Category: MIL-OSI

Source: United States Department of Justice Criminal Division

Mahmoud Amin Ya’Qub Al-Muhtadi, 33, a Gazan native currently residing in Lafayette, Louisiana, was arrested yesterday for his alleged involvement in the Hamas-led terrorist attack against Israel on Oct. 7, 2023.

“After hiding out in the United States, this monster has been found and charged with participating in the atrocities of October 7 — the single deadliest day for Jewish people since the Holocaust,” said Attorney General Pamela Bondi. “While nothing can fully heal the scars left by Hamas’s brutal attack, this Department’s Joint Task Force October 7 is dedicated to finding and prosecuting those responsible for that horrific day, including the murder of dozens of American citizens. We will continue to stand by Jewish Americans and Jewish people around the world against anti-Semitism and terrorism in all its forms.”

“As set forth in documents filed yesterday, on October 7, when Al-Muhtadi learned of the unfolding barbaric attack on Israel and civilians from multiple nations, including the United States, he sprang into action. He armed himself, recruited additional marauders, and then entered Israel, where there is evidence placing him near one of the worst-hit Israeli communities,” said Assistant Attorney General for National Security John A. Eisenberg. “Subsequently, Al-Muhtadi fraudulently obtained a visa to enter the United States where he hoped to remain undetected. This arrest is the first public step in bringing to justice those responsible for harming Americans on that day.” 

“October 7 is a day that lives in infamy for so many, Gentile and Jew alike, because of the terrorist attack on Israel that began a wave of antisemitic violence,” said U.S. Attorney Zachary A. Keller for the Western District of Louisiana. “Let this arrest serve as a reminder both that those who perpetrate acts of terrorism cannot evade justice by hiding in our communities and that state, local, and federal law enforcement — here, the FBI, U.S. Customs and Border Patrol, Louisiana State Police, Lafayette Police Department, and Lafayette Parish Sheriff’s Office — are working tirelessly to bring these people to justice.”

According to court documents, Al-Muhtadi is an operative for the Democratic Front for the Liberation of Palestine’s (DFLP) military wing, the National Resistance Brigades (NRB, also known as the Martyr Umar al-Qasim Forces), a Gaza-based paramilitary group that participated in the Hamas-led terrorist attack against Israel on Oct. 7, 2023.

As alleged, on the morning of Oct. 7, 2023, Al-Muhtadi learned about the Hamas invasion, armed himself, gathered others, and crossed into Israel with the intention of assisting in Hamas’s terrorist attack. According to the complaint, Al-Muhtadi’s phone utilized a cell tower located near Kibbutz Kfar Aza in Israel – the location of a horrifying massacre by Hamas and its supporters resulting in the deaths of many civilians, including at least four American citizens.

In addition, Al-Muhtadi allegedly provided false information in his U.S. visa application relating to his involvement with a paramilitary organization, connection to Hamas, participation in a terrorist attack, and military training. Al-Muhtadi swore to the accuracy of numerous materially false statements in his visa application with respect to at least his affiliation with DFLP, the NRB, and Hamas, his training, and his involvement in the Oct. 7, 2023, attacks. According to U.S. Department of Homeland Security Customs and Border Protection records, Al-Muhtadi entered the United States on Sept. 12, 2024.

Joint Task Force October 7 (JTF 10-7) and the FBI New Orleans Field Office are investigating the case, with valuable assistance from Israeli authorities, including the State Attorney’s Office of Israel, the Israeli Security Agency, Lahav 433 and the Intelligence and Investigation Department of the Israel National Police, the Israel Defense Forces, and the Israeli National Bureau for Counter Terror Financing, as well as the FBI Law Enforcement Attache Office in Israel. The Louisiana State Police, U.S. Customs and Border Protection, Lafayette Police Department and the Lafayette Parish Sheriff’s Office also provided significant assistance.

Assistant U.S. Attorney John Nickel for the Western District of Louisiana; Trial Attorneys A.J. Dixon, Andrew Sigler and JTF 10-7 Lead Attorney Alicia Cook of the National Security Division’s Counterterrorism Section; and Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia are prosecuting the case. Valuable assistance was also provided by Trial Attorney Mark Aziz with the Justice Department’s Office of International Affairs.

Al-Muhtadi’s presence in the U.S. was discovered by JTF 10-7. Established in February 2025 by Attorney General Pamela Bondi, JTF 10-7 was created to spearhead the Justice Department’s ongoing investigations into the perpetrators of the heinous October 7, 2023, terrorist attack on Israel, in which approximately 1,200 people were murdered by Hamas, including 49 U.S. citizens, and approximately 250 additional people were abducted by Hamas, including 8 U.S. citizens. The task force reinforces the Department’s commitment to degrading and dismantling Hamas, holding Hamas supporters accountable, achieving justice for victims, and fighting terrorist-led antisemitism.

Source: United States Department of Justice Criminal Division

PORTLAND, Ore.— Brian Keith Kapileo Nepaial, 38, of Aloha, has been charged by criminal complaint with pointing a laser at a U.S. Customs and Border Protection (CBP) Helicopter and possessing methamphetamine with the intent to distribute.

According to court documents, on October 3, 2025, a CBP helicopter was struck by a green laser, causing it to abort its planned landing. The flight crew observed an individual walking near a residence and disappearing. The Federal Bureau of Investigation (FBI) identified the residence and, on October 10, 2025, executed a federal search warrant at the residence. FBI special agents seized a laser from the bedroom of Kapileo Nepaial and found over 100 grams of methamphetamine and evidence of drug trafficking.

Since June 13, 2025, the United States Attorney’s Office has charged 34 defendants with federal crimes for offenses committed in connection with the ICE building, including assaulting federal officers, failure to comply, and depredation of government property.

“Laser strikes are a serious matter with potentially deadly repercussions. They put the lives of the pilots and the public at risk. Aiming or pointing a laser at an aircraft is a federal crime and will be prosecuted,” said Scott E. Bradford, U.S. Attorney for the District of Oregon.  

Kapileo Nepaial is currently in Washington County custody on a parole violation.

Aiming a laser pointer is punishable by up to five years in federal prison. Possessing methamphetamine with the intent to distribute is punishable by up to 40 years in federal prison.

The case is being investigated by the FBI and is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.

A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

Source: United States Department of Justice Criminal Division

EUGENE, Ore.— A Madras, Oregon, man, who is a registered sex offender, was sentenced to federal prison today for attempting to persuade a purported child to meet him for sex and to send him sexually explicit material.

Ernesto Torres, 45, was sentenced to 120 months in federal prison and a 20-year term of supervised release.

According to court documents, starting in July of 2024, Torres used Facebook Messenger to chat with an apparent 15-year-old girl. The “child” was an undercover deputy with the Deschutes County Sheriff’s Office. In the ensuing months, Torres requested sexual images, discussed sexual acts he wished to perform, and tried to set up a meeting with the decoy child. On December 1, 2024, Torres drove from Madras to Redmond to meet with the child. In the chat records, Torres expressed a desire to take the child to a cabin roughly 50 miles away.

On December 19, 2024, a federal grand jury in Eugene returned an indictment charging Torres with attempted coercion and enticement of a minor and attempting to use a minor to produce a visual depiction of sexually explicit conduct. Torres was located and arrested by agents with Homeland Security Investigations (HSI) pursuant to a federal warrant on January 10, 2025. On July 15, 2025, he pleaded guilty to attempted coercion and enticement of a minor.

This case was investigated by HSI and the Deschutes County Sheriff’s Office. It was prosecuted by Matthew Nelson, Special Assistant United States Attorney for the District of Oregon, and William M. McLaren, Assistant United States Attorney for the District of Oregon.

Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

This case was brought in collaboration with 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  www.justice.gov/psc.

Source: United States Department of Justice Criminal Division

St. Thomas, USVI – Adam Sleeper was sworn in today to become United States Attorney for the District of the Virgin Islands. President Donald Trump announced Sleeper’s nomination on May 6, 2025, and the United States Senate confirmed him on October 7, 2025. Chief District Court Judge Robert Molloy administered the oath of office to United States Attorney Sleeper in a private ceremony.
Prior to taking office as United States Attorney, Sleeper was an Assistant United States Attorney for the District of the Virgin Islands. In that capacity, he served in numerous roles, to include line prosecutor, Appellate Chief, First Assistant United States Attorney, and Acting United States Attorney. Before joining the United States Attorney’s Office, he clerked for Judge Curtis Gómez of the District Court of the Virgin Islands and Judge Joel Carson III of the United States Court of Appeals for the Tenth Circuit. He also worked as an associate in the Boston, Massachusetts office of an international law firm.
Sleeper received his J.D. cum laude from Cornell Law School and his B.A. cum laude from Connecticut College.

Source: United States Department of Justice Criminal Division

MIAMI – A federal grand jury in Miami returned a superseding indictment today charging a multinational company that provides voting machine and election services for participating in a scheme to pay and launder more than $1 million in bribes to a Philippine government official in connection with contracts related to the 2016 Philippine national elections.

The superseding indictment charges SGO Corporation Limited—which, together with the entities within its corporate structure, is commonly known as “Smartmatic” or the “Smartmatic Group”—as well as three of its executives and the former Chairman of the Commission on Elections (COMELEC) of the Republic of the Philippines. The four individuals were initially indicted in August 2024.

According to the superseding indictment, between 2015 and 2018, Roger Alejandro Piñate Martinez, 50, a Venezuelan citizen residing in Boca Raton, and Jorge Miguel Vasquez, 64, of Davie, together with others, caused at least $1 million in bribes to be paid to Juan Andres Donato Bautista, 61, the former Chairman of COMELEC. The bribes were allegedly paid to obtain and retain business from COMELEC, including the release of favorable value added tax (VAT) reimbursements and other contractual payments for the benefit of SGO Corporation Limited and its affiliates.

To finance the bribes, the co-conspirators allegedly created a slush fund by over-invoicing the cost per voting machine supplied for the 2016 Philippine elections. To conceal the corrupt payments, they used coded language, created fraudulent contracts and sham loan agreements, and routed transactions through bank accounts in Asia, Europe, and the U.S., including within the Southern District of Florida.

SGO Corporation Limited, Piñate, and Vasquez are charged with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA). Piñate and Vasquez are charged with one count of violating the FCPA. Additionally, SGO Corporation Limited, Bautista, Piñate, Vasquez, and Elie Moreno, 45, a dual citizen of Venezuela and Israel, are charged with one count of conspiracy to commit money laundering and three counts of international laundering of monetary instruments. If convicted, Bautista, Piñate, Vasquez, and Moreno each face a maximum penalty of 20 years in prison for each count of international laundering of monetary instruments and conspiracy to commit money laundering. Piñate and Vasquez face a maximum penalty of five years in prison for each of the FCPA and conspiracy to violate the FCPA counts.  Bautista and Moreno are fugitives and remain at large.

U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Emmanuel Gomez of IRS Criminal Investigation (IRS-CI) Miami made the announcement.

HSI’s El Dorado Task Force Miami is investigating the case, with assistance from IRS-CI Miami.

Assistant U.S. Attorney Robert J. Emery for the Southern District of Florida and Trial Attorneys Connor Mullin and Jil Simon of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs and the Philippine Department of Justice and Office of the Ombudsman provided assistance.

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

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 case no. 24-cr-20343.

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Source: United States Department of Justice Criminal Division

CLEVELAND – An Ohio man was taken into custody and charged with assaulting a federal officer who was engaged in the performance of official duties.

According to the criminal complaint, on Oct. 15, Larry Leon Dwight Wiley, 55, of Cleveland, barricaded himself in his apartment for several hours after members of the Cleveland U.S. Marshals Service arrived to execute an arrest warrant for a previous federal law violation. Wiley took aim at the federal officers and began firing as they entered the unit. One deputy U.S. Marshal was struck in the arm with a .380 caliber round and was transported to a nearby hospital to receive treatment for his injuries. Wiley made his initial appearance Oct. 16 before U.S. Magistrate Judge Jennifer Dowdell Armstrong. He was ordered to remain in custody while the matter is pending, following a motion made in court by United States Attorney David M. Toepfer for the Northern District of Ohio.

“Law enforcement officers risk everything to protect us, and this case is a stark reminder of the dangers they face in the line of duty,” said Attorney General Pamela Bondi. “I am grateful that our deputy U.S. Marshal will make a full recovery and I will ensure that this heinous crime is prosecuted and punished to the fullest extent of the law. Any attack on law enforcement is an attack on our society itself.”

“An assault on federal law enforcement is an assault against society. We will aggressively prosecute anyone who harms a federal law enforcement officer who is pursuing the mission of protecting the public,” said U.S. Attorney Toepfer. “I would like to thank the Cleveland Police Department, FBI, and ATF for their rapid response to this situation. I also commend the officers on scene who quickly rendered first aid to their wounded colleague.”

“The swift and decisive actions by the United States Marshal’s Service, Cleveland Division of Police, ATF, and the Cuyahoga County Sheriff’s Office to prevent additional harm to the people in the community underscores the collaboration and partnership among our local, state, and federal agencies,” said FBI Cleveland Special Agent in Charge Greg Nelsen.  “We are united in our resolve to take the most dangerous criminals and repeat offenders off the streets and keep our neighborhoods safe places to live and work. The FBI will conduct a thorough investigation into the assault of a federal officer and ensure justice is served.”

Wiley is charged with assault on a federal officer with a deadly or dangerous weapon and faces up to 20 years in prison. If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including prior criminal record, role in the offense, and characteristics of the violation.

This case is being investigated by the FBI Cleveland Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Cleveland Division of Police. The Cuyahoga County Sheriff’s Office also provided valuable assistance. The prosecution is being led by Assistant United States Attorneys Margaret A. Sweeney, Scott Zarzycki, and James P. Lewis for the Northern District of Ohio.

A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

An illegal alien from Mexico was arrested Tuesday for soliciting others to kill ICE agents in a TikTok post on October 9, 2025, announced Acting United States Attorney for the Northern District of Texas Nancy E. Larson.  

According to court records, Eduardo Aguilar, 23, residing in Dallas, Texas, was charged by federal complaint for transmitting in interstate or foreign commerce a communication containing a threat, resulting from his October 9 post on TikTok in Spanish, as pictured below: 
 

Court records reflect that the translation of the black and white text states, “I need 10 dudes in Dallas with determination (guts) who aren’t afraid to [two skull emojis].”  The emojiis are known to represent the word, “die.”  The second phrase, in red and white text, states, “10K for each ICE agent.” 

“Threats against our law enforcement officers are completely unacceptable,” said Acting U.S. Attorney Nancy E. Larson.  “All threats against our agents and officers will be investigated thoroughly, and anyone who threatens or puts a bounty on agents will be arrested and prosecuted to the fullest extent possible.”
“The FBI takes threats of violence to our law enforcement partners seriously and will thoroughly investigate anyone that commits these types of offenses,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock.

Aguilar made his initial appearance yesterday afternoon in front of a United States Magistrate Judge in Dallas, who ordered that he remain detained in federal custody.  If convicted, Aguilar faces a maximum of five years in federal prison.  

A criminal complaint is merely an allegation of criminal conduct, not evidence.  Like all defendants, Aguilar is presumed innocent until proven guilty in a court of law. The Federal Bureau of Investigation – Dallas conducted the investigation of this case with the assistance of the Dallas Police Department, the Texas Department of Public Safety, the U.S. Marshals Service, the Federal Protective Service, Homeland Security Investigations, Immigration and Customs Enforcement – ERO, the Garland Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives – Dallas Field Division.
 

Source: United States Department of Justice

A federal grand jury returned an indictment today charging former National Security Advisor John Bolton, 76, of Bethesda, Maryland, with serious crimes related to the mishandling of classified information. The indictment charges Bolton with eight counts of transmission of national defense information (NDI) and 10 counts of unlawful retention of NDI.

“There is one tier of justice for all Americans,” said Attorney General Pamela Bondi. “Anyone who abuses a position of power and jeopardizes our national security will be held accountable. No one is above the law.”

“The FBI’s investigation revealed that John Bolton allegedly transmitted top secret information using personal online accounts and retained said documents in his house in direct violation of federal law,” said FBI Director Kash Patel. “The case was based on meticulous work from dedicated career professionals at the FBI who followed the facts without fear or favor. Weaponization of justice will not be tolerated, and this FBI will stop at nothing to bring to justice anyone who threatens our national security.”

“Keeping Americans safe always has been, and always will be, the top priority for the U.S. Attorney’s Office for the District of Maryland,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “If anyone endangers our national security, we’re committed to holding them accountable.”

“The FBI is committed to protecting classified information to keep Americans safe. Anyone entrusted with this knowledge takes an oath and has a duty to safeguard it. The charges alleged in this indictment demonstrate there will be consequences for those who violate this responsibility,” said Special Agent in Charge William J. DelBagno of the FBI Baltimore Field Office.

The indictment alleges that Bolton illegally transmitted NDI by using personal email and messaging application accounts to send sensitive documents classified as high as Top Secret. These documents revealed intelligence about future attacks, foreign adversaries, and foreign-policy relations.

The indictment also alleges that Bolton illegally retained NDI documents within his home. These documents included intelligence on an adversary’s leaders as well as information revealing sources and collections used to obtain statements on a foreign adversary.

If convicted, the defendant faces a maximum penalty of 10 years in prison for each count of unlawful retention of NDI and a maximum penalty of 10 years in prison for each count of transmission of NDI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Baltimore Field Office is investigating the case.

Assistant U.S. Attorneys Thomas Sullivan and Robert Goldaris for the District of Maryland, Trial Attorneys Adam P. Barry and S. Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section, and Trial Attorney Tanner Kroeger of the National Security Division’s National Security Cyber Section are prosecuting the case.

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

PORTLAND, Ore.—An Italian man unlawfully residing in Oregon was sentenced to federal prison yesterday for his role in a large multi-state criminal conspiracy that stole more than $2.4 million dollars of benefits from hundreds of low-income and food insecure individuals and families.

Giovanni Spirea, 29, was sentenced to 24 months in federal prison and three years of supervised release. He was also ordered to pay $61,874.32 in restitution.

According to court documents, from August 2023 to October 2024, Spirea and his co-conspirators used electronic skimming devices to steal Supplemental Nutrition Assistance Program (SNAP) benefits, encoded the stolen data on cloned Electronic Benefit Transfer (EBT) cards, and illegally purchased items with the stolen benefits. Spirea shared stolen account information with other members of the organization, who, along with him, used the stolen benefits to purchase large quantities of infant formula, energy drinks, and other SNAP-eligible nonperishable food items from grocery stores in Oregon, Washington, and California, and through websites associated with grocery stores offering curb-side pickup.

Over the course of the conspiracy, the group purchased more than 120,000 pounds of goods and stored them at residential properties and storage units in Oregon and Washington until they were packaged and transported to California in private vehicles or via commercial carriers. The fraudulent goods, with an estimated value of more than $2.4 million, were then sold on the black market.

“Protecting government funded programs, like the Supplemental Nutrition Assistance Program isn’t just about preserving funds – it’s about safeguarding trust in a vital lifeline that millions of families depend on to put food on the table,” said U.S. Attorney for the District of Oregon Scott E. Bradford. “Today’s sentencing should deter perpetrators from defrauding American families and the federal government for personal gain.”

“The USDA OIG is dedicated to upholding the integrity of the Supplemental Nutrition Assistance Program. We will work relentlessly with our law enforcement partners to pursue justice and hold conspirators accountable for stealing SNAP benefits from American families. We thank the U.S. Attorney’s Office for the District of Oregon, Homeland Security Investigations, U.S. Marshals Service, Portland Police Bureau, Oregon Department of Justice, Vancouver Police Department, and all our partner agencies on this joint investigation,” said U.S. Department of Agriculture, Office of Inspector General (USDA OIG) Special Agent-in-Charge Shawn Dionida.

“The theft of benefits intended for families in need is a serious crime,” said Portland Police Chief Bob Day. “We remain committed to holding accountable those who exploit public resources for personal gain.”

“By siphoning millions of dollars in government funds intended for food-insecure households, this illegal criminal alien proved to be one of the worst of the worst,” said Homeland Security Investigations (HSI) Seattle acting Special Agent in Charge April Miller. “Through the strength of our law enforcement partnerships, HSI remains steadfast in protecting the integrity of our nation’s treasury and pursuing the criminals engaged in financial crimes that defraud our nation’s assistance programs.”

On October 9, 2024, a federal grand jury in Portland returned a 16-count indictment charging Spirea and sixteen co-conspirators. Spirea was charged with Conspiracy to Defraud the United States and Unauthorized Use of Access Devices.

On July 30, 2025, Spirea pleaded guilty to Count One of the Indictment charging Conspiracy to Defraud the United States.

The case was investigated by the USDA OIG, HSI, the U.S. Marshals Service, the Portland Police Bureau, the Oregon Department of Justice, the Orange County District Attorney’s Office, the Vancouver Police Department, the San Bernardino Sheriff’s Office, the Washington County Sheriff’s Office, the Gresham Police Department, and the Redmond, Washington Police Department Financial Fraud and Identification Theft Task Force. It is being prosecuted by Geoffrey A. Barrow and Nicholas D. Meyers, Assistant U.S. Attorneys for the District of Oregon, with assistance from the U.S. Attorney’s Offices for the Western District of Washington and Central District of California.

Source: United States Department of Justice Criminal Division

LOS ANGELES – Federal law enforcement today announced the arrest of the former chief financial officer at a downtown Los Angeles-based developer of affordable housing and criminal charges against a Brentwood man who defrauded lenders to aid his property-flipping business, including a Cheviot Hills home that he sold to a homeless housing developer for more than double his original purchase price.

“Accountability for the misuse of billions of tax dollars intended to combat homeless starts today,” said Acting United States Attorney Bill Essayli, “The two criminal cases announced is only the tip of the iceberg and we intend to aggressively pursue all leads and hold anyone who broke any federal laws criminally liable.” 

“In both of these cases, defendants took advantage of funds allocated to assist the homeless, some of the most vulnerable people in society and many of whom may be suffering from myriad conditions, including addiction,” said Akil Davis, the Assistant Director of the FBI’s Los Angeles Field Office. “The FBI is committed to the Homelessness Fraud & Corruption Task Force to find perpetrators of this insidious fraud and build cases to hold the offenders accountable in court. It is my hope that the charges we’re announcing today send a message to others who may be contemplating similar criminal behavior.”

“IRS-CI is proud to be an inaugural member of the Homelessness Fraud and Corruption Task Force, which was formed to ensure that funds which were committed to aiding California’s homeless population were spent as intended,” said Special Agent in Charge Tyler Hatcher of IRS Criminal Investigation’s Los Angeles Field Office. “Today’s actions show our commitment to ensuring the public that we will investigate missing funds that were intended to benefit some of the most vulnerable Californians.”

“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) thoroughly investigates allegations of fraud, waste, and abuse, said Special Agent in Charge Herminia Neblina of FHFA-OIG Western Region. “We will continue to hold those accountable who engage in fraud against the entities that FHFA regulates. This investigation reflects our commitment to coordinating investigations with our law enforcement partners.”

         United States v. Holmes

Cody Holmes, 31, of Beverly Hills, was arrested this morning on a federal criminal complaint charging him with mail fraud, a felony offense that carries a statutory maximum sentence of 20 years in federal prison.

Holmes is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. No plea will be taken today.

According to an affidavit filed with the complaint, in October 2022, the California Department of Housing and Community Development (HCD), a state agency, paid approximately $25.9 million in grant money – for a state homelessness project called “Homekey” – to Shangri-La Industries LLC, a downtown Los Angeles-based developer of affordable housing. The grant funds were sent with the provision that the money be used to purchase, construct, and operate homeless housing in Thousand Oaks.

These payments followed many millions of dollars HCD had already paid to Shangri-La to buy, build, and operate housing for the homeless in Redlands (in San Bernardino County) and King City (in Monterey County), among other California cities.

Holmes – as Shangri-La’s CFO – knowingly submitted fake bank records to HCD that purportedly showed approximately $160 million supposedly controlled by Shangri-La and its affiliates to prove that Shangri-La had the capacity to fulfill the homeless housing projects for which it had coapplied for grants from HCD, including the Thousand Oaks project. In fact, the bank accounts Shangri-La and Holmes said contained these funds did not exist.

Holmes and Shangri-La also submitted to HCD balance sheets falsely representing that Shangri-La-affiliated entities held millions of dollars in cash that these entities did not actually have on deposit in the known accounts for those entities. Holmes and Shangri-La submitted these fake bank statements and false balance sheets with the intent that HCD should rely on them and release grant money to Shangri-La.

After these documents were submitted to HCD, HCD paid millions of dollars more in grant money to Shangri-La, including for the Thousand Oaks project.

Some of the Homekey money paid to Shangri-La for homeless housing was used to pay credit card bills for American Express accounts associated with Holmes. In November and December of 2022, more than $2.2 million was transferred from a Shangri-La account to a Holmes-controlled account. Afterwards, from November 2022 to May 2023, more than $2 million was paid towards American Express cards. The charges on those credit card accounts included purchases at well-known luxury retailers. Law enforcement believes these payments were made at least in part for Holmes’s benefit.

          United States v. Taylor

Steven Taylor, 44, of Brentwood, is charged with seven counts of bank fraud, one count of aggravated identity theft, and one count of money laundering.

Taylor, who is free on a $3.6 million bond, is expected to be arraigned on the superseding indictment in the coming weeks in United States District Court in downtown Los Angeles.

According to the indictment, from August 2019 to July 2025, Taylor used fake bank statements and false cash representations to obtain loans and lines of credit to operate his real estate business.  Among other uses for the fraud proceeds, Taylor acquired or refinanced properties in the Los Angeles neighborhoods of Silver Lake, Los Feliz, Westlake, Del Rey, Pico-Union, and Cheviot Hills.

Taylor also is charged with lying to lenders about his intended use of the properties, including lying to the lender funding his purchase of the Cheviot Hills property, misleadingly telling the lender he intended to renovate and use the property himself. In fact, Taylor already had contracted to sell the property, which he originally acquired for $11.2 million (obtained with a loan via fake bank statements) to a homeless housing developer purchasing it with public funds from the City of Los Angeles and the State of California for $27.3 million in a double-escrow transaction hidden from the victim lender and others.

Taylor likewise obtained and kept open lines of credit using fake bank statements and false representations concerning cash deposits, including an unsecured line of credit of approximately $3 million from one victim lender – identified in court documents as “Lender B” – and an additional unsecured line of credit of approximately $1 million from another victim lender – identified in court documents as “Lender C.”

He is further alleged to have lied to Lender B in opening the $3 million credit line with Lender B, falsely telling Lender B that he had closed his $1 million unsecured line of credit with Lender C.  He lied by fabricating and sending a document that purported to be an email from an employee of Lender C falsely confirming that the Lender C credit line was closed. In fact, Taylor continued to keep open and draw down on his line of credit with Lender C, even after he opened his $3 million line of credit with Lender B, and the email from Lender C was forged.

The fake bank statements, false cash representations, and misrepresentations regarding liabilities were material to lenders in deciding whether to approve and to keep open the loans and lines of credit Taylor sought and maintained. Taylor used the fraudulently obtained lines of credit to make down payments on real estate that he also obtained with the fraudulent loans.

If convicted, Taylor would face a statutory maximum sentence of 30 years in federal prison for each bank fraud count, up to 10 years in federal prison for the money laundering count, and a mandatory consecutive two-year prison sentence for the aggravated identity theft count.        

Complaints and indictments contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty beyond a reasonable doubt in court.      

The FBI and IRS Criminal Investigation are investigating Holmes. 

The FBI, IRS Criminal Investigation, and the Federal Housing Finance Agency Office of Inspector General are investigating Taylor.

Assistant United States Attorneys Monica E. Tait and Nisha Chandran of the Major Frauds Section and Sarah E. Spielberger of the Asset Forfeiture and Recovery Section are prosecuting Holmes. Assistant United States Attorneys Kerry L. Quinn of the Major Frauds Section, Juan M. Rodriguez of the Public Corruption and Civil Rights Section, and Sarah E. Spielberger of the Asset Forfeiture and Recovery Section are prosecuting Taylor.