Justice Department Sues Six Additional States for Failure to Provide Voter Registration Rolls

Source: United States Department of Justice Criminal Division

WASHINGTON – Today, the Justice Department’s Civil Rights Division announced it has filed federal lawsuits against six states — Delaware, Maryland, New Mexico, Rhode Island, Vermont, and Washington — for failure to produce their statewide voter registration lists upon request.

“Accurate voter rolls are the cornerstone of fair and free elections, and too many states have fallen into a pattern of noncompliance with basic voter roll maintenance,” said Attorney General Pamela Bondi. “The Department of Justice will continue filing proactive election integrity litigation until states comply with basic election safeguards.”

“Our federal elections laws ensure every American citizen may vote freely and fairly,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “States that continue to defy federal voting laws interfere with our mission of ensuring that Americans have accurate voter lists as they go to the polls, that every vote counts equally, and that all voters have confidence in election results. At this Department of Justice, we will not stand for this open defiance of federal civil rights laws.”

According to the lawsuits, the Attorney General is uniquely charged by Congress with the enforcement of the National Voter Registration Act (NVRA) and the Help America Vote Act (HAVA), which were designed by Congress to ensure that states have proper and effective voter registration and voter list maintenance programs. The Attorney General also has the Civil Rights Act of 1960 (CRA) at her disposal to demand the production, inspection, and analysis of the statewide voter registration lists.

Justice Department Announces Seizure of Tai Chang Scam Compound Domain Used in Cryptocurrency Investment Fraud

Source: United States Department of Justice Criminal Division

The Justice Department today announced the seizure of a web domain used to target and defraud Americans through cryptocurrency investment fraud (CIF) scams. The domain, tickmilleas.com, was used by those located at the Tai Chang scam compound (also known as Casino Kosai) located in the village of Kyaukhat, Burma. This domain seizure comes less than three weeks after the Justice Department announced the launch of the District of Columbia U.S. Attorney’s Office’s (D.C. USAO) “Scam Center Strike Force” – the first District-level CIF strike force – and the seizure of two additional domains that were also used by the Tai Chang scam compound as part of CIF scams.

According to the affidavit filed in support of the domain seizure, Tai Chang is affiliated with the Burmese group, the Democratic Karen Benevolent Army (DKBA) and the Trans Asia International Holding Group Thailand Company Limited (Trans Asia), which were designated by the Department of the Treasury, among others, as specially-designated nationals (SDN) on Nov. 12 for links to Chinese organized crime and development of scam centers in Southeast Asia. The seizure announced today is part of the D.C. USAO’s Scam Center Strike Force’s efforts to combat Southeast Asia scam centers at the highest level and prevent U.S. infrastructure from being used as instrumentalities of the fraud schemes.

The seized domain was disguised as a legitimate investment platform to trick victims into unknowingly depositing their funds.  Victims who used the domain reported to the FBI that the site showed lucrative returns on what they believed to be their investments and displayed purported deposits made by scammers to the victims’ “accounts” when the scammers walked the victims through falsified trades. Despite the seized domain being registered in early November 2025, the FBI already identified multiple victims who used the domain in the last month and were scammed out of their investments.

A splashpage the tickmilleas.com website warns victims who have been directed to the domain that it has been seized by law enforcement, thereby disrupting the intended CIF scam activity and related money laundering.

According to the affidavit filed in support of the seizure, the tickmilleas.com domain directed users to download mobile applications linked to the scam from Google Play and the Apple App Store. The FBI notified Google and Apple of the fraudulent apps, and several of the applications have been voluntarily removed. Additionally, also announced today, based on information provided by the FBI about Tai Chang scam compound, Meta identified and voluntarily removed more than 2,000 accounts from their network of social media platforms.

In 2024 alone, the FBI’s Internet Crime Complaint Center (IC3) received more than 41,000 complaints reporting roughly $5.8 billion in losses from CIF scams. These CIF scams, such as the ones described by victims in the affidavit, typically begin through unsolicited outreach from strangers over dating applications, social media, messaging applications, and text messages. These strangers form close virtual relationships with their victim targets, convince them to make purported investments in or using cryptocurrency, and direct victims on how to purchase cryptocurrency and invest it using fraudulent domains and applications that appear legitimate.

U.S. Attorney Jeanine Ferris Pirro for the District of Columbia, Acting Assistant Attorney General Matthew R. Galeotti of the Department of Justice, and Special Agent in Charge Mark Dargis of the FBI San Diego Field Office made the announcement.

The FBI San Diego Field Office is investigating the case.

Trial Attorney Ethan Cantor of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and The U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

The case is the latest public action taken by the District of Columbia Scam Center Strike Force. The D.C. USAO’s Scam Center Strike Force is a collaboration of the U.S. Attorney’s Office for the District of Columbia; DOJ’s Criminal Division, including the Computer Crime & Intellectual Property Section (CCIPS), Fraud Section, and Money Laundering, Narcotics and Forfeiture Section; the Federal Bureau of Investigation; and the U.S. Secret Service. The U.S. Attorney’s Office for the District of Rhode Island is also collaborating on the initiative.  Additionally, the D.C. USAO’s Scam Center Strike Force benefits from the work of FBI agents deployed to Bangkok to investigate and combat scam compounds, including Tai Chang and other compounds in Burma.

CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector.  Since 2020, CCIPS has secured the conviction of over 180 cybercriminals, and court orders for the return of over $350 million in victim funds. 

If you have been defrauded out of your money by a cryptocurrency investment fraud scheme, please contact the FBI Internet Crime Complaint Center at ic3.gov. If you were directed to use tickmilleas.com as part of a scam, reference tickmilleas.com in your complaint.

If you have information to report about past or ongoing activity regarding the Tai Chang scam compound (coordinates 16°28’20.9″N 98°38’45.1″E and 16°28’02.1″N 98°38’54.1″E), please contact the FBI at fbisd_fraudresponse@fbi.gov

Five Members of “Greggy’s Cult” Charged with Sexually Exploiting Children on the Internet

Source: United States Department of Justice Criminal Division

The Defendants Allegedly Produced and Distributed Child Sex Abuse Materials and Extorted Minor and Adult Victims

BROOKLYN, NY – Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Hector Bermudez, Zachary Dosch, Rumaldo Valdez, David Brilhante, and Camden Rodriguez for their participation in a child exploitation enterprise, conspiracy to produce child pornography, conspiracy to receive and distribute child pornography, and conspiracy to communicate interstate threats. The defendants led an online group called “Greggy’s Cult,” whose members carried out the alleged criminal conduct on a series of Discord servers (the Target Server).  Four defendants were arrested today throughout the United States. Valdez is currently incarcerated on another federal matter.  Bermudez will be arraigned in the Eastern District of New York this afternoon and the remaining defendants will be arraigned at a later date.

United States Attorney General Pamela Bondi; Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); David Porter, Special Agent in Charge, FBI, Honolulu Field Office; and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the arrests and indictment. 

“No child should ever be terrorized or exploited online, and no online platform should give refuge to predators,” stated Attorney General Bondi. “The Department of Justice will continue to protect children, support survivors, and hold accountable anyone who preys on the vulnerable – online or offline – with every tool we have.”

“As alleged, the defendants leveraged a popular internet platform to coerce minors into creating grotesque child pornography of themselves, which the defendants distributed, and then tormented these victims with the images, not only encouraging self-harm, but also encouraging some minors to commit suicide,” stated United States Attorney Nocella.  “The defendants’ conduct, as alleged, is monstrous and will be vigorously prosecuted.  I strongly urge parents and caregivers to speak to their children about the dangers of communicating with strangers on social media and how to seek help from adults and law enforcement in these situations.” 

“These defendants are charged with the unspeakable act of coercing and blackmailing children and adults to engage in self-harm and other degrading acts,” stated Acting Assistant Attorney General Galeotti.  “As demonstrated by today’s indictment, the Criminal Division will not stand for such heinous crimes, and we will work tirelessly to bring these offenders to justice.”

“These five defendants allegedly coerced children to share videos subjecting themselves to brutal sexual abuse, while also encouraging self-harm and suicide,” stated FBI New York Assistant Director in Charge Raia.  “The defendants allegedly weaponized online gaming platforms to target unsuspecting minors and use them to satisfy the horrendous desires of a twisted group. The FBI will never cease its pursuit of those who prowl the web for innocent victims to torment and exploit in their sick games.”

“The defendants allegedly coordinated efforts to exploit minors through the creation and distribution of sexually explicit material, coerced children to commit self-harm, and extorted their victims in a variety of ways,” stated FBI Honolulu Special Agent in Charge Porter.  “The FBI will stop at nothing in its pursuit of violent predators targeting the children in our communities and will work closely with our law enforcement partners to identify and dismantle the enterprise networks responsible for these heinous acts.”

“The five individuals charged in this case allegedly used gaming and social-media platforms to target and coerce minors into sexually abusive acts, recorded that abuse, and distributed it across an online network,” stated NYPD Commissioner Tisch.  “This case underscores how easily predators can embed themselves in the digital platforms that minors use. The NYPD and our federal partners have been focused on uncovering and dismantling online groups that prey on children, and today’s indictment reflects the progress of that work.  I want to thank the NYPD investigators, the FBI, and the U.S. Attorney’s Office for their persistence and dedication to bringing these offenders to justice.”

As alleged in the indictment, between January 2020 and January 2021, the defendants participated in the production and distribution of child sexual abuse material and engaged in other forms of exploitation and harassment of both minor and adult victims.  The defendants convened on the Target Server and directed minor victims, who had joined a video call on either Discord or another video conferencing platform, to engage in sexually explicit or other degrading conduct.  The defendants captured images and videos (i.e. “screenshots” or “screen recordings”) of the sexually explicit conduct of their minor victims and shared it on the Target Server, to other Discord servers, and amongst themselves.  Greggy’s Cult came into existence before another sadistic extortion network, 764, and prominent members of 764 and other similar networks that followed were also members of Greggy’s Cult.  The defendants coerced, induced, and enticed their victims to degrade themselves by engaging in self-harm, including professing themselves as being “owned” by a member of “Greggy’s Cult” to demonstrate loyalty and writing the names of “Greggy’s Cult” members on their bodies or holding up signs their names, which is a practice referred to as “fansigning.”

The group found victims in Discord servers or on gaming platforms such as Roblox and Counter-Strike: Global Offensive. Members of Greggy’s Cult engaged in conduct such as encouraging victims to kill themselves or demanding that they insert household objects into their genitals or anus.  Greggy’s Cult also engaged in coordinated extortions of adult and minor victims through various means, including by attempting to frame adult victims as pedophiles or by sending malware to minor victims’ computers and refusing to return their access until victims complied with the group’s demands.  

The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.

If you believe you have been victimized by or have information about the defendants, please contact the FBI tip line: 1-800-CALL-FBI (1-800-225-5324).

This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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, please visit www.justice.gov/psc

The government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section.  Assistant United States Attorney Antoinette N. Rangel of the Eastern District of New York and Trial Attorney Gwendelynn Bills of the Department of Justice’s Child Exploitation and Obscenity Section,are in charge of the prosecution.

The Defendants:

HECTOR BERMUDEZ
Age:  29
Queens, New York

ZACHARY DOSCH
Age:  26
Albuquerque, New Mexico

RUMALDO VALDEZ
Age:  22
Honolulu, Hawaii

DAVID BRILHANTE
Age:  28
San Diego, California

CAMDEN RODRIGUEZ
Age:  22
Longmont, Colorado

E.D.N.Y. Docket No. 25-CR-361 (PKC) 

Bethel man sentenced to 10 years for sexually exploiting a minor to possess child pornography

Source: United States Department of Justice Criminal Division

ANCHORAGE, Alaska – A Bethel man was sentenced yesterday to 10 years in prison and will serve an additional 25 years on court mandated supervision upon release for surreptitiously sexually exploiting a minor female known to him. The 10-year sentence is the statutory maximum penalty for his crime.

According to court documents, on July 30, 2023, the mother of the minor victim contacted the local police department to report that Jesse Hadley, 33, sexually exploited the minor victim. The mother found a video on a family electronic device that showed Hadley’s face as he surreptitiously placed a camera in the bedroom of the minor victim.

Within minutes of Hadley installing the hidden camera, it recorded the minor victim enter the bedroom and captured the minor victim in a state of undress. Hadley later retrieved the hidden camera.

On June 17, 2025, Hadley pleaded guilty to one count of sexually exploiting a child to possess child pornography.

In handing down the sentence yesterday, the Court emphasized the abuse of trust Hadley exhibited in exploiting a child that he had access to, as well as his troubling history of violence against women and girls.

“Mr. Hadley, a man with a history of assault and domestic violence, continued his deplorable pattern of behavior by secretly filming and exploiting the minor victim.  His actions resulted in the statutory maximum penalty for his offense,” said U.S. Attorney Michael J. Heyman for the District of Alaska. “My office continues to prioritize protecting Alaska’s children, wherever they live. We will continue to work closely with all our law enforcement partners across the state to track down child predators and hold them accountable for their reprehensible actions.”

“Not only was Hadley’s behavior disturbing and predatory, but also an egregious abuse of trust,” said Acting Special Agent in Charge Brandon Waddle of the FBI Anchorage Field Office. “Protecting children is one of our most critical responsibilities. The FBI will continue to identify and hold accountable those who exploit our most vulnerable.”

“The Bethel Police Department is committed in efforts to investigate and combat child exploitation online, particularly in rural areas like Bethel, Alaska, where the spread of internet-related offenses can be more challenging due to geographic isolation,” said Chief Jeffrey Kirkham of the Bethel Police Department. “Public cooperation and reporting reinforce the importance of cooperation between local, state, and federal agencies to address these crimes comprehensively, and obtain justice for the victims bringing those responsible accountable for their actions.”

The FBI Anchorage Field Office and the Bethel Police Department investigated the case.

Assistant U.S. Attorney Ainsley McNerney prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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, please visit https://www.justice.gov/psc.

###

New Assistant United States Attorney Sworn in for the District of Rhode Island

Source: United States Department of Justice Criminal Division

PROVIDENCE – Acting United States Attorney Sara Miron Bloom announces the appointment and swearing-in of Andrea Hyatt as an Assistant United States Attorney for the District of Rhode Island.

Hyatt will serve in the Office’s Civil Division, where she will handle a broad range of matters essential to protecting the interests of the United States, including Federal Tort Claims Act litigation, employment discrimination, immigration cases, and matters arising under the Administrative Procedure Act and False Claims Act.

Hyatt joins the U.S. Attorney’s Office after more than 23 years of experience as a litigator in both the private and public sectors.  Most recently, she served as an Assistant United States Attorney in the Northern District of Texas, where she represented the United States in civil actions in federal and state courts, securing early dismissals or summary judgements in fourteen defensive cases and recovering more than $1.5 million in a False Claims Act matter.  During her tenure, she earned an “Outstanding” performance rating for 2024.

Prior to her work as a federal prosecutor, Hyatt held senior litigation roles at BNSF Railway Co. in Fort Worth, TX where she served in labor and employment law, corporate compliance, and internal investigations, leading teams and managing high-volume, nationwide dockets.  She also practiced at Thomson & Knight LLP in Dallas and served as an Assistant City Attorney for the City of Dallas.

A graduate of the University of Texas School of Law, she was elected to the prestigious Order of the Coif and served as an Articles Editor of the Texas Law Review.

“I am thrilled to welcome Andrea to the United States Attorneys Office,” stated Acting United States Attorney Sara Miron Bloom.  “A seasoned and exceptionally skilled litigator, she brings with her decades of experience across federal practice, corporate compliance, and complex civil litigation.  Her depth of knowledge, dedication to public service, and proven commitment to excellence will serve the people of Rhode Island extraordinarily well.”

U.S. Attorney’s Office Announces North Carolina Division Of Motor Vehicles Improvements On Voter-Registration Process To Protect Election Integrity

Source: United States Department of Justice Criminal Division

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that a series of actions to further enhance and protect the integrity of the voter-registration process will be implemented by the North Carolina Division of Motor Vehicles (DMV). This follows a rigorous review by the U.S. Attorney’s Office of ineligible individuals, including illegal aliens, who were improperly registered to vote at the DMV.

In July, the U.S. Attorney initiated an inquiry to the Commissioner of the DMV following a report by Homeland Security Investigations (HSI) that the DMV permitted ineligible individuals, such as illegal aliens, to register to vote at the DMV, sometimes without the individual’s knowledge. The investigation found individuals were erroneously given citizen identification cards for years and some were registered to vote even after informing the DMV they were not citizens. The involved DMV examiners initially blamed the error on a “system glitch,” but the DMV later admitted “the online system doesn’t verify citizenship status.” The U.S. Attorney asked the DMV Commissioner to review the voter registration processes to ensure non-eligible voters were not being registered to vote.

The DMV agreed to investigate and found that individuals had been registered to vote due to errors by DMV examiners. These errors included mistakenly marking individuals as U.S. citizens, which “bypassed the necessary legal presence questions and allowed voter registration.”  The DMV also found a “system error” that lasted for three months and permitted ineligible individuals to register to vote.

Following the inquiry by the U.S. Attorney, the DMV has agreed to make changes to safeguard the North Carolina voter rolls and assure election integrity. Some changes include:

  • Issuing a statewide reminder to DMV examiners on protocols and safeguards to ensure proper voter registration of only eligible individuals through the DMV.
  • Designing and implementing new training modules for DMV examiners with a special emphasis on citizenship verification processes.
  • Modernizing DMV technology to streamline technological processes and reduce examiner errors, including of the voter registration component.
  • Hiring additional personnel to increase accurate input of sensitive data.
  • Actively pursuing a technical solution to effectively integrate citizenship checks into the DMV’s online and kiosk voter-registration application systems.

The DMV is also coordinating with the State Board of Elections to ensure that any ineligible individuals identified by the federal government have been removed from voter rolls.

“It is vitally important than our elections in North Carolina are accurate, fair, and irreproachable—and that the public has confidence in them—to protect the foundation of our democracy,” said U.S. Attorney Russ Ferguson. “We must ensure that our voter rolls are precise and do not include minors, felons, or illegal aliens. The DMV, which accounts for as much as 80 percent of voter registrations in a given year, plays a central role in that process. We appreciate the agency’s cooperation to improve processes so that only eligible voters are added to the rolls.”

U.S. Attorney Ferguson also thanked HSI and the State Board of Elections for their coordination during this review process and noted that the U.S. Attorney’s Office will continue to monitor compliance at all levels to ensure the sanctity of our elections.

“A host of federal laws give the federal government oversight authority to ensure states maintain accurate and current statewide voter lists,” said U.S. Attorney Russ Ferguson. “We take that obligation seriously and will continue to ensure confidence in our elections.”

Gang Member Pleads Guilty to Possession of a Machinegun

Source: United States Department of Justice Criminal Division

MINNEAPOLIS – Ibrahim Ahmed Mohamud, a/k/a “Ibbs” and “30,” age 19, pled guilty in federal court today to Possession of a Machinegun, announced U.S. Attorney Daniel N. Rosen.

Mohamud is a member of the criminal street gang known as “YSL” (“Young Slime Life”).  Witnesses implicated Mohamud, who goes by “Ibbs,” in a drive-by shooting that occurred on February 24, 2024.  According to witnesses, Mohamud shot at the victim after mistaking him for a member of a rival  street gang known as “Muddy,” which associates with the Somali Outlaws street gang.   

Based on this information, law enforcement obtained a search warrant for Mohamud and his vehicle.  Officers found two guns inside Mohamud’s car—a Glock 19x 9mm pistol equipped with a switch, rendering it fully automatic, and a Glock 17 9mm pistol. These firearms were forensically linked to a shooting that occurred just two days prior at a residence in Lino Lakes, Minnesota.  The targets of that shooting were suspected members of the Muddy street gang.  One of those targets had previously been the victim of another gang-related assault by YSL members during a basketball game at Robbinsdale High School on January 28, 2025.

During the vehicle search, police squad vehicle video recorded Mohamud as he attempted to pressure a juvenile occupant of the vehicle into taking responsibility for the firearms, believing the juvenile would not be prosecuted due to his age.  Mohamud’s DNA was found on the Glock 19x 9mm pistol equipped with a switch.

Mohamud pled guilty today in U.S. District Court before Judge Laura M. Provinzino. A sentencing hearing will be scheduled for a later date.

This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Blaine Police Department, the Minneapolis Police Department, and the Bureau of Criminal Apprehension.

Assistant U.S. Attorney Kristian C. Weir for the District of Minnesota and Trial Attorney Alexandra Swain of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case.

Webster Groves Man Admits Sending, Receiving Child Pornography

Source: United States Department of Justice Criminal Division

ST. LOUIS – A man from Webster Groves, Missouri on Tuesday admitted sending and receiving child sexual abuse material online.

Joseph A. Seiffertt, 44, pleaded guilty to one count of possession of child pornography. He admitted possessing 43 images and 433 videos containing child sexual abuse material (CSAM) on his cell phone, as well as AI-powered apps that he used to depict clothed individuals, including minors, in the nude. Seiffertt also discussed the sexual abuse of minors with someone online and shared and received CSAM via the Kik Messenger app.

Seiffertt is scheduled to be sentenced on March 11, 2026. The U.S. Attorney’s Office will recommend a sentence of 12 years in prison, followed by a lifetime on supervised release.

The FBI and the St. Louis County Special Investigations Unit investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, 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, please visit www.justice.gov/psc.

Justice Department Seizes Unlawful 7-OH Products at Three Warehouses

Source: United States Department of Justice Criminal Division

The Justice Department, together with the U.S. Food and Drug Administration (FDA), announced today that recent actions targeting illegal products containing 7-hydroxymitragine, commonly known as 7-OH, resulted in the seizure of approximately 73,000 units of product at three warehouses.

In seizure complaints and accompanying court papers filed in the U.S. District Court for the Western District of Missouri, the government alleged that two firms in the Kansas City area received warnings from FDA that 7-OH products were illegal under the Federal Food, Drug, and Cosmetic Act. According to the seizure complaints, recent FDA inspections showed that the firms continued to distribute unlawful 7-OH products after receiving the warnings.

The seizures were carried out by the U.S. Marshals Service, with support from FDA. The products were seized from facilities operated by Shaman Botanicals LLC and Relax Relief Rejuvenate Trading LLC.

“Products containing 7-OH are illegal under federal law,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We have seen numerous reports of harmful health consequences in consumers, including children, who have taken 7-OH products. Working with our partners at FDA, we will take action against anyone participating in the illegal distribution of these products.”

“The 7-OH products seized are illegal under federal law and pose risks to consumers, including children,” said U.S. Attorney R. Matthew Price for the Western District of Missouri. “We are committed to helping American consumers protect themselves from dangerous chemicals posing as health products. We will continue to work with our law enforcement partners to ensure illegal products never enter the stream of commerce and pursue all possible civil and criminal remedies against those who violate federal laws.”

The FDA has recognized 7-OH products as dangerous and potentially addictive, recommending in July 2025 that a scheduling action be taken to control certain 7-OH products under the Controlled Substances Act. FDA also issued warning letters to multiple firms stating that their 7-OH products appeared to be unlawful.

7-OH products were not marketed in the United States until recent years. Under a bipartisan law passed by Congress in 1994, a dietary supplement may not contain a “New Dietary Ingredient,” meaning a dietary ingredient that was not marketed in the United States prior to October 15, 1994, if there is inadequate information available to provide a reasonable assurance that the ingredient does not present a significant or unreasonable risk of illness or injury. Because there is inadequate information available to provide a reasonable assurance that 7-OH does not present a significant or unreasonable risk of illness or injury, it is illegal to sell dietary supplement products containing it as an ingredient. In each of the seizure actions, the clerk of court issued a warrant authorizing the seizure of specified illegal 7-OH products.

Assistant Director Patrick Runkle, Senior Litigation Counsel David Sullivan, and Senior Trial Attorney James T. Nelson of the Justice Department’s Civil Division’s Enforcement and Affirmative Litigation Branch are handling the cases under the leadership of Sarmad Khojasteh, Acting Deputy Assistant Attorney General for the Civil Division. Assistant U.S. Attorneys Stephanie Bradshaw and Leigh Farmakidis in the Western District of Missouri provided critical support, along with attorneys at the Department of Health and Human Services’ Office of General Counsel and FDA’s Office of the Chief Counsel.

Additional information about the Enforcement and Affirmative Litigation Branch and its enforcement efforts may be found at www.justice.gov.

Two Men Plead Guilty in $1.49 Million Scam Involving Bulk Gold Purchases

Source: United States Department of Justice Criminal Division

SAN DIEGO –Xilin Sun and Alexander Charles James have pleaded guilty in federal court, admitting they participated in a fraud and money laundering scheme that tricked a Carlsbad resident out of almost $1.5 million.

Sun pleaded guilty today to money laundering conspiracy; James pleaded guilty on November 25, 2025, to wire fraud conspiracy.

According to public documents, the San Diego Elder Justice Task Force learned of the fraud scheme after a victim reported to Carlsbad police that she was duped over a period of months by fraudsters posing as government, bank and tech-support employees. She said she was using her computer when a pop-up window appeared, advising her to call for help because her computer had been hacked. She made the call.

Once the scammers discovered the victim had substantial savings, they convinced her she could safeguard her funds by obtaining gold bars and sending them to the U.S. treasury, which would create a locker under her name. Over the course of two months, the victim sent approximately $1,335,000 via three separate wire transfers to a precious metal business located in San Marcos, California. Once each of the wire transfers were completed, the victim was instructed to pick up the purchased precious metals—consisting of mostly gold—and to package them. The victim was then directed to hand the package over to an individual under the false pretense that it was being “secured” for safekeeping.

In their respective plea agreements, Sun and James both admitted to participating knowingly with the organization that operated technical support, bank impersonation and government impersonation scams targeting elderly victims throughout the United States, including in the Southern District of California.

As set forth in their plea agreements, in February 2024, the FBI set up a sting operation with the Carlsbad victim’s help. The victim was directed by scammers to meet up to deliver a final payment of $100,000 in gold bars. During surveillance, federal agents observed defendant James meet with the victim. After James provided the “secret” word, the victim handed James a package purporting to contain the gold.  James then left the area and met co-conspirator Sun, who took possession of the package of gold bars.  With the assistance of local law enforcement, Sun was then stopped and ultimately arrested. In addition to the fake gold bars, Sun had a false California driver’s license and a package containing $12,900 in bulk cash that had been sent by another victim.  

This case was investigated by the San Diego Elder Justice Task Force and its member agencies, including the U.S. Attorney’s Office, FBI, San Diego County District Attorney’s Office, Carlsbad Police Department, San Diego Police Department, and the California Highway Patrol.

A sentencing hearing for Sun and James is scheduled for February 12, 2025, at 1:30 p.m., before U.S. District Judge Barry Ted Moskowitz.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.

The FBI requests that victims report:

  • The name of the person or company that contacted you.
  • Methods of communication used, including websites, emails, and telephone numbers.
  • Any bank account number(s) to which you wired funds and the recipient name(s).
  • The name and location of the metal dealer company and the account to which you wired funds, if you were instructed to buy precious metals.

This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Francisco Nagel.

DEFENDANTS                                             

Case Number 24-cr-1007-BTM

Xilin Sun                                                         Age: 35                                   Ontario, CA

Case Number 24-cr-2607-BTM

Alexander Charles James                                Age: 21                                   Los Angeles, CA

SUMMARY OF CHARGES

Xilin Sun

Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)

Maximum penalty: Twenty years in prison; a maximum $500,000 fine or twice the amount of monetary instruments involved in the offense, whichever is greatest

Alexander Charles James

Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Sections 1349

Maximum penalties: Thirty years in prison; $1 million fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Elder Justice Task Force

Carlsbad Police Department

California Highway Patrol

San Diego County District Attorney’s Office
San Diego Police Department

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.