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.
Source: United States Department of Justice Criminal Division
NEW ORLEANS, LOUISIANA – JESSICA PORTWAY, age 42, of St. John the Baptist Parish, RACHEL PORTWAY, age 23 of Jefferson Parish, and TYLER SALADINO (“SALADINO”), age 25, of Jefferson Parish, pled guilty before United States District Judge Jane Triche Milazzo, to an indictment charging them with drug conspiracy, drug distribution and possession with intent to distribute drugs, announced United States Attorney David I. Courcelle. JESSICA PORTWAY pled guilty on January 7, 2026; and RACHEL PORTWAY and SALADINO pled guilty on January 21, 2026.
Source: United States Department of Justice Criminal Division
U.S. Attorney Michael DiGiacomo announced today that Ernest Brown, a/k/a Wayne Perry, a/k/a Wayne Brown, 43, Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr to narcotics conspiracy, which carries a mandatory minimum penalty of 10 years in prison and a maximum of life.
Source: United States Department of Justice Criminal Division
NEW ORLEANS, LOUISIANA – CARLOS ALBERTO ESCOBAR-LOZA (“ESCOBAR-LOZA”), age 47, a native of Honduras, was charged on January 21, 2026, by bill of information with re-entry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney David I. Courcelle.
Source: United States Department of Justice Criminal Division
NEW ORLEANS, LOUISIANA – MIGUEL ANGEL LOPEZ-MEJIA (“LOPEZ-MEJIA”), age 34, pled guilty on January 15, 2026, to illegal reentry of a previously removed alien, in violation of Title 8, United States Code, Section 1326(a), announced United States Attorney David I. Courcelle.
Source: United States Department of Justice Criminal Division
U.S. Attorney Michael DiGiacomo announced today that Elazar Wigdorowitz, 33, a citizen of Israel, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to improper entry by an alien. He was then sentenced to time served and turned over to Immigration and Customs Enforcement.