Justice Department Sues Four Additional States and One Locality for Failure to Comply with Federal Elections Laws

Source: United States Department of Justice Criminal Division

Today, the Justice Department’s Civil Rights Division announced it has filed federal lawsuits against four states — Colorado, Hawaii, Massachusetts, and Nevada — for failure to produce their statewide voter registration lists upon request. This brings the Justice Department’s nationwide total to 18. The Civil Rights Division is also suing one locality — Fulton County, Georgia — for records related to the 2020 election.

“States have the statutory duty to preserve and protect their constituents from vote dilution,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “At this Department of Justice, we will not permit states to jeopardize the integrity and effectiveness of elections by refusing to abide by our federal elections laws. If states will not fulfill their duty to protect the integrity of the ballot, we will.”

According to the lawsuits, the Attorney General is uniquely charged by Congress with the enforcement of the National Voter Registration Act (NVRA) and the Help America Vote Act (HAVA), which were designed by Congress to ensure that states have proper and effective voter registration and voter list maintenance programs. The Attorney General also has the Civil Rights Act of 1960 (CRA) at her disposal to demand the production, inspection, and analysis of the statewide voter registration lists. 

Williamsport Woman Charged with Assaulting Federal Officers

Source: United States Department of Justice Criminal Division

WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominique Harris, age 24, of Williamsport, Pennsylvania, was indicted yesterday by a federal grand jury on two counts of assaulting a federal officer.

According to United States Attorney Brian D. Miller, the indictment alleges that Harris assaulted two officers of the Department of Homeland Security by spitting on them while they engaged in their normal course of their duties.  On November 30, 2025 in Williamsport, Deportation Officers were conducting a routine investigation in Williamsport that resulted in the arrest of an individual for immigration offenses.  Harris allegedly interfered with deportation officers at the scene of the arrest and then followed them back to an ICE office where she attempted to enter the premises in her car through a secure gate.  When officers confronted Harris, she is alleged to have become belligerent with the deportation officers and spit on two of them.

This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations. Assistant United States Attorney Geoffrey W. MacArthur is prosecuting the case.

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. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood (PSN).

The maximum penalty under federal law for this offense is eight years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

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FORMER VIPD COMMISSIONER AND FORMER OMB DIRECTOR FOUND GUILTY ON ALL COUNTS IN FEDERAL CORRUPTION TRIAL

Source: United States Department of Justice Criminal Division

St. Thomas, VI –United States Attorney Adam F. Sleeper announced today that Ray Martinez, former Commissioner of the Virgin Islands Police Department (VIPD), and Jenifer O’Neal, former Director of the Virgin Islands Office of Management and Budget (OMB), were found guilty on all counts following a one-week jury trial before United States District Judge Mark A. Kearney. Martinez and O’Neal were convicted of participating in a wide-ranging public corruption scheme involving honest services wire fraud, federal program bribery, conspiracy to commit money laundering, and, in Martinez’s case, obstruction of justice.
“Public corruption erodes trust in government and interferes with the provision of important services to the community,” said United States Attorney Adam Sleeper. “These convictions show that those who violate the public trust, whoever they are, will be held accountable.”
“Today’s verdict delivers a clear message: no one is above the law,” said Joe Rodriguez, Acting Special Agent in Charge of the FBI’s San Juan Field Office, which covers the US Virgin Islands. “The FBI remains steadfast in our commitment to rebuild public trust, which is the foundation of our democracy.”
According to evidence presented at trial, Martinez accepted nearly $100,000 in bribe payments from contractor David Whitaker—including cash, luxury travel, personal expenses, private-school tuition, and restaurant equipment—and used his official authority to approve invoices and award Whitaker a $1.4 million dollar contract funded by federal American Rescue Plan Act dollars. O’Neal, who served as the territory’s chief budget official, knowingly approved a $70,000 inflated invoice under that same contract and later accepted a $17,730 lease payment for her business, Java Grande, using federal funds from the inflated invoice.
The evidence further showed that, after learning of the federal investigation, Martinez attempted to obstruct justice by directing Whitaker to destroy evidence and by creating a fraudulent promissory note in an effort to conceal bribe payments. Martinez and O’Neal each face significant statutory penalties, including terms of imprisonment, and fines. Sentencing dates will be scheduled by the Court.
The FBI San Juan Field Office, St. Thomas Resident Agency investigated the case, in collaboration with the Virgin Islands Office of Inspector General. Trial Attorney Alexandre
Dempsey of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cherrisse Amaro for the District of the Virgin Islands are prosecuting the case.

FORMER TALLAHASSEE CHURCH WORSHIP LEADER SENTENCED TO 17 YEARS IN FEDERAL PRISON FOR SEXUAL EXPLOITATION OF A CHILD

Source: United States Department of Justice Criminal Division

TALLAHASSEE, FLORIDA – Hunter Chase Eubanks, 31, of Tallahassee, Florida, was sentenced to 17 years in federal prison after previously pleading guilty to sexual exploitation of a child. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “Our children depend upon us to keep them safe from predators, like this defendant, who seek to sexually victimize them, and the excellent prosecutors in my office will use the full force of the law to protect the most vulnerable members of our community from exploitation.”

According to court records, between July 4, 2024, and October 9, 2024, the defendant engaged in a sexual relationship with a minor who attended Morningside Church, where the defendant served as a worship leader and led a church music internship program. The Leon County Sheriff’s Office opened a criminal investigation in October 2024 after it received a report about the sexual relationship. The investigation revealed that the defendant engaged in sexual activity with the minor on multiple occasions at the church and elsewhere in Tallahassee. During their communications using an iPhone app, the defendant requested that the minor produce and send him images that would constitute child pornography.

“Those who exploit children—especially from a position of trust—will be held fully accountable,” said Homeland Security Investigations Assistant Special Agent in Charge Nicholas Ingegno. “This case is a stark reminder of the harm done when an adult abuses their authority, their technology, and their access to target a child. We will use every tool under the law to stop that abuse, to protect victims, and to hold these predators fully accountable.”

The defendant’s sentence of imprisonment will be followed by a 10-year term of supervised release and a requirement to register as a sex offender for the rest of his life. Eubanks was also ordered to pay restitution to his victim.

The case involved a joint investigation by the Leon County Sheriff’s Office and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Justin M. Keen.

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 and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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.

TALLAHASSEE MAN SENTENCED TO FOUR YEARS IN PRISON FOR CONVERTED GLOCK MACHINEGUNS

Source: United States Department of Justice Criminal Division

TALLAHASSEE, FLORIDA – Anthony Lamorris Davis, Jr., 21, of Tallahassee, Florida, was sentenced to four years in federal prison for two counts of possession of a firearm by a convicted felon and two counts of possession of a machinegun. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “Our state and federal law enforcement partners work hard every day to keep our communities safe from violent criminals like this defendant, and my office will continue to back up those efforts with successful prosecutions. The residents of the Northern District of Florida deserve safe streets and crime-free communities, and that is exactly what my office intends to achieve.”

Court documents reflect that on both July 21, 2024, and October 25, 2024, officers of the Tallahassee Police Department caught the defendant in possession of a Glock firearm that had been converted into a machinegun. Davis has five prior felony convictions, including two convictions for aggravated assault with a firearm.

The defendant’s prison sentence will be followed by four years of supervised release.

“Taking illegal guns out of the hands of convicted felons is essential to making our streets safer. This arrest is another example of the unwavering dedication our officers show in confronting gun violence and reducing the harm it causes in our community,” said Chief Revell. “I am grateful for their commitment to this work and the determination they bring to every investigation. We will continue doing everything we can to reduce gun violence and keep our community safe.”

The case involved an investigation by the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney James A. McCain.

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.

As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.

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.

St. Michael, North Dakota, Man Indicted for Murder and Manslaughter

Source: United States Department of Justice Criminal Division

FARGO – United States Attorney Nicholas W. Chase announced the United States District Court for the District of North Dakota unsealed an Indictment revealing that a federal grand jury returned a true bill of indictment charging D’Angelo James Hunt, age 26, of St. Michael, North Dakota, with ten federal felonies including murder and manslaughter.

On November 17, 2025, Hunt was charged by criminal complaint with Second Degree Murder of I.H. He waived a detention hearing following his initial appearance and remains in custody.

The Grand Jury then returned a true bill of indictment charging Hunt with nine additional counts. Hunt’s charges are as follows: Three Counts of Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner, or Dating Partner; Two Counts of Assault of a Spouse, Intimate Partner, or Dating Partner by Strangulation; Assault Resulting in Serious Bodily Injury; Voluntary Manslaughter; Second Degree Murder within Indian country; Tampering with Evidence; and Use of Fire to Commit a Felony.

The indictment includes six counts of assaults committed by Hunt against J.M.P. as well as one count of voluntary manslaughter against J.M.P. In addition to the second-degree murder of I.H., the indictment charges Hunt with tampering with evidence and use of a fire to commit felony as it relates to the murder. 

The Indictment in this case is not evidence of guilt. The Defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.

“Today’s unsealing of this Indictment marks an important step toward justice in a case that has weighed heavily on the victims’ families and the Spirit Lake community for more than two years, said United States Attorney Nicholas W. Chase.  “No indictment can undo their loss, but it affirms our commitment to pursuing accountability with care, diligence, and resolve.  Of course, an Indictment is not proof of guilt, and the Defendant is presumed innocent until proven guilty.  Violent crime remains one of the highest priorities of this office, and we will continue to devote the resources necessary to hold violent offenders accountable.  I want to commend our law-enforcement partners, who have worked tirelessly and followed every lead to move this case forward.  The investigation in this case is ongoing, with the goal of bringing a family some measure of closure through the recovery of J.M.P.”

“The charges alleged in this indictment are one more brutal example of violence against indigenous women. Too many women and men face fear and violence on tribal lands,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “Through exhaustive investigation and strong collaboration with our tribal, state, and federal partners, the FBI is fully committed to holding violent criminals accountable and protecting safe communities. The indictment of Hunt is the first step in securing much-deserved justice for two victims, their families, and the community.”

“President Trump and Secretary Burgum are committed to bringing forth all available resources to protect tribal communities and deliver justice on behalf of the victims and their families,” said Billy Kirkland, Assistant Secretary for Indian Affairs at the Department of the Interior. “I appreciate the close collaboration with our law enforcement partners that led to this arrest and prosecution. Together, we may bring closure and peace to families impacted by violence and hold those responsible to account for their actions.”

This case is being investigated by Federal Bureau of Investigation, Bureau of Indian Affairs, North Dakota Bureau of Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by the United States Attorney’s Office, with Assistant United States Attorneys Lori H. Conroy and Samantha L. Schmidt, and First Assistant United States Attorney Jennifer Klemetsrud Puhl assigned.

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Nine Indicted On Multiple Charges Arising From Armed Burglaries Of Marijuana Grow Facilities That Resulted In Death Of Oakland Police Officer

Source: United States Department of Justice Criminal Division

OAKLAND – A federal grand jury has indicted Allen Brown, Sebron Russell, Marquise Cooper, Janiero Booth (a/k/a Javon Herrington), Jowaun Jones, Shawn McGee, and Salvador Munguia on charges of conspiring to distribute, possessing with intent to distribute, and attempting to possess with intent to distribute more than 100 marijuana plants.  Brown and Russell were additionally charged with discharging and brandishing a firearm, respectively, in connection with a drug trafficking crime.  Two other defendants, Jasmine Kumar and Felicia Sanders, were charged with accessory after the fact.

All nine defendants were arrested yesterday or were already in custody.  Defendants made their initial appearances in federal district court in San Francisco today.

According to the indictment filed on November 20, 2025, and unsealed today, the charges relate to three armed burglaries of a marijuana grow facility in Oakland, California, between late evening December 28, 2023, and early morning December 29, 2023.  Oakland Police Department (OPD) officers responded to the third burglary, and the suspects fled in multiple vehicles.  During the pursuit, an unnamed co-conspirator fired more than 20 shots at one of the OPD vehicles, killing Officer Tuan Le.

Following Officer Le’s death, Jasmine Kumar, the shooter’s girlfriend, and Felicia Sanders, the shooter’s mother, knowing that the shooter had stolen marijuana and murdered Officer Le, allegedly assisted the shooter in order to hinder and prevent his apprehension by law enforcement, including by furnishing him with a one-way plane ticket.

As alleged, Brown, Russell, Cooper, and the unnamed co-conspirator organized and perpetrated a series of three separate armed burglaries of the marijuana grow facility.  They recruited additional individuals, including Booth, Jones, McGee, and Munguia, for the third attempted burglary, which occurred around 4:00 a.m.  In total, the perpetrators are alleged to have stolen more than 100 marijuana plants.

The indictment describes that when undercover OPD officers, including Officer Le, arrived at the scene, the suspects fled the location in multiple vehicles.  As suspects exited the building, the unnamed co-conspirator brandished a firearm at OPD’s unmarked undercover vehicle.  Two OPD undercover vehicles chased two vehicles fleeing from the burglary scene.  One vehicle, driven by Brown, followed the OPD vehicle driven by Officer Le.  The unnamed co-conspirator, who was the passenger in Brown’s vehicle, fired the shots that killed Officer Le.

United States Attorney Craig H. Missakian and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Special Agent in Charge Robert Topper made the announcement.

Some of the defendants are scheduled to appear on December 15, 2025, for bail proceedings before Magistrate Judge Thomas S. Hixson.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, the defendants face maximum sentences as set forth in the following chart.  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.

Defendant Charge(s) Maximum Penalties
Allen Brown

Counts One, Two, Three & Five:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(iii) – Discharging a Firearm in Connection with a Drug Trafficking Crime

Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.

Count Five: maximum of life imprisonment, a mandatory consecutive minimum of 10 years’ imprisonment, and a $250,000 fine.

Sebron Russell

Counts One, Two, Three & Four:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants; and 18 U.S.C. § 924(c)(1)(A)(ii) – Brandishing a Firearm in Connection with a Drug Trafficking Crime

Counts One, Two, and Three: maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.

Count Four: maximum of life imprisonment, a mandatory consecutive minimum of 7 years’ imprisonment, and a $250,000 fine.

Marquise Cooper

Counts One, Two & Three:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; 21 U.S.C. § 841(a)(1), (b)(1)(B) – Possession with Intent to Distribute Over 100 Marijuana Plants; and

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants

Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Janiero Booth (a/k/a Javon Herrington)

Counts One & Three:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants

Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Jowaun Jones

Counts One & Three:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants

Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Shawn McGee

Counts One & Three:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants

Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Salvador Munguia

Counts One & Three:

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Conspiracy To Distribute and to Possess with Intent to Distribute Over 100 Marijuana Plants; and

21 U.S.C. §§ 846, 841(a)(1), (b)(1)(B) – Attempted Possession with Intent to Distribute Over 100 Marijuana Plants

Maximum of 40 years’ imprisonment, mandatory minimum of 5 years’ imprisonment, and $5,000,000 fine.
Jasmine Kumar Count Six: 18 U.S.C. § 3 – Accessory After the Fact Maximum of 15 years’ imprisonment and $125,000 fine.
Felicia Sanders Count Six: 18 U.S.C. § 3 – Accessory After the Fact Maximum of 15 years’ imprisonment and $125,000 fine.

Assistant U.S. Attorneys Alethea Sargent and Kelly Volkar are prosecuting the case with the assistance of Laurie Worthen and Amala James.  The prosecution is the result of an investigation by the ATF and OPD, with assistance from the Drug Enforcement Administration, U.S. Marshals, FBI, OPD, California Highway Patrol, Concord Police Department, and Pittsburg Police Department for yesterday’s arrests.

UNDOCUMENTED FELON SENTENCED FOR RE-ENTERING THE UNITED STATES ILLEGALLY

Source: United States Department of Justice Criminal Division

St. Thomas, VI – United States Attorney Adam F. Sleeper announced today that a Dominican Republic national, Tommy Walter Ramirez, 36, was sentenced to 20 months’ incarceration by Chief District Judge Robert Molloy.
According to court documents, on May 24, 2025, Homeland Security Investigations, Enforcement and Removal agents and the United States Marshals apprehended Tommy Walter Ramirez. When apprehended, Ramirez did not have any identification on him. A biometric fingerprint check came back positive for Ramirez, who was assigned an alien registration number by Citizen and Immigration Services (CIS).
Record checks revealed that on April 22, 2022, Ramirez was deported from the United States to the Dominican Republic and ordered not to return. A review of Ramirez’s immigration file did not show any legal entries into the United States, nor did Ramirez show any proof that he was given advance, written permission to re-enter the United States by the United States Attorney General or the Secretary of the Department of Homeland Security. Further, Ramirez’s criminal history showed that while residing illegally in the Virgin Islands, Ramirez sustained two felony convictions for conspiring to possess with intent to distribute cocaine.
The case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Natasha Baker.

Crypto-Enabled Fraudster Sentenced For Orchestrating $40 Billion Fraud

Source: United States Department of Justice Criminal Division

Do Kwon, Founder of Terraform Labs, Sentenced to 15 Years for Fraud and Manipulation

United States Attorney for the Southern District of New York, Jay Clayton, announced today that DO HYEONG KWON was sentenced to 15 years in prison for committing wire fraud and conspiring to commit securities fraud, commodities fraud, and wire fraud in connection with KWON’s fraud centered around Terraform Labs PTE, Ltd. (“Terraform”), and the cryptocurrencies launched by Terraform.  KWON was extradited on December 31, 2024, and pled guilty in August 2025 before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.

“Do Kwon devised elaborate schemes to mislead investors and inflate the value of Terraform’s cryptocurrencies for his own benefit,” said U.S. Attorney Jay Clayton.  “When his crimes caught up to him, Kwon embarked on a deceptive public relations campaign to cover up his fraud, laundered the proceeds of his illegal schemes, and sought to purchase political protection in foreign countries to evade criminal prosecution. Let there be no mistake, fraud is fraud whether it takes place on our streets, in our securities markets, or in our emerging and important digital asset ecosystem, and no matter where in the world criminals may seek refuge, the women and men of the Southern District of New York will relentlessly pursue justice for investors and protect the integrity of financial markets.”

According to the allegations in the Superseding Indictment and statements made in public court filings and proceedings:

From at least in or about 2018, up to and including in or about 2022, KWON orchestrated schemes to defraud purchasers of cryptocurrencies created and issued by Terraform.  Terraform was a blockchain and cryptocurrency company co-founded by KWON in 2018. Terraform distinguished the Terra blockchain from other competing blockchains by issuing so-called algorithmic stablecoins pursuant to what it called the “Terra Protocol.”  According to KWON and others, Terraform stablecoins maintained a steady value even under changing market conditions.  In or around September 2020, Terraform publicly announced the launch of Terraform’s stablecoin pegged to the U.S. dollar, TerraUSD (“UST”).  Terraform promotional materials claimed that, under the Terra Protocol, one UST could always be exchanged for $1 worth of LUNA, the Terra blockchain’s native token. Conversely, $1 worth of LUNA could always be exchanged for one UST.

KWON claimed that Terraform had used blockchain technology to create a self-contained, decentralized financial world with its own money, payment system, stock market, and savings bank.  KWON presented Terraform as having developed functioning, reliable financial technologies on the cutting edge of a movement towards “decentralized finance” (or “DeFi”), in that Terraform’s products purportedly operated largely through automated mechanisms and economic incentives, and that Terraform’s systems were governed by their users rather than by KWON and his associates and subordinates.

In fact, core Terraform products did not work as KWON advertised and were manipulated to create the illusion of a functioning and decentralized financial system in order to lure investors.  KWON engaged in this deceptive conduct in order to pump up the value of Terraform’s cryptocurrencies, which KWON and entities he controlled (a) possessed in large amounts and (b) sold to investors in exchange for billions of dollars’ worth of other assets.

The misrepresentations that KWON made in furtherance of his schemes to defraud included the following:

  1. The Stablecoin Misrepresentations: KWON lied about the effectiveness of the system that lay at the heart of Terraform’s cryptocurrency empire, the “Terra Protocol,” which purportedly used a computer algorithm to maintain the value of Terraform’s so-called “stablecoin” pegged to the U.S. dollar, TerraUSD (“UST”), at a value of $1 for one UST.  Beginning at least in or about 2020, KWON and his associates advertised the Terra Protocol, including the economic incentives it created in the market, as sufficient on its own to maintain parity between one UST and one U.S. dollar.  In particular, KWON claimed that the Terra Protocol on its own had caused the successful restoration of UST’s $1 value after it dropped below 92 cents in or about May 2021.  That was a lie.  In truth, after the Terra Protocol on its own failed to cause the restoration of UST’s $1 peg in May 2021, KWON reached an agreement with executives at a high-frequency trading firm (the “Trading Firm”) to have the Trading Firm purchase large amounts of UST to artificially support UST’s $1 peg.  UST’s $1 peg was restored in May 2021 only after the Trading Firm strategically purchased millions of dollars of UST for the purpose of artificially propping up the peg.
  2. The LFG Misrepresentations:  KWON lied about the governance of the Luna Foundation Guard Ltd. (the “LFG”), a purportedly independent body the creation of which KWON publicly announced in or about January 2022.  KWON claimed that the LFG was managed by a governing body that operated independently of Terraform and was tasked with deploying billions of dollars’ worth of financial reserves to defend UST’s peg.  In truth, KWON simultaneously controlled both the LFG and Terraform at all relevant times following the creation of the LFG; operated the LFG as an arm of Terraform rather than as an independent entity; repeatedly made significant financial decisions for the LFG without the prior approval of its governing body; and treated the LFG’s funds as interchangeable with Terraform’s funds when it suited KWON’s interests, resulting in KWON misappropriating hundreds of millions of dollars in assets from the LFG. KWON and others acting at his direction then sought to launder those misappropriated funds using a variety of transactions designed to conceal and disguise the nature, location, source, ownership, and control of the funds.
  3. The Mirror Misrepresentations: KWON lied about the control, operation, and extent of user adoption of an investing application on the Terra blockchain called Mirror Protocol (“Mirror”), that purportedly allowed for the creation, buying, and selling of synthetic versions of stocks listed on United States securities exchanges.  KWON claimed that Mirror operated in a decentralized manner and that he and Terraform played no role in Mirror’s governance.  In truth, KWON and Terraform secretly maintained control over Mirror, and used automated trading bots to manipulate the prices of synthetic assets issued by Mirror.  KWON funded those manipulative trading bots in part by using a supply of one billion stablecoins that he created at the genesis of the Terra blockchain (the “Genesis Stablecoins”).  KWON also caused Terraform to inflate key user metrics to deceive investors about the extent of Mirror’s adoption and decentralization.
  4. The Chai Misrepresentations: KWON falsely claimed that the Terra blockchain was being used to process billions of dollars in financial transactions for the Korean payment-processing application Chai.  KWON pointed to Chai’s purported use of the Terra blockchain as evidence that Terra had “real world” applications or uses, as distinct from competing cryptocurrency platforms.  In truth, Chai processed transactions through traditional financial processing networks, not the Terra blockchain.  To create the illusion that Chai processed transactions through the Terra blockchain, KWON and his co-conspirators used an automated process that copied transactions onto the Terra blockchain.  KWON used the Genesis Stablecoins in part to fund these fraudulent efforts.
  5. The Genesis Coin Misrepresentations: When the Terra blockchain was first established in or about 2019, KWON arranged for it to have a preexisting supply of approximately one billion Terra stablecoins (the Genesis Stablecoins).  KWON provided limited, shifting, and knowingly false disclosures to investors about the Genesis Stablecoins.  Rather than using the Genesis Stablecoins solely for the purposes set forth in disclosures to investors, KWON used the Genesis Stablecoins for fraudulent purposes, such as funding (i) fake Chai blockchain transactions and (ii) trading bots to manipulate the prices of synthetic assets issued by Mirror.

Enticed, in part, by the fraudulent claims of KWON, both institutional and retail investors flocked to the Terra blockchain, such that, at its peak in the spring of 2022, the total market value of all UST and another Terraform cryptocurrency, LUNA, exceeded $50 billion.  KWON solicited and obtained investments from several investment firms in the United States and other locations, with the investments primarily consisting of agreements for the purchase or loan of Terraform’s cryptocurrencies built on the Terra blockchain.  Much of this growth followed KWON’s brazen deceptions about Terraform and its technology, including efforts by KWON and his associates to paper over UST’s vulnerabilities in May 2021 by secretly manipulating the market for UST.

By May 2022, UST’s peg began to break again.  By this time, the UST market was approximately nine times larger in terms of market capitalization and more than eight times larger in terms of daily trading volume relative to one year prior, in May 2021, when KWON sought to deceptively manipulate UST to maintain its $1 value.  While KWON was able to cover up the weaknesses of the Terra Protocol in May 2021, he was not able to do so in May 2022 when the market had expanded substantially.  As a result, UST and LUNA crashed, resulting in over $40 billion worth in investor losses.

After the crash of UST and LUNA in May 2022, and the initiation of government investigations in multiple jurisdictions into the crash, KWON sought to continue Terraform’s business operations and made public remarks about being in “full cooperation” with law enforcement inquiries.  In truth, KWON sought to evade accountability.  In a recorded conversation with an associate in or about August 2022, for example, KWON stated, in substance and in part, that his strategy with law enforcement investigating the crash of UST and LUNA was to “tell them to fuck off,” and that he had been taking steps to obtain “political protection” from multiple countries and was “pretty comfortable” that he would not be extradited to face criminal charges.

On or about March 23, 2023, KWON was arrested in Montenegro for trying to use a fraudulent passport.

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In addition to the prison term, KWON, 34, of the Republic of Korea, was ordered to forfeit over $19 million in proceeds from his illegal schemes, including his interest in Terraform and its cryptocurrencies.

Mr. Clayton praised the investigative work of the Federal Bureau of Investigation (“FBI”), FBI’s Virtual Assets Unit, FBI’s Economic Crimes Unit, FBI’s International Operations Division, and the Department of Justice’s Office of International Affairs for their assistance.  Mr. Clayton further thanked the U.S. Securities and Exchange Commission, which previously conducted a separate civil action against KWON.  Mr. Clayton commended the Ministry of Justice of the Republic of Montenegro and the Ministry of Justice of the Republic of Korea for their cooperation and assistance in this matter.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Marguerite B. Colson, Sarah Mortazavi, and Kimberly Ravener are in charge of the prosecution.

Kauai Woman Sentenced to Over 12 Years’ Imprisonment for Drug Trafficking

Source: United States Department of Justice Criminal Division

HONOLULU – United States Attorney Ken Sorenson announced that Faith Michelle Nelson, 52, of Kauai, was sentenced yesterday in federal court by Senior United States District Judge Leslie E. Kobayashi to 151 months’ imprisonment followed by 5 years’ supervised release after pleading guilty to possessing with intent to distribute methamphetamine. Nelson has been detained since her initial arrest in this case on April 10, 2024.

According to court records, Nelson was part of a conspiracy that was acquiring controlled substances through the U.S. mail and was engaged in the distribution of methamphetamine on Kauai. In total, Nelson was held responsible for over 18 pounds of methamphetamine. 

Nelson is one of eleven defendants charged in three separate indictments for crimes related to the operation of a trans-Pacific drug trafficking network, nine of whom have pled guilty with the remaining awaiting trial. Nelson is the first defendant in a nine-defendant indictment to be sentenced. The overall investigation yielded seizures of more than 150 pounds of methamphetamine, several kilograms of fentanyl and carfentanil, eight firearms, ammunition, and over $150,000 in cash.

On April 30, 2025, in one of the related cases charged by separate indictment, Shawn Pauahi Santana was sentenced to 240 months’ imprisonment and 5 years’ supervised release after pleading guilty to conspiring to distribute and possess with intent to distribute methamphetamine and to distributing methamphetamine. 

“Yesterday’s sentence represents a significant step in bringing to justice the trans-Pacific criminal enterprise that Nelson and her coconspirators used to flood communities in Hawaii, Alaska, and beyond with deadly drugs,” said U.S. Attorney Ken Sorenson. “We credit our tremendous law enforcement partners with helping to expose and dismantle this dangerous drug operation.”

“This sentencing and related investigation mark a crucial moment in the ongoing fight to protect our citizens from the deadly drugs that plague our island communities,” said FBI Honolulu Special Agent in Charge David Porter. “We are grateful for the tremendous partnerships across all levels of law enforcement in this joint effort, and we will continue to use every available resource to protect our communities and bring these trans-Pacific criminal enterprises to justice.”

“This individual has an extensive history of harming our community and putting countless families at risk,” said Chief Kalani Ke, Kaua‘i Police Department. “Today’s sentence holds her accountable for her actions and demonstrates that such destructive behavior will not be tolerated. We commend our federal partners for helping end this operation, and we remain committed to keeping Kaua‘i safe from those who bring dangerous drugs into our communities.”

This case was investigated by the Federal Bureau of Investigation, with assistance from the Kauai, Maui, and Honolulu Police Departments, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. 

Assistant U.S. Attorney Margaret C. Nammar is prosecuting the case.