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Source: United States Department of Justice Criminal Division

A former senior executive of a Michigan asphalt paving company was sentenced yesterday to six months in prison and a $500,000 fine for his role in a multiyear conspiracy to rig bids for asphalt paving services contracts in Michigan.

Daniel L. Israel, former president of Pontiac-based Asphalt Specialists LLC (ASI), pleaded guilty in October 2023 to conspiring with Al’s Asphalt Paving Company Inc. (Al’s Asphalt), and employees from those companies, to rig bids in each other’s favor. Israel is one of seven individuals that have been charged as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry. Three companies also have been charged as part of the investigation, which to date has resulted in over $8.2 million in criminal fines.

“Economic crime — like bid rigging — is no less harmful than violent crime,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “Both inflict deep, lasting harm on our communities and disenfranchise those who believe in the American dream. As the defendant admitted, he conspired to eliminate competition to further enrich himself and his accomplices. The Antitrust Division and its law enforcement partners will continue to ensure that individuals who cheat and deprive the public of the benefits of competition are incarcerated.”

“This sentencing marks an important milestone in holding accountable those responsible for this flagrant bid rigging scheme,” said Special Agent in Charge Anthony Licari of the U.S. Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region. “We remain committed to working closely with our law enforcement and prosecutorial partners to investigate and prosecute individuals who undermine fair competition and violate federal antitrust laws.”

According to court documents, the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators already had decided among themselves who would win the contracts. Israel participated in the conspiracy from March 2013 through November 2018.

Israel’s former employer, ASI, and another former ASI executive also pleaded guilty in January 2024 for their participation in the conspiracy with Al’s Asphalt. Al’s Asphalt and two of its executives previously pleaded guilty in January and October 2024 for their participation in the conspiracy. ASI was sentenced in August 2024 to pay a fine of $6,500,000.

The Antitrust Division’s Chicago Office, DOT-OIG, and U.S. Postal Service Office of Inspector General investigated the case

The Antitrust Division’s Chicago Office is prosecuting the case.

Anyone with information in connection with this investigation should contact 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

A Colorado man was sentenced today to 210 years in prison for sexually abusing numerous children at the orphanage he founded and directed in Haiti.

According to court documents and evidence presented at trial, Michael Karl Geilenfeld, 73, most recently of Littleton, founded St. Joseph’s Home for Boys — a home for orphaned, impoverished, and otherwise vulnerable children in Haiti — in 1985 and operated it for more than two decades. During this time, Geilenfeld repeatedly traveled from the United States to Haiti, where he sexually abused the boys entrusted to his care. He also physically and emotionally abused the children in the home, including through physical assault and other forms of punishment.

In February 2025, a federal jury convicted Geilenfeld of one count of traveling in foreign commerce for the purpose of engaging in illicit sexual conduct and six counts of engaging in illicit sexual conduct in a foreign place between 2005 and 2010. Each of the six counts of engaging in illicit sexual conduct relates to a separate victim who was a child at the time of the offense.

At trial, these six victims testified about the sexual abuse they suffered at the hands of Geilenfeld and the devastating impact it had on them, as did other victims — now adults — who were not the subject of the charged offenses. Victims and witnesses also described the physical abuse Geilenfeld inflicted on his victims and the manipulation that he employed to keep his operation running and financially supported by others.

“The defendant’s sustained sexual, physical, and emotional abuse of some of the most vulnerable children in the world is intolerable,” said Matthew Galeotti, Head of the Justice Department’s Criminal Division. “This prosecution demonstrates the Department’s commitment to securing justice for children harmed by criminals who travel abroad from the United States to commit their crimes. We thank our partners for working with us to ensure that the defendant can never harm another child.”

“This sentencing marks the end of a case built on the courage of survivors and the dedication of investigators,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “For decades, Geilenfeld used his position of trust and access to exploit vulnerable children under the guise of humanitarian work. We are grateful to those victims who came forward to report their abuse. The FBI is committed to pursuing those who commit crimes against children no matter where they occur or how long ago they were committed.”

U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) and FBI investigated the case.

Trial Attorneys Jessica L. Urban and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Lacee Monk for the Southern District of Florida prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Source: United States Department of Justice Criminal Division

A Hawaii woman pleaded guilty yesterday to defrauding her mortgage lender and conspiring to defraud the IRS by fraudulently obtaining a tax refund and then thwarting the IRS’ efforts to recoup it.

The following is according to court documents and statements made in court: Hannah Heart, of Honolulu, conspired with others to file a false 2014 individual income tax return in her name. As part of the conspiracy, Heart’s co-conspirators created a fake tax form purportedly issued by a mortgage lender to Heart, which she attached to her return. The form falsely reported that Heart had received income from a financial institution of more than $2.4 million, from which over $1.2 million in taxes had been withheld. As a result, Heart filed a tax return that falsely claimed she was entitled to a $464,904 refund, which the IRS paid.

When the IRS began trying to collect the fraudulent refund from Heart, she took several steps to thwart the IRS. For example, Heart deposited the refund check into a trust bank account and immediately transferred most of the balance to a separate bank account, both of which she controlled. She also sent numerous false, fraudulent, and frivolous letters to the IRS in response to IRS communications.

In addition, Heart helped another co-conspirator defraud the IRS using the same scheme. Heart and her co-conspirator deposited a second fraudulently obtained $1 million refund check from the IRS, payable to the co-conspirator.

In total, Heart caused a tax loss to the IRS of $1,618,985.54.

Heart also defrauded her mortgage lender, conspiring with others to do so. Heart took out a mortgage for her home in 2006 and stopped making payments in 2010 toward her mortgage. The mortgage lender initiated foreclosure proceedings in 2022 against Heart. In response, a co-conspirator sent the lender a fictitious document purporting to be a check for the full amount due for Heart’s mortgage. The lender initially accepted the check but later rejected it as fraudulent. Afterwards, Heart sent mail to the lender demanding that it accept the fraudulent check as full payment of her remaining balance.

In total, Heart intended to defraud the mortgage lender of $2,066,522.22.

Heart will be sentenced at a later date. She faces a maximum penalty of 20 years in prison on the charge of mail fraud and a maximum penalty of five years in prison for the charge of conspiracy to defraud the IRS. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Kenneth M. Sorenson for the District of Hawaii made the announcement.

IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and FBI are investigating the case.

Trial Attorneys Sarah Kiewlicz and Megan Jones of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.

Source: United States Department of Justice Criminal Division

Five individuals were charged in a 19-count indictment yesterday for their participation in a scheme to trade securities on the basis of material nonpublic information about the merger between two companies that resulted in profits of over $600,000.

According to court documents, between May and June 2023, Rouzbeh “Ross” Haghighat, 61, of West Newbury, Massachusetts, Behrouz “Bruce” Haghighat, 60, of Laguna Niguel, California, Kirstyn Pearl, 35, of Aguadilla, Puerto Rico, Seyedfarbod “Fabio” Sabzevari, 31, of North Hollywood, California, and James Roberge, 70, of Westford, Massachusetts, allegedly profited more than $600,000 by unlawfully purchasing the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Ross Haghighat served as a director. As alleged, the defendants traded securities based on material nonpublic information about another pharmaceutical company’s (Company-2) proposed acquisition of Company-1. The indictment alleges that, in May 2023, Company-2 made a confidential proposal to acquire Company-1 at a price per share above the then current market value. The two companies then negotiated an agreement for the acquisition, which was announced in June 2023, causing the share price to spike.

“The defendants were charged yesterday for allegedly trading on inside information and reaping hundreds of thousands in illicit profits,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Securities fraud and insider trading distort our financial markets and disadvantage Americans who play by the rules. These charges demonstrate that the Criminal Division is committed to maintaining the integrity of markets by holding accountable all those who defraud investors.”

“Our office is committed to protecting the integrity of the market and holding accountable those who attempt to gain unfair advantages through trading on insider information,” said U.S. Attorney Alina Habba for the District of New Jersey.

“This case makes one thing clear: if you think you can game the system using insider information, think again,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group. “Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday’s indictment proves no one is above the law. The U.S. Postal Inspection Service will not hesitate to pursue and bring to justice anyone who tries to corrupt the integrity of our financial markets.”

In his position as a director on the board of Company-1, Ross Haghighat allegedly obtained material nonpublic inside information about its acquisition, including sensitive deal terms. He then purchased securities, and tipped others — including Bruce Haghighat, Pearl, Sabzevari, and Roberge — for personal benefit with the expectation that they would purchase securities, which the defendants allegedly did.

Ross Haghighat was charged with one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. He was previously charged with one count of conspiracy to commit insider trading.

Bruce Haghighat was charged with one count of securities fraud, one count of insider trading, and one count of conspiracy. 

Pearl was charged with one count of securities fraud, one count of insider trading, and one count of conspiracy.

Sabzevari and Roberge were both charged with one count of securities fraud and seven counts of insider trading.

If convicted, the defendants face a maximum penalty of 25 years in prison on the securities fraud charge and 20 years in prison on each of the insider-trading charges. If convicted of conspiracy, Ross Haghighat, Bruce Haghighat, and Pearl face a maximum penalty of 25 years in prison.

The U.S. Postal Inspection Service is investigating the case.

Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Mezzanotte for the District of New Jersey are prosecuting the case.

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

Source: US FBI

“There is no conclusion to where these girls might’ve ended up,” Park said. “Our hope’s we find these girls alive somewhere.”

The girls’ disappearance has profoundly impacted Faloma and Maleina’s families and community, investigators said. “They left a big hole in a lot of people’s hearts, left a lot of questions unanswered,” Park said.

The incident also shattered Saipan’s reputation for being a safe place for children to roam. “It’s a very loving community, and that is why it was so detrimental when this occurred, because that safety was snatched from the community,” said FBI Special Agent Rick Bauer, who’s currently leading this case for FBI Honolulu. “That’s just another reason to drive us and the law enforcement—and the community—to get answers.”

Looking for clues on the ‘coconut wire’

Investigators say additional clues in this case may come from across an ocean.

A large number of Micronesians have migrated to the continental United States—mainly to the Pacific Northwest, but also to states like Idaho and Texas. Since the Micronesian community’s bonds are strong, a steady flow of individuals in the diaspora travel home to attend annual community events. Likewise, Saipan residents frequently travel to the continental U.S. to visit friends and loved ones.

Chatter between current and former Saipan residents naturally ensues—a phenomenon Park said is known as the “coconut wire.” And, he said, “news travels fast.” For this reason, the FBI is also asking anyone who might’ve heard information about Faloma and Maleina’s whereabouts through the grapevine—on either side of the Pacific Ocean—to come forward.

“We want to reach out to those Micronesians that might have been here during that time or heard something,” he said. “We want to see if they want to come forward, help us, help the family, bring closure, or give us some evidence that we can use.”

If you have any information about Faloma and Maleina’s whereabouts or what might’ve happened to them—even if you’ve already spoken with law enforcement about the case—we encourage you to contact the FBI.

You can submit tips by phone at 1-800-CALL-FBI (1-800-225-5324) or online at tips.fbi.gov. Tips may be shared anonymously, and no detail is too small to potentially help investigators solve this case.

“We believe there are people out there that know something,” Bauer said. “No matter how big or how little it may be, it could be something that law enforcement can use in solving this mystery.”