ANDERSON, S.C. — Tyler Michael Berlick, 36, of Muskego, Wisconsin, has been sentenced to 30 years in federal prison after pleading guilty to production of child sexual abuse materials.
Evidence presented to the court showed that Berlick met a girl he believed to be 13 years old located in Greenville, South Carolina in an online game. He sent the child sexually explicit messages and produced sexual abuse materials of the child over the internet. Berlick also traveled from Wisconsin to South Carolina and engaged in sexual activity with the child and then traveled with the minor to Florida and further engaged in sexual activity with the child.
“This defendant targeted and exploited someone he knew was a child, and this sentence reflects magnitude of such an offense,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “This child was brought home safely due to law enforcement coordination across multiple states. Our office will continue to bring every resource we have to bear in the fight to keep our child safe from predators like this.”
“The FBI is steadfast in its commitment to combating violent crime, especially cases involving the exploitation of children,” said Steve Jensen, Special Agent in Charge of the FBI Columbia field office. “This defendant, preyed on a child, and he is now facing justice. The FBI and our law enforcement partners will always prioritize safeguarding children and pursuing those who pose a threat to their safety.”
United States District Judge Timothy M. Cain sentenced Berlick to 360 months imprisonment, to be followed by a lifetime of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice 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, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the FBI Columbia field office, the Greenville County Sheriff’s Office, the FBI Miami Field Office, the Latana Police Department (Florida), the Monroe County Sheriff’s Office (Florida) and the Waukesha County Sheriff’s Department (Wisconsin). Assistant U.S. Attorney Winston Marosek is prosecuting the case.
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* The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child. The Associated Press Stylebook also discourages use of the phrase “child pornography.”
Source: The Conversation – USA – By Joseph Patrick Kelly, Professor of Literature and Director of Irish and Irish American Studies, College of Charleston
Donald Trump is the third U.S. president to pardon a large group of insurrectionists. His clemency toward those convicted of crimes related to the Jan. 6, 2021, insurrection – including seditious conspiracy and assaults on police officers – was different in key ways from the two previous efforts, by Andrew Johnson in 1868 and Ulysses S. Grant in 1873.
But they share the apparent hope that their pardons would herald periods of national harmony. As historians of the period after the Civil War, we know that for Johnson and Grant, that’s not what happened.
Further, as a Southerner, he wanted to maintain the social conventions and economic structure of the South by replacing enslavement with economic bondage. This economic bondage, called sharecropping, was a system by which tenant farmers rented land from large landowners. Tenants rarely cleared enough to pay their costs and fell into debt. In effect, Johnson sought to restore the nation to how it was before the Civil War, though without legalized slavery – and sought every avenue available to thwart the plans of the Radical Republicans who controlled both houses of Congress to create full racial equality.
Johnson signed an amnesty that gave a blanket pardon to all former Confederate soldiers. However, he required formerly high-ranking Confederate officials to individually seek pardons for their involvement in the rebellion. These officials faced permanent disfranchisement and could not hold federal office if they did not seek a pardon.
When Congress was in recess, Johnson vetoed two bills that had been passed: one to help find homes for formerly enslaved people who could no longer live on the property of their enslavers, and the other to define U.S. citizenship and ensure equal protection of the laws for Black people as well as white people.
Johnson also told Southern states not to ratify the 14th Amendment, whose purpose was to enshrine both citizenship and equal protection in the Constitution.
In 1986, the Ku Klux Klan marched through the streets of Pulaski, Tenn., to protest the national celebration of Martin Luther King Jr.’s birthday. AP Photo/Mark Humphrey
The rise of the KKK
Nathan Bedford Forrest was not covered by Johnson’s general amnesty. As a former Confederate general, he had to apply for a personal presidential pardon, which Johnson granted on July 17, 1868. Two months later, Forrest represented Tennessee at the Democratic Party’s national convention in New York City.
After his pardon, Forrest perfected a rhetorical technique for his extremism. His biographer Court Carney described it as a multistep process, starting with, “Say something exaggerated and inflammatory that plays well with supporters.” Then, deny saying it “to maintain a semblance of professional decorum.” Then, blur the threats with “crowd pleasing humor.” It proved an effective way of threatening violence while being able to deny responsibility for any violence that occurred.
Nathan Bedford Forrest, center, in a Confederate uniform, joins a caricature of an Irish immigrant, left, and Democratic Party chairman August Belmont in trampling the rights of a Black Union veteran, depicted lying on the ground. Thomas Nast, Harper’s Weekly, 1868.
Under Forrest’s leadership, membership in the violent, racist Ku Klux Klan spread almost everywhere in the South. Records are sketchy, so it’s impossible to say how many people were lynched, but the Equal Justice Initiative has documented 2,000 lynchings of Black Americans during Reconstruction. Black women and girls were often raped by klansmen or members of its successor militias.
It’s also not possible to say how many pardoned ex-Confederates participated in the lynchings. But the violence was so widespread that just about everyone, North and South, thought the political violence was a resumption of the Civil War.
In the Piedmont of the Carolinas, klan violence amounted to a shadow government of white nationalists. Grant ordered the U.S. Army to apprehend the klansmen, and a newly minted Department of Justice prosecuted the insurrectionists for violating civil rights guaranteed by the 14th and 15th amendments. After several trials that proved to be what the federal judiciary’s official history calls “dramatic spectacles,” federal judges handed down conviction after conviction.
The federal government’s decisive action allowed for a relatively free presidential election in 1872. Black voters helped Grant win in eight Southern states, contributing to his landslide victory.
But after his reelection, Grant appointed a new attorney general, who dropped the pending klan cases. Grant also pardoned klansmen who had already been convicted of crimes.
Grant hoped his gesture would encourage Southerners to accept the nation’s new birth of freedom.
It didn’t. The pardons told former Confederates that they were winning.
John Christopher Winsmith, an ex-Confederate who embraced racial equality and whose father had been killed by the KKK, wrote to Grant in 1873, “A few trials and convictions in the U.S. Courts, and then the pardoning of the criminals” had emboldened what he called “the hideous monster – Ku Kluxism.”
And a new gang arose, too: the Red Shirts, who began to murder Black people openly, not even in secret as the klan did. Two of the Red Shirts were later elected to the U.S. Senate.
The federal government took no substantive action against this for a century, until the 20th century’s Civil Rights Movement sparked change. And it wasn’t until 2022 that Congress passed an anti-lynching bill.
I was for several years a volunteer with the Charleston County (SC) Democratic Party.
David Cason does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
Source: United States Department of Justice (National Center for Disaster Fraud)
MIAMI – Angelo Stephen, a Federal Bureau of Prisons (BOP) Correctional Officer, and George Arestuche, a Miami-Dade County Aviation Department employee, have pled guilty to federal charges in separate federal cases for defrauding Covid-19 pandemic relief programs.
Stephen pled guilty this week before Chief U.S. District Judge Cecila M. Altonaga to wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). He also admitted to wire fraud for his participation in two bank account takeover schemes.
Arestuche pled guilty to conspiracy to commit wire fraud in connection with his receipt of one EIDL and one EIDL advance. Senior U.S. District Judge Paul C. Huck accepted Arestuche’s guilty plea this week.
Angelo Stephen
During his change of plea hearing, Stephen admitted that in an EIDL application he submitted to the Small Business Association (SBA), he falsely claimed to be an independent contractor and sole owner of a 10-employee business that did event planning and entertainment services. He also admitted that in this EIDL application, he falsely certified that for the applicable 12-month period, his business had gross revenues of approximately $62,018 and a cost of goods sold of $0. Stephen obtained from the SBA $20,000 in EIDL funds, to which he was not entitled.
Stephen also admitted at the change of plea hearing that he submitted false information in two PPP loan applications. In both applications (one submitted in April 2021, the second a month later), Stephen falsely claimed that he owned a business that grossed $106,554 in income in 2020, submitting a fake IRS Form 1040 Schedule C to support his fraudulent requests. Stephen received separate $20,833 PPP loans from two different SBA-approved lenders for the non-existent business.
Finally, at the change of plea, Stephen also admitted his role in two bank account takeover schemes. On March 30, 2023, after his first scheme, Stephen received a $20,000 wire transfer from the account of an unsuspecting victim in Virginia, and thereafter quickly withdrew all illegally obtained money through a series of cash withdrawals and through Zelle transfers to others. In the second takeover scheme, Stephen and his accomplices obtained new checks from the credit union account of a different unsuspecting victim. Stephen then used one of those checks to obtain $8,500 in cash that he was not entitled to.
Stephen is scheduled for sentencing on May 22, 2025, at 8:30 a.m. before Chief U.S. District Judge Altonaga in Miami, Florida, where he faces a possible maximum sentence of up to 20 years in prison.
George Arestuche
According to the facts admitted at his change of plea, George Arestuche and a co-conspirator devised a scheme to defraud the SBA by submitting a false and fraudulent application to allow Arestuche to fraudulently obtain an EIDL loan in exchange for Arestuche paying the co-conspirator a large fee.
To carry out this conspiracy, on July 9, 2020, Arestuche’s submitted to the SBA a false and fraudulent EIDL application on Arestuche’s behalf claiming that Arestuche was an independent contractor and the 100% owner of an “Automotive Repair” business operating under the legal and DBA name “george.” That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, “george” had gross revenues of $600,000, a cost of goods sold of $184,000, and 10 employees. In reality, Arestuche was not an independent contractor and did not own any type of business. This EIDL application was supported by a fraudulent 2019 IRS Form 1040 and Schedule C in Arestuche’s name that falsely claimed that he had a “mechanic” business that had gross receipts of $725,000 and earned a net profit of $706,151. As a result of this false and fraudulent EIDL application, Arestuche obtained from the SBA $149,900 in EIDL proceeds and a $10,000 EIDL advance, and he subsequently paid his co-conspirator $17,275 for helping him fraudulently obtain this money from the SBA.
Arestuche is scheduled for sentencing on May 12, 2025, at 11:00 a.m. before Senior U.S. District Judge Paul C. Huck in Miami, where he faces a possible maximum sentence of up to 5 years in prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Andrew Hartwell of the Department of Justice Office of Inspector General’s Fraud Detection Office (DOJ-OIG), Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, Acting Special Agent in Charge Brett Skiles of the FBI, Miami Field Office, and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG) announced the guilty pleas.
DOJ-OIG and SBA-OIG investigated the Stephen case. SBA-OIG and the FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, investigated the Arestuche case.
Assistant U.S. Attorney Edward N. Stamm is prosecuting both cases. Assistant U.S. Attorney Annika Miranda is handling forfeiture matters on the Stephen case while Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling forfeiture matters on the Arestuche case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 25-cr-20014 and 25-cr-20001.
Source: US State of California Department of Justice
Files Lawsuit Against Federal Government to Stop Mass Firing of Probationary Employees
OAKLAND — California Attorney General Rob Bonta today filed a lawsuit challenging numerous federal agencies for conducting an illegal mass firing of federal probationary employees. In today’s lawsuit, 20 attorneys general argue that the Trump Administration’s Office of Personnel Management’s directive to agencies to terminate probationary employees en masse to reduce the size of the federal workforce exceeds any statutory authority granted by Congress. The lawsuit seeks to immediately halt further firings and reinstate unlawfully terminated federal employees while litigation proceeds.
“The Trump Administration’s sweeping mass firing of probationary federal employees is simply unlawful,” said Attorney General Bonta. “Not only is the administration breaking the law, while they claim these actions are necessary to ‘curb waste and inefficiency,’ the reality is that abrupt and indiscriminate terminations will lead to increased operation disruptions, higher rehiring costs, and long-term financial burdens on taxpayers. This reckless directive has inflicted chaos and harmed federal workers who are key contributors to our economy and provide critical services that affect the everyday lives of Californians, from offering support for veterans and farmers, to protection of our cherished national parks and lands. I won’t stand idly by as the President attempts yet another unlawful power grab. I am proud to file this lawsuit with my fellow attorneys general across the nation to reinstate unlawfully terminated federal employees and halt further firings.”
Nationally, there are more than 5.1 million federal workers. Nearly all federal employees serve a one-or two-year probationary period, and more than 200,000 are on probationary status across the federal government. In California, numerous federal employees serve in critical roles across key agencies including the Department of Veterans Affairs, the Department of Agriculture, the National Park Service, and the U.S. Forest Service, among others.
The abrupt, pretextual termination of federal employees is not only unlawful but also disrupts essential government services and has far reaching economic effects. Specifically, in California, federal employees heavily contribute to our economy by paying state income taxes and generating substantial local revenue. This unlawful reduction in workforce has already caused a 149% increase in state unemployment benefit claims by federal workers and will inevitably impact small businesses through decreased consumer spending and decline in demand. This callous decision not only fuels broader economic uncertainty but directly contradicts yet another of the President’s empty promises to “immediately bring prices down, starting on day one” of his presidency.
In the complaint, the attorneys general allege that the Trump Administration’s failure to comply with Reduction in Force (RIF) procedures was arbitrary and capricious, not in accordance with law, and in violation of the federal Administrative Procedures Act. These critical protections ensure that workers and impacted communities receive advance notice of mass layoffs to blunt the disruptions they cause for the affected personnel and their communities and also ensure that personnel such as military veterans are given preference in retaining their jobs.
When a RIF results in a layoff of 50 or more employees, the agency must generally give at least 60 days’ advance notice to state governments, so they can provide vital “rapid response” information, resources, and services to affected workers. The federal agencies named in the lawsuit failed to provide any advance notice to California, causing significant expense and burden on the state as it scrambles to respond to the sudden mass layoffs of its residents. In the month of February 2025, there was a 149% uptick in unemployment insurance claims filed by individuals recently terminated from federal service.
The attorneys general are seeking declaratory relief, a temporary restraining order to pause further mass firings, and preliminary and permanent injunctive relief that would reinstate unlawfully terminated federal employees and enjoin further terminations that do not follow required legal procedures.
Attorney General Bonta is joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawai‛i, Illinois, Massachusetts, Maryland, Michigan, Minnesota Nevada, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Wisconsin, and the District of Columbia in filing this lawsuit.
Source: United States Senator for New Jersey Cory Booker
WASHINGTON, D.C. – Today, U.S. Senators Cory Booker (D-NJ) and Elizabeth Warren (D-MA) led Senators Richard Blumenthal (D-CT), Adam Schiff (D-CA), and Chris Van Hollen (D-MD) in sending a letter to Attorney General Pam Bondi, raising concerns about reports that Elon Musk’s social media company “X” (formerly Twitter) is leveraging his influential position in the Trump Administration to extract revenue from advertisers and enrich himself. If Musk uses his government position to interfere with federal antitrust enforcement, allegedly threatening to stall or block an advertiser’s merger if they do not pay up, then he risks running afoul of criminal ethics laws.
In 2023, a wave of advertisers withdrew ads from X after Musk “endorsed an antisemitic post” and loosened content moderation rules in ways that increased inflammatory content on the platform, reportedly costing the company as much as $75 million in ad revenue that year.
In 2024, as Musk prepared to begin his new role in the federal government, an attorney at X allegedly demanded that the advertising conglomerate Interpublic Group “get its clients to spend more on Elon Musk’s social-media platform, or else.”
Interpublic has reportedly interpreted these communications to mean that Musk will leverage his influence over President Trump to stall or block Interpublic’s $13 billion deal to merge with advertising competitor Omnicom Group,” weaponizing federal antitrust enforcers, the Federal Trade Commission (FTC) and the Antitrust Division of the Department of Justice (DOJ).
In the first letter, the Senators raise concerns that “X officials could … be attempting to strike a quid-pro-quo deal, pressuring Interpublic to get its clients to spend a certain amount on advertising on X in exchange for directing President Trump to use his antitrust enforcement agencies to allow Interpublic’s merger with Omnicom to proceed.”
“The fear that the FTC and DOJ could be used in such a way is not unfounded. There is precedent for the Trump Administration weaponizing federal antitrust enforcers to punish his perceived opponents. During his first term, President Trump allegedly interfered with the AT&T-Time Warner merger, in which the DOJ sued to block the merger, to punish CNN for the news agency’s reporting on the President,” wrote the Senators.
The Senators request that the FTC and DOJ inform the undersigned of any attempts made by Elon Musk or his associates to interfere with federal antitrust enforcement writing, “The federal government’s antitrust enforcers should be prioritizing lowering costs for American consumers, empowering workers, and supporting small businesses. They should not be weaponized by wealthy business owners to put more money in the hands of billionaires or retaliate against American businesses.”
Additionally, in a related letter sent today, the senators urge Attorney General Pam Bondi to investigate Special Government Employee Elon Musk if he uses his government position to protect those who engage in business with him as he would risk violating criminal ethics laws.
“Musk is not above the law by virtue of being the world’s richest man,” continued the senators. “If evidence emerges that Musk is, in fact, using his official role to coerce advertisers or is participating in particular matters in which he has a financial interest, we ask that DOJ investigate the potential violation of federal ethics laws, as the Department should for any other federal employee who appears to be breaking the law.”
To read the full text of the letter, click here and here.
One Soldier Charged with Conspiring to Transmit National Defense Information to Individuals Located in China
View the indictment for Jian Zhao.
Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.
“The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”
“While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”
“We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.
“These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”
The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.
The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.
Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.
The FBI and the U.S. Army Counterintelligence Command investigated the case.
Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.
“The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”
“While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”
“We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.
“These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”
The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.
The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.
Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.
The FBI and the U.S. Army Counterintelligence Command investigated the case.
Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Source: United States Senator Ted Budd (R-North Carolina)
Washington, D.C. — A day after President Donald Trump met with eight hostages released from Gaza, U.S. Senator Ted Budd (R-NC) met privately in his office with North Carolina native Keith Siegel and his wife, Aviva. Following their private meeting, Senator Budd hosted a bipartisan group of Senators who met with recently released hostages and family members who are still awaiting the return of their loved ones.
Joining Budd for the bipartisan meeting were Senators Joni Ernst (R-IA), Richard Blumenthal (D-CT), Thom Tillis (R-NC), and Jackie Rosen (D-NV).
Former hostages Keith and Aviva Siegel, Iair Horn, Doron Steinbrecher, and Naama Levy as well as Moshe Lavi, the brother-in-law of Omri Miran, who is still being held in Gaza, told their stories and advocated for the release of the remaining 59 hostages.
In a statement, Senator Budd said:
“We rejoice in Keith’s return, but we also weep for what he and his fellow hostages endured and for what the 59 remaining hostages and their families are still enduring. For 484 days, Keith’s family, particularly his wife Aviva, his children, siblings, family and friends, worked tirelessly to secure his release.
“Our work is not over. We must continue pressuring Hamas to release the remaining hostages in Gaza, especially the five Americans. I will continue working alongside my colleagues on a bipartisan basis, with President Trump, and with world leaders until all of the hostages are home and Hamas is destroyed.”
Click here to download full resolution photos
Senator Budd has been working for the release of American hostages since October 2023:
On October 25, 2023, Senator Budd first spoke about the hostage situation in Gaza on the Senate floor, where he announced his intention “to hold all humanitarian aid to Gaza until each and every American hostage is home and is safe.”
On November 6, 2023, Senator Budd met with Qatari Ambassador Meshal Al Thani in Senator Budd’s Washington, D.C. office. In that meeting, he strongly urged the Qatari government to use their leverage on Hamas leaders currently residing in Doha to immediately release all hostages, and hold those same Hamas leaders accountable once the hostage situation is fully resolved.
On November 26, 2023, Senator Budd reacted to the release of Keith Siegel’s wife, Aviva, saying, “While we are encouraged by the government of Qatar’s efforts to mediate the release of some of the hostages, we renew our call to their government to exert pressure on Hamas leadership to release each and every hostage immediately and unconditionally.”
On November 28, 2023, Senator Budd spoke on the Senate floor and called out Qatar for its continued hosting of Hamas terrorist leaders, saying, “We need to tell our friends in Doha loudly and clearly: Qatar is accepting a significant liability with its pro-Hamas policy.”
On December 13, 2023, Senator Budd sent a holiday message of support to the hostages and their families in a speech on the Senate floor, saying, “I want every one of these family members to know that our country is behind them, we support them, and we are praying for them.”
On January 10, 2024, Senator Budd returned from a congressional delegation (CODEL) to the Middle East, which included stops in Israel, Egypt, Qatar, and Bahrain. The focus of the delegation’s meetings across the region was on securing the release of hostages.
On the trip, Senator Budd and his colleagues toured one of the communities devastated by the October 7th massacre by Hamas terrorists. He personally spoke with former hostage Aviva Siegel, and met with top Israeli officials including Prime Minister Benjamin Netanyahu and Mossad Director David Barnea.
Senator Budd then met with Egyptian President Abdel Fattah El-Sisi and the Prime Minister of Qatar, to whom Senator Budd sent a strong message that Qatar must do more to secure the immediate and safe release of all of the hostages.
On January 15, 2024, Senators Budd and Joni Ernst (R-IA) published an op-ed marking the 100th day of captivity for the hostages, writing, “As long as Americans remain captive to these barbaric thugs, the latter is the victor. Allowing Americans to suffer under the yoke of terrorists is a win for evil around the world and a boon for Iran’s proxies.”
On January 25, 2024, Senator Budd spoke on the Senate floor and delivered a sharp message to the government of Qatar: “Our patience has run out. Time is up. Either pressure Hamas leaders to release the hostages now, or expel them from your land. It’s that simple. The United States of America will be watching.”
On March 7, 2024, Senators Budd and Tillis invited the family of Keith Siegel to be their guests at the president’s State of the Union Address. Keith’s sister Lucy and niece Hanna have accepted the Senators’ invitation.
On March 15, 2024, Senator Budd joined a joint statement from Senators Ben Cardin (D-MD) and Jim Risch (R-ID), Chairman and Ranking Member of the Senate Foreign Relations Committee, as well as five other Senators stating, “If Hamas refuses reasonable negotiations, there is no reason for Qatar to continue hosting Hamas’ political office or any of its members in Doha.”
On March 26, 2024, Senator Budd and Senator Ernst issued a joint statement calling on the State of Qatar to immediately expel all members of Hamas’ political office currently residing in Doha.
On April 9, 2024, Senator Budd introduced the ‘Reviewing Qatar’s Major Non- NATO Ally Status Act’, which would require the Secretary of State to formally certify that Qatar has expelled or agreed to extradite to the United States any individuals bearing responsibility for the terror attack on October 7, 2023. If the Secretary of State cannot make this certification in good faith, then the President is required to immediately terminate the designation of the State of Qatar as a major non-NATO ally.
On April 10, 2024, Senator Budd attempted to invoke unanimous consent on the Senate floor to pass the ‘Reviewing Qatar’s Major Non- NATO Ally Status Act’, but was blocked. He said, “The time for talking is over, and the time for action is now. If we don’t see action, then Qatar must face consequences. At the end of the day, this bill represents another step towards securing the freedom of our fellow Americans.”
On May 7, 2024, Senators Budd and Ernst returned from a congressional delegation (CODEL) to the Middle East, which included stops in Israel, Iraq, Syria, and the United Arab Emirates (UAE).
On the trip, Senators Budd and Ernst received first-hand updates on the state of the hostage negotiations from top U.S. and Israeli officials including Israeli Prime Minister Benjamin Netanyahu. They also hosted the families of American hostages, including the family of North Carolina native, Keith Siegel.
On July 31, 2024, Senator Budd released a statement after Hamas’s political leader was killed, saying that it “sends a clear and resounding message to terrorists that those who kill and kidnap Americans will ultimately face justice.”
On September 1, 2024, Senator Budd released a statement condemning the Hamas murder of American hostage Hersh Goldberg-Polin along with five other Israeli hostages, saying, “This is yet another act of cold-blooded barbarism from Hamas terrorists. It must not be excused or downplayed. The U.S. government must leave no stone unturned until all those responsible for Hersh’s kidnapping and murder are brought to justice, and until we bring every American hostage home.”
On October 7, 2024, Senator Budd disclosed that the Biden administration had ignored a bipartisan request from Senator Budd and 11 other Senators to authorize a reward of up to $25 million for information that brings Hamas leaders to justice.
On October 17, 2024, Senator Budd released a statement after Israeli Defense Forces killed Yahya Sinwar, the leader of Hamas and the mastermind behind the October 7, 2023 attacks, saying, “[Sinwar] was a terrorist leader who had American blood on his hands. To the remaining Hamas leaders: release the hostages, renounce terrorism, and recognize Israel’s right to exist. There is no future for Hamas or its ideology.”
On November 8, 2024, Senator Budd joined a letter to the Department of Justice and Department of State requesting an immediate freeze on the assets of Hamas officials living in Qatar, the extradition of several senior Hamas officials currently residing in Qatar, and that Qatar end its hospitality of Hamas’ senior leadership.
On November 8, 2024, Senator Budd released a statement after the State of Qatar decided to expel the remaining Hamas terrorist leadership from Doha, calling the move, “welcome, but long overdue.”
On November 22, 2024, Senator Budd, along with Senate Armed Services Committee Ranking Member Roger Wicker and Senator Joni Ernst, released a statement calling on Turkey to extradite the Hamas terrorist leaders who fled there after being expelled from Qatar.
On December 2, 2024, Senator Budd released a statement after the Israeli Defense Forces confirmed that U.S.-Israeli citizen Omer Neutra was killed by Hamas terrorists during the October 7, 2023 attacks. His body remains in Gaza, saying in-part, “this news is further proof of the true evil of Hamas terrorists. The U.S. government must not relent until all those responsible for Omer’s murder are brought to justice, and until we bring every American hostage home.”
On February 1, 2025, Senator Budd issued a statement following the release of North Carolina Native Keith Siegel from Gaza.
PEORIA, Ill. – A Peoria, Illinois, man, Joshua Michael Williams, 43, was sentenced on March 5, 2025, to 135 months’ imprisonment for attempted enticement of a minor, to be followed by 10 years of supervised release. He also will be required to register as a sex offender.
At the sentencing hearing in front of U.S. District Judge Jonathan E. Hawley, the court was informed that in January and February 2024, Williams engaged in online chats with an individual he believed to be the stepfather of an 11-year-old female who was willing to let his stepdaughter be used for sex acts. Williams expressed an interest in meeting with the purported minor for the purpose of engaging in sexual acts and said that he had wanted to engage in sexual acts with another minor female in the past. Williams arranged to meet the daughter, and, when he arrived at the pre-arranged meeting place, he was arrested.
Williams pleaded guilty in October 2024 and has remained in the custody of the U.S. Marshals Service since his arrest.
In sentencing Williams, Judge Hawley noted that the only good thing about what happened was that there was no minor, stating that there easily could have been an 11-year-old whose life would be altered by such conduct.
The statutory penalties for attempted enticement of a minor are ten years up to life imprisonment, followed by a term of supervised release ranging from five years to life.
The Federal Bureau of Investigation, Springfield Field Office, investigated the case.
The case against Williams 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.
A Florida man was sentenced today to nine years in prison for paying a child in a foreign country to engage in a commercial sex act with him.
According to court documents, Rugh James Cline, 44, a former Florida-licensed attorney of Tampa, travelled to Cambodia and paid four Cambodian children to engage in sex acts with him on multiple occasions. Additionally, when he was arrested in Cambodia, Cline was found to be in possession of a laptop containing hundreds of images of child sexual abuse material.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Sara C. Sweeney for the Middle District of Florida, and Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office made the announcement.
The FBI investigated the case. The U.S. Department of State, Cambodian National Police, and Justice Department’s Office of International Affairs provided assistance.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Ilyssa Spergel and Courtney Derry for the Middle District of Florida prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
A Florida man was sentenced today to nine years in prison for paying a child in a foreign country to engage in a commercial sex act with him.
According to court documents, Rugh James Cline, 44, a former Florida-licensed attorney of Tampa, travelled to Cambodia and paid four Cambodian children to engage in sex acts with him on multiple occasions. Additionally, when he was arrested in Cambodia, Cline was found to be in possession of a laptop containing hundreds of images of child sexual abuse material.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Sara C. Sweeney for the Middle District of Florida, and Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office made the announcement.
The FBI investigated the case. The U.S. Department of State, Cambodian National Police, and Justice Department’s Office of International Affairs provided assistance.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Ilyssa Spergel and Courtney Derry for the Middle District of Florida prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Christopher Hagan, formerly of North Berwick, received items from an employee of a national defense contractor and employees of the Defense Logistics Agency
PORTLAND, Maine: A New Hampshire man was sentenced today in U.S. District Court in Portland for conspiring to transport stolen property in interstate commerce and conspiring to sell stolen government property.
U.S. District Judge John A. Woodcock, Jr. sentenced Christopher Hagan, 33, to 12 months plus one day in prison to be followed by three years of supervised release. He was also fined $10,000, ordered to forfeit $150,000, and will be required to refile his tax returns for five years. Hagan pleaded guilty on May 13, 2024.
According to court records, between October 2017 and September 2021, Hagan obtained stolen government items which he resold on online forums. One of Hagan’s coconspirators, Jonathan Chaisson, 34, of New Hampshire was employed by a national defense contractor based in New Hampshire and received used and/or broken Advance Target Pointer Illuminator Aiming Laser (ATPIAL) devices designated for military and law enforcement use. Chaisson stole or converted new and used parts and components to repair the ATPIALs and provided Hagan with the repaired devices to sell.
Hagan also conspired with Wade Walker, 45, and Michael Humphrey, 46, both of Texas, to steal and sell military equipment from the Defense Logistics Agency (DLA), an agency of the United States Department of Defense. Both Walker and Humphrey were employed by the DLA Red River Army Depot facility in Texarkana, Texas. On multiple dates in 2019 and in 2020, Humphrey transferred stolen government property to Walker for resale, and Walker provided the stolen property to Hagan for further resale. Through the investigation, agents determined that Hagan had at least one customer in China.
On July 24, 2023, Chaisson pleaded guilty to conspiring to transport stolen property in interstate commerce and was sentenced to probation for two years. On October 31, 2023, Humphrey pleaded guilty to conspiring to sell stolen government property and was sentenced to probation for two years. On January 8, 2024, Walker pleaded guilty to conspiring to sell stolen government property and was sentenced to probation for three years.
The United States Department of Commerce – Office of Export Enforcement and the Defense Criminal Investigative Service investigated the case with assistance from Homeland Security Investigations (HSI).
“That Mr. Hagan and his conspirators would exploit their connections to the defense industry to put their own financial gain ahead of the nation’s security is unconscionable,” said Acting U.S. Attorney Craig M. Wolff. “The U.S. Attorney’s Office commends the remarkable interagency cooperation that underpinned this complex and important investigation.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense (DoD) Office of Inspector General, is fully committed to protecting the integrity of the DoD supply chain,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office. “Profiting from the sale of stolen DoD property undermines the mission of the Defense Logistics Agency and negatively impacts our military members. This investigation demonstrates DCIS’ commitment to work with our law enforcement partners and the Department of Justice to hold accountable those who harm the DoD.”
“By stealing sensitive military technology and selling it to China, Christopher Hagan along with those he conspired with, prioritized greed and personal gain over U.S. national security,” said Special Agent in Charge James Guanci, U.S. Department of Commerce, Office of Export Enforcement, Boston Field Office. “This case serves as a strong reminder that those who betray the trust of the American people will be held accountable.”
Defendant was on Supervised Release for Possessing CSAM at Time of New CSAM Offense
MACON, Ga. – A Bryon, Georgia, resident who was serving federal supervised release for possessing child sexual abuse material (CSAM) when GBI agents caught him online downloading sexually explicit images of children less than a year after he was released from prison was sentenced for his crime and violating his federal supervision.
Clarence L. Brown, II, 46, of Byron, Georgia, was sentenced to serve 120 months in prison to be followed by ten years of supervised release by U.S. District Judge Marc T. Treadwell on March 5, after he previously pleaded guilty to possession of child pornography on Dec. 19, 2024. In addition, Brown’s supervised release was revoked in Case No. 5:22-CR-27-001 in which Brown pleaded guilty and was sentenced for one count of receipt of child pornography and one count of possession of child pornography in the Middle District of Florida. As a result, Brown was sentenced to serve ten months in prison consecutively to the above sentence to be followed by ten years of supervised release concurrently to the above sentence. Brown will have to register as a sex offender upon release from prison. There is no parole in the federal system.
“Viewing and sharing explicit images of children being sexually abused is a federal crime that our office will prosecute to the fullest extent of the law,” said Acting U.S. Attorney C. Shanelle Booker. “Holding online child predators accountable for their crimes—and in this case, their repeated crimes against children—is a high priority for our federal prosecutors and the local, state and federal law enforcement partners dedicated to protecting children.”
“Clarence L. Brown’s actions are a tragic reminder of the persistence of individuals who prey on children, despite previous consequences,” said GBI Director Chris Hosey. “The GBI remains committed to investigating and bringing to justice those who possess and distribute child sexual abuse material. We will continue to work alongside our state, federal and local law enforcement partners to protect children from these heinous crimes and hold offenders accountable.”
According to court documents and statements referenced in court, on June 8, 2021, a Georgia Bureau of Investigation (GBI) Child Exploitation and Computer Crimes Unit (CECCU) agent conducted an undercover online investigation to identify individuals downloading child sexual abuse material (CSAM, also called child pornography). That same day, task force agents identified two video files downloaded by Brown depicting CSAM involving prepubescent girls and adult males. Search warrants were executed at Brown’s residences in Byron, Georgia, on Nov. 4, 2021. Several devices were seized at the residence and underwent forensic examination. In total, agents found at least nine video files depicting the sexual abuse and exploitation of children, many of whom were younger than 12 years old. Of note, one CSAM video file had a total run time of ten minutes, and the other CSAM video file was almost 24 minutes long.
Brown was convicted for receipt of child pornography and possession of child pornography in the Middle District of Florida on July 24, 2017 (listed as Case No. 5:22-CR-27-001 in the Middle District of Georgia). Brown began his term of supervised release in that case on Nov. 25, 2020. Less than one year later, Brown was found to be in possession of child pornography in the Middle District of Georgia.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Georgia Bureau of Investigation’s Child Exploitation and Computer Crimes Unit (GBI CEACCU) with assistance from the National Center for Missing and Exploited Children (NCMEC)
Assistant U.S. Attorney Monica Daniels is prosecuting the case for the Government.
Source: United States Senator for Massachusetts Ed Markey
Letter Text (PDF)
Washington (March 6, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Environment and Public Works Committee and co-author of the original National Climate Bank Act with Senator Chris Van Hollen (D-Md.), a member of the Banking, Housing, and Urban Affairs Committee, together with Democratic Leader Chuck Schumer (D-N.Y.) and Senator Sheldon Whitehouse (D-R.I.), Ranking Member of the Environment and Public Works Committee, today called for answers from Jane Fraser, CEO of Citigroup, and Sunil Garg, CEO of Citibank North America (N.A.), on the reported freeze of federal investments made under the National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA)—programs that are part of the Greenhouse Gas Reduction Fund (GGRF) and held in Citibank N.A accounts. The affected accounts contain legally obligated federal funds appropriated in the Inflation Reduction Act aimed at powering domestic investment in low-cost clean energy and energy efficiency. The freeze appears to relate to U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin’s desire to claw back these grants. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Banking, Housing, and Urban Affairs Committee, and Senator Jeff Merkley (D-Ore.), Ranking Member of the Senate Budget Committee, also signed the letter.
In the letter the lawmakers write, “If public reporting and information obtained by Senate Environment and Public Works Committee Democrats is accurate, the federal funds in these accounts have been frozen for more than two weeks without explanation from either Citibank or the EPA. Without access to these funds, grantees will be hard pressed to cover basic operating expenses, such as payroll or rent, much less satisfy their mission of delivering cost-saving investments in underserved communities across the country. According to recent reporting, a prolonged account freeze may drive many of the nonprofit grantees to bankruptcy or default.”
The lawmakers continued, “These reports suggest that Trump DOJ and EPA officials are trying to rescind the legally obligated funding at issue by fabricating claims of financial mismanagement and launching sham investigations.”
The lawmakers request responses by March 15, 2025, to questions that include:
What NCIF, CCIA, or GGRF grantee accounts have been paused, frozen, or closed by Citibank? When did Citibank pause, freeze, or close these accounts?
Why did Citibank pause, freeze, or close grantee accounts?
If Citibank has paused, frozen, closed, or otherwise limited access to grantee accounts, what is the legal authority for doing so?
Does Citibank have plans to resume grantees’ access to, or use of, their accounts and to the federal monies contained therein?
On February 24, 2025, Senator Markey joined Senator Whitehouse and all Democratic members of the Environment and Public Works Committee in a letter to EPA demanding answers about Administrator Lee Zeldin’s illegal efforts to claw back these federal investments in the Greenhouse Gas Reduction Fund. On February 19, 2025, Senator Markey led a letter with Senators Van Hollen, Whitehouse, and Bernie Sanders (I-Vt.) to the Department of Justice regarding the forced resignation of the head of the criminal division at the U.S. Attorney’s office in the District of Columbia, Denise Cheung, after she declined to pursue an unwarranted criminal investigation that would have frozen accounts with federal funds held at Citibank.
Senator Markey secured numerous provisions in the Inflation Reduction Act, including the creation of a $27 billion national climate financing network based on his National Climate Bank Act. Following the passage of the Inflation Reduction Act in 2022, Senators Markey and Van Hollen and Congresswoman Debbie Dingell (MI-06), the House lead on the climate financing legislation, welcomed the launch of the Greenhouse Gas Reduction Fund in April 2023.
The global illicit drugs trade is estimated to be worth at least half a trillion US dollars each year. Drugs such as cocaine, methamphetamine and heroin generate large revenues all along their supply chains, from where the products (and precursor materials) are grown or made – principally Colombia and Bolivia, China, Afghanistan, and the “golden triangle” of Myanmar, Laos and Thailand – to wherever the finished drugs are consumed.
Earnings in the illicit drug trade are variable. Few people will make the kind of money that once put the Mexican former cartel boss Joaquín “El Chapo” Guzmán on the Forbes list of global billionaires. But while drug “kingpins” are the industry’s biggest individual earners, they do not hold the majority of the drug money that is generated throughout the global supply chain.
Despite their frequent glamorisation in film and TV portrayals, drug cartels are basically international logistics companies. They work with distributors in different countries who deliver the drugs to regional wholesalers, who in turn supply the local retailers (dealers) who sell drugs to individuals.
Everyone along the supply chain takes their cut, with most people making much more modest incomes than the millionaire drug traffickers of narcocorrido lore. In our interviews with illicit drug entrepreneurs in the US and UK, we routinely spoke to sellers whose incomes ranged from pocket money to providing a moderately comfortable life.
Illicit drug use is damaging large parts of the world socially, politically and environmentally. Patterns of supply and demand are changing rapidly. In our longform series Addicted, leading experts bring you the latest insights on drug use and production as we ask: is it time to declare a planetary emergency?
Around 70% to 80% of the overall revenue generated by illicit drugs is shared among the many wholesale and street-level dealers in destination countries such as the UK and US, where the price per gram is at its highest. How this money moves and is used to sustain the illicit drug trade should be an important part of any worthwhile counter-narcotics strategy. But it rarely is.
Professional money launderers
The people and organisations responsible for laundering drug revenues – that is, transforming them into untraceable money that can easily be spent, or into assets that can be held or sold – often exist under the radar of law enforcement and the media.
Yet the ways illicit drug money is laundered are hardly a mystery. Techniques include wire transfers to offshore bank accounts, investments in shell companies or deposits in cash businesses, and buying foreign currencies or (to a small extent) cryptocurrencies. In addition, the straightforward physical transportation of cash across national borders is an often-used method known as a “bulk cash transfer”.
The largest players in the illicit drugs industry, such as international cartels, national distributors and large-scale wholesalers, often use professional money launderers – some of whom have seemingly reputable jobs in the financial sector. In one recent case, US financial regulators fined TD Bank US$3 billion (£2.4 billion) – a record penalty for a bank – for facilitating the laundering of millions of dollars of drug cartel money.
Over six years, more than 90% of the bank’s transactions went unmonitored, enabling “three money laundering networks to collectively transfer more than US$670 million through TD Bank accounts”. Then-US attorney general Merrick Garland commented: “By making its services convenient for criminals, [TD Bank] became one.”
Video: CBC News.
Some money laundering networks are as global as the drug supply chains they service. In June 2024, the US Department of Justice’s (DoJ) multi-year “Operation Fortune Runner” investigation saw LA-based associates of Mexico’s Sinaloa drug cartel charged with conspiring with money-laundering groups linked to a Chinese underground banking network. According to the IRS’s head of criminal investigation, Guy Ficco:
Drug traffickers generate immense amounts of cash through their illicit operations. This case is a prime example of Chinese money launderers working hand-in-hand with drug traffickers to try to legitimise profits generated by drug activities.
According to the DoJ, “many wealthy Chinese nationals” barred from transferring large amounts to the US by the Chinese government’s capital flight restrictions seek informal alternatives to the conventional banking system – including via schemes to launder illicit drug money. The DoJ explained how this works:
The China-based investor contacts an individual who has US dollars available to sell in the United States. This seller of US dollars provides identifying information for a bank account in China, with instructions for the investor to deposit Chinese currency (renminbi) in that account. Once the owner of the account sees the deposit, an equivalent amount of US dollars is released to the buyer in the United States.
Professional launderers are both creating and exploiting vulnerabilities in the global financial system. Such corruption allows suspicious transactions to occur without proper checks or oversight. This not only reduces transparency in the financial system but erodes public trust in it.
How cartels launder their money
International drug cartels and national wholesalers have a smaller markup on their transactions, compared with retailers. But because they are responsible for moving enormous quantities of illicit drugs, they still generate millions of dollars worth of revenue.
The most prolific known drug distributors in US history, Margarito Flores Jr and his twin brother Pedro, delivered billions of dollars worth of cocaine, heroin and methamphetamines to their US and Canadian wholesale clients between 1998 and 2009. They were working for Guzmán and Ismeal “El Mayo” Zambada García, then leaders of the Sinaloa cartel, as well as the Mexican Beltrán Leyva brothers whose cartel bore their surname.
Today, Margarito Flores Jr trains law enforcement across the US in the methods he and his brother used to traffic drugs and run their business. In January 2015, both men were sentenced to 14 years for drug trafficking – Margarito Flores Jr would later reach out to one of this article’s authors (R.V. Gundur) after reading his book, Trying to Make It: The Enterprises, Gangs, and People of the American Drug Trade, which includes a comprehensive account of the Flores crew’s activities.
In a subsequent interview, he told us: “My brother and I estimate that, if we added up all of the money we sent back to Mexico over the decade we sold drugs, it was probably more than US$3.5 billion.”
García Luna, who was Mexico’s highest-ranking law enforcement official from 2006 to 2012, was sentenced to nearly 40 years in prison in October 2024 after being found guilty of taking millions of dollars in bribes from the Sinaloa cartel, as well as enabling the trafficking of more than a million kilograms of cocaine into the US. Flores explained to us:
It’s important to understand that corruption impacts people at all levels of government. Our payoffs included local police and other people in the community, up to higher-positioned people in government. Lots of that money ended up funding the violent conflicts between cartels.
While there has been widespread coverage of cartel drug money being laundered through high-profile businesses and banks such as Wachovia and HSBC, Flores suggested that “the money involved in the drug trade is a lot more than anybody really can understand”. The reason for this, he said, is that it’s very hard to track the flow of hard cash via lorries, boats, planes and even drones. Flores told us:
It’s a misconception that everyone who makes a lot of money in drugs or other illegal business makes an effort to launder their money. My brother and I held much of what we earned in cash. We knew the government could eventually take everything [else].
In our study of money laundering strategies used by people involved in the illicit drug trade in the UK and US, we found that street dealers do not typically undertake sophisticated laundering processes. Rather, they spend their cash on food and other routine living expenses. One independent UK drug dealer, whose experience was typical of many, used the money earned from his cocaine sales to buy groceries and pay bills for himself and his daughter.
Spending money, even small amounts, gained through illegal activities is a money laundering offence – albeit one that is seldom prosecuted. As a result, these everyday activities that return illicit drug money to the legal economy are not well accounted for – even though the street value of drugs drives global market value estimates.
Business-savvy street dealers can earn gross revenues that approach the earnings of high-paid white-collar workers. But they must disguise their earnings’ origins before they can spend them, of course, and various tactics are used to do this.
Some dealers solicit close friends or family members to act as “strawmen”. These are people willing to put assets paid for by illicit drug money – such as cars, properties or even businesses – in their names on behalf of the dealer. Idris Elba’s character Stringer Bell in HBO’s The Wire was an accurate portrayal of someone investing in legal enterprises using illicit drug money.
A guide to Stringer Bell’s character in The Wire. Video: Just an Observation.
These strategies occur wherever illegal enterprise exists, and have done for well over a century. In the US, we interviewed wholesalers who had used family members to own houses and other properties on their behalf. This is done to mitigate against the risk of asset forfeiture should they be convicted of a crime. If an illicit enterprise can create a plausible beneficial owner who is not involved in crime, then the asset is harder to seize. This is why the Donald Trump administration’s recent suspension of beneficial owner oversight is problematic from a drug enforcement perspective.
In liberal democracies, governments cannot investigate someone’s finances simply because they are related to criminals. The dirty money that is put into their accounts can also be disguised as legitimate income making it difficult to identify, although thorough investigations may uncover it.
In the UK, we also talked to successful drug retailers who had set up local businesses in their own names. The EU’s law enforcement agency, Europol, has reported similar activities throughout Europe.
Legal businesses are a common – and often hard-to-detect – vehicle to launder drug money. Bars, clubs, gyms, and hair, nail and tanning salons can be readily set up with drug money, as large cash infusions to establish a business are often not well scrutinised. These businesses are comparatively easy to run with significant cash flows, providing suitable cover for dirty money.
For example, a beauty salon, especially one that offers high-value boutique services, could easily incorporate drug revenue into its financial accounts by reporting sales that do not occur. Tanning salons can be set up with little expense since they require only sunbeds and the rental of a property.
Along with bars, clubs and salons, construction companies and restaurants stand out as other cash-intensive businesses with high volumes of transactions – characteristics that make good fronts for laundering money.
It’s hard to spot a ‘dirty’ business
There is no surefire way to tell whether a business is a laundering front. While some may look like enterprises struggling to stay afloat, others develop into viable operations that eventually no longer need dirty money to sustain them.
Some drug dealers incorporate laundering practices within their legitimate jobs. Tradespeople such as electricians or plumbers, for example, can launder money by generating invoices for fake jobs, then reporting the income on their tax returns.
In both the UK and US, tax authorities are not charged with evaluating the veracity of the funds reported, and are generally satisfied once tax is paid. In other words, they generally trust declared income as proof of legal business activity. Moreover, they, along with the police, lack the resources to investigate these businesses for money laundering.
Through their legal businesses, many drug dealers pay significant taxes on their illegal revenue, and thus contribute to the economy.
Paying income tax effectively renders this income laundered. It can be invested and used to set up other businesses, or to purchase cars and properties without suspicion. It can also bolster credit ratings, and improve access to legal financial services such as bank loans.
Many small-time drug dealers start legal businesses in order to exit the illicit drug trade. We interviewed one cocaine dealer who had used his drug money to set up a retail electronics store; once it was successful, he stopped dealing. Similarly, the person behind a semi-legitimate nitrous oxide enterprise used his proceeds to set up a legitimate alcohol delivery service.
Through self-laundering, these modest drug dealers transform their proceeds of crime into spendable cash – and may eventually leave criminality behind altogether.
The (losing) battle against laundered money
Across the world, anti-money laundering efforts against organised criminal gangs are notoriously ineffective.
The Financial Action Task Force (FATF) – an intergovernmental organisation formed in 1999 to combat money laundering and the financing of terrorism – assesses financial regulators’ anti-money laundering controls all over the world. Countries designated as a risk that require monitoring are placed on the task force’s “grey list”, while severe, high-risk countries go on its “black list”. Being put on these lists can result in a withdrawal of international investment and implementation of sanctions by other countries.
Although developing countries have often scored badly in their assessments, there has been some progress. While Kenya remained on the grey list in 2024, for example, it was found to have strengthened its measures to tackle both money laundering and terrorist financing. In the same year, though, Lebanon was added to the grey list over concerns on both counts.
Often lost in the criminal financing narrative is the role of bulk cash transfers. Even in a world that is moving to cashless transactions, cash generally remains the primary currency of both the illicit drug trade and corruption.
The biggest and most successful drug traffickers have significant cash reserves which are used to pay workers, replace drugs that are lost or seized, accrue assets, and bribe key officials.
Reflecting on his former illicit enterprise, Margarito Flores observed: “For every kilo of cocaine or heroin or methamphetamine we sold in the US, at least a kilo of cash went back to Mexico.” For deals in Europe, Flores said: “Given the markup the further away you trade, the amount of cash sent back could be even higher – I would estimate it to be a kilo and a half.”
Flores described the ineptitude of law enforcement in policing cash that was leaving the US:
No matter how careful we were, my brother and I lost a handful of loads of drugs heading north [from Mexico into the US]. Heading south was different: we just had the money put on tractor trailers and had it driven it across the border. We never lost a dollar. That’s where politicians don’t pay enough attention. That cash lets traffickers keep doing business.
Focus on the money as well as the drugs
So long as demand for illicit drugs exists, the industry will continue – and the revenue it generates will be laundered.
We believe that to curb the drugs trade, enforcement strategies need to go beyond simply capturing drugs and focus much more on capturing the money. Governments should go after reserves held not only by drug cartels but high-level distributors, such as those who replaced the Flores twins, and also wholesalers. People like these – comparatively high earners in destination countries – are the backbone of the illicit drugs trade.
Transnational law enforcement should prioritise detecting and seizing bulk cash transfers. These high-volume proceeds underwrite the wellbeing of drug trafficking organisations. Digital tools, such as machine learning and artificial intelligence, can be developed to create new techniques to track and trace suspicious transactions, although they alone won’t solve all laundering problems.
Corruption of officials also remains a problem. Governments need to ensure their officials are well paid and sufficiently monitored in their roles – be they working in government, border control, banks, police departments or prisons. Unfortunately, the US has shirked its leadership in global anti-corruption efforts with the recent halting of the enforcement of the Foreign Corrupt Practices Act, which bans the bribing of foreign officials.
Anti-money laundering efforts need to be consistently supported and required. Lamentably, the US has undermined its anti-money laundering toolkit by suspending the enforcement of beneficial ownership information reporting requirements. Establishing beneficial ownership helps financial institutions to identify parties that are hiding their financial interests, which can be an indication of money laundering or other criminal activity.
Similarly, foreign investment in producer countries can strengthen their capacity to counter laundering by supporting intelligence infrastructure and improved training. Recent cuts to USAid and the reduction of US State Department efforts in these areas is another indication that the US will no longer lead in these domains.
As cash businesses provide an easy mechanism for cleaning money, moving to a cashless society that uses digital transactions may help ensure that money is traceable. At the same time, cryptomarkets provide a minor, but potentially increasing, pathway to hiding dirty money digitally.
Ultimately, we should recognise the decades-long “war on drugs” for what it is: a policy costing trillions of dollars that combined mass incarceration with insufficient public health investment, and which has harmed the very communities the illicit drug trade affects the most. It is a difficult balance, but the pathway forward needs to reorient the objectives regarding drugs: invest in people, then go after the money that keeps the cartels, distributors and wholesalers afloat.
To hear about new Insights articles, join the hundreds of thousands of people who value The Conversation’s evidence-based news. Subscribe to our newsletter.
Mark Berry received funding from the Dawes Trust for a prestigious PhD scholarship to undertake work that informs the contents of this article.
R.V. Gundur received funding from the Economic and Social Research Council to undertake work that informs the contents of this article. He is also a professional member of the International Compliance Association.
The authors wish to thank Margarito Flores Jr (kingpintoeducator.com) for his help with this article.
Source: United States Senator for Illinois Dick Durbin
March 06, 2025
Requesting a disciplinary investigation into Martin, SJC Dems cite multiple abuses of power by Martin
WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, led all Senate Judiciary Democrats in filing a professional misconduct complaint against Interim U.S. Attorney for the District of Columbia Ed Martin with the D.C. Bar.
In a letter to the Office of Disciplinary Counsel at the District of Columbia Court of Appeals, which handles complaints against lawyers who are barred in D.C., the Senators cite multiple abuses of power by Martin, including dismissing charges against his own client and using the threat of prosecution to intimidate government employees and chill the speech of private citizens.
The Senators begin by articulating lapses in judgment involving failures to recuse from cases involving previous clients involved in the January 6th insurrection, writing: “While in private practice, Mr. Martin appeared as defense counsel in cases related to the January 6, 2021 attack on the U.S. Capitol. On January 21, 2025, Mr. Martin personally submitted a motion to dismiss the eight felony counts and two misdemeanors against Joseph Padilla, who had already been convicted and sentenced for these charges… Similarly, Mr. Martin appeared as defense counsel for January 6 defendant William Chrestman… Mr. Martin only moved to withdraw from his representation of Mr. Chrestman on February 4, 2025… There is also evidence indicating that Mr. Martin, since his appointment as Interim U.S. Attorney, has communicated directly with January 6 defendants who were not his clients.”
The Senators continue by citing multiple threats of prosecution to intimidate government employees and chill the speech of private citizens, writing: “Since assuming the duties of Interim U.S. Attorney for the District of Columbia, Mr. Martin has also engaged in additional, repeated conduct that appears to violate Rule 8.4(d), as well as Rule 3.8’s special responsibilities for prosecutors. Specifically, Mr. Martin has made numerous extrajudicial statements that threaten prosecution with the apparent intent of intimidating government employees and chilling the speech of private citizens.”
The Senators conclude with a request for a professional misconduct investigation into Martin, writing: “Mr. Martin’s conduct not only speaks to his fitness as a lawyer; his activities are part of a broader course of conduct by President Trump and his allies to undermine the traditional independence of Department of Justice investigations and prosecutions and the rule of law. When a government lawyer, particularly one entrusted with a leadership role in the nation’s foremost law enforcement agency, commits serious violations of professional conduct, it undermines the integrity of our justice system and erodes public confidence in it. Public confidence would be further eroded if such serious misconduct is met with no consequences. Therefore, we submit this letter of complaint to respectfully request that the Office of the Disciplinary Counsel initiate an investigation and take appropriate disciplinary proceedings pursuant to Rule XI of the Rules Governing the District of Columbia Bar.”
In addition to Durbin, the letter is signed by U.S. Senators Sheldon Whitehouse (D-RI), Amy Klobuchar (D-MN), Chris Coons (D-DE), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Cory Booker (D-NJ), Alex Padilla (D-CA), Peter Welch (D-VT), and Adam Schiff (D-CA).
For a PDF copy of the complaint against Interim U.S. Attorney for the District of Columbia Ed Martin, click here.
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PITTSBURGH, Pa. – A resident of Grove City, 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 four-count Indictment named Michael William Boston, 40, as the sole defendant.
According to the Indictment, on three separate occasions between October 2022 and July 2023, Boston transported material depicting the sexual exploitation of a minor in interstate commerce. The Indictment further alleges that Boston possessed material depicting the sexual exploitation of a minor as recently on October 11, 2024.
The law provides for a maximum total sentence of up to 20 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.
Homeland Security Investigations 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.
Source: Switzerland – Department of Foreign Affairs in English
The Federal Council elected Vincenza Trivigno to the Institute Council of the Swiss Federal Institute of Intellectual Property (IPI), with effect from 1 March 2025. She replaces Nora Bertschi, the Secretary General of the Federal Department of Justice and Police (FDJP). The FDJP has decided not to be represented on the IPI’s Institute Council due to the Confederation’s corporate governance principles. Vincenza Trivigno brings varied and extensive experience in business and public administration to the Institute Council.
OLYMPIA — Washington State Attorney General Nick Brown and Rhode Island Attorney General Peter Neronha released the following statement in response to U.S. Attorney General Pam Bondi’s character attacks on prosecutors and illegal threats to fire them for their political beliefs. Brown and Neronha are both former U.S. Attorneys who worked for the U.S. Department of Justice that Bondi now oversees.
“Not only is firing someone for their political beliefs blatantly illegal, it is deeply un-American. As former DOJ attorneys, we both worked with qualified individuals of integrity, honesty and transparency, some of whom held political beliefs different from our own. An ideological purge of the Justice Department directly undermines the diversity of opinion and expertise that helps promote justice consistently across presidential administrations.
“President Trump spent his campaign openly threatening to weaponize the Justice Department; an institution that we were proud to work for. Attorney General Bondi’s intent to ‘find’ and ‘root out’ DOJ employees whose personal views don’t align with the president’s make plain that she is willing to dismantle American principles of justice to satisfy a lawless president. Those of us who still believe in the rule of law, at every leadership level, must come together to protect the Constitution, because it is abundantly clear that this administration seeks to disregard it.”
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Washington’s Attorney General serves the people and the state of Washington. As the state’s largest law firm, the Attorney General’s Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington’s 39 counties. Visit www.atg.wa.govto learn more.
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A New York woman pleaded guilty today for her role in a deadly human smuggling conspiracy that left a family of four, including two children under the age of three, dead in the St. Lawrence River.
According to court documents, Janet Terrance, 45, of Hogansburg, conspired with five others to bring Indian and Romanian nationals into the United States for private financial gain. Co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of Akwesasne-Mohawk, New York, entered guilty pleas on Jan. 23, 2025, and Oct. 8, 2024, respectively.
“The defendant and her coconspirators — fueled by greed, indifference, and recklessness — smuggled aliens via vehicle and boat across the U.S.-Canada border in dangerous weather conditions,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “They endangered the lives of two small children and their parents for profit, resulting in the family’s tragic deaths. Dismantling transnational criminal organizations that smuggle people into and throughout the United States is a top priority for the Department of Justice.”
“A family of four died because a smuggling organization put them in harm’s way for profit,” said Acting U.S. Attorney Daniel Hanlon for the Northern District of New York. “Our top priority is the prosecution and dismantling of smuggling organizations. By securing our northern border, we aim to avoid more tragedies like this one.”
According to court documents, Terrance, Montour, and Sharrow worked with a human smuggling organization (HSO) on the Akwesasne Mohawk Indian Reservation (AMIR) and in Cornwall, Ontario, Canada, that smuggled aliens from mainland Cornwall to Cornwall Island, and then into northern New York. The HSO routinely smuggled aliens from various countries into the United States. The HSO arranged for aliens to stay in local motels in Cornwall before transporting the aliens to the AMIR to stage the aliens on the banks of the St. Lawrence River. Members of the HSO would then transport the aliens by boat across the St. Lawrence River to later be driven into New York.
Terrance, Montour, and Sharrow admitted in their plea agreements that in late March 2023, the co-conspirators were employed to illegally transport a Romanian family of four — mother, father, one-year-old boy, and two-year-old girl — from Cornwall into New York. The children were Canadian citizens. Both Montour and Terrance admitted that they were hired to transport the Romanian family to the AMIR from mainland Cornwall.
Montour admitted that he was aware of the dangerous weather conditions on March 29, 2023 — high winds, freezing temperatures, and limited visibility — yet the family of four was loaded into a small boat by another co-conspirator to cross the St. Lawrence River. The boat capsized, and the family died as a result.
“The tragic deaths of two innocent, unknowing toddlers and their parents underscores the devastating impacts of alien smuggling,” said Special Agent in Charge Erin Keegan of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Buffalo. “Janet Terrance and her co-conspirators moved forward with this smuggling attempt despite the dangerous conditions and sheer illegality of the act, placing these victims in the situation that ultimately killed them. ICE HSI Massena is committed to enforcing U.S. laws at our border to protect the safety and the security of our communities.”
“The Akwesasne Mohawk Police Service is dedicated to keeping our community safe,” said Acting AMPS Chief Ranatiiostha Swamp. “By working closely with Homeland Security on this investigation, we are enhancing efforts to combat human smuggling and cross-border illegal activity, ensuring the safety and security of our territory.”
Montour pleaded guilty to one count of conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain, and three counts of alien smuggling resulting in death. Montour faces a maximum penalty of 10 years in prison on each of the conspiracy and alien smuggling for financial gain counts and a mandatory penalty of life in prison on the alien smuggling resulting in death counts.
Sharrow and Terrance pleaded guilty to two counts and one count of conspiracy to commit alien smuggling, respectively, and each to four counts of alien smuggling for financial gain. They each face a maximum penalty of 10 years in prison on the conspiracy counts and two of the alien smuggling for financial gain counts and a mandatory minimum of five years and maximum penalty of 15 years in prison on two of the alien smuggling for financial gain counts.
A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center, New York State Police, Canada Border Services Agency, AMPS, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police, and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests.
Trial Attorney Jenna E. Reed of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Source: Federal Bureau of Investigation (FBI) State Crime News
McALLEN, Texas – A federal grand jury has returned an indictment charging 12 illegal aliens for assaulting two federal correctional officers in January 2025, announced U.S. Attorney Nicholas J. Ganjei.
All are expected to make their initial appearances before U.S. Magistrate Judge Juan F. Alanis at 9 a.m.
Those charged include Mexican nationals Bryan Hernandez-Ruiz, 25, Francisco Antonio Hernandez-Mora, 27, Ivan Ramirez-Zapata, 40, Adrian David Guzman-Salas, 28, David Ramirez-Bautista, 21, Roberto Fabian Garza-Castaneda, 49, Jose Alberto Resendez-Hernandez, 27, Jose Ramos-Lerma, 45, Ruben Gonzalez-Balderas, 29, and Oscar Ambrocio Hernandez, 25, as well as Osman Joel Hernandez-Pavon, 22, and Roger Emmanuel Lemus, 42, both of Guatemala.
The charges allege that all 12 men aided and abetted the assault of two federal corrections officers at the East Hidalgo Detention Center in La Villa.
“The Department of Justice has zero tolerance for violence against law enforcement officers,” said Ganjei. “The grand jury has returned an indictment that alleges a serious attack on two corrections officers, and, rest assured, the Southern District of Texas will hold accountable all those found guilty.”
If convicted, each face up to eight years in federal prison and a possible $250,000 maximum fine.
All have been and will remain in custody.
FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorneys Laura Garcia and Avery Benitez prosecuted the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
A New York woman pleaded guilty today for her role in a deadly human smuggling conspiracy that left a family of four, including two children under the age of three, dead in the St. Lawrence River.
According to court documents, Janet Terrance, 45, of Hogansburg, conspired with five others to bring Indian and Romanian nationals into the United States for private financial gain. Co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of Akwesasne-Mohawk, New York, entered guilty pleas on Jan. 23, 2025, and Oct. 8, 2024, respectively.
“The defendant and her coconspirators — fueled by greed, indifference, and recklessness — smuggled aliens via vehicle and boat across the U.S.-Canada border in dangerous weather conditions,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “They endangered the lives of two small children and their parents for profit, resulting in the family’s tragic deaths. Dismantling transnational criminal organizations that smuggle people into and throughout the United States is a top priority for the Department of Justice.”
“A family of four died because a smuggling organization put them in harm’s way for profit,” said Acting U.S. Attorney Daniel Hanlon for the Northern District of New York. “Our top priority is the prosecution and dismantling of smuggling organizations. By securing our northern border, we aim to avoid more tragedies like this one.”
According to court documents, Terrance, Montour, and Sharrow worked with a human smuggling organization (HSO) on the Akwesasne Mohawk Indian Reservation (AMIR) and in Cornwall, Ontario, Canada, that smuggled aliens from mainland Cornwall to Cornwall Island, and then into northern New York. The HSO routinely smuggled aliens from various countries into the United States. The HSO arranged for aliens to stay in local motels in Cornwall before transporting the aliens to the AMIR to stage the aliens on the banks of the St. Lawrence River. Members of the HSO would then transport the aliens by boat across the St. Lawrence River to later be driven into New York.
Terrance, Montour, and Sharrow admitted in their plea agreements that in late March 2023, the co-conspirators were employed to illegally transport a Romanian family of four — mother, father, one-year-old boy, and two-year-old girl — from Cornwall into New York. The children were Canadian citizens. Both Montour and Terrance admitted that they were hired to transport the Romanian family to the AMIR from mainland Cornwall.
Montour admitted that he was aware of the dangerous weather conditions on March 29, 2023 — high winds, freezing temperatures, and limited visibility — yet the family of four was loaded into a small boat by another co-conspirator to cross the St. Lawrence River. The boat capsized, and the family died as a result.
“The tragic deaths of two innocent, unknowing toddlers and their parents underscores the devastating impacts of alien smuggling,” said Special Agent in Charge Erin Keegan of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Buffalo. “Janet Terrance and her co-conspirators moved forward with this smuggling attempt despite the dangerous conditions and sheer illegality of the act, placing these victims in the situation that ultimately killed them. ICE HSI Massena is committed to enforcing U.S. laws at our border to protect the safety and the security of our communities.”
“The Akwesasne Mohawk Police Service is dedicated to keeping our community safe,” said Acting AMPS Chief Ranatiiostha Swamp. “By working closely with Homeland Security on this investigation, we are enhancing efforts to combat human smuggling and cross-border illegal activity, ensuring the safety and security of our territory.”
Montour pleaded guilty to one count of conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain, and three counts of alien smuggling resulting in death. Montour faces a maximum penalty of 10 years in prison on each of the conspiracy and alien smuggling for financial gain counts and a mandatory penalty of life in prison on the alien smuggling resulting in death counts.
Sharrow and Terrance pleaded guilty to two counts and one count of conspiracy to commit alien smuggling, respectively, and each to four counts of alien smuggling for financial gain. They each face a maximum penalty of 10 years in prison on the conspiracy counts and two of the alien smuggling for financial gain counts and a mandatory minimum of five years and maximum penalty of 15 years in prison on two of the alien smuggling for financial gain counts.
A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center, New York State Police, Canada Border Services Agency, AMPS, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police, and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests.
Trial Attorney Jenna E. Reed of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
ALEXANDRIA, La. – An investigation by U.S. Immigration and Customs Enforcement has resulted in a one-year sentence for passport fraud for Jorge Antonio Velez-Lopez, a 69-year-old Columbian national, former archdiocese priest and convicted child molester, Feb. 28. Velez was also civilly denaturalized as a U.S. citizen and ordered removed from the United States.
Velez entered the U.S. in 2003 as a temporary religious worker. Velez applied for permanent residency May 15, 2007, to U.S. Citizenship and Immigration Services and stated under penalty of perjury that he had never knowingly committed any crime of moral turpitude. He was granted permanent residency Nov. 6, 2007.
Velez applied for naturalization March 11, 2013, to Citizenship and Immigration Services and stated under penalty of perjury that he had never committed a crime for which he had not been arrested, that he had never given false or misleading information to any U.S. government official while applying for an immigration benefit, and that he had never lied to any U.S. government official to gain entry or admission to the U.S.
Velez was interviewed May 23, 2013, by a Citizenship and Immigration Services officer and provided the same responses to the same questions while under oath and penalty of perjury. He was naturalized as a U.S. citizen on May 29, 2013.
Velez submitted a passport application Sept. 27, 2013, and declared under penalty of perjury that he had not included any false documents in support of the application.
Velez was arrested Feb. 19, 2020, by local authorities in Howard County, Maryland, and charged with five counts of third-degree sex offense and one count of fourth-degree sex offense. He pled guilty May 14, 2021, to sexual abuse of a minor for whom he had temporary responsibility for supervising, in violation of Maryland Criminal Code, and was sentenced to a term of imprisonment of nine years and ordered to register as a sex offender for life.
Velez confessed to having sexually abused the victim from June 2003 through June 2009 while serving as the child’s priest.
“Child molesters like Velez who lied about their crimes to become citizens thought they could hide behind those who earned what they stole,” said ICE Enforcement and Removal Operations New Orleans acting Field Office Director Scott Ladwig. “They thought ICE would have to search through thousands of records to find them. They were right. That’s exactly what we did. ICE and our partners will relentlessly defend the integrity of our nation’s naturalization process.”
The case was investigated by ICE as part of an ongoing national initiative designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship. The operation has successfully produced criminal and civil cases against defendants convicted of murder, serial rape, child molestation, incest, sodomy, child pornography, kidnapping, sex trafficking, narcotics trafficking, money laundering, tax fraud, pill mill prescription fraud, embezzlement, aggravated identity theft, and elder abuse.
The U.S. Attorney’s Office for the Western District of Louisiana prosecuted the case with assistance from the U.S. Department of Justice’s Office of Immigration Litigation and ICE’s Office of the Principal Legal Advisor.
For more news and information on how ERO New Orleans carries out its immigration enforcement mission in Louisiana, Arkansas, Tennessee, Mississippi, and Alabama, follow us on X at @ERONewOrleans.
Seattle – A 42-year-old Mexican citizen was indicted this week for receiving images of child sexual abuse, announced Acting U.S. Attorney Teal Luthy Miller. Jamie Neri-Soto was arrested by Bothell Police detectives following an investigation prompted by reports to the National Center for Missing and Exploited Children (NCMEC). Using those cyber tips investigators were able to identify Neri-Soto as the owner of electronic devices allegedly containing images of child sexual abuse.
According to records filed in the case, in October 2024, WhatsApp alerted NCMEC that a user of its platform had uploaded images of child sexual abuse. In January 2025, the CyberTip was referred to the Bothell Police Department who immediately began work to connect the phone number and IP address to a particular individual. Working with information on the device and internet service providers, law enforcement was able to determine the location of the phone at various times and ultimately identified Neri-Soto.
Following some surveillance, Neri-Soto was arrested and taken to Bothell Police. When he was fingerprinted law enforcement learned he was a previously registered sex offender whose registration was terminated in 2017, when he was turned over to federal authorities for deportation.
Federal authorities were involved in the forensic analysis of the electronic devices Neri-Soto possessed. The cyber review allegedly found numerous images of child sexual abuse on one of the devices. Neri-Soto was charged federally by criminal complaint with receipt of images of child sexual abuse.
The grand jury returned an indictment for receipt of child pornography late yesterday.
The charges are punishable by up to twenty in prison.
Neri-Soto is scheduled for arraignment on March 13, 2025.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bothell Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.
This case was also brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice 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, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
A New York woman pleaded guilty today for her role in a deadly human smuggling conspiracy that left a family of four, including two children under the age of three, dead in the St. Lawrence River.
According to court documents, Janet Terrance, 45, of Hogansburg, conspired with five others to bring Indian and Romanian nationals into the United States for private financial gain. Co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of Akwesasne-Mohawk, New York, entered guilty pleas on Jan. 23, 2025, and Oct. 8, 2024, respectively.
“The defendant and her coconspirators — fueled by greed, indifference, and recklessness — smuggled aliens via vehicle and boat across the U.S.-Canada border in dangerous weather conditions,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “They endangered the lives of two small children and their parents for profit, resulting in the family’s tragic deaths. Dismantling transnational criminal organizations that smuggle people into and throughout the United States is a top priority for the Department of Justice.”
“A family of four died because a smuggling organization put them in harm’s way for profit,” said Acting U.S. Attorney Daniel Hanlon for the Northern District of New York. “Our top priority is the prosecution and dismantling of smuggling organizations. By securing our northern border, we aim to avoid more tragedies like this one.”
According to court documents, Terrance, Montour, and Sharrow worked with a human smuggling organization (HSO) on the Akwesasne Mohawk Indian Reservation (AMIR) and in Cornwall, Ontario, Canada, that smuggled aliens from mainland Cornwall to Cornwall Island, and then into northern New York. The HSO routinely smuggled aliens from various countries into the United States. The HSO arranged for aliens to stay in local motels in Cornwall before transporting the aliens to the AMIR to stage the aliens on the banks of the St. Lawrence River. Members of the HSO would then transport the aliens by boat across the St. Lawrence River to later be driven into New York.
Terrance, Montour, and Sharrow admitted in their plea agreements that in late March 2023, the co-conspirators were employed to illegally transport a Romanian family of four — mother, father, one-year-old boy, and two-year-old girl — from Cornwall into New York. The children were Canadian citizens. Both Montour and Terrance admitted that they were hired to transport the Romanian family to the AMIR from mainland Cornwall.
Montour admitted that he was aware of the dangerous weather conditions on March 29, 2023 — high winds, freezing temperatures, and limited visibility — yet the family of four was loaded into a small boat by another co-conspirator to cross the St. Lawrence River. The boat capsized, and the family died as a result.
“The tragic deaths of two innocent, unknowing toddlers and their parents underscores the devastating impacts of alien smuggling,” said Special Agent in Charge Erin Keegan of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Buffalo. “Janet Terrance and her co-conspirators moved forward with this smuggling attempt despite the dangerous conditions and sheer illegality of the act, placing these victims in the situation that ultimately killed them. ICE HSI Massena is committed to enforcing U.S. laws at our border to protect the safety and the security of our communities.”
“The Akwesasne Mohawk Police Service is dedicated to keeping our community safe,” said Acting AMPS Chief Ranatiiostha Swamp. “By working closely with Homeland Security on this investigation, we are enhancing efforts to combat human smuggling and cross-border illegal activity, ensuring the safety and security of our territory.”
Montour pleaded guilty to one count of conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain, and three counts of alien smuggling resulting in death. Montour faces a maximum penalty of 10 years in prison on each of the conspiracy and alien smuggling for financial gain counts and a mandatory penalty of life in prison on the alien smuggling resulting in death counts.
Sharrow and Terrance pleaded guilty to two counts and one count of conspiracy to commit alien smuggling, respectively, and each to four counts of alien smuggling for financial gain. They each face a maximum penalty of 10 years in prison on the conspiracy counts and two of the alien smuggling for financial gain counts and a mandatory minimum of five years and maximum penalty of 15 years in prison on two of the alien smuggling for financial gain counts.
A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center, New York State Police, Canada Border Services Agency, AMPS, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police, and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests.
Trial Attorney Jenna E. Reed of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.
The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.
“We will continue to hold accountable individuals and entities that accept money to steer federal health care beneficiaries to a particular laboratory for testing,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can undermine the integrity of taxpayer-funded health care programs, distort medical decisions, and result in unnecessary services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.
Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group andHussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.
“Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”
“The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”
“Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”
“The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South Carolina, North Carolina, and Texas received kickbacks from the same South Carolina laboratory.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.
“We will continue to hold accountable individuals and entities that accept money to steer federal health care beneficiaries to a particular laboratory for testing,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can undermine the integrity of taxpayer-funded health care programs, distort medical decisions, and result in unnecessary services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.
Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group andHussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.
“Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”
“The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”
“Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”
“The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South Carolina, NorthCarolina, and Texas received kickbacks from the same South Carolina laboratory.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Source: US State of California Department of Justice
OAKLAND — California Attorney General Rob Bonta today issued a consumer alert warning Californians of three popular text-based scams. These scam texts claim Californians owe past-due charges and provide fraudulent links for consumers to “resolve” the charge — the links are often a vehicle by which scammers can steal consumers’ sensitive payment data. Scammers often use the threat of a “late fee” or use words like “urgent action required” to pressure consumers into clicking the links. The California Department of Justice asks Californians to slow down and proceed with caution when faced with these types of messages.
“California, these scammers are relentless. While text-based toll charge scams remain widespread, consumers across our state are also receiving texts claiming they owe a parking ticket charge,” said Attorney General Bonta. “Bad actors are getting more sophisticated and show little signs of slowing. I urge Californians to not click on links in texts appearing to alert consumers to overdue charges, visit only official websites, and talk to friends and family who may be unaware of these dangers.”
If You Receive a Possible Scam Text:
DO NOT CLICK ON THE LINK.
File a complaint. File a complaint with the FBI, the Federal Trade Commission, and our office. Be sure to include the phone number from where the text originated and the website listed within the text.
Delete any scam texts received.
Check your account using a legitimate website.
Secure your personal information and financial accounts. Regularly check your bank and credit card statements for unauthorized transactions, especially after suspecting a scam. Dispute any unfamiliar charges.
TOLL CHARGE SCAMS
These texts claim consumers owe FasTrak express lane or toll charges, link to a website, and ask for online payment. This scam is designed to trick drivers into entering banking or credit card information into a website fraudulently claiming to represent tolling agencies.
FasTrak is the electronic toll collection system used on tolled bridges, lanes, and roads in California. It allows drivers to pay tolls electronically without having to stop at toll booths. FasTrak does not request payment by text with a link to a website. The Transportation Corridor Agencies (TCA), operator of The Toll Roads in Orange County, advises account holders to verify a valid text notification by logging into their account at thetollroads.com or through The Toll Roads app.
For all other toll agencies, please use official webpages only — you can find a list of California toll webpages below:
PARKING CHARGE SCAMS
These messages aim to scare consumers into thinking something they’ve dreaded has happened: that they’ve earned a parking ticket and have forgotten to pay it. The San Francisco Municipal Transportation Agency (SFMTA), an agency that scammers have imitated, does not request payment by text with a link to a website. For more information on paying a SFMTA parking citation, please visit SFMTA.com/PayCitation.
If you live or visit another city, please use the official website of that city or transportation agency.
PACKAGE DELIVERY SCAMS
These text messages often state that there’s an issue with your delivery and include a link to “resolve” the problem. Package delivery scams are more common over the gift giving season but can occur at any time. Delivery companies do not ask for payment to release a package or correct a delivery error — any such request is a scam.
Consider signing up for alerts from trusted carriers like UPS, FedEx, or USPS. These alerts will notify you of package updates directly from the source.
Attorney General Bonta is committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide — this includes working to put a stop to illegal and annoying robocalls, which are often a vehicle for scams. Last year, Attorney General Bonta, as part of the nationwide Anti-Robocall Multistate Litigation Task Force, joined the Federal Communications Commission (FCC) in sending a warning letter to a telecom company responsible for transmitting suspected illegal robocall traffic and issued a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election.
Charges Include a Range of Violent Assaults and Contraband Smuggling in Continued Effort by Law Enforcement to Combat Crime Inside the Prison
Today the United States Attorney’s Office for the Eastern District of New York announced criminal charges against 25 defendants in 12 separate cases relating to violence and contraband smuggling at the Metropolitan Detention Center (MDC-Brooklyn) in Sunset Park, Brooklyn. These include charges against 15 inmates for violent assaults against other inmates from May 2024 to the present; a former correctional officer for attempting to smuggle contraband into the facility on January 21, 2025; an inmate for orchestrating a contraband smuggling operation between April and June 2024; an inmate for smuggling ceramic scalpels into the facility on October 12, 2024; an inmate for possession of contraband and continuing to commit fraud while detained at MDC-Brooklyn; and an MS-13 gang associate for attempting to smuggle a large package of contraband, including 18 cellphones and marijuana, to other MS-13 gang members incarcerated at MDC-Brooklyn.
John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Kathleen Toomey, Associate Deputy Director, Federal Bureau of Prisons, announced the charges.
“The safety and security of our federal detention facilities is paramount,” stated United States Attorney Durham. “As alleged, in several separate charging instruments, inmates viciously attacked fellow detainees, a correctional officer betrayed his duty by attempting to smuggle drugs into the facility, several inmates orchestrated elaborate contraband smuggling operations and yet another inmate continued to engage in fraud schemes while detained. These actions undermine the order and security of MDC-Brooklyn and endanger everyone within its walls. My Office is working tirelessly to hold accountable those who commit violent acts or introduce contraband into the prison, whether they are inmates or staff. These charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be uncovered, and you will be held accountable.”
Mr. Durham thanked the U.S. Bureau of Prisons and the FBI New York Field Office for their investigative work in these cases, as well as the United States Attorney’s Office for the Southern District of New York and the Department of Justice, Office of Inspector General for their assistance.
“These 25 defendants, an array of inmates and a former correctional officer, allegedly committed numerous violent attacks against fellow inmates and orchestrated various schemes to smuggle contraband into the prison,” stated FBI Acting Assistant Director in Charge Backschies. “These cases reflect the alleged extreme disregard for adhering to the rules designed to protect the other inmates and correctional staff within the institution. The FBI will never tolerate any individual, regardless of their incarceration status, who engages in deviant behavior that threatens the safety and stability of our federal facilities.
“The Federal Bureau of Prisons would like to thank the FBI and the EDNY for their partnership and support to further prevent and prosecute violence and contraband in our facilities, through our unified efforts we are making our facilities safer for our employees and those in our custody,” stated Federal Bureau of Prisons Associate Deputy Director Toomey.
A summary of the cases follows:
U.S. v. Mike Josie
Mike Josie has been charged by indictment with assault in a federal detention facility in connection with his participation in an assault of another inmate at MDC-Brooklyn on May 26, 2024. As alleged, Josie brutally attacked another inmate in his housing unit who was sitting at a table in a common area of the unit. Josie approached the victim from behind and made several slashing motions towards the victim’s face. After the assault, the victim was taken to a nearby hospital to treat lacerations to his neck and face. If convicted, Josie faces up to10 years in prison. Josie is scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Assistant United States Attorney Sean Fern is in charge of the prosecution.
U.S. v. Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez
Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez are charged by complaint with conspiracy to smuggle contraband into MDC-Brooklyn. As alleged, between April and June 2024, Campbell used a contraband cell phone to conspire with others to smuggle contraband into MDC-Brooklyn. In several voice recordings found on the phone, Campbell explained his method of throwing a “line” out of a window of MDC-Brooklyn for a co-conspirator on the outside to “hook” or attach contraband, which could then be pulled back inside. On June 30, 2024, Diez, Guerrero, Mora, and Rodriguez attempted to execute Campbell’s scheme by pulling a rope through the window of the recreation room in their housing area. At the other end of that rope, correctional officers found what appeared to be suboxone, marijuana, a scalpel, a phone charger, lighters, and cigarettes. If convicted, the defendants face up to 10 years in prison. Assistant United States Attorneys Russell Noble and Elizabeth D’Antonio are in charge of the prosecution.
U.S. v. Sean Smith, Rasheed Chapman and Antwan Mosley
Sean Smith, Rasheed Chapman and Antwan Mosley have been indicted by a grand jury for the June 2, 2024 assault of another inmate at MDC-Brooklyn. The defendants violently assaulted the victim, slashing him across the face and neck and causing serious lacerations. The victim was then chased through the housing unit and struck repeatedly by his assailants. If convicted, the defendants face up to 10 years in prison. Assistant United States Attorney Kamil Ammari is in charge of the prosecution.
U.S. v. Adil Duran
Adil Duran has been charged in an indictment with assault with a dangerous weapon, assault resulting in serious bodily injury and possessing contraband in prison. As captured on video surveillance footage, on July 11, 2024, Duran slashed another inmate in the face and neck with a sharpened weapon, causing serious lacerations that required sutures. If convicted, Duran faces up to 20 years in prison. Assistant United States Attorney Kate Mathews is in charge of the prosecution.
U.S. v. Erik Steadman and Javaughn Horton
Erik Steadman and Javaughn Horton have been charged by complaint with assault in a federal detention facility for the September 5, 2024 assault of another inmate at MDC-Brooklyn. As alleged, Horton and Steadman approached another inmate in their unit and began punching him repeatedly in the face until he fell to the ground. The defendants continued punching and kicking the victim in the face, causing a significant laceration to his face. If convicted, the defendants face up to 10 years in prison. Assistant United States Attorney Molly Delaney is in charge of the prosecution.
U.S. v. Angel Villafane
Angel Villafane, a member of the gang Valentine Avenue Crew, has been indicted for possession of 21 ceramic scalpels smuggled into MDC-Brooklyn on October 12, 2024. As alleged, while sitting in the visiting room at MDC-Brooklyn, Villafane removed a ball full of ceramic scalpels from a bag of Doritos chips and placed them in his shirt. Correctional officers later discovered the scalpels during a search. If convicted, the defendant faces up to five years in prison. Department of Justice Trial Attorney Margaret P. Mortimer is in charge of the prosecution.
U.S. v. Juan Lopez and Jose Rivera
Juan Lopez and Jose Rivera have been indicted for assaulting another inmate and possessing contraband weapons. As alleged, on November 11, 2024, Lopez and Rivera slashed and stabbed another inmate in their housing unit. The victim was seated at a table when Rivera snuck up behind him and slashed him multiple times in the head and neck with a sharp object. As the victim ran to seek help, Lopez tried to prevent him from reaching the correctional officers’ station by swinging his own weapon, stabbing the victim in the arm. The victim suffered three lacerations to the back of his head, one laceration to his neck and a puncture wound to his forearm. If convicted, the defendants face up to 15 years in prison. Assistant United States Attorney Russell Noble is in charge of the prosecution.
U.S. v. Tyquan Robinson
Tyquan Robinson has been charged in a five-count superseding indictment with conspiracy to commit wire and bank fraud, conspiracy to commit wire fraud, bank fraud, aggravated identity theft and possession of contraband in prison. Robinson was originally detained at MDC-Brooklyn for his alleged role in defrauding a court-appointed criminal defense attorney by obtaining a stolen $125,000 Treasury check issued to the attorney as payment for representing indigent defendants and stealing his identity. In October 2024, officers at the MDC performed a search of Robinson’s cell. Inside his locker, the officers discovered that Robinson had hidden a contraband cellphone inside of a box of Raisin Bran cereal. An examination of this contraband cellphone revealed that even while incarcerated at the MDC, Robinson was participating in a separate fraud scheme from his original charges by discussing stealing checks issued to others, opening multiple bank accounts, and exchanging third parties’ personally identifiable information. If convicted, Robinson faces up to 30 years in prison. Assistant United States Attorney James R. Simmons is in charge of the prosecution with the assistance of Special Agent Anthony Cunder.
U.S. v. Jairon Ortega-Corea
Jairon Ortega-Corea, an MS-13 gang associate, was charged by indictment with attempting to provide contraband to inmates at MDC-Brooklyn. He was arrested on March 3, 2025 in Minnesota. The charges stem from the December 2, 2024 discovery, by MDC-Brooklyn employees, of a package on the fourth-floor roof of the jail containing 18 cellular telephones, approximately 345 grams of marijuana and one liter of drinking alcohol, among other items. The prior evening, a witness had observed the attempted smuggling of the package into MDC-Brooklyn, when it was pulled up by a rope dangled out of the window of an empty cell within the unit that houses MS-13 members. An investigation subsequently revealed that the defendant, who is related to a high-ranking MS-13 member housed at MDC-Brooklyn, purchased several of the contraband items at a local Walmart the day prior to the discovery. At the time of the purchase, Ortega-Corea was communicating with MS-13 inmates at MDC-Brooklyn who were using a different contraband phone. If convicted, Ortega-Corea faces up to 20 years in prison. Assistant United States Attorneys Megan E. Farrell, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.
U.S. v. Najee Jackson
Najee Jackson, a former correctional officer at MDC-Brooklyn, has been indicted by a grand jury for attempting to smuggle contraband into the facility. On January 21, 2025, Jackson, who was employed as a correctional officer, arrived at MDC-Brooklyn to begin working a night shift. After making several failed attempts to clear the metal detector in the staff screening area, Jackson removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana and cigarettes. Jackson resigned from the Bureau of Prisons two days later. If convicted, the defendant faces up to five years in prison. Assistant United States Attorneys Turner Buford and Russell Noble are in charge of the prosecution.
U.S. v. Devone Thomas
Devone Thomas, who was previously charged with the June 7, 2024 killing of Uriel Whyte inside of the MDC Brooklyn, is now additionally charged by complaint with possession of a contraband weapon. On February 28, 2025, Thomas was transported to federal court in Brooklyn for a status conference in connection with his murder case. Upon his return to MDC-Brooklyn after the court appearance, a blade was found in Thomas’s groin area. If convicted, the defendant faces up to five years in prison. Assistant United States Attorney Elizabeth D’Antonio is in charge of the prosecution.
U.S. v. Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez and Elvis Trejo
Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez, and Elvis Trejo have been charged by complaint with assault in a federal detention facility for their roles in what became a unit-wide fight between inmates at MDC-Brooklyn. As alleged, on February 22, 2025, Castro, Lopez, Nunez, Rodriguez and Trejo, along with other as-yet uncharged individuals, approached another inmate in their unit, armed with weapons, and began chasing and stabbing him. The victim was stabbed 18 times and required hospitalization for his injuries. The brawl ultimately resulted in at least five inmates, including the victim, requiring transportation to a local hospital for further treatment. Gillespie, who was not a part of the initial group attacking the victim, joined the brawl after it began, and, also armed with a weapon, assaulted a fellow inmate in the course of the fight. The fight resulted in more than 20 inmates requiring medical assessments, and at least 10 inmates appeared to have wounds consistent with being stabbed or slashed. If convicted, each defendant faces up to 10 years in prison. Assistant United States Attorney Stephen Petraeus is in charge of the prosecution.
* * *
The Office’s General Crimes Section is principally responsible for handling these cases, with substantial contributions from the Public Integrity Section, the Organized Crime and Gangs Section and the Office’s Long Island Criminal Section. In addition to the Assistant United States Attorneys and Special Agent listed above, Special Agent Danielle Williams, Law Enforcement Coordinator Specialist Herbert Martin and Paralegal Specialists Matias Burdman and Erin Payne have provided substantial support on these cases.
The charges in the indictments and complaints described above are allegations, and the defendants are presumed innocent unless and until proven guilty.
CHICAGO — A former correctional officer at the Metropolitan Correctional Center in Chicago has been indicted by a federal grand jury for allegedly sexually abusing four inmates while on duty.
BRITTANY HALL, 31, of Chicago, sexually abused the inmates inside the MCC in December 2023, according to an indictment returned Tuesday in U.S. District Court in Chicago. At the time, Hall was a correctional officer for the U.S. Bureau of Prisons, responsible for supervising inmates in Unit 12 of the MCC. Hall resigned from the BOP in 2024.
The indictment charges Hall with five counts of sexual abuse of a ward, each of which is punishable by up to 15 years in federal prison, and three counts of abusive sexual contact, each of which is punishable by up to two years in federal prison. Arraignment is scheduled for today at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and William J. Hannah, Acting Special Agent-in-Charge of the Midwest Regional Office of the Department of Justice’s Office of Inspector General. The government is represented by Assistant U.S. Attorney Jonathan L. Shih.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
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