictions for strong arm robbery and bank fraud which prohibit her from possessing firearms and ammunition under federal law. Morris was on probation for these charges at the time of the night club shooting.
United States District Judge Joseph F. Anderson Jr. sentenced Morris to 46 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Richland County Sheriff’s Department. Assistant U.S. Attorneys Lamar Fyall and Ariyana Gore are prosecuting the case.
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Charleston Man Sentenced to More than 10 Years in Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jason K. Hairston, 28, of Charleston, was sentenced today to 10 years and 10 months in prison, to be followed by five years of supervised release, for distribution of 50 grams or more of methamphetamine.
According to court documents and statements made in court, between September 13, 2024, and January 30, 2025, Hairston sold a total of approximately 1.1 kilograms of methamphetamine for a total of $5,000 over the course of four separate transactions. As part of his guilty plea, Hairston admitted to the transactions and further admitted to selling a total of approximately 61.3 grams of heroin on two occasions for a total of $4,200 and an AR-style pistol for $1,000 during the time period. Each transaction was with a confidential informant and took place in Charleston.
On February 4, 2025, law enforcement officers executed a search warrant at Hairston’s residence and seized nearly 2 pounds of methamphetamine, six firearms, an assortment of ammunition and magazines, drug trafficking paraphernalia, and $18,057.
United States Attorney Moore Capito made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney JC MacCallum prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:25-cr-28.
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Canton Man Sentenced for Multi-Million-Dollar Health Care Fraud SchemeRead the Press Release
BOSTON – A Canton, Mass., man was sentenced today in federal court in Boston in connection with a scheme to defraud Medicare of over $4 million by submitting claims for durable medical equipment (DME) that was medically unnecessary, not wanted by the Medicare beneficiaries and tainted by kickbacks.
Krishna Gidwani, 55, was sentenced by U.S. Senior District Court Judge Patti B. Saris to 30 months in prison to be followed by three years of supervised release. Gidwani was also ordered to pay more than $3 million in restitution to Medicare. In August 2025, Gidwani pleaded guilty to one count of conspiracy to commit health care fraud.
Gidwani worked with Raju Sharma, and other co-conspirators, to own and operate a DME company that paid telemarketing companies for DME orders for orthotics such as ankle, wrist, knee and back braces. Often, the Medicare beneficiaries did not need or want the braces the defendants shipped them and as further alleged, the doctors whose signatures appeared on these DME orders often did not treat these beneficiaries and did not prescribe the DME.This case is part of the Department of Justice’s 2025 National Health Care Fraud Takedown – a strategically coordinated, nationwide law enforcement action that resulted in criminal charges against 324 defendants for their alleged participation in health care fraud and illegal drug diversion schemes that involved the submission of over $14.6 billion in intended loss and over 15 million pills of illegally diverted controlled substances. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets. The United States has seized over $245 million in cash, luxury vehicles and other assets in connection with the takedown.
United States Attorney Leah B. Foley; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General made the announcement today. Assistant U.S. Attorneys Lauren A. Graber and Sarah B. Hoefle of the Criminal Division prosecuted the case.California Woman Sentenced for Decades Long Fortune Fraud SchemeRead the Press Release
ALBUQUERQUE – A California woman was sentenced to 30 months in prison and will be ordered to pay more than one million dollars in restitution for orchestrating a decades long advance fee fraud scheme that promised victims access to a nonexistent multi-million-dollar fortune.
There is no parole in the federal system.
According to court records, beginning in 2001 and continuing through September 2023, Lanette Bashore orchestrated an advance fee fraud scheme in which she falsely claimed to own or control a multi-million-dollar fortune that was tied up by taxes, legal holds, and other financial barriers. Using a mutual acquaintance to gain victims’ trust, Bashore convinced individuals in New Mexico and elsewhere to send her thousands of dollars up front to “unlock” the purported fortune, promising to repay them with massive returns. In reality, no such fortune existed. Bashore deposited the victim payments into bank accounts she controlled and used the money to fund her personal lifestyle and gambling.
As victims grew suspicious and reported the scheme, the FBI opened an investigation that confirmed Bashore’s fraud through victim interviews and banking records. After being interviewed by agents in 2023, Bashore contacted victims and attempted to persuade at least one of them to falsely characterize her representations about the multi-million-dollar fortune to the FBI, conduct that resulted in an obstruction enhancement at sentencing.
Bashore pled guilty to mail fraud. Upon her release from prison, Bashore will be subject to three years of supervised release.
Acting U.S. Attorney Ryan Ellison and Justin A. Garris, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the U.S. Marshals Service. The U.S. Attorney’s Office for the District of New Mexico prosecuted the case.
California Man Sentenced to 6 Years for Drug TraffickingRead the Press Release
HONOLULU – United States Attorney Ken Sorenson announced that Lynden David Lightburn, 52, of Los Angeles, California was sentenced today by United States District Judge Jill A. Otake to 72 months in federal prison for conspiring to distribute fentanyl, heroin, and methamphetamine, followed by 5 years of supervised release.
According to court records, from September 2020 to June 30, 2021, Lightburn, a/k/a “Soulja,” supplied more than 6.6 kilograms of fentanyl, 6.4 kilograms of heroin, and 2.8 kilograms of methamphetamine to a Honolulu drug trafficking organization (DTO) co-led by Gabriel Antone Eberhardt, 43, of Detroit, Michigan, and Jason Darnell Smith, 42, of Detroit, Michigan. The DTO obtained drugs from Lightburn in Los Angeles, as well as Robert Adams, 38, of Philadelphia, Pennsylvania. Lightburn and Adams mailed the drugs to Honolulu. The DTO distributed fentanyl—a potent synthetic opioid 50 times stronger than heroin—in mixtures with heroin and in counterfeit oxycodone tablets.
During an investigation by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), and the Honolulu Police Department (HPD), agents made dozens of controlled purchases of fentanyl, heroin, and methamphetamine from the conspirators, and executed 15 search warrants on residences, rental storage units, and parcels. As a result of the controlled purchases and warrants, law enforcement agents seized more than 15 kilograms of fentanyl, heroin, and methamphetamine, seven firearms, including assault rifles and semi-automatic pistols, hundreds of rounds of ammunition, a vehicle, and more than $250,000 in cash drug proceeds.
“Today’s sentence brings to a close years of collaboration between the U.S. Attorney’s Office and our partners across multiple federal and local law enforcement agencies, as we worked tirelessly to bring down this large-scale, prolific, and dangerous drug trafficking operation,” said U.S. Attorney Ken Sorenson. “The aggressive pursuit and dismantling of drug enterprises that pump illicit drugs into Hawaii remains one of our top priorities. We will continue to devote our time, effort, and resources to protecting our community from those who seek to poison it with illegal narcotics, along with the violence and criminal use of firearms that drug trafficking spawns.”
“This sentencing, and the overall resolution of the related investigation, represents years of collaboration between multiple law enforcement agencies to dismantle one of Hawaii’s most dangerous drug trafficking organizations,” said FBI Honolulu Special Agent in Charge David Porter. “The FBI—in coordination with our partners—will continue to use every available resource to protect our communities by taking these violent offenders off the board and bringing them to justice.”
“Today’s sentencing closes the loop on a network of incessant drug traffickers, whose crimes threatened the safety and wellbeing of the island community,” said Anthony Chrysanthis, Deputy Special Agent in Charge for the DEA Los Angeles Field Division, which oversees Honolulu. “This case reflects DEA’s continued commitment to holding drug traffickers accountable and stemming the flow of fentanyl, methamphetamine, and other dangerous drugs.”
“This case shows the power of collaboration,” said ATF Seattle Field Division Acting Special Agent in Charge Eric Jackson. “When federal, state, and local law enforcement work together, our resources are unlimited and our efforts unmatched. It is through these partnerships that we continue to hold accountable those who seek to profit from dealing illegal and dangerous drugs in our communities.”
“The trafficking of dangerous drugs like fentanyl and methamphetamine through the U.S. Mail puts Postal Service employees and our communities at risk. Postal Inspectors will aggressively pursue anyone who uses the mail to transport and distribute deadly drugs,” said Stephen Sherwood, Postal Inspector in Charge of the United States Postal Inspection Service’s San Francisco Division. “We thank our federal and local partners for working with us to combat these crimes and make our communities safer.”
In addition to Lightburn, who is the last of his coconspirators to be sentenced, the following defendants were prosecuted in this and related cases in the District of Hawaii:
- Eberhardt, a/k/a “Stacks,” pled guilty to conspiracy and possession of a firearm in connection with a drug trafficking crime, and was sentenced on October 21, 2024, to 30 years in federal prison and five years of supervised release;
- Smith, a/k/a “Famous,” a/k/a “Sweets,” pled guilty to conspiracy, and was sentenced on February 4, 2024, to 14 years in federal prison and five years of supervised release;
- Martzes Junior, a/k/a “Green,” 44, of Southfield, Michigan, pled guilty to conspiracy and possession of a firearm in connection with a drug trafficking crime, and was sentenced on December 10, 2024, to 12 years in federal prison and five years of supervised release;
- Adams, a/k/a “Tre,” a/k/a “Tre Block,” a/k/a “Block,” a/k/a “T-Block,” a/k/a “Ray Smith,” pled guilty to conspiracy, and was sentenced on July 11, 2025, to 10 years in federal prison and five years of supervised release;
- Jared Northern, a/k/a “White Boy Jay,” a/k/a “Gage,” 26, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on May 15, 2024, was sentenced to 10 years in federal prison and five years of supervised release;
- Jennifer Ashcraft, a/k/a “Jessie,” a/k/a “Jess,” 34, of Honolulu, pled guilty to conspiracy, and was sentenced on January 28, 2025, to 37 months in federal prison and five years of supervised release;
- Zakiyyah Mareus, a/k/a “Kai,” 28, of Miami Gardens, Florida, pled guilty to conspiracy, and on August 8, 2024, was sentenced to 37 months in federal prison and three years of supervised release;
- Isaiah Marks, a/k/a “Seh,” 26, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on January 18, 2023, was sentenced to 24 months in federal prison and four years of supervised release;
- Tishanah Iwalani Kaio-Barrozo, 34, of Honolulu, pled guilty to distribution of controlled substances, and on June 7, 2022, was sentenced to 9 months in federal prison and three years of supervised release;
- Michael Garrett, a/k/a “Sideburns,” a/k/a “Burns,” 42, of Romulus, Michigan, pled guilty to conspiracy, and on March 28, 2024, was sentenced to 3 months in federal prison and five years of supervised release;
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN).
The case was investigated by the FBI, DEA, ATF, USPIS, and HPD. Assistant U.S. Attorney Craig S. Nolan is prosecuting the case.
Cross City Correctional Officer Charged with Child Sexual Exploitation and Distribution of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Devin Waldeck, 35, of Cross City, Florida, has been charged by federal criminal complaint with one count of sexual exploitation of children and one count of distribution of material constituting child pornography. The charges were announced by John P. Heekin, United States Attorney for the Northern District of Florida.
If convicted, Waldeck faces a minimum of fifteen years’, and up to thirty years’, imprisonment on the sexual exploitation of children count, and a minimum of five years’, and up to twenty years’, imprisonment on the distribution of material constituting child pornography count.
The case involves an investigation by the Federal Bureau of Investigation with assistance from the Dixie County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Christie S. Utt.
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 and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
CEO of Telecommunications Construction Company Charged with Commercial Bribery, Fraud, and Witness Tampering OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, Commissioner of the New York City Department of Investigation (“DOI”), Jocelyn E. Strauber, Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General (“FDIC-OIG”), Patricia Tarasca, and Special Agent in Charge of the New York Field Office of Internal Revenue Service-Criminal Investigation (“IRS-CI”), Harry T. Chavis, Jr., announced today the unsealing of an Indictment charging ANTHONY TEPEDINO—the founder, chief executive officer (“CEO”), and owner of a telecommunications construction and engineering company (the “Construction Company”) based in New Jersey—with commercial bribery, fraud, and witness tampering offenses. TEPEDINO was arrested this morning and will be presented today before U.S. Magistrate Judge Barbara Moses. The case is assigned to U.S. District Judge Richard M. Berman.
“As alleged, Anthony Tepedino turned a major construction company into his personal cash machine, stealing from companies that serve New Yorkers, bribing insiders, and lying to banks to keep the scheme alive,” said U.S. Attorney Jay Clayton. “Fraud and corruption hurt real people in this city, and we will hold accountable any executive who abuses the trust placed in them.”
"Anthony Tepedino allegedly stole millions of dollars from his own company by fabricating fake businesses, invoices, and even a story to conceal his misconduct,” said FBI Assistant Director in Charge Christopher G. Raia. “Rather than serve the best interest of his company, Tepedino allegedly abused his rank as CEO and founder to mislead trusted customers and steer their money into his private accounts. The FBI will continue to investigate those who exploit their authoritative position to defraud others for personal profits.”
“As alleged, this defendant engaged in various fraud schemes, stealing millions of dollars from a company he founded and controlled through the use of shell companies and fake documents, and using some of those stolen funds to make commercial bribe payments to a co-conspirator in exchange for steering new contracts, also worth millions, to his company,” said DOI Commissioner Jocelyn E. Strauber. “I thank the U.S. Attorney’s Office for the Southern District of New York and our federal law enforcement partners for their work on this important investigation.”
“The FDIC-OIG is pleased to join our law enforcement colleagues in announcing this indictment,” said FDIC-OIG Special Agent in Charge Patricia Tarasca. “The charges reflected in this indictment reinforce the FDIC-OIG’s commitment to investigating allegations of fraud, bribery, and other crimes, as we seek to preserve the integrity of our Nation’s financial system.”
“The allegations against Tepedino paint a rainbow of fraud and criminal acts over more than half a decade,” said IRS-CI Special Agent in Charge Harry T. Chavis, Jr. “Bribery, bank fraud, and stealing from his own company are on the list of ways he’s alleged to have funded his life of luxury. IRS-CI continues to partner in investigations and use its financial expertise to subject alleged conduct like Tepedino’s to justice.”
As alleged in the Indictment:[1]
From at least in or about 2018 through in or about 2024, TEPEDINO—the CEO, founder, and sole shareholder of the Construction Company—engaged in a series of schemes to defraud the Construction Company’s largest customer (the “Victim Company”), its largest creditor (the “Victim Bank”), and the Construction Company itself. To carry out these schemes, TEPEDINO and others formed shell companies, created fake invoices, and looted the Construction Company of more than $5 million. TEPEDINO then used some of those proceeds to bribe an employee of the Victim Company and to make millions of dollars in payments to himself, his relatives, and to his creditors.
The Construction Company was in operation for over a decade and eventually grew to earn up to hundreds of millions of dollars in revenue annually and to employ more than 500 people. TEPEDINO abused his position as the head of the Construction Company to steal from the company, fund a lavish lifestyle, and commit commercial bribery, bank fraud, wire fraud, and aggravated identity theft.
Beginning in or about 2018, TEPEDINO and a co-conspirator (“CC-1”) submitted false invoices to the Construction Company to generate fraudulent payments to a non-operational shell company (“Shell Company-1”) controlled by CC-1. To conceal their scheme, TEPEDINO and CC-1 falsely claimed Shell Company-1 was owned by a third party (“Individual-1”) and had CC-1 impersonate Individual-1 when communicating with the Construction Company on behalf of Shell Company-1. This scheme continued until at least in or about September 2024, by which time TEPEDINO and CC-1 had stolen at least $5 million from the Construction Company.
From in or about 2020 through in or about September 2024, TEPEDINO used some of the money he stole from the Construction Company to fund more than $1 million in commercial bribe payments to a second co-conspirator (“CC-2”), who was a senior manager at the Victim Company. These bribe payments were made in exchange for CC-2 steering new contracts worth millions of dollars to the Construction Company, assigning work to the Construction Company, and approving invoices submitted by the Construction Company. In total, the Victim Company paid the Construction Company more than $300 million during the approximately four years that Tepedino was bribing CC-2.
While defrauding the Construction Company and bribing CC-2, TEPEDINO also committed bank fraud. From in or about late 2021 through early 2022, TEPEDINO sought more than $18 million in commercial credit from the Victim Bank on behalf of the Construction Company. As part of this credit application, TEPEDINO made and caused to be made false statements and omissions regarding the Construction Company’s relationship with Shell Company-1 and his dealings with CC-2.
Finally, to conceal his offense conduct from law enforcement, in or about September 2024 and thereafter, TEPEDINO attempted to engage in witness tampering by seeking to cause CC-1 and CC-2 to adopt false exculpatory narratives to explain their criminal conduct.
* * *
TEPEDINO, 61, of Manalapan, New Jersey, is charged with one count of conspiracy to commit wire fraud and honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison; one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and one count of witness tampering, which carries a maximum sentence of 20 years in prison.
The statutory maximum penalties in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of the FBI, DOI, FDIC-OIG, IRS-CI, and the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bronx Man Convicted of Kidnapping, Sex Offenses Involving A Minor, and Child Pornography OffensesRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, announced that a jury returned a guilty verdict against ANTHONY WALLACE for kidnapping a minor, coercion and enticement of a minor to engage in illegal sex, transportation of a minor across state lines to engage in illegal sex, and possession and production of child pornography. WALLACE was convicted following a week-long jury trial before U.S. District Judge Mary Kay Vyskocil.
“Anthony Wallace used lies, threats, and violence to sexually abuse a 15-year-old minor victim over the course of a month, ultimately bringing the victim to the Bronx where he forced her to stay with him in a barricaded apartment,” said U.S. Attorney Jay Clayton. “The victim eventually was able to escape and alert law enforcement, and I commend her for her bravery. Our Office remains unwavering in our commitment to protecting children and ensuring that those who harm them face the full weight of the justice system.”
According to the allegations in the Indictment and the evidence at trial:
In March 2024, WALLACE met a 15-year-old girl (the “Minor Victim”) in Binghamton, New York. Over the next four weeks, WALLACE subjected the Minor Victim to escalating physical, sexual, and psychological abuse. At first, WALLACE kept the Minor Victim against her will in an apartment in Binghamton. There, WALLACE assaulted the Minor Victim and forced her to disguise her appearance by dyeing her hair and wearing a mask. WALLACE also gave the Minor Victim a steady stream of drugs, including methamphetamine and marijuana. While in Binghamton, WALLACE created child pornography of the Minor Victim, which he kept on his cellphone.
On April 1, 2024, WALLACE transported the Minor Victim from Binghamton, New York, across state lines, ultimately bringing her to the Bronx, New York, where he kept her in a barricaded apartment. While in the Bronx, WALLACE continued to physically assault the Minor Victim and forcibly raped her.
On April 4, 2024, the Minor Victim escaped through the window of the Bronx apartment while WALLACE was sleeping. The Minor Victim immediately called 911 and was eventually returned home to her parents.
* * *
WALLACE, 32, of the Bronx, New York, was convicted of kidnapping a minor, which carries a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison; coercion and enticement of a minor to engage in illegal sex, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; transportation of a minor across state lines to engage in illegal sex, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; possession of child pornography, which carries a maximum sentence of 10 years in prison; and production of child pornography, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. WALLACE is scheduled to be sentenced on April 23, 2026.
Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation’s Child Exploitation and Human Trafficking Task Force and the New York City Police Department. He also thanked the Broome County Sheriff’s Office for their assistance in this investigation.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Ariana L. Bloom, Remy Grosbard, Joseph H. Rosenberg, and Alexandra N. Rothman are in charge of the prosecution, with the assistance of Paralegal Specialists Samantha Roberts and Benjamin Coolman.
Brockton Woman Charged with Theft of Government Funds in Connection with Stolen $931,000 Tax Refund CheckRead the Press Release
BOSTON – A Brockton woman has been arrested and charged with stealing a nearly $1 million United States Treasury tax refund check.
Lana Ruel, 70, was charged with one count of theft of government funds. Ruel was arrested today and released on conditions following an initial appearance in federal court in Boston.
According to the charging documents, Ruel attempted to deposit a United States Treasury tax refund check issued to a healthcare company in Brooklyn. Prior to the attempted deposit, Ruel allegedly incorporated a company in Massachusetts in the same name as Company A and then opened a bank account in the name of the victim company. After the attempted deposit, the bank froze Ruel’s account. Ruel then allegedly called the bank and said that she could “explain what the check was, where it came from, and what it’s for…”
It is further alleged that, over the past two years, Ruel created four additional companies in Massachusetts that do not appear to have a legitimate business purpose. With respect to one of those companies, Ruel allegedly opened an account at each of approximately eight different banks. Ruel also allegedly received wire transfers in some of the accounts and then wired the funds to different accounts or made cash withdrawals. The banks have closed all these accounts.
The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Thomas Demeo, Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; and Nicholas Bucciarelli, Acting Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Assistant U.S. Attorney Benjamin Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Boston Man Indicted for Attempted Sex Trafficking of a Minor and Other Sex Trafficking CrimesRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury for allegedly sex trafficking three victims, including a minor, between New Hampshire and Massachusetts.
Orland Reyes, a/k/a “Snow,” 33, was charged with one count of attempted sex trafficking of a child; one count of transportation of a minor with intent to engage in prostitution; one count of coercion and enticement of a minor to engage in prostitution; two counts of transporting an individual with intent to engage in prostitution; and two counts of coercion and enticement of an individual to engage in prostitution. The defendant was arrested in Puerto Rico on Aug. 20, 2025. Reyes made his initial appearance in Massachusetts on Dec. 9, 2025 and was ordered detained pending a hearing scheduled for Dec. 18, 2025 in federal court in Worcester.
It is alleged that Reyes was the sole occupant in a vehicle that was stopped by law enforcement and that he had outstanding arrest warrants. A subsequent search of Reyes’ three cellphones allegedly revealed numerous communications detailing his sex trafficking operation.
According to the charging documents, beginning as early as June 2023, Reyes coerced and enticed women from New Hampshire to travel to Massachusetts to engage in prostitution at his direction. It is alleged that one victim was a 17-year-old minor at the time. It is further alleged that Reyes encouraged another victim to take Percocet to “help her feel better,” about engaging in prostitution at his direction and, eventually, the victim became drug dependent as a result. Reyes also allegedly transported an 18-year-old victim and her infant to his apartment in Boston and, when the victim refused to engage in prostitution at his direction, he kicked her and her infant out of his apartment.
The charges of attempted sex trafficking of a minor, transportation of a minor with intent to engage in prostitution and coercion and enticement of a minor to engage in prostitution each provide for a sentence of at least 10 years and up to life in prison, up to five years of supervised release and a fine of $250,000. The charge of transporting an individual with intent to engage in prostitution provides for a sentence of up to 10 years in prison, up to three years of supervised release and a $250,000 fine. The charge of coercion and enticement of an individual to engage in prostitution provides for a sentence of up to 20 years in prison, up to three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the Boston Police Department and the Puerto Rico Police Bureau. Assistant U.S. Attorneys Philip C. Cheng and Brian A. Fogerty of the Criminal Division are prosecuting the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Boston is comprised of agents and officers from HSI, FBI, DEA, ATF, USMS, IRS-CI, USPIS, DOL-OIG and DSS, as well as several state and local law enforcement agencies, with the prosecution being led by the United States Attorney’s Office for the District of Massachusetts.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Architect of Massive $420 Million Bank Fraud Scheme Sentenced to 3 Years in PrisonRead the Press Release
ST. PAUL – Matthew Thomas Onofrio, 34, of Plymouth, Minnesota, has been sentenced to 36 months in federal prison for bank fraud, announced U.S. Attorney Daniel N. Rosen. Over the course of two years, Onofrio devised and carried out a $420 million bank fraud scheme.
Between 2020 and 2022, Matthew Onofrio—a young nurse anesthetist and real estate investor—devised and carried out a massive bank fraud scheme. To carry out his fraud scheme, Onofrio created a real estate investment program whereby Onofrio would enter into purchase agreements for commercial properties and assign them to novice “investors” at highly inflated prices. Onofrio then coached his investors to lie to banks to obtain loans they could not afford based on false information.
Onofrio promoted his own financial success and real estate investment strategies in online professional networking groups and on a popular podcast geared towards aspiring real estate investors, called “Bigger Pockets.” Onofrio leveraged those platforms to create a reputation as something of a real estate savant, which attracted more investors.
Onofrio’s investors did not have the kind of money (typically, 30% of the purchase price) that was necessary to purchase the multi-million-dollar properties that Onofrio offered. To solve this problem, Onofrio counseled his investors defraud the banks.
Onofrio helped investors prepare fraudulent personal finance statements falsely indicating they had enough cash to cover the requisite down payment. When the lending banks inevitably requested proof of funds, Onofrio temporarily wired the money into his investors’ bank accounts, making it appear they actually had the money. If the banks asked about the source of the funds, Onofrio instructed his investors to tell the banks it came from other investments, or they had family money. Onofrio would also loan his investors money to cover the down payment but would not include the loans on the investors’ personal financial statements or record the promissory notes as a second mortgage on the property to keep it hidden from the banks.
Over the course of approximately two years, Onofrio completed 68 deals involving $420,564,795 in fraudulently obtained bank loans. Although many of Onofrio’s investors stopped paying on their promissory notes following Onofrio’s indictment in this case, Onofrio netted at least $35,745,252 from his fraudulent scheme before being caught.
U.S. District Judge Susan Richard Nelson sentenced Onofrio to 36 months in prison, followed by 2 years of supervised release, and ordered him to play $5,398,641 in restitution. In handing down her sentence, Judge Nelson identified Onofrio as the “ringleader and architect of a vast bank fraud.” Judge Nelson explained that she wanted to send a message to other would-be fraudsters that there is no such thing as a get-rich-quick-scheme—at least not a legal one.
This case is the result of an investigation conducted by the FBI, the IRS, and the Federal Deposit Insurance Corporation – Office of Inspector General.
Assistant U.S. Attorney Matthew C. Murphy prosecuted the case.
Anthony Man Sentenced for Drug Trafficking and Firearms OffensesRead the Press Release
ALBUQUERQUE – An Anthony man was sentenced to 235 months in prison for distributing methamphetamine and possessing firearms in furtherance of drug trafficking.
There is no parole in the federal system.
According to court records, in July and August 2024, David Amaya, 43, sold methamphetamine to a controlled buyer from a tow-behind trailer on his parents’ property in Anthony, New Mexico. The controlled buys prompted law enforcement to obtain and execute a search warrant on August 22, 2024.
Agents searched the trailer and an attached makeshift bathroom structure, recovering over 1.18 kilograms of methamphetamine. Additional methamphetamine was found in a clothing hamper and under the bed, along with two firearms and hundreds of rounds of ammunition.
Amaya pled guilty to possession with intent to distribute methamphetamine. Upon his release from prison, Amaya will be subject to five years of supervised release.
Acting U.S. Attorney Ryan Ellison and Justin A. Garris, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.
The Las Cruces Resident Agency of the Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistant from the Las Cruces Metro Narcotics Task Force. Assistant U.S. Attorney Kirk Williams prosecuted the case.
Ada Resident Pleads Guilty to Felony AssaultsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Isaiah Thomas Billey, age 23, of Ada, Oklahoma, entered a guilty plea to two counts of Assault Resulting in Serious Bodily Injury in Indian Country, each punishable by a term of up to ten years in prison and a $250,000 fine.
The Superseding Indictment alleged that on May 2, 2025, Billey assaulted one victim, resulting in serious bodily injury. The Indictment further alleged that on September 23, 2025, Billey assaulted a second victim, resulting in serious bodily injury.
The crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Pittsburg County Sheriff’s Department and the Federal Bureau of Investigation.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Billey will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Lewis M. Reagan represented the United States.
Ada Resident Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jaylon Parker Jackson Gore, age 25, of Ada, Oklahoma, entered a guilty plea to one count of Failure to Register as Sex Offender, punishable by a term of up to 10 years in prison and a $250,000 fine.
The Indictment alleged that Gore was convicted of Sexual Abuse of a Minor in Indian Country in the Eastern District of Oklahoma on July 11, 2024, and was required to register as a sex offender, and that from August 14, 2025, until September 6, 2025, Gore failed to update his registration despite residing in Indian country, within the Eastern District of Oklahoma.
The charge arose from an investigation by the U.S. Marshals Service and U.S. Probation.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report.
A U.S. District Court Judge will determine the sentence to be imposed after considering the U.S. Sentencing Guidelines and other statutory factors.
Gore will remain in the custody of the United States Marshals Service pending sentencing.
Assistant U.S. Attorney Jessie K. Pippin represented the United States.
18 Members of a Yuma-Based Alien Smuggling Ring Sentenced for Conspiring to Harbor and Transport Illegal AliensRead the Press Release
PHOENIX, Ariz. – On November 21, 2025, United States District Judge, Krissa M. Lanham, District of Arizona, sentenced the eighteenth and final defendant in a joint operation investigated by United States Border Patrol along with the United States Attorney’s Office in the District of Arizona.
United States Border Patrol became aware of an alien smuggling organization known as La Mesa after connecting transportation of illegal alien cases in the District of Arizona and the Central and Southern Districts of California. Prior to the arrest of the eighteen members in September 2024, La Mesa, who worked on behalf of the Mexico-based transnational criminal organization Los Rusos, operated out of Yuma and Somerton, Arizona.
Members of La Mesa were responsible for smuggling, or attempting to smuggle, hundreds of illegal aliens across the United States-Mexico border and further into the United States. Carlos Moreno-Serrano led the organization directing the team of managers who were responsible for coordinating smuggling events, procuring stash houses, distributing money, and enforcement. The managers oversaw the drivers transporting the illegal aliens, stash house staff, and scouting.
From 2022 through September of 2024, members of La Mesa used violence and threats of violence to control members of their organization, including kidnapping, robbing and extorting alien smugglers who had worked for their organization.
In January 2023, Saul Ponce Jr. (Ponce), Crystobal Figueroa (Figueroa), Angel Rodriguez (Rodriguez), Antonio Aparicio III (Aparicio), and Joshua Leon-Fuentes (Leon-Fuentes) kidnapped a man and took him into the desert. The kidnapping was filmed by Figueroa and the film shows Figueroa handing a firearm with an extended cylindrical magazine to Leon-Fuentes. Leon-Fuentes then points the firearm to the back of the man’s head while others tell him not to kill him because it is too close to the highway. Figueroa is then seen kicking the man in the back of the head.
During a separate kidnapping event in mid-2023, Leon-Fuentes, Aparicio, and Rodriguez drove to the house of a woman who had been caught alien smuggling by Border Patrol. They demanded the woman pay $20,000 for her failure to deliver the illegal aliens, though the woman could only provide the organization $10,000. Because she cost La Mesa money and had not fully repaid them for their losses, members of La Mesa were instructed to take her to Mexico to be punished. During the kidnapping, Leon-Fuentes put the barrel of a shot gun to her abdomen and told her if she tried anything it would not be pretty. Yuma Police Department arrived and thwarted the kidnapping. The woman informed Officers that Leon-Fuentes and the others told her once she was brought back to Mexico, she would be married off, tortured, or killed.
During the conspiracy, multiple defendants fled at a high rate of speed from law enforcement, and several illegal aliens sustained severe injuries while being transported. On several occasions, La Mesa also used juvenile drivers to transport illegal aliens. One juvenile driver, while fleeing Border Patrol, crashed a work van into a water canal with 24 illegal aliens inside, including a minor child and a pregnant woman.
“The facts of the criminal conduct here involving violence, kidnapping, firearms, and severe injury show why La Mesa or similar organizations engaging in harboring and transporting illegal aliens are so dangerous to our communities,” said U.S. Attorney Timothy Courchaine. “The excellent efforts of our Border Patrol, and other law enforcement partners, are keeping Americans safe every day and we thank them for their hard work leading to the exceptional results in this case.”
The defendants were charged via Indictment or Superseding Indictment in November 2023 and September 2024 with Conspiring to Harbor and/or Transport Illegal Aliens. Judge Krissa M. Lanham sentenced the defendants to the following sentences:
- Victor Eduardo Araiza-Ponce, 24, of Yuma was sentenced to Time Served; plus 3 years of supervised release
- Antonio Aparicio III, 24, of Somerton was sentenced to 68 months’ imprisonment
- Alonzo Esparza, 27, of Yuma was sentenced to 10 months’ imprisonment
- Carlos Moreno-Serrano, 24, of Yuma was sentenced to 90 months’ imprisonment
- Xasiel Noriega-Gonzalez, 21, of Somerton was sentenced to 78 months’ imprisonment
- Joshua Guillermo Leon-Fuentes, 21, of Somerton was sentenced to 60 months’ imprisonment
- Angel Rodriguez, 23, of Yuma was sentenced to 54 months’ imprisonment
- Crystobal Figueroa, 23, of Somerton was sentenced to 66 months’ imprisonment
- Saul Ponce Jr., 23, of San Luis was sentenced to 30 months’ imprisonment
- David Leon-Pallanes, 23, of Yuma was sentenced to 3 years of supervised release
- Manuel Uriel Alvarado, 26, of Yuma was sentenced to 24 months’ imprisonment
- Elian Lopez, 24, of Yuma was sentenced to 12 months’ probation
- Raymundo Delgado-Diaz, 35, of Yuma was sentenced to 3 years probation
- Isreal Zeveda, 23, of Salinas, California was sentenced to 12 months’ probation
- Francisco Javier Esparza-Macias, 21, of Somerton was sentenced to 12 months of supervised release
- Alex Chiquete, 25, of Yuma was sentenced to 24 months’ probation
- Hector Eduardo-Valdez, 31, of Yuma was sentenced to 18 months’ probation
- Jose Gabriel Marquez-Mendiola, 32, of Yuma was sentenced to 18 months’ probation
"The sentencing of the La Mesa smuggling organization members is a testament to the relentless pursuit of the rule of law and the cooperative efforts between the U.S. Border Patrol and the U.S. Attorney's Office. Bringing these smugglers to justice serves as a clear warning: the U.S. Government will hold individuals accountable for their criminal actions,” said Acting Chief Patrol Agent Dustin Caudle. “I am extremely proud of our agents and their dedication to our mission, which ensures the safety of our communities and our great Nation."
Customs and Border Protection’s United States Border Patrol–Yuma Field Intelligence, El Centro Border Patrol and Indio Border Patrol conducted the investigation. Assistant U.S. Attorneys Ross Arellano Edwards and Stuart J. Zander, U.S. Attorney’s Office, Phoenix, handled the prosecution.
CASE NUMBER: CR-23-01676-PHX-KML
RELEASE NUMBER: 2024-173_Araiza-Ponce et al.# # #
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.
10 December 2025
Wetzel County Man Sentenced for Sex Offender Registration ViolationRead the Press Release
WHEELING, WEST VIRGINIA – Nicholas Esteves Spencer, age 42, of Littleton, West Virginia, was sentenced today to 120 months in federal prison for failing to update his sex offender registration, announced U.S. Attorney Matthew L. Harvey.
According to court documents, Spencer has a lifetime sex offender registration requirement because of an indecent assault of a minor conviction in Massachusetts in 2005. Spencer was living in Wetzel County but didn’t register as a sex offender with the West Virginia State Police.
Spencer will serve five years of supervised release following his prison sentence.
Assistant U.S. Attorney Jennifer Conklin prosecuted the case on behalf of the government.
The United States Marshals Service, West Virginia State Police, the Wetzel County Sheriff’s Office, and the Granville Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Virtual Asset Trading Platform Pleads Guilty to Violating the Travel Act and Other Federal Criminal ChargesRead the Press Release
Paxful Holdings Inc., an online virtual currency trading platform, agreed to plead guilty yesterday to a three-count information filed in the Eastern District of California and agreed to pay a criminal penalty of $4 million based on its ability to pay.
“Paxful made millions of dollars in part by knowingly moving cryptocurrency for the benefit of fraudsters, extortionists, money launderers and purveyors of prostitution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant attracted its criminal clientele by promoting its lack of anti-money laundering controls and its deliberate decision not to identify its customers. This conviction shows that no matter the means, the Criminal Division will hold criminals accountable for knowingly engaging in illicit finance to further dangerous criminal activity.”
“Yesterday’s guilty plea by Paxful Holdings holds the company accountable for knowingly facilitating serious criminal conduct in the United States and elsewhere,” said U.S. Attorney Eric Grant for the Eastern District of California. “Through its calculated lack of controls, the company made itself available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution. This resolution sends a clear message: those who deliberately turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law. The Department of Justice remains committed to protecting victims and ensuring that the financial system, including the cryptocurrency ecosystem, is not exploited.”
“For years, Paxful disregarded its Bank Secrecy Act obligations and facilitated transactions associated with illicit activity and high-risk jurisdictions, such as Iran and North Korea,” said Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki. “FinCEN is committed to mitigating risks to the U.S. financial system while fostering responsible innovation in the virtual asset ecosystem.”
“Paxful Holdings, Inc. knowingly enabled its platform to serve as a conduit for criminal activity — including fraud and illegal prostitution,” said Special Agent in Charge Linda Nguyen of the IRS Criminal Investigation (IRS-CI) Oakland Field Office. “By willfully disregarding anti-money laundering laws and failing to report suspicious activity, Paxful profited in illicit trades while facilitating crimes with serious harm and consequences. IRS-CI remains steadfast in its mission to hold virtual currency platforms accountable when they are used to conceal and enable criminal conduct.”
According to court documents, Paxful Inc., and later, Paxful Holdings Inc. (collectively Paxful), owned and operated an online peer-to-peer virtual currency platform and money transmitting business (MTB) where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, prepaid cards and gift cards. Paxful knew that its customers transmitted funds from criminal offenses, including fraud schemes and illegal prostitution. From Jan. 1, 2017, to Sept. 2, 2019, Paxful facilitated more than 26.7 million trades, totaling nearly $3 billion in value, and collected more than $29.7 million in revenue.
Paxful knowingly transferred virtual currency on behalf of its customers, including Backpage, an online advertising platform for illicit prostitution and similar sites. In various criminal proceedings, Backpage and its owners and operators admitted that Backpage advertised and profited from illegal prostitution, including illegal sex work depicting minors. Paxful’s founders boasted about the “Backpage Effect,” which enabled Paxful’s business to grow. Between December 2015 and December 2022, Paxful’s collaboration with Backpage and a similar site caused nearly $17 million worth of bitcoin to be transferred from the Paxful wallet to Backpage and the copycat site from which Paxful obtained at least $2.7 million in profits.
As described in the plea agreement, from July 2015 to June 2019, Paxful and its founders marketed Paxful as a platform that did not require know-your-customer (KYC) information; allowed customers to open accounts and trade on the Paxful platform without gathering sufficient KYC information; presented to third parties fake anti money-laundering (AML) policies that they knew were not implemented or enforced; and failed to file suspicious activity reports, despite knowing that Paxful users were engaged in suspicious and criminal activity. As a result, Paxful knew it was used as a vehicle for prostitution, fraud, romance scams and extortion schemes.
Paxful agreed to plead guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce; conspiring to operate an unlicensed MTB by knowingly transmitting funds derived from criminal offenses or supporting unlawful activity, including illegal prostitution and fraud schemes; and conspiring to violate the Bank Secrecy Act’s (BSA) AML program requirement. As a result of its illegal conduct, the virtual currency platform was used to transfer the proceeds of fraud schemes, illegal prostitution, hacks by malign state actors and distribution of child sexual abuse material.
The Justice Department reached its resolution with Paxful based on several factors, including the nature and seriousness of the offenses, which involved Paxful’s processing of millions of dollars of illicit transactions. Paxful did not make a timely and voluntary disclosure of wrongdoing, but it received credit for its cooperation with the department’s investigation, including among other things, collecting, analyzing and producing voluminous information, providing timely updates on facts learned during its internal investigation and engaging in extensive and timely remedial measures. Accordingly, Paxful received a 25% reduction off the bottom of the applicable U.S. sentencing guidelines fine range. According to court documents, Paxful agreed that the appropriate criminal penalty based on the law and the facts in its case is $112,500,000. Based on the Justice Department’s independent analysis, it determined that Paxful did not have the ability to pay a criminal penalty greater than $4 million. The court will sentence Paxful on Feb.10, 2026.
On July 8, 2024, Paxful’s co-founder and former chief technology officer, Artur Schaback, pleaded guilty to conspiracy to fail to maintain an effective AML program in relation to the same scheme.
Paxful’s guilty plea is part of a coordinated resolution with FinCEN.
Immigrations and Customs Enforcement Homeland Security Investigations (ICE HSI) and IRS‑CI are investigating the case.
Bank Integrity Unit Deputy Chief Kevin Mosley and Trial Attorneys Emily Cohen, Caylee Campbell and Katherine Nielsen of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Virtual Asset Trading Platform Pleads Guilty to Violating the Travel Act and Other Federal Criminal ChargesRead the Press Release
Paxful Holdings Inc., an online virtual currency trading platform, agreed to plead guilty yesterday to a three-count information filed in the Eastern District of California and agreed to pay a criminal penalty of $4 million based on its ability to pay.
“Paxful made millions of dollars in part by knowingly moving cryptocurrency for the benefit of fraudsters, extortionists, money launderers and purveyors of prostitution,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant attracted its criminal clientele by promoting its lack of anti-money laundering controls and its deliberate decision not to identify its customers. This conviction shows that no matter the means, the Criminal Division will hold criminals accountable for knowingly engaging in illicit finance to further dangerous criminal activity.”
“Yesterday’s guilty plea by Paxful Holdings holds the company accountable for knowingly facilitating serious criminal conduct in the United States and elsewhere,” said U.S. Attorney Eric Grant for the Eastern District of California. “Through its calculated lack of controls, the company made itself available as a vehicle for money laundering, sanctions violations, and other criminal activity, including fraud, romance scams, extortion schemes, and prostitution. This resolution sends a clear message: those who deliberately turn a blind eye to criminal activity on their platforms will face serious consequences under U.S. law. The Department of Justice remains committed to protecting victims and ensuring that the financial system, including the cryptocurrency ecosystem, is not exploited.”
“For years, Paxful disregarded its Bank Secrecy Act obligations and facilitated transactions associated with illicit activity and high-risk jurisdictions, such as Iran and North Korea,” said Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki. “FinCEN is committed to mitigating risks to the U.S. financial system while fostering responsible innovation in the virtual asset ecosystem.”
“Paxful Holdings, Inc. knowingly enabled its platform to serve as a conduit for criminal activity — including fraud and illegal prostitution,” said Special Agent in Charge Linda Nguyen of the IRS Criminal Investigation (IRS-CI) Oakland Field Office. “By willfully disregarding anti-money laundering laws and failing to report suspicious activity, Paxful profited in illicit trades while facilitating crimes with serious harm and consequences. IRS-CI remains steadfast in its mission to hold virtual currency platforms accountable when they are used to conceal and enable criminal conduct.”
According to court documents, Paxful Inc., and later, Paxful Holdings Inc. (collectively Paxful), owned and operated an online peer-to-peer virtual currency platform and money transmitting business (MTB) where customers negotiated for and traded virtual currency for a variety of other items, including fiat currency, pre-paid cards and gift cards. Paxful knew that its customers transmitted funds from criminal offenses, including fraud schemes and illegal prostitution. From Jan. 1, 2017, to Sept. 2, 2019, Paxful facilitated more than 26.7 million trades, totaling nearly $3 billion in value, and collected more than $29.7 million in revenue.
Paxful knowingly transferred virtual currency on behalf of its customers, including Backpage, an online advertising platform for illicit prostitution and similar sites. In various criminal proceedings, Backpage and its owners and operators admitted that Backpage advertised and profited from illegal prostitution, including illegal sex work depicting minors. Paxful’s founders boasted about the “Backpage Effect,” which enabled Paxful’s business to grow. Between December 2015 and December 2022, Paxful’s collaboration with Backpage and a similar site caused nearly $17 million worth of bitcoin to be transferred from the Paxful wallet to Backpage and the copycat site from which Paxful obtained at least $2.7 million in profits.
As described in the plea agreement, from July 2015 to June 2019, Paxful and its founders marketed Paxful as a platform that did not require know-your-customer (KYC) information; allowed customers to open accounts and trade on the Paxful platform without gathering sufficient KYC information; presented to third parties fake anti money-laundering (AML) policies that they knew were not implemented or enforced; and failed to file suspicious activity reports, despite knowing that Paxful users were engaged in suspicious and criminal activity. As a result, Paxful knew it was used as a vehicle for prostitution, fraud, romance scams and extortion schemes.
Paxful agreed to plead guilty to conspiring to violate the Travel Act by promoting illegal prostitution through interstate commerce; conspiring to operate an unlicensed MTB by knowingly transmitting funds derived from criminal offenses or supporting unlawful activity, including illegal prostitution and fraud schemes; and conspiring to violate the Bank Secrecy Act’s (BSA) AML program requirement. As a result of its illegal conduct, the virtual currency platform was used to transfer the proceeds of fraud schemes, illegal prostitution, hacks by malign state actors and distribution of child sexual abuse material.
The Justice Department reached its resolution with Paxful based on several factors, including the nature and seriousness of the offenses, which involved Paxful’s processing of millions of dollars of illicit transactions. Paxful did not make a timely and voluntary disclosure of wrongdoing, but it received credit for its cooperation with the department’s investigation, including among other things, collecting, analyzing and producing voluminous information, providing timely updates on facts learned during its internal investigation and engaging in extensive and timely remedial measures. Accordingly, Paxful received a 25% reduction off the bottom of the applicable U.S. sentencing guidelines fine range. According to court documents, Paxful agreed that the appropriate criminal penalty based on the law and the facts in its case is $112,500,000. Based on the Justice Department’s independent analysis, it determined that Paxful did not have the ability to pay a criminal penalty greater than $4 million. The court will sentence Paxful on Feb.10, 2026.
On July 8, 2024, Paxful’s co-founder and former chief technology officer, Artur Schaback, pleaded guilty to conspiracy to fail to maintain an effective AML program in relation to the same scheme.
Paxful’s guilty plea is part of a coordinated resolution with FinCEN.
Immigrations and Customs Enforcement Homeland Security Investigations (ICE HSI) and IRS-CI are investigating the case.
Bank Integrity Unit Deputy Chief Kevin Mosley and Trial Attorneys Emily Cohen, Caylee Campbell and Katherine Nielsen of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Matthew Thuesen for the Eastern District of California are prosecuting the case.
The Money Laundering, Narcotics and Forfeiture Section’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.