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Source: United States Department of Justice Criminal Division

CAPE GIRARDEAU – Two Missouri men were sentenced to more than 12 years in prison on Friday for operating a long-running Ponzi scheme that cost at least 99 victims $5.7 million.

U.S. District Judge Stephen N. Limbaugh Jr. sentenced James “Jim” Johnson, 78, to 188 months in prison and Darrell Niswonger, 69, to 150 months. Judge Limbaugh also ordered Niswonger and Johnson to repay their victims.

Johnson and Niswonger promised clients of their storefront firm in Perryville, Missouri that their investments were safe and would be placed in municipal bonds earning a moderate, 5% return. But for nearly two decades Johnson and Niswonger instead spent the bulk of clients’ money on lavish lifestyles that included country club memberships, sponsored golf tournaments, hundreds of thousands of dollars in improvements to Johnson’s home, educational expenses for a Niswonger relative and yearly salaries of $195,000. They also used some of the money to make payments to victims to lull them into believing that their investments were secure.

The crime began in 2006, when Johnson & Niswonger Financial Resources LLC began experiencing cash flow problems. Johnson and Niswonger started offering clients what they referred to as tax-free and risk-free “municipal bonds,” knowing they were really going to use the money to keep their business and themselves afloat financially. They discouraged investors from withdrawing their money and urged them to roll over their investments because they lacked the funds to make the investors whole, their plea agreements say.

The pair bilked friends, relatives, neighbors and a fund to preserve and maintain a cemetery in Ste. Genevieve County. In dozens of letters, victims described being devastated by the loss of inheritances, retirement savings and the proceeds of the sale of homes and farms.

In one letter to Judge Limbaugh, a widow wrote that she “can’t believe 2 people pretending to be your friend could do such a horrible thing. In this day and time is there no one you can trust?”

One couple wrote that “Niswonger stole what it took us a lifetime to earn. We gave up comforts and luxuries so we could be prepared for the future, and he treated our sacrifices as if they were his to squander. Even now, he continues to rob us; not just of money, but of our peace in these last years of our lives. We cannot go back and earn it again. At our age, there is no starting over.”

Another victim wrote of the theft of $25,000 that her grandmother left to her to buy a house – the only way her family could afford to buy one.

Yet another victim wrote, “I’d like to state how shaken I have become about dealing with people in a county where many still use a handshake to make a deal.”

An 87-year-old woman who invested the $150,000 proceeds of the sale of her house said she can no longer afford rent.

“Niswonger and Johnson’s scheme victimized teachers, factory workers, truck drivers, farmers, a rancher, a waitress and even one of their own employees,” said U.S. Attorney Thomas C. Albus. “Their victims were not investing to amass luxuries or pay for vacation properties but to provide for their families, buy their first house or pass on a nest egg to their children or grandchildren, and Niswonger and Johnson preyed on that desire for safe and secure investments.”

“Jim Johnson and Darrell Niswonger exploited and defrauded members of their community for personal gain. The irreparable damage they caused has finally ended and justice has prevailed,” said Acting Special Agent in Charge Christopher Flowers of the FBI St. Louis Division. “Though the devastating financial impact of their actions will not be forgotten, it is our hope that today’s sentencing brings some closure to their many victims.”

“The U.S. Postal Inspection Service is dedicated to defending the nation’s mail system from criminal activity, preserving the integrity of the U.S. Mail, and protecting United States Postal Service employees. The U.S. Postal Inspection Service values our law enforcement partners for supporting our mission to protect the integrity of the U.S. Mail,” said Ruth M. Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Domicile Office.

Johnson and Niswonger pleaded guilty in U.S. District Court in Cape Girardeau in August to one count each of wire fraud, securities fraud and investment adviser fraud. Niswonger also pleaded guilty to four additional counts of wire fraud.

Johnson, of Perry County, and Niswonger, of Perryville, agreed to forfeit the $301,749 sales proceeds of Johnson’s home, a 2019 Audi A5 Premium, $61,734 in two bank accounts and $53,588 in brokerage accounts.

The FBI and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.

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

SALT LAKE CITY, Utah – During the lapse in government funding, the U.S. Attorney’s Office for the District of Utah continued its mission to protect public safety and prosecute federal cases. Below are some of the indictments, pleas of guilty, and sentencings obtained during the shutdown.

Oct. 9, 2025

Ryan Michael Gaines, 32, of Santa Clara, Utah, pleaded guilty to damaging government property, specifically a Department of Homeland Security Transit Van in April 2025. As a result, the damage to the van totaled $2,883.20. Gaines’ sentencing is set for January 7, 2026, before a U.S. Magistrate Judge at 11:30 a.m. in courtroom 2B 206 in St. George, Utah.

Oct. 14, 2025

Hector Luis Castillo-Reyes, 33, a Nicaraguan citizen living in the United States illegally, was indicted by a federal grand jury after he allegedly obtained approximately 104,000 blue M30 fentanyl pills that field-tested positive for fentanyl and weighed 23 pounds total. Castillo-Reyes was charged with possession of fentanyl with intent to distribute. He had his initial appearance on the indictment on October 30, 2025.

Oct. 14, 2025

Mario Guzman Bonilla, 20, a Honduran citizen living in the United States illegally, was indicted by a federal grand Jury on October 14, 2025, after law enforcement in Washington County, Utah, seized ten packages of narcotics from his vehicle. The packages tested positive for fentanyl, with a total weigh of 10 kilograms of fentanyl powder. Guzman Bonilla was charged with possession of fentanyl with intent to distribute. He had his initial appearance on the indictment on October 20, 2025.

Oct. 15, 2025

Darwin Brock, 58 of Lapoint, Utah, was indicted by a federal grand jury for abusive sexual contact of a child in Indian Country after he allegedly engaged in sexual contact with a victim under the age of 12. His initial appearance on the indictment is scheduled for November 18, 2025, at 2:15 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.

Oct. 29, 2025

Diriyeh Gass, 18, of Salt Lake City, Utah, was charged by a federal grand jury after he allegedly pulled out a handgun and pointed it at the driver of a vehicle that Gass then carjacked. Officers were able to stop the vehicle in Salt Lake City, Utah, but Gass took off on foot. Because Gass possessed the victim’s earbuds, the officers were able to track Gass to his home in Salt Lake City where Gass was arrested. Officers also seized a Hi-Point C9 9mm handgun from his home. Gass’s initial appearance on the indictment was on November 4, 2025.

Nov. 12, 2025

Thomas Paul Madden, 67, of Washington City, Utah, was sentenced to 100 months’ imprisonment and ordered to pay $13,860,988.56 in restitution after he engaged in a yearslong scheme in which he defrauded over 200 people out of $25 million. In addition to his term of imprisonment, the court also sentenced Madden to two years’ supervised release.

Source: United States Department of Justice Criminal Division

Four Co-Defendants Previously Pleaded Guilty for Their Roles in Compelling the Labor of H-2A Visa Recipients Throughout the Southeastern United States

Source: United States Department of Justice Criminal Division

David X. Sullivan, United States Attorney for the District of Connecticut, and Bryan DiGirolamo, Acting Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in New Haven returned an indictment yesterday charging JULIAN FOSTER, 35, of Hartford; LATEECHA GORDON, 37, of Hartford; and TERRELL BARNES, 43, of New Haven, with offenses related to the illegal trafficking and possession of firearms.

Foster was arrested on a federal criminal complaint on September 30, 2025, and is currently detained.  Gordon and Barnes were arrested today, appeared before U.S. Magistrate Judge Robert M. Spector in New Haven, enter pleas of not guilty, and were released on $100,000 bonds.

As alleged in court documents and statements made in court, an ATF investigation determined that Foster was acquiring firearms from a source in Texas, transporting them to Connecticut, and offering them for sale.  The investigation revealed that Gordon and Barnes were assisting Foster.  On September 3, 2025, an undercover ATF agent purchased a 9mm pistol, a 12-gauge shotgun, and a 5.56 caliber rifle from Foster in exchange for $6,000 in New Haven.  At the meeting, Foster indicated that he intended to acquire additional firearms that he would sell to the undercover agent.  On September 11, Foster and Gordon were arrested in Huntsville, Texas, after Huntsville Police stopped Foster’s vehicle and found three firearms concealed in the engine bay of the vehicle, and found Gordon in possession of drug paraphernalia.  On September 12, a related search of a storage facility that Gordon rented in Houston revealed five firearms, ammunition, gun magazines, miscellaneous gun parts, and other items.

It is further alleged that on September 19, Foster contacted the undercover agent and offered to sell additional firearms.  Foster provided the agent with photos of two firearms and a video of an auto sear conversion device, which, when equipped to a firearm, allows it to shoot at a fully automatic rate.

It is alleged that investigators seized an AM-15 rifle and a 12-gauge shotgun from Foster’s vehicle in New Haven after he was federally arrested on September 30.

The indictment, which was returned yesterday, charges Foster, Gordon, and Barnes, with firearms trafficking conspiracy, an offense that carries a maximum term of imprisonment of 15 years.  The indictment also charges Foster and Barnes with unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 15 years.

It is alleged that Foster was previously convicted in Connecticut state court of robbery in the first degree involving the display or threatened use of a firearm, failure to appear in the first degree, and sale of a controlled substance, and that Barnes was previously convicted in Connecticut state court of sale of a narcotic substance and conspiracy to commit larceny in the third degree.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

U.S. Attorney Sullivan stressed that an indictment is not evidence of guilt.  A charge is only an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the assistance of the Huntsville (Texas) Police Department and the Arkansas State Police.  The case is being prosecuted by Assistant U.S. Attorney Nathan J. Guevremont.

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 (OCDETF) and Project Safe Neighborhood (PSN).

Source: United States Department of Justice Criminal Division

Jackson, MS – On October 15, 2025, a Neshoba County man pleaded guilty to Possession of Methamphetamine with the Intent to Distribute.

According to court documents, in November of 2023, Billy Thomas Pike, 67, was found to be in possession of methamphetamine. Pike was indicted by a federal grand jury in July of 2025.

Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi, and Robert Eikhoff, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Jackson Office, made the announcement.  The conviction was the result of the investigatory teamwork of local state and tribal law enforcement officers who comprise the FBI’s Safe Trails Task Force.

The FBI Safe Trails Task Force (STTF) is a collaborative effort between the FBI and other law enforcement agencies to combat violent crime and drug trafficking in Indian Country and surrounding communities. The STTF works with a variety of partners, including tribal, state, and local law enforcement.  The STTF has been a key part of the FBI’s partnerships in Indian Country for almost 30 years and has been a presence on the Choctaw Indian Reservation since 2022.

“The Task Force is dedicated to keeping our tribal and surrounding non-tribal communities safe by working along-side our partners, training together, and policing our communities together.” said Neshoba County Sheriff Eric Clark, who has three members from his department who also serve as Task Force Officers. Director of Choctaw Public Safety Gabriel Billie explained that “the Mississippi Safe Trails Task Force ensures the FBI and partnering agencies work together to protect members of the Mississippi Band of Choctaw Indians and investigate criminal activity with a federal nexus in and around the Reservation Communities in Mississippi.”

Pike is scheduled to be sentenced in January of 2026 and faces a maximum penalty of not less than ten years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Neshoba County Sheriff’s Department, Choctaw Police Department, the FBI all investigated the case.

Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.

Source: United States Department of Justice Criminal Division

HOUSTON – Between Sept. 26-Nov. 13, a total of 2409 individuals have been charged in 2387 immigration and related cases as part of ongoing enforcement efforts along the South Texas border, announced U.S. Attorney Nicholas J. Ganjei.

A total of 966 people face charges of illegal entry, while another 1245 individuals face charges of felony reentry after removal. Most have felony convictions for narcotics, violent crime, immigration crimes and more. The filed cases also include 140 people alleged to have engaged in human smuggling, with the remaining 58 cases involving drugs, firearms offenses, assaults on federal officers and other immigration-related crimes.

One such person charged is a 33-year-old El Salvadorian national who allegedly attacked and injured an Immigration and Customs Enforcement officer. According to the criminal complaint, Walter Leonel Perez Rodriguez threw a 32-ounce stainless steel mug filled with hot coffee on the officer, striking him in the face. The officer allegedly fell to the ground and lost consciousness. He was treated for second-degree burns to his neck and arms and a laceration to his upper lip that required 18 stiches, according to the allegations. The criminal complaint alleges authorities first removed Rodriguez from the United States in 2013, and he returned at least two more times. 

Also charged was 36-year-old Mexican national Javier Cornelio Cruz-Nava, who allegedly assaulted a federal officer in Houston. According to the complaint, authorities were conducting immigration enforcement operations Oct. 1, when Cruz-Nava fled a traffic stop on foot. A Texas Department of Public Safety agent caught up to him, but Cruz-Nava allegedly lunged and threw the officer into a wrought-iron fence, causing two deep head wounds to the officer, according to the charges.

“These officers place their lives on the line every day to protect our communities and country, and they deserve to be protected in return,” said Ganjei. “Anyone who attacks law enforcement is attacking the American system of justice, and those who choose violence over lawfulness will be met with swift charges. The Southern District of Texas has a zero-tolerance policy towards anyone who does so. The message is clear – comply with officer directives and keep your hands to yourself.”

If convicted of assaulting, resisting or impeding a person assisting a federal officer, both men face up to 20 years in federal prison and a possible $250,000 maximum fine.  

Another notable case involves 41-year-old Cambodian national named Savin Seng aka “Two-Face.” Following a shooting incident that left a woman deceased, the charges allege law enforcement located a cell phone with an image showing a man holding a Glock pistol with an extended magazine. The criminal complaint alleges the man was Seng, whom a witness had identified as the murder suspect. Seng had illegally entered the United States as a child and never held lawful immigration status in the country, according to the allegations. The criminal complaint further alleges Seng has had possession of several guns while remaining in the United States illegally. If convicted, he faces up to 10 years in federal prison as well as a possible $250,000 maximum fine.

Some of those charged in new illegal reentry cases include Mexican nationals Ciro Mora-Santiago and Miguel Tinajero-Velasquez. Their criminal complaints allege previous convictions of aggravated assault with a deadly weapon with both being subsequently removed from the United States. However, authorities allegedly found them in the Rio Grande Valley this past week. Other charges allege law enforcement found four others also illegally in the country – all of whom had allegedly already been removed this year and have prior convictions such as drug trafficking or conspiracy to produce false identification documents. Those men include Honduran national Orlando Espinoza-Morales and Aurelio Galvan-Jimenez, Javier Ortiz-Rivera and Maria Remedios Granados-Guerra, all of Mexico. If convicted, they face up to 10 years in federal prison.       

Also of note was the sentencing of three members of the Pasia gang. Oscar Ambrocio Hernandez, Ruben Gonzalez-Balderas and Roger Emmanuel Lemus received 137 months, 126 months and 57 months, respectively, for assaulting two federal corrections officers at the East Hidalgo Detention Center. The inmates, who were already in custody pending federal immigration charges, outnumbered the officers and repeatedly punched and kicked them. They were housed in a gang-designated unit within the facility. One inmate wielded a sock with a bar of soap as a weapon during the assault. One correctional officer sustained injuries that resulted in multiple staples in his forehead. Seven others have also been sentenced to terms ranging from 48-114 months.

In Houston, Mailon Almendares-Martinez, received 51 months after serving as a leader in a smuggling conspiracy that moved aliens from the South Texas border to Houston. Between October and November 2022, he organized drivers through WhatsApp and phone calls, paying up to $2,000 per person. During one trip, rival smugglers shot at them en route to Houston, wounding two aliens in the arm and leg. After the shooting, Almendares-Martinez told the drivers to return to Houston and not seek medical attention. Seven co-conspirators from New Orleans previously have also pleaded guilty.

A federal jury in Corpus Christi deliberated for approximately one hour before returning a guilty verdict against Jose Eduardo Rocha, 47, Seagoville, for alien smuggling. He had driven a tractor trailer to the Border Patrol checkpoint near Falfurrias where authorities noticed suspicious behavior. They soon found four illegal aliens hiding on the top bunk, the main bed behind the driver, inside the closet and under the bed. Testimony revealed Rocha told the illegal aliens to be quiet and to hide. He faces up to five years in federal prison and a $250,00 fine.

A 41-year-old Mexican national who illegally resided in Houston was sentenced to the maximum of 120 months for leading an alien smuggling conspiracy and illegal reentry into the country. Edgar Ruiz-Briones led a network that arranged transportation for illegal aliens crossing from Mexico into the United States. He recruited drivers from multiple states to bring aliens to Houston, where they were moved further north. Over an 18-month period, he coordinated trips for more than 100 individuals and managed payments between them and his drivers. ICE – Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. AUSA Joseph Griffith is prosecuting the case as part of Operation Take Back America.

Also of note was the sentencing of Mexican national who had illegally reentered the country. Luis Adrian Torres-Tamayo, 39, is a convicted felon illegal alien who had previously assaulted police. He was first removed in 2012 after sustaining a conviction for possession of a controlled substance. He illegally returned and in 2022, he assaulted two local law enforcement officers during a domestic violence dispute. He repeatedly attacked them, seizing their taser guns and striking them with a closed fist. He was sentenced to 105 months.

In Laredo, a homicide convict was sentenced after illegal aliens were found crammed in a trunk an on floorboard of compact car. Antonio Pena, 57, Rio Bravo, received 63 months in federal prison. On Feb. 14, authorities stopped him at a gas station while driving a heavily weighted Chevrolet Cruze and appeared nervous when law enforcement questioned him. Authorities discovered one alien lying on the floorboard and two others crammed in the trunk. One illegal alien admitted he had waded across the Rio Grande and Pena told him to hide in the car.

Three more cases were sentenced in Houston involving foreign nationals who had illegally returned to the United States. Mexican national Eduardo Ramiro Gonzalez-Leal had been removed in November 2015 and October 2021 and has prior felony convictions for drug conspiracy, firearm possession and driving under the influence. He received 76 months. Wilfredo Sanchez, also of Mexico, had illegally reentered four times and received 66 months and has prior felony convictions for illegal reentry, burglary of habitation and evading arrest. Salvadorian national Carlos Membreno-Lainez has prior convictions for evading arrest and theft as well as a significant sentence for aggravated robbery with a deadly weapon. He was removed in November 2018, but authorities encountered him again Nov. 30, 2024, following an arrest in Harris County on charges of felony assault of a family member impeding breath. He received 72 months for illegal reentry.

In Brownsville, an illegal alien sex offender was also ordered to prison. David Antonio Varcenas-Aguilar, a 45-year-old man from Matamoros, Tamaulipas, Mexico, has a felony conviction for aggravated sexual assault of a child. Authorities first removed him from the United States in 2015, but he unlawfully returned shortly thereafter. He has now been ordered to federal prison for 27 months for illegally reentering the United States after removal. The court noted he was sentencing Varcenas-Aguilar at the highest sentence pursuant to the federal sentencing guidelines because of his serious criminal history which involve violence against another.

These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement – Homeland Security Investigations, ICE – Enforcement and Removal Operations, Border Patrol, Drug Enforcement Administration, FBI, U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives with additional assistance from state and local law enforcement partners.

The cases are 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. 

Under current leadership, public safety and a secure border are the top priorities for this district. Enhanced enforcement both at the border and in the interior of the district have yielded aliens engaged in unlawful activity or with serious criminal history, including human trafficking, sexual assault and violence against children.  

The U.S. Attorney’s Office for the Southern District of Texas remains one of the busiest in the nation. It represents 43 counties and more than nine million people covering 44,000 square miles. Assistant U.S. Attorneys from all seven divisions including Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo work directly with our law enforcement partners on the federal, state and local levels to prosecute the suspected offenders of these and other federal crimes. 

An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Source: United States Department of Justice Criminal Division

ALBUQUERQUE – A previously convicted felon is facing federal weapons charges following four separate shooting incidents on the Navajo Nation over a 14-month period.

According to court documents, between July 2024 and September 2025, Cisco Whitehorse, 43, an enrolled member of the Navajo Nation, was involved in four separate shooting incidents on the Navajo Nation. First, in July 2024, Whitehorse shot at John Doe 1 from his car as the victim drove by, hitting him three times. John Doe 1 did not report the shooting at the time because he hoped that Whitehorse would leave him alone. When questioned later, Whitehorse admitted to shooting at John Doe 1.

In August 2024, Whitehorse allegedly shot at John Doe 2 from his house as the victim was driving by. When questioned later, Whitehorse denied shooting John Doe 2, however, law enforcement officers located multiple spent shell casings in his driveway.

In August 2025, Whitehorse allegedly again opened fire from his house on a vehicle John Doe 1 was driving. Fortunately, no one was struck.

Finally, in September 2025, Whitehorse fired several shots from his vehicle in the area of a local government building before fleeing at a high rate of speed.

On October 24, 2025, the FBI executed a search warrant at Whitehorse‘s residence. During the search, three firearms and ammunition were located. As a previously convicted felon, Whitehorse is prohibited from possessing firearms and ammunition.

Whitehorse is charged with possession of a firearm and ammunition by a prohibited person and will remain in custody pending trial, which has not been scheduled. If convicted of the current charges, Whitehorse faces 15 years in prison.

Acting U.S. Attorney Ryan Ellison and Justin A. Garris, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

The Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Amy Mondragon is prosecuting the case.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This press release was posted November 14, after the end of the federal government shutdown.

Source: United States Department of Justice Criminal Division

SAN DIEGO – Dr. Karim Arabi was sentenced in federal court on October 28, 2025, to 48 months in prison for wire fraud and money laundering in connection with a massive $180 million scheme targeting his then-employer, Qualcomm.

Chief U.S. District Judge Cynthia A. Bashant also ordered Dr. Arabi to forfeit more than $45 million plus properties in Canada and Norway, and to pay $100,894,711.12 in restitution to Qualcomm. During the hearing, Chief Judge Bashant characterized Dr. Arabi’s conduct as “breathtaking in its dishonesty.”

Dr. Arabi was convicted of wire fraud conspiracy, wire fraud, and conspiracy to commit money laundering following a four-week jury trial in April 2025. According to evidence presented at trial, while working as a Vice President of Qualcomm’s Research and Development Department, Dr. Arabi committed fraud by developing valuable microchip technology, marketing the technology through a company, Abreezio, which he created to conceal his involvement, and then selling the company and its technology to Qualcomm for $180 million. In reality, Qualcomm would not have paid a dime for the technology had it known of Dr. Arabi’s involvement because, as part of his employment with Qualcomm, Dr. Arabi had agreed that virtually all technology he invented while working at Qualcomm belonged to his employer.

The trial evidence showed that Dr. Arabi and his accomplices created a host of lies and false documents to deceive Qualcomm about Abreezio’s origins. Dr. Arabi himself created two fake email accounts to impersonate his sister to make it appear that she was actively participating in Abreezio and to hide his own involvement. His accomplices repeatedly called him by his sister’s name in their communications to obscure his role. Dr. Arabi even created a fake resume for his sister, embellishing her background to make it more plausible that a graduate student could have invented the technology behind a $180 million company.

Qualcomm actually paid over $150 million to the coconspirators and others before discovering the fraud. According to evidence presented at trial, after the deal closed and Qualcomm unwittingly paid almost $92 million to Dr. Arabi’s sister, the campaign of concealment continued: Dr. Arabi invested the money in Canadian and Norwegian real estate while hiding his involvement, funneled funds back to his U.S. companies via intermediary shells, and received steady installments of laundered fraud proceeds until the month before his arrest in this case. Altogether, Dr. Arabi’s siblings bought 15 pieces of luxury real estate with the proceeds of his fraud.  The forfeiture order entered as part of Dr. Arabi’s sentencing reflects the disgorgement of these ill-gotten gains from Dr. Arabi. Even when Qualcomm filed a civil suit against Dr. Arabi, his sister, and Abreezio’s CEO, the deception did not end. Dr. Arabi and his sister answered requests from Qualcomm about the origins of Abreezio’s technology by producing a falsified research notebook that, as shown during trial, was created years after the fact. And Dr. Arabi himself directed one of his accomplices to delete emails when he learned he was being investigated.

“The defendant’s conduct was a staggering betrayal of trust,” said U.S. Attorney Adam Gordon. “He spent years scheming, lying, and hiding his deception so he could secretly enrich himself at his employer’s expense. His complex and devious fraud cost the company more than $150 million. This sentence—four years in prison and massive restitution and forfeiture—reflects the seriousness of his crimes and sends an unmistakable message: corporate criminals who abuse their positions out of greed will face justice.”

“Karim Arabi conspired to profit from technology he knew he had no lawful right to claim, betraying his then-employer,” said Mark Dargis Special Agent in Charge of the FBI San Diego Field Office. “Corporate fraud hurts more than individual companies and their shareholders—it also damages the trust of entire communities. FBI San Diego is proud to have worked with our law enforcement partners at the IRS and U.S. Marshals Service to conduct a thorough investigation ensuring Arabi was held accountable for this elaborate scheme.”

“This case underscores the importance of corporate integrity and the serious consequences of betraying that trust. Mr. Arabi’s actions were not only deceptive but deeply calculated, involving layers of misrepresentation and concealment,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The sentence sends a clear message, no matter how sophisticated the scheme, those who defraud and manipulate for personal gain will be held accountable.”

The sentencing took place on October 28, 2025. This press release was delayed due to the lapse in appropriations.

This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.

DEFENDANT                                 Case Number 22-CR-1152-BAS                                      

Karim Arabi                                        Age: 59                                   Oceanside, CA

CHARGES

Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349

Maximum Penalties: Twenty years in prison; $1 million fine or twice the amount of the criminally derived property involved in the transaction

Wire Fraud, in violation of 18 U.S.C. § 1343

Maximum Penalties: Twenty years in prison; $1 million fine

Conspiracy to Launder Monetary Instruments, in violation of 18 U.S.C. § 1956(h)

Maximum Penalties: Twenty years in prison; $500,000 fine or twice the amount of the criminally derived property involved in the transaction

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service, Criminal Investigation

United States Marshals Service

Source: United States Department of Justice Criminal Division

Ex-Felon Pleads Guilty to Attempting to Bribe ICE Officer

 

CONCORD – A native of the Dominican Republic who was facing deportation pleaded guilty to attempting to bribe a law enforcement officer to secure his release from custody, U.S. Attorney Erin Creegan announces.

On November 5, 2025, Marlon Aramis Suazo-Santos, 46, pleaded guilty to one count of attempting to bribe a public official.  According to the charging documents and statements made in court, U.S. Immigration and Customers Enforcement (“ICE”) personnel transported Suazo-Santos from Berlin to Manchester on July 18, 2025.  Suazo-Santos was completing a term of incarceration resulting from a 2020 federal conviction and was subject to removal to the Dominican Republic.  While he was being transported to ICE’s Manchester facility, Suazo-Santos offered $100,000 to the ICE officer in exchange for his release.  The ICE officer promptly reported the bribe offer to other Homeland Security personnel, and the transport vehicle was equipped with an electronic audio recording device.  That same day, while the same ICE officer transported Suazo-Santos to a local detention facility, Suazo-Santos made additional inculpatory statements regarding the bribe to secure his release which were recorded.

Suazo-Santos remained in ICE custody until he was arrested on a criminal complaint on August 15.  A federal grand jury returned a one-count indictment on September 3, 2025.  Suazo-Santos remains in the custody of the U.S. Marshals pending his sentencing.

The charges carry a maximum possible sentence of 15 years imprisonment. 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.  The Court scheduled sentencing in this matter for February 11, 2026.

The investigation was led by Homeland Security Investigations within the United States Department of Homeland Security.  Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.