Category: MIL-OSI

Source: United States Department of Justice Criminal Division

On Jan. 22, the Southern District of Texas, McAllen Division, issued an order revoking the citizenship of Mr. Carlos Noe Gallegos, who was convicted of sexually assaulting a child prior to naturalizing and, later, withheld disclosing his illegal acts and accompanying conviction throughout his naturalization process. Prior to naturalizing, Mr. Gallegos sexually assaulted a child younger than 14 years. Years after he naturalized, Mr. Gallegos pleaded guilty to the sexual assault, and the court issued an order of community supervision. Mr. Gallegos’s acts and his concealment of these material facts warranted the revocation of his 2010 naturalization under 8 U.S.C. § 1451.

“American citizenship is a privilege that this child-abusing monster never should have been able to attain,” said Attorney General Pamela Bondi. “We will continue ensuring that anyone who conceals such conduct while obtaining naturalization is found out and stripped of their citizenship.”

“Safekeeping the integrity of our society demands that this Administration be allowed to denaturalize monsters who sexually abuse our children,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division

The Southern District of Texas held that Mr. Gallego’s willful and knowing sexual contact with a child as described in sections 22.021(b)(1) and 22.011(c)(1) of the Texas Penal Code was a crime involving moral turpitude. Because Mr. Gallego’s criminal conduct reflected negatively upon his character, he illegally procured his citizenship when he was never eligible to naturalize and should not have been naturalized.

This case was handled by the Justice Department’s Office of Immigration Litigation, Affirmative Litigation Unit, with assistance from the U.S Attorney’s Office for the Southern District of Texas, after investigation by ICE’s Homeland Security Investigations.  

Source: United States Department of Justice

An indictment filed in the District of Columbia was unsealed on Saturday charging a Turkish national and a German national for an alleged bribery scheme involving contracts with the U.S. military and the North Atlantic Treaty Organization (NATO). NATO is a military alliance of which the United States is a member nation.

“These defendants allegedly engaged in a years-long bribery scheme that tainted construction contracts with the U.S. military and our allies,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Integrity in federal contracting is vital to ensuring a fair competitive process and protecting the public fisc. These charges demonstrate the department’s mission to eliminate corruption that skews procurement contracts away from the best bidder and toward those who can bribe insiders for preferential treatment.”

“This indictment is a significant step forward in our relentless pursuit of integrity within the procurement processes that support our military and NATO operations,” said Special Agent in Charge Steven Ausfeldt of the Department of the Army Criminal Investigation Division’s Europe Field Office. “Our collaboration with the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the FBI, and our international partners underscores our shared commitment to combat corruption in all its forms.”>>

According to the indictment, Bahadir Hatipoglu, 50, who resides near Klaipėda, Lithuania, is the owner of companies that received construction contracts with NATO and the U.S. military. Ralf Grywnow, 70, who resides in Zagnańsk, Poland, is a former NATO procurement official. The two men allegedly engaged in a scheme in which Hatipoglu bribed Grywnow in various ways, including by providing Grywnow with cash, a romantic encounter with a woman in Dubai and assistance in constructing and furnishing a house for Grywnow in Poland. In exchange, Grywnow allegedly helped Hatipoglu get contracts with the U.S. military by providing him with falsified reviews that favorably appraised Hatipoglu’s companies’ work with NATO. Grywnow also provided Hatipoglu with preferential treatment in overseeing contracts that Hatipoglu had or sought to obtain with NATO and gave Hatipoglu confidential information related to bids for NATO construction contracts. 

Hatipoglu and Grywnow were arrested in Lithuania and Poland, respectively, pursuant to provisional arrest warrants. The U.S. Department of Justice is working with Lithuanian and Polish authorities to extradite both defendants to the United States, where they are each charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted of any of the charges, each defendant faces a maximum penalty of 20 years in prison.

The Department of Defense Office of the Inspector General, the Air Force Office of Special Investigations, the Department of the Army Criminal Investigation Division and the FBI are investigating the case. Polish and Lithuanian authorities provided significant assistance pursuant to legal assistance treaties with the United States.

Trial Attorneys Dermot Lynch, Shy Jackson and Patrick Brown of the Criminal Division’s Fraud Section are prosecuting the case. Substantial assistance was provided by the Justice Department’s Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Mississippi.

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

Source: United States Department of Justice Criminal Division

A Florida man pleaded guilty on Jan. 15 for his role in a scheme to defraud Medicare by submitting over $52 million in false and fraudulent claims for genetic testing that Medicare beneficiaries did not need and that were based on prescriptions purchased through illegal kickbacks and bribes.

According to court documents, Sean Alterman, 38, of Lake Worth, Florida, owned and operated two laboratories, Live Beyond Medical MGMT, LLC and Dynix Diagnostics LLC, through which he purchased doctors’ orders for expensive genetic testing from patient recruiters. The patient recruiters ran deceptive telemarketing campaigns that targeted Medicare beneficiaries and persuaded them to agree to take the tests to justify the fraudulent billing.

As part of the scheme, the patient recruiters used a tactic known as “doctor chasing” – faxing physicians false and misleading requests for prescriptions designed to trick them into signing off on tests their patients did not need. The faxes and accompanying materials falsely stated, among other things, that the prescription requests were made on behalf a mutual patient. But they were generated by call centers that deceived the Medicare beneficiaries to agree to the tests without being examined or treated by physicians for the diseases underlying the tests.

Alterman’s laboratories billed approximately $52 million to Medicare for the false and fraudulent claims, of which Medicare paid approximately $36 million. Alterman made roughly $5.5 million from the scheme, much of which he received through shell companies he owned called Shivv LLC and Shank LLC. As part of his plea agreement, Alterman agreed to forfeit his Lake Worth estate and a 2022 Rolls Royce Ghost purchased with money traceable to the scheme:

Alterman pleaded guilty to conspiracy to commit health care fraud and conspiracy to offer and pay kickbacks. He is scheduled to be sentenced on April 16 and faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; Assistant Special Agent in Charge Chris Caldwell of the FBI; and Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorneys Reginald Cuyler Jr. and Aisha Schafer Hylton of the Justice Department’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Nadya Cheatham for the Southern District of Florida 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 nine 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.

Source: United States Department of Justice Criminal Division

Fort Myers, Florida – Jason Allen Henning (43, Cape Coral) was sentenced today by U.S. District Judge Sheri Polster Chappell to 10 years in federal prison for possessing and accessing with intent to view images and videos depicting the sexual abuse of children. He pleaded guilty on July 9, 2025. Henning was also sentenced to a life term of supervised release and ordered to register as a sex offender. U.S. Attorney Gregory W. Kehoe made the announcement.

Source: United States Department of Justice Criminal Division

A grand jury in Oregon yesterday returned a superseding indictment charging a mother and daughter from Tigard, Oregon, with 12-counts of conspiracy to commit health care fraud and forced labor. The indictment alleges that Marie Gertrude Jean Valmont, 67, and Yolandita Marie Andre, 31, coerced the labor and services of three victims, including a minor victim, to work for little or no pay in an adult foster care home. Valmont has separately been charged with confiscating the documents of the victims to compel their labor and services, along with engaging in healthcare fraud by participating in a conspiracy with Andre to request Medicaid “exceptional payments” for additional paid hours for employees while paying the victim employees little to nothing for their labor, lying about the victims’ residence in the home, and falsifying a disability claim for herself that allowed Andre to be paid hourly for providing care to her as a Homecare Worker. Andre and Valmont have also been charged with making multiple false statements regarding healthcare fraud for the same behavior.

According to court documents, Valmont and Andre, the owners and operators of Velida’s Home Care in Tigard, allegedly recruited the three victims to travel from Haiti to the United States to work with promises of a nice place to live, and steady and reliable work. Upon their arrival in September 2023, all three were compelled to work long, difficult hours for little to no pay at Velida’s Home Care. Valmont took the victims’ immigration paperwork and controlled practically every aspect of their daily living, which compelled them to work as caregivers in the home. The victims continued working under threats of serious harm until the minor victim disclosed their situation to a medical professional in the summer of 2024. At that point, the Oregon Department of Justice authorities commenced an investigation.

In addition, the defendants allegedly requested and received payments from the Oregon Department of Human Services (ODHS) and Medicaid by falsely claiming they needed to pay additional and current employees for more hours for foster care residents with exceptional care needs. Instead of paying the three victims a proper hourly wage, the defendants instead kept the money they obtained from the ODHS and Medicare by paying them little or nothing. Finally, Andre also stated under penalty of perjury that she served as Valmont’s caregiver and submitted claims purporting to be Valmont’s caregiver during times when Andre was either not with Valmont or Valmont was working with others. Moreover, Valmont alleged she was disabled and required Andre’s care while also holding herself out to ODHS as a purported caregiver herself.

Committing forced labor and conspiracy to commit health care fraud are each punishable by a penalty of up to 20 years in federal prison per count of conviction and force labor requires mandatory restitution. Making a false statement related to health care fraud is punishable by up to five years in federal prison per count of conviction.

The FBI investigated the case with assistance from Tigard Police Department. Assistant U.S. Attorney Eliza Carmen Rodriguez for the District of Oregon and Trial Attorney Elizabeth Hutson of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

An indictment is only an accusation of a crime. All defendants are presumed innocent unless and until proven guilty.

Source: United States Department of Justice Criminal Division

Tampa, Florida – Jennifer Rodriguez (37, Puerto Rico) has been sentenced by U.S. District Judge Kathryn Mizelle to five months in federal prison for interfering with flight attendants by assault and intimidation. Rodriguez pleaded guilty on July 17, 2025. U.S. Attorney Gregory W. Kehoe made the announcement.

Source: United States Department of Justice Criminal Division

The United States District Court for the Central District of California granted summary judgment to the United States against JMG Investments Inc., a California corporation which runs a rehabilitation center, and its owner, Jeffrey Schwartz, on Jan. 15, finding that they violated the False Claims Act when they knowingly received and retained more than one Paycheck Protection Program (PPP) loan prior to Dec. 31, 2020, in violation of PPP rules. The District Court ordered Schwartz and his company to pay the United States a total of $1,565,294.38 in damages and penalties.

“PPP loans were intended to provide critical relief to small businesses,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly violated the requirements of the PPP and obtained relief funds to which they were not entitled.”

“Every pandemic relief dollar improperly used was money other businesses needed to stay afloat,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “My office will continue tracking down individuals and companies who unlawfully took advantage of COVID-19 government aid.”

“The favorable ruling in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the Department of Justice and other Federal law enforcement agencies to recover the product of this fraud as well as penalties,” said SBA General Counsel Wendell Davis.

The PPP, an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act and administered by the U.S. Small Business Administration (SBA), was intended to support small businesses struggling to pay employees and other business expenses during the COVID-19 pandemic. A borrower applying for a PPP loan was required to make multiple certifications relating to its eligibility and compliance with program rules. Among other things, PPP loan applicants in 2020 were required to certify that they would not receive more than one PPP loan prior to Dec. 31, 2020.

In August 2024, the United States filed a complaint against JMG Investments and Schwartz alleging that they violated the False Claims Act when Schwartz, on behalf of JMG Investments Inc., improperly received two PPP loans in 2020 in violation of PPP rules, and thereafter knowingly and improperly retained the proceeds of the duplicate loan. According to the government’s complaint, Schwartz and JMG Investments Inc. failed to repay the duplicate loan as they were required, which resulted in a loss to the SBA when it purchased the loan guaranty on the duplicate loan. The District Court ruled that the United States had shown it was entitled to judgment on all claims asserted against the Defendants and, accordingly, awarded the United States summary judgment.

This judgment against JMG Investments Inc. and Jeffrey Schwartz resolves claims brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The United States may intervene in the action, as it did in this case. The amount of the whistleblower share in this case has not yet been determined. The qui tam case is captioned U.S. ex rel. Quesenberry v. JMG Investments, Inc., et al, No. 20-cv-8497-MWF (ASx) (C.D. Cal.).

The judgment obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the SBA’s Office of General Counsel and Office of the Inspector General.

This matter was handled by Trial Attorneys Jared S. Wiesner and Paden R. Gallagher of the Civil Division, with assistance from Assistant U.S. Attorney Paul La Scala of the Central District of California.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Source: United States Department of Justice Criminal Division

PHOENIX, Ariz. – During the week of enforcement operations from Jan.17 through Jan. 23, 2026, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 150 individuals. Specifically, the United States filed 87 cases in which aliens illegally re-entered the United States, and the United States also charged 45 aliens for illegally entering the United States. In its ongoing effort to deter unlawful immigration, the United States filed 15 cases against 17 individuals responsible for smuggling illegal aliens into and within the District of Arizona. Protecting law enforcement officers is a key part of border vigilance, and federal prosecutors also charged one defendant for assaulting a Border Patrol agent.

Source: United States Department of Justice Criminal Division

OMAHA – A federal grand jury in the District of Nebraska has returned an additional indictment last week charging 31 individuals for their roles in a large conspiracy to deploy malware and steal millions of dollars from ATMs in the United States, a crime commonly referred to as “ATM jackpotting.” 

Source: United States Department of Justice Criminal Division

Nader Pourhassan, 62, of Lake Oswego, Oregon, was sentenced Friday to 30 months in prison for misleading investors about his company’s development of a new drug, then selling his personal stock in the company at artificially inflated prices.

“The defendant lied to investors about a drug to treat HIV and COVID-19 so he could engage in insider trading,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “This type of fraud exploits vulnerable Americans, undermines the integrity of our financial markets, and erodes the trust that investors place in public companies. The Criminal Division remains committed to prosecuting corporate executives who deceive investors.”

“Pourhassan exploited a deadly public health crisis to intentionally deceive investors and the public out of millions – all so that he could enrich himself,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “As this sentence makes clear, executives who mislead investors and manipulate the truth for personal gain will be held accountable. Our office will continue to aggressively pursue those who put greed ahead of honesty and the rule of law.” 

“Nader Pourhassan lied and schemed to selfishly line his own pockets. He betrayed the trust placed in him as a corporate executive by deceiving and misleading investors,” said Special Agent in Charge Jimmy Paul of the FBI Baltimore Field Office. “Not only are his actions illegal, but they also serve to undermine public confidence in our financial institutions. This sentencing shows the FBI’s commitment to rooting out fraudsters seeking to manipulate the market.”

“Today’s announcement should serve as a reminder that fraud related to medical products will not be tolerated,” said Special Agent in Charge Robert Iwanicki of the Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Los Angeles Field Office. “The FDA will continue to work with our law enforcement partners to bring to justice those who place profits above public health.”

According to court documents and evidence presented at trial, Pourhassan was the Chief Executive Officer of CytoDyn, a publicly traded company based in Vancouver, Washington, that was developing an investigational drug to treat HIV and COVID-19. Between 2018 and 2021, Pourhassan intentionally misled investors about the drug’s prospects for FDA approval to artificially inflate the price of CytoDyn’s stock and attract new investors. He then sold his 4.8 million shares of CytoDyn stock after making false announcements to investors and pocketed $4.4 million.

In December 2024, Pourhassan was convicted at trial of four counts of securities fraud, two counts of wire fraud and three counts of insider trading. At sentencing, he was ordered to pay more than $5.3 million in restitution and to forfeit more than $4.4 million.

FBI, FDA-OCI and the U.S. Postal Inspection Service investigated the case.

Acting Deputy Chief Vasanth Sridharan, Acting Assistant Chief Matthew Reilly and Senior Counsel Lauren Archer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adeyemi Adenrele for the District of Maryland prosecuted the case. Law Clerk Kerstin Abolnik and Paralegal Specialists Selam Wehabe and John Lee of the Fraud Section provided substantial assistance.