Category: Legal Issues

Source: United States Attorneys General

Note: View Notice of Funding Opportunity here.

The Justice Department today announced the opening of the Fiscal Year 2026 Coordinated Tribal Assistance Solicitation (CTAS) Notice of Funding Opportunity (NOFO) for comprehensive funding to American Indian and Alaska Native Tribes to develop comprehensive approaches to public safety and victimization issues.

The department anticipates awarding more than $107 million in grant funding. Administered by the Office of Justice Programs (OJP) and Office of Community Oriented Policing Services (COPS Office), The NOFO includes guidance on how federally recognized Tribal governments and Tribal consortia can apply for funding to aid in the development of a comprehensive and coordinated approach to public safety and victimization.

“The Department is dedicated to promoting public safety and supporting victims in Tribal Nations,” said Associate Attorney General Stanley E. Woodward, Jr. “Through these grant funding opportunities, tribes can receive support to develop comprehensive plans that identify gaps, strengthen coordination and address the underlying conditions that contribute to criminal and social disorder. This Department is proud to contribute resources to ensuring the overall success and improvement of tribal justice systems.”

This NOFO responds directly to Tribal leaders’ requests to improve and simplify the DOJ grant-making process by combining many of its Tribal government-specific funding opportunities into one NOFO and requiring only one application. CTAS funding can be used for a range of public safety and justice-related projects and services, including strengthening law enforcement through hiring, training, and purchasing equipment; improving Tribal justice systems to address and prevent crime; improving justice system physical infrastructure; increasing access to substance use treatment and recovery support services; and reducing juvenile delinquency and improving youth outcomes. In addition, the grants serve American Indian and Alaska Native victims of child abuse, sexual assault, domestic violence and elder abuse.

In FY 2025, the department awarded 108 CTAS grants, amounting to more than $99 million in CTAS funding to Tribes and Tribal consortia across the United States.

The grants.gov application deadline for CTAS is Oct. 15, 2026, at 8:59 p.m. ET, and the JustGrants deadline is Oct. 22, 2026, at 8:59 p.m. ET.

The department will also facilitate a series of webinars to guide applicants through the application process. The full list of available webinars and registration links are available here. 

About the Office of Justice Programs

The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; promote fair and impartial administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking or SMART Office – can be found at ojp.gov. 

About the Office of Community Orienting Police

The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing and the Administration’s priority of Making America Safe Again by supporting the nation’s state, local, territorial and Tribal law enforcement agencies through information and grant resources.

Source: United States Attorneys General

Bryce Cleveland, the President and CEO of Scalpa, Inc., pleaded guilty today to three charges related to Scalpa’s selling of skincare products that had not been approved by the U.S. Food and Drug Administration (FDA). 

Cleveland, 42, of Scottsdale, Arizona, pleaded guilty to mail fraud, introduction of an adulterated device into interstate commerce, and introduction of an unapproved new drug into interstate commerce. Cleveland was apprehended late last year in Colombia and removed back to the United States where he was arrested on an outstanding federal warrant by the U.S. Marshals Service after an indictment against him was returned in July 2024. 

In 2015, Scalpa was a for-profit corporation incorporated in Arizona that marketed and sold medical devices and drug products intended to affect the structure and function of the human body. Between March 2018 and December 2020, Cleveland devised a fraudulent scheme to unlawfully enrich himself by marketing and delivering, and causing others to market and deliver, unapproved devices to consumers, including the ScalpaJECT Hyaluronic Acid, and Hyaluron Pen, while making false representations that the devices were not subject to FDA regulation. Similarly, Cleveland introduced and delivered, and caused others to introduce and deliver, the unapproved new drug “Scalpatox” into commerce.  

The ScalpaJECT Hyaluronic Pen, Hylaron Pen, and similar unapproved and misbranded devices and drugs are especially concerning from a public health perspective because injectable drug products can pose risks of serious harm to users. Injectable products are delivered directly into the body, sometimes directly into the bloodstream, and therefore, bypass some of the body’s key defenses against toxins and microorganisms that can lead to serious and life-threatening conditions.

Scalpatox was an unapproved and misbranded botulinum toxin product. On Nov. 5, 2025, the FDA issued a warning to owners of websites illegally marketing unapproved and misbranded botulinum toxin products, commonly called Botox. The agency is aware of adverse events associated with unapproved and misbranded botulinum toxin products, including botulism symptoms.

Cleveland has agreed to be sentenced to a prison term of between four and eight years. He has also agreed to pay restitution for the entire scope of his criminal conduct, and to forfeit $800,000. 

The FDA Office of Criminal Investigations investigated the case with assistance from the U.S. Postal Inspection Service.

Valuable assistance was provided by the Department of Justice’s Office of International Affairs and the Judicial Attaché Office in Bogotá. The U.S. Marshals Service provided exceptional assistance in locating the defendant in Colombia and facilitating his return to the United States.

Assistant U.S. Attorneys Corey Hall and Randy Ramseyer for the Western District of Virginia and Trial Attorney Taylor Broadbent of the Criminal Division’s Health and Safety Unit are prosecuting the case.

The Health and Safety Unit within the Department’s Criminal Division works with law enforcement partners to investigate and prosecute violations of federal laws designed to protect public health and safety. The unit focuses on corporations and individuals who make and sell dangerous drugs, food, and other consumer products that could cause significant harm to Americans. For more information, see https://www.justice.gov/criminal/criminal-fraud/health-safety-unit.

Source: United States Attorneys General

Source: United States Attorneys General

New York ophthalmology practices Mark D. Fromer, P.C. doing business as Fromer Eye Centers and Floral Park Ophthalmology P.C. have agreed to pay a total of $2.3 million to resolve alleged violations of the False Claims Act arising from their billing for trans-cranial doppler ultrasounds (TCDs) through a kickback arrangement with a third-party testing company. The Estate of Mark Fromer, the former owner of Fromer Eye Centers, also joined in the settlement with the practice. Both practices have agreed to cooperate with the Justice Department’s ongoing investigations of other participants in the alleged scheme.

“The integrity of healthcare decision-making depends on sound medical advice that is free from undue influence of illegal kickbacks and other improper arrangements,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to hold accountable healthcare providers who engage in such schemes.”

“Medical service providers who place profit above patients not only compromise the integrity of our health care system, but patients’ care,” stated U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “Our office will continue working with our partners to combat fraud against our federal health care programs.”

“Kickback arrangements work to corrupt impartial medical decision-making and drive up health care costs for everyone,” said Special Agent in Charge Isaac M. Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work closely with our law enforcement partners to investigate and hold accountable those who attempt to defraud federal health care programs.”

The settlements announced today resolve allegations that the settling practices knowingly submitted, and caused the submission of, false claims to Medicare (and, with respect to Fromer Eye, Medicaid) for medically unnecessary TCDs. The United States alleges that the settling practices performed TCDs on thousands of patients and billed Medicare and Medicaid hundreds of dollars per test. Before the patients received the results of the test, the practices and the third-party testing company allegedly identified the patients as having received a serious diagnosis that could qualify the patient for reimbursement of a TCD. However, the United States alleged that nearly all patients who received TCDs never had that diagnosis, and it was not reflected in the patient’s medical history or in the TCD results. In addition, Floral Park Ophthalmology allegedly received remuneration paid by the third-party testing company to induce the practice to refer its Medicare and Medicaid patients to the testing provider for TCDs.

The United States alleged that as a result of this scheme, the settling practices submitted, or caused the submission of, false claims to Medicare and Medicaid for TCDs that were medically unnecessary, that were premised on false diagnoses, and that resulted from violations of the Anti-Kickback Statute and the Stark Law.

As a result of the settlements, Fromer Eye Centers and the Estate of Mark Fromer will pay $1,800,000 and Floral Park Ophthalmology will pay $500,000. Of the total settlement amounts, $384,000 will be paid to the State of New York for its share of Medicaid, which is a jointly funded federal and state program.

The civil settlements resolved claims in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the Government’s recovery. The qui tam was filed by a whistleblower who will receive approximately $132,000 in connection with the settlement with Fromer Eye Centers. 

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 Middle District of Florida, with assistance from HHS-OIG and the FBI. The United States previously resolved similar allegations against Brandon Eye Associates P.A., Pinellas Eye Care, P.A. (doing business as Gulfcoast Eye Care), Clay Eye Holdings LLC, Retina Macula Specialist of Miami LLC, Florida Eye Institute P.A., Miami Eye LLC, and Kendall Eye Institute Inc.

The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare 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 HHS at 1-800-HHS-TIPS (800-447-8477).

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division. Trial Attorney Nelson Wagner in the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Mamie Wise for the Middle District of Florida handled the matter.

The claims resolved by the settlements are allegations only and there has been no determination of liability.

Source: United States Attorneys General

A Mexican national pleaded guilty today to conspiracy to distribute cocaine and methamphetamine for unlawful importation into the United States, and using, carrying, and possessing a firearm in furtherance of the drug trafficking conspiracy. 

According to court documents, Antonio Oseguera Cervantes, 67, of Michoacán, Mexico, trafficked cocaine and methamphetamine into the United States for Mexico-based cartels for over two decades. From around 2002 to 2010, Oseguera Cervantes operated as a member of the Milenio Cartel in Jalisco, Mexico, overseeing narcotics sales, protecting territories from rival cartels, and supervising and maintaining the operations of methamphetamine laboratories. He procured precursor chemicals for the manufacture of methamphetamine and distributed methamphetamine and cocaine destined for the United States.  

The court filings state that since around 2010, Oseguera Cervantes worked with and reported directly to his notorious and now-deceased brother, Nemesio Oseguera Cervantes, also known as “Mencho,” who co-founded and led the Cartel de Jalisco Nueva Generación (CJNG). The CJNG is one of the most prolific and dangerous drug cartels in Mexico, based in the State of Jalisco, which traffics multi-tonnage quantities of cocaine and methamphetamine into the United States. Oseguera Cervantes furthered CJNG’s drug trafficking operations, including by supplying precursor chemicals to CJNG methamphetamine laboratories and distributing cocaine and methamphetamine for the CJNG. He also collected drug proceeds and managed CJNG’s money laundering activities, such as transferring drug proceeds from the United States to Mexico through currency exchange locations. When collecting drug proceeds or attending meetings to discuss drug trafficking, Oseguera Cervantes armed himself with a pistol. 

Oseguera Cervantes pleaded guilty to conspiracy to distribute five kilograms or more of cocaine and 500 grams or more of methamphetamine destined to the United States, as well as using, carrying, and possessing a firearm in furtherance of the drug trafficking conspiracy. He is scheduled to be sentenced on Nov. 13 and faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of two consecutive life sentences in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Administrator Terrance C. Cole of the Drug Enforcement Administration (DEA) made the announcement.

The DEA’s Special Operations Division Bilateral Investigations Unit Los Angeles is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance to Oseguera Cervantes’ February 2025 transfer from Mexico to the United States pursuant to Mexico’s National Security law. The Department of Justice thanks the Government of Mexico for its assistance in securing Oseguera Cervantes’ presence in the United States for prosecution.

Chief Kaitlin Sahni of the Narcotic and Dangerous Drug Unit (NDDU) and Trial Attorneys Lernik Begian, Douglas Meisel, and Nicole Lockhart, of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section are prosecuting the case.

The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

MNF’s Narcotic and Dangerous Drug Unit investigates and prosecutes the top command and control elements of international drug cartels, drug trafficking organizations and related transnational criminal organizations.

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

Source: United States Attorneys General 1

The Justice Department today announced that Holmes Motors Inc., a “lease here, pay here” dealership with locations in Mississippi, Alabama, and Georgia, has agreed to pay over $137,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing vehicles owned by servicemembers and failing to refund security deposits and prepaid lease amounts to servicemembers who terminated their vehicle leases due to military orders.

“The Servicemember Civil Relief Act provides certain rights and protections to the members of our Armed Forces. These protections are designed to lessen the legal and economic burdens of military service and enable our warfighters to focus on the defense of our Nation,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department of Justice will not waver in its commitment to enforcing these rights.”

“As someone with 30 years of military service, enforcing the law to protect servicemembers’ rights is of the highest priority to me and to my office,” said U.S. Attorney Phillip W. Williams Jr. for the Northern District of Alabama. “The law is clear that when servicemembers are on active duty, they should not have to worry their car will be repossessed while they serve their county. I am very proud of this settlement, which ensures that companies understand that this law is not optional and servicemembers’ rights will be protected in this district.”

The Department alleges that Holmes Motors illegally repossessed three vehicles leased by SCRA-protected servicemembers without obtaining court orders.  In at least one case, Holmes Motors repossessed a vehicle even after the servicemember gave the company a copy of her military orders requiring her to deploy in support of operations at the southern border.

The Department also alleges that Holmes Motors violated the SCRA when it failed to refund security deposits and prepaid lease amounts when servicemembers terminated five vehicle leases early after receiving qualifying military orders.

Under the settlement, Holmes Motors will pay $77,348 in compensation to the affected servicemembers. The company will also pay a $60,000 civil penalty and will be required to make policy and training changes to avoid committing future violations.

Since 2011, the Department has obtained over $489 million in monetary relief for over 152,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.

Source: United States Attorneys General 13

Two Florida men pleaded guilty this week to conspiracy to pay and receive illegal health care kickbacks and bribes.

According to court documents, Laurent Cassagnol, 43, and Heriberto Rivera, 43, both of Orlando, Florida, conspired to refer patients of the VA Community Care Program (VACCP) to Family Integrative Medicine of Orlando, LLC (FIMO) for acupuncture, chiropractic adjustments, and other holistic medical services. Rivera, the CEO of FIMO, admitted to paying kickbacks and bribes to Cassagnol, an Advanced Medical Support Assistant for VACCP, in exchange for Cassagnol steering VA patients to FIMO for medical services. Cassagnol admitted to accepting Rivera’s payments. As a result of the conspiracy, the VA and VACCP was billed for over $14 million in claims that were procured through the payment of kickbacks and bribes, of which over $11 million was paid. The investigation was the result of a complaint made to the VA Office of the Inspector General (VA-OIG) fraud hotline.

Cassagnol and Rivera both pleaded guilty to conspiracy to pay and receive kickbacks and bribes. Cassagnol and Rivera are scheduled to be sentenced on Nov. 5. Each defendant faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Rodney E. Crawford of the FBI Tampa Field Office; and Acting Special Agent in Charge Greg Wentz of the VA-OIG Southeast Field Office made the announcement.

FBI and VA-OIG are investigating the case.

Trial Attorneys Angela Benoit and Jody King of the Criminal Division’s Fraud Section are prosecuting the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Attorneys General

Source: United States Attorneys General

The Justice Department’s National Fraud Enforcement Division today announced a series of significant fraud enforcement actions across the Southeastern United States, the product of robust federal-state partnerships with Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina. The charges announced today encompass 17 cases spanning the seven states. These recent cases involve over $350 million in intended losses and include cases involving SNAP benefits, Small Business Administration loans, housing benefits, and tax fraud. From July 4 alone, federal prosecutors charged cases reaching over $90 million loss and implicating 12 named defendants. The Division separately announced the formation of federal-state anti-fraud task forces in North Carolina, Mississippi, and Florida.

The Division additionally announced new federal-state cooperation agreements with this group of states to strengthen ongoing fraud enforcement efforts, following a recent roundtable that brought together 18 U.S. Attorneys Offices, seven State Attorneys General Offices, five federal law enforcement partners, and over 50 state officials.

“Defeating the fraud epidemic in our country requires all-hands-on-deck from our federal and state partners nationwide,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Whether it’s sharing intelligence, data, personnel, or priorities, partnering with state agencies directly strengthens our ability to identify those stealing taxpayer dollars. When federal prosecutors work alongside state agencies to root out fraud, fraudsters lose and the American people win.”

“Working alongside our federal and interstate partners, we are committed to combating fraud at every level. Our collaborative partnerships allowed us to uncover more than $20 million in Medicaid fraud claims during an operation known as Operation Border Wars,” said South Carolina Attorney General Alan Wilson. “My office also recently indicted six individuals accused of defrauding taxpayers and stealing jobs from hardworking South Carolinians by providing counterfeit employment documents to illegal aliens. The rule of law means something in South Carolina, and we will continue working with our law enforcement partners to dismantle these schemes and prosecute those responsible to the fullest extent of the law.”

“We appreciate the Trump Administration’s commitment to rooting out fraud in government healthcare programs, including the creation of a dedicated state-federal partnership to lead this fight,” said Alabama Attorney General Steve Marshall. “Thanks to the Administration’s serious commitment to ending waste, fraud, and abuse, we now have the tools and coordination needed to identify bad actors and hold them accountable. Together, we are protecting the integrity of Medicaid and the taxpayer dollars that fund it.”

“With the help of the Trump administration, the states are fighting back against benefits fraud,” said Louisiana Attorney General Liz Murill. “Since taking office, my administration has secured more than 100 convictions and $73 million in court-ordered restitution. Under the leadership of Acting Attorney General Blanche, Director Patel, and Administrator Oz, our partnership is holding criminals accountable and delivering real results for the taxpayers of Louisiana and the nation.”

“President Trump has challenged all of us to step up our efforts to fight fraud and protect American taxpayers from this grift,” said Mississippi Attorney General Lynn Fitch. “Partnerships like this one show that we are bringing everything to the table in this work. In that spirit, with the support of the U.S. Department of Justice, my office is standing up Joint Task Force Vigilance with our two U.S. Attorneys and the FBI to surge resources and personnel to make Mississippi safer, protect Mississippi taxpayers, and restore law and order. This first-of-its-kind task force will bring the full authority of our offices to bear on con artists, grifters, fraudsters, and scammers.”

Building a National Model of Federal-State Cooperation 

In connection with these fraud enforcement actions, the Fraud Division, U.S. Attorneys’ Offices, federal law enforcement officials, and state partners announced the following innovative steps to enhance federal–state cooperation to detect, investigate, and prosecute fraud:  

• The Fraud Division and Secretaries of State from Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina as well as State Treasurers from Florida, Mississippi, and South Carolina announced data sharing agreements that provide the Fraud Division access to publicly available corporate registration and public benefits payment data held by these state agencies. This data will help the Fraud Division proactively identify connections and patterns across both business entities and public benefits payment activity — cutting through the shell companies, layered structures, and complex financial trails that fraudsters rely on to conceal control and carry out largescale schemes.

Federal and State Partners Represented at the 2026 Southeast Fraud Enforcement Partnership Event

Alabama: Secretary of State Wes Allen and Chief Examiner Rachel Riddle.

Florida: Attorney General James Uthmeier, Secretary of State Cord Byrd, and Chief Financial Officer Blaise Ingoglia.

Georgia: Attorney General Chris Carr and Secretary of State Brad Raffensperger.

Louisiana: Attorney General Liz Murrill, Secretary of State Nancy Landry, Auditor Michael Waguespack, and Inspector General Angele Davis.

Mississippi: Attorney General Lynn Fitch, Secretary of State Michael Watson, Auditor Shad White, and Treasurer David McRae.

North Carolina: Attorney General Jeff Jackson and Auditor Dave Boliek.

South Carolina: Governor Henry McMaster, Attorney General Alan Wilson, Secretary of State Mark Hammond, Treasurer Curtis Loftis, Inspector General Sean Fay, and Director for South Carolina Department of Social Services Tony Catone.

U.S. Attorneys Offices: Northern District of Alabama, Middle District of Alabama, Southern District of Alabama, Northern District of Florida, Middle District of Florida, Southern District of Florida, Northern District of Georgia, Middle District of Georgia, Southern District of Georgia, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Northern District of Mississippi, Southern District of Mississippi, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, and District of South Carolina.

Federal Agencies: U.S. Department of Agriculture (USDA) Deputy Secretary Stephen Vaden, FBI Assistant Director Heith Janke, Homeland Security Investigations (HSI) Assistant Director James Harris, Small Business Administration Office of Inspector General William Kirk, and USDA Inspector General John Walk.

These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide.  The Department encourages every state across the country to partner with the Fraud Division on similar efforts.

Federal and State Partners Represented at the 2026 Southeast Fraud Enforcement Partnership Event

Cases

Alabama

Northern District of Alabama led by U.S. Attorney Phillip Williams, United States vs. Michael Shine. Michael Shine is a tax preparer based in the Birmingham area who owns and operates Shine’s Professional Services. He has filed and caused to be filed literally thousands of tax returns falsely claiming energy tax credits that were baseless and fraudulent, causing almost $70 million in loss as charged in a complaint.  

Example of “Self-Prepared” Attestation Seized During Search Warrant From United States vs. Michael Shine.

Middle District of Alabama led by U.S. Attorney Thomas Govan, United States v Kevin Padgett et al. Kevin Padgett and co-defendants were charged in a mail fraud, wire fraud, and money laundering conspiracy in connection with their scheme to sell approximately $7 million counterfeit U.S. Postage Stamps.

Southern District of Alabama led by U.S. Attorney Sean Costello, United States v. Nia Bradley, et al. Five defendants, Nia Bradley, Randy Burden, Steve Jones, Larry Knight, and Dejuan Lamar, board members and employees of the Prichard, Alabama Water and Sewer Works, created false invoices for work that was never performed and created fictitious construction companies for the purpose of defrauding the utility for a total loss amount of roughly $2.5 million. 

Florida

Northern District of Florida led by U.S. Attorney John Heekin, United States v. Lekishaan Huggins. The former manager of the Tallahassee Housing Authority used former tenants’ Personally Identifiable Information (PII) to fraudulently obtain U.S. Department of Housing and Urban Development (HUD) rent subsidies for a total case loss of just over $500,000. As charged, Huggins used fraudulently obtained funds to sustain her luxurious lifestyle, including vacations, buying luxury apparel and jewelry, and having a celebrity chef cater her private Christmas party.

Middle District of Florida led by U.S. Attorney Greg Kehoe, United States vs. Daniel Liburdi. Daniel Liburdi pled guilty in the Middle District of Florida to filing a false tax return and agreed to restitution of nearly $35 million and forfeiture including multiple properties in Miami Beach and the U.S. Virgin Islands and three luxury vehicles (Land Rover Range Rover, a Ferrari 812 and a Ferrari F8).  

Alleged Ferrari 812 and Ferrari F8 vehicles from United States vs. Daniel Liburdi.

Alleged Virgin Islands property from United States vs. Daniel Liburdi.

Alleged Miami Beach property from United States vs. Daniel Liburdi.

Southern District of Florida led by U.S. Attorney Jason Quiñones, United States vs. Rajaie Ali et al. Defendants Rajaie Ahmad Ali, Sami Jamhour, Cristian Amaro, and Adel Amro concocted a scheme to use willing food stamp recipients to sell their EBT stamp benefits at a discounted rate for cash. The scheme, launched in 2019, caused nearly $20 million in fraudulent EBT transactions at a Kwik Stop convenience store in Miami. Two of the indicted co-conspirators are foreign nationals.  Defendant Ali is even subject to a final order of removal from the United States.  

Alleged Kwik Stop location responsible for multi-millions in SNAP Benefits Fraud from United States vs. Rajaie Ali et al.

Georgia 

Northern District of Georgia led by U.S. Attorney Theodore Hertzberg, United States v. Ian Patrick Jackson. Defendant Ian Patrick Jackson pled guilty for running a fraud and money laundering scheme that stole more than $3 million in CARES Act funds administered by the SBA in the form of PPP and EIDL loans. Jackson has twice been convicted of previous fraud felonies, recruited at least nine business owners into his scheme to submit fraudulent applications, and spent the proceeds on personal expenses, including restaurant dining, spa services, phone and credit card bills, and travel to California, Texas, and Aruba.

Southern District of Georgia led by U.S. Attorney Meg Heap, United States v Melanie Charise Thompson and Toriono Laselle Byrd. Defendant Thompson was indicted for orchestrating a scheme to defraud the Hinesville Housing Authority (HHA) of millions of dollars by using HHA funds to pay her former boyfriend for work that he never completed or paid him far in excess of what he should have been paid for work that was completed, sometimes in return for kickbacks.  Purchases from fraud proceeds included custom jewelry worth over $100,000, a gold bracelet, a diamond ring, a Porsche Panamera, a Cadillac Escalade, a Bently Flying Spur, real estate, a hot tub, and tickets to a Janet Jackson concert, reaching nearly $3 million in loss. 

Louisiana 

Eastern District of Louisiana led by U.S. Attorney David Courcelle, United States vs. Spivey. Spivey was sentenced for his role in a conspiracy to commit health care fraud. Spivey conspired with his codefendant, Jamie McNamara, to fraudulently submit $174 million in fraudulent claims to Medicare for medically unnecessary cancer genetic testing and cardiovascular genetic testing. The genetic tests Medicare patients were lured into did not provide them with any answers on their predisposition to life threatening illnesses and cost taxpayers millions of dollars.

Western District of Louisiana led by U.S. Attorney Zach Keller, United States v Patel et. al. Defendants, including former law enforcement officials, spent nearly 10 years manufacturing false crime reports as part of a visa-fraud scheme. The operation netted the officers $5,000 per “victim” and helped hundreds of foreign nationals secure U visas for false crimes.

Middle District of Louisiana led by U.S. Attorney Kurt Wall, United States v Chakesha Scott et al., Chakesha Scott was the CEO of Impact Charter School in Baker Louisiana, which received state and federal funds. Instead of using those funds to benefit the students, Scott and her indicted co-conspirators diverted nearly $1.5 million in federal funds to pay off family members for overinflated contracting invoices, buying herself luxury vehicles, and even paying for her personal travel expenses.  

Scott on personal travel in Egypt allegedly using taxpayer funds from United States v Chakesha Scott et al.

Mississippi 

Northern District of Mississippi led by U.S. Attorney Scott Leary, United States v. Lakieth Faulkner et al. Lakeith Faulkner was an attorney and an employee of the Small Business Administration (SBA) who, as a part of his actual job, worked with borrowers and was uniquely positioned to understand the Economic Injury Disaster Loan (EIDL) approval process. Faulkner devised a kickback scheme with co-conspirators including Tierra Scott, a former IRS employee, to generate more than $11.5 million in fraudulent loan payments by the SBA.  

Southern District of Mississippi led by U.S. Attorney Baxter Kruger, United States v. Qadir Shabazz, et al. As alleged, federal inmates housed at the Yazoo Federal Correctional Complex conspired to steal unemployment insurance benefits and EIDL funds using falsified identities, generating approximately $4.3 million in losses.  Trial is set for February 2027.

North Carolina 

Western District of North Carolina led by U.S. Attorney Russ Ferguson, United States v. Dumitru. Two Romanian brothers illegally in the United States pled guilty to wire fraud charging them with orchestrating a fraud scheme involving SNAP benefits affecting victims across multiple states, causing nearly $766,000 in loss. A victim reported that she was shopping with her family on their monthly grocery run for approximately $700 of SNAP-eligible items. Because the defendants had used her SNAP benefits, the transaction was denied, and the victim was unable to purchase food or school supplies for her family.

Middle District of North Carolina led by U.S. Attorney Dan Bishop, United States v. Adedayo Afolabi Fateru. Fateru pled guilty as a member of a money laundering ring involving proceeds of various fraud schemes including false applications for Economic Injury Disaster Loans (EIDL) and false applications for unemployment benefits. He caused nearly $1.7 million in loss. 

Eastern District of North Carolina led by U.S. Attorney Ellis Boyle, United States v. Mitchell et al. A Robeson County woman (along with seven co-conspirators) who was the owner of a North Carolina tax return preparation business pled guilty to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, causing nearly $25 million in loss. 

South Carolina

District of South Carolina led by U.S. Attorney Bryan Stirling, United States v. Misty Dawn Woody. Misty Dawn Woody was charged by indictment for making false statements relating to healthcare matters.  In her role as an employee for Vital Care, a medical patient transport service, Woody allegedly copied and forged a physician’s signature on over one hundred certification forms for patients that were no longer under that physician’s care.  She submitted those forms to Medicare causing over $1.8 million in false and fraudulent billing. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Source: United States Attorneys General