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Source: United States Department of Justice

Monico Erich Gastelo, 44, of Fresno, California, was sentenced yesterday after being convicted of sexual exploitation of a child and receipt and distribution of child pornography. The Court sentenced Gastelo to 40 years in prison 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 required to register as a sex offender for the rest of his life 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 to enhance his chances of connecting with minors. Gastelo used the account and others to converse with minors — some of whom disclosed that they were 12 years-old — and repeatedly demanded sexually explicit content from them.

Between Jan. 1, 2020, and March 23, 2020, Gastelo began communicating on messaging platforms with other individuals sexually attracted to children. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms, describing the type of videos and images he preferred, including requesting videos of sex acts performed by toddlers. Forensic review of Gastelo’s phones revealed that he had more than 1,500 images and videos of CSAM saved on his device.

Gastelo’s conduct escalated in May 2020. A minor victim disclosed to law enforcement that he had been sexually exploited online and that an individual later identified as Gastelo had added him as a friend on social media. Gastelo had sent over a dozen images of his genitalia to this minor victim and insisted the minor reciprocate.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and U.S. Attorney Eric Grant for the Eastern District of California made the announcement.

The Central California Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations investigated the case.

Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa for the Eastern District of California 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

Four California residents were sentenced to prison for their roles in defrauding Medicare of nearly $16 million through sham hospice companies and laundering the fraudulent proceeds.

Yesterday, Juan Carlos Esparza, 33, of Valley Village, was sentenced to 57 months in prison and ordered to pay restitution of $1,825,012, and Susanna Harutyunyan, 39, of Winnetka, was sentenced to 15 months in prison and ordered to pay restitution of $2,822,963.

In October 2025, Karpis Srapyan, 35, of Winnetka, was sentenced to 57 months in prison and ordered to pay restitution of $3,203,574.

In September 2025, Mihran Panosyan, 47, of Winnetka, was sentenced to 57 months in prison and ordered to pay restitution of $4,680,146.

Additionally, in May 2025, Petros Fichidzhyan, 44, of Granada Hills, was sentenced to 12 years in prison and ordered to pay restitution of $17,129,060.   

According to court documents, Esparza schemed with others, including co-defendants Fichidzhyan and Srapyan, to bill Medicare for hospice services that were medically unnecessary and never provided. From July 2019 until January 2023, Esparza, Fichidzhyan, and Srapyan operated four sham hospices, one of which, House of Angels Hospice, was owned by Esparza. Fichidzhyan, Esparza and Srapyan concealed the scheme by using foreign nationals’ names and personally identifiable information to act as straw owners for the hospices and to open bank accounts, submit information to Medicare and sign property leases. They also controlled and used cell phones in the names of the foreign nationals in furtherance of the scheme. In total, Medicare paid the sham hospices nearly $16 million.

Fichidzhyan, Esparza, and Srapyan worked with others, including co-defendants Harutyunyan and Panosyan, to launder the fraudulent proceeds. As part of the money laundering scheme, the defendants maintained fraudulent identification documents and other documents associated with the sham hospices, as well as bank documents, checkbooks and credit and debit cards in the names of purported foreign owners. After defrauding Medicare, the defendants moved the funds between various assets and accounts, including bank accounts in the names of shell companies, to conceal the scheme.

In July 2025, Esparza pleaded guilty to health care fraud and transactional money laundering, Harutyunyan pleaded guilty to transactional money laundering, and Srapyan pleaded guilty to conspiracy to commit health care fraud and transactional money laundering. In June 2025, Panosyan pleaded guilty to concealment money laundering. In February 2025, Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and concealment money laundering. At sentencing in May 2025, the court preliminarily ordered the forfeiture of two homes bought with fraud proceeds. The government has also seized $2,920,383 from bank accounts associated with the fraud.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

FBI and HHS-OIG are investigating the case.

Trial Attorneys Sarah E. Edwards, Allison L. McGuire, and Michael Bacharach of the Criminal Division’s Fraud Section are prosecuting the case, and Assistant U.S. Attorney Tara B. Vavere for the Central District of California is handling asset forfeiture.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: United States Department of Justice

An Idaho executive pleaded guilty to insider trading on the basis of material nonpublic information about an impending corporate acquisition.

According to court documents, Michael Smith, 48, of Eagle, Idaho, served as the President and Chief Operating Officer of Company-1 since in or around June 2022. Company-1 was based in Idaho, and its shares were publicly traded on NASDAQ.

By at least June 2024, by virtue of his position at Company-1, Smith received material nonpublic information (MNPI) regarding the impending acquisition of Company-1 by another company. Smith was subject to Company-1’s Insider Trading Policy that, among other things, prohibited employees from trading in Company-1’s stock if an employee possessed MNPI.

On July 26, 2024, Smith bought Company-1 stock using a brokerage account belonging to Individual-A. Smith and Individual-A had a close personal relationship. Smith executed these trades on the basis of MNPI about the impending acquisition of Company-1 despite knowing that he was prohibited from trading Company-1 stock.

On Aug. 7, 2024, news of Company-1’s acquisition became public, and Company-1’s stock increased by nearly 50%. The next day, Smith sold the Company-1 stock he had purchased for Individual-A for a profit of approximately $145,754.69. Smith executed the trades to financially benefit Individual-A.

Smith pleaded guilty to one count of securities fraud. He faces a maximum penalty of 20 years in prison. 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; U.S. Attorney Bart M. Davis for the District of Idaho; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group (USPIS-CI) made the announcement.

USPIS-CI is investigating the case.

Trial Attorneys Kyle Crawford and John Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Mazorol for the District of Idaho are prosecuting the case.

Source: United States Department of Justice Criminal Division

Memphis, TN – A Memphis nephrologist providing end-stage renal disease, or ESRD, treatments to Medicare beneficiaries will pay $375,296.90 to resolve False Claims Act allegations brought against him.  D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the agreement today.

Dr. Mark Shermer was alleged to have falsely billed Medicare for ESRD treatment visits to dialysis patients that he never actually performed.  The civil settlement resolved these allegations brought under the qui tam or whistleblower provisions of the federal False Claims Act.  Under the qui tam provision, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The case is captioned United States ex rel. Davis, 2:21-cv-2754-JTF-cgc (W.D. Tenn.).  

“Falsely billing Medicare for dialysis procedures that never occurred contributes to the soaring costs of health care and ultimately harms actual patients,” said U.S. Attorney D. Michael Dunavant. “Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs.”

“Providers who submit false claims to Medicare compromise the integrity of federal health care programs and the services they are meant to provide,” said Special Agent in Charge Kelly Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to safeguard taxpayer dollars and uphold the trust placed in these vital programs.”

The claims settled by this agreement are allegations only, and there has been no determination of liability.

The case was investigated by the Department of Health and Human Services Office of Inspector General and the Tennessee Bureau of Investigation.  

Assistant United States Attorney Sarah Pazar Williams represented the United States in this case.

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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

PIERRE – United States Attorney Ron Parsons announced today that U.S. District Judge Eric C. Schulte has sentenced a St. Francis, South Dakota woman convicted of Assaulting, Resisting, and Impeding a Federal Officer.  The sentencing took place on October 20, 2025.

Jordan Fast Horse, age 24, was sentenced to 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.

Fast Horse was indicted by a federal grand jury in December 2024.  She pleaded guilty on July 23, 2025.

The conviction stems from an incident that occurred in August of 2024, in the Rosebud Sioux Indian Reservation.  On the day in question, Fast Horse was arrested by Rosebud Sioux Tribe Law Enforcement Services Officers and charged with child abuse and transported by an officer to the Rosebud Sioux Tribe Adult Correctional Facility.  While she was completing intake processing at the Adult Correctional Facility, Fast Horse kicked the leg of one corrections officer and slapped a second corrections officer across the face.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson prosecuted the case.

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

Source: United States Department of Justice Criminal Division

 

MIAMI – United States Attorney Jason A. Reding Quiñones today announced the swearing-in of Maria Guzman as an Assistant United States Attorney for the Southern District of Florida. Guzman joins the Narcotics Section, bringing more than three decades of trial experience in state and federal courts.

Guzman is a graduate of Columbia University and the University of Miami School of Law. She began her career as an Assistant District Attorney in Houston, Texas, where she tried more than fifty misdemeanor and felony jury trials. After several years in private practice handling criminal and civil matters, she returned to public service in Miami as an Assistant State Attorney for Miami-Dade County. There, she prosecuted violent crime, robbery, and homicide cases, rising to Assistant Chief of the Robbery/Career Criminal Unit and Felony Division Chief. She tried approximately thirty homicide cases during her tenure.

Following her time in Miami, Guzman served for seventeen years as an Assistant Federal Public Defender in the Middle District of Florida. She was lead trial counsel on hundreds of federal cases, including matters involving firearms, narcotics, RICO conspiracies, child exploitation, fraud, immigration, and international money laundering. Her years as an AFPD shaped her reputation as a skilled litigator, a demanding courtroom advocate, and a trusted trainer for young attorneys.

Most recently, Guzman served as an Assistant United States Attorney in the Middle District of Florida, prosecuting violent crime, narcotics trafficking, health care fraud, immigration offenses, overdose death cases, and OCDETF investigations. She served as the office’s Violent Crimes Coordinator, leading significant investigations and securing notable jury verdicts in complex robbery and firearms cases.

In announcing her appointment, U.S. Attorney Reding Quiñones stated: “Maria is the kind of prosecutor who makes a district stronger the moment she walks through the door. She has tried more than 300 cases, served our justice system from every angle, and brings a depth of experience that is rare in any district. Our Narcotics Section gains a steady hand, a battle-tested trial lawyer, and a public servant committed to protecting our community.”

Guzman is fluent in English and Spanish and is admitted to practice in Florida and Texas.

She will begin her duties in the Narcotics Section immediately.

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Source: United States Department of Justice Criminal Division

RAPID CITY – United States Attorney Ron Parsons announced today that U.S. District Judge Camela C. Theeler has sentenced a man from Rapid City, South Dakota, convicted of Attempted Enticement of a Minor Using the Internet and Receipt of Child Pornography. The sentencing took place on September 29, 2025.

Aaron Williams, Jr., 24, was sentenced to 19 years and seven months in federal prison, to be followed by 10 years of supervised release. Williams was ordered to pay $570 in restitution and $200 in special assessments to the Federal Crime Victims Fund. Williams was also ordered to forfeit his cell phone.

A federal grand jury indicted Williams for the charges in August 2024. He pleaded guilty on July 21, 2025.

During the 2024 Sturgis Bike Rally, the South Dakota Internet Crimes Against Children Task Force conducted an undercover anti-child exploitation operation. During the operation, Williams used his Reddit account and cell phone to send messages to a person he believed to be a 14-year-old girl, who was actually the undercover persona of an investigator with the Pennington County Sheriff’s Office. When Williams attempted to meet up with the girl to engage in sex acts, he was arrested. After Williams’ arrest, he called his father from jail, reported he had been arrested for child exploitation crimes, and requested that his dad get his “stuff” from Williams’ apartment. Shortly thereafter, Williams’ sister entered his apartment and removed several electronic devices. The devices were ultimately recovered by law enforcement. Analysis of Williams’ cell phone revealed hundreds of images of child pornography depicting infants, bestiality, and rape and bondage of children.

Williams was convicted in 2023 for Possession of Child Pornography, Viewing Child Pornography, and Distribution of Child Pornography, crimes committed during his military service in the United States Air Force. As a result of the previous conviction, he is required to register as a sex offender. On August 1, 2024, just days before his arrest, Williams had completed a term of federal supervised release.

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.

This case was investigated by the South Dakota Internet Crimes Against Children Task Force, Pennington County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney Heather Knox prosecuted the case.

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

Source: United States Department of Justice Criminal Division

RAPID CITY – United States Attorney Ron Parsons announced today that U.S. District Judge Camela C. Theeler has sentenced a man from Rapid City, South Dakota, convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on October 1, 2025.

Tyler Schmidt, 31, was sentenced to 27 years in federal prison, followed by five years of supervised release, a $1,000 fine, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

Schmidt was indicted by a federal grand jury in February 2025 for Conspiracy to Distribute a Controlled Substance. He pleaded guilty on July 11, 2025.

Between October 2021 and November 2024, Schmidt and others were involved in a conspiracy to distribute methamphetamine in the Rapid City, SD, area. Schmidt routinely traveled to other states to purchase multiple pounds of methamphetamine at a time. Schmidt would then transport the methamphetamine into South Dakota and work with others to sell the methamphetamine in Rapid City. Law enforcement seized over eight pounds of methamphetamine during the investigation.

This case was investigated by the Unified Narcotics Enforcement Team (UNET). UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, the Rapid City Police Department, the South Dakota Division of Criminal Investigation, the South Dakota Highway Patrol, and the South Dakota National Guard Counter Drug Unit. Assistant U.S. Attorney Edward C. Tarbay prosecuted the case.

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

Source: United States Department of Justice Criminal Division

HUNTINGTON, W.Va. – Douglas Lee Brown, also known as “Wiggles,” 56, of Columbus, Ohio, was sentenced on November 17, 2025, to one year and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.

According to court documents and statements made in court, on April 18, 2024, law enforcement officers arrested Brown on domestic battery and wanton endangerment warrants in Huntington and found he possessed a loaded Taurus model G2C 9mm pistol in his waistband. Officers determined the firearm was reported stolen.

Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Brown knew he was prohibited from possessing a firearm because of his prior felony conviction for burglary in Franklin County, Ohio, Common Pleas Court on November 15, 2012.

Brown has a long criminal history and was on a term of supervision as a result of the burglary conviction at the time of the current offense.

United States Attorney Moore Capito made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Police Department, and the Huntington Violent Crime and Drug Task Force.

United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney prosecuted the case.

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.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-168.

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Source: United States Department of Justice Criminal Division

PIERRE – United States Attorney Ron Parsons announced today that U.S. District Judge Eric C. Schulte has sentenced a man from Eagle Butte, South Dakota, convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on September 30, 2025.

Jody Jeremy Dupris, a/k/a Jeremy Jody Dupris, age 45, was sentenced to six years and four 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.

Dupris was indicted by a federal grand jury in September 2024. He pleaded guilty on June 26, 2025.

The conviction stems from an incident that occurred in the early morning hours of May 2024 in Eagle Butte, SD, within the Cheyenne River Sioux Indian Reservation. Dupris went to the victim’s residence and demanded to be let in. After the victim allowed him into the residence, Dupris stabbed the victim in his right shoulder with a box-cutter/utility knife, causing a deep laceration and bleeding. The victim was able to get away and seek medical care after Dupris passed out. When law enforcement officers entered the victim’s residence, they found Dupris lying on the floor with the weapon nearby.

This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

This case was investigated by the FBI and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case.

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