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22 August 2025
Florida Man Sentenced to over Six Years for Witness Retaliation AssaultRead the Press Release
A Florida man was sentenced today to six years and 10 months in prison for assaulting an individual in retaliation for testimony that the victim provided during the assailant’s trial for his involvement in a home invasion robbery scheme.
“Instead of accepting responsibility for his criminal conduct that resulted in a 47-year sentence, St Felix physically attacked and berated a trial witness,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Witness retaliation threatens the very foundation of our justice system, which relies on truthful witness testimony. We will aggressively prosecute any attempt to retaliate against federal witnesses.”
“Retaliation against witnesses, no matter when or where it occurs, will not be tolerated. And individuals who assault government witnesses should expect prosecution and punishment,” said U.S. Attorney Clifton T. Barrett for the Middle District of North Carolina. “I commend the agents, attorneys, and USAO staff for their commitment and excellent work on cases stemming from this series of internationally organized home invasions.”
“St Felix tried to silence the very process that held him accountable,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “Retaliating against a witness strikes at the heart of the justice system. Those who think they can silence or intimidate witnesses will quickly learn the FBI will come after them.”
“St Felix led a ring of violent cryptocurrency thieves and when he was sentenced to 47 years, he physically attacked a trial witness, cowardly choosing to blame someone else for his crimes,” said Special Agent in Charge James C. Barnacle Jr. of the FBI Charlotte Field Office. “This additional prison time means he will likely be in his 70s before possibly walking free again. While we know his victims will never fully recover, we hope this sentence provides them some sense of justice.”
Remy Ra St Felix, 25, of West Palm Beach, pleaded guilty in the Middle District of North Carolina on May 6 to one count of retaliation against a witness for testimony in a criminal trial.
St Felix was charged in a nine-count superseding indictment for crimes stemming from a scheme to steal cryptocurrency during home invasion robberies. St Felix elected to go to trial and was found guilty on all counts. St Felix was subsequently sentenced to 47 years in prison. For this additional sentence, 36 months are to run concurrent to the current sentence and 46 months are to run consecutive to it. In addition to his sentence of incarceration, St Felix was sentenced to five years of supervised release.
According to court documents, the United States called a witness (“Witness-1”) at St Felix’s trial who testified about St Felix’s involvement in the home invasion robbery scheme.
On Oct. 8, 2024, after St Felix had been sentenced, Witness-1 was seated, restrained with leg shackles, a belly chain, and handcuffs, in the “booking area” of a Detention Center in Greensboro, North Carolina. St Felix was allowed out of a holding cell in the same area and assaulted Witness-1 with a series of punches, striking Witness-1 in the face, head, and body. While assaulting Witness-1, St Felix called Witness-1 a “rat” and told Witness-1 that he was responsible for St Felix’s 47-year sentence. That evening, St Felix called his mother and his girlfriend and gloated about assaulting Witness-1.
The Federal Bureau of Investigation investigated the case.
Trial Attorney Brian Mund of the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina prosecuted the case.
CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.
Farmington Woman Pleads Guilty to Dangerous Assault on MotorcyclistRead the Press Release
ALBUQUERQUE – A Farmington woman pleaded guilty on July 30, 2025, to federal charges for intentionally causing a motorcyclist to crash following an argument.
According to court records, on September 2, 2024, Tenille Quintawna Peshlakai, 33, an enrolled member of the Navajo Nation, argued with the victim at a gas station before driving away. Peshlakai then turned around, caught up to the victim, and swerved her vehicle to block his path. This forced the victim to lay down his motorcycle and crash into Peshlakai’s vehicle. Peshlakai fled the scene before law enforcement or medical personnel arrived.
Peshlakai pleaded guilty to one count of assault with a dangerous weapon. At sentencing, Peshlakai faces up to 10 years in prison. Upon her release from prison, Peshlakai will be subject to up to three years of supervised release.
Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations and the New Mexico State Police. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.
View the Plea Agreement (Peshlakai).pdfFederal Charges Filed Against Pensacola Man for Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Joshua Dean Hardy, 26, of Pensacola, Florida, has been indicted in federal court for two counts of unlawful possession of firearm under the National Firearms Act (NFA), namely two unregistered and unserialized silencers and a destructive device, and one count of possession of a firearm with an obliterated serial number. John P. Heekin, United States Attorney for the Northern District of Florida announced the charges.
Hardy is scheduled for arraignment before United States Magistrate Judge Hope T. Cannon at the United States Courthouse in Pensacola, Florida, on August 28, 2025 at 11:00 a.m.
If convicted as charged, Hardy faces up to 10 years’ imprisonment as it relates to each of the NFA violations, and another five years for his possession of a firearm with an obliterated serial number.
The case is being jointly investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Escambia County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jennifer H. Callahan.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) 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 Neighborhood (PSN).
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.
Elk Grove Man Charged with Covid Relief FraudRead the Press Release
A federal grand jury returned an indictment, unsealed Thursday, charging Oleg Gregorvich Fursov, 52, of Elk Grove, with wire fraud, U.S. Attorney Eric Grant announced.
According to court documents, Fursov fraudulently obtained more than $1 million as part of the Economic Injury Disaster Loan Program to purportedly assist his business in recovering from the COVID-19 pandemic. Instead, Fursov used the funds for his own personal use.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica Delaney is prosecuting the case.
If convicted, Fursov faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Dominican Republic Man Pleads Guilty for Role in a Fentanyl and Cocaine Trafficking ConspiracyRead the Press Release
CONCORD – A Dominican man pleaded guilty yesterday in federal court in connection with a drug trafficking organization distributing large quantities of fentanyl and cocaine, United States Attorney Erin Creegan announces.
Raynerson Marcos De La Paz Matos, 29, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl and cocaine. U.S. District Court Judge Landya McCafferty scheduled sentencing for December 2, 2025.
According to court documents, law enforcement purchased fentanyl, cocaine, and crack cocaine from the drug trafficking organization in Manchester on 10 occasions. These purchases resulted in the total seizure of more than 350 grams of fentanyl, more than 40 grams of cocaine, and more than 25 grams of crack cocaine. On September 11, 2024, law enforcement searched two residences on Cilley Road and Dubuque Street in Manchester. The search of the Cilley Road residence yielded a total of more than 1,600 grams of fentanyl, more than 480 grams of cocaine, and drug proceeds totaling $4,675. The search of the Dubuque Street residence yielded drug proceeds totaling $54,370 and assorted jewelry with an estimated value of $161,675.
The charging statute provides a sentence of not less than 10 years and up to life in prison, at least five (5) years of supervised release, and a maximum fine of $10,000,000. 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.
The Drug Enforcement Administration and the Manchester Police Department led the investigation. Assistant U.S. Attorney Cesar A. Vega is prosecuting the case.
This effort 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 Neighborhood (PSN).
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District of Arizona Charges 170 Individuals for Immigration-Related Criminal Conduct this WeekRead the Press Release
PHOENIX, Ariz. – During the week of enforcement operations from August 16, 2025, through August 22, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 170 individuals. Specifically, the United States filed 85 cases in which aliens illegally re-entered the United States, and the United States also charged 70 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 11 cases against 15 individuals responsible for smuggling illegal aliens into and within the District of Arizona.
These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Recent matters of interest include:
United States v. Gonzalo Rafael Morales-Jimenez: On August 18, 2025, Gonzalo Rafael Morales-Jimenez, was charged by criminal complaint with Re-entry of a Removed Alien. Morales-Jimenez had been previously removed from the United States in 2018 after being convicted of Kidnapping, Armed Robbery, and Theft by Extortion, Aggravated Assault, and Misconduct Involving Weapons, all felony offenses, in the Superior Court of Arizona, Maricopa County. The Court ordered all terms of incarceration for the various counts to run concurrently with one another, with the longest sentence being over 10 years in prison. [Case Number: 25-MJ-09342]
United States v. Alan William Fischbach: On August 19, 2025, Alan William Fischbach and two Mexican nationals, Rosario Robles-Morales and Jose Antonio Florez-Ramirez, were charged by criminal complaint with Conspiracy to Transport and Harbor Illegal Aliens. On August 19, Fischbach was observed picking up two loads of illegal aliens and taking them to a motel in Tucson. Robles-Morales and Florez-Ramirez had served as foot guides for the illegal aliens, leading them across the international border into the United States. In total, 10 smuggled illegal aliens were discovered. [Case Number: 25-MJ-09352]
United States v. Pedro Carrillo-Miranda: On August 19, 2025, Pedro Carrillo-Miranda was charged by criminal complaint with Re-entry of a Removed Alien. Carrillo-Miranda had been previously removed from the United States in 2002 after being convicted of Attempted Sexual Abuse, a felony offense, in the Superior Court of Arizona, Maricopa County. In that case, Carrillo-Miranda was sentenced to three months in prison, followed by lifetime probation. [Case Number: 25-MJ-09357]
United States v. Cesar Eduardo Parra-Ray: On August 20, 2025, a Department of Public Safety (DPS) Sergeant performed a traffic stop on Cesar Eduardo Parra-Rey, who was identified by his Mexico driver's license. After speaking with Parra-Rey, DPS suspected that he was engaged in a human smuggling event and contacted U.S. Border Patrol for assistance. When they arrived, Border Patrol Agents determined that Parra-Rey is a citizen of Mexico with a Border Crossing Card that allows him to enter and pass through the United States legally. However, agents also determined that Parra-Rey’s three passengers were all citizens of Mexico, illegally present in the United States. Parra-Rey was charged by criminal complaint with Transportation of an Illegal Alien. [Case Number: 25-MJ-09372]
United States v. Bryan Valenzuela-Caldera: On August 22, 2025, Bryan Valenzuela-Caldera was charged by criminal complaint with Transportation of an Illegal Alien for Profit. Valenzuela-Caldera was observed in Nogales, Arizona on multiple days, driving in unusual patterns close to the border. On August 20, Border Patrol Agents initiated a vehicle stop based on their observations, but Valenzuela-Caldera failed to yield, taking several turns and driving through Nogales, Arizona. As he drove, Valenzuela-Caldera struck a civilian vehicle, and then attempted to push the vehicle out of the way by pressing the accelerator of his truck. He then reversed and drove away, ending up on a dead-end road. As agents followed him, Valenzuela-Caldera reversed into one of their Border Patrol vehicles, then got out of his truck and fled on foot. He was eventually apprehended, and two illegal aliens were found inside his truck. [Case Number: 25-MJ-09414]
These cases are 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 Neighborhood (PSN).
A criminal complaint is a formal accusation of criminal conduct. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
RELEASE NUMBER: 2025-139_August 22 Immigration Enforcement
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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 X @USAO_AZ for the latest news.Convicted Sex Offender Pleads Guilty to New Charges of Sexually Exploiting Children on Long IslandRead the Press Release
Earlier today, in federal courthouse in Central Islip, Anthony Pangallo, a previously convicted sex offender, pleaded guilty to sexual exploitation of a child and, during the plea hearing, admitted to soliciting and receiving sexually explicit images and videos from four young female victims. The proceeding was held before United States District Judge Joanna Seybert. When sentenced, Pangallo faces a mandatory minimum sentence of 25 years’ imprisonment and up to 50 years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office, announced the guilty plea.
“Our Office will continue its relentless pursuit of sexual predators who target minors, and work to secure lengthy prison sentences to protect the public and vulnerable children from these depraved individuals,” stated U.S. Attorney Nocella. “This defendant’s conduct was especially abhorrent because, despite being a registered sex offender following a prior state conviction, he continued to target multiple young victims.”
Mr. Nocella expressed his appreciation to the New York City Police Department, the Westport Police Department and the Connecticut State’s Attorney’s Office, Stamford/Norwalk Judicial District.
“Anthony Pangallo pretended to be a teenager to gain the trust of prepubescent girls before sexually grooming and forcing elicit explicit content from them. As a registered sex offender, Pangallo has continued to repeatedly exploit and abuse minors to fulfill his own perverted desires,” stated FBI Assistant Director in Charge Raia. “The FBI maintains its steadfast commitment to protect our community’s vulnerable populations from sexual predators.”
As set forth in court filings and statements during today’s plea proceeding, Pangallo was initially arrested on May 20, 2021, at his residence in Rego Park, New York, on state charges filed in Westport, Connecticut. The Connecticut charges, which remain pending, involved a 15-year-old female victim, who Pangallo met online and manipulated into sending him sexually explicit images of herself. Subsequent investigation, which included a lawful search of Pangallo’s cellphone, revealed numerous online communications with other minor females from whom the defendant solicited sexually explicit images. Specifically, four children from Long Island—a 12-year-old and three 13-year-olds—were identified as victims, leading to the federal charges in this case. During his communications with these minors, Pangallo pretended to be a teenager, manipulated the victims into believing that they were in a relationship together, and then pressured them into sending him sexually explicit images and videos of themselves. At the time that he committed these crimes, Pangallo was registered as a sex offender due to a prior conviction in August 2009 for sexual assault of a minor in Atlantic City, New Jersey.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Paul G. Scotti is in charge of the prosecution.
The Defendant:
ANTHONY PANGALLO
Age: 41
Rego Park, QueensE.D.N.Y. Docket No. 23-CR-233 (S-1)(JS)
City Man Charged with Carjacking a Couple at Gunpoint in West PhiladelphiaRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Xavier Peterson, 19, of Philadelphia, Pennsylvania, was arrested and charged by indictment with one count of carjacking and one count of brandishing a firearm during a crime of violence, arising from an armed carjacking earlier this year.
Peterson was ordered detained in federal custody at a detention hearing this afternoon.
The indictment alleges that, on April 4, 2025, the defendant carjacked a couple at gunpoint, forcing them out of their vehicle, which he then stole.
As detailed in court filings, on the night of April 4, Victim 1 parked his Subaru Crosstrek in West Philadelphia, to drop off his girlfriend, Victim 2. A masked male approached the couple, pointed a handgun at them, and forced them out of the car. The carjacker then drove away from the scene.
Approximately 40 minutes after the carjacking, Victim 2 received a notification that her credit card, which had been in the Crosstrek, was used in Upper Darby, Pa. Law enforcement in Delaware County began searching for the carjacked vehicle.
About an hour after the carjacking, a Haverford police officer saw the stolen car speeding on West Chester Pike towards the Blue Route. When the officer proceeded to pull the vehicle over on Interstate 476, court filings allege, the defendant fled from the driver’s seat on foot, while the vehicle’s three passengers remained in the car. About five minutes after Peterson fled, officers found him hiding in the underbrush next to the highway, and subsequently located a loaded semiautomatic handgun lying nearby.
If convicted, the defendant faces a mandatory minimum sentence of seven years in prison and a maximum possible sentence of life imprisonment.
The case was investigated by the Philadelphia Police Department, the Haverford Township Police Department, the Radnor Township Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorney Michael Miller.
The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.
Chinese National Sentenced to Prison for Deploying Destructive Computer Code on Ohio-based Company’s Global NetworkRead the Press Release
CLEVELAND - A Chinese national who inflicted severe damage to the computer network systems of a global corporation where he was formerly employed has been sentenced to prison.
Davis Lu, 55, a citizen of China residing in Houston and authorized to legally work in the U.S., was sentenced to 48 months (four years) in prison by U.S. District Judge Pamela A. Barker Aug. 21. A federal jury convicted Lu in March of intentionally damaging protected computers for his role in creating destructive computer code that he deployed on his former employer’s network. He was also ordered to serve three years of supervised release after imprisonment. Restitution is to be determined at a later date.
“The defendant breached his employer’s trust by using his access and technical knowledge to sabotage company networks, wreaking havoc and causing hundreds of thousands of dollars in losses for a U.S. company,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “However, the defendant’s technical savvy and subterfuge did not save him from the consequences of his actions. The Criminal Division is committed to identifying and prosecuting those who attack U.S. companies, whether from within or without, to hold them responsible for their actions.”
“The extreme chaos caused by just one person who used his creative mind and technical talents to thwart his employer’s business operations was not only disruptive – it was criminal. Those who weaponize their knowledge to inflict damage will be held accountable,” said U.S. Attorney David M. Toepfer for the Northern District of Ohio. “We would like to acknowledge and thank the FBI Cleveland Division for their incredible expertise in investigating computer crimes to bring criminals like Mr. Lu to justice.”
According to court documents and evidence presented at trial, Lu was employed as a software developer for the victim company headquartered in Beachwood, Ohio, from November 2007 to October 2019. In 2018, Lu began to sabotage his employer’s systems after a corporate realignment reduced his responsibilities and system access. By Aug. 4, 2019, he introduced malicious code that caused system crashes and prevented user logins. Specifically, he created what are known as “infinite loops,” that resulted in server crashes or hangs, making it unavailable to users. Lu also created code to delete coworker profiles, and implemented a “kill switch” that would lock out all users if his name was removed from the company’s directory.
On Sept. 9, 2019, the kill switch was triggered when Lu was terminated from the company and his computer credentials were disabled. With the “kill switch” activated, thousands of company users were impacted globally. Lu named his kill switch code “IsDLEnabledinAD”, which was an abbreviation for “Is Davis Lu enabled in Active Directory.”
Investigators learned that the defendant named another malware program “Hakai,” a Japanese word meaning “destruction,” and “HunShui,” a Chinese word meaning “sleep” or “lethargy.” Additionally, on the day he was directed to turn in his company laptop, Lu deleted encrypted data and ran a command that made the data unrecoverable by forensic software. His internet search history revealed he had researched methods to escalate privileges, hide processes, and rapidly delete files, indicating an intent to obstruct efforts of his co-workers to resolve the system disruptions. Lu’s employer suffered hundreds of thousands of dollars in losses as a result of his actions.
"The FBI works relentlessly every day to ensure that cyber actors who deploy malicious code and harm American businesses face the consequences of their actions,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “I am proud of the FBI cyber team’s work which led to this sentencing and hope it sends a strong message to others who may consider engaging in similar unlawful activities. This case also underscores the importance of identifying insider threats early and highlights the need for proactive engagement with your local FBI field office to mitigate risks and prevent further harm.”
The investigation leading to the indictment was conducted by the FBI Cleveland Division.
“Davis Lu was intent on inflicting widescale damage to his employer with reckless disregard,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “The FBI is committed to protecting businesses from cyber intrusions and crippling threats to their companies, not only from unknown attackers, but also when the criminal is a once-trusted employee whose skill and intellect was used for malicious purposes. We will continue to defend the homeland and its American businesses to identify and investigate cyber criminals who seek to harm companies, and we will bring them to justice.”
Senior Counsel Candina S. Heath of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), and Assistant United States Attorneys Daniel J. Riedl and Brian S. Deckert for the Northern District of Ohio, prosecuted the case.
The Department of Justice’s CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds.
Chinese National Sentenced to 24 months in prison for Scam Targeting Elderly AmericansRead the Press Release
SAN DIEGO – Jiaci Liu, a Chinese national, was sentenced in federal court today to 24 months in prison for engaging in a multinational fraud conspiracy targeting seniors, including a 63-year-old man from Poway who exposed the scam by reporting his suspicions to authorities.
Today’s sentence is in addition to three months Liu already served in state custody before his case was charged federally. Liu was originally arrested in February 2024 and charged by the San Diego District Attorney’s Office. He was transferred to federal custody in May 2024, when he was charged by federal criminal complaint for his role in the conspiracy. Crimes are sometimes transferred from state to federal prosecutors because federal law allows for the prosecution of offenses that involve victims beyond the state’s jurisdiction.
According to publicly filed documents, the San Diego Elder Justice Task Force (ETJF) learned of the fraud scheme after the victim reported to the San Diego County Sheriff’s Department that he had been duped as part of a complex scam in which conspirators posed as technical support specialists, bank representatives and government officials.
Specifically, while the Poway victim was on his personal computer, a pop-up window appeared indicating there was a possible virus on his computer and instructing him to contact a phone number. When he contacted the number, he was transferred through a series of co-conspirators pretending to work in tech support. The victim was informed that his computer had viruses and was transferred to another conspirator who claimed to be from the victim’s bank. During that interaction, the victim was told there were unauthorized transfers from his bank and was instructed to immediately withdraw all his money for safekeeping.
The victim went to his bank and withdrew $28,000. The victim was then told by the conspirators that someone from the U.S. Marshals Service would come to his house to pick up the money. After the interaction, the victim became suspicious and contacted the San Diego County Sheriff’s Department, which informed the victim to contact them if anyone showed up to pick up the money.
Defendant Jiaci Liu arrived at the victim’s residence attempting to take the victim’s money. The victim called police, who arrived and found Liu outside the victim’s home. After Liu was arrested, his cellphone was seized and searched. Investigators located evidence that in just one week of the conspiracy, in June 2023, Liu had traveled throughout Southern California and Arizona and personally taken over $202,000 directly from elderly victims. The victims were from mid- to late-70s, but with one victim 83-years-old.
As the government argued in its sentencing papers, each of the victims had worked a lifetime to save money for a dignified retirement. But because of Liu and his co-conspirators, they lost substantial sums of money, including at least one victim who had suffered significant financial hardship.
In imposing Liu’s sentence, U.S. District Judge Jinsook Ohta found that the scheme involved “sophisticated means” and caused substantial financial hardship to the elderly victims. Judge Ohta also highlighted that the in-person pickups from elderly victims was particularly concerning because it had the potential for physical injury or an altercation between the defendant and the elderly victims.
“Scamming the elderly is a reprehensible crime that robs individuals of their hard-earned savings and the dignity they deserve in their golden years,” said U.S. Attorney Adam Gordon. “There’s a cruelty in being willing to con your way to a victim’s door, look your victim in the eye, and physically take their life savings from them. This office will not tolerate deceitful and cruel criminals exploiting seniors.”
“Thanks to the courage of one potential victim alerting law enforcement, today’s sentencing ensures that Liu will be held accountable for his actions in a multinational tech support scam,” said Special Agent in Charge Mark Dargis of the FBI’s San Diego Field Office. “This case demonstrates the effectiveness of the San Diego Elder Justice Task Force through its collaborative partnerships in protecting our most vulnerable communities. The FBI is proud to play a role in that mission.”
This case was investigated by the San Diego Elder Justice Task Force and its member agencies, including the U.S. Attorney’s Office, Federal Bureau of Investigation, San Diego County District Attorney’s Office, Carlsbad Police Department, San Diego Police Department, and the California Highway Patrol.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.
This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.
DEFENDANT Case Number 24cr1238-JO
Jiaci Liu Age: 35 China
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2)(A), and Title 28, U.S.C., Section 2461(c)
Maximum Penalties: Thirty years in prison; $1 million fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
San Diego County Sheriff’s DepartmentSan Diego Police Department
San Diego Elder Justice Task Force
Cedar Rapids Felon Who Ran from Police and Tossed Gun Pleads Guilty in Federal CourtRead the Press Release
A man who possessed a firearm as a felon pled guilty today in federal court in Cedar Rapids. Bruce Jovon Williams, age 34, from Cedar Rapids, Iowa, was convicted of one count of possession of a firearm by a felon.
Evidence at a prior hearing showed that, on August 28, 2024, in Cedar Rapids, a woman reported to law enforcement that Williams had physically assaulted her and hit her with a gun. Law enforcement officers found and approached Williams. When Williams saw the officers, Williams ran into a nearby backyard and hid in a small garage. He refused to leave the garage and was apprehended by a K9. In the backyard, near the small garage, law enforcement officers found a firearm. Williams has two felony convictions for theft in the second degree.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared. Williams remains in custody of the United States Marshal pending sentencing. Williams faces a possible maximum sentence of 15 years’ imprisonment without the possibility of parole, a $250,000 fine, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the FBI Safe Streets Task Force, comprised of representatives from the Federal Bureau of Investigation, the Cedar Rapids Police Department, and the Marion Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 24-CR-108.
Follow us on X @USAO_NDIA.
California Man Pleads Guilty for Role in $15.9M COVID-19 Fraud SchemeRead the Press Release
A California man pleaded guilty yesterday for his role in a scheme to defraud the Small Business Administration (SBA) out of $15.9 million in loans through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) programs.
“The defendant orchestrated a scheme where he worked with purported business owners to submit dozens of loan applications to steal millions of dollars of Covid-19 relief funds,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendant’s egregious scheme relied on layers of deception to steal taxpayer money to buy himself luxury vehicles, residential properties, and jewelry. The Criminal Division remains dedicated to holding fraudsters who steal from the public fisc to account for their greed.”
“The defendant in this case fraudulently obtained $15.9 million from federal funding programs intended to provide government relief to businesses during the COVID-19 pandemic and instead diverted vital relief funds for his own personal benefit,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “IRS-CI is proud to partner with our federal law enforcement organizations to investigate and ensure relief funds are spent in accordance with their original intended purposes."
“Exploiting pandemic relief meant for struggling Americans is not only morally reprehensible, it’s a betrayal of public trust,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “This defendant orchestrated a multimillion-dollar fraud scheme, weaponizing federal COVID-19 assistance programs for his personal gain. The FBI will always work to make sure those who steal from programs designed to help others are held accountable.”
“The defendant in this case submitted dozens of fraudulent loan applications to obtain millions of dollars from government programs designed to assist struggling businesses during the pandemic,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “Today's guilty plea brings him to justice. The FDIC OIG remains committed to working with our law enforcement partners to hold accountable those who stole from COVID-19 relief programs in order to enrich themselves, and threatened the stability of our Nation's financial system.”
“Providing false information to gain access to SBA programs intended for disaster victims is unacceptable,” said Acting Special Agent in Charge Jonathan Huang of the Small Business Association Office of Inspector General’s (SBA-OIG) Western Region. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice, and our law enforcement partners for their dedication and commitment to seeing justice served.”
According to court documents, from April 2020 to April 2022, Emanuel Tucker, 45, of Canyon Lake, California, and other co-conspirators, submitted several dozen fraudulent PPP and EIDL loan applications on behalf of various companies that he owned and controlled. These applications contained material misrepresentations about the companies, including the number of employees, average monthly payroll, gross revenue, cost of goods, and supporting documents. The defendant used the fraudulently obtained funds to purchase a variety of luxury items, such as a Cadillac Escalade, a Bently Continental, and a Ferrari F8 Tributo, multiple million-dollar houses, and various jewelry, including a $63,000 diamond ring and a $400,000 diamond necklace.
Tucker pleaded guilty to conspiracy to commit wire fraud and bank fraud. Tucker faces a maximum penalty of 20 years in prison, and sentencing is scheduled for Dec. 4. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The IRS-CI, FBI, SBA-OIG, FDIC OIG, Federal Reserve Board Consumer Financial Protection Bureau Office of Inspector General, Treasury Inspector General for Tax Administration, and Department of Energy Office of Inspector General are investigating the case.
Trial Attorneys Siji Moore and Kashan Pathan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud.
Battle Creek Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
Guilty Plea Entered on National Fentanyl Prevention and Awareness Day
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Timothy VerHey announced that Nazzarie Carmouche-Heath, 29, of Battle Creek, pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl. Carmouche-Heath is scheduled to be sentenced on December 4, 2025, and faces a mandatory minimum of 10 years in prison and a maximum of life in prison.
“I hope everyone knows by now how deadly fentanyl is. Our office will continue to aggressively investigate and prosecute the drug dealers who sell it. We especially look for cases like this, where the fentanyl was disguised as legitimate medication, a situation that can lead to accidental overdoses by the unsuspecting.” said U.S. Attorney Timothy VerHey.
In pleading guilty, Carmouche-Heath admitted that in March 2025, at his residence in Battle Creek, he possessed and intended to sell 4,714 blue pills, which were designed to look like the opioid analgesic Oxycodone (M/30), but in fact contained fentanyl, weighing over 470 grams. Carmouche-Heathe also possessed and intended to sell over 600 grams of fentanyl in powder form. He also possessed two firearms found near the fentanyl stash. According to court documents, Carmouche-Heath pled guilty to possession with intent to distribute 400 grams or more of fentanyl.
“Our country continues to be plagued by fentanyl poisonings caused by these counterfeit pills. This defendant entered his guilty plea on August 21, which is National Fentanyl Prevention and Awareness Day. Our communities can rejoice in taking another piece of this deadly drug trade off the streets, which will prevent future potential overdoses and tragedy. DEA’s strategic partnerships with the Battle Creek Police Department (BCPD) and other law enforcement agencies are instrumental in stopping this nationwide threat,” said Drug Enforcement Administration (DEA) Assistant Special Agent in Charge Derek Ress.
DEA and BCPD are investigating this case, and Assistant U.S. Attorney Dan McGraw is prosecuting it.
This case is part of Operation Take Back America, a nationwide initiate 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).
August Federal Grand Jury 2024-B Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the August Federal Grand Jury 2024-B Indictments.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Wilmer Ulvin Aguilar-Miranda. Unlawful Reentry of a Removed Alien. Aguilar-Miranda, 30, a Guatemalan national, is charged with unlawfully reentering the United States after having been previously removed in Mar. 2013. ICE Enforcement and Removal Operations Dallas Field Office is the investigative agency. Assistant U.S. Attorney Tara Heign is prosecuting the case. 25-CR-308
Christopher Ray Barrett; Jessica Marie Johnson; Katelyn Mary LeBlanc. Carjacking; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Felon in Possession of a Firearm and Ammunition; Conspiracy to Tamper with a Witnesses, Victims, and Informants (second superseding). Barrett, 40, Johnson, 37, both of Tulsa, and LeBlanc, 27, a transient, are charged with taking a vehicle by force. They further conspired to intimidate and persuade witnesses and victims not to cooperate with the investigation. Barrett is charged with brandishing a firearm during a crime of violence and for possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Mike Flesher and Jessica Wright are prosecuting the case. 25-CR-024
Joshua Lee Cornog. Possession of Methamphetamine with Intent to Distribute. Cornog, 43, of Commerce, is charged with intentionally possessing with the intent to distribute over 500 grams of methamphetamine. The Drug Enforcement Administration Tulsa Resident Office, the Bureau of Indian Affairs, and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Niko Boulieris is prosecuting the case. 25-CR-314
Jerry Charles Creek, Jr. Assault of an Intimate/Dating Partner by Strangling and Suffocating in Indian Country (Counts 1 & 3); Assault Resulting in Serious Bodily Injury in Indian Country (Counts 2 & 7); Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Count 4); Aggravated Sexual Abuse by Force and Threat in Indian Country (Counts 5 & 9); Assault with Intent to Commit Murder in Indian Country (Count 6); Kidnapping in Indian Country (Count 8) (superseding). Creek, 53, of Collinsville, is charged with strangling and assaulting an intimate partner, which resulted in serious bodily injury. He is charged with using a dangerous weapon with intent to do bodily harm in Nov. 2023 and Apr. 2024. Plus, sexually assaulting the victim by force and threat in Nov. 2023 and Mar. 2024. Additionally, it is alleged that Creek assaulted the victim with intent to commit murder and held her against her will. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 24-CR-259*
Cameron David Joshua Cox. Receipt and Distribution of Child Pornography. Cox, 36, of Tulsa, is charged with knowingly receiving, possessing, and distributing visual images and videos depicting the sexual abuse of children. The FBI and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case. 25-CR-307
Henry Joseph Jaquez. Felon in Possession of Firearms and Ammunition (Count 1); Kidnapping in Indian Country (Count 2); Assault of an Intimate/Dating Partner by Strangling in Indian Country (Count 3); Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Counts 4 & 6); Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence (Count 5); Abusive Sexual Contact by Force and Threat in Indian Country (Count 7). Jaquez, 42, of Tulsa, is charged with possessing several firearms and ammunition, knowing he was previously convicted of felonies. In Aug. 2025, Jaquez allegedly kidnapped, strangled, and assaulted the victim with a taser and a firearm. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney John W. Dowdell is prosecuting the case. 25-CR-296
Marcus Antonio Jones. Felon in Possession of a Firearm and Ammunition. Jones, 46, of Tulsa, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Mallory Richard is prosecuting the case. 25-CR-313
John David Landrum. Felon in Possession of a Firearm and Ammunition. Landrum, 45, of Quapaw, is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wyandotte Nation Police Department are the investigative agencies. Assistant U.S. Attorney Augustus Forster is prosecuting the case. 25-CR-306
Antonio Juan Paredes. Failure to Register as a Sex Offender. Paredes, 35, of Tulsa, is an individual who is knowingly required to register as a sex offender. He is charged with failing to register as a sex offender from March to July 2025. The U.S. Marshal Service is the investigative agency. Assistant U.S. Attorney Charles Greenough is prosecuting the case. 25-CR-305
Issac Eli Pigeon. First Degree Burglary in Indian Country; Kidnapping in Indian Country. Pigeon, 23, of Tulsa and a member of the Muscogee (Creek) Nation, is charged with breaking into an occupied home with the intent of committing a crime. He is further charged with kidnapping the victim and keeping them from leaving. The FBI, the U.S. Marshal Service, and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Thomas Buscemi is prosecuting the case. 25-CR-312
Sidney Peter Rivas; Marcus Allen Bearpaw; Michael Anthony Collum; Lindsey Stark Cornell; William Boyd Jones; Jennifer Suzanne Swanson; Juan Carlos Perez-Hernandez. Continuing Criminal Enterprise (Count 1); Drug Conspiracy (Counts 2 through 4); Money Laundering Conspiracy (Count 5); Concealment Money Laundering (Count 6); International Concealment Money Laundering (Counts 7 through 9). Rivas, 46, incarcerated, is charged with organizing, leading, and profiting from the distribution of methamphetamine while in prison. Rivas, Bearpaw, 30, incarcerated, Collum, 41, of Noble, Cornell, 45, of Grove, Jones, 39, and Swanson, 48, of Lindsay, and Perez-Hernandez, 43, is incarcaerate and an El Salvador national, are charged with conspiring to distribute methamphetamine, fentanyl, and or heroin. Additionally, Rivas, Cornell, Jones, and Swanson are charged with conspiring with others to obtain physical and digital currency from the drug distribution and transferring it to other locations in the United States and Mexico. Rivas and Cornell are charged with concealing or disguising funds received from the unlawful activity. Lastly, Rivas, Cornell, and Swanson are charged with concealing or disguising funds from the unlawful activity and transferring them to Mexico. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the IRS, and the Drug Enforcement Administration are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 25-CR-295
Alejandro Aguilar Rodriguez. Unlawful Reentry of a Removed Alien. Aguilar Rodriguez, 30, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in Jan. 2025. ICE Enforcement and Removal Operations Dallas Field Office is the investigative agency. Assistant U.S. Attorney Augustus Forster is prosecuting the case.
25-CR-303Jimmy Ray Spencer. Possession of Methamphetamine with Intent to Distribute. Spencer, 67, of Sapulpa, is charged with possessing with intent to distribute more than 500 grams of methamphetamine. The Drug Enforcement Administration Tulsa Resident Office and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney David Nasar is prosecuting the case. 25-CR-294
Jesus Vargas-Gutierrez. Unlawful Reentry of a Removed Alien. Vargas-Gutierrez, 40, a Mexican national, is charged with unlawfully reentering the United States after having been previously removed in Jan. 2019. ICE Enforcement and Removal Operations Dallas Field Office is the investigative agency. Assistant U.S. Attorney Attila Bogdan is prosecuting the case.
25-CR-304Gualberto Vega. Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Felon in Possession of a Firearm and Ammunition. Vega, 31, of Tulsa, is charged with knowingly possessing methamphetamine with intent to distribute. Further, Vega is charged with possessing a firearm and ammunition after being convicted of a felony and in furtherance of drug trafficking. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stephen Scaife is prosecuting the case.
25-CR-302Raphiel Andrew Williams. Cyberstalking (Counts 1 & 2). Williams, 26, of Tulsa, is charged with causing reasonable fear or substantial emotional distress by using an electronic communication service with intent to kill, injure, harass, and intimidate two victims. The Tulsa Police Department is the investigative agency. Assistant U.S. Attorneys Ashley Robert and Steve Briden are prosecuting the case. 25-CR-301
Ismael Moreno Zuniga. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition. Moreno Zuniga, 37, a Mexican national, is charged with unlawfully possessing a firearm and ammunition, knowing he was unlawfully residing in the United States. ICE Enforcement and Removal Operations Dallas Field Office is the investigative agency. Assistant U.S. Attorney Jessica Wright is prosecuting the case. 25-CR-300
* Jerry Chares Creek, Jr., was tried by a federal jury in November 2025. He was acquitted of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; both counts of Aggravated Sexual Abuse by Force and Threat in Indian Country; and Assault with Intent to Commit Murder in Indian Country. Creek was found guilty of all other charges.
Atwater Prison Inmate Indicted for Threatening to Kill Prosecutor’s FamilyRead the Press Release
A federal grand jury returned an indictment Thursday against Stanislav Yelizarov, 35, an inmate in the United States Penitentiary, Atwater, charging him with threatening the family of a federal official, U.S. Attorney Eric Grant announced.
According to court documents, Yelizarov had been previously convicted in the District of Maryland and was undergoing further proceedings in the District of Maryland and the Fourth Circuit. The prosecutor in those cases was an Assistant U.S. Attorney in the District of Maryland.
On March 23, 2024, Yelizarov, using a recorded prison telephone line, communicated a threat to the Assistant U.S. Attorney that he intended to kill the prosecutor’s “whole family.” Yelizarov had previously sent threatening letters to the prosecutor.
This case is the product of an investigation by the Federal Bureau of Investigation and the Federal Bureau of Prisons, with assistance from the U.S. Marshals Service. The U.S. Attorney’s Office for the Eastern District of California was assisted by the U.S. Attorney’s Offices for the District of Maryland and the Eastern District of Virginia. Assistant U.S. Attorney Robert Veneman-Hughes is prosecuting the case.
If convicted, Yelizarov faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Arizona Woman Pleads Guilty to Endangering Children in Drunken High-Speed CrashRead the Press Release
ALBUQUERQUE – An Arizona woman pleaded guilty to assimilated federal charges after a high-speed, alcohol-fueled crash that endangered three young children.
According to court records, on May 4, 2024, Avedale Johnson, 40, an enrolled member of the Navajo Nation, drove intoxicated at speeds over 100 mph on U.S. Highway 491 with three unbelted children under 12 in her car, crashed into another vehicle, and fled from law enforcement. The three unbelted children were unharmed during the incident. Johnson later admitted to drinking vodka before the incident.
Johnson pleaded guilty to abandonment or abuse of a child (no death or great bodily harm). Johnson will be subject to up to three years in prison and five years of supervised probation.
Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case.
Arizona Man Sentenced to Prison Term for Deadly Drunk Driving CrashRead the Press Release
ALBUQUERQUE – An Arizona man was sentenced to 40 months in prison for causing a high-speed drunk driving crash on the Navajo Nation that killed two passengers and seriously injured another.
According to court records, on November 14, 2024, Marvin Albert Wauneka, 40, an enrolled member of the Navajo Nation, drank heavily before reporting to work, where he was too intoxicated to perform his job. Wauneka then went to a Wal-Mart, continued drinking, and later drove and continued to drink with four passengers at speeds of 85 to 100 miles per hour on Navajo Route 54, where he lost control and caused a single-vehicle rollover crash.
The scene of the rolloverTwo passengers were killed at the scene, a third suffered serious injuries but was able to escape the wreckage, and a fourth passenger escaped without serious harm. Wauneka’s blood alcohol content was measured at .298 upon arrival at the hospital.
Wauneka, who has a prior DWI conviction, pleaded guilty to two counts of involuntary manslaughter and one count of assault resulting in serious bodily injury. He was previously convicted in Navajo Nation Tribal Court and sentenced to 167 days in custody for this offense. Upon his release from prison, Wauneka will be subject to three years of supervised release.
Acting U.S. Attorney Ryan Ellison and Acting Special Agent in Charge Philip Russell of the Federal Bureau of Investigation’s Albuquerque Field Office made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant U.S. Attorney Mark A. Probasco is prosecuting the case.
Albany County Man Indicted for Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Nicholas Sherlock, age 33, of Watervliet, New York, was ordered detained today after being indicted for receiving child pornography. Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office for the Federal Bureau of Investigation, made the announcement.
The indictment, issued Tuesday, alleges that between August 2024 and May 2025, Sherlock received numerous graphic image and video files depicting minors engaged in sexually explicit conduct on a social media application via the Internet. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Acting United States Attorney John A. Sarcone III stated: “As alleged, Sherlock received child sexual abuse material over the internet. This is unfortunately a type of crime that is far too common. Every day we work hard to rid our communities of people who have a sexual interest in children. All such people belong in prison.”
FBI Special Agent in Charge Craig L. Tremaroli stated: “The allegations against Mr. Sherlock are repulsive, and the FBI is committed to dedicating every resource necessary to investigate these disturbing cases involving horrific images of our most vulnerable.”
The charge filed against Sherlock carries a maximum term of 20 years in prison, a mandatory minimum term of 5 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is convicted of violating, the U.S. Sentencing Guidelines and other factors. Also, Sherlock would have to register as a sex offender upon his release from prison.
The FBI is investigating the case. Assistant U.S. Attorney Alexander Wentworth-Ping is prosecuting the case.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Alaska Resident Found Guilty of Wire FraudRead the Press Release
PORTLAND, Ore.—A federal jury in Portland found Peter Igwacho, 64, a Cameroonian national residing in Anchorage, Alaska, guilty Thursday for wire fraud.
According to court documents and evidence presented at trial, between April 2020 and October 2021, during the ongoing Covid-19 pandemic, Igwacho filed at least five fraudulent applications for pandemic stimulus funds through the Paycheck Protection Program (PPP) and Economic Injury and Disaster Loan (EIDL) program. The information on those forms, in support of his request for stimulus funds, was fraudulent. The applications submitted by Igwacho were filed on behalf of a sole proprietorship that did not, in fact, have actual business operations, payrolled employees, or the reported gross revenues.
Further, upon receipt of the stimulus funds, Igwacho did not spend those funds on approved pandemic-related expenses but instead spent the money on personal expenses. The PPP and EIDL programs were designed to help small businesses facing financial difficulties during the Covid-19 pandemic.
On July 23, 2024, a federal grand jury in Portland returned a three-count superseding indictment charging Igwacho with wire fraud.
Igwacho faces a maximum sentence of 20 years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on November 18, 2025, before a U.S. District Judge.
This case was investigated by the Small Business Administration Office of Inspector General and Treasury Inspector General for Tax Administration. It was prosecuted by Robert Trisotto and Meredith Bateman, Assistant U.S. Attorneys for the District of Oregon.
68-Year-Old Moonshiner Sentenced to Federal Prison for Drug Trafficking and Gun Possession OffensesRead the Press Release
ATLANTA – Michael Ferrell Price, a/k/a “Cheese,” a Cherokee County drug user, has been sentenced to more than seven years in federal prison for trafficking methamphetamine from a backwoods shed in which he stored explosive devices, unregistered silencers, machineguns, and other firearms. In an adjacent structure, Price operated an illegal moonshine still.
“Price posed a clear danger to the community by selling methamphetamine and distilling moonshine while maintaining an illegal stash of explosive devices and more than 150 firearms,” said U.S. Attorney Theodore S. Hertzberg. “Thanks to the collaboration of federal agents and local law enforcement, Price has been brought to justice for his crimes.”
“This case demonstrates the results we achieve when federal, state, and local law enforcement work hand-in-hand,” said ATF Assistant Special Agent in Charge Beau Kolodka. “By combining resources and expertise, we were able to dismantle a criminal operation that threatened both public safety and the rule of law.”
“Stockpiling weapons while trafficking drugs is a recipe for tragedy,” said Major Walter Jones, Director of Drug Enforcement-Cherokee Multi-Agency Narcotics Squad. “Price’s sentencing should make clear that those who choose that path will face serious consequences.”
According to U.S. Attorney Hertzberg, the charges, and other information presented in court: In September 2024, agents of the Cherokee Multi-Agency Narcotics Squad began investigating Price for trafficking methamphetamine from his 90-year-old mother’s home in eastern Cherokee County. On October 22, 2024, agents executed a search warrant at the property and recovered more than three ounces of highly pure crystal methamphetamine, several gallons of homemade moonshine, dozens of illegal explosive devices, and more than 150 firearms.
Among Price’s 150 firearms were two machineguns, a short-barreled rifle, a privately manufactured firearm without a serial number, five firearm silencers, and a stolen revolver. Because Price was a years-long abuser of methamphetamine, federal law prohibited him from possessing firearms or explosives.
On August 21, 2025, United States District Judge Eleanor L. Ross sentenced Michael Ferrell Price, 68, of Ball Ground, Ga., to 87 months in prison to be followed by four years of supervised release. Price was convicted of possession of methamphetamine with intent to distribute and possession of a firearm by an unlawful drug user, after he pleaded guilty on May 7, 2025.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cherokee Multi-Agency Narcotics Squad. The Blue Ridge Judicial Circuit District Attorney’s Office provided valuable assistance.
U.S. Attorney Hertzberg prosecuted the case.
The U.S. Attorney’s Office recommends parents and children learn about the dangers of drugs at www.justthinktwice.gov and www.getsmartaboutdrugs.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
21 August 2025
West View Resident Charged with Producing, Receiving, and Possessing Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal law regarding the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today.
The three-count Indictment named Kevin Patrick Brown Jr., 35, of the West View neighborhood of Pittsburgh as the sole defendant.
According to the Indictment, in and around August of 2019, Brown used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. The Indictment also charges Brown with receiving and possessing child sexual abuse material in August 2019 and October 2021, respectively.
The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Kelly M. Locher is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment.
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.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Waterbury Man Sentenced to 13 Years in Federal Prison for Violent Carjacking, Drug TraffickingRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, announced that RICARDO VERDEJO, also known as “Rick” and “Ricky,” 27, of Waterbury, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 156 months of imprisonment, followed by three years of supervised release, for participating in both a violent carjacking and a Waterbury narcotics trafficking ring.
According to court documents and statements made in court, in the early morning hours of June 18, 2023, two all-terrain vehicles (“ATVs”) were stolen from Emily Rodriguez’s Waterbury residence. At the time, Rodriguez was living with Verdejo. After the theft, Verdejo, Rodriguez, and others posted messages on Facebook seeking to identify the individuals responsible for the theft and offering money for information about the location of the stolen vehicles. Verdejo and others then mistakenly identified an individual (“Victim 1”), who they incorrectly believed was involved in the theft. Later that night, Victim 1’s friend, (“Victim 2”), picked up Victim 1 from work and drove him home. As they arrived at Victim 1’s residence, three vehicles followed them and surrounded the victims. Verdejo, who carried an assault-style rifle, and others exited the vehicles and approached the victims. Verdejo and his associates demanded the return of the stolen ATVs, threatened to kill the victims, and physically assaulted them. Verdejo smacked one victim in the head and then used the barrel of the rifle to strike both victims in the face.
Verdejo and his associates then stole Victim 2’s vehicle, which was owned by Victim 2’s relative, and other items and cash belonging to the victims. Verdejo and his associates continued to harass the victims in the following days.
Also, Verdejo and 16 others were charged with federal offenses stemming from an investigation into two drug trafficking organizations based in the city of Waterbury. One organization operated in the area of William Street and the other operated in the area of Maple Avenue. Verdejo was involved in the William Street organization. The investigation, which included court-authorized wiretaps on multiple phones, video surveillance, GPS tracking of vehicles, and numerous controlled purchases of narcotics, revealed that the two organizations distributed cocaine, crack, and fentanyl through a network of sellers. The organizations shared sources of supply and worked together to further their operations.
Verdejo and several of his drug associates were arrested on November 29, 2023. In association with the arrests, investigators executed multiple search warrants and seized approximately 700 grams of crack cocaine, more than 900 vials (“caps”) of crack, approximately 200 grams of loose fentanyl, more than 1,600 dose bags of fentanyl/heroin, two stolen firearms, numerous rounds of ammunition, and more than $39,000 in cash.
Verdejo has been detained since his arrest. On April 15, 2024, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances, and on May 21, 2025, he pleaded guilty to carjacking resulting in serious bodily injury, and brandishing a firearm during and in relation to a crime of violence.
Rodriguez pleaded guilty and awaits sentencing.
These investigations were led by the FBI’s Northern Connecticut Gang Task Force and Waterbury Safe Streets Gang Task Force, and the Waterbury Police Department. The carjacking case is being prosecuted by Assistant U.S. Attorneys Nathan J. Guevremont and David T. Huang, and the narcotics trafficking case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Shan Patel through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Vacaville Man Pleads Guilty to Sexual Exploitation of a MinorRead the Press Release
Michael Keith Rubino, 37, of Vacaville, pleaded guilty today to sexual exploitation of a minor, U.S. Attorney Eric Grant announced.
According to court documents, Rubino used his iPhone to record a video of himself engaging in sexually explicit conduct with a 17-year-old girl who resided with him for approximately six weeks in late 2024. After his victim was admitted to a local hospital, Rubino told law enforcement officers that he never engaged in sexual conduct with her despite knowing that he had done so while she was seventeen.
This case is the product of an investigation by the Vacaville Police Department, with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
Rubino is scheduled to be sentenced by Chief U.S. District Judge Troy L. Nunley on Nov. 11, 2025. Rubino faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison, as well as a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Utah Man Sentenced to Two Years’ Imprisonment After Stealing $392,827 in Federal and State Funds During the COVID-19 PandemicRead the Press Release
SALT LAKE CITY, Utah – Former Utah State University Student Association Muslim Student Club President, Mubarak Sulaiman Ukashat, 38, of Kaysville, Utah, was sentenced to 24 months’ imprisonment after he engaged in a $392,900 scheme that included COVID-fraud, identity theft, wire fraud, and state unemployment benefits fraud. On February 6, 2025, Ukashat pleaded guilty to failure to file currency and other monetary instruments reports.
In addition to his term of imprisonment, a U.S. District Court Judge sentenced Ukashat to three years of supervised release and ordered him to pay $392,827 in restitution. Ukashat has also agreed to $101,000 in forfeiture.
According to court documents and admissions made at Ukashat’s change of plea and sentencing hearings, between June 2020 and July 2020, Mr. Ukashat fraudulently received approximately $333,900 in Economic Injury Disaster Loans (EIDL Loans) and wire transferred the funds into his USUSA Muslim Student Club Account. In doing so, Ukashsat submitted four fraudulent EIDL applications to the U.S. Small Business Association (SBA). He used the names of four people to whom he had no connection and directed the proceeds to be sent to the USUSA Muslim Students Club bank account at America First Credit Union, over which Ukashat had custody and control. Ukashat then used wire transfers to move the EIDL proceeds into another America First Credit Union account, over which he had ownership and control and held jointly with a relative before spending the funds on unauthorized personal expenses. Additionally, Ukashat fraudulently obtained $58,927 in state unemployment insurance benefits for which he did not qualify.
As a result of Ukashat’s fraudulent behavior, he intercepted and spent the EIDL-Loan money on a $45,900 GMC Yukon; $27,000 in electronics; $21,000 to pay off a car loan; $20,000 in debt payments; $10,000 in earnest money to buy a house; and $5,200 for college expenses. Ukashat also transferred over $100,000 outside of the Unites States to foreign countries such as Nigeria and Dubai.
Acting U.S. Attorney Felice John Viti of the District of Utah made the announcement.
The case was investigated by IRS-Criminal Investigation. (IRS-CI).
Assistant United States Attorneys Todd Bouton and Mark Y. Hirata of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
U.S. Navy Sailor Convicted of Spying for ChinaRead the Press Release
Yesterday, on Aug. 20, a federal jury convicted Jinchao Wei, also known as Patrick Wei, of espionage and export violations. Wei was an active-duty U.S. Navy sailor stationed at Naval Base San Diego when he agreed to sell Navy secrets to a Chinese intelligence officer for $12,000.
Following a five-day trial and one day of deliberation, the jury convicted Wei of six counts, including conspiracy to commit espionage, espionage, and unlawful export of, and conspiracy to export, technical data related to defense articles in violation of the Arms Export Control Act and the International Traffic in Arms Regulations. Wei is scheduled to be sentenced on Dec. 1.
“The defendant, who took an oath to protect our Nation and was entrusted with a security clearance as a petty officer in the United States Navy, sold out his country for $12,000,” said Assistant Attorney General for National Security John A. Eisenberg. “He violated his oath, betrayed his uniform and fellow sailors, and turned his back on his adopted nation for money. This verdict serves as a warning to those who do not take seriously the solemn obligations of their positions of trust or their duty to this Nation. Do not be tempted by easy money because you will be prosecuted and sent to prison.”
“The defendant’s actions represent an egregious betrayal of the trust placed in him as a member of the U.S. military,” said U.S. Attorney Adam Gordon for the Southern District of California. “By trading military secrets to the People’s Republic of China for cash, he jeopardized not only the lives of his fellow sailors but also the security of the entire nation and our allies. The jury’s verdict serves as a crucial reminder that the Department of Justice will vigorously prosecute traitors.”
“Jinchao Wei swore oaths to become a U.S. Navy sailor and a U.S. citizen. He then committed espionage by sending photographs and videos of U.S. Navy vessels, ship movement information, technical manuals, and weapons capabilities to a Chinese intelligence officer,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division. “China continues to aggressively target U.S. military members with and without clearances. This guilty verdict shows the FBI and our partners will aggressively investigate and hold accountable anyone who threatens U.S. national security. We encourage past and present U.S. government personnel to beware of anyone offering to pay for their information or opinions and to report any suspicious contacts to the FBI.”
According to evidence presented at trial, Wei was a machinist’s mate for the amphibious assault ship U.S.S. Essex. He also held a U.S. security clearance and had access to sensitive national defense information about the ship’s various systems.
The evidence introduced at trial showed that Wei was approached in February 2022 via social media by someone who claimed to be a naval enthusiast. The individual was in reality a Chinese intelligence officer. Between February 2022 and his arrest in August 2023, as their relationship developed, Wei, at the request of the officer, sent extensive information about the Essex, including photographs, videos, and about its weapons. He also sent detailed information about other U.S. Navy ships that he took from restricted U.S. Navy computer systems. In exchange for this information, the intelligence officer paid Wei more than $12,000 over 18 months.
During the trial, the government presented evidence including conversations and other messages that Wei exchanged with his Chinese handler. These communications showed the efforts they made to cover their tracks, the tasks issued by his handler, and how Wei was paid for his work.
In addition to the two espionage charges, Wei was convicted of four counts of conspiring to violate and violating the Arms Export Control Act. That law prohibits individuals from willfully exporting technical data related to a defense article without a license from the Department of State. The government presented evidence that Wei conspired with his Chinese handler to export certain technical information which required a license for export.
The FBI and NCIS investigated the case, with valuable assistance from the U.S. Department of State and Transportation Security Administration.
Assistant U.S. Attorney John Parmley for the Southern District of California and Trial Attorney Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Tulsa Man Sentenced for Aggravated Sexual Abuse and StrangulationRead the Press Release
TULSA, Okla. – In January, a federal jury convicted Denzil Austin Berryman of aggravated sexual abuse and assault by strangulation in Indian country.
Today, U.S. District Judge Sara E. Hill sentenced Berryman, 38, to 210 months imprisonment, followed by 10 years of supervised release. Upon his release, Berryman will also be required to register as a sex offender. Judge Hill further ordered Berryman to pay $5,375 in restitution.
According to trial testimony, in June 2023, Berryman was with the victim at her apartment. Berryman became enraged when he saw that the victim had candy that he believed was a gift from someone else. Berryman began screaming at the victim, slapped her, shoved the candy down her throat, punched the bedroom door, broke several electronics in the apartment, and threatened to harm her cat.
The victim called 911. When officers responded, Berryman told officers he would leave. Berryman did not go and began crying and apologized to the victim. The victim allowed Berryman to return to her apartment. There, Berryman forced the victim into her bedroom, where he sexually assaulted her. When the victim asked Berryman to stop, he proceeded to strangle her. After passing out, the victim woke to Berryman forcibly raping her.
Berryman is a citizen of the Choctaw Nation of Oklahoma and will remain in custody pending transfer to the
U.S. Bureau of Prisons.The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Stephanie Ihler and Stephen Scaife prosecuted the case.
The Office on Violence Against Women has resources for survivors of domestic violence. You can find information here.
Troy Man Sentenced to 10 Years for Attempted Enticement and CoercionRead the Press Release
ALBANY, NEW YORK – Dusty Oliver, Jr., age 36, of Troy, New York, was sentenced today to 10 years in prison for attempted enticement and coercion of a minor. Acting United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Oliver admitted that he attempted to entice and coerce an individual, whom Oliver believed to be a 13-year-old girl, to perform sex acts. After responding to an advertisement on a social-networking site and communicating with someone whom Oliver believed was the child’s guardian, Oliver traveled on June 26, 2024, from Troy to a prearranged meeting location near Lake George, New York. He paid $240 to the individual he thought was the child’s guardian in order to have access to and perform sex acts on the child.
United States District Judge Mae A. D’Agostino also imposed a 10-year term of post-imprisonment supervised release and ordered Oliver to forfeit the phone he used to commit the offense. Oliver is required to register as a sex offender upon release from prison.
Acting United States Attorney John A. Sarcone III stated: “Oliver’s sentence ensures he will spend a decade in federal prison for his vile actions. The messages that Mr. Oliver sent to an undercover officer to buy sex from a child would turn your stomach, and he traveled from Troy to Lake George to make his sick fantasies a reality. My Office is committed to making our communities safer by prosecuting pedophiles and working with our law enforcement partners in identifying child predators like Mr. Oliver.”
FBI Special Agent in Charge Craig L. Tremaroli stated: “Mr. Oliver’s revolting intentions just landed him in federal prison for the next decade. Today’s sentence illustrates the FBI remains steadfast in our mission to protect our most vulnerable from dangerous predators, and we will continue to use every resource available to ensure these heinous individuals are brought to justice.”
This case was investigated by FBI Albany’s Child Exploitation Task Force, which includes FBI Special Agents and investigators from state and local law enforcement agencies. Assistant U.S. Attorney Carling Dunham prosecuted this case as part of Project Safe Childhood.
Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Trinitarios Gang Member Charged with Possession of MachinegunRead the Press Release
BOSTON – A Lawrence man appeared in federal court yesterday in connection with a criminal complaint charging him with possessing an UZI machinegun.
Derek Mercado, 20, is charged by criminal complaint with one count of possession of a machinegun. Mercado is currently in state custody for domestic violence offenses.
Mercado is alleged to be a member of the Trinitarios gang, a violent criminal enterprise responsible for numerous murders and acts of violence across Massachusetts. According to charging documents, an alert to arrest Mercado was broadcast by law enforcement on the morning of May 6, 2025, following a report of a domestic violence incident. The victim reported that the defendant was allegedly in possession of a firearm in a green duffel bag. At the time, Mercado was in warrant status on two unrelated matters. Mercado was later observed exiting a residence while allegedly possessing a green duffel bag. Mercado was taken into custody and an Israel Military Industries UZI model submachinegun containing an extended magazine loaded with 24 rounds was recovered in the green bag. The UZI was later test-fired and determined to be a functional machinegun.
In August 2024, three members of the Lawrence Chapter of the Trinitarios were charged with an armed robbery. In February 2025, nearly two dozen members of the Lynn Chapter of the Trinitarios were charged with committing six murders in Lynn and Lawrence. In June 2025, two Trinitarios members were charged with committing a kidnapping in Andover.The charge of possessing a machinegun provides for a maximum penalty of up to 10 years in prison, up to 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; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; Essex County District Attorney Paul F. Tucker; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Haverhill Police Chief Robert Pistone made the announcement today. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime and Gang Unit is prosecuting the case.
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 Neighborhood (PSN).
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Woman Sentenced for Decade-Long Fraud ConspiracyRead the Press Release
ALBANY, NEW YORK – Shelbra Long, age 58, of Edinburg, Texas, was sentenced today to 1 year and a day in prison for conspiring to commit mail fraud and wire fraud. Acting United States Attorney John A. Sarcone III and Acting Special Agent in Charge Andrew Balceniuk of the U.S. Department of Education Office of Inspector General (ED OIG) – Eastern Regional Office, made the announcement.
Long previously admitted to engaging in a decade-long scheme to apply for admission and financial aid to online colleges throughout the United States – including one in Albany – in the names of people who had their identities stolen. After the Department of Education disbursed the financial aid to a school, Long and her coconspirators withdrew the purported student from enrollment. The schools refunded the balance of the disbursed financial aid that had not been used to bank accounts controlled by the conspirators. Long used some of that aid to pay utilities for her home, and she withdrew other amounts from ATMs. The Department of Education awarded $466,430 in aid based on the scheme, of which it disbursed $211,820.
Acting United States Attorney John A. Sarcone III said, “Today’s sentencing punishes Shelbra Long for using stolen identities to shamelessly divert several hundredthousand dollars in federal aid into her own coffers. My Office and our partners will rout out these financial criminals wherever they are. It is time to stop the theft of student aid and for colleges to do more to ensure that the people enrolling in classes are genuine students.”
ED OIG Acting Special Agent in Charge Andrew Balceniuk said, “I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another student aid fraud ring and holding Ms. Long accountable for her criminal actions. OIG is committed to fighting student aid fraud and we will continue to aggressively pursue those that participate in these types of crimes.”
United States District Judge Anne M. Nardacci also imposed a 3-year-term of supervised release; and ordered Long to pay $211,820 in restitution and to forfeit $52,304.
ED OIG investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.
Texas Man Sentenced to 24 Months in Prison for Illegally Dumping Laboratory Grade Cyanide and Other Chemicals in Bernalillo CountyRead the Press Release
ALBUQUERQUE – A former New Mexico resident now living in Texas was sentenced to 24 months in prison for knowing endangerment in the storage and disposal of hazardous waste without a permit.
According to court documents and evidence presented at the sentencing hearing, Daniel Winard, 52, of Houston, Texas, previously inherited property in New Mexico from a retired chemist for an energy company. When Winard took control of the property, he found a large assortment of hazardous waste had been left behind, including laboratory grade chemicals.
Winard contacted local government officials about the process for properly disposing of the chemicals and learned it was expensive. Winard later arranged to dispose of the chemicals unlawfully at nine locations in the Albuquerque area without a permit from the United States Environmental Protection Agency (EPA) or the State of New Mexico. The chemicals dumped included cyanide, yellow phosphorus, calcium carbide, and thionyl chloride.
Chemicals recovered in 2018 Trailer dumped on West Mesa in 2018Winard knew the grave risks of dumping some of these chemicals down the drain. Winard also knew the chemicals posed an imminent threat of death or serious bodily injury to passersby, first responders, and others. Winard knew some of the chemicals would react violently to water, could release poisonous gas, and were harmful to the environment. At one point, Winard remarked that “some dumbass fireman” might find the chemicals and “get the surprise of his life.”
The City of Albuquerque and Bernalillo County coordinated an extensive clean-up effort with a private contractor after the chemicals were discovered in August 2018. The total clean-up cost paid by the City of Albuquerque and Bernalillo County was $198,654.46. The EPA later took custody of the waste and analyzed the chemicals. Federal prosecutors commended the Bernalillo County Sheriff’s Department, the Natural Resources Section of the Bernalillo County Public Works Department, the City of Albuquerque’s Solid Waste Management Department, and the Hazardous Waste Bureau of the New Mexico Environment Department for their critical role in ensuring the hazardous waste was properly removed before anyone was injured.
“There is no excuse for putting lives, property, and the environment at risk by dumping hazardous chemicals,” said U.S. Attorney Ryan Ellison. “We will not tolerate reckless disregard for our communities' safety. Those who endanger others for their own convenience can expect to be prosecuted to the fullest extent of the law.”
"Today’s sentencing demonstrates EPA’s commitment to safeguarding the public by investigating crimes and prosecuting people who knowingly endanger lives,” said Kim Bahney, EPA Special Agent in Charge. “Our investigation uncovered that the defendant deliberately discarded dangerous and reactive hazardous wastes in multiple areas, intending to ‘surprise’ first responders.”
On April 25, 2022, Winard pleaded guilty to one count of knowing endangerment in storing and disposing of hazardous waste without a permit.
Upon his release from prison, Winard will be subject to three years of supervised release and must pay $9,527.55 in restitution.
Acting U.S. Attorney Ryan Ellison and EPA Special Agent in Charge Kim Bahney made the announcement today.
The EPA’s Criminal Investigation Division, Southwest Area Branch investigated the case. Assistant U.S. Attorney Sean J. Sullivan prosecuted the case.
Three Baton Rouge Individuals Sentenced to Federal Prison in Connection with the Department of Justice’s 2024 National Health Care Fraud Enforcement ActionRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge Brian A. Jackson sentenced Kevan Andre Hills, 32, Devin Tyrone Stampley, Jr., 33, and Asia Deshan Guess, 28, all of Baton Rouge, Louisiana, to terms of imprisonment today. Stampley was sentenced to 104 months in federal prison, Hills was sentenced to 96 months in federal prison, and Guess was sentenced to 24 months in federal prison for their roles in schemes to obtain controlled substances from pharmacies using fraudulent prescriptions with the stolen identities of licensed medical professionals, and to obtain funds from federal pandemic assistance programs by submitting false and fraudulent applications.
According to court documents, Hills, Stampley, and Guess caused the submission of fraudulent prescriptions for controlled substances, such as Promethazine with Codeine and Hydrocodone, to Medicaid, causing Medicaid to be fraudulently billed for filling those fraudulent prescriptions. They used the Drug Enforcement Administration (DEA) registration numbers and other identifying information of several physicians and other medical providers, without authority, on the fraudulent prescriptions. As part of the scheme to unlawfully obtain controlled substances for resale, Stampley burglarized a pharmacy in Louisiana.
Hills, Stampley, and their co-conspirators also submitted, caused to be submitted, and assisted others in submitting numerous false and fraudulent applications for federal funds, seeking at least $293,498 in funds administrated by the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) Program, and Coronavirus Aid, Relief, and Economic Security (CARES) Act unemployment benefits. Hills, Stampley, and their co-conspirators submitted and caused to be submitted falsified bank statements, tax forms, and other documents in support of the fraudulent PPP applications. Hills, Stampley, and their co-conspirators defrauded the federal pandemic assistance programs of at least $87,663 by posing as fake small business owners and residents in need of assistance. Upon receipt of the illegal funds, Hills, Stampley, and their co-conspirators made electronic transfers and personal purchases.
Guess illegally sought at least $125,978 in federal funds, including federal Pandemic Unemployment Assistance (PUA) benefits under the CARES Act for eligible workers during the COVID-19 pandemic. Guess caused the submission of fraudulent applications and claims for unemployment benefits to the Louisiana Workforce Commission (LWC), Maine Department of Labor (Maine DOL), and other state workforce agencies around the country. Guess assisted in the submission of falsified application details, such as her employment history and residency, to appear eligible for PUA funds and other benefits. Guess fraudulently obtained at least $15,859 in unemployment insurance benefits from the LWC and Maine DOL.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, Drug Enforcement Administration, and the U.S. Department of Labor, Office of Inspector General. This case was prosecuted by Assistant United States Attorney Kristen L. Craig of the Middle District of Louisiana, and Trial Attorneys Gary A. Crosby II and Samantha E. Usher of the Criminal Division’s Fraud Section.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Anyone with information about allegations of pandemic fraud can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Suburban Chicago Man Sentenced to Nearly Six Years in Prison for Covid-Relief FraudRead the Press Release
CHICAGO — A federal judge has sentenced a suburban Chicago man to nearly six years in prison for fraudulently obtaining more than $550,000 in small business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
In 2020 and 2021, CHRISTOPHER SCOTT engaged in fraud related to the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan program (EIDL)—two sources of relief under the CARES Act. Scott submitted to lenders and the U.S. Small Business Administration numerous applications on behalf of non-existent or non-operating businesses. The applications contained false statements and misrepresentations concerning, among other things, the purported businesses’ revenues, payrolls, and operating expenses. The fraud scheme caused lenders and the SBA to disburse more than $550,000 in loans to Scott.
Scott and others used the loan proceeds on personal expenses, including numerous purchases at luxury retailers Tiffany & Co., Jared Jewelers, Von Maur, Nordstrom, and Saks Fifth Avenue.
Scott, 46, of Hazel Crest, Ill., pleaded guilty earlier this year to a federal wire fraud charge. On Wednesday, U.S. District Judge Elaine E. Bucklo sentenced Scott to five years and ten months in federal prison and ordered him to pay $567,333 in restitution.
The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Dai Tran, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. Substantial assistance was provided by the SBA Office of Inspector General.
“Put simply, Scott’s crime was motivated by greed,” Assistant U.S. Attorney Alejandro G. Ortega argued in the government’s sentencing memorandum. “This offense was not a simple lapse in judgment, or a crime born out of economic poverty or necessity. It was, at least, a year-long scheme to fraudulently obtain free money from the government.”
“The government programs exploited in this case were intended to help struggling small businesses stay afloat during the pandemic,” Secret Service SAIC Tran said. “Instead, this man pilfered more than half a million dollars from these programs—and by extension, taxpayers—to go on an outrageous high-end spending spree to benefit himself. I’m proud of the work the Secret Service and the U.S. Attorney’s Office of the Northern District of Illinois did to bring justice in this case.”
St. Louis County Man Accused of Conspiring to Steal 16 Homes and a DuplexRead the Press Release
ST. LOUIS – A man accused of conspiring to steal or try to steal 16 homes and a duplex with bogus deeds appeared in U.S. District Court in St. Louis Thursday and pleaded not guilty to two separate indictments.
James L. Townes Jr., 50, of Berkeley, was originally charged by complaint on June 10, 2025. He was indicted by a grand jury on June 25 with one count of mail fraud, one count of access device fraud, one count of unlawful production of an authentication feature, four counts of identity theft and four counts of aggravated identity theft. An August 6 superseding indictment charged Townes with a total of 25 counts, including conspiracy, mail fraud, access device fraud, fraudulently effecting transactions, unlawful production of an authentication feature, identity theft and aggravated identity theft.
Townes was indicted in a separate case on August 6 with one count of mail fraud, five counts of wire fraud and four counts of theft of government funds.
The superseding indictment accuses Townes and Charnay Bartlett, 29, of using a series of deeds to fraudulently transfer the ownership of 16 residences and a duplex between September 2018, and April 2025. Townes and Bartlett stole the identities of the true owners and fraudulently notarized the documents and forged signatures to perpetuate the transfers, the indictment says. Townes continued to fraudulently transfer the properties after his notary license was suspended, the indictment says.
Bartlett faces one count of conspiracy, one count of fraudulently effecting transactions, four counts of unlawful production of an authentication feature and four counts of identity theft.
The second indictment accuses Townes of falsely claiming to be disabled from February 2017, through August 6, 2025. Townes, it says, claimed not to have a bank account or any resources and said he could not walk more than five or 10 steps, do any household chores or lift, squat, bend, climb stairs, concentrate or complete tasks. During that time, Townes ran Tied Tight Entertainment and acted as the registered agent of 13 other LLCs, owned two investment accounts, became commissioned as a notary public and filed property deeds, the indictment says.
Charges set forth in indictments are merely an accusation and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The U.S. Department of Housing and Urban Development Office of Inspector General, the Social Security Administration Office of Inspector General, the St. Louis County Police Department and the Hazelwood Police Department investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
St. Clair County Man Charged with CyberstalkingRead the Press Release
BIRMINGHAM, Ala. – A St. Clair County man has been charged with cyberstalking, announced U.S. Attorney Prim F. Escalona.
A two-count indictment filed in U.S. District Court charges Michael Ray Mullins, 44, of Trussville, Alabama, with one count of cyberstalking and one count of interstate transmission of a threat to kidnap or injure another person. These incidents occurred between September and October 2024 in St. Clair County.
The FBI investigated the case along with the Margaret Police Department. Assistant U.S. Attorney Daniel S. McBrayer is prosecuting the case.
An indictment contains only charges. Defendants are presumed innocent unless and until proven guilty.
South Bend Man Sentenced to 101 Months in PrisonRead the Press Release
SOUTH BEND – Zai’Vohn Perry, 25 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a convicted felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking crime, announced Acting United States Attorney M. Scott Proctor.
Perry was sentenced on Count 2 of the Indictment to 41 months in prison and on Count 5 to 60 months in prison, those terms to run consecutively. He was also sentenced to 3 years of supervised release on Counts 2 and 5, those terms to run concurrently.According to documents in the case, in January of 2024, Perry exchanged fire in a mid-afternoon gunfight, shooting 17 rounds in a residential area in South Bend. He engaged in another gun fight a week later, firing several rounds in broad daylight in a residential area in South Bend. Officers obtained a search warrant for his residence and found two firearms, including the gun used in both shootings. Officers also found over 100 fentanyl pills and marijuana packaged for distribution.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the South Bend Police Department. The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Second Defendant Convicted in Multi-State Retail Crime Theft SchemeRead the Press Release
PROVIDENCE – A Michigan man pleaded guilty in U.S. District Court in Rhode Island today to a charge of conspiracy to commit wire fraud for his role in a scheme that defrauded a Rhode Island-based retail outlet of approximately $140,000, announced Acting United States Attorney Sara Miron Bloom.
From at least June 2022, and continuing to April 3, 2024, Mattek Scott, 27, of Flint, MI, and co-conspirators, to include Ariana Asberry, 26, of Flint, MI, fraudulently obtained money, pre-paid gift cards, and merchandise from at least 35 of the retailer’s outlets in at least 11 states, including in Rhode Island.
As part of the scheme, Scott, Arianna, and others would use fraudulent debit or credit cards to purchase merchandise and pre-paid gift cards. When the fraudulent payment cards were declined, they directed the cashier to complete the transaction by pushing the “Cash tendered” button; however, no cash was tendered. As a result of this scheme, the gift cards were loaded with U.S. Currency, ranging from $199 to $500.
Scott, Arianna, and others traveled to various retail outlets to purchase new pre-paid gift cards using the fraudulently obtained pre-paid cards. The proceeds were then used on various goods and services, including hotel stays, restaurant meals, groceries, car repairs, utilities, gas, and convenience store items.
The Rhode Island- based retailer suffered losses totaling approximately $140,000.
Scott is scheduled to be sentenced on November 20, 2025. The sentence imposed will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Arianna Asberry pleaded guilty on November 20, 2024, to a charge of conspiracy to commit wire fraud. She was sentenced to time served, three years federal supervised release, and ordered to pay restitution in the amount of $138,633.01.
The case is being prosecuted by Assistant United States Attorneys Christine D. Lowell and Julianne Klein.
The matter was investigated by Homeland Security Investigations
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Scranton Man Sentenced to 57 Months in Federal Prison for Nearly One Million Dollar Covid-19 Pandemic Fraud and Money Laundering SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Yoel Weiss, age 43, of Scranton, Pennsylvania, was sentenced on Wednesday, August 20, 2025, to 57 months in prison by United States District Judge Karoline Mehalchick, related to his plea of guilty for one count of wire fraud -- false statements to the Small Business Administration, and one count of unlawful monetary transactions (money laundering). Additionally, Weiss was ordered to pay $858,000 in restitution and will have to serve a 3-year term of supervised release following his incarceration.
According to Acting United States Attorney John Gurganus, in June and July of 2020, during the on-going Covid-19 pandemic, Weiss filed at least seven fraudulent applications for pandemic stimulus funds through the Economic Injury and Disaster Loan (EIDL) program. The information on those forms, in support of his request for stimulus funds, was fraudulent. The applications submitted by Weiss were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore false dates of business establishment, false employee headcount information, and fabricated gross revenues, costs of goods sold, and lost rental income.
Further, upon receipt of the nearly one million dollars in stimulus funds, Weiss did not spend those funds on approved pandemic-related expenses, but instead spent the money on retail shopping, credit card debt, a real estate purchase of a distillery in New York, and to fund other personal expenses and real estate purchases. Weiss additionally received a sentencing enhancement related to obstruction of justice when he attempted to influence and prevent the testimony of a witness who was subpoenaed to testify in front of a federal grand jury.
“Mr. Weiss deliberately and repeatedly defrauded the Economic Injury Disaster Loan (EIDL) program designed to help small business owners during the COVID pandemic for his own personal enrichment,” said Philadelphia Field Office Special Agent in Charge Yury Kruty. “Yesterday’s sentencing holds Mr. Weiss accountable for his criminal actions and shows that our office continues working to bring charges against individuals who commit these crimes.”
The EIDL program, funded by the March 2020 CARES Act, was designed to help small businesses facing financial difficulties during the COVID-19 pandemic. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the Internal Revenue Service, Criminal Investigations. Assistant United States Attorney Luisa Honora Berti prosecuted the case.
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Suspended Broker Charged for Online Investment FraudRead the Press Release
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Christopher G. Raia, announced today the unsealing of an Indictment charging KENNETH THOM, a/k/a “K$,” a/k/a “K Money,” with securities fraud and investment adviser fraud. THOM was arrested today and will be presented before U.S. Magistrate Judge Barbara Moses. The case has been assigned to U.S. District Judge Edgardo Ramos.
“After his suspension as a broker, Kenneth Thom used social media to steal from investors,” said U.S. Attorney Jay Clayton. “If you’re getting investment advice from someone who is not registered as a broker or investment advisor, the risk of fraud is much higher. We will hold accountable anyone who preys on everyday investors who rightly expect their trading professionals to be in good standing and act in their best interests.”
“Kenneth Thom allegedly manipulated his client’s investments to not only place unsuccessful trades, but also promote an illusion of success,” said FBI Assistant Director in Charge Christopher G. Raia. “Thom’s alleged incessant deceit betrayed the trust of investors by failing to disclose his misuse and loss of client funds. The FBI will never waiver from apprehending any individual who steals from others’ pockets to greedily finance personal purchases.”
According to the allegations in the Indictment unsealed today:[1]
In May 2006, THOM passed securities licensing examinations and registered as a broker with the Financial Industry Regulatory Authority (“FINRA”). In or around January 2011, FINRA suspended THOM’s broker registration after he failed to pay an arbitration award to an investor. THOM also admitted around that time to the FBI that he had commingled that investor’s money with his own money in a brokerage account that THOM controlled and lost most of the money through unsuccessful trading. THOM further admitted that when the investor sought to withdraw her funds, he did not tell the investor that he had lost her money and instead invented fake excuses and then ignored the investor altogether.
After being suspended by FINRA, THOM turned to social media and promoted himself online as a successful trader. Using the monikers “K$” and “K Money,” THOM described himself as a “Wall Street veteran,” a “luminary,” and a “beacon of knowledge,” and he used his online platforms to sell trading courses and trade suggestions to his followers. One of THOM’s platforms was a Facebook group called, at relevant times, the “K$ Trading Group” (the “K$ Facebook Group”), in which THOM posted the results of his purportedly successful trades.
Beginning in late 2023, THOM invited members of the K$ Facebook Group to participate in “shared accounts” that THOM would manage in exchange for a percentage of the trading profits. THOM eventually raised nearly $800,000 from approximately 67 clients. Of this sum, THOM invested only approximately $350,000, diverting most of the remainder for his own personal use, including on travel, dining, and luxury goods.
Of the $350,000 that THOM invested, he lost more than $250,000 trading options, for a net loss of approximately 73% between in or around March 2024 and March 2025. To hide these losses, THOM published false performance updates showing significant gains. For example, on or around July 3, 2024, THOM posted in the K$ Facebook Group that each of his three purported shared accounts was positive year-to-date, with returns ranging from 4% to 120% (see photo below). In fact, as of the close of the preceding trading day, THOM had lost approximately 31% of the client funds he invested to date.
In or about January 2025, the name of the K$ Facebook Group was changed to “AYBABTU” — an acronym for the Internet meme “all your base are belong to us” — and THOM stopped responding to clients.
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THOM, 41, of Westfield, New Jersey, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five 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 FBI. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission, which separately initiated civil proceedings against the defendant today.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Alexander Li is 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.
u.s._v._thom_indictment.pdf[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Roofing Contractor Admits Tax Evasion SchemeRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, and Thomas Demeo, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that on August 19, 2025, ANTHONY DELMARO, 48, of Woodbridge, waived his right to be indicted and pleaded guilty before U.S. District Judge Sarala V. Nagala in Hartford to tax evasion.
According to court documents and statements made in court, since at least 2012, Delmaro has owned and operated a commercial roofing businesses in Connecticut, most frequently doing business as “Kings Roofing.” The business also provided paving services. Until Delmaro was notified of this investigation, Kings Roofing was not registered with the Connecticut Secretary of State and did not have a federal Taxpayer Identification Number. From 2012 to 2022, Kings Roofing earned approximately $20.9 million in customer receipts, but Delmaro paid his workers in cash, never filed income or payroll tax returns for himself or the business, and took several steps to conceal income and operating expenses from the IRS.
As part of his tax evasion scheme, Delmaro and others associated with his business cashed checks from customers at various check cashing businesses instead of depositing them into bank accounts. Delmaro provided the check cashers with addresses associated with UPS mailboxes rather than his home address. When the check cashers filed Currency Transaction Reports (“CTRs”), the IRS only had a UPS mailbox location to try to identify source of income. When not using a check casher, Delmaro made business-related deposits into his personal bank account.
Delmaro also had customers file false Forms 1099 made out to a family member, rather than his business, or made out to Delmaro himself, making income attribution more difficult. Delmaro sometimes provided customers with an alias, “Sonny Rubino,” which they used on the 1099. If a customer refused to pay unless Delmaro provided a Form W-9 identifying his taxpayer identification number and address, Delmaro often provided a W-9 completed with his father’s name and Social Security number and an address associated with a UPS mailbox. Delmaro’s father used an alias, which differed from the name and information Delmaro provided to the customer.
For the 2022 tax year, Delmaro cashed $3,710,628 in checks made payable to Kings Roofing at check cashing businesses, received $439,700 in business-related deposits into his personal bank account, and caused 24 Forms 1099-NEC totaling $1,908,095 to be filed with false information.
The investigation also revealed that from 2019 to April 2025, Delmaro received more than $500,000 in Husky Health Low Income Medical benefits. Husky Health is a Connecticut Medicaid program, jointly funded by the federal government and by the State of Connecticut and administered by the Connecticut Department of Social Services.
Delmaro has agreed to pay restitution of $1,129,669 to the IRS, and $578,259 to the Connecticut Medicaid program.
Judge Nagala scheduled sentencing for December 17.
Delmaro is released on a $50,000 bond pending sentencing.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division and the Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Repeat Child Pornography Offender Sentenced to 20 Years in Prison for Possession of Child PornographyRead the Press Release
PEORIA, Ill. – U.S. District Judge Jonathan E. Hawley sentenced a Peoria, Illinois, man, Michael Dean Dupoy, 53, to 216 months’ imprisonment, to be followed by a lifetime term of supervised release, for possession of child pornography. Judge Hawley also sentenced Dupoy, who was serving a term of supervised release for an earlier conviction for receipt of child pornography, to 24 months’ imprisonment for violating the terms of that supervised release. He further ordered that the 24 months sentence be served consecutively to the 216-month sentence, for a total sentence of 240 months.
At the sentencing hearing on August 20, 2025, Judge Hawley heard arguments relating to Dupoy’s history of arrests, including his 2008 conviction for receipt of child pornography. For that offense, he was sentenced to 220 months’ imprisonment, followed by a lifetime term of supervised release. Dupoy began his supervised release in early October 2024. Later that same month, while visiting Dupoy at his residence, a United States Probation Officer noticed a SanDisk Model 512GB Micro SD card. Although Dupoy claimed it just contained movies, the officer seized the card and submitted it for analysis. While waiting for the analysis, the officer visited Dupoy in December 2024 at his home and found that Dupoy had an unmonitored cellular phone, which was prohibited under the conditions of his supervised release. Analysis of the SD card and the cellular phone revealed that Dupoy had 482 images and 58 videos of child sexual abuse materials. Also on the SD card and the phone were photos of children who came into the store where he worked.
Dupoy was arrested in December 2024 in relation to the supervised release violation. A federal grand jury returned an indictment in a new criminal case in February 2025 charging Dupoy with possession of child pornography. Dupoy pleaded guilty in April 2025. He has remained in the custody of the U.S. Marshals Service since his arrest.
At the sentencing hearing, Judge Hawley found that the sentence was necessary to protect the public and deter Dupoy from further criminal conduct, noting that his criminal conduct began almost immediately upon his release from prison. The judge said that he saw “nothing to think [that Dupoy] would not immediately engage in this behavior again” and said that the “the surest way to deter” Dupoy was to have him in custody. The judge concluded that Dupoy needed “to be removed from society to protect the public.”
Because of Dupoy’s prior conviction, the statutory penalties for possession of child pornography are 10 to 20 years’ imprisonment, to be followed by a five-year to life term of supervised release.
The United States Probation Office and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.
The case against Dupoy was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Philadelphia Man Pleads Guilty to Violent Threats, Cyberstalking, Civil Rights ViolationsRead the Press Release
Mark Tucci, 44, of Philadelphia, Pennsylvania, entered a plea of guilty today before U.S. District Judge Gerald A. McHugh to multiple charges arising from racist, violent threats made by phone, email, text message, and in person, that targeted African Americans.
The defendant was arrested on a criminal complaint and warrant in January of this year and charged by information in March with one count each of a threat to use a dangerous weapon, interfering with federally protected activities, cyberstalking, interstate communication of threats, and threats interfering with federally protected activities. Tucci pleaded guilty to all the charges.
As detailed in the information and other court filings, the defendant repeatedly called and sent text messages and emails that consisted of racial epithets and violent threats to harm an employee (Victim 1) of an agency of the City of Philadelphia (Philadelphia Agency 1), and Victim 1’s colleagues.
Between about April 18, 2024, and June 2, 2024, Tucci emailed Victim 1 multiple times regarding a records request he had made to the agency. This escalated on June 3, 2024, when he repeatedly called Philadelphia Agency 1, and during two of those calls, he spoke with Victim 1, identified himself by name, and screamed at Victim 1, who asked him to stop screaming. He continued to do so, causing Victim 1 to hang up each time.
During subsequent calls on June 3 with Philadelphia Agency 1, Tucci spoke with two of Victim 1’s colleagues, using racial epithets and making threats. Specifically, the defendant said that he was going to come down to Philadelphia Agency 1 the next day and hurt everyone, and that he had Victim 1’s home address and was going to hurt Victim 1.
Tucci sent multiple emails to Victim 1 the same day, using similar racial epithets and threats. He also texted Victim 1 on their personal cell phone, a phone number that Victim 1 had never provided to the defendant. The text messages from Tucci to Victim 1 mentioned Victim 1 by name, and the name of the street on which Victim 1 resided at the time. The messages included a warning that “This is personal now,” and additional threatening language.
Tucci’s communications caused Victim 1 severe emotional distress, and fear that Tucci would find Victim 1 and seriously injure or kill them or their family members.
Tucci willfully intimidated and interfered, and attempted to intimidate and interfere, with Victim 1 because of Victim 1’s race and color, and because Victim 1 was enjoying employment by, and all perquisites of, an agency of the City of Philadelphia, a subdivision of the Commonwealth of Pennsylvania.
Also detailed in court filings, on the morning of Feb. 1, 2024, Tucci pulled up next to another car in heavy traffic on I-95 southbound, lowered his windows, and repeatedly screamed racial epithets and threats to kill and shoot the other car’s driver (Victim 2), who is African American. Tucci then reached down into his car, pulled out a glass mug containing coffee, and threw it at Victim 2’s vehicle, terrifying Victim 2 and damaging their car.
The defendant will be sentenced in December of 2025 and faces a maximum penalty of 21 years in prison.
This case was investigated by the FBI, the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant U.S. Attorney J. Jeanette Kang for the Eastern District of Pennsylvania and Trial Attorney Samuel Kuhn of the Civil Rights Division’s Criminal Section.
Philadelphia Man Pleads Guilty to Violent Threats, Cyberstalking, Civil Rights ViolationsRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Mark Tucci, 44, of Philadelphia, Pennsylvania, entered a plea of guilty today before United States District Judge Gerald A. McHugh to multiple charges arising from racist, violent threats made by phone, email, text message, and in person, that targeted African Americans.
The defendant was arrested on a criminal complaint and warrant in January of this year and charged by information in March with one count each of a threat to use a dangerous weapon, interfering with federally protected activities, cyberstalking, interstate communication of threats, and threats interfering with federally protected activities. Tucci pleaded guilty to all the charges.
As detailed in the information and other court filings, the defendant repeatedly called and sent text messages and emails that consisted of racial epithets and violent threats to harm an employee (Victim 1) of an agency of the City of Philadelphia (Philadelphia Agency 1), and Victim 1’s colleagues.
Between about April 18, 2024, and June 2, 2024, Tucci emailed Victim 1 multiple times regarding a records request he had made to the agency. This escalated on June 3, 2024, when he repeatedly called Philadelphia Agency 1, and during two of those calls, he spoke with Victim 1, identified himself by name, and screamed at Victim 1, who asked him to stop screaming. He continued to do so, causing Victim 1 to hang up each time.
During subsequent calls on June 3 with Philadelphia Agency 1, Tucci spoke with two of Victim 1’s colleagues, using racial epithets and making threats. Specifically, the defendant said that he was going to come down to Philadelphia Agency 1 the next day and hurt everyone, and that he had Victim 1’s home address and was going to hurt Victim 1.
Tucci sent multiple emails to Victim 1 the same day, using similar racial epithets and threats. He also texted Victim 1 on their personal cell phone, a phone number that Victim 1 had never provided to the defendant. The text messages from Tucci to Victim 1 mentioned Victim 1 by name, and the name of the street on which Victim 1 resided at the time. The messages included a warning that “This is personal now,” and additional threatening language.
Tucci’s communications caused Victim 1 severe emotional distress, and fear that Tucci would find Victim 1 and seriously injure or kill them or their family members.
Tucci willfully intimidated and interfered, and attempted to intimidate and interfere, with Victim 1 because of Victim 1’s race and color, and because Victim 1 was enjoying employment by, and all perquisites of, an agency of the City of Philadelphia, a subdivision of the Commonwealth of Pennsylvania.
Also detailed in court filings, on the morning of February 1, 2024, Tucci pulled up next to another car in heavy traffic on I-95 southbound, lowered his windows, and repeatedly screamed racial epithets and threats to kill and shoot the other car’s driver (Victim 2), who is African American. Tucci then reached down into his car, pulled out a glass mug containing coffee, and threw it at Victim 2’s vehicle, terrifying Victim 2 and damaging their car.
The incident occurred while Victim 2 was enjoying a facility provided and administered by a State and a subdivision thereof, that is, driving on I-95.
This case was investigated by the FBI, the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang and Trial Attorney Samuel Kuhn of the Civil Rights Division’s Criminal Section.
Pekin Man Sentenced to 10 Years in Prison for Attempted Enticement of a MinorRead the Press Release
PEORIA, Ill. – A Pekin, Illinois, man, Joseph D. Perkins, 32, was sentenced today to 120 months’ imprisonment, to be followed by seven years of supervised release, for attempted enticement of a minor. He also is required to register as a sex offender under the Sex Offender Registration and Notification Act (SORNA).
At the sentencing hearing before U.S. District Judge Michael M. Mihm, the court considered evidence from Perkins’s April 2025 jury trial showing that from January 2023 until March 2024, he engaged in conversation with a person he believed to be a fourteen-year-old female. Throughout the 14-month conversation, Perkins made multiple attempts to obtain nude photos and repeatedly attempted to meet the individual to engage in sexual activities. He arrived at a planned meet-up in late March 2024 and was arrested by federal law enforcement officers.
A federal grand jury returned an indictment against Perkins in April 2024. The case went to trial in April 2025, and a jury found Perkins guilty. Perkins has been in the custody of the U.S. Marshals Service since his arrest in March 2024 on a federal criminal complaint.
The statutory penalties for attempted enticement of a minor include a mandatory minimum of ten years to life imprisonment, followed by a supervised release term of five years to life.
The Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant U.S. Attorneys Melissa P. Ortiz and Douglas F. McMeyer represented the government in the prosecution.
The case against Perkins was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Parkersburg Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Michael David Enoch, 33, of Parkersburg, was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on December 15, 2024, law enforcement officers encountered Enoch on a Parkersburg street and informed Enoch of an active warrant for his arrest. When Enoch reached for his waistband, officers stopped Enoch and recovered a Taurus model PT111 G2 9mm semiautomatic pistol that had been concealed in his waistband.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Enoch knew he was prohibited from possessing a firearm because of his prior felony convictions for wanton endangerment involving a firearm, escape, and receiving or transferring a stolen vehicle in Wood County Circuit Court on February 25, 2019.
Enoch has a criminal history that also includes multiple convictions for battery, domestic battery, fleeing from an officer, battery on a government representative, and violation of a protective order.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Parkersburg Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
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).
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-26.
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Palm Coast Hacker Sentenced to 10 Years in PrisonRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger has sentenced Noah Michael Urban (20, Palm Coast), a/k/a “King Bob,” “Sosa,” “Elijah,” and “Gustavo Fring,” to 10 years in federal prison for conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The court also ordered Urban to forfeit approximately $4.8 million in assets, which includes cryptocurrency and other property. Urban was also ordered to pay $13 million in restitution. Urban entered a guilty plea on April 4, 2025.
According to court documents, from August 2022 through March of 2023, Urban was involved in stealing cryptocurrency from at least 59 victims across the United States. Urban and others conducted targeted attacks called “SIM swaps,” to obtain victims’ personal identification information (PII). Once Urban obtained victims’ PII, he hacked into their cryptocurrency accounts online and stole their cryptocurrency.
During this same timeframe, Urban was also part of a group that targeted employees of companies nationwide with phishing text messages. The harvested employee credentials were then used to log in and steal non-public company data and information. The group also used stolen information obtained from victim company intrusions, leaked data sets, and other sources to gain unauthorized access to numerous individuals’ cryptocurrency accounts and wallets and steal millions of dollars of virtual currency.
The FBI served a search warrant on Urban’s residence and found evidence on Urban’s computer linking him to the victims’ email accounts and cryptocurrency wallets. In addition, cryptocurrency totaling approximately $4.8 million from the victims’ stolen accounts was found on Urban’s devices. The total loss to the victims was over $13 million.
This case was investigated by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney John Cannizzaro of the Middle District of Florida and Assistant United States Attorney Lauren Restrepo of the Central District of California.
Pensacola Felon Pleads Guilty to Drug and Firearm ChargesRead the Press Release
PENSACOLA, FLORIDA – John Cody Hawthorne, 32, of Pensacola, Florida, pleaded guilty in federal court to possession of firearms and ammunition by convicted felon, possession of a short-barreled rifle, and possession with intent to distribute controlled substances. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “I applaud the excellent work of Sheriff Chip Simmons and our federal law enforcement partners to make our community safer by getting this dangerous individual off the streets. My office remains fully committed to fulfilling the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America by targeting violent criminals with the full force of the law.”
Court documents reflect that Hawthorne, who was on state probation at the time, was in possession of multiple firearms as well as illegal narcotics. Law enforcement executed a search warrant at Hawthorne’s residence and located seven firearms in his bedroom, one of which was a short-barreled rifle, as well as over 400 live rounds of ammunition, marijuana, methamphetamine, ballistic body armor, and several thousand dollars.
Hawthorne faces up to fifteen years’ imprisonment on the possession of firearm by convicted felon count, up to ten years imprisonment on the possession of short-barreled rifle count, and up to twenty years imprisonment on the drug possession charge.
The case involved a joint investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Escambia County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.
Sentencing is scheduled for November 13, 2025, at 10:00 am at the United States Courthouse in Pensacola before United States District Judge T. Kent Wetherell, II.
This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) 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 Neighborhood (PSN).
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.
Owner of Taco Restaurants Pleads Guilty to Firearms Charge and Employing Unauthorized AliensRead the Press Release
PHOENIX, Ariz. – Blademir Angulo Audeves, 42, of Mexico, pleaded guilty on August 20, to one count of Alien in Possession of a Firearm and one count of Knowingly Employing Unauthorized Aliens. Sentencing is scheduled for October 28, 2025, before United States District Judge Humetewa.
In his plea, Audeves admitted that he owned and operated El Taqueria El Taco Loko LLC, which included a brick-and-mortar restaurant and two mobile restaurants in the Phoenix-metro area. As the owner and operator of the restaurants, Audeves knowingly hired and employed at least twelve unauthorized aliens, who were either not lawfully admitted for permanent residence to the United States or were not authorized to be employed in the United States.
Audeves, a Mexican citizen without legal authority to be in the United States, also admitted to knowingly possessing three firearms in July 2025, along with ammunition, all of which was prohibited because of his immigration status.
A conviction for Alien in Possession of a Firearm carries a maximum penalty of fifteen years of imprisonment and a maximum fine of $250,000. A conviction for Knowingly Employing Unauthorized Aliens carries a maximum penalty of six months of imprisonment and a maximum fine of $3,000 for each unauthorized alien with respect to whom such a violation occurs.
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 Neighborhood (PSN).
Homeland Security Investigations is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-25-01029
RELEASE NUMBER: 2025-138_Audeves# # #
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.Orange County Man and Aspiration Partners Co-Founder Agrees to Plead Guilty to $248 Million Scheme to Defraud Investors and LendersRead the Press Release
LOS ANGELES – An Orange County man who co-founded and served as board member of the financial technology and sustainability services company formerly known as Aspiration Partners Inc., was charged today by criminal information and agreed to plead guilty to defrauding multiple investors and lenders.
Joseph Neal Sanberg, 46, of Orange, is charged with two counts of wire fraud, felonies that each carry a statutory maximum sentence of 20 years in federal prison. He has agreed to plead guilty to both counts.
Sanberg is expected to formally enter a guilty plea in the coming weeks.
“This so-called ‘anti-poverty’ activist has admitted to being nothing more than a self-serving fraudster, by seeking to enrich himself by defrauding lenders and investors out of hundreds of millions of dollars,” said Acting United States Attorney Bill Essayli. “I commend our law enforcement partners for their efforts in this case, and I urge the investing public to use caution and beware of wolves in sheep’s clothing.”
“For years, Joseph Sanberg used his position at Aspiration to deceive investors and lenders for his own benefit, causing his victims over $248 million in losses,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department's Criminal Division. “The Criminal Division is committed to pursuing, charging, and convicting fraudsters like Sanberg, who cause significant harm to their victims and undermine our financial institutions.”
“The defendant didn’t just bend the truth, he built a business on a lie to boost the company’s value and line his own pockets,” said Inspector in Charge Eric Shen of the United States Postal Inspection Service (USPIS), Criminal Investigations Group. “The Postal Inspection Service will go after this kind of calculated deception. No matter who you are, you will be brought to justice.”
“This is a case about greed and abuse of trust,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “Today’s guilty plea is a direct result of the commitment by the FBI and our law enforcement partners to hold those accountable who set out to defraud victims and undermine our financial system. The FBI will continue to work with our partners to ensure this kind of malicious behavior is investigated and stopped.”
According to court documents, beginning in 2020 and continuing into 2025, Sanberg devised a scheme to use his role as a co-founder and board member of Aspiration as well as his shares of company stock to defraud various lenders and investors.
Between 2020 and 2021, Sanberg and Ibrahim AlHusseini, both members of Aspiration’s board of directors, fraudulently obtained $145 million in loans from two lenders by pledging shares of Sanberg’s Aspiration stock. Sanberg and AlHusseini also falsified AlHusseini’s bank and brokerage statements to fraudulently inflate AlHusseini’s assets by tens of millions of dollars to secure the loans. Beginning in 2021, Sanberg also defrauded Aspiration’s investors by concealing that he was the source of certain revenue recognized by the company.
Court documents also state that Sanberg personally recruited companies and individuals to sign letters of intent with Aspiration in which they committed to pay tens of thousands of dollars per month for tree planting services. Sanberg used legal entities under his control to conceal that these payments came from Sanberg rather than from the customers. Sanberg instructed Aspiration employees not to contact the customers that he had recruited to conceal his scheme.
Aspiration booked revenue from these customers between March 2021 and November 2022, but Sanberg did not disclose that he was the source of the payments. As a result, Aspiration’s financial statements were inaccurate and reflected much higher revenue than the company in fact received. Sanberg continued to solicit investors to invest in Aspiration securities into 2025.
According to the documents, Sanberg also defrauded other lenders and investors with fraudulent materials describing Aspiration’s financial condition, including a fabricated letter from Aspiration’s audit committee that falsely stated that Aspiration had $250 million in available cash and equivalents at a time that Aspiration had less than $1 million in available cash. Sanberg used these fraudulent financial materials to obtain millions of dollars in additional loans and investments in Aspiration securities. Sanberg’s victims sustained more than $248 million in losses.
USPIS and the FBI are investigating this matter.
Assistant United States Attorneys Nisha Chandran of the Major Frauds Section and Jenna Williams of the Transnational Organized Crime Section and Justice Department Trial Attorneys Theodore Kneller and Adam L.D. Stempel of the Criminal Division’s Fraud Section are prosecuting this case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
Ohio Siblings Sentenced for Laundering $784,045 in Drug ProceedsRead the Press Release
An Ohio brother and sister were sentenced to federal prison for their roles in collecting drug proceeds in the United States and laundering those funds, or their equivalent value, back to Mexico on behalf of a cartel.
According to court documents, Christopher Grover Reynolds, 52, of Toledo, Ohio, was sentenced to over six years in prison, and his sister, Claudette Reynolds, 51, of Toledo, was sentenced to two years in prison for their participation in a money laundering conspiracy. They were both sentenced to three years of supervised release.
“The defendants helped Mexican drug traffickers collect and disguise the profits from selling methamphetamine and fentanyl in Toledo,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Their money laundering activities fueled the importation of dangerous drugs into the Midwest. This prosecution reflects the Criminal Division’s commitment to staunch the flow of cash to cartels and protect communities from the devastating consequences of drug trafficking.”
“Money launderers like the Reynolds are critical links in the cartel’s drug trafficking chain,” said Acting U.S. Attorney Paul McCaffrey. “We are grateful for the tireless efforts of our law enforcement partners in working to disrupt and dismantle that chain.”
“Every dollar they laundered was done so on the backs of overdose victims and their families,” said Special Agent in Charge Jim Scott, head of DEA’s Louisville Division. “By acting as the cartel’s bankers, these siblings helped fuel the fentanyl and meth crisis tearing through Ohio. DEA will hunt down anyone who dares to wash cartel money — because if you launder blood money for drug traffickers, you will face justice alongside them.”
According to court documents, Christopher Reynolds collected proceeds from the sale of fentanyl, methamphetamine, and marijuana in Toledo and notified a Mexico-based cartel that the funds were ready for laundering and transfer to Mexico. On six occasions, Reynolds personally delivered the money – totaling $784,045 – or enlisted his sister to do so. The money was later transferred to Mexico via cryptocurrency.
A search of Christopher Reynolds’s residence and a traffic stop of Claudette Reynolds led to a seizure of $184,415 in bulk cash, several pounds of marijuana, counterfeit pills containing methamphetamine and fentanyl, two firearms (a .40 caliber pistol and an AR-15 rifle), and a money counting machine.
The DEA Lexington Resident Office investigated the case, working closely with the Detroit Field Division and Rocky Mountain Field Division and assisted by DEA offices in Mexico, Toledo, Minneapolis, St. Louis, Birmingham, Chicago, Cincinnati, Tulsa, Oklahoma City, Louisville, Baltimore, Des Moines, Milwaukee, Portland, Columbia, and Rapid City, with the IRS Criminal Investigation Division.
Trial Attorney Elizabeth R. Rabe of the Criminal Division’s Money Laundering and Asset Recovery Section and Deputy Criminal Chief Gary Todd Bradbury of the U.S. Attorney’s Office for the Eastern District of Kentucky prosecuted this case.
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 other transnational criminal organizations 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 and Project Safe Neighborhoods.
Ohio Siblings Sentenced for Laundering $784,045 in Drug ProceedsRead the Press Release
LEXINGTON, Ky. – An Ohio brother and sister, Christiopher Grover Reynolds, 52, of Toledo, Ohio, and Claudette Reynolds, 51, were sentenced on Thursday by U.S. District Judge Karen Caldwell to 37 months, for their roles in collecting drug proceeds in the United States and laundering those funds, or their equivalent value, back to Mexico on behalf of a cartel.
According to court documents, Christopher Reynolds collected proceeds from the sale of fentanyl, methamphetamine, and marijuana in Toledo and notified a Mexico-based cartel that the funds were ready for laundering and transfer to Mexico. On six occasions, Reynolds personally delivered the money – totaling $784,045 – or enlisted his sister to do so. The money was later transferred to Mexico via cryptocurrency.
A search of Christopher Reynolds’s residence and a traffic stop of Claudette Reynolds led to a seizure of $184,415 in bulk cash, several pounds of marijuana, counterfeit pills containing methamphetamine and fentanyl, two firearms (a .40 caliber pistol and an AR-15 rifle), and a money counting machine.
Under federal law, Christopher Reynolds and Claudette Reynolds must serve 85 percent of their prison sentence. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for three years.
“The defendants helped Mexican drug traffickers collect and disguise the profits from selling methamphetamine and fentanyl in Toledo,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Their money laundering activities fueled the importation of dangerous drugs into the Midwest. This prosecution reflects the Criminal Division’s commitment to staunch the flow of cash to cartels and protect communities from the devastating consequences of drug trafficking.”
“Money launderers like the Reynolds are critical links in the cartel’s drug trafficking chain,” said Acting U.S. Attorney Paul McCaffrey. “We are grateful for the tireless efforts of our law enforcement partners in working to disrupt and dismantle that chain.”
“Every dollar they laundered was done so on the backs of overdose victims and their families,” said Special Agent in Charge Jim Scott, head of DEA’s Louisville Division. “By acting as the cartel’s bankers, these siblings helped fuel the fentanyl and meth crisis tearing through Ohio. DEA will hunt down anyone who dares to wash cartel money — because if you launder blood money for drug traffickers, you will face justice alongside them.”
The DEA Lexington Resident Office investigated the case, working closely with the Detroit Field Division and Rocky Mountain Field Division and assisted by DEA offices in Mexico, Toledo, Minneapolis, St. Louis, Birmingham, Chicago, Cincinnati, Tulsa, Oklahoma City, Louisville, Baltimore, Des Moines, Milwaukee, Portland, Columbia, and Rapid City, with the IRS Criminal Investigation Division.
Trial Attorney Elizabeth R. Rabe of the Criminal Division’s Money Laundering and Asset Recovery Section and Deputy Criminal Chief Gary Todd Bradbury of the U.S. Attorney’s Office for the Eastern District of Kentucky prosecuted this case.
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 other transnational criminal organizations 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 and Project Safe Neighborhoods.
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