Category: MIL-OSI

Source: United States Department of Justice Criminal Division

A New York man was sentenced today to 37 months in prison for conspiring to launder nearly $1.5 million in illicit health care fraud proceeds through multiple domestic and global banks on behalf of a Transnational Criminal Organization (Organization).

According to court documents, Elnar Zarbailov, 42, of Staten Island, New York, and dual citizen of the United States and Azerbaijan, was a fixer and money launderer for the foreign-based  Organization that spearheaded the largest health care fraud case ever prosecuted by the Department of Justice, as uncovered by Operation Gold Rush. The Organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar health care fraud and money laundering scheme to target, exploit, and steal from Medicare and private health insurance companies.

As alleged in charging documents, the Organization exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The health care fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources—Medicare and established private insurance carriers—giving the funds the initial appearance of legitimacy. To gain access to the United States’ financial system, the Organization deployed a range of tactics to circumvent internal controls at multiple banks and in some cases coordinated directly with associates employed at the banks.

As further alleged, to open financial accounts, the Organization armed its nominee owners, many of whom were not lawfully present in the United States, with false sale documentation and false corporate registration documents. This documentation falsely reflected that the nominee owners maintained beneficial ownership and control of various fraudulent durable medical equipment (DME) companies. This disguised the true beneficial ownership and control of the companies and the financial accounts. Upon opening the financial accounts, the Organization funneled fraud proceeds from Medicare and other legitimate health care insurers into the accounts as seemingly “clean” money. From there, the Organization siphoned off the funds to shell companies and various banks overseas.

Zarbailov facilitated a critical element of the transnational scheme. In furtherance of the conspiracy, Zarbailov deposited fraud proceeds from five DME companies linked to the scheme and transferred the fraud proceeds to other accounts, including accounts located overseas.

Zarbailov was arrested at John F. Kennedy International Airport in September 2024 as he attempted to leave the United States to Azerbaijan. He pleaded guilty to conspiracy to commit money laundering in October 2025. In addition to the prison term, Zarbailov was ordered to pay $1,457,898 in forfeiture.

Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division, Acting Deputy Inspector General for Investigations Scott J. Lampert for the Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Chief Division Counsel Tony Costanza for the FBI New Haven for the FBI made the announcement.

HHS-OIG and FBI investigated the case. Homeland Security Investigations and the El Dorado Task Force assisted in the defendant’s arrest.

Assistant Chiefs Shankar Ramamurthy and Kevin Lowell, and Trial Attorneys Leonid Sandlar and Sara E. Porter, of the Criminal Division’s Fraud Section prosecuted the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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

SALT LAKE CITY, Utah – After a five-week trial, a federal jury in Salt Lake City returned a guilty verdict against multiple defendants for their participation in a nationwide scheme to defraud victims out of more than $30,000,000 by inducing them to invest in Noah’s Event Centers and promising impressive long-term financial returns. The defendants, Christopher J. Ashby, 52, Jordan S. Nelson, 45, both of Salt Lake County, Utah; and Scott W. Beynon, 49, of Davis County, Utah, were each found guilty on all charged counts: 17 counts of wire fraud and one count of conspiracy to commit wire fraud.

Source: United States Department of Justice Criminal Division

A California man was sentenced today in the Southern District of Alabama to 180 months in prison for money laundering conspiracy and providing false testimony in court. 

“The defendant helped launder millions of dollars for a drug trafficking organization to conceal drug sale proceeds,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Dismantling criminal organizations is a critical priority for the Department. Alongside the Drug Enforcement Administration (DEA) and our local law enforcement partners, we will continue to prosecute the financial networks that fuel illegal drug trade and profit from the sale of illicit substances.”

“For years, Adi and his coconspirators used a sophisticated web of corporations and bank accounts to launder millions of dollars’ worth of profits from illegal drug sales in the Mobile area,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working alongside our dedicated federal, state, and local partners, we will continue to pursue and dismantle drug networks that abuse the U.S. financial system.”

“This individual not only used sophisticated financial webs to conceal and profit from illegal drug trafficking, but he also chose to lie under oath to protect his criminal enterprise,” said Special Agent in Charge Steven Hofer of the DEA New Orleans Field Division. “This sentence sends a clear message: the DEA and our law enforcement partners will ruthlessly target the financial infrastructure of drug organizations, and we will absolutely not tolerate attempts to obstruct justice and deceive the courts.”

According to court documents, Mohammed Zohair Adi, 58, a dual citizen of the United States and Syria, helped launder millions of dollars for a drug trafficking organization that transported over 1,000 kilograms of high-grade marijuana from California to Alabama, often on commercial flights via drug couriers. Adi operated multiple corporate entities and bank accounts to launder the proceeds of drug sales, and at times, structured financial transactions to avoid triggering currency transaction reporting requirements. Adi laundered drug money for several purposes, including promoting drug trafficking and maintaining California-based real estate properties, some of which were used as marijuana grow sites.

On Jan. 30, 2023, Adi pleaded guilty to conspiring to commit money laundering. On March 14, 2023, after his guilty plea, Adi falsely testified before a judge in the Southern District of Alabama at a detention hearing for co-defendant Navjit Bhullar. At the time, Adi and Bhullar were on pretrial release and court-ordered not to communicate with co-defendants about case-related matters. Adi testified that he met with Bhullar only once while on pretrial release, in mid-January 2023, in a one-on-one meeting at which they discussed their criminal case. In truth, Adi also met Bhullar in person in February 2023, with others present, at an office in Sacramento, California, and discussed the criminal case, including Adi’s guilty plea, in violation of the Court’s no-contact rule. Adi later lied to the Drug Enforcement Administration (DEA) about his contacts with Bhullar. On March 2, 2026, Adi pleaded guilty to providing false testimony under oath before the Court.

In imposing today’s sentence, the Court noted that Adi was a leader of the money laundering conspiracy, that he was significantly involved in a serious federal crime, and that laundering drug funds was critical to the operations of a drug trafficking organization. As part of Adi’s sentence, the Court also imposed a $50,000 fine and a three-year term of supervised release.

Co-defendant Navjit Bhullar is scheduled to be sentenced on June 29. Ten co-defendants have already been sentenced.

The DEA investigated these cases.

Trial Attorneys Sinan Kalayoglu and Kaycee Sullivan of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Justin Roller for the Southern District of Alabama prosecuted the cases.

The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

MNF’s International Unit investigates and prosecutes cross-border money laundering schemes involving transnational criminal organizations, cartels, foreign official corruption and related money laundering affecting the U.S. financial system and prosecutes criminal cases and civil forfeiture matters to recover the proceeds of those crimes.

Source: United States Department of Justice Criminal Division

A Marina del Rey woman who worked as a longtime signature collector for ballot initiatives has been charged with paying individuals – including homeless people living in the Skid Row area of downtown Los Angeles – to register to vote, the Justice Department announced today.

Source: United States Department of Justice Criminal Division

A San Diego County man was arrested today on a federal grand jury indictment charging him with assaulting a Jewish man near a synagogue in the Pico-Robertson area of Los Angeles, which was hosting an event to promote the purchase of real estate in Israel – an event protested by several pro-Palestinian groups.

Source: United States Department of Justice Criminal Division

United States Attorney for the Southern District of New York, Jay Clayton, and the Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, announced today the unsealing of an indictment charging JAIME CASTLE, former Chief Executive Officer (“CEO”) of Obagi Cosmeceuticals LLC (“Obagi”) with conspiracy, securities fraud, wire fraud, and false statements to auditors and improperly influencing an audit.

Source: United States Department of Justice Criminal Division

Rashim Johnson, 30, a previously convicted felon residing in Upper Marlboro, Maryland, pleaded guilty in U.S. District Court today in connection with his possession of a Glock 19 semiautomatic pistol with a 31 round capacity magazine, announced U.S. Attorney Jeanine Ferris Pirro.

Source: United States Department of Justice Criminal Division

BOSTON – A Cherry Hill, N.J., man previously arrested on state charges for armed home invasion in April 2025, has been indicted by a federal grand jury in Boston for allegedly sexually exploiting a minor in Massachusetts, as well as travelling across state lines to engage in illicit sexually conduct with the minor victim.

Source: United States Department of Justice Criminal Division

A California woman who worked as a longtime signature collector for ballot initiatives has been charged with paying individuals – including homeless people living in the Skid Row area of downtown Los Angeles – to register to vote.

“False registrations undermine Americans’ faith in elections – even more so when payoffs are involved,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Justice Department is committed to ensuring that all U.S. elections are fair and free from illegal meddling – so that all Americans can accept the results with confidence.”

Brenda Lee Brown Armstrong, of Marina del Rey, California, 64, also known as “Anika,” is charged with one felony count of paying another person to register to vote, a federal charge that carries a statutory maximum penalty of five years in federal prison.

Armstrong has agreed to plead guilty to the charge and is scheduled to make her initial appearance this morning in U.S. District Court in Santa Ana. She is expected to plead guilty in the coming weeks.

According to her plea agreement, for approximately 20 years, Armstrong periodically worked as a “petition circulator.” In that role, she was paid by individuals and entities – known as “coordinators” – to collect voter signatures on official petitions that qualify initiatives, referendums, and recalls for California state ballots. Armstrong drove around the Los Angeles area to find registered voters to sign the petitions.

After gathering enough signatures, Armstrong returned the petitions to her coordinators, who then paid her a set amount for each registered voter’s signature. The amount she was paid varied depending on the specific ballot initiative. Because her coordinators only paid for signatures attributable to registered voters, Armstrong endeavored to ensure the people who signed her petitions were registered voters.

Armstrong occasionally solicited petitioned signatures in Skid Row, an area of downtown Los Angeles notorious for its homelessness problem. Skid Row was a convenient place for Armstrong to collect signatures because of its high concentration of people in a relatively small area who were willing to sign petitions in exchange for payment. Armstrong regularly paid and offered to pay individuals cash, usually in amounts between $2 and $3, to induce them to sign her petitions.

Many of Skid Row’s homeless population were not registered to vote. To ensure she maximized her pay from her coordinators, starting no later than 2025, Armstrong began offering payment to individuals not only to sign her petitions, but also to complete a voter registration form. Before going to Skid Row, Armstrong gathered a stack of voter registration forms from the Los Angeles County Registrar of Voters.

Some homeless people did not have an address to put on the forms. On several occasions, Armstrong provided a homeless individual with her own former address in Los Angeles so they had something to write on the registration form. These registration forms simultaneously registered an individual to vote in California elections and in federal elections.

Because California automatically sends a vote-by-mail ballot to every registered voter, this also meant ballots in some homeless individuals’ names could have the potential to be sent to Armstrong’s former residence where the homeless individual did not live or collect mail.

On Jan. 30, as part of her ongoing scheme, Armstrong knowingly and willfully paid another person to register to vote. She paid the person for the purpose of causing that person to register to vote in federal elections.

The FBI and investigators with the U.S. Attorney’s Office for the Central District of California investigated this matter.

Assistant U.S. Attorneys Michael Wheat and Nandor Kiss for the Central District of California are prosecuting this case.

Source: United States Department of Justice Criminal Division

United States Attorney Jason A. Reding Quiñones announced today that Sean M. Lewis has been sworn in as an Assistant United States Attorney for the Southern District of Florida. Lewis will serve in the Office’s newly created Civil Rights Section within the Criminal Division, under the leadership of Joe diGenova, and will be based in the Fort Pierce office.