Author: MIL-OSI Publisher

Source: United States Department of Justice Criminal Division

            WASHINGTON – Kunal Mehta, 45, of Irvine, California, pleaded guilty today in connection with his role in a multi-state conspiracy that used social engineering to steal hundreds of millions of dollars in cryptocurrency from victims throughout the United States, announced U.S. Attorney Jeanine Ferris Pirro.

            Mehta, aka “Papa,” “The Accountant,” and “Shrek,” pleaded to participating in a RICO conspiracy before U.S. District Court Judge Colleen Kollar-Kotelly and admitted that he helped to launder at least $25 million.

            Joining in the announcement were FBI Special Agent in Charge Reid Davis of the Washington Field Office Criminal Division and Executive Special Agent in Charge Kareem Carter of the Internal Revenue Service – Criminal Investigation (CI), Washington, D.C. Field Office.

            “Kunal Mehta along with his co-conspirators stole hundreds of millions of dollars in cryptocurrency from victims and then laundered that money to give it the appearance of legitimacy, spending it lavishly on themselves,” said U.S. Attorney Pirro. “We are committed to rooting out fraud and holding those responsible fully accountable.”

            ‘Mehta is the eighth defendant to plead guilty for his role in this scheme,” said the FBI’s Davis. “Today’s plea reaffirms the FBI’s commitment to exposing fraudsters and should remind Americans to beware of online scammers: Do not reply to calls, emails, or texts that request personal information, such as your password, PIN, or any one-time passwords that are sent to your email or phone.”

            According to the court documents, the social engineering enterprise began before October 2023 and continued through at least March 2025. It grew from friendships developed on online gaming platforms and was comprised of individuals based in California, Connecticut, New York, Florida, and abroad.

            Mehta was a money launderer for the group which also included database hackers, organizers, target identifiers, callers, money launderers, and residential burglars targeting hardware virtual currency wallets.

            According to court documents, members of the enterprise stole cryptocurrency from victims throughout the United States through elaborate ruses committed online and through spoofed phone numbers. They then used the stolen virtual currency to purchase, among other things, nightclub services ranging up to $500,000 per evening, luxury handbags valued in the tens of thousands of dollars that were given away at nightclub parties, luxury watches valued between $100,000 and $500,000, luxury clothing valued in the tens of thousands of dollars, rental homes in Los Angeles, the Hamptons, and Miami, private jet rentals, a team of private security guards, and a fleet of at least 28 exotic cars ranging in value from $100,000 to $3.8 million.

            The original indictment alleges that on Aug. 18, 2024, Mehta’s co-conspirator Malone Lam and another associate contacted a victim in the District of Columbia and, through the communications with that victim, fraudulently obtained over 4,100 Bitcoin – valued then at $263 million, and valued this week at more than $384.5 million.

            Mehta first met the members of the in early 2024 through a money exchanger who was friendly with the owner of a Los Angeles exotic car dealership. The money exchanger solicited Mehta’s assistance with crypto-to-cash conversions in the tens of thousands of dollars. Mehta charged a 10% fee for converting the cryptocurrency to fiat cash.

            Mehta created multiple shell companies in 2024 for the purpose of laundering funds through bank accounts created to give the appearance of legitimacy. To facilitate crypto-to-wire money laundering services, Mehta received stolen cryptocurrency from the group which they had already laundered. Mehta then transferred the cryptocurrency to associates who further laundered it through sophisticated blockchain laundering techniques. The solen funds returned to Mehta’s shell company bank accounts through incoming wire transfers from additional shell companies organized by others throughout the United States.

            When members of the conspiracy requested cash, Mehta often delivered it himself. Mehta also performed wire transfers for the group, sending stolen funds to an exotic car dealership, a private jet company and real estate rental companies in exchange for a 10% fee for himself. 

             In addition, Mehta used his shell companies to facilitate exotic car purchases for members of the criminal enterprise. The co-conspirators — predominately 18-, 19-, and 20-year-olds — did not want Lamborghinis, Rolls Royces, Porsches, Ferraris and the like held in their true names because it would bring unwanted attention to their unexplained wealth as unemployed young men. Mehta titled the vehicles in the names of his shell companies to help disguise the true owners. He also sought out straw signers who would place their names on the car titles and purchase documents in exchange for payments which exceeded $10,000 per signing. In turn, Mehta would typically charge a 10% fee for his services.

            The FBI, IRS-CI, and U.S. Attorney’s Office are committed to helping prevent Americans from falling victim to cryptocurrency investment fraud schemes.

            If someone claiming to be a company “representative” contacts you and asks you to provide personal information or to verify your account by providing a code, you should initiate a new call to that company by dialing the company’s verified customer service line. You can visit the FBI’s website for more information about cryptocurrency investment fraud.

            This case is being investigated by the U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington D.C. Field Office. Significant investigative and operational support was provided by the FBI’s Los Angeles and Miami field offices.

            The matter is being prosecuted by Assistant United States Attorney Kevin Rosenberg, Co-Chief of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.

24cr417

Source: United States Department of Justice Criminal Division

Editor’s Note: This matter occurred on date indicated but not published at that time due to the government shutdown. Press release posted and made available following the return to normal operations.

Source: United States Department of Justice Criminal Division

Editor’s Note: This matter occurred on date indicated but not published at that time due to the government shutdown. Press release posted and made available following the return to normal operations.

Source: United States Department of Justice Criminal Division

David X. Sullivan, United States Attorney for the District of Connecticut, today announced that on November 5, 2025, DARYL TODD, 45, of Vernon, was sentenced by U.S. District Judge Stefan R. Underhill in Bridgeport to 84 months of imprisonment and five years of supervised release for enticing minors to send him sexually explicit images and videos on Snapchat.

According to court documents and statements made in court, an investigation by the FBI’s Child Exploitation Task Force revealed that Todd used Snapchat to communicate with minor girls and entice them to send him sexually explicit images and videos of themselves, sometimes in return for money that Todd sent the victims using the mobile payment service Cash App.  Todd also sent sexually explicit images of himself to the minor victims.

After Todd was arrested on March 7, 2024, analysis of his cellphone and tablet revealed sexually explicit images of minor females.

On April 8, 2025, Todd pleaded guilty to receipt of child pornography.

Todd, who is released on a $100,000 bond, is required to report to prison on January 7.

This matter was investigated by the FBI’s Child Exploitation Task Force, which includes federal, state, and local law enforcement agencies.  The case was prosecuted by Assistant U.S. Attorney Nancy V. Gifford through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation.

For more information about Project Safe Childhood, please visit www.justice.gov/psc.

To report cases of child exploitation, please visit www.cybertipline.com.

Source: United States Department of Justice Criminal Division

CHICAGO — The founder of a Chicago cryptocurrency company has been indicted in an alleged $10 million money laundering conspiracy.

FIRAS ISA founded Chicago-based VIRTUAL ASSETS LLC, which did business as Crypto Dispensers, and served as its Chief Executive Officer.  The company operated a cash-to-cryptocurrency exchange business, which included cryptocurrency ATMs at various locations throughout the United States, allowing individuals to convert cash, checks, or other monetary instruments into cryptocurrency.  An indictment unsealed in the Northern District of Illinois alleges that criminals and, in some instances, fraud victims, sent at least $10 million in proceeds from wire fraud and narcotics offenses to Crypto Dispensers, Isa, or a co-conspirator.  After the proceeds were sent, Isa converted or caused to be converted the cryptocurrency and thereafter transferred the cryptocurrency to virtual wallets to disguise the true source and ownership of the proceeds.  The indictment alleges that Isa knew the money was derived from fraud.   

Isa, 36, of Frankfort, Ill., and Virtual Assets LLC are each charged with one count of money laundering conspiracy.  The charge is punishable by a maximum sentence of 20 years in federal prison.

Isa and his company have pleaded not guilty to the charges.  A status hearing in federal court in Chicago is set for Jan. 30, 2026, before U.S. District Judge Elaine E. Bucklo.

The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Matthew J. Scarpino, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Chicago, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Adam Jobes, Special Agent-in-Charge of IRS Criminal Investigation in Chicago, including the IRS Chicago Cyber Crime Unit, and Ruth Mendonça, Inspector-in-Charge of the Chicago Division of the U.S. Postal Inspection Service.  The government is represented by Assistant U.S. Attorneys Bradley Tucker and Ramon Villalpando.

The public is reminded that an indictment 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.

Source: United States Department of Justice Criminal Division

BOSTON – A Dorchester man has been arrested and charged with trafficking firearms.

Joshua Morency, 28, was charged with one count of dealing in firearms without a license and one count of possessing a machinegun. Morency was arrested on Nov. 12, 2025 and was ordered detained pending a hearing scheduled for Nov. 19, 2025.

According to the charging documents, in August 2025, federal and state law enforcement began an investigation of Morency for unlawfully distributing firearms in the Boston area. Over the course of the investigation, Morency allegedly sold 21 firearms in undercover controlled purchases. It is alleged that the majority of the firearms purchased from Morency were 3D-printed, privately made firearms (commonly known as “ghost guns”).

The charge of dealing in firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of possessing a machinegun provides for a sentence of up to ten years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley; Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Geoffrey D. Noble, Superintendent of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Boston Police Department and the Suffolk County and Plymouth County Sheriff’s Offices. Assistant U.S. Attorneys Alexandra W. Amrhein and Anne Paruti and of the Major Crimes Unit are prosecuting the case.

This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

Like federal employees across the country, during the lapse in funding that began on October 1, 2025, and ended during the evening of November 12, 2025, the men and women of the United States Attorney’s Office for the District of Vermont were not paid for the work they performed. Nevertheless, during that time, the office’s accomplishments included the following:

   Cases Charged

•    On October 2, the Grand Jury returned an indictment charging Tashama Oates, 47, from Connecticut, with conspiracy to distribute, and possession with intent to distribute, methamphetamine, fentanyl, and cocaine. If convicted Oates faces a mandatory minimum sentence of at least 10 years’ imprisonment. On October 14, Oates was ordered detained pending trial.

•    On October 15, the Grand Jury returned a superseding indictment charging Dontayveus Thomas, 33, of Florida, with conspiracy to distribute fentanyl and cocaine, possession with intent to distribute fentanyl and cocaine, and possessing a firearm in connection with his drug conspiracy. If convicted Thomas faces a mandatory minimum sentence of at least 15 years’ imprisonment. He has been ordered detained pending trial.

•    On October 16, the Grand Jury returned an indictment charging Deandre Watson, 35, from Detroit, Michigan, with possession with intent to distribute cocaine base. If convicted, Watson faces a mandatory minimum sentence of at least 5 years’ imprisonment. Watson had previously been charged by criminal complaint, and on October 10 was ordered detained pending trial.

•    On October 16, the Grand Jury also returned an indictment charging Jamelle Willis, 39, from Brooklyn, New York, with possession with intent to distribute cocaine base. If convicted Willis faces a mandatory minimum sentence of at least 5 years’ imprisonment. The government sought Willis’s detention, but he was ordered released on conditions.

•    On October 22, Juan Pablo Espinoza-Morales, 51, of Mexico, was charged by criminal complaint with transporting nine aliens (from Brazil, Portugal, Guatemala, and Venezuela) into the United States from Canada. If convicted, he faces up to 10 years’ imprisonment. He has been ordered detained pending trial.

•    On October 23, the Grand Jury returned an indictment charging Isiah Smith, 38, from Brooklyn, New York, with conspiracy to distribute heroin and cocaine base. If convicted, Smith faces a mandatory minimum sentence of at least 10 years’ imprisonment. Smith had been previously charged by criminal complaint, and on October 15 was ordered detained pending trial.

•    On October 23, the Grand Jury returned an indictment charging Ezra Dillon, 34, from Burlington, Vermont, with a Hobbs Act robbery in connection with his brandishing a knife while stealing from City Market in Burlington. If convicted, Dillon faces a potential sentence of up to 20 years’ imprisonment. Dillon, who had been previously charged by criminal complaint, was ordered detained pending trial.  

•    On October 29, the Grand Jury returned an indictment charging Mark Billy Brown, 31, from Springfield, Massachusetts, with possession with intent to distribute cocaine and fentanyl. Brown faces up to 20 years’ imprisonment if convicted. Brown was previously charged by criminal complaint, and has been ordered detained pending trial.

•    On October 29, the Grand Jury returned an indictment charging Raymond Regimbald, 54, from Rutland, Vermont, with various offenses relating to the distribution of cocaine. If convicted, Regimbald faces up to 20 years’ imprisonment. He has been ordered detained pending trial.

•    On October 30, the Grand Jury returned a superseding indictment charging Maurice Jackson, 33, from Brooklyn, New York, with conspiracy to manufacture and distribute more than 280 grams of cocaine base. If convicted Jackson faces a mandatory minimum sentence of 15 years. He has been ordered detained pending trial.

•    On October 30, the Grand Jury returned an indictment charging Aldrain Ashby, 40, with distribution of fentanyl and that such distribution resulted in the death of one victim, and serious bodily injury to another. Ashby was also charged with distributing fentanyl within 1000 feet of a school in South Burlington. If convicted Ashby faces a mandatory minimum sentence of 20 years’ imprisonment. He has been ordered detained pending trial.

•    On October 30, the Grand Jury returned an indictment charging Mohamed Mubarak, 28, from Kenya, with making a false statement in connection with his attempt to acquire firearms from a licensed firearm dealer. If convicted, Mubarak faces up to 10 years’ imprisonment. He has been ordered detained pending trial.

•    On November 6, the Grand Jury returned a three-count superseding indictment charging Tremaine Knight, 43, from Hartford, Connecticut, with one count of murder-for-hire, one count of distribution of cocaine and fentanyl, and one count of possession with intent to distribute fentanyl. If convicted, Knight faces up to a lifetime prison sentence. He has been ordered detained pending trial.

•    On November 6, the Grand Jury returned a two-count indictment charging Haley Morgan, 21, from Burlington, Vermont, with enticing and attempting to entice a minor child to engage in unlawful sexual conduct and with distribution of child sexual abuse materials. If convicted, Morgan faces a mandatory minimum sentence of at least 15 years’ imprisonment. The government sought Morgan’s detention, but she was ordered released on conditions.

•    On November 6, the Grand Jury returned a six-count indictment charging Ayman Khalifa, 25, from St. Albans, Vermont, with distribution of cocaine and possession with intent to distribute cocaine and fentanyl. If convicted Khalifa faces a mandatory minimum sentence of at least five years’ imprisonment. He has been ordered detained pending trial.

•    On November 12, the Grand Jury returned an indictment charging Guadalupe Vargas, 43, from Arleta, California, with distributing methamphetamine, possession with intent to distribute cocaine base and fentanyl, being a felon in possession of a firearm, and possessing firearms in furtherance of a drug crime. If convicted, Vargas faces a mandatory minimum sentence of at least 10 years’ imprisonment. Vargas has been ordered detained pending trial.

•    On November 12, the Grand Jury returned an indictment charging Dejaneiro McDaniel, 20, from Lancaster, California, with distribution of cocaine base and fentanyl. If convicted McDaniel faces up to 20 years in prison. He has not had a court appearance yet.

   Sentencings

•    On October 6, Davonne Brown, 42, from Manhattan, New York, was sentenced to a 110-month prison term, to be followed by three years of supervised release following his plea to conspiring to carry a firearm in relation to a drug trafficking offense.

•    On October 9, Hussein Iman, 21, from Springfield, Massachusetts, was sentenced to a 120-month prison term, to be followed by three years of supervised release, following his guilty plea to drug and money laundering offenses.

•    On October 16, Davon Lee, 26, from Springfield, Massachusetts, was sentenced to a 60-month prison term, to be followed by three years of supervised release, following his guilty plea to possessing a firearm in furtherance of a drug trafficking offense.

•    On October 20, Meghan Cox, 40, from Laconia, New Hampshire, was sentenced to a 20-month prison term, to be followed by three years of supervised release, following her guilty plea to conspiring to commit a robbery by force on a commercial business. (On September 30, 2025, her co-defendant Christopher Boisvert had received a 74-month prison sentence following his guilty plea to bank robbery.)

•    On October 22, Gordon Richard, 77, from Georgia, Vermont, was sentenced to an 18-month prison term, to be followed by three years of supervised release, following his guilty plea to possession with intent to distribute cocaine.

•    On October 22, James Plunkett, 40, recently from Burlington, Vermont, was sentenced to a 78-month prison term, to be followed by a three-year term of supervised release, following his guilty plea to bank robbery.

•    On October 23, Joseph Cadorette, II, 38, from Williamstown, Vermont, was sentenced to a 40-month prison term, to be followed by three years of supervised release, following his guilty plea to using and maintaining a place to further drug distribution activities.

•    On October 27, Gabriel Lopes Da Silva Santos, 28, from Brazil, was sentenced to a 9-month prison term following his guilty plea to possessing a firearm as an alien in the United States without immigration status.

•    On November 3, Jaquan Rivera, 26, from New Britain, Connecticut, was sentenced to a 48-month prison term, to be followed by three years of supervised release, following his guilty plea to being a felon in possession of a firearm and possessing with intent to distribute fentanyl.

   Other Matters

•    The United States also successfully forfeited the Milton residence of Gordon Richard, because he had utilized that location to further the drug crime for which he was sentenced on October 22, as described above.

All indictments and complaints are allegations only. All defendants are presumed innocent unless and until they are convicted. Upon conviction, the Court’s sentencing decisions will be informed by the Federal Sentencing Guidelines and Statutory Sentencing Factors.

###
 

Source: United States Department of Justice Criminal Division

HUNTINGTON, W.Va. – Konnor Wolfe Lyons, 35, of Huntington, pleaded on November 17, 2025, to receipt or attempted receipt of child pornography.

According to court documents and statements made in court, on September 24, 2023, Lyons utilized a peer-to-peer file sharing computer network to download 464 digital media files containing child pornography. As part of his guilty plea, Lyons admitted that he knowingly downloaded the files via an internet connection and knew they depicted minors engaged in sexually explicit conduct including sadistic and masochistic abuse.

Lyons also admitted to additional criminal conduct. On September 2, 2024, Lyons utilized a peer-to-peer file-sharing computer network to download six digital media files containing child pornography. Lyons admitted that the files depicted minors engaged in sexually explicit conduct and he downloaded them using an internet connection.

On September 4, 2025, law enforcement officers executed a search warrant at Lyons’ residence and seized his cell phone. A forensic extraction of the cell phone revealed 1,546 images of child pornography. Lyons admitted that a majority of the images were cache files, generated when he previously used his cell phone to download child pornography from the internet.

Lyons is scheduled to be sentenced on March 2, 2026, and faces a mandatory minimum of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release, and a fine of up to $250,000.

United States Attorney Moore Capito made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Parkersburg Police Department.

United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Lesley C. Shamblin is prosecuting the case.

This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

This case is also the result of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:25-cr-76.

###

Source: United States Department of Justice

Monico Erich Gastelo, 44, of Fresno, California, was sentenced yesterday after being convicted of sexual exploitation of a child and receipt and distribution of child pornography. The Court sentenced Gastelo to 40 years in prison followed by 15 years of supervised release, during which time Gastelo’s access to children, computers, and the internet will be restricted.  He was also required to register as a sex offender for the rest of his life upon his release from custody.

According to court documents, in January 2019, Gastelo created a social media account in which he pretended to be an 18-year-old boy to enhance his chances of connecting with minors. Gastelo used the account and others to converse with minors — some of whom disclosed that they were 12 years-old — and repeatedly demanded sexually explicit content from them.

Between Jan. 1, 2020, and March 23, 2020, Gastelo began communicating on messaging platforms with other individuals sexually attracted to children. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms, describing the type of videos and images he preferred, including requesting videos of sex acts performed by toddlers. Forensic review of Gastelo’s phones revealed that he had more than 1,500 images and videos of CSAM saved on his device.

Gastelo’s conduct escalated in May 2020. A minor victim disclosed to law enforcement that he had been sexually exploited online and that an individual later identified as Gastelo had added him as a friend on social media. Gastelo had sent over a dozen images of his genitalia to this minor victim and insisted the minor reciprocate.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Eric Grant for the Eastern District of California made the announcement.

The Central California Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations investigated the case.

Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa for the Eastern District of California 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, please visit www.justice.gov/psc.

Source: United States Department of Justice

Four California residents were sentenced to prison for their roles in defrauding Medicare of nearly $16 million through sham hospice companies and laundering the fraudulent proceeds.

Yesterday, Juan Carlos Esparza, 33, of Valley Village, was sentenced to 57 months in prison and ordered to pay restitution of $1,825,012, and Susanna Harutyunyan, 39, of Winnetka, was sentenced to 15 months in prison and ordered to pay restitution of $2,822,963.

In October 2025, Karpis Srapyan, 35, of Winnetka, was sentenced to 57 months in prison and ordered to pay restitution of $3,203,574.

In September 2025, Mihran Panosyan, 47, of Winnetka, was sentenced to 57 months in prison and ordered to pay restitution of $4,680,146.

Additionally, in May 2025, Petros Fichidzhyan, 44, of Granada Hills, was sentenced to 12 years in prison and ordered to pay restitution of $17,129,060.   

According to court documents, Esparza schemed with others, including co-defendants Fichidzhyan and Srapyan, to bill Medicare for hospice services that were medically unnecessary and never provided. From July 2019 until January 2023, Esparza, Fichidzhyan, and Srapyan operated four sham hospices, one of which, House of Angels Hospice, was owned by Esparza. Fichidzhyan, Esparza and Srapyan concealed the scheme by using foreign nationals’ names and personally identifiable information to act as straw owners for the hospices and to open bank accounts, submit information to Medicare and sign property leases. They also controlled and used cell phones in the names of the foreign nationals in furtherance of the scheme. In total, Medicare paid the sham hospices nearly $16 million.

Fichidzhyan, Esparza, and Srapyan worked with others, including co-defendants Harutyunyan and Panosyan, to launder the fraudulent proceeds. As part of the money laundering scheme, the defendants maintained fraudulent identification documents and other documents associated with the sham hospices, as well as bank documents, checkbooks and credit and debit cards in the names of purported foreign owners. After defrauding Medicare, the defendants moved the funds between various assets and accounts, including bank accounts in the names of shell companies, to conceal the scheme.

In July 2025, Esparza pleaded guilty to health care fraud and transactional money laundering, Harutyunyan pleaded guilty to transactional money laundering, and Srapyan pleaded guilty to conspiracy to commit health care fraud and transactional money laundering. In June 2025, Panosyan pleaded guilty to concealment money laundering. In February 2025, Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and concealment money laundering. At sentencing in May 2025, the court preliminarily ordered the forfeiture of two homes bought with fraud proceeds. The government has also seized $2,920,383 from bank accounts associated with the fraud.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

FBI and HHS-OIG are investigating the case.

Trial Attorneys Sarah E. Edwards, Allison L. McGuire, and Michael Bacharach of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Tara B. Vavere for the Central District of California is handling asset forfeiture.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.