MIL Security Engine-1

Source: United States Navy

CARIBBEAN SEA – The Arleigh Burke-class guided missile destroyer USS Cole (DDG 67), supporting maritime southern border operations, conducted a hold-and-transfer of 245 kilograms of contraband recovered by the Royal Canadian Navy Harry DeWolf-class offshore patrol vessel HMCS William Hall (AOPV 433) in the Caribbean Sea June 9. The Reliance-class U.S. Coast Guard (USCG) Cutter Vigorous (WMEC 627) accepted the contraband from the Cole’s embarked USCG Law Enforcement Detachment (LEDET) June 11 during a rendezvous at sea in the Caribbean.

Source: United States Navy

SKRUNDA, Latvia – As part of exercise Baltic Operations (BALTOPS) 2025, U.S. Navy Seabees, U.S. Marines from 8th Engineer Support Battalion (ESB), and Latvian Army engineers are constructing a fortified trench network designed for survivability in a drone-contested battlespace. The project serves both as a realistic rehearsal and a proof of concept for how modern combat engineers support maneuverability, concealment, and endurance in multi-domain operations.

Source: United States Department of Justice Criminal Division

Four men, including a government contracting officer for the United States Agency for International Development (USAID) and three owners and presidents of companies, have pleaded guilty for their roles in a decade-long bribery scheme involving at least 14 prime contracts worth over $550 million in U.S. taxpayer dollars.

• Roderick Watson, 57, of Woodstock, Maryland, who worked as a USAID contracting officer, pleaded guilty to bribery of a public official;
• Walter Barnes, 46, of Potomac, Maryland, the owner and president of PM Consulting Group LLC doing business as Vistant (Vistant), a certified small business under the U.S. Small Business Administration (SBA) 8(a) contracting program, pleaded guilty to conspiracy to commit bribery of a public official and securities fraud;
• Darryl Britt, 64, of Myakka City, Florida, the owner and president of Apprio, Inc. (Apprio), a certified small business under the SBA 8(a) contracting program, pleaded guilty to conspiracy to commit bribery of a public official; and
• Paul Young, 62, of Columbia, Maryland, the president of a subcontractor to Vistant and Apprio, pleaded guilty to conspiracy to commit bribery of a public official.

In addition, Apprio and Vistant, both of which contracted with USAID, have agreed to admit criminal liability and enter into three-year deferred prosecution agreements (DPAs) in connection with criminal informations filed today in the District of Maryland. As part of these resolutions, both Apprio and Vistant admitted to engaging in a conspiracy to commit bribery of a public official and securities fraud. The DPAs entered into with Apprio and Vistant require each company to, among other obligations, provide ongoing cooperation with and disclosures to the Justice Department, implement a compliance and ethics program, and report to Justice Department regarding remediation and implementation of these compliance measures.

“The defendants sought to enrich themselves at the expense of American taxpayers through bribery and fraud,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Their scheme violated the public trust by corrupting the federal government’s procurement process. Anybody who cares about good and effective government should be concerned about the waste, fraud, and abuse in government agencies, including USAID. Those who engage in bribery schemes to exploit the U.S. Small Business Administration’s vital economic programs for small businesses — whether individuals or corporations acting through them — will be held to account.” 

“Watson was entrusted to serve the interests of the American people — not his own — and his criminal actions for his own personal gain undermine the integrity of our public institutions,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “Public trust is a hallmark of our nation’s values, so corruption within a federal government agency is intolerable. This office, along with our law enforcement partners, will continue to pursue and prosecute corruption at every level to ensure accountability and protect public trust.”

“The guilty pleas reflect the FBI’s unwavering commitment to holding accountable all those who abuse the authority and responsibility of public service,” said FBI Criminal Investigative Division Acting Assistant Director Darren Cox. “The actions of the defendants in this scheme serve to erode public trust. The FBI is focused on rebuilding this trust and protecting American taxpayers from corruption through investigations such as these.”

“Corruption in government programs will not be tolerated. Watson abused his position of trust for personal gain while federal contractors engaged in a pay-to-play scheme,” said Acting Assistant Inspector General for Investigations Sean Bottary of the USAID Office of Inspector General (USAID-OIG). “USAID-OIG is firmly committed to rooting out fraud and corruption within U.S. foreign assistance programs. Today’s announcement underscores our unwavering focus on exposing criminal activity, including bribery schemes by those entrusted to faithfully award government contracts. We appreciate our longstanding partnership with the Department of Justice in holding accountable those who defraud American taxpayers.”    

“Watson exploited his position at USAID to line his pockets with bribes in exchange for more than $550 million in contracts. While he helped three company owners and presidents bypass the fair bidding process, he was showered with cash and lavish gifts,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Through its financial crime investigations, IRS-CI works to protect taxpayer dollars and ensure government funds are awarded based on merit — not corruption. In close coordination with our law enforcement partners, IRS-CI helped put an end to their greed and criminal conduct. Now, Watson and his co-conspirators will face justice.”

Overview of Bribery Scheme

According to court documents, beginning in 2013, Watson, while a USAID contracting officer, agreed with Britt to receive bribes in exchange for using Watson’s influence to award contracts to Apprio. As a certified small business under the SBA 8(a) contracting program, which helps socially and economically disadvantaged businesses, Apprio could access lucrative federal contracting opportunities through set-asides and sole-source contracts exclusively available to eligible contractors without a competitive bid process.

Vistant was a subcontractor to Apprio on one of the contracts awarded through Watson’s influence. After Apprio graduated from the SBA 8(a) program and it was no longer eligible to be a prime contractor for new contracts with USAID under this program, the scheme shifted so that Vistant became the prime contractor and Apprio became the subcontractor on USAID contracts awarded through Watson’s influence between 2018 and 2022.

During the scheme, Britt and Barnes paid bribes to Watson that were often concealed by passing them through Young, who was the president of another subcontractor to Apprio and Vistant. Britt and Barnes also regularly funneled bribes to Watson, including cash, laptops, thousands of dollars in tickets to a suite at an NBA game, a country club wedding, downpayments on two residential mortgages, cellular phones, and jobs for relatives. The bribes were also often concealed through electronic bank transfers falsely listing Watson on payroll, incorporated shell companies, and false invoices. Watson is alleged to have received bribes valued at more than approximately $1 million as part of the scheme.

In exchange for the bribe payments, Watson influenced the award of contracts to Apprio and Vistant by manipulating the procurement process at USAID through various means, including recommending their companies to other USAID decisionmakers for non-competitive contract awards, disclosing sensitive procurement information during the competitive bidding process, providing positive performance evaluations to a government agency, and approving decisions on the contracts, such as increased funding and a security clearance.

Apprio and Vistant also agreed to resolve concurrently with the Justice Department in its separate Civil False Claims Act investigations relating to the bribery scheme.

Overview of Vistant Securities Fraud Scheme

According to court documents, in 2022, Barnes and Watson defrauded a licensed small business investment company (SBIC), in furtherance of the bribery scheme, by inducing it into executing a credit agreement with Vistant. Through the credit agreement, Barnes caused Vistant to issue stock warrants that, if exercised, would result in the SBIC having a 40% equity stake in Vistant. The credit agreement also provided for a $14 million loan to Vistant from which Barnes could pay himself a $10 million dividend. Prior to executing the credit agreement, Watson agreed at Barnes’s request to speak with the SBIC about Vistant’s performance as a government contractor on USAID contracts. When speaking with the SBIC, Watson omitted that Barnes had bribed Watson to obtain USAID contracts for years. Watson’s endorsement of Vistant thereafter induced the SBIC to enter into the credit agreement with Barnes.

Overview of Apprio Securities Fraud Scheme

According to court documents, in 2023, Apprio, acting through Britt, engaged in a scheme in which Apprio fraudulently induced a private equity firm, which had an investment pool that was licensed as a SBIC, to purchase from Apprio’s parent company a 20% equity stake in the company for $4 million and simultaneously extend it a $4 million loan secured by shares of Apprio stock. In addition to making false material representations in the stock purchase and loan agreements, Britt intentionally omitted during his negotiations the material fact that he had bribed Watson for years, which was intended to deceive and induce the private equity company into executing the agreements.

Deferred Prosecution Agreements with Apprio and Vistant

The Justice Department reached its resolution with Apprio based on several factors, including Apprio’s credit for clearly accepting responsibility for its criminal conduct, fully cooperating in the investigation and engaging in timely remedial measures. Based on these factors, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable Guidelines fine range pursuant to the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP). According to court documents, Apprio agreed that the appropriate criminal penalty based on the law and facts in its case is $51,673,185; however, Apprio also met its burden of establishing an inability to pay the criminal penalty sought. Based on the Justice Department’s independent analysis, it determined that paying a criminal penalty and civil settlement greater than $500,000 would substantially threaten the continued viability of Apprio. Accordingly, the Justice Department determined that the appropriate resolution of this case is a DPA and a payment of $500,000 in a civil settlement.

Similarly, the Justice Department reached its resolution with Vistant based on a number of factors, including Vistant’s credit for clearly accepting responsibility for its criminal conduct and cooperating with the investigation. Although Vistant’s cooperation was initially delayed and limited, Vistant began to fully cooperate thereafter. Vistant also received credit for engaging in timely remedial measures. Based on these factors, the penalty calculated under the Guidelines reflects a 5% reduction off the bottom of the applicable Guidelines fine range pursuant to the CEP. Vistant agreed that the appropriate criminal penalty based on the law and facts in its case is $86,407,740; however, Vistant also met its burden of establishing an inability to pay the criminal penalty sought. Based on the Justice Department’s independent analysis, it determined that paying a criminal penalty and civil settlement greater than $100,000 would substantially threaten the continued viability of Vistant. Accordingly, the Justice Department determined that the appropriate resolution of this case is a DPA and a payment of $100,000 in a civil settlement.

Watson is scheduled to be sentenced on Oct. 6, and faces a maximum penalty of 15 years in prison. Young is scheduled to be sentenced on Sept. 3 and faces a maximum penalty of five years in prison. Britt is scheduled to be sentenced on July 28 and faces a maximum penalty of five years in prison. Barnes is scheduled to be sentenced on Oct. 14 and faces a maximum penalty of five years in prison.

The FBI, USAID-OIG, and IRS-CI are investigating the cases.

Trial Attorneys Matt Kahn and Brandon Burkart of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrick D. Kibbe for the District of Maryland are prosecuting the cases. 

Source: United States Department of Justice Criminal Division

A California physician was sentenced today in Los Angeles to 54 months in prison for health care fraud arising from her false home health certifications and related fraudulent billings to Medicare. She is a fugitive and was sentenced in absentia.

According to court documents, Lilit Gagikovna Baltaian, 61, of Porter Ranch, was a physician licensed to practice in California and an enrolled Medicare provider. From approximately January 2012 to July 2018, she falsely certified patients to receive home health care from at least four Los Angeles area home health agencies. These certifications were used by the home health agencies to fraudulently bill Medicare. In some instances, Baltaian pre-signed blank, undated physician certification forms knowing that the home health agencies would falsify the forms to make appear that she had seen the Medicare beneficiaries and made clinical findings to support the need for home health care, when she had done neither. Baltaian received cash payments related to these referrals and also separately billed Medicare for signing the fraudulent certifications.

Between January 2012 and July 2018, four home health agencies used Baltaian’s false certifications to submit fraudulent claims to Medicare, resulting in loss to the government estimated at $1,497,159.64.

Baltaian pleaded guilty to one count of health care fraud on Nov. 21, 2024. At sentencing, she was also ordered to pay $1,497,159.64 in restitution.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Bilal A. Essayli for the Central District of California, 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.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section is prosecuting the case.

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 nine 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 Criminal Division

WASHINGTON — A Tennessee man was sentenced yesterday in the Western District of Kentucky for sex trafficking by force, fraud, or coercion; conspiracy to commit sex trafficking; obstructing a sex trafficking investigation; interstate transportation for prostitution; and possession of a firearm by a prohibited person.  Portier Q. Govan, 37, of Memphis, was sentenced to 25 years in prison and 10 years of supervised release after a jury found Govan guilty in December 2024.

Evidence presented during the trial established that Govan and his co-defendant, Brittany R. Howard, 25, of Bowling Green, Kentucky, recruited and enticed the victim to engage in commercial sex by preying on her young age and financial situation, and by making false promises of easy money.  To establish his control over the victim, Govan threatened to kill her by pressing a pistol against her head while she was in the front passenger seat of a car, and then lowered and discharged the gun, firing a bullet across her lap and missing her body by inches. Govan also showed her a video of himself torturing a defenseless man tied to a chair. He sexually assaulted her and compelled her to engage in commercial sex acts for his profit by making her fear for her life.

“The defendant used brazen acts of violence to compel the 18-year-old victim to engage in commercial sex, even holding a gun to the victim’s head,” said Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division. “This significant sentence reflects the severity of the defendant’s conduct and sends a clear message that the DOJ will relentlessly prosecute and hold accountable human traffickers who abuse and exploit others for financial gain.”

The FBI Louisville Field Office, Bowling Green Resident Agency investigated the case, with assistance from the Bowling Green Police Department.

“This sentence is the culmination of a tremendous joint effort between the Bowling Green Police Department and the FBI’s Bowling Green Resident Agency,” said U.S. Attorney for the Western District of Kentucky Kyle G. Bumgarner. “Thanks to their efforts, Portier Govan will spend a significant portion of his adult life in federal penitentiary for his depraved conduct. While his sentence is lengthy, there is no sentence that sufficiently remedies the trauma he inflicted on his victim—who will continue to have unwavering support from our office”

“Depriving an innocent victim of their civil rights by violently forcing them to engage in commercial sex is unconscionable,” said Acting Special Agent in Charge Olivia Olson of the FBI Louisville Field Office. “Today’s sentence reflects the seriousness of Portier Govan’s criminal activity. The FBI, in collaboration with our state and local law enforcement partners, will never stop working to identify and hold accountable violent criminals and to help victims receive the support needed as they recover from significant trauma.”

Assistant U.S. Attorney Madison Sewell for the Western District of Kentucky and Trial Attorney Francisco Zornosa of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking

Source: United States Department of Justice Criminal Division

WASHINGTON – On Thursday, the United States filed a complaint against the State of New York, challenging state policies that blocked immigration officials from arresting individuals at or near New York courthouses. Specifically, the complaint challenges a law, called the Protect Our Courts Act, that purposefully shields dangerous aliens from being lawfully detained at or on their way to or from a courthouse and imposes criminal liability for violations of the shield. This law and accompanying polices violate the Supremacy Clause of the U.S. Constitution because they obstruct the execution of federal immigration authorities.

“Lawless sanctuary city policies are the root cause of the violence that Americans have seen in California, and New York State is similarly employing sanctuary city policies to prevent illegal aliens from apprehension,” said Attorney General Pamela Bondi. “This latest lawsuit in a series of sanctuary city litigation underscores the Department of Justice’s commitment to keeping Americans safe and aggressively enforcing the law.”

New York’s law comes after Executive Order 10866, Declaring a National Emergency at the Southern Border, which directs the Department of Homeland of Security to issue guidelines for the safe and effective enforcement of immigration laws around the country, specifically at or near courthouses. As is true in all types of law enforcement, conducting an arrest at or near a courthouse often reduced the risk of flight and potential safety risks to the public, law enforcement officers, and targets themselves due to the enhanced security screenings in place at courthouses. New York’s law runs counter to common sense and endangers communities by eliminating safe places for law enforcement officers to act.

As explained in the complaint, filed by newly confirmed Assistant Attorney General Brett Shumate, “Through these enactments, New York obstructs federal law enforcement and facilitates the evasion of federal law by dangerous criminals, notwithstanding federal agents’ statutory mandate to detain and remove illegal aliens.”

This is the latest in several lawsuits the Department of Justice has filed challenging state interference with immigration enforcement. In May, the Department sued several New Jersey cities who had enacted sanctuary policies.

Read the full complaint HERE.

Source: United States Department of Justice Criminal Division

A Virginia man was sentenced today to 33 years in prison for transporting a teenager across state lines with the intent to sexually abuse her.

According to court documents, in 2022, Daniel Wayne Kidd, 50, of Powhatan, spent thousands of dollars to entice a teenage girl to come to Virginia so that he could sexually abuse her over the course of a week. Kidd and his co-defendant, Rosalinda Delgado Rosas, schemed to obtain custody of the minor in order to ply her with expensive gifts and experiences and coerce her into engaging in sexual acts with Kidd. Prior to the nightly sexual abuse acts, the minor was given medications, including medications that made her drowsy. Kidd and Rosas also recorded Kidd’s sexual abuse of the minor. Rosas was sentenced on Sept. 4, 2024, to 25 years in prison for her role in the scheme.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Acting Special Agent in Charge Christopher Heck of Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) Washington made the announcement.

ICE-HSI investigated the case with the assistance of the Powhatan Sheriff’s Office.

Trial Attorney Alicia A. Bove of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Heather H. Mansfield for the Eastern District of Virginia prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Source: United States Department of Justice

A federal grand jury in Miami returned an indictment today charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for orchestrating a scheme to defraud the U.S. Department of Defense and other federal agencies by submitting altered and fake invoices to U.S. Navy ships and other vessels through the SEA Card Program, which allows U.S. vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over $5 million dollars in payments for phony expenses that Butler had not incurred. These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Investigating complex fraud schemes which impact U.S. Coast Guard operations is a priority for CGIS,” said Special Agent in Charge Josh Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office. “CGIS remains committed to working with our law enforcement partners to investigate any fraud which undermines the integrity of the Coast Guard’s supply chain.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Assistant Chief Sara Clingan and Trial Attorney Jonathan Pomeranz and of the Antitrust Division’s Washington Criminal Section are prosecuting the case.

The NCIS and CGIS are investigating the case.

Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Source: United States Department of Justice Criminal Division

Carlos Martinez, 39, of Mission, Texas, was sentenced today to 11 years in prison and a fine of $2 million for his conduct in a long-running and violent conspiracy to monopolize the transmigrante forwarding agency (TFA) industry in the Los Indios, Texas, border region. Martinez and his co-defendants controlled the TFA industry through monopolization and extortion of competitors.

Transmigrantes transport used vehicles and other goods from the United States through Mexico for resale across Central America. There are only a few locations where transmigrantes are permitted to cross from the United States into Mexico, one of those being the Los Indios Bridge in Texas. TFAs are U.S.-based businesses that provide services to transmigrante clients, including helping clients complete the customs paperwork required to export vehicles into Mexico. According to court documents and statements made in court, Martinez and his co-defendants fixed prices for TFA services and created a centralized entity known as “The Pool” to collect and divide revenues among the conspirators, limit competition from other agencies, and increase prices for their services.

“The defendants exploited hardworking professionals in the freight forwarding business using extortion and illegal price-fixing schemes to manipulate the market and inflate the cost of moving goods,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The lead defendant’s 11-year prison sentence reflects the serious economic harm inflicted on the business community along the southern border. The Criminal Division will continue to pursue and prosecute those who threaten fair competition and the integrity of our markets.”

“Today’s sentence reflects the significant danger and harm the American people face from violent and extortive actions aimed at fixing prices and monopolizing the market for essential services in the Texas border region,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to aggressively pursue violent criminals who aim to corrupt America’s free markets and advocate for their incarceration.”

“Price fixing is not a victimless crime; it harms customers in the form of artificially high prices. Consumers need to have faith that the prices they pay are fairly determined by the market, rather than the product of illegal collusion,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “The 11-year sentence Mr. Martinez received reflects the size and scope of his criminal operation, as well as his leadership role in organizing and facilitating the unlawful scheme.”  

“All of these defendants used their positions with the TFA to extort hardworking individuals who relied on these services to support their families and livelihood,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “The FBI is committed to dismantling criminal enterprises that prey on vulnerable communities, and today’s sentencing sends a clear message that those who abuse systems will be found, stopped and brought to justice.”

“This case underscores the serious threat posed by transnational criminal networks operating at our borders,” said Special Agent in Charge Craig Larrabee of Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Antonio. “Carlos Martinez and his co-conspirators orchestrated a violent scheme that extorted small businesses, fixed prices, and laundered millions of dollars — all while threatening the safety and integrity of lawful commerce. HSI will continue to aggressively pursue those who exploit legitimate industries through corruption and intimidation, and we remain steadfast in our mission to protect our communities and our economy.”

Individuals in the industry who were not part of the conspiracy were forced to join and pay into The Pool or face financial and violent consequences. Martinez and other members enforced the rules by monitoring whether forwarding agencies were charging the agreed-upon prices and whether the forwarder was making payments to The Pool.  

Martinez and some of his co-defendants also conspired to force forwarding agencies to pay other extortion fees, including a “piso” for every transaction processed as well as a “fine” for operating in the market outside of Pool rules. Martinez and his co-defendants intimidated, coerced, and used threats and acts of violence in furtherance of the antitrust and extortion conspiracies.

Martinez was responsible for collecting at least $9.5M in extortion payments. Cash obtained from the extortions was laundered through bank accounts controlled by Martinez and his family, with the cash deposits disguised to hide the nature, source, ownership, and control of the dirty money.

Martinez is the son-in-law of the former leader of the Gulf Cartel in Mexico, a violent criminal syndicate that operates at the U.S.-Mexico border and elsewhere. Martinez took control of  Los Indios Bridge and employed individuals who worked to track TFA transactions to calculate the piso owed by each forwarding agency. Pool and piso payments were made in cash to the individuals working for Martinez. Martinez ordered disciplinary actions against those operating in the transmigrante market without permission, those who violated Pool rules, those who did not charge the fixed prices, and those who did not pay the piso. Disciplinary actions could include clients not being allowed to cross Los Indios Bridge, cars being stolen, or more serious repercussions such as kidnappings, beatings, firebombings, shootings, and murder.

Carlos Martinez pleaded guilty in February  to conspiracy to illegally fix prices and allocate the market for TFA services, conspiracy to monopolize the transmigrante market, conspiracy to interfere with commerce by extortion, interference with commerce by extortion, and money laundering conspiracy. The government will also seek forfeiture of at least one house, luxury vehicles, a boat, and expensive watches.

Prior to Martinez’s sentencing, his co-defendants were sentenced as follows:

Carlos Yzaguirre, 66, of McAllen, Texas, was sentenced to two years in prison, after pleading guilty to conspiracy to interfere with commerce by extortion.

Sandra Guerra Medina, 70, of Rancho Viejo, Texas, was sentenced to eight months of home detention, after pleading guilty to conspiracy to illegally fix prices and allocate the market for TFA services and conspiracy to monopolize the transmigrante market.

Juan Hector Ramirez Avila, 59, a citizen of Mexico, was sentenced to time served, after pleading guilty to one count of structuring a financial transaction to evade reporting requirements.

Jose Tapia, Mireya Miranda, Pedro Calvillo and Roberto Garcia Villarreal pleaded guilty and are awaiting sentencing. Three other defendants, Rigoberto Brown, Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto, were also charged in the superseding indictment and remain fugitives.

The Court will determine the final restitution amount owed to victims of the conspiracies at a hearing set for Sept. 3, 2025. 

Immigration and Customs Enforcement Homeland Security Investigations and the FBI investigated the case.

Trial Attorney Christina Taylor of the Criminal Division’s Violent Crime and Racketeering Section; Senior Litigation Attorney John Davis and Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the of the Antitrust Division; and Assistant U.S. Attorney Alexander L. Alum for the Southern District of Texas prosecuted the case.

Anyone with information in connection with this investigation should contact the HSI Tip Line at 866-347-2423; the FBI Tipline at tips.fbi.gov, or by contacting the FBI San Antonio Field Office at 210-225-6741; or the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Source: United States Department of Justice Criminal Division

Sessions to Discuss Generic and Biosimilar Availability, Prescription Drug Formularies and Benefits, and Regulatory Barriers