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FORFEITURE ACTIONS RESULT IN REMISSION OF MORE THAN $2.8 MILLION TO OKALOOSA VICTIM CHARITIES

Source: United States Department of Justice Criminal Division

PENSACOLA, FLORIDA – John P. Heekin, United States Attorney for the Northern District of Florida, announced today that more than $2.8 million in unlawfully retained bingo profits forfeited through criminal asset forfeiture actions have been sent to ten Okaloosa County charities as part of the Department of Justice’s remission process.

U.S. Attorney Heekin said: “Victims of crime too often suffer losses at the hands of criminals that cannot ever be restored, but my office is committed to taking action to ensure those offenders cannot reap or retain the benefits of their wrongdoing, and we will remit the proceeds of those forfeitures whenever possible to compensate victims to the greatest extent. This case required substantial effort from our state and federal law enforcement partners to investigate and bring the defendants to justice, and this multi-million dollar recovery by my office and remission to victim charities will have a meaningful impact on our community.”

Larry and Dixie Masino were federally prosecuted and sentenced for illegal gambling and money laundering charges stemming from their ownership and operation of Racetrack Bingo in Fort Walton Beach, which purported to conduct bingo games and provide the proceeds to a group of local non-profit organizations. The Masinos made it appear that Racetrack Bingo was running charitable bingo when they were actually illegally conducting bingo and pocketing a substantial amount of the proceeds for themselves. Between 2006 and 2015, the Masino family personally retained and laundered over $5.8 million in illegal gambling profit that should have either gone to charities running the bingo games or returned to the players in the form of prizes.

As part of their sentences, the Masinos were ordered to forfeit substantial sums of money seized from bank accounts and three real properties. Funds forfeited and deposited into the Department of Justice Assets Forfeiture Fund may be used to compensate victims and restore losses caused by criminal conduct. The United States Attorney for the Northern District of Florida requested and received permission from the Department of Justice’s Money Laundering and Asset Recovery Section (MLARS) to remit the forfeited funds back to the victim charities. MLARS administers the Department’s Asset Forfeiture Program victim compensation process to ensure forfeited funds are returned to victims when possible.

The forfeited assets in this case were converted to over $2.8 million, which will be shared among the following member non-profit organizations making up Fort Walton Beach Charities LLC:

  • The ARC of the Emerald Coast, formerly Horizons of Okaloosa County, Inc.;
  • Boys and Girls Club of the Emerald Coast;
  • Emerald Coast Science Center;
  • Habitat for Humanity in Okaloosa County;
  • Horizons Foundation of Okaloosa County;
  • Mental Health Association of Okaloosa and Walton Counties;
  • Northwest Florida Ballet;
  • Northwest Florida Fair Association;
  • Okaloosa County Festival Association; and
  • Order Sons of Italy in America, Joseph B. Franzalia Lodge 2422.

“After all these years of investigation and legal battles, I am thrilled to see these forfeited funds returned to the deserving charities of Okaloosa County,” said Sheriff Eric Aden. “This long-awaited justice not only holds the perpetrators accountable but also restores vital resources to organizations that uplift our community.”

“Through financial fraud, Larry and Dixie Masino betrayed charities providing important services to their communities,” said Special Agent in Charge Ron Loecker, IRS Criminal Investigation Tampa Field Office. “I am proud of the work IRS Criminal Investigation special agents, our federal, state, and local law enforcement partners, along with the U.S. Attorney’s Office did to ensure these charities were made whole again.”

The forfeiture actions were the result of a joint investigation by the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Alicia H. Forbes.

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.

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Rapid City Man Found Guilty of Attempted Enticement of a Minor following Federal Jury Trial

Source: United States Department of Justice Criminal Division

RAPID CITY – United States Attorney Alison J. Ramsdell announced that a jury has convicted Brandon Bishop, age 38, of Rapid City, South Dakota, of Attempted Enticement of a Minor following a two-day jury trial in federal district court in Rapid City. The verdict was returned on September 23, 2025.

The charge carries a mandatory minimum of 10 years up to life in custody and/or a $250,000 fine, a minimum of five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.

Bishop was arrested and federally indicted in August 2024 following the annual undercover operation targeting internet predators, which was conducted in western South Dakota during the Sturgis Motorcycle Rally. Over the course of five days, Bishop engaged with a person he believed to be a 13-year-old girl on MeetMe, an online “hookup” application, and via text messages. The minor was actually the undercover persona of a Rapid City Police Detective, assigned to the South Dakota Internet Crimes Against Children Task Force. When the minor declined to send him a naked photo of herself, which Bishop requested, Bishop asked her to have sex with him and described various sex acts to her. Bishop offered alcohol, drugs, and money to the minor if she would “chill” with him. On August 6, 2024, Bishop rode his bicycle to a nearby gas station to meet the minor but was instead confronted by law enforcement agents. Bishop fled on foot and threw his cellular phone into a storm drain. The phone was recovered, and evidence of Bishop’s crimes was located on it. Bishop later claimed he believed the person he was communicating with was an adult.

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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

This case was investigated by the South Dakota Division of Criminal Investigation’s Internet Crimes Against Children Task Force, the Rapid City Police Department, and Homeland Security Investigations. Assistant U.S. Attorney Heather Knox prosecuted the case.

A presentence investigation was ordered, and a sentencing date has been set for January 12, 2026. The defendant was remanded to the custody of the U.S. Marshals Service. 

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Manhattan Teacher Charged With Possession And Distribution Of Child Pornography

Source: United States Department of Justice Criminal Division

United States Attorney for the Southern District of New York, Jay Clayton, Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel, Commissioner of the New York City Police Department (“NYPD”), Jessica S. Tisch, and Special Commissioner of the Office of the Special Commissioner of Investigation for the NYC School District (“SCI”), Anastasia Coleman, announced the unsealing of a Complaint charging CHRISTOPHER WARD with possessing and distributing hundreds of images and videos of child pornography that depict pre-pubescent children engaging in sexually explicit conduct.  WARD was arrested yesterday and presented before U.S. Magistrate Judge Sarah L. Cave in Manhattan federal court.

“Every day, Christopher Ward stood at the front of a classroom of first graders while allegedly storing hundreds of images exploiting children just like them,” said U.S. Attorney Jay Clayton.  “The women and men of our Office are committed to ridding New York of child pornography.  Together with our partners at Homeland Security Investigations and the New York City Police Department Special Investigations Unit, we will aggressively pursue and prosecute those who create, possess, and distribute child pornography.”

“Christopher Ward, a first-grade teacher, is accused of possessing and distributing child pornography, and even acknowledging his sexual attraction to his students—allegations that are chillingly disturbing and strike at the heart of every parent’s fears,” said HSI Special Agent in Charge Ricky J. Patel. “With over four years spent in close proximity to young children, the gravity of these accusations cannot be overstated.  The safety of our children demands our unflinching attention, and HSI will not stop until the full facts are exposed and every offender faces the consequences.”

“Every morning, New York City parents trusted Christopher Ward with the safety of their first graders in his classroom. In return, he made their worst nightmare a reality—allegedly exploiting his students, storing sexually explicit images and videos of them, and distributing content for his own twisted pleasure,” said NYPD Commissioner Jessica S. Tisch.  “These horrifying acts have no place in our city and Ward will face our justice system for his predatory behavior on our most innocent.  I thank the NYPD investigators, along with our partners at HSI, SCI, and the U.S. Attorney’s Office, for putting an end to this sickening behavior.”

“Christopher Ward’s actions as alleged are repugnant—and violate the trust of his school, his students, and the community overall,” said SCI Special Commissioner Anastasia Coleman.  “Possession of child pornography and other types of exploitation of minors are among the most serious issues society combats, and SCI works tirelessly to root out such misconduct from the New York City school district.  SCI is grateful for its partners in law enforcement for their efforts in bringing Christopher Ward to justice.”

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

From approximately September 2024 to approximately September 2025, WARD worked as a first-grade teacher at an elementary school in Queens, New York. Prior to that, from approximately January 2021 to approximately June 2024, WARD worked as a first-grade teacher at a school in Manhattan, New York.   

From at least in or about July 14, 2024, through in or about July 22, 2025, WARD possessed and distributed hundreds of images and videos constituting child pornography on his account with an electronic mobile messaging application.

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WARD, 37, of Farmingdale, New York, is charged with one count of receiving and distributing material containing child pornography, including files containing sexually explicit images of minors, and one count of possessing child pornography, including images and videos of prepubescent minors and minors who had not attained 12 years of age.  Both counts carry a maximum sentence of 20 years in prison.

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

Mr. Clayton praised the efforts of HSI, their agents and Task Force Officers; the NYPD Special Investigations Unit, Computer Crimes Squad; the SCI Investigators; the Complex Analytics and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area; the Special Agents and Task Force Officers of the U.S. Attorney’s Office for the Southern District of New York; and the Southern District of New York Digital Forensic Unit.

The case is being handled by the Office’s General Crimes Unit.  Assistant U.S. Attorney Adabelle U. Ekechukwu 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.

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

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Texas Man Guilty of Defrauding Georgia Church Sentenced to Prison

Source: United States Department of Justice Criminal Division

Defendant Sentenced to 235 Months in Prison, Ordered to Pay Nearly $4 Million in Restitution

ALBANY, Ga. – A Texas man acting as an insurance adjuster who cheated an Albany church out of millions of dollars paid out by its insurance company to repair its facilities heavily damaged by Hurricane Michael in 2018 was sentenced to serve more than 19 years in prison and ordered to pay nearly $4 million in restitution to victims in several states.

Andrew Mitchell, formerly Andrew Aga, 46, of Houston, Texas, was sentenced to serve 235 months in prison to be followed by three years of supervised release and was ordered to pay $2,895,903.01 in restitution to the Brotherhood Mutual Insurance Company. In addition, Mitchell was ordered to pay $1,082,993.41 to other victims after he admitted in open court to similar crimes in Texas and Louisiana. Mitchell’s sentence will run concurrently to a prison sentence imposed in the 29th Judicial District Court of St. Charles Parish, Louisiana, in Case Number 2023-CR-26, at the conclusion of which he will continue to serve the remaining balance of 18 months imprisonment in this case. Mitchell previously pleaded guilty to one count of mail fraud on March 27. There is no parole in the federal system.

“Andrew Mitchell will spend nearly two decades in prison for concocting a devious scheme to swindle insurance money from a historic downtown Albany church, a crime he’s committed in other communities after natural disasters,” said U.S. Attorney William R. “Will” Keyes. “Our office and law enforcement partners will relentlessly pursue and prosecute these types of fraudsters who prey on people at their most vulnerable.”

“At a time when victims were still reeling from the devastation of Hurricane Michael, Andrew Mitchell took advantage of that vulnerability for his own personal gain,” said Georgia Insurance Commissioner John F. King. “I am proud of our investigators and their work in conjunction with the U.S. Attorney’s Office to protect hardworking Georgia families and hold the defendant responsible for his actions.”

According to court documents and statements referenced in court, Friendship Missionary Baptist Church on Pine Avenue in Albany was damaged by Hurricane Michael, a Category 5 hurricane that made landfall near Mexico Beach, Florida, on Oct. 10, 2018. The storm’s eyewall struck the Albany community as a Category 3 hurricane with winds of up to 115 miles per hour and significant rainfall. Friendship Baptist Church sustained damage; an initial inspection revealed at least $216,000 in damages. The facility was insured by Brotherhood Mutual Insurance Company of Fort Wayne, Indiana. Brotherhood Mutual issued a check for $183,207.89 on Nov. 15, 2018, to Friendship Baptist to cover partial repairs, which was sent via the United States Postal Service (USPS) and was deposited.

In November 2018, a man identifying as Eric Goldberg and who claimed to be associated with Blue Key Construction, met with the church’s pastor, Carl White, to discuss serving as the contractor. A second meeting was held on Nov. 20, 2018, between Goldberg and White, along with Friendship Missionary Baptist Church’s Board of Directors Co-Chairperson Willie Thomas. Goldberg provided a contract authorizing Mitchell, aka “Aga,” to act as a public adjuster.

In December 2018, Mitchell began emailing Brotherhood Mutual representing himself as a Georgia public adjuster employed by International Consulting Group. He was reportedly associated with several corporate entities including but not limited to International Consulting Group; Texas Wind Consultants, LLC; and Loss Consultants of Texas, LLC d/b/a Texas Claim Consultants. In January 2019, Mitchell emailed Brotherhood Mutual an itemized estimate for repairs at Friendship Missionary Baptist Church totaling roughly $2.1 million on the letterhead of “Georgia Claim Consultants.” In February 2019, Mitchell provided Brotherhood Mutual with a second repair estimate for approximately $5 million. On March 4, 2019, Mitchell emailed an adjustor with Syndicate Claims a proof of loss indicating that the damages to Friendship Missionary Baptist Church would cost $7.1 million to repair. On March 13, 2019, Mitchell emailed a follow-up proof of loss indicating the total repair cost was $6.1 million.

On July 10, 2019, the insurance company issued a check to the church and Mitchell for $3,376,102.18, mailed to Albany. Mitchell emailed asking the check be reissued and made jointly payable to Friendship Missionary Baptist Church and Loss Consultants of Texas, LLC, d/b/a Texas Claim Consultants. On July 19, 2019, Brotherhood Mutual issued the check payable to the church and Mitchell, which was mailed to the church. On July 24, 2019, Mitchell emailed Brotherhood Mutual requesting that the payees be changed to Friendship Missionary Baptist Church and Loss Consultants of Texas, LLC d/b/a Texas Claim Consultants. He also asked that the reissued check be mailed to an address in Lake Shores, Texas. On July 24, 2019, Brotherhood Mutual issued the check and mailed it as requested. An endorsement on behalf of Friendship Missionary Baptist Church was forged.

On July 30, 2019, C.W. received and negotiated a check for $50,000 from Texas Wind Consultants, LLC, which Mitchell hand-delivered to C.W. in Albany. On July 31, 2019, Blue Key Construction submitted an invoice totaling $2.4 million for works allegedly performed for Friendship Missionary Baptist Church. On Nov. 26, 2019, Mitchell submitted a proof of loss totaling $7.495 million.

On Dec. 11, 2019, the insurance company issued a check jointly payable to Friendship Missionary Baptist Church of Broad Avenue, Inc. and Loss Consultants of Texas, LLC d/b/a Texas Claim Consultants for $2,762,783.93. This check was mailed to Mitchell in Kemah, Texas. An endorsement on behalf of Friendship Missionary Baptist Church was forged.

On March 4, 2020, C.W. received and negotiated a check for $50,000 from Texas Wind Consultants, LLC, which Mitchell hand-delivered to C.W. in Albany. On June 19, 2020, Friendship Missionary Baptist Church of Broad Avenue, Inc. allegedly signed a contract with Blue Key Construction for $18.6 million. Pastor White denied knowledge of this contract or signing it on behalf of the Church. Representatives of Blue Key Construction denied ever having prepared, signed or entered into this contract.

On Nov. 20, 2020, Mitchell submitted an invoice from a heating and air company for $950,000. A heating and air company representative stated that they did not prepare the invoice. An inspection at the church revealed that the work represented in the invoice was not performed. Mitchell also submitted a certification of completion from Blue Key Construction stating that substantial completion would be reached on March 31, 2021, per a Dec. 19, 2019, contract for over $18 million in repairs.

On Jan. 6, 2021, Brotherhood Mutual issued a check jointly payable to Friendship Missionary Baptist Church and Loss Consultants of Texas, LLC d/b/a Texas Claim Consultants for $544,512.80. This check was mailed to Mitchell in Kemah, Texas. An endorsement on behalf of Friendship Missionary Baptist Church was forged.

On Sept. 30, 2021, Mitchell emailed Brotherhood Mutual the fraudulent $18.6 million contract between Blue Key Construction and Friendship Missionary Baptist Church; the church received less than one-third of the proceeds paid out by Brotherhood Mutual for damages. Blue Key Construction did not fully repair the church facilities, and the company halted construction in Feb. 2021 after receiving approximately $150,000 from Friendship Missionary Baptist Church and approximately $2.3 million from Mitchell. Mitchell lied to Blue Key Construction representatives that the insurance company refused payment beyond approximately $2.5 million.

In June 2022, Mitchell met with Friendship Missionary Baptist Church representatives to voice their concerns about incomplete repairs; the defendant lied that Brotherhood Mutual was withholding further payments. In total, Brotherhood Mutual Insurance issued $6,866,606.80 in payments intended exclusively for the church’s hurricane repairs.

The case was investigated by the Georgia Office of Commissioner of Insurance and Fire Safety.

Criminal Chief Leah McEwen prosecuted the case for the Government.

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Owner of Local Restaurant Pleads Guilty to Laundering Covid Funds

Source: United States Department of Justice Criminal Division

PORTLAND, Ore.—Bryan Ochoa Diaz, 32, a resident of Tigard, Oregon, pleaded guilty today to money laundering related to proceeds of a government loan issued to his family-owned restaurant.

According to court documents, Ochoa Diaz, acting on behalf of Casa Colima Vancouver, Inc., applied for a U.S. Small Business Administration (SBA) loan of $350,000. The loan was part of a Covid era relief program offered by the federal government. The terms of the loan required that funds be used solely as working capital for the company to alleviate economic injury caused by the disaster and that none of the funds would be used primarily for personal, family, or household purposes.

On August 16, 2021, the SBA transferred $350,000 into Casa Colima’s bank account. The next day, Ochoa Diaz misappropriated some of the funds by transferring $100,000 into his parents’ personal bank account. Later that same day, Ochoa Diaz wired the $100,000 to a mortgage company to apply to a mortgage his parents had on their home.

Ochoa Diaz is a reserve officer with the U.S. Coast Guard. He was charged by information with one count of money laundering. He made his initial appearance on September 5, 2025, and waived indictment by a grand jury. He pleaded guilty to that charge today and paid $350,000 in full restitution to the SBA.

Ochoa Diaz faces a maximum sentence of 10 years in prison and a $250,000 fine. He will be sentenced on December 15, 2025, before a U.S. District Court Judge.

This case was investigated by the SBA, Office of Inspector General, and the Coast Guard Investigative Service. It is being prosecuted by Chris Cardani and Meredith Bateman, Assistant U.S. Attorneys for the District of Oregon.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.

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Lake Oswego Resident Pleads Guilty to Cocaine Trafficking and Money Laundering

Source: United States Department of Justice Criminal Division

PORTLAND, Ore.— A Lake Oswego, Oregon, man pleaded guilty today to trafficking cocaine and laundering the proceeds through a business bank account to buy cryptocurrency.

Michael Wayne Frost, 47, pleaded guilty to distributing more than 50 kilograms of cocaine and laundering the money from selling the cocaine.

According to court documents, law enforcement officers engaged in multiple controlled purchases of cocaine from Frost. On July 2, 2024, a federal search warrant was served on Frost’s residence in Lake Oswego. Agents seized a kilogram of cocaine and about $20,000 in cash from the residence. Frost admitted to selling between 10-12 kilograms of cocaine per week. Agents later applied for additional warrants and seized approximately $509,000 in cash and cryptocurrency tied to the cocaine sales. Frost deposited some of the cash into a business bank account he controlled and then transferred funds to Robinhood, a platform he used to invest in cryptocurrency, in an effort to launder the drug proceeds.

On August 21, 2024, a federal grand jury in Portland returned a seven-count indictment charging Frost with distributing cocaine and money laundering.

Frost pleaded guilty today to one count of cocaine distribution and one count of money laundering. He also agreed to forfeit all of the seized cryptocurrency and cash.

Frost faces a maximum sentence of life in prison, a mandatory minimum sentence of 10 years in prison, a 10 million dollar fine, and five years of supervised release. He will be sentenced on January 7, 2026, before a U.S. District Court Judge.

This case was investigated by the Federal Bureau of Investigation, the Multnomah County Sheriff’s Office, Homeland Security Investigations, and the Asset Recovery and Money Laundering Unit at the United States Attorney’s Office. It is being prosecuted by Kemp Strickland and Christopher Cardani, Assistant U.S. Attorneys for the District of Oregon.

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Santa Clara Woman Sentenced To 18 Months In Prison For Fraudulently Obtaining More Than $2.8 Million In Pandemic Relief Funds

Source: United States Department of Justice Criminal Division

SAN JOSE – Cassie Will-Darnall was sentenced today to 18 months in federal prison for fraudulently obtaining more than $2.8 million in pandemic relief funds.  U.S. District Judge P. Casey Pitts handed down the sentence.

Will-Darnall, 53, of Santa Clara, pleaded guilty on Jan. 15, 2025, to one count of bank fraud and one count of wire fraud arising out of two Paycheck Protection Program (PPP) loans she obtained.  The PPP was administered by the SBA as part of the Coronavirus Aid, Relief, and Economic Security Act, a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and certain other qualified business expenses. PPP funds were disbursed by SBA-approved third-party lenders.

In connection with pleading guilty, Will-Darnall admitted that in May 2020, she fraudulently submitted a PPP application to Lender 1 as the sole partner of Alternative Health Services Inc., falsely stating that the company had 10 employees and an average monthly payroll of $387,595.67, when it had no employees and no payroll.  Based on the false information, Lender 1 approved and funded the PPP loan in the amount of $968,989.

In July 2020, Will-Darnall submitted a PPP application to Lender 2 as the CEO of Rosswood Properties LLC, falsely stating that the company had 35 employees and an average monthly payroll of $816,551, when it had no employees and no payroll. Based on the false information, Lender 2 approved and funded the PPP loan in the amount of $1,864,565.

United States Attorney Craig H. Missakian, FBI Acting Special Agent in Charge Matt Cobo, and SBA Office of Inspector General (OIG) Western Region Acting Special Agent in Charge Jonathan Huang made the announcement.

In addition to the prison term, Judge Pitts also sentenced the defendant to a three-year period of supervised release.  Judge Pitts set a hearing on forfeiture on Oct. 14, 2025, and a hearing on restitution on Dec. 3, 2025.  The defendant will begin serving the sentence on Jan. 7, 2026.

Assistant U.S. Attorney Sarah E. Griswold and Special Assistant U.S. Attorney Johnny E. James Jr. prosecuted the case with the assistance of Veronica Hernandez, Lynette Dixon, and Elise Etter.  The prosecution is the result of an investigation by the FBI and SBA-OIG. 
 

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Former CEO Of Canadian AI Company Charged With Investment Fraud Scheme Targeting U.S. Investors

Source: United States Department of Justice Criminal Division

SAN FRANCISCO – Matthew Derrick Hudson, the former CEO and founder of Invenia Technical Computing Corporation, has been charged with wire fraud in connection with a scheme that raised over $100 million from outside investors.  Hudson was arrested last week in the Northern District of California and appeared in federal court in San Francisco today for a detention hearing.  

According to the criminal complaint filed on Sept. 18, 2025, and unsealed today, Hudson, 42, a Canadian national, is alleged to have lied to Invenia’s investors from 2020 and continuing through 2022.  The complaint alleges that some of the investors were located in or had representatives in the Northern District of California, and that other investors were based elsewhere in the United States.  During the relevant period, Invenia was a private company based in Canada and the United Kingdom that claimed to apply artificial intelligence and machine learning solutions to the North American energy markets.  

Hudson allegedly led investors to believe that Invenia had already achieved significant financial success, with growing revenues and cash balances exceeding hundreds of millions of dollars.  Hudson did so by distributing and causing the distribution of falsified audited financial statements, invoices, and other financial documents.  For example, the complaint alleges that shortly before Invenia closed its Series B fundraising round, Hudson sent an audit report that purported to verify Invenia’s 2019 balance sheet and financial statement that, among other things, claimed Invenia had approximately $218 million CAD in cash and approximately $295 million CAD in revenue.  The real audit report for that year produced by Invenia’s Canadian auditor showed Invenia had approximately $6 million CAD in cash and $26 million CAD in revenue.  

The complaint also describes how Hudson used fake email accounts and invoices to advance the fraud scheme.  Invenia partnered with Energy Company 1, a company based in North Dakota, to engage with North American energy markets.  On multiple occasions, Hudson introduced fake email accounts for an Energy Company 1 employee to representatives of Invenia investors who were conducting diligence on Invenia.  Hudson then told a real person at Energy Company 1 to ignore any outreach from representatives of Invenia’s investors.  Fabricated invoices and other documents were also sent to Invenia investors that included a fake phone number for Energy Company 1 that was associated with an account allegedly paid for by Hudson.

United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matt Cobo made the announcement.  

Hudson was released on bond pending trial.  He is next scheduled to appear in federal court on Nov. 17, 2025, for a status conference before U.S. Magistrate Judge Laurel Beeler.

A criminal complaint merely alleges that a crime has been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Hudson faces a maximum sentence of 20 years in prison and a fine of $250,000, plus restitution, for the charge 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.  

The U.S. Securities and Exchange Commission has also filed a civil enforcement action in the Northern District of California against Hudson alleging violations of securities laws.  

Assistant U.S. Attorney Patrick O’Brien is prosecuting the case with the assistance of Maryam Beros and Mimi Lam.  The prosecution is the result of an investigation by the FBI.  The U.S. Attorney’s Office thanks the San Francisco Regional Office of the U.S. Securities and Exchange Commission for its assistance in the investigation.  
 

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Mexican man arrested for illegal re-entry

Source: United States Department of Justice Criminal Division

BUFFALO, N.Y. –U.S. Attorney Michael DiGiacomo announced today that Alejandro Vazquez-Landin, 40, a citizen and national of Mexico, was arrested and charged by criminal complaint with re-entry of a removed alien, which carries a maximum penalty of two years in prison and a $250,000 fine.

Special Assistant U.S. Attorney Michael J. Smith, who handled the case, stated that according to the complaint, on September 10, 2025, while conducting surveillance of a pickup truck with out-of-state plates parked at a hotel in Amherst, NY, law enforcement observed four male subjects, all wearing construction attire, enter the vehicle. Law enforcement conducted a traffic stop. Vazquez Landin, a passenger in the vehicle, opened his door and began running towards a nearby parking lot. After a short foot chase, he was apprehended. Vazquez Landin did not possess any valid immigration documents that would allow him to be in the United States. An immigration record check determined that he is a native and citizen of Mexico, who was physically removed from the United States in June 2008 and September of 2012.

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 complaint is the result of an investigation by U.S. Border Patrol, under the direction of Patrol Agent-in-Charge David Banks.

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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Honduran man arrested for illegal re-entry

Source: United States Department of Justice Criminal Division

BUFFALO, N.Y. –U.S. Attorney Michael DiGiacomo announced today that Miguel Angel Vasquez-Amaya, 46, a citizen and national of Honduras, was arrested and charged by criminal complaint with re-entry of a removed alien, which carries a maximum penalty of two years in prison and a $250,000 fine.

Special Assistant U.S. Attorney Michael J. Smith, who handled the case, stated that according to the complaint, on August 31, 2025, Vasquez-Amaya was a passenger in a vehicle that was encountered by Customs and Border Protection at the Peace Bridge Port of Entry. The vehicle was referred for secondary inspection. An immigration records check revealed that Vasquez-Amaya was physically removed from the United States in November 2002.

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 complaint is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy.

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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