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Source: United States Department of Justice Criminal Division

Two alleged members of Free Money, a violent Houston-based street gang, were indicted yesterday in the Southern District of Texas for their alleged roles in the murder of one individual and attempted murder of another during a gang-related ambush.

According to court documents, Free Money members and associates engage in robbery, home invasions, drug distribution, and murder. The defendants, Terry Ardoin, 24, and Travonte Ardoin, 27, both of Houston, allegedly committed the murder in connection with an ongoing gang war with a rival group.

On June 24, 2022, in broad daylight, surveillance footage captured the Ardoins following a Chevrolet Equinox into a shopping center parking lot in a Black Nissan Altima. As alleged in court documents, the driver of the Equinox entered a nearby store while the passenger remained in the vehicle. When the driver returned, the Ardoins allegedly exited the Altima wearing masks and opened fire on both individuals.

Witnesses reported hearing numerous gunshots and described the distinct sound of a fully automatic weapon, believed to have been modified with a machine gun conversion device commonly referred to as a “switch.” 

Multiple rounds struck the vehicle’s passenger compartment. Houston Police Department officers responded within minutes and found one victim deceased.

Terry and Travonte Ardoin are charged with murder in aid of racketeering, attempted murder in aid of racketeering, use of a firearm in furtherance of a crime of violence and causing death through the use of a firearm. If convicted, they face a maximum penalty of life in prison or a death sentence. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI conducted the investigation with the assistance of the Houston Police Department.

Trial Attorney Ralph Paradiso of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and Assistant U.S. Attorney Benjamin Brown for the Southern District of Texas are prosecuting the case.

This case is part of the Criminal Division’s Violent Crime Initiative to prosecute violent crimes in Houston. The Criminal Division and the U.S. Attorney’s Office for the Southern District of Texas have partnered, along with local, state, and federal law enforcement agencies, to confront violent crimes committed by gang members and associates through the enforcement of federal laws and use of federal resources to prosecute the violent offenders and prevent further violence.

An indictment is merely an allegation. 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

Defense contractor Aero Turbine Inc., of Stockton, California, and private equity company Gallant Capital Partners LLC, of Los Angeles, have agreed to pay $1.75 million to resolve their liability under the False Claims Act for knowingly failing to comply with cybersecurity requirements in an Aero Turbine contract with the Department of the Air Force. In connection with the settlement, the United States acknowledged that Aero Turbine and Gallant took significant steps entitling them to credit for cooperating with the government.

“Government contractors must follow required cybersecurity standards to protect sensitive defense information,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “When defense contractors fail to comply with cybersecurity requirements, they can mitigate the consequences by making timely self-disclosures, cooperating with investigations, and taking prompt remedial measures.”

“Every defense contractor must provide adequate security to safeguard covered defense information,” said Acting U.S. Attorney Kimberly A. Sanchez for the Eastern District of California. “We commend Aero Turbine and Gallant for disclosing the issue and promptly cooperating to address it. We encourage others to follow their example of self-reporting to resolve violations.”

“Protecting the integrity of the Department of Defense (DoD) procurement processes is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Director Kelly Mayo of DCIS. “Failing to comply with DoD contract specifications and cybersecurity requirements puts DoD information and programs at risk of exploitation. DCIS will continue to collaborate with our law enforcement partners and the Department of Justice to investigate allegations of false claims on DoD contracts.”

“This case serves as a reminder that cybersecurity transcends mission sets. Ensuring companies adhere to robust cybersecurity safeguards is integral to maintaining the Air Force’s operational edge against adversaries,” said Special Agent in Charge Caroline Galinis of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 1. “AFOSI’s Procurement Fraud team, alongside investigative partner agencies and the Department of Justice, played a critical role in protecting U.S. national security interests.”

The settlement resolves the liability of Aero Turbine and Gallant under the False Claims Act for knowingly submitting or causing others to submit false or fraudulent claims for payment on a Department of the Air Force contract, which were allegedly false or fraudulent because they had not complied with the contract’s cybersecurity requirements. From January 2018 to February 2020, Aero Turbine allegedly failed to implement certain cybersecurity controls in National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171 that, if not implemented, could lead to significant exploitation of the system or exfiltration of sensitive defense information.

In addition, from June to July 2019, Aero Turbine and Gallant allegedly failed to control the flow of, and limit unauthorized access to, sensitive defense information by providing a software company based in Egypt with files containing such information, even though the software company and its foreign citizen personnel were not authorized to receive sensitive defense information under the Air Force contract. After learning of the issues, Aero Turbine and Gallant provided the government with multiple written self-disclosures, cooperated with the government’s investigation of the issues, and took prompt remedial action.

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, the U.S. Attorney’s Office for the Eastern District of California, DCIS, AFOSI, and the Air Force Materiel Command Law Office Procurement Fraud Division. The matter was handled by Fraud Section attorneys Robin Overby and Christopher Terranova and Assistant U.S. Attorney David Thiess.

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

Note: Read the Settlement here.

Source: United States Department of Justice Criminal Division

Illumina Inc. has agreed to pay $9.8 million to resolve allegations that it violated the False Claims Act when it sold to federal agencies certain genomic sequencing systems with cybersecurity vulnerabilities. Illumina is a Delaware corporation, headquartered in California, that manufactured and sold genomic sequencing systems throughout the United States.

The settlement resolves allegations that, between February 2016 and September 2023, Illumina sold government agencies genomic sequencing systems with software that had cybersecurity vulnerabilities, without having an adequate security program and sufficient quality systems to identify and address those vulnerabilities. Specifically, the United States contended that Illumina knowingly failed to incorporate product cybersecurity in its software design, development, installation, and on-market monitoring; failed to properly support and resource personnel, systems, and processes tasked with product security; failed to adequately correct design features that introduced cybersecurity vulnerabilities in the genomic sequencing systems; and  falsely represented that the software on the genomic sequencing systems adhered to cybersecurity standards, including standards of the International Organization for Standardization and National Institute of Standards and Technology.

“Companies that sell products to the federal government will be held accountable for failing to adhere to cybersecurity standards and protecting against cybersecurity risks,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement underscores the importance of cybersecurity in handling genetic information and the Department’s commitment to ensuring that federal contractors adhere to requirements to protect sensitive information from cyber threats.”

“This settlement demonstrates our continuing commitment to combat cybersecurity risks by ensuring that federal contractors protect private and sensitive government information.” said Acting U.S. Attorney Sara Bloom for the District of Rhode Island.

“This settlement demonstrates our continued commitment to work with our law enforcement partners and the Department of Justice to ensure companies fulfill their contractual obligations,” said Acting Special Agent in Charge Christopher M. Silvestro of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, the law enforcement arm of the Department of Defense’s Office of Inspector General. “Safeguarding the validity of Department of Defense research and data is vital to supporting the warfighter.” 

“Significant damage can result from a failure to adhere to required cybersecurity standards, especially when the systems involved include sensitive genomic data,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to ensuring that entities who do business with the government uphold their cybersecurity obligations.”

The settlement resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Erica Lenore, a former Director for Platform Management, On-Market Portfolio at Illumina, to receive $1,900,000 as her share of the settlement. The qui tam case is captioned United States ex. rel. Lenore v. Illumina Inc., No. 1:23-cv-00372 (D.R.I.).

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 United States Attorney’s Office for the District of Rhode Island, with assistance from DCIS, the Army Criminal Investigation Division, the HHS Office of the Inspector General, and the Department of Commerce Office of the Inspector General.

The matter was investigated by Trial Attorney Erin Colleran of the Justice Department’s Civil Division and Acting U.S. Attorney Sara Bloom of the District of Rhode Island.

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

Source: United States Department of Justice Criminal Division

Today, the Department of Justice announced the launch of the Backpage remission process to compensate victims whose trafficking was facilitated through the Backpage.com website. This marks the largest remission process to date to compensate victims of human trafficking.

“Backpage.com facilitated the exploitation of women and children as one of the largest online advertisers for commercial sex and sex trafficking over its 14-year existence,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Backpage and its executives made millions off the trafficking of victims. Today’s announcement underscores the Department’s unwavering commitment to use forfeiture to take the profit out of crime and to compensate victims.”

“Backpage used its position as the leading commercial sex advertisement website to make millions of dollars through their corrupt and heinous peddling of people,” said U.S. Attorney Timothy Courchaine for the District of Arizona. “The District of Arizona was proud to hold its executives accountable though criminal convictions and is proud to continue our efforts by forfeiting those ill-gotten gains to compensate real victims.”

“Today’s announcement shows the FBI’s commitment to ensuring that those who profit from human trafficking face the consequences of their actions,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “We will continue to work alongside partners to thwart this industry by decimating its capacity for monetary gain while seeking safeguards for its victims.”

“Sex trafficking is one of the most horrific crimes we confront as a society,” said Chief Guy Ficco of IRS Criminal Investigation. “While traffickers try to operate in the shadows, the money always leaves a trail—and that’s where we come in. IRS-CI is committed to following that financial trail to expose criminal networks and help bring justice to survivors. We’re proud to work with our federal partners to dismantle those who profit from exploitation. Victims in this case should file their petitions by Feb. 2, 2026, to access the compensation they rightfully deserve.”

From 2004 to April 2018, criminals used Backpage.com as an online platform to facilitate commercial sex and sex trafficking, including trafficking of minors. In April 2018, the government seized Backpage.com. To date, Backpage.com, its owners, and key executives and businesses related to the platform have been found guilty of criminal offenses, including conspiring to facilitate unlawful commercial sex using a facility in interstate or foreign commerce and money laundering, and have been sentenced to federal terms of imprisonment.

In December 2024, the Department of Justice forfeited over $200 million in assets traceable to Backpage’s profits. These funds are now available to compensate victims for eligible losses. The Department of Justice has retained Epiq Global Inc. (Epiq) to serve as the Remission Administrator for this matter.

Victims whose sex trafficking was facilitated through advertisements posted on Backpage.com between Jan. 1, 2004, and April 6, 2018, and who incurred financial losses related to their trafficking may be eligible for remission. Individuals, their representatives, or estates of deceased victims may file a petition online or may obtain a Petition Form online at https://www.backpageremission.com/. Victims may also call, email, or write to the Remission Administrator to request that a Petition Form be sent to them.

The deadline to file a petition for remission is Feb, 2, 2026. For more information about the remission process – including eligibility requirements, updates, and frequently asked questions – please visit the official website at https://www.backpageremission.com/ or contact Epiq at 1-888-859-9206 toll-free, or 1-971-316-5053 for international calls, charges may apply. The Remission Administrator and the Justice Department will not ask for any payment to participate in this remission process.

The United States Postal Inspection Service (USPIS), the FBI, and IRS Criminal Investigation (IRS-CI) investigated this matter. 

Senior Trial Attorney Austin Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Kevin Rapp with assistance on forfeiture from Joseph Bozdech of the District of Arizona are prosecuting the case. Assistant U.S. Attorney Jonathan S. Galatzan, Chief of the Central District of California’s Asset Forfeiture and Recovery Section, handled the asset forfeiture aspects of the related civil cases. Special Agent Richard Robinson of IRS-CI, Special Agent Desirae Tolhurst of the FBI, USPIS Inspectors Lyndon Versoza and Quoc Thai, and Analyst Jane Chung with the Joint Regional Intelligence Center, spearheaded the investigation.

The Department of Justice, through the Asset Forfeiture Program, works diligently to compensate victims of crime. Since 2000, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), which oversees the Asset Forfeiture Program’s victim compensation program, has successfully used its specialized expertise to return more than $12 billion in forfeited assets to victims of crime. MLARS Senior Attorney Advisor Jane K. Lee and Attorney Advisor Brittany R. Van Camp with the section’s Program Management and Training Unit are leading the remission process.   

Source: United States Department of Justice Criminal Division

WASHINGTON – Today, the Department of Justice transmitted the declassified Appendix of the Durham Report to the Senate Judiciary Committee following collaboration with the Central Intelligence Agency (CIA). This transmission advances President Donald J. Trump’s directive for maximum transparency and underscores the Attorney General’s commitment to that objective. It also fulfills a request for disclosure by Senate Judiciary Chairman Senator Chuck Grassley (R-IA), whose leadership on this issue has been instrumental.

This latest transmission to Senate Republicans follows the Department’s recent disclosure of information related to the FBI’s handling of the investigation into Hillary Clinton’s use of a private email server and mishandling of classified information.

Following the transmission of new Durham documents, Attorney General Pamela Bondi, CIA Director John Ratcliffe, and FBI Director Kash Patel released the following statements:

“Today, the Department of Justice provided Chairman Grassley with previously classified information relating to Special Counsel Durham’s investigation into possible coordination between the Clinton campaign and the Obama administration to interfere with the 2016 presidential election. This Department of Justice, alongside the CIA, is committed to truth and transparency and will continue to support good-faith efforts by Congress to hold our government accountable.” – Attorney General Pamela Bondi

“Today, CIA and the Department of Justice under Attorney General Pam Bondi are taking a bold step forward in declassifying the underlying intelligence in the Durham appendix showing the false Trump-Russia collusion narrative for what it was – a coordinated plan to prevent and destroy Donald Trump’s presidency. CIA stands with the Department and is committed to transparency and rebuilding trust in the IC. The American people deserve the opportunity to see the evidence for themselves.” – CIA Director John Ratcliffe

“The American people deserve the full, unfiltered truth about the Russia collusion hoax and the political abuse of our justice system it exposed. Today’s declassification and release of documents tied to the Durham report is another step toward that accountability. The FBI will continue working tirelessly with our federal partners at DOJ, CIA, and more to uncover the facts that should have been brought to light years ago. I’m grateful to Chairman Grassley for his steadfast leadership on this issue, and I look forward to our continued partnership in exposing one of the most shameful frauds ever perpetrated on the American public.” – FBI Director Kash Patel