Source: United States Department of Justice Criminal Division
U.S. Attorney Michael DiGiacomo announced today that the Genesee Valley Club has agreed to pay $1,050,000 to resolve allegations that it improperly obtained a Paycheck Protection Program (PPP) loan from the U.S. Small Business Administration (SBA), which it was not eligible to receive. This action is part of the Trump Administration’s Task Force to Eliminate Fraud.
Source: United States Department of Justice Criminal Division
Baltimore, Maryland – A Maryland woman received a federal-prison term in connection with her role in a multi-million-dollar money laundering scheme. Judge Matthew J. Maddox sentenced Fatoumata Boiro, 32, of Largo, to two years in prison, followed by two years of supervised release, for conspiring to engage in a large, multi-member, money laundering conspiracy.
Source: United States Department of Justice Criminal Division
Deirdre Walsh, the former Chief Operating Officer of the Office of the Director of National Intelligence (ODNI), has agreed to pay $20,000 to resolve allegations that she violated post-government employment restrictions during the one-year cooling off period after she left the ODNI.
“The U.S. Department of Justice is committed to enforcing the restrictions imposed on officers and employees of the Executive Branch after they leave the government, especially those who held senior positions, in order to protect the integrity of the Executive Branch,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This resolution should work to deter individuals from attempting to exert undue influence on their former agency.”
“The collaboration between our IC OIG investigators and Department of Justice partners on this case exemplifies effective interagency oversight,” said Intelligence Community Inspector General Christopher Fox. “This outcome reinforces the critical importance of working across agency boundaries to strengthen national security. Regardless of position or title, we will hold people accountable.”
The United States alleged that within the first year after leaving employment at the ODNI, Walsh contacted an ODNI employee on behalf of her employer, a government contractor, regarding a request for equitable adjustment (REA) valued at approximately $18 million. Her employer’s senior leadership had identified Walsh as part of a “pressure campaign” in connection with the REA on or around the same day that Walsh contacted the ODNI employee. This conduct violated Walsh’s post-government employment restrictions under 18 U.S.C. § 207(c), which prohibits any former senior officer or employee of the Executive Branch from knowingly making, within one year of her termination and with the intent to influence, any communication to or appearance before any officer or employee of the department or agency in which she served within one year before such termination, on behalf of any other person, in connection with any matter on which she seeks official action by any officer or employee of such department or agency. Under 18 U.S.C. § 216(b), a person who violates Section 208 is liable for a civil monetary penalty, and Walsh has agreed to pay a $20,000 civil penalty to resolve the allegations that her conduct violated her post-government employment restrictions.
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 Intelligence Community Office of the Inspector General.
The matter was handled by Trial Attorney Robin Overby of the Civil Division.
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
Jacksonville, Florida – Ignatio Mateos-Herrera (33, Mexico) has been charged by federal indictment with illegal reentry into the United States by a previously deported alien. If convicted, Mateos-Herrera faces up to two years in federal prison and subsequent deportation and removal from the United States.
Source: United States Department of Justice
Jacksonville, Florida – Ignatio Mateos-Herrera (33, Mexico) has been charged by federal indictment with illegal reentry into the United States by a previously deported alien. If convicted, Mateos-Herrera faces up to two years in federal prison and subsequent deportation and removal from the United States.
Source: United States Department of Justice Criminal Division
Greenbelt, Maryland – A federal judge sentenced a former Anne Arundel County police officer for his role in an auto-insurance fraud scheme. Judge Lydia Griggsby sentenced Jaron Earl Taylor, 32, of Ft. Washington, Maryland, to three years of probation, with the first five months served on home detention, for conspiracy to commit wire fraud. Judge Griggsby also ordered Taylor to pay $38,670 in restitution to the United States Automobile Association.
Source: United States Department of Justice Criminal Division
Company Agrees to Pay More than $26.8M Civil Penalty, Complete Estimated $40M in Work to Prevent Future Discharges, and Pay State of Kansas $3 Million
The Justice Department, on behalf of the Environmental Protection Agency (EPA) and State of Kansas, today filed a complaint and proposed consent decree to resolve allegations that South Bow (USA) LP and South Bow Infrastructure Operations Inc. — the owner and operator of the Keystone Pipeline — violated the Clean Water Act related to the 2022 rupture of the Keystone Pipeline in Washington County, Kansas.
On Dec. 7, 2022, nearly 13,000 barrels of oil (approximately 543,000 gallons) leaked from the ruptured pipeline over land and into Mill Creek, creating an imminent and substantial threat to human health and the environment. The event was one of the largest inland oil spills in recent history, and the largest discharge ever from the Keystone Pipeline system.
As part of the settlement, South Bow has agreed to pay a civil penalty of $26,867,789 and complete work designed to prevent future similar discharges, which South Bow estimates will cost approximately $40 million. South Bow has also agreed to contribute over $3 million to the state of Kansas towards natural resource restoration projects to resolve violations of Kansas state laws.
“Pipelines are the safest means of transporting large quantities of oil and other liquids and gases over long distances,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “However rare, when a pipeline leaks, it can quickly escalate. That’s why an important part of this proposed settlement is the work the company has committed to do to help prevent future leaks.”
“This case demonstrates why the oil pipelines crossing our heartland must be maintained properly. The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” said Assistant Administrator Jeffrey A. Hall for EPA’s Office of Enforcement and Compliance Assurance. “The substantial penalty reflects the seriousness of the environmental harm, and the other requirements of the settlement reflect the need to prioritize pipeline integrity and maintenance for this critical infrastructure.”
“It is important that we are all good stewards of the environment,” said U.S. Attorney Ryan A. Kriegshauser for the District of Kansas. “The incident had a massive impact on the State of Kansas, and we are happy that this settlement will mitigate that damage.”
“Dedicated EPA staff logged many thousands of hours cleaning up Mill Creek and were supported by multiple federal and state agencies,” said Administrator Jim Macy of EPA Region 7. “This fair and comprehensive settlement represents a federal-state partnership commitment to protect our nation’s waters and prevent future oil spills.”
According to the complaint, after the 2022 spill, crude oil an inch thick covered Mill Creek bank-to-bank for 3.5 miles downstream of the rupture site. The Kansas Department of Health and Environment issued a stream advisory for Mill Creek to prohibit contact with the creek by people, livestock, or pets. The discharge covered vegetation and soil in the immediately surrounding area, and oil residue was found in the 35 acres surrounding the discharge. The spill killed or impacted more than 2,700 animals.
Following a 2023 EPA cleanup order, South Bow removed oil from the creek and surrounding areas and completed restoration of aquatic habitat, stream banks, and shorelines.
The Keystone Pipeline is a 2,687-mile liquid oil pipeline system between Hardisty, Alberta, Canada, and Port Arthur, Texas. The rupture occurred in a section of the pipeline that stretches from Steele City, Nebraska, to Cushing, Oklahoma.
The consent decree was filed with the U.S. District Court for the District of Kansas and is subject to a 30-day public comment period. The complaint and proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
The Environmental Protection Agency investigated this matter. More information on the settlement is available on EPA’s South Bow Clean Water Act settlement summary: www.epa.gov/enforcement/south-bow-lp-cwa-settlement-summary.
Attorneys with ENRD’s Environmental Enforcement Section and the U.S. Attorney’s Office for the District of Kansas are handling this matter.
Source: United States Department of Justice
NEW ORLEANS, LOUISIANA – U.S. Attorney David I. Courcelle announced today a bill of information charging RACHEL CRAWFORD, a/k/a “Rachel Davenport,” a/k/a “Rachel Monjure,” a/k/a “Rachel Haygood,” age 47, of Ponchatoula, with Theft from an Organization Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). CRAWFORD was charged on July 8, 2026.
Source: United States Department of Justice Criminal Division
Tallahassee, Florida – Michael Dontavious James, 34, of Marianna, Florida, has been indicted in federal court on one count of possession of a controlled substance with intent to distribute, one count of possession of a firearm in furtherance of a drug trafficking offense, and possession of a firearm by a convicted felon.
Source: United States Department of Justice Criminal Division
The final defendant in a drug trafficking operation that stretched from Cleveland, Ohio, to the Ohio Valley was sentenced today, U.S. Attorney Matthew L. Harvey announced. Joshua Carney, 32, of Wheeling, West Virginia, was sentenced to 60 months in prison for conspiracy to distribute and possess with intent to distribute cocaine base, fentanyl, and heroin and the distribution of 5 grams or more of methamphetamine within 1,000 feet of a protected location.