Category: Legal Issues

Source: Office of United States Attorneys

EUGENE, Ore.—A Lynwood, California man was sentenced to 14 years in federal prison Monday for trafficking 11 pounds of methamphetamine from California to Oregon.

Luis Banuelos, 34, was sentenced to 168 months in federal prison and five years’ supervised release.

According to court documents, on February 28, 2021, as part of a drug trafficking investigation, officers from the Central Oregon Drug Enforcement (CODE) team arrested Banuelos after he transported methamphetamine from California to deliver to a customer in Prineville, Oregon. Officers searched Banuelos’s vehicle and seized two boxes containing more than 11 pounds of methamphetamine. When questioned by investigators, Banuelos admitted to transporting drugs from California approximately seven times for distribution in Oregon.

On August 4, 2022, Banuelos was charged by criminal information with possession with intent to distribute methamphetamine. On October 31, 2022, Banuelos pleaded guilty to the charge.

The case was investigated by the CODE team and the Drug Enforcement Agency. It was prosecuted by Adam Delph, Assistant U.S. Attorney for the District of Oregon.

Source: Office of United States Attorneys

PORTLAND, Ore.— Ermin Izaguirre-Estrada, 22, a Honduran national unlawfully residing in Oregon, was sentenced Monday to 70 months in federal prison and three years’ supervised release for trafficking fentanyl in downtown Portland and San Francisco, California.

According to court documents, on August 9, 2023, as part of a fentanyl enforcement mission targeting fentanyl dealers in downtown Portland, officers observed Izaguirre-Estrada holding what appeared to be blue fentanyl pills in his hand. The officers arrested Izaguirre-Estrada and seized a loaded firearm, more than 6,000 fentanyl pills, fentanyl powder, and cash.

On August 16, 2023, a federal grand jury in Portland returned a two-count indictment charging Izaguirre-Estrada with possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and alien in possession of a firearm.

On September 26, 2023, a federal grand jury in the Northern District of California returned a two-count indictment charging Izaguirre-Estrada with possession with intent to distribute fentanyl and methamphetamine, based on a prior arrest in April 2023.

On April 30, 2025, Izaguirre-Estrada pleaded guilty to two counts of possession with intent to distribute fentanyl, resolving both of his criminal cases.

This case was investigated by Homeland Security Investigations, the Portland Police Bureau (PPB) Narcotics and Organized Crime Unit, the High Intensity Drug Trafficking Area (HITDA) Interdiction Team (HIT), the PPB Central Precinct Neighborhood Response Team and PPB Bike Squad. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.

The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 2-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The wide availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.

If you are in immediate danger, please call 911.

If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 2pm and 6pm Pacific Time daily.

Source: Office of United States Attorneys

LOS ANGELES – A Guatemalan national and former resident of the West Adams neighborhood of Los Angeles was extradited from Guatemala and arraigned today on federal criminal charges alleging that he produced child sexual abuse material of five children.

Miguel Angel Batz Jr., 43, a.k.a. “Mike Batz,” was transported to the United States this morning from Guatemala and arrived at Los Angeles International Airport.

Batz is charged with 12 counts of production of child pornography. At his arraignment this afternoon in United States District Court in Los Angeles, he pleaded not guilty to all counts. A federal magistrate judge ordered him jailed without bond and scheduled a trial to begin October 7.

According to the indictment that a federal grand jury returned in June 2022 and was unsealed today, Batz knowingly enticed and coerced five minor victims – all under the age of 18 years old – to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct.

The depictions were produced and transmitted using means of interstate and foreign commerce, including by computer, cellphone, and the internet.

Batz originally was charged in Los Angeles Superior Court with contacting a minor to commit a lewd act and later fled to Guatemala. He had legal status in the United States at the time of the alleged offenses.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court. 

If convicted, Batz would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison for each count.

The FBI is investigating this matter. The U.S. Attorney’s Office thanks the Guatemalan National Civil Police Transnational Anti-Gang Unit and FBI Legal Attaché suboffice in Guatemala City for their assistance in this matter. The Justice Department’s Office of International Affairs working with Guatemalan law enforcement authorities provided critical assistance in securing the arrest and extradition of Batz to the United States. 

Assistant United States Attorney Brandon E. Martinez-Jones of the Violent and Organized Crime Section is prosecuting this case.

Source: Office of United States Attorneys

LOS ANGELES – A Glendale woman was sentenced today to 108 months in federal prison for participating in a scheme in which hundreds of thousands of dollars in illegal kickbacks were paid and received for patient referrals that resulted in the submission of approximately $10.6 million in fraudulent claims to Medicare for purported hospice care.

Nita Almuete Paddit Palma, 75, of Glendale, was sentenced by United States District Judge Dolly M. Gee, who also ordered her to pay $8,270,032 in restitution. 

At a separate hearing today, Judge Gee sentenced Percy Dean Abrams, 75, of Lakewood, to three years of probation, which will include two years of home confinement.

At the conclusion of a six-day trial, a federal jury in December 2024 found Palma guilty of 12 counts of health care fraud and 16 counts of paying illegal kickbacks for health care referrals. The jury also found Abrams guilty of six counts of receiving illegal kickbacks for health care referrals.

Palma was excluded from Medicare, a federal health insurance program for people aged 65 and older, because of prior federal convictions for receiving illegal kickbacks. While she was excluded from Medicare, Palma purchased Magnolia Gardens Hospice through her daughter and bought C@A Hospice through her husband in 2015 and concealed her ownership interest in both hospices from Medicare.

Palma then paid “marketers”, including Abrams, hundreds of thousands of dollars in illegal kickbacks for patient referrals that Palma could bill to Medicare for purported hospice care.

Hospice is only for those who are terminally ill and have a life expectancy of six months or less. Hospice provides comfort care to a patient instead of trying to cure the patient’s illness, and a patient forfeits certain benefits under Medicare when electing hospice.

Consistent with instructions provided by Palma, Abrams falsely represented to prospective patients that they did not need to be dying to be on hospice. After collecting personal identifying information from prospective patients that were not dying, Abrams sent the information to Nita Palma so she could bill Medicare for purported hospice care.

Through Magnolia Gardens Hospice and C@A Hospice, Palma caused the submission of approximately $10.6 million in fraudulent claims to Medicare beginning in 2015 for purported hospice care for patients that were not dying. Palma received approximately $6,000 each month a patient was billed to Medicare for hospice. In turn, Palma paid Abrams and other marketers up to $1,000 per month in illegal kickbacks for each patient referred to her that was billed to Medicare for hospice. Many of the patients that were billed to Medicare through Magnolia Gardens Hospice did not know they were signed up for hospice, and some patients only found out after they were denied medical coverage for services they needed.

During the health care fraud scheme, Medicare requested additional documentation from Magnolia Gardens Hospice to support the purported hospice claims. In response, Palma and her husband directed employees to create fake patient charts and had those fake patient charts submitted to Medicare. Court documents allege that while awaiting trial in this matter, Palma took control of three other hospices and caused the submission of approximately $4.8 million in claims for purported hospice care.

The United States Department of Health and Human Services Office of Inspector General and the FBI investigated this matter.

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Matt Coe-Odess of the Domestic Security and Immigration Crimes Section prosecuted this case.

Source: Office of United States Attorneys

SAN JOSE – A federal grand jury has indicted Hank Risan on four counts of wire fraud stemming from alleged misrepresentations to investors about his software company and his purported music streaming service.  Risan was arrested this morning and made his initial appearance today in federal court in San Jose.    

According to the indictment filed on July 31, 2025, and unsealed today, Risan, 70, of Santa Cruz, allegedly offered and sold stock and stock conversion in his software company, Media Rights Technologies, Inc. (MRT), and his music streaming service, BlueBeat, Inc., to investors based on false representations, including: (1) false claims of BlueBeat’s copyright ownership of approximately 2.5 million songs by various well-known artists; (2) false and misleading comparisons and valuations of BlueBeat; (3) false claims of imminent acquisition of BlueBeat by a multi-national media and entertainment conglomerate; and (4) false claims of association and involvement with the companies by a former undersecretary of the U.S. Department of Commerce.  As an example, on Nov. 3, 2020, Risan informed investors that he “received a very favorable comparable regarding the BlueBeat Catalog” and noted, “To put that news in perspective, BlueBeat contains approximately 2.5 million songs and $10K per song brings music to my ears. You can do the math!”

In reality, the indictment alleges, BlueBeat did not own the copyrights to the 2.5 million songs, the valuations of MRT and BlueBeat were fictional, the advertised multi-media conglomerate was not in the process of acquiring BlueBeat or its catalog, and the former Commerce official was not involved with BlueBeat.

Risan allegedly induced investors to purchase approximately $1,959,187 in stock and stock conversions, and to make payments characterized as “loans.”  In total, he obtained approximately $3,165,859 from the charged scheme.  Risan allegedly used the fraudulently obtained funds to pay personal credit cards, purchase collectables, and make mortgage payments on his personal residence.

United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.

Risan was released on a $100,000 unsecured bond.   He is next scheduled to appear in district court on Oct. 8, 2025, for a status conference before U.S. District Judge P. Casey Pitts.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000 for each count of wire fraud in violation of 18 U.S.C. § 1343.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Matthew Chang and Jeff Nedrow are prosecuting the case with the assistance of Natachiana Burney and Susan Kreider.  The prosecution is the result of an investigation by the FBI. 
 

Source: Office of United States Attorneys

DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Timothy Rawlings, 56, of Laveen, Arizona, was sentenced to twelve months in federal prison for a conspiracy to violate the Lacey Act, three years’ supervised release and $45,800.00 in restitution. His codefendant, Howard Wayne Rodarmel, 71, of Baca County, Colorado, was previously sentenced to three years’ probation, $9,164.00 in restitution, and a $2,000.00 fine. Enacted 125 years ago, the Lacey Act protects the nation’s wildlife resources by prohibiting wildlife violations that cross state or international borders.

According to the plea agreement, Rawlings—who owned and operated Old West Guides and Outfitters in Laveen, Arizona—provided outfitting, hunting, and guiding services to paying clients for various big game animals, to include deer, elk, mountain lions, and bears. Rawlings’ company was not licensed to provide these services in the state of Colorado.

Rawlings’ paid his codefendant, Howard Wayne Rodarmel, to provide unlicensed outfitting and guiding services to clients in Baca County, Colorado. Rawlings knowingly violated several hunting regulations, to include shooting from vehicles; chasing animals with vehicles; and hunting in unlicensed and/or unpermitted lands. He also failed to register taken animals, to include mountain lions, as required by Colorado regulations. During the investigation, Rawlings also unwittingly guided undercover agents on an illegal hunt and violated such regulations in their presence, according to the plea agreement.

Rawlings did all of this knowing that his clients resided almost exclusively outside of the state of Colorado, and that the animals taken would likely travel in interstate commerce. The Lacey Act prohibits, among other things, transporting wildlife that had been illegally taken under federal, state, tribal, or foreign law.

“Operating without proper licensing undermines wildlife conservation efforts and the integrity of our state’s hunting regulations,” said United States Attorney Peter McNeilly. “We will continue to hold accountable those who seek to profit by skirting the laws that protect Colorado’s natural resources and ensure fair access for all.”

“This was not a momentary lapse in judgment or isolated violation,” said Assistant Director Douglas Ault of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “For several years, Rawlings and his associates systematically violated Colorado’s hunting and guiding regulations, orchestrating illegal hunts, and facilitating the unlawful take, transport, and sale of big game across state lines for monetary financial gain. Their actions stripped wildlife from our landscapes and betrayed the foundational principles of ethical hunting. Violations like these erode public trust in licensed guides, undermine decades of conservation progress, and tarnish the legacy of fair-chase hunting that ethical sportsmen and women work hard to preserve. The Service is committed to working with our partners in Colorado to ensure that those who break the law are held accountable and that we protect the integrity of our natural resources.”

The defendants were sentenced by United States District Judge S. Kato Crews. The investigation was conducted by the United States Fish and Wildlife Service and Colorado Parks and Wildlife. The prosecution was handled by Assistant United States Attorney Kurt Bohn.

Case Number: 24-cr-00117-SKC

Source: Office of United States Attorneys

DENVER – The United States Attorney’s Office for the District of Colorado announces that Carie Hallford, 48, of Colorado Springs, Colorado, pled guilty to conspiracy to commit wire fraud.

Hallford, who owned and operated Return to Nature Funeral Home in Colorado Springs and Penrose with her husband and codefendant, Jon Hallford, mishandled at least 190 bodies over four years and defrauded the Small Business Administration (SBA) through fraudulent COVID-19 loan applications. Jon Hallford was sentenced in June to 240 months in federal prison and ordered to pay $1,070,413.74 in restitution for his role in the conspiracy.

According to the plea agreement, from as early as September 2019 through October 2023, Hallford and her husband failed to cremate or bury at least 190 bodies, despite having collected more than $130,000 from grieving families for funeral services that were never provided. The defendants failed to provide the basic core service it promised to some of its customers, either a cremation or a burial, and continued to collect payment from victims for funeral services and goods.

The plea agreement further states that Carie Hallford handled much of the banking, invoicing, contracting with customers, filing of required paperwork, bookkeeping and communications with customers. Both defendants routinely prepared death certificates for the deceased and then filed those certificates with the State of Colorado’s Electronic Death Registry. On many of the death certificates for the bodies found at the Penrose location, the defendants falsely stated that the “method of disposition” was by either cremation or burial when in truth there was no disposition as the bodies were left decomposing at the Penrose location. To carry out and execute the above fraud scheme, the defendant and her husband worked together to cause multiple interstate wire communications to occur.

The plea agreement goes on to state that from March 2020 to March 2022, Hallford and her husband conspired to defraud the SBA by submitting loan applications containing false information to obtain COVID-19 relief funds. As a result of this fraud, they received three separate disbursements from the SBA, totaling $882,300. The funds were obtained through the Economic Injury Disaster Loan (EIDL) program, which was established to provide emergency support to businesses affected by the COVID-19 pandemic.

On October 5, 2023, federal and state officials searched the Penrose location, where they discovered multiple decomposing human remains in hazardous conditions. The toxic environment posed serious health risks to first responders and the public, requiring hazmat suits and strict decontamination protocols. The EPA later condemned and demolished the building, classifying it as a toxic waste site.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created the PPP, a program administered by the Small Business Administration (SBA) that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.  Additionally, in response to the COVID-19 pandemic, several federal programs expanded eligibility for unemployment benefits.

United States District Judge Nina Y. Wang presided over the hearing. Carie Hallford’s sentencing is currently scheduled before Judge Wang for December 3, 2025.

The FBI Denver Field Office and the United States Small Business Administration Office of Inspector General investigated the case. Several other state and local law enforcement agencies including the Colorado Bureau of Investigation, the Colorado Springs Police Department, the El Paso County Coroner’s Office, the Fremont County Sheriff’s Office, and the Fremont County Coroner’s Office have made significant contributions to this case. The prosecution is being handled by Assistant United States Attorneys Tim Neff and Craig Fansler.

Case Number: 1:24-cr-00113-NYW

Source: Office of United States Attorneys

BOSTON – A Southbridge man who served as the chief lieutenant of a drug trafficking organization (DTO) that distributed cocaine and fentanyl throughout the North Shore and Central Massachusetts areas was sentenced today in federal court in Worcester.

Ismael Maysonet, 44, of Southbridge, was sentenced by U.S. District Court Judge Margaret R. Guzman to 15 years in prison and five years of supervised release. In February 2025, Maysonet was convicted following a six-day jury trial of conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and fentanyl and possession with intent to distribute 40 grams or more of fentanyl. In September 2022, Maysonet was charged along with 21 other co-conspirators.

In and around August 2021 through August 2022, Maysonet was identified as the chief lieutenant of a Southbridge-based DTO who distributed cocaine and fentanyl to retail customers and other drug dealers at the request of the leaders of the DTO, Jonathan Pizarro Gonzalez and Isaac Gonzalez. The DTO regularly used the United States mail to conduct drug trafficking activities. Specifically, the DTO obtained large quantities of cocaine through packages mailed from Puerto Rico to addresses used by the DTO and mailed packages containing fentanyl to recipients in Florida and elsewhere.

As chief lieutenant, Maysonet essentially operated as a mid-level manager for the DTO and was involved in every aspect of the organization’s fentanyl and cocaine trafficking operations. Maysonet was responsible for coordinating the receipt of packages of narcotics from Puerto Rico; negotiating with suppliers; transporting fentanyl as well as drug proceeds to and from customers and suppliers; and packaging fentanyl for shipment to Isaac Gonzalez’s residence in Florida for distribution. When a package containing cocaine was seized by law enforcement during the investigation, Maysonet approached mail carriers both on the street and in the post office to inquire about the location of the package.

Furthermore, Maysonet threatened a federal witness in open court during trial in February 2025.

Over the course of the investigation, approximately nine kilograms of cocaine from packages sent through the mail and 800 grams of fentanyl were seized from various DTO members. Maysonet is responsible for distributing over 700 grams of fentanyl and three kilograms of cocaine.

Both Jonathan Pizarro Gonzalez and Isaac Gonzalez pleaded guilty in January 2025.  In June 2025, both defendants were sentenced to 10 years in prison and 15 years in prison, respectively.

United States Attorney Leah B. Foley; Jarod A. Forget, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service made the announcement today. Valuable assistance was provided by the United States Marshals Service, Massachusetts State Police, Southbridge Police Department, Lawrence Police Department, Essex County Sherriff’s Department and Worcester County Sheriff’s Department. Assistant U.S. Attorneys Stephen W. Hassink and Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.

This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: Office of United States Attorneys

United States Attorney for the Southern District of New York, Jay Clayton, and Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the arrest and filing of a Complaint charging JOHN GARCIA with assaulting a U.S. Postal Service (“USPS”) mail carrier with a deadly and dangerous weapon on July 16, 2025, in the Bronx, New York.  The defendant was presented this afternoon before U.S. Magistrate Judge Robert W. Lehrburger.

“John Garcia allegedly attacked a uniformed USPS carrier who was delivering the mail,” said U.S. Attorney Jay Clayton.  “Attacks like this are senseless and threaten the good people and systems we rely on every day.  They will not be tolerated.”

“The Postal Inspection Service takes matters involving the safety and well-being of postal service employees as a top priority,” said USPIS Acting Inspector in Charge Edward Gallashaw.  “Let it be clear, we will investigate and identify anyone who commits a criminal act against a USPS letter carrier.  I’d like to thank our local law enforcement partners and the U.S. Attorney’s Office for the Southern District of New York for their constant assistance.”   

According to the allegations contained in the Complaint:^[1]

On or about July 16, 2025, at approximately 12:50 p.m., in the Bronx, New York, GARCIA attacked a uniformed, on-duty USPS mail carrier (“Victim‑1”) with a sharp object.  GARCIA slashed Victim-1’s head and right ear, causing multiple deep lacerations that required Victim-1 to be hospitalized.

*                *                *

GARCIA, 20, of the Bronx, is charged with one count of assaulting an officer of the U.S. using a deadly or dangerous weapon, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

This case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Kevin Grossinger is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.