Author: MIL-OSI Publisher

Source: United States Department of Justice Criminal Division

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Brian R. Cleland, age 72, pleaded guilty on November 17, 2025, to one count of conspiracy to launder monetary instruments in the amount of approximately $46.4 million. Cleland is the third defendant to plead guilty in connection with this case, following the guilty pleas of Bruce Jin in January 2025 and Carlos A. Grijalva in May 2025. In April 2025, Cleland and Grijalva were charged in a superseding indictment with conspiracy to launder monetary instruments and other offenses, after charges were originally filed against all three defendants in August 2023.

According to United States Attorney Brian D. Miller, Cleland admitted that, from 2021 to early 2022, he, Grijalva, and Jin, along with other unnamed coconspirators, agreed to launder state unemployment compensation funds that they knew had been obtained through fraud. Cleland also admitted that he and the others entered into a series of agreements that made it appear as if they were operating legitimate businesses selling masks and other COVID19 personal protective equipment while knowing that funds obtained and laundered through their companies were derived from fraudulently obtained state unemployment compensation (“UC”) benefits.

Cleland also admitted to knowing that bank accounts of identity theft victims were unlawfully created and accessed across the United States and that fraudulent UC claims were generated and paid to these accounts. Cleland also admitted to knowing that this fraudulent activity was being conducted by fraudsters located in China. Through this pattern of financial activity, tens of millions of dollars of fraudulent UC payments were issued to accounts by the Pennsylvania Treasury Department and other state treasuries around the United States.

Cleland also admitted that he and Grijalva then provided the bank account information of these identity theft victims to payment processing companies to generate ACH payments to accounts controlled by him and Grijalva. This bank account information, including account numbers and routing numbers, was from an individual in China, known in the superseding indictment as “COCONSPIRATOR 2.”

Cleland admitted that he and Grijalva transferred over $46 million through this pattern of unlawful activity and that he and Grijalva discussed, on a number of occasions, that the supposed sale of COVID-19-related PPE would be their cover story for it. They also used code language to hide the true nature of their financial activity. For example, they used the term “call center” to refer to the people conducting the fraudulent activity from China and “product” to refer to the fraudulent commercial activity that they conducted with those overseas criminal actors.

After that, Cleland and Grijalva, using a number of different bank accounts, transferred over $30 million to companies controlled by Bruce Jin, as well as transferring additional funds to an individual known as “COCONSPIRATOR 1” in the superseding indictment. Cleland admitted that he and Grijalva made transfers to Jin knowing that Jin would, in turn, transfer at least a portion of these funds to parties located in China.

Cleland also admitted that he and Grijalva each made an estimated $2.2 million dollars in personal profit from the scheme. Together, their profit represents approximately 10% of the funds that they were responsible for transferring.

Cleland agreed to certain property forfeitures as part of his plea agreement, including approximately $46.4 million in US currency, as well as the contents of several bank accounts and real properties located in Hawaii and California that were purchased using funds traceable to the charged offenses. One of these properties, located in California, was purchased in the name of one of Grijalva’s family members.

All three named defendants are now scheduled to be sentenced in 2026. 

The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General. Assistant U.S. Attorneys Ravi Romel Sharma and K. Wesley Mishoe and Trial Attorney Patrick B. Gushue of the Department of Justice’s Money Laundering & Asset Recovery Section, Bank Integrity Unit, are prosecuting the case. 

The U.S. Attorney General previously established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

The maximum penalty for conspiracy to launder monetary instruments is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

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Source: United States Department of Justice Criminal Division

PENSACOLA, FLORIDA – Kevin Noel Ochoa Venegas (a/k/a Kevin Noel Ochoa-Venegas, a/k/a Kevin Noel Banegas Banegas, a/k/a Kevin Noel Banegas, a/k/a Kevin Banegas, a/k/a Kevin Noel Banega), 32, a citizen of Honduras, pleaded guilty in federal court to illegal reentry of a removed alien. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “This criminal alien has demonstrated a brazen disregard for our national immigration laws, as evidenced by his repeated deportations and illegal returns to our country.  He has also clearly shown he is a threat to our communities while unlawfully present here through his other criminal acts, including his commission of a sex offense. Thanks to the outstanding work of the Bay County Sheriff’s Office and our federal law enforcement partners, this criminal alien sex offender has been removed from our streets. My office stands ready to aggressively prosecute offenders like this to fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America from the criminal aliens who mistakenly believe they can violate our national and state laws with impunity.”

Court documents reflect that on April 11, 2025, the defendant was arrested in Bay County, Florida, for driving without a valid license. Law enforcement determined that the defendant was a citizen of Honduras who was illegally present in the United States. An investigation revealed that the defendant was previously removed from the United States in 2016, and again in 2021 after he was convicted for a sex crime that required him to register sex offender. The defendant did not apply for or receive permission to reenter the United States since his last removal from the United States in 2021.

The defendant faces a maximum of 20 years’ imprisonment, and up to three years of supervision upon his release. An ICE detainer has been lodged against the defendant, and he will begin deportation proceedings after he serves his term of federal prison.

The case involved a joint investigation by the Bay County Sheriff’s Office and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Justin M. Keen.

Sentencing is scheduled for December 5, 2025, at 3:00 pm at the United States Courthouse in Tallahassee, Florida, before United States District Judge Mark E. Walker.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Source: United States Department of Justice Criminal Division

PENSACOLA, FLORIDA – Malcolm Terrell Louis, 39, of Pensacola, Florida, pleaded guilty in federal court to two counts of possession of controlled substances with intent to distribute, two counts of possession of a firearm in furtherance of a drug trafficking offense, and two counts of possession of a firearm and ammunition by a convicted felon. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “This successful prosecution is the result of the outstanding investigative work by the Escambia County Sheriff’s Office and our federal law enforcement partners who are committed to ending the flow of drugs and violence plaguing our communities. My office will continue to aggressively prosecute these repeat offenders as we fulfill the promise made by President Donald J. Trump and Attorney General Pam Bondi to Take Back America from violent drug traffickers and career criminals who have terrorized our streets for far too long.”

Court documents reflect that in December of 2024, law enforcement located an unattended, parked vehicle that was left running at a housing complex in Pensacola. Law enforcement could see multiple bags of narcotics and a firearm in the vehicle. The defendant’s fingerprints were located on the vehicle and on one of the bags containing methamphetamine and cocaine. Law enforcement later executed a search warrant at a residence in Pensacola. The defendant was present at the residence, and was found to be in possession of narcotics, including methamphetamine and cocaine, and firearms. The defendant is a multi-time convicted felon.

The defendant faces up to life imprisonment. 

The case involved a joint investigation by the Escambia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.

Sentencing is scheduled for January 8, 2026, at 10:00am at the United States Courthouse in Pensacola before United States District Judge T. Kent Wetherell, II.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

Source: United States Department of Justice Criminal Division

GAINESVILLE, FLORIDA – Octavius Durdley, 47, of Archer, Florida, was sentenced to six years in federal prison and a lifetime of supervised release after a jury found him guilty of failing to register as a sexual offender under the Sexual Offender Registration and Notification Act. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “Keeping our communities safe from the disgusting sexual predators who seek to exploit and victimize our children remains one of the top priorities of my office. I appreciate the excellent work by our federal law enforcement partners to investigate this offender, and remain committed to aggressively prosecuting these offenses to ensure our children can grow up safe from the threats posed by criminals like this defendant.”

According to court records and trial testimony, the defendant, who was designated as a sex offender following a 2010 conviction for receipt and possession of child pornography, purposefully did not complete the required registration upon his release from prison in December 2024. This is the defendant’s second conviction for failing to register as a sex offender in the Northern District of Florida. The defendant was also sentenced to an additional year and two months in prison for violating the conditions of his supervised release, for a total of seven years and two months to be served.

Acting United States Marshal Greg Leljedal remarked: “If you are a convicted sex offender and fail to register, the U.S. Marshals will track you down and bring you to justice. Octavius Durdley attempted to evade the law and will now be behind bars for the next 7 years.”

This conviction was the result of an investigation by the United States Marshals Service. The case was prosecuted by Assistant United States Attorney Adam Hapner.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Source: United States Department of Justice Criminal Division

SAN FRANCISCO – Antonietta Nguyen was sentenced to 36 months in federal prison for her role in orchestrating multiple fraud schemes against ABS Seafood, Inc., a seafood wholesaler in San Francisco where Nguyen previously served as Chief Financial Officer.  Senior U.S. District Judge Susan Illston handed down the sentence on November 14, 2025.  

At the conclusion of a two-week trial in June 2025, a federal jury convicted Nguyen of 12 felony counts, including wire fraud, conspiracy to commit wire fraud, money laundering, and tax evasion.  According to court documents and evidence presented at trial, Nguyen used her access to ABS Seafood’s bank account and credit cards to divert millions of dollars to pay off her personal credit card, pay personal expenses on her corporate credit card, and authorize payment of fraudulent invoices from a seafood exporter in the Philippines that was formally owned by Nguyen’s brother.  Nguyen used the stolen funds to pay property taxes for her residence and a rental property, her children’s college tuition, and over a million dollars in luxury goods, among other expenses.

From at least 2015 and continuing into 2020, Nguyen misappropriated approximately $2.7 million in company funds.  Nguyen traveled the world to purchase luxury purses, scarves, and other items, which she stored in a designated room in her home.  She also provided corporate credit cards to her family members and authorized charges including luxury vacations that were ultimately paid for by ABS Seafood.

The Court found that over the course of six-and-a-half years, Nguyen cost ABS Seafood over $9 million through her fraud schemes.

The jury also convicted Nguyen of evading federal taxes by failing to report her true income from ABS Seafood.  Nguyen’s personal income taxes omitted the millions in benefits that she received from ABS Seafood through the payment for personal expenses.  In total, the Court found that Nguyen owed an additional $121,336.08 in unpaid taxes related to the unreported income.

United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.      

In addition to the prison term, Judge Illston also sentenced the defendant to a three-year period of supervised release.  The defendant will begin serving the sentence on February 6, 2026.  A restitution hearing is scheduled for January 16, 2026.  

Assistant U.S. Attorneys Sailaja M. Paidipaty and Colin Sampson are prosecuting the case with the assistance of Sara Slattery.  The prosecution is the result of an investigation by the FBI and IRS-CI. 
 

Source: United States Department of Justice Criminal Division

BUFFALO, N.Y.–U.S. Attorney Michael DiGiacomo announced today that Edward Forrester, 67, of Attica, NY, was charged by criminal complaint with production of child pornography and possession of child pornography following a prior conviction. The charges carry a mandatory minimum penalty of 15 years in prsion and a maximum of 30 years.

Assistant U.S. Attorneys Aaron J. Mango and Evan K. Glaberson, who are handling the case, stated that according to the complaint, in April 2022, the National Center for Missing and Exploited Children (NCMEC) alerted the New York State Police that a Google user identified as “edward forrester,” uploaded files of suspected child pornography to YouTube. One of the uploaded videos was described as “UNFAMILIAR and may depict NEWLY PRODUCED and/or HOMEMADE CONTENT.” Further investigation identified a victim in the video.

On May 5, 2022, a search warrant was executed on a camper and two vehicles that Forrester stored at his brother’s property in Wyoming County. A cell phone and tablet were seized, and Forrester was charged in New York State Court with one count of Sexual Abuse First and Endangering the Welfare of a Child. Investigators also executed a search warrant at Forrester’s residence at the time in Corfu, NY, during which two more cell phones were seized. A subsequent forensic review recovered four images of suspected child pornography, including an image of the victim.

FBI Buffalo is seeking assistance from the public. Members of the public, who have specific information related to this case, are urged to contact the FBI Buffalo Field Office at (716) 617-3250. A photo of Forrester is attached.

The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Philip Tejera, and the New York State Police, under the direction of Major Amie Feroleto.

The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.   

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Source: United States Department of Justice Criminal Division

BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that 3rd Avenue Transit, Inc. and Y&M Transit Corporation have agreed to pay $4.4 million to resolve False Claims Act allegations that they improperly obtained Paycheck Protection Program (PPP) loans from the U.S. Small Business Administration (SBA) for which they were not eligible.

The PPP was an emergency loan program established by the Coronavirus Aid, Relief and Economic Security (CARES) Act in March of 2020 and expanded by the American Rescue Plan Act (ARPA) in 2021. Under the PPP, eligible businesses could obtain loans to cover payroll costs or other specified business expenses. PPP loans were guaranteed by the Small Business Administration (SBA) and subject to forgiveness if spent on eligible expenses. However, PPP loans were only available to a subset of businesses that met the eligibility criteria. As one condition to second-draw loan eligibility, the applicant company and its affiliates must have had no more than 300 employees collectively. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including regarding their size, number of employees, and affiliate entities.

3rd Avenue and Y&M applied for and received a total of $2,402,800 in second-draw PPP loans, certifying that they were a small business with fewer than 300 employees. The government contends that 3rd Avenue and Y&M, along with a third company, were affiliates under the PPP rules. As a result, 3rd Avenue and Y&M were ineligible for the second-draw loans because they employed more than 300 employees.

“Paycheck Protection Program loans were intended to help small businesses during the Covid-19 pandemic,” stated U.S. Attorney DiGiacomo.  “Our office continues to invest time and resources to hold accountable those who obtained PPP funds for which they were not eligible.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement or judgment. 

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

This matter was handled by Assistant U.S. Attorney Jonathan W. Ferris, and Investigator Margaret McFarland, with assistance from the SBA’s Office of General Counsel.

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

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Source: United States Department of Justice Criminal Division

Last week, a federal jury in Las Vegas convicted a Mexican national of operating a scheme in which he claimed to be an IRS officer and misrepresented to victims that he was able to obtain hundreds of thousands of dollars for them from a fictitious IRS program.

The following is according to court documents and evidence presented at trial: Francisco Ivan Velazquez, a Mexico national, falsely held himself out to be an employee of the IRS and claimed to his victims that he could secure large monetary payments for them from the IRS. Velazquez falsely claimed that such funds were available from a purported IRS program that allowed people who had previously lost a home to foreclosure to recoup money by applying to the IRS and filing certain documents. Velazquez advised the victims that, in exchange for a fee, he would submit an application for them to recover the funds. In some instances, Velazquez then aided in the presentation of a false tax return with the IRS on behalf of the victim that claimed that the victim had federal tax withholdings of $100,000 or more and requested the withholdings be refunded.

Velazquez was convicted of three counts of wire fraud, one count of aiding the presentation of a false tax return, and two counts of impersonating an IRS officer. The jury did not return a verdict on four counts of aiding in the preparation of false tax returns.

Velazquez is scheduled to be sentenced on Feb. 18, 2026, and faces a maximum penalty of 20 years in prison for each wire fraud count, a maximum penalty of three years in prison for aiding in the presentation of a false tax return, and a maximum penalty of years in prison for each count of impersonating an officer or employee of the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

IRS Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case.

Source: United States Department of Justice Criminal Division

MIAMI – A federal jury in Fort Lauderdale convicted two Maryland brothers who owned a pharmaceutical wholesale company on Oct. 29 for their roles in a scheme to purchase and resell more than $92 million worth of illegally obtained misbranded HIV drugs.

According to court documents and evidence presented at trial, Patrick Boyd, 47, and Charles Boyd, 43, of Easton, Maryland, owned and operated a pharmaceutical wholesale company called Safe Chain Solutions.  Their co-owner and co-defendant, Adam Brosius, previously pleaded guilty to conspiring to commit wire fraud with the Boyds.

“This case exposed a reckless disregard for human life,” said U.S. Attorney Jason A. Reding Quiñones. “The defendants put profit ahead of patient safety, moving more than $92 million in tampered, black-market HIV medication through pharmacies across the country. Our Office will continue holding accountable those who endanger the public and betray the trust that underpins our healthcare system.”

Trial evidence showed that the Boyds conspired with at least five black-market suppliers to purchase HIV drugs obtained through patient “buyback schemes.” The Boyds then resold the drugs to thousands of pharmacies nationwide—including South Florida—while using falsified paperwork to make the medications appear to have been purchased from legitimate distributors.

One of their suppliers, Peter Khaim, owner of Boulevard 9229, testified that he purchased HIV drugs from patients on the street, removed the original prescription labels, and packaged the bottles in cardboard boxes—sometimes scavenged from trash on pick-up days—before shipping them to the Boyds. On one occasion, Khaim used a diaper box he found on the street to ship the drugs because it was sturdy enough to hold the bottles. In a separate shipment, he sent approximately $500,000 worth of HIV medications in a single cardboard box to Safe Chain Solutions. Many of the bottles were dirty, scuffed, and missing patient instructions, yet the Boyds accepted and resold them with falsified paperwork concealing their origin. 

In total, the Boyds purchased and resold more than $35 million in black-market HIV drugs from Boulevard 9229 and more than $42 million from another supplier, Gentek, whose leaders were based in Miami.  One Gentek leader has already been convicted and sentenced to 15 years in prison.

Throughout the conspiracy, pharmacies repeatedly complained that the drugs purchased from Safe Chain Solutions were dirty, tampered with, or contained the wrong medication. On at least a dozen occasions, pharmacies reported receiving bottles labeled as HIV medication that instead contained other drugs, including Seroquel, an anti-psychotic, and pain medication.

One patient who ingested Seroquel believing it was his prescribed HIV medication lost consciousness for 24 hours.  Evidence at trial established that missing even a single dose of HIV medication can increase a patient’s viral load and heighten community transmission risk in areas with high HIV infection rates.

A former attorney for the Boyds testified that they concealed and misrepresented material information while seeking legal advice about pharmacy complaints and reporting obligations to the Food and Drug Administration (FDA).  According to the evidence, the Boyds failed to report numerous incidents to the FDA involving pharmacies that had received incorrect or tampered medications.

Safe Chain Solutions’ former Director of Compliance testified over four days that she repeatedly warned the Boyds about the risks of purchasing from black-market suppliers, but her concerns were ignored. She testified that Charles Boyd falsely told her the company could continue doing business with Boulevard 9229 because the lawyers had approved it, contradicting both attorney testimony and contemporaneous emails.      

A second former Compliance Manager testified that the Boyds instructed her not to document concerns in writing and often responded to compliance questions by saying, “Figure it the **** out,” or “FITFO,” a phrase she said was commonly used by the Boyds.

After a multi-week trial, the jury convicted the Boyds each of one count of conspiracy to introduce misbranded drugs, two counts of introducing misbranded drugs into interstate commerce, one count of conspiracy to traffic in medical products with false documentation, one count of conspiracy to commit wire fraud, and one count of wire fraud.

The Boyds each face a maximum penalty of five years in prison for the conspiracy to introduce misbranded drugs count, three years in prison for each count of introducing misbranded drugs into interstate commerce, 15 years in prison for conspiracy to traffic in medical products with false documentation, 20 years in prison for conspiracy to commit wire fraud, and 20 years in prison for the wire fraud count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Reding Quiñones for the Southern District of Florida; Acting Special Agent in Charge Fernando Porras of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG), Miami Regional Office; and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office, made the announcement.

HHS-OIG Miami and FBI Miami are investigating the case.

Assistant U.S. Attorney Alexander Thor Pogozelski and Trial Attorney Jacqueline Zee DerOvanesian of the Department of Justice’s Fraud Section are prosecuting the case.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20255.