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Source: United States Department of Justice Criminal Division

The Justice Department announced today that it has filed a lawsuit against Thomas Ray Kelso, the former owner and manager of rental properties formerly known as Briarwood Apartments in Searcy, Arkansas, for engaging in sexual harassment and retaliation in violation of the Fair Housing Act. The lawsuit also names as a defendant Avatar Investments LLC, which owned the rental properties during Kelso’s management and sexual harassment of female tenants.

The lawsuit, filed in the U.S. District Court for the Eastern District of Arkansas, alleges that Kelso sexually harassed female tenants beginning in 2001, until his arrest, in 2023, and conviction for federal sex trafficking charges in 2025. According to the complaint, Kelso made repeated and unwelcome sexual comments to female tenants, touched female tenants’ bodies without their permission, requested sexual contact, offered reduced or free rent in exchange for sexual contact and took retaliatory actions against female tenants who refused his sexual advances, including threatening to cut electricity or denying laundry access.

“No one should have to endure sexual harassment to keep a roof over his or her head,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit reinforces the Justice Department’s commitment to holding landlords and housing providers accountable for illegally harassing and retaliating against tenants.”

“This defendant intentionally lured and threatened vulnerable victims, forcing them to perform sexual acts in exchange for some of life’s essentials — shelter and electricity. He was rightfully sentenced to serve 20 years in federal prison,” said U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas. “Just as Kelso continues to be held accountable for his reprehensible acts, the housing provider, Avatar Investments, LLC, should also be held accountable for its total lack of oversight of its property.”

The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest, and a court order barring future discrimination.

If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 51 lawsuits alleging sexual harassment in housing and recovered nearly $16.2 million for victims of such harassment.

Source: United States Department of Justice Criminal Division

CHARLESTON, S.C. — A federal grand jury returned a 10-count indictment against Marvin Rashad Pendarvis, 36, of Charleston, for wire fraud, aggravated identity theft, and money laundering.

The indictment alleges that Pendarvis, who was a personal injury attorney licensed by the State of South Carolina and member of the South Carolina House of Representatives, pursued claims, filed lawsuits, and negotiated settlements on behalf of his clients and, in some instances, would forge client signatures and not pay clients any portion of the settlement funds. Through the scheme, Pendarvis received at least $532,000 in settlement funds to which he did not pay his clients any portion of the funds.

Pendarvis faces a maximum penalty of 20 years for the wire fraud and money laundering counts. Further, for each count of aggravated identity theft, Pendarvis faces a mandatory two-year term of imprisonment.

Pendarvis was arraigned by United States Magistrate Judge Molly Cherry on Nov. 18 and released on a $50,000 personal recognizance bond. 

This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Amy Bower and Whit Sowards are prosecuting the case.

All charges in the indictment are merely accusations and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Source: United States Department of Justice Criminal Division

Moultrie Convicted Felon Illegally Possessed Four Firearms in Armed Drug Trafficking Investigation; Pelham Repeat Offender Distributed Meth in Undercover Operation

Source: United States Department of Justice Criminal Division

LOS ANGELES – A San Gabriel Valley woman was sentenced today to 121 months in federal prison for orchestrating a large-scale international money laundering conspiracy that funneled more than $11.6 million in fraud proceeds from hundreds of victims – many of them elderly – who were conned by criminals pretending to be law enforcement, government officials, or computer support representatives.    

Cynthia Song, 43, a.k.a. “Iris Song” and “Xin Wang,” of Arcadia, was sentenced by United States District Judge Stanley Blumenfeld Jr., who also ordered her to pay $10,069,518 in restitution.

Song pleaded guilty on June 10 to one count of conspiracy to commit money laundering. She has been in federal custody since October 2024.

From December 2022 to October 2024, Song conspired to launder millions of dollars in proceeds derived from various fraudulent schemes. Victims were conned via impersonation and technical support scams, in which fraudsters – often operating overseas – posed as government officials, law enforcement, or computer support representatives. The perpetrators deceived victims, typically elderly individuals, into sending large payments – sometimes their entire life savings – to bank accounts in the United States controlled by Song and her co-conspirators.

Song first joined the scheme by personally money laundering fraud proceeds in her accounts. For example, in December 2022, multiple victims were induced to wire at least $170,850 into an account controlled by Song under the business name SW Prosperity Real Estate Development LLC. Within days, nearly all the funds were withdrawn and transferred abroad.

Soon afterward, Song became a manager of money launderers and recruited at least 15 money launderers into the global scheme. Song and her network of recruited money launderers then opened dozens of business bank accounts to receive and transfer fraudulent funds. Once the victims’ funds were received, Song directed her associates to withdraw or transfer the money, taking a 5% to 10% cut before sending the remaining proceeds to fraud organizers overseas, primarily in China and Hong Kong.

Throughout the scheme, Song directed the recruited money launderers on how to deceive banks that questioned the suspicious transfers, and she provided them with cover stories for the transfers, victims’ driver’s licenses, and other information in order to deceive the banks into believing the transfers were legitimate and therefore to not freeze the accounts or funds.  Song and her co-conspirators continued to launder money through various bank accounts until the banks froze the accounts for fraud, at which point, Song and her co-conspirators would switch to different bank accounts and co-conspirators. 

Song admitted in her plea agreement that she knew the funds were criminal proceeds and she warned her recruited co-conspirators that the money they handled was not “clean.” 

Song and her co-conspirators laundered at least $11,692,931 in fraud proceeds from approximately 180 victims across the United States. Of that amount, approximately $2,736,240 was frozen or recovered by financial institutions.

“The harm these crimes caused the victims cannot be understated,” prosecutors argued in a sentencing memorandum. “Some lost their entire life savings, others continue to experience shame, regret, and depression. Many dreamed to enjoy their golden years of retirement, but are now confronted with the harsh realities of lost savings and shattered dreams. Many have had to materially change their standard of living and most will never financially recover from these life-changing financial losses given their age.”

IRS Criminal Investigation and Homeland Security Investigations investigated this matter.

Assistant United States Attorney Andrew M. Roach of the General Crimes Section prosecuted this case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish, and other languages are available.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. 

Source: United States Department of Justice Criminal Division

Editor’s Note: This matter occurred on date indicated but not published at that time due to the government shutdown. Press release posted and made available following the return to normal operations.

Source: United States Department of Justice Criminal Division

Monico Erich Gastelo, 44, of Fresno, was sentenced Monday 40 years in prison for sexual exploitation of a child and receipt and distribution of child pornography, U.S. Attorney Eric Grant announced.

The sentence will be followed by 15 years of supervised release, during which time Gastelo’s access to children, computers, and the internet will be restricted. He was also ordered to pay $40,000 in monetary penalties, and he will be required to register as a sex offender upon his release from custody.

According to court documents, in January 2019, Gastelo created a social media account in which he pretended to be an 18-year-old boy. Gastelo used the account to converse with younger individuals and request sexually explicit content from them.

Between January and March 2020, Gastelo began communicating on Wickr, Snapchat, and Telegram with other individuals sexually attracted to children. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms. Forensic review of Gastelo’s phones revealed that he had more than 1,500 images and videos of suspected CSAM.

Gastelo’s conduct escalated in May 2020. A minor victim told law enforcement that he had been sexually exploited online and that an individual later identified as Gastelo had added him as a friend on Snapchat. Gastelo sent over a dozen images of his penis to this minor victim and enticed the victim to send back CSAM.

This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa and the Justice Department’s Child Exploitation and Obscenity Section Trial Attorney McKenzie Hightower prosecuted the case.

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, please visit www.justice.gov/psc.

Source: United States Department of Justice Criminal Division

SIOUX FALLS – United States Attorney Ron Parsons announced today that Chief Judge Roberto A. Lange has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on October 20, 2025.

Jacob Henry Leroy, 22, was sentenced to two years and nine months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Henry was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in December 2024. He pleaded guilty on July 21, 2025.

On November 14, 2024, law enforcement arrested Leroy and found him in possession of a .38 Special Caliber, double-action revolver, inside his pant leg. Officers also found methamphetamine in Leroy’s pocket and sock. Leroy is prohibited from possessing the firearm because he has a prior felony conviction and because he was, at the time, a drug user.

This case was investigated by the Sioux Falls Police Department and Homeland Security Investigations. Assistant U.S. Attorney Connie Larson prosecuted the case.

Leroy was immediately remanded to the custody of the U.S. Marshals Service.

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 Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). Through PSN, the District of South Dakota seeks to bring together all levels of law enforcement and the communities they serve to reduce gun violence and make our neighborhoods safer for everyone.

Source: United States Department of Justice Criminal Division

PITTSBURGH, Pa. – A resident of Rossiter, Pennsylvania, has been sentenced in federal court to 97 months of incarceration, to be followed by three years of supervised release, on his conviction of possession of a destructive device, First Assistant United States Attorney Troy Rivetti announced today.

Senior United States District Judge Nora Barry Fischer imposed the sentence on Roam L. Beer, 51.

Beer was convicted of the offense at the conclusion of a jury trial on August 7, 2025. The evidence presented during the day-and-a-half trial established that, on January 5, 2024, Beer threw an ignited homemade explosive device, which had been weaponized with steel shot, at the side of the residence of his estranged wife, who was in the room immediately inside the wall of the house where Beer threw the device, but was uninjured in the incident.

Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.

Prior to imposing sentence, Judge Fischer spoke of Beer’s lengthy criminal history, during which Beer “moved from threats to making bombs,” and described Beer’s offense in this case as “a very dangerous act warranting a serious penalty.”

First Assistant United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and New Kensington Police Department for the investigation leading to the successful prosecution of Beer.

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.

Source: United States Department of Justice Criminal Division

WACO, Texas – An Austin woman was sentenced in a federal court in Waco today to 37 months in prison for embezzling federal funds for personal use while serving as the executive director of the Killeen Housing Authority (KHA).

According to court documents, Deadra Johnson, 53, fraudulently obtained KHA funds and used them to pay for her personal expenses, including rent, utilities, auto maintenance, internet service, airline tickets, and furniture. A portion of the funds also went towards the purchase of a new vehicle.  In an attempt to conceal her actions, Johnson developed multiple kickback schemes.

Johnson was arrested on Jan. 17, 2024, and charged with theft of government property. She pleaded guilty on Feb. 11, 2025. In addition to three-years imprisonment, U.S. District Judge David Counts ordered Johnson to pay $297,473.30 in restitution.

“In stealing hundreds of thousands of dollars while overseeing the Killeen Housing Authority, Deadra Johnson selfishly betrayed not just the federal government and American taxpayers, but also the hundreds of families who depended on KHA services,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “My office is proud to partner with federal, state, and local authorities to protect the interests of this Nation, to protect our local communities, and to ensure that fraudsters like this defendant are brought to justice.”

“Deadra Johnson exploited her position and violated the public trust by stealing federal funds that were intended to help provide housing for the most vulnerable people in our community. She orchestrated a plot to use that money to pay for a life of luxury for herself and her family members, which included purchasing multiple vehicles, first-class plane tickets, and paying for other personal expenses,” said Special Agent in Charge Robert Lawler with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “HUD OIG will continue to work with its law enforcement partners to diligently pursue and hold accountable individuals who take advantage of their positions of trust to defraud HUD programs.”

“Our responsibility is to protect the integrity of federal programs and uphold the trust the American people place in us,” said Acting Special Agent in Charge Alex Doran for FBI San Antonio. “Deadra Johnson’s actions diverted critical government funds away from individuals who depend on them during their most challenging moments. We remain committed to working alongside our law enforcement partners to safeguard public resources and ensure they reach those they were intended to help.”

HUD OIG and the FBI investigated the case with assistance from the Texas Department of Public Safety.

Assistant U.S. Attorney Greg Gloff prosecuted the case.

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Source: United States Department of Justice Criminal Division

SIOUX FALLS – United States Attorney Ronald A. Parsons, Jr. announced today that United States District Chief Judge Roberto A. Lange has sentenced a former middle school teacher from Sioux Falls, South Dakota convicted of four counts of Production of Child Pornography, three counts of Attempted Production of Child Pornography, and one count of Transfer of Obscene Materials to a Minor. The sentencing took place on October 14, 2025.

Justin Preuschl, age 29, was sentenced to 24 years and 4 months in federal prison, 7 years of supervised release, restitution in the amount of $1,000, a special assessment of $1,000 under the Amy, Vicky, and Andy Child Pornography Act of 2018, and a special assessment to the Federal Crime Victims Fund in the amount of $800. Upon release from federal prison, Preuschl must register as a sex offender.

Preuschl was indicted by a federal grand jury in June 2024. He pleaded guilty on July 15, 2025.

Between 2022 and 2024, Preuschl created multiple social media personas posing as a teenage boy. Using his personas on SnapChat and TikTok, Preuschl targeted and sexually groomed over 20 young teenage and preteen girls and convinced several of them to produce for him child sexual abuse materials. The victims included some of his own students, ages 13-15 years old, while he was a teacher at Whittier Middle School in Sioux Falls, South Dakota.

This case was investigated by the Sioux Falls Police Department, the Division of Criminal Investigations, and Homeland Security Investigations. Assistant U.S. Attorney Elizabeth A. Ebert-Webb prosecuted the case.

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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

Preuschl was immediately remanded to the custody of the U.S. Marshals Service.