Category: MIL-OSI

Source: United States Department of Justice Criminal Division

A federal grand jury in the District of Columbia returned an indictment yesterday charging a former senior manager at a Virginia-based government contractor with major government fraud, wire fraud, and obstructing federal audits for allegedly carrying out a multi-year scheme to mislead federal agencies about the security of a cloud-based platform used by the U.S. Army and other government customers.

According to court documents, from approximately March 2020 through at least November 2021, Danielle Hillmer, 53, of Chantilly, Virginia, allegedly carried out a scheme to defraud the United States by obstructing federal auditors and falsely representing that the contractor’s cloud platform had implemented required security controls. The indictment alleges that, although the platform was marketed as a secure environment for federal agencies, Hillmer concealed the platform’s noncompliance with security controls under the Federal Risk and Authorization Management Program (FedRAMP) and the Department of Defense’s Risk Management Framework. Specifically, the indictment alleges that Hillmer falsely represented that security controls were implemented at the FedRAMP High baseline and at Department of Defense Impact Levels 4 and 5, despite repeated warnings that the system lacked required access controls, logging, monitoring, and other security capabilities.

As part of the scheme, Hillmer allegedly sought to influence and obstruct third-party assessors during required audits in 2020 and 2021 by concealing deficiencies and instructing others to hide the true state of the system during testing and demonstrations. She also allegedly made false and misleading representations to the U.S. Army to induce it to sponsor the platform for a Department of Defense provisional authorization. According to the indictment, Hillmer submitted, and caused others to submit, authorization materials to assessors, authorizing officials and government customers that she knew contained materially false information in order to obtain and maintain government contracts and authorizations to operate.

Hillmer is charged with two counts of wire fraud, one count of major government fraud and two counts of obstruction of a federal audit. If convicted, Hillmer faces a maximum penalty of 20 years in prison for wire fraud, a maximum penalty of 10 years in prison for major government fraud and a maximum penalty of five years in prison for each count of obstruction of a federal audit. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Deputy Inspector General Robert C. Erickson of the U.S. General Services Administration Office of Inspector General (GSA-OIG) made the announcement.

The GSA-OIG, Defense Criminal Investigative Service, Naval Criminal Investigative Service and The Department of the Army Criminal Investigation Division are investigating the case.

Trial Attorneys Lauren Archer and Paul Hayden of the Criminal Division’s Fraud 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

Jackson, TN – Charles Belk, 51, of Union City, Tennessee, has been sentenced to 235 months in federal prison for possessing a large quantity of methamphetamine with the intent to distribute it, in violation of federal law. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.

According to evidence presented in court, on January 31, 2024, postal inspectors with the U.S. Postal Inspection Service were alerted to a suspicious package that was mailed from California to an apartment complex in Union City. The package came to their attention because it had similar characteristics to previous packages that had been delivered to the same apartment complex and which had been tracked by an IP address in Mexico. After securing a federal search warrant on the package, law enforcement determined that it contained over 2,200 grams of suspected methamphetamine.

When law enforcement delivered the package to the apartment complex, Belk took the package—which was addressed to a different recipient and apartment number—into his possession and brought it into his apartment. A search warrant execution at Belk’s apartment led to the seizure of an additional amount of methamphetamine, over $7,000 of U.S. currency, and several firearms. Further investigation revealed that Belk had been using his neighbors’ names and addresses to receive prior packages. In all, the amount of actual methamphetamine involved was over 1,700 grams.       

Belk pled guilty to two counts of possessing with the intent to distribute actual methamphetamine. On December 5, 2025, United States District Court Judge S. Thomas Anderson sentenced Belk to 235 months’ imprisonment with five years of supervised release to follow. There is no parole in the federal system.  

U.S. Attorney D. Michael Dunavant said, “Methamphetamine continues to destroy individuals, families, and communities in West Tennessee, and we will continue to aggressively investigate, prosecute, and punish drug dealers to hold them accountable. Belk has sowed addiction and pain into the rural Northwest Tennessee community, and now he will reap the consequence of a long prison sentence.”

This case was investigated by the United States Postal Inspection Service, the Tennessee Bureau of Investigation, and the 27th Judicial District Drug Task Force.

Assistant United States Attorney Immanuel Chioco prosecuted this case on behalf of the government.

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For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

Source: United States Department of Justice Criminal Division

PITTSBURGH, Pa. – A federal grand jury in Pittsburgh has indicted 13 individuals from Pennsylvania, California, New York, Florida, and New Mexico on charges of violating federal drug and firearm laws, First Assistant United States Attorney Troy Rivetti announced today. The seven-count Indictment follows a two-year investigation into the drug trafficking organization.

The Indictment named the following individuals as defendants:

According to the Indictment, from January 2023 to April 2024, Francisco-Tomas, Flores-Cedeno, Vega, Rivera, Gonzalez-Gonzalez, Flores, Johnson, Mitchell, Simmons, and Wilson conspired to distribute and possessed with intent to distribute five kilograms or more of cocaine. Additionally, on August 30, 2023, Rivera possessed with intent to distribute five kilograms or more of cocaine. On February 17, 2024, both Francisco-Tomas and Flores-Cedeno possessed with intent to distribute five kilograms or more of cocaine. The Indictment further alleges that, on January 17, 2023, Ruan engaged in monetary transactions in property derived from specified unlawful activity, and that, from in and around January 2023 through in and around April 2024, Xia, Canizales-Soto, Francisco-Tomas, Flores-Cedeno, Vega, Rivera, Gonzalez-Gonzalez, and Flores participated in interstate travel or transmission in aid of racketeering. Finally, the Indictment charges that, on October 5, 2023, Mitchell possessed a firearm and ammunition as a previously convicted felon. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

For Francisco-Tomas, Flores-Cedeno, Vega, Rivera, Gonzalez-Gonzalez, Flores, Johnson, Mitchell, Simmons, and Wilson, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. For Ruan and Xia, the law provides for a maximum total sentence of up to 10 years in prison, a fine of up to $250,000, or both. For Canizales-Soto, the law provides for a maximum total sentence of up to five years in prison, a fine of up to $250,000, or both. In relation to the firearms charge for Mitchell, the law provides for a maximum sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. The HSTF for the Western District of Pennsylvania comprises agents and officers from the Drug Enforcement Administration and Internal Revenue Service, with the prosecution being led by the United States Attorney’s Office for the Western District of Pennsylvania.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Source: United States Department of Justice Criminal Division

            WASHINGTON – Jennifer May, 43, of the District of Columbia, was sentenced today in U.S. District Court to more than 12 months in federal prison for her role in a scheme that defrauded $1,500,000 in Economic Injury Disaster Loans (EIDL) from the U.S. Government, announced U.S. Attorney Jeanine Ferris Pirro.

            May pleaded guilty on Aug. 27, 2025, to an Information charging her with one count of wire fraud. In addition to the more than 12-month term of incarceration, Judge Christopher R. Cooper ordered May to serve three years of supervised release. Under the terms of her plea agreement, May also must return the $1,500,000 to the United States.

            Joining U.S. Attorney Pirro in the announcement were Executive Special Agent in Charge Kareem Carter of the Internal Revenue Service – Criminal Investigation (CI), Washington, D.C. Field Office and Inspector in Charge Damon E. Wood U.S. Postal Inspection Service, Washington Division

            According to court documents, May was founder and owner of Next Level Partners LLC, a consulting firm specializing in assisting campaigns with complying with campaign finance regulations and managing their accounts payable functions.

            In October 2021, May applied for a second modification to an original EIDL application, requesting an additional $1,500,000 in EIDL funds for Next Level Partners.

            The EIDL was a response to the COVID-19 pandemic in which the U.S. Small Business Administration offered small business owners low-interest, long-term loans. The funds were intended to be used for working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt.

            May falsely certified on loan applications that she would use all loan proceeds only for business-related purposes. Yet the very same day that the SBA disbursed the funds to NLP’s account, May began diverting hundreds of thousands of dollars into her personal accounts and, from there, to cryptocurrency exchanges where she speculated on a thinly traded  crypto-asset called “Tomb.” 

            Upon sustaining hundreds of thousands of dollars of losses from her speculation, May took what remained of the EIDL funds and went on to purchase real estate in Middleburg, Virginia and to buy a restaurant-bar-childcare space in Northeast Washington known as The Lane at Ivy City. The purchases were completely unrelated to NLP’s business operations.

            This case was investigated by the U.S. Postal Inspection Service and IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Will Hart of the Fraud, Public Corruption, and Civil Rights Section.

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Source: United States Department of Justice Criminal Division

Telehealth Company Agrees to Pay $300,000 to Resolve False Claims Act Allegations

CONCORD –U.S. Attorney Erin Creegan announced today that the U.S. Attorney’s Office for the District of New Hampshire has entered into a settlement agreement with LifeWorks Counseling Associates, PLLC and its owner Dr. David Ferruolo where they will pay $300,000 to resolve allegations that they violated the False Claims Act by improperly billing Medicaid for services provided by an individual excluded from the Medicaid program.

No program payments may be made for services furnished by an individual excluded by the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”).  HHS-OIG has advised health care providers to check the List of Excluded Individuals/Entities on the HHS-OIG web site (http://oig.hhs.gov/exclusions) in order to avoid potential liability.

LifeWorks is telehealth mental health provider based in New Hampshire. The United States contended that Ferruolo and LifeWorks submitted claims and received reimbursement from Medicaid for services provided by Erik Alonso, who was excluded from federal health care programs by HHS-OIG at the time such services were provided, which were therefore not reimbursable.  To resolve their liability, Ferruolo and his company will pay $300,000. The settlement amount is based on their ability to pay.

The U.S. Attorney’s Office, along with the Criminal Division’s Fraud Section, also handled the criminal prosecution of Erik Alonso, who pleaded to one count of healthcare fraud on October 23, 2025. LifeWorks and Ferullo fully cooperated in the parallel criminal investigation.

U.S. Attorney Creegan said, “A provider is federally excluded from being paid to give heathcare for good reasons, such as prior fraud, criminal convictions, or patient abuse.  To protect the public, we will hold accountable those who violate healthcare exclusions.”

“The exclusion authority is a cornerstone of our efforts to protect federal health care programs from fraud and abuse,” said Roberto Coviello, Special Agent in Charge for the U.S. Department of Health and Human Services Office of Inspector General. “When providers submit claims to the Medicaid program for services rendered by excluded individuals, they violate a fundamental safeguard designed to ensure program integrity. This settlement sends a clear message: we will hold providers accountable when they fail to comply with exclusion rules.”

“This settlement should put others on notice that exploiting federally funded health care programs will not be tolerated and those who engage in this type of activity will be identified and held accountable,” said Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division. “The FBI will continue to work with our partners to protect taxpayers’ resources from those who would take advantage of such programs for their own greed.”

This case was investigated by HHS-OIG and the FBI. The case was handled by Civil Chief Raphael Katz.  There was no admission of liability.

Source: United States Department of Justice Criminal Division

Ken Yiu admitted to federal agents that he was “growing weed” in Saint Albans

Source: United States Department of Justice Criminal Division

WHEELING, WEST VIRGINIA – Nicholas Esteves Spencer, age 42, of Littleton, West Virginia, was sentenced today to 120 months in federal prison for failing to update his sex offender registration, announced U.S. Attorney Matthew L. Harvey. 

According to court documents, Spencer has a lifetime sex offender registration requirement because of an indecent assault of a minor conviction in Massachusetts in 2005. Spencer was living in Wetzel County but didn’t register as a sex offender with the West Virginia State Police.

Spencer will serve five years of supervised release following his prison sentence.

Assistant U.S. Attorney Jennifer Conklin prosecuted the case on behalf of the government.

The United States Marshals Service, West Virginia State Police, the Wetzel County Sheriff’s Office, and the Granville Police Department investigated.

U.S. District Judge John Preston Bailey presided.

Source: United States Department of Justice Criminal Division

Epping Man Sentenced to 27 Years in Prison for Purchasing Live-Streamed Child Sex Abuse Material

 

CONCORD – David Mendum, 46, of Harrisville, was sentenced to 27 years in prison for his conduct involving the sexual exploitation of minors, U.S. Attorney Erin Creegan announces.

On December 10, 2025, U.S. District Judge Paul J. Barbadoro sentenced Mendum on one count of coercion and enticement of a minor to engage in criminal sexual activity, to 324 months’ imprisonment. The Court also sentenced Mendum to 5 years of federal supervision following his release from prison.

According to court documents and statements made in court, Mendum was paying a child sex trafficker in the Philippines to create live-stream child sexual abuse material and transmit it to him over the internet. 

“Today’s sentence reflects the profound seriousness of this crime,” said United States Attorney Creegan. “By paying to watch the live-streamed sexual abuse of children, the defendant fueled the exploitation of the most vulnerable victims. Our office, together with our law enforcement partners, will seek to hold those accountable those who finance and direct the sexual abuse of children.”

“Over the course of years, Mendum paid child traffickers in the Philippines so he could watch and direct the sexual abuse of children. He did this hundreds of times, paying over $39,000. The depravity and scope of this crime are beyond comprehension. Yet our investigators and partners pursued a global investigation to identify and bring Mendum to justice for his irreparable abuse of children,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations in New England. “Today’s sentence shows just how seriously we take these crimes. We can’t give back the years stolen from the children he victimized, but with every predator we bring to justice, we gain critical intelligence and move one step closer to stopping other offenders like him.”

The Department of Homeland Security led the investigation. The New Hampshire Internet Crimes Against Children Task Force, Epping Police Department provided valuable assistance. Assistant U.S Attorney Anna Z. Krasinski is prosecuting the case.

The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 better 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.projectsafechildhood.gov/.

Source: United States Department of Justice Criminal Division

BOSTON – A South Carolina businessman has been charged today in federal court in Worcester with COVID relief fraud.

David Breen, 54, of Mount Pleasant, S.C., was charged by an Information with one count of theft of government property, for allegedly misappropriating COVID-19 funds for personal use.

According to court filings, Breen allegedly spent more than $1.2 million in Economic Injury and Disaster Loan (EIDL) money that he obtained from the U.S. Small Business Administration (“SBA”) to build a home and purchase motor vehicles. Through the EIDL program, the SBA provided loans to small businesses that suffered substantial economic injury due to the COVID-19 pandemic.  

Specifically, it is alleged that in March 2022, Breen applied for EIDL funds on behalf of ‘Fun Zone,’ an entity through which he operated ‘Pinz,’ a bowling alley and other entertainment venue in Milford, Mass. To obtain the loan, Breen allegedly entered into a loan agreement with the SBA in which he agreed, among other things, to use the loan proceeds as working capital for his business. After receiving approximately $1.5 million from the SBA, Breen allegedly used more than $1.2 million of this money, through June 2023, to build a home for himself in Mount Pleasant, S.C., to purchase a $111,000 truck and for a downpayment on a $98,289 Mercedes.

The charge of theft of government property carries a maximum penalty of up to 10 years in prison, up to three years of supervised release and a fine up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Massachusetts Inspector General S. Jeffrey Shapiro made the announcement. Valuable assistance was provided by the U.S. Small Business Administration, Office of Inspector General, Boston Region. Assistant U.S. Attorney Brendan D. O’Shea of the Worcester Branch Office is prosecuting the case.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit  https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via theNCDF Web Complaint Form.
        
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Timothy VerHey today announced that Christian Anthony Vanderveen, 25, of Baldwin, Michigan, was sentenced to 25 years in prison for the sexual exploitation of a minor.

In December 2024, a woman called 911 to report that Vanderveen had been sending explicit pictures to her 11-year-old daughter. A police investigation led to a search at Vanderveen’s home and the seizure of multiple devices. In reviewing his cell phone, law enforcement discovered that Vanderveen repeatedly asked for and received child pornography from the 11-year-old girl, as well as posing as a girl online in an attempt to get sexually explicit images from another minor.

“Judge Beckering’s sentence today sends a clear message to anyone who is thinking of preying on our kids—just don’t do it.  If you do, we will find you and the consequences will be severe,” said United States Attorney Timothy VerHey. 

“This sentencing demonstrates the serious consequences awaiting those who target and prey on children,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “The sexual exploitation of these children was stopped due to the excellent investigative teamwork of the FBI Grand Rapids WEBCHEX Task Force, the Michigan State Police, along with the successful prosecution by the U.S. Attorney’s Office for the Western District of Michigan. The FBI and its partners in Michigan remain committed to doing everything we can to protect our most vulnerable populations from harm.”

“Protecting children is one of our highest responsibilities,” said Captain Jason Nemecek of the Michigan State Police 6th District Command. “The Michigan State Police will continue to work with our federal partners to investigate and support the prosecution of individuals who commit these horrific crimes. Today’s sentence reinforces our unwavering dedication to bringing child predators to justice and ensuring victims are protected.”

The Michigan State Police and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Doaa K. Al-Howaishy prosecuted it.

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. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood 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, including resources for parents and children about staying safe online, please visit justice.gov/PSC.