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Source: United States Department of Justice Criminal Division

This week, the Justice Department’s National Fraud Enforcement Division continued to advance its mission to fight fraud and protect taxpayers.   

Assistant Attorney General Colin M. McDonald, along with HHS Secretary Robert F. Kennedy, Jr., Centers for Medicare & Medicaid Services Administrator Mehmet Oz, U.S. Attorney Daniel Rosen, and FBI Co-Deputy Director Christopher Raia, announced unprecedented charges against 15 defendants for Medicaid fraud schemes.  The defendants allegedly participated in various schemes to defraud federal benefit programs totaling over $90 million in intended loss.  The charges included the two largest Medicaid fraud cases ever charged in Minnesota and first-of-their-kind charges for certain Medicaid programs.

While in Minnesota, Assistant Attorney General Colin M. McDonald also announced the expansion of the Health Care Fraud Midwest Strike Force, bringing additional law enforcement resources to prosecute fraud in Minnesota, and the hiring of 15 additional prosecutors dedicated to combating Medicaid fraud nationwide.

 “This is just the beginning,” said Acting Assistant Attorney General Colin M. McDonald at the announcement.  “With the support of President Trump, Vice President Vance, Acting Attorney General Blanche, Chairman Ferguson and the White House Anti-Fraud Task Force, Secretary Kennedy, Dr. Oz and his team, and the entire federal fraud-fighting apparatus, the Department of Justice will continue expanding our reach across the country to pursue all fraud, no matter how large, no matter how small, no matter how hard.”

Other top highlights from the fight against fraud this week include the following enforcement actions.

Health Care Fraud

In Brooklyn, a defendant was sentenced to 10 years in prison for his participation in a $2 billion international health care fraud conspiracy.

Benefits Program Fraud

In Idaho, a jury convicted a man whose true identity remains unknown for theft of government funds and other crimes for using the identity of a long-deceased man to receive Social Security and other benefits.  For more than two decades, the Defendant used the deceased individual’s name and identity to fraudulently obtain numerous government benefits totaling approximately $283,000.

A school district board member pleaded guilty in federal court for her role in a wire fraud scheme that defrauded the school district out of $385,000.

The United States obtained a court order authorizing the recovery of nearly $30 million in restitution related to a $63 million scheme to defraud the Paycheck Protection Program. 

A Michigan jury convicted a nurse and home health care agency nurse for operating a $1.6 million scheme to defraud Medicare.  From 2018 through 2021, the defendant bribed a nurse at a Detroit hospital to give the defendant their confidential records, which were used to unlawfully bill Medicare.

Government Fraud

A man pleaded guilty to a scheme to fraudulently obtain more than $229.6 million in loans and properties.  Ultimately, he defaulted on the loans, or the loan balances substantially exceeded the value of the underlying collateral, resulting in approximately $94.4 million in losses to lenders, including the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac.

The United States Attorney’s Office for the District of Vermont announced that it collected over $4.4 million in civil and criminal actions in Fiscal Year 2025. Among others, the office collected over $320,000 of restitution and fines from a defendant convicted of federal income tax evasion.

In West Virginia, a man pleaded guilty to theft of public money for fraudulently cashing U.S. treasury checks at businesses in West Virginia and Maryland totaling over $14,000.  The defendant faces up to 10 years in prison and owes approximately $14,000 in restitution.

A man pleaded guilty to theft of government funds and other charges for depositing stolen and altered U.S. Treasury checks into bank accounts he opened in the name of a shell company.  In total, the defendant stole or laundered more than $1.2 million in government funds.

Tax Fraud

A defendant was sentenced to 65 months in prison for his participation in an extensive COVID-19 employment tax credit fraud scheme. Members of the conspiracy filed numerous false tax returns, claiming over $3.4 million in tax refunds.  The defendant and his co-conspirators were ordered to pay over $1.8 million in restitution.

Trade Fraud

An engineer for an Illinois company was sentenced to federal prison for trade fraud, counterfeiting, and other fraud schemes.

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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.

Source: United States Department of Justice Criminal Division

Alexi Zamora-Chona, 30, an illegal alien from Mexico, was sentenced on May 19, 2026, in federal court in Omaha, Nebraska, for possession with intent to distribute methamphetamine and possession of a short-barreled rifle in furtherance of drug trafficking.

Source: United States Department of Justice Criminal Division

NEW ORLEANS, LOUISIANA – JOVANTE MATTHEWS, (“MATTHEWS “), age 30, of New Orleans, was sentenced by United States District Judge Sarah S. Vance on May 13, 2026 to serve a total of 350 months in federal prison, after being found guilty by a jury of Carjacking, Using a Firearm in Furtherance of a Crime of Violence, Being an Armed Career Criminal, Felon in Possession of a Firearm, and being an Armed Career Criminal, due to his three previous convictions for crimes of violence, a fact that enhanced his sentence further.

Source: United States Department of Justice Criminal Division

Greenbelt, Maryland – A Maryland man received a federal prison term, today, for masterminding a supplemental nutrition assistance program (SNAP) benefits fraud scam and other related crimes. U.S. District Judge Theodore D. Chuang sentenced Brendyn Andrew, 34, of Gaithersburg, to 54 months in federal prison for SNAP benefits fraud, possessing unauthorized access devices, aggravated identity theft, passport fraud, and witness tampering, in connection with the scheme. 

Source: United States Department of Justice

Regions Bank, headquartered in Birmingham, Alabama, has agreed to pay the United States $4,919,631 to resolve allegations that Regions received payments it should not have received from the United States in connection with Regions approving forgiveness of a customer’s Paycheck Protection Program (PPP) loan, despite the fact that the PPP loan was not eligible for forgiveness. 

“The PPP was intended to provide critical assistance to eligible businesses during the economic uncertainty caused by the Covid-19 pandemic,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The department is committed to ensuring that PPP lenders are held accountable for failing to comply with applicable program requirements, including approving forgiveness of PPP loans that were not eligible under program rules.”

Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The U.S. Small Business Administration (SBA) administered the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Upon forgiveness of a PPP loan, the SBA paid the lender the forgiven principal loan balance and any accrued interest. SBA also paid to lenders who originated PPP loans a fee calculated as a percentage of the loan amount. 

The United States alleged that, on or about Aug. 3, 2021, Regions Bank approved forgiveness of a PPP loan obtained by an individual through Regions Bank, but the PPP loan was not eligible for forgiveness. The United States further alleged that Regions Bank was unjustly enriched by the payment the SBA made to Regions Bank upon forgiveness of the PPP loan. 

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of Missouri, with assistance from the Small Business Administration’s Offices of the General Counsel and the Inspector General as well as from the Federal Deposit Insurance Corporation’s Office of Inspector General. 

Trial Attorney Gavin Thole of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U. S. Attorney Matthew Sparks of the U.S. Attorney’s Office for the Western District of Missouri are handling the matter. 

The claim resolved by the settlement reflects allegations only. There has been no determination of liability. 

Source: United States Department of Justice Criminal Division

U.S. Attorney Eric Grant and Stanislaus County District Attorney Jeff Laugero announced today the appointment of Deputy District Attorney Cindy De Silva to be a Special Assistant U.S. Attorney to prosecute cases in federal court relating to transnational drug organizations with ties to Stanislaus County.

Source: United States Department of Justice Criminal Division

The defendant was arrested on May 11, 2026, for possession of child pornography. A tip from the National Center for Missing and Exploited Children led to his arrest. In making his detention decision, U.S. Magistrate Judge Gary L. Favro stated that Shimell is a danger to the community. 

Source: United States Department of Justice

A federal grand jury returned a 28‑count indictment Wednesday charging 12 alleged members of a racketeering enterprise accused of orchestrating widespread criminal activity in Indianapolis, including murder, kidnapping, assault, arson, drug trafficking, and illegal firearms crimes.The first of these defendants made their initial appearance today in the Southern District of Indiana.

“The superseding indictment in this case alleges, among other things, that these defendants shot and killed a man for slamming the door of a drug house, shot another man in the leg for a $40 drug debt, pistol-whipped at least two other people, and dealt all manner of drugs, including heroin, fentanyl, crack cocaine, and methamphetamine,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “This type of alleged drug dealing and violence ruins communities, people, and their families. Drugs and gang violence are a scourge. These groups will be dismantled and prosecuted.” 

“The allegations in this indictment describe a criminal organization that maintained a grip on Indianapolis neighborhoods for years through fear, violence, and devastation,” said U.S. Attorney Tom Wheeler for the Southern District of Indiana. “We will not allow groups that traffic deadly drugs, terrorize residents, and retaliate against witnesses to operate with impunity. We are grateful for the outstanding work of our federal, state, and local partners whose collaboration made today’s charges possible.”

“Violent criminal organizations that use fear, intimidation, and physical violence to further their operations have no place in our communities,” said Special Agent in Charge Timothy J. O’Malley of the FBI Indianapolis Field Office. “This case reflects the FBI’s commitment to working alongside our law enforcement partners to identify, investigate, and hold accountable those responsible for fueling violence and organized criminal activity. We will continue using every available resource to protect the public and pursue those who believe they can operate above the law.”

 “This gang used firearms, arson and violence to intimidate the public and protect their criminal activities,” said Director Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “Working with our law enforcement partners, we brought the full weight of our investigative capabilities to bear. We are proud of our work on this case, and we will continue to dismantle violent gangs like Crown Hill, hold their members accountable and bring them to justice for the American communities they threaten.”

According to court documents, between early 2019 and December 2024, the criminal organization known as the “Crown Hill Enterprise” allegedly operated to distribute an array of illegal drugs through no fewer than 11 different “trap houses” located throughout Indianapolis. The gang created fictitious business entities to conceal the nature, location, source, ownership, and control of its illicit drug proceeds.

The enterprise sought to preserve, expand, and protect its power, territory, reputation, and profits through intimidation and acts of violence, including murder, kidnapping, assault, arson, threats of violence, and the display of firearms. On multiple occasions, defendants Tre J. Dunn, 28, and Tanesha M. Turner, 40, both of Indianapolis, beat and shot individuals they believed had stolen drug proceeds, were associated with rival drug dealers, or owed a drug debt to the gang.

As alleged, on Nov. 3, 2024, Turner and an associate kidnapped an individual over a $40 debt related to fronted narcotics. The next day, Dunn and another gang member beat and fatally shot a victim after he allegedly disrespected Turner by slamming the door of a trap house.

As part of the workings of the gang, defendants and other gang members allegedly sought to obstruct law enforcement investigations by intimidating potential witnesses and retaliating against those they believed cooperated with police. On April 23, 2024, defendant Nahamani I. Sargent, 35 of Indianapolis, and other gang members fired gunshots and threw Molotov cocktails at a residence where they believed an individual had provided information to the Indianapolis Metropolitan Police Department that led to the execution of a state search warrant at one of the organization’s trap houses.

During multiple court-authorized searches, law enforcement seized 35 firearms and a machinegun conversion device, along with drugs and cash.

The FBI, ATF, and the Indianapolis Metropolitan Police Department are investigating this case. 

Trial Attorney Samuel Benjamin Tonkin of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and Assistant U.S. Attorneys Bradley Blackington and Kelsey Massa for the Southern District of Indiana are prosecuting the case. 

An indictment or criminal complaint are merely allegations, and 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

NEW ORLEANS, LOUISIANA – DARVALE WILLIAMS (“WILLIAMS”), age 20, a resident of New Orleans, was sentenced on May 20, 2026, before United States District Judge Jane Triche Milazzo, for possessing a stolen firearm, announced U.S. Attorney David I. Courcelle. WILLIAMS was sentenced to 30 months in federal prison, three years of supervised release and a mandatory $100.00 special assessment fee.

Source: United States Department of Justice Criminal Division

CHARLOTTESVILLE, Va. – An illegal alien from Mexico, living locally in Keswick, Virginia, pled guilty this week to a federal firearms charge for illegally possessing a gun while being in the United States unlawfully. Javier Bernal-Lopez, 38, pled guilty this week to illegal possession of a firearm while being illegally or unlawfully in the United States.