Category: MIL-OSI

Source: United States Department of Justice Criminal Division

Matthew Dane Billingsley, 40, of Fresno, was sentenced today by U.S. District Judge Jennifer L. Thurston to seven years and six months in prison for wire fraud in a scheme that defrauded individual lenders and financial institutions out of more than $30 million, U.S. Attorney Eric Grant announced.

“The defendant defrauded victims out of millions of dollars. Over nearly five years, he repeatedly and deliberately committed crimes by altering documents, forging signatures, and otherwise lying,” said U.S. Attorney Grant. “This office, together with our law enforcement partners, will continue to aggressively pursue those who defraud victims and threaten our financial system through deceit.”

“Matthew Billingsley orchestrated a deliberate campaign of fraud, stealing more than $30 million through falsified documents,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI, in partnership with IRS Criminal Investigation, put an end to his pattern of manipulation and exploitation. We will relentlessly pursue those who victimize others through dishonesty and greed.”

“Today’s sentencing sends a clear message: those who engage in deception to defraud lenders and abuse the financial system will be held accountable,” said IRS Criminal Investigation (IRS‑CI) Oakland Field Office Special Agent in Charge Linda Nguyen. “By fabricating brokerage statements and misusing loan funds, Mr. Billingsley not only betrayed the trust of financial institutions and individual lenders but also undermined the integrity of our financial markets. IRS-CI uses fundamental accounting principles mixed with advanced technology to build investigations that extinguish such financial deceit.”

According to court documents, between June 2018 and February 2023, Billingsley made false representations about having a brokerage account with millions of dollars in assets to serve as collateral for loans. Billingsley gave fabricated brokerage account statements to obtain more than $30 million in loans from individual lenders and financial institutions. The brokerage account statements were false because the brokerage account did not exist. Billingsley also misrepresented to individual lenders and financial institutions the intended use of the loan funds and, instead, used the money to pay down previous loans and for his personal benefit.

To obtain one of the loans, Billingsley used a Fresno restaurant owner’s name and signature on a profit-sharing agreement that Billingsley created and forged. Billingsley presented the false and fraudulent profit-sharing agreement to a financial institution to obtain a loan.

This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.

Source: United States Department of Justice Criminal Division

Persico USA Agrees to Pay $1.46 Million to Resolve False Claims Act Allegations Relating to Paycheck Protection Program Loans

Wilmington, Delaware – First Assistant U.S. Attorney Julianne E. Murray announced today that Persico USA, Inc. (“Persico”) agreed to pay more than $1.4 million to resolve allegations that it improperly obtained a Paycheck Protection Program (“PPP”) loan from the U.S. Small Business Administration (“SBA”) for which it was not eligible.

PPP was an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act and administered by the SBA.  It was created to support small businesses and ensure that they could continue to pay employees and meet other business expenses during the COVID-19 pandemic. Whether an applicant qualified as a small business was determined, in part, by assessing the number of employees of the business, including any domestic and foreign affiliates.  In early 2021, Congress authorized a second tranche of loans, known as second draw loans, that were available to certain small businesses that had already obtained a first draw loan.

Persico is a subsidiary of a multinational entity that manufactures and sells equipment for the automotive, rotomoulding, marine, and medical industries.  The United States contends that Persico obtained a PPP loan that it was not eligible for because it exceeded the size requirements for a second draw PPP loan. Specifically, Persico was ineligible for the PPP loan because it, together with its foreign affiliates, had over 300 employees.

“PPP was designed keep small businesses afloat during the COVID-19 pandemic,” said First Assistant U.S. Attorney Murray.  “Multinational companies that obtained loans for which they did not qualify deprived small businesses of funding intended to keep American workers employed.  Our office will continue to investigate and aggressively pursue any instances of fraud or misconduct within the Paycheck Protection Program.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act.  Under those provisions, a private party—known as a relator—can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned United States ex rel. Verity Investigations, LLC v. Persico USA, Inc., 25-cv-260-CFC (D. Del.).  The relator will receive a share of the settlement.

This matter was handled by Assistant U.S. Attorney William E. LaRosa.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to 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: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only.  There has been no determination of liability.

Source: United States Department of Justice Criminal Division

Shawn Sawa, 49, formerly of Clovis, was sentenced today by U.S. District Judge Jennifer L. Thurston to 18 months in prison for his role in a fraud scheme that stole millions of dollars’ worth of canola, used to make livestock feed, from international food processors, U.S. Attorney Eric Grant announced.

According to court documents, from 2015 through 2017, Sawa and co-defendant Richard Best stole $4.8 million worth of canola from international food processors. They then sold the canola for a windfall.

Sawa and Best carried out the scheme through Best’s now defunct train-to-truck transloading company, Richard Best Transfer Inc. (RBT). A transloading company transfers commodities from one mode of transportation to another mode. The victim food processors sent hundreds of thousands of tons of their canola to RBT for delivery to their customers. Sawa was the Fresno area manager for one of the victim food processors from whom he and Best stole canola. Sawa initially received kickback payments from Best to try to increase the supply of canola that RBT received from that food processor before they began their scheme.

Sawa and Best sold the stolen canola through an acquaintance in Texas who used to work in the livestock-feed industry. The acquaintance sold the stolen canola to farms and dairies and distributed the proceeds according to Best’s instructions. This included wire transfers to Sawa, Best, and RBT’s bank accounts. The account that Sawa used was opened in his spouse’s name to try to conceal the scheme.

Throughout the scheme, Sawa and Best caused RBT to email fraudulent inventory reports to the victim food processors representing that RBT had certain amounts of their canola in-stock when, in fact, RBT had significantly lesser amounts. Sawa and Best used the proceeds from the scheme to purchase luxury homes and multiple vehicles, take trips, hire private karate teachers, and cover RBT’s operating expenses, among other expenses.

Shortly before the scheme was discovered, Best gave Sawa an old cellphone that had belonged to Best’s deceased mother. Best did so because he was afraid that the victim food processor for whom Sawa worked was onto their scheme and was monitoring communications on Sawa’s company issued devices. They then used the old cellphone to secretly communicate with each other in furtherance of the scheme.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Cody Chapple, Chan Hee Chu, and Joseph Barton are prosecuting the case.

Best pleaded guilty on Oct. 14, 2025, three weeks before his trial was supposed to start and is scheduled to be sentenced on March 2, 2026. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables.

Source: United States Department of Justice Criminal Division

DENVER – The United States Attorney’s Office for the District of Colorado announces that Flozell Beasley, 73, of Denver, was sentenced to 210 months in federal prison and three years of supervised release after being convicted by a jury of four counts of bank robbery and one count of robbery affecting interstate commerce.

According to the facts established at trial, Beasley robbed two banks, two credit unions, and a taco shop in Denver, between May and July 2023. In each robbery, the defendant dressed like a construction worker and threatened employees with a high-quality replica gun before taking their money and fleeing. On July 11, 2023, the defendant robbed the Vectra Bank at 1001 E 17th Street and left with a GPS tracker hidden inside the money he stole from the bank. He then boarded a nearby RTD bus and was arrested twelve minutes later sitting on the bus with the tracker, stolen money, replica gun, construction vest, and construction helmet in a bag at his feet.

“If you’re thinking of robbing a bank in Colorado, do yourself a favor and find something else to do,” said United States Attorney for the District of Colorado Peter McNeilly. “We will catch you; we will prosecute you; and you will spend a long time in federal prison.”

“This man is a serial bank robber and a lifelong criminal. He has proven that the only way to keep the community safe is to keep him behind bars,” said Marv Massey, Acting Special Agent in Charge of the Denver FBI Field Office. “The FBI Denver Rocky Mountain Safe Streets Task Force and our partners at the Denver Police Department and the Regional Transportation District will continue to work together to target the serial offenders creating fear and havoc in Denver.”

United States District Judge Regina M. Rodriguez presided over the sentencing.

The FBI Denver Field Office handled the investigation. Assistant United States Attorneys Brian Dunn and Garreth Winstead handled the prosecution.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Case Number: 23-cr-342-RMR

Source: United States Department of Justice Criminal Division

CHARLESTON, S.C. — Jaidan Latrell Alexander, 26, of Ladson, was sentenced to 10 years in federal prison after pleading guilty to possessing firearms in furtherance of drug trafficking crimes and possession of marijuana with intent to distribute.

Evidence presented in court showed that Alexander obtained multiple firearms through a straw purchasing scheme involving a family member, despite being prohibited from possessing firearms because of his prior criminal convictions. Investigators also recovered social media evidence showing that Alexander was actively involved in narcotics distribution, and he was arrested several times while armed.

According to court records, on April 13, 2023, Alexander exchanged gunfire outside his Ladson apartment during an attempted robbery. A later search of the apartment uncovered firearms, illegal drugs, and equipment used to package and distribute narcotics.

On Aug. 30, 2024, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Alexander at his residence and executed a search warrant. Inside, they found additional firearms, hundreds of rounds of ammunition, drug-distribution tools including scales, vacuum sealers, and packaging materials, and more than 2.5 pounds of marijuana.

United States District Judge Bruce H. Hendricks sentenced Alexander to 10 years imprisonment to be followed by five years of court ordered supervision. There is no parole in the federal system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Chris Lietzow is prosecuting the case.

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Source: United States Department of Justice Criminal Division

BEAUMONT, Texas – A Liberty County convicted felon has been charged with a firearms violation in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.

Jason Reeves, 51, was named in an indictment returned by a federal grand jury in the Eastern District of Texas charging him with possession of a firearm by a prohibited person.

The indictment alleges that on November 21, 2025, Reeves, a convicted felon, was found in the Eastern District of Texas in possession of a firearm.  As a convicted felon, Reeves is prohibited by federal law from owning or possessing firearms.

If convicted, Reeves faces up to 15 years in federal prison.

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.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

A federal indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice Criminal Division

Today, following Attorney General Pamela Bondi’s announcement that Alina Habba will serve as Senior Advisor to the Attorney General for United States Attorneys, Deputy Attorney General Todd Blanche announced the following personnel appointments and authorizations within the District of New Jersey:

• Philip Lamparello will serve as Senior Counsel and is authorized to supervise or conduct the work of the district’s Criminal Division and Special Prosecutions Division, including such work in the district’s branch offices;
• Jordan Fox will serve as Special Attorney and is authorized to supervise or conduct the work of the district’s Civil Division and Appellate Division, including such work in the district’s branch offices, along with any other matters arising within the district not specifically delegated herein; and
• Ari Fontecchio will serve as Executive Assistant United States Attorney and is authorized to supervise or conduct the work of the district’s Administrative Division, along with any other administrative matters arising within the district.

“The Department of Justice is committed to bringing in the best and brightest to carry out our mission,” said Deputy Attorney General Todd Blanche. “I have full confidence in each of these exceptional attorneys and look forward to our continued collaboration as we make New Jersey and America safe again.”

Source: United States Department of Justice Criminal Division

BEAUMONT, Texas – A Mexican national, illegally living in Dayton, has been charged with a firearms violation, announced Eastern District of Texas U.S. Attorney Jay R. Combs.

Vicente Gerardo-Cruz, 47, was named in an indictment returned by a federal grand jury in the Eastern District of Texas charging him with possession of a firearm by a prohibited person.

The indictment alleges that on November 5, 2025, Gerardo-Cruz, an illegal alien, was found in the Eastern District of Texas in possession of a firearm.  As an illegal alien, Gerardo-Cruz is prohibited by federal law from owning or possessing firearms in the United States.

If convicted, Gerardo-Cruz faces up to 15 years in federal prison.

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.

This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Reynaldo P. Morin.

A federal indictment is not evidence of guilt.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice Criminal Division

BOSTON – A Rockland, Mass. man was sentenced on Dec. 3, 2025 in federal court in Boston for being a convicted felon in possession of a firearm and ammunition.

Lamont Boswell, 40, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to 83 months in prison to be followed by three years of supervised release. In September 2025, Boswell pleaded guilty to one count of unlawfully possessing a firearm and ammunition while being a convicted felon as well as violating the terms of his supervised release.

On April 2, 2025, while conducting a wellness check on Boswell who appeared to be passed out in the driver’s seat of his parked car, law enforcement found a pistol inside the vehicle. The recovered firearm was a Smith and Wesson semi-automatic handgun, loaded with 13 9mm rounds of ammunition in the magazine and one 9mm round in the chamber.

At the time of the offense, Boswell was under federal supervision after being convicted in 2021 of being a felon in possession of a firearm and ammunition, for which he was sentenced to 57 months in prison and three years of supervised release. In that case, Boswell was also found to have illegally possessed a loaded firearms while driving his car.

United States Attorney Leah B. Foley and Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement. Special assistance was provided by Plymouth County District Attorney’s Office and the Scituate Police Department. Assistant U.S. Attorney Fred M. Wyshak III of the Organized Crime & Gang Unit prosecuted 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 and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.