WASHINGTON — The Justice Department today announced the results of its 2025 National Health Care Fraud Takedown, which resulted in criminal charges against 324 defendants, including 96 doctors, nurse practitioners, pharmacists, and other licensed medical professionals, in 50 federal districts and 12 State Attorneys General’s Offices across the United States, for their alleged participation in various health care fraud schemes involving over $14.6 billion in intended loss. The Takedown involved federal and state law enforcement agencies across the country and represents an unprecedented effort to combat health care fraud schemes that exploit patients and taxpayers.Demonstrating the significant return on investment that results from health care fraud enforcement efforts, the government seized over $245 million in cash, luxury vehicles, cryptocurrency, and other assets as part of the coordinated enforcement efforts. As part of the whole-of-government approach to combating health care fraud announced today, the Centers for Medicare and Medicaid Services (CMS) also announced that it successfully prevented over $4 billion from being paid in response to false and fraudulent claims and that it suspended or revoked the billing privileges of 205 providers in the months leading up to the Takedown. Civil charges against 20 defendants for $14.2 million in alleged fraud, as well as civil settlements with 106 defendants totaling $34.3 million, were also announced as part of the Takedown. Today’s Takedown was led and coordinated by the Health Care Fraud Unit of the Department of Justice Criminal Division’s Fraud Section and its core partners from U.S. Attorneys’ Offices, the Department of Health and Human Services Office of Inspector General (HHS-OIG), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA). The cases were investigated by agents from HHS-OIG, FBI, DEA, and other federal and state law enforcement agencies. The cases are being prosecuted by Health Care Fraud Strike Force teams from the Criminal Division’s Fraud Section, 50 U.S. Attorneys’ Offices nationwide, and 12 State Attorneys General Offices.“This record-setting Health Care Fraud Takedown delivers justice to criminal actors who prey upon our most vulnerable citizens and steal from hardworking American taxpayers,” said Attorney General Pamela Bondi. “Make no mistake – this administration will not tolerate criminals who line their pockets with taxpayer dollars while endangering the health and safety of our communities.”"As part of making healthcare accessible and affordable to all Americans, HHS will aggressively work with our law enforcement partners to eliminate the pervasive health care fraud that bedeviled this agency under the former administration and drove up costs,” said Secretary Robert F. Kennedy Jr. of the Department of Health and Human Services.“The Criminal Division is intensely committed to rooting out health care fraud schemes and prosecuting the criminals who perpetrate them because these schemes: (1) often result in physical patient harm through medically unnecessary treatments or failure to provide the correct treatments; (2) contribute to our nationwide opioid epidemic and exacerbate controlled substance addiction; and (3) do all of that while stealing money hardworking Americans contribute to pay for the care of their elders and other vulnerable citizens,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The Division’s Health Care Fraud Unit and U.S. Attorneys’ Offices stand united with our law enforcement partners in this fight, and we will continue to use every tool at our disposal to protect the integrity of our health care programs for the American people.”“Health care fraud drains critical resources from programs intended to help people who truly need medical care,” said Director Kash Patel of the FBI. “Today’s announcement demonstrates our commitment to pursuing those who exploit the system for personal gain. With more than $13 billion in fraud uncovered, this is the largest takedown for this initiative to date. Together, the FBI and our law enforcement partners will continue to hold those accountable who steal from the American people and undermine our health care systems.”Transnational Criminal Organizations29 defendants were charged for their roles in transnational criminal organizations alleged to have submitted over $12 billion in fraudulent claims to America’s health insurance programs.For instance, a nationwide investigation known as Operation Gold Rush resulted in the largest loss amount ever charged in a health care fraud case brought by the Department. These charges were announced in the Eastern District of New York, the Northern District of Illinois, the Central District of California, the Middle District of Florida, and the District of New Jersey against 19 defendants. Twelve of these defendants have been arrested, including four defendants who were apprehended in Estonia as a result of international cooperation with Estonian law enforcement and seven defendants who were arrested at U.S. airports and the U.S. border with Mexico, cutting off their intended escape routes as they attempted to avoid capture.The organization allegedly used a network of foreign straw owners, including individuals sent into the United States from abroad, who, acting at the direction of others using encrypted messaging and assumed identities from overseas, strategically bought dozens of medical supply companies located across the United States. They then rapidly submitted $10.6 billion in fraudulent health care claims to Medicare for urinary catheters and other durable medical equipment by exploiting the stolen identities of over one million Americans spanning all 50 states and using their confidential medical information to submit the fraudulent claims. As alleged, the organization exploited the U.S. financial system by laundering the fraudulent proceeds and deploying a range of tactics to circumvent anti-money laundering controls to transfer funds into cryptocurrency and shell companies located abroad. The arrests announced today also include a banker who facilitated the money laundering of fraud proceeds on behalf of the organization through a U.S.-based bank.The Health Care Fraud Unit’s Data Analytics Team and its partners detected the anomalous billing through proactive data analytics, and HHS-OIG and CMS successfully prevented the organization from receiving all but approximately $41 million of the approximately $4.45 billion that was scheduled to be paid by Medicare. HHS and CMS intend to seek to return the $4.41 billion in escrow to the Medicare trust fund for needed medical care. The scheme nonetheless resulted in payments of approximately $900 million from Medicare supplemental insurers. To date, law enforcement has seized approximately $27.7 million in fraud proceeds as part of Operation Gold Rush.In another action involving foreign influence, charges were filed in the Northern District of Illinois against five defendants, including two owners and executives of Pakistani marketing organizations, in connection with a $703 million scheme in which Medicare beneficiaries’ identification numbers and other confidential health information were allegedly obtained through theft and deceptive marketing. The defendants allegedly used artificial intelligence to create fake recordings of Medicare beneficiaries purportedly consenting to receive certain products. According to court documents, the beneficiaries’ confidential information was then illegally sold to laboratories and durable medical equipment companies, which used this unlawfully obtained and fraudulently generated data to submit false claims to Medicare. Certain defendants controlled dozens of nominee-owned durable medical equipment companies and laboratories that allegedly submitted fraudulent claims for products and services the beneficiaries did not request, need, or receive. Certain defendants also allegedly conspired to conceal and launder the fraud proceeds from bank accounts they controlled in the United States to bank accounts overseas. In total, the defendants caused approximately $703 million in alleged fraudulent claims to Medicare and Medicare Advantage plans, which paid approximately $418 million on those claims. The government seized approximately $44.7 million from various bank accounts related to this case.Finally, a defendant based in Pakistan and the United Arab Emirates who owned a billing company allegedly orchestrated a scheme to prey upon vulnerable individuals in need of addiction treatment by conspiring with treatment center owners to fraudulently bill Arizona Medicaid approximately $650 million for substance abuse treatment services. According to court documents, some of the services billed were never provided, while other services were provided at a level that was so substandard that it failed to serve any treatment purpose. As part of the conspiracy, treatment center owners allegedly paid illegal kickbacks in exchange for the referral of patients recruited from the homeless population and Native American reservations. The defendant received at least $25 million of ill-gotten Arizona Medicaid funds as a result of the conspiracy and is charged with a money laundering offense for his alleged use of those funds to purchase a $2.9 million home located on a golf estate in Dubai.Fraudulent Wound CareCharges were filed in the District of Arizona and the District of Nevada against seven defendants, including five medical professionals, in connection with approximately $1.1 billion in fraudulent claims to Medicare and other health care benefit programs for amniotic wound allografts. As alleged, certain defendants targeted vulnerable elderly patients, many of whom were receiving hospice care, and applied medically unnecessary amniotic allografts to these patients’ wounds. Many of the allografts allegedly were applied without coordination with the patients’ treating physicians, without proper treatment for infection, to superficial wounds that did not need this treatment, and to areas that far exceeded the size of the wound. Certain defendants allegedly received millions in illegal kickbacks from the fraudulent billing scheme.“Today's unprecedented enforcement action demonstrates that CMS and our federal partners are united in our mission to protect the integrity of Medicare and Medicaid by crushing waste, fraud, and abuse," said Administrator Dr. Mehmet Oz of CMS. "Every dollar we prevent from going to fraudsters is a dollar that stays in the system to serve legitimate beneficiaries. Through advanced data analytics, real-time monitoring, and swift administrative action, CMS is leading the fight to protect Medicare, Medicaid, and the trust Americans place in these vital programs. We're not waiting for fraud to happen—we're stopping it before it starts."Prescription Opioid Trafficking74 defendants, including 44 licensed medical professionals, were charged across 58 cases in connection with the alleged illegal diversion of over 15 million pills of prescription opioids and other controlled substances. For example, five defendants associated with one Texas pharmacy were charged with the unlawful distribution of over 3 million opioid pills. As alleged, the defendants conspired to distribute massive quantities of oxycodone, hydrocodone, and carisoprodol, which were subsequently trafficked by street-level drug dealers, generating large profits for the defendants. This coordinated action is a continuation of the Health Care Fraud Unit’s systematic approach to stopping drug trafficking organizations and their pharmaceutical wholesale suppliers, which together have fueled an epidemic of prescription opioid abuse for nearly a decade.DEA also announced today that in the last six months, DEA charged 93 administrative cases seeking the revocation of pharmacies, medical practitioners, and companies authority to handle and/or prescribe controlled substances.“Health care fraud isn’t just theft — it’s trafficking in trust. Today’s announcement shows that when doctors become drug dealers and treatment centers become profit-driven fraud rings, DEA will act,” said Acting Administrator Robert Murphy of the DEA. “We’re targeting the entire ecosystem of fraud — from pill mills in Texas to kickback clinics exploiting Native communities. If you abuse your medical license to push poison or pad your pockets, we will hold you accountable.” Telemedicine and Genetic Testing FraudIn today’s Takedown, 49 defendants were charged in connection with the submission of over $1.17 billion in allegedly fraudulent claims to Medicare resulting from telemedicine and genetic testing fraud schemes. For example, in the Southern District of Florida, prosecutors charged an owner of telemedicine and durable medical equipment companies with a $46 million scheme in which Medicare beneficiaries were allegedly targeted through deceptive telemarketing campaigns and then fraudulent claims were submitted to Medicare for durable medical equipment and genetic tests for these beneficiaries. The Department continues to focus on eliminating health care fraud schemes that depend on telemedicine, including schemes involving fraudulent claims for genetic testing, durable medical equipment, and COVID-19 tests.Other Health Care Fraud SchemesThe other cases announced today charge an additional 170 defendants with various other health care fraud schemes involving over $1.84 billion in allegedly false and fraudulent claims to Medicare, Medicaid, and private insurance companies for diagnostic testing, medical visits, and treatments that were medically unnecessary, provided in connection with kickbacks and bribes, or never provided at all. For example, in the Western District of Tennessee, prosecutors charged three defendants, including business owners and a pharmacist, with a $28.7 million scheme to defraud the Federal Employees’ Compensation Fund by allegedly billing for medications for injured United States Postal Service employees that were never prescribed by a licensed practitioner and largely were not dispensed as claimed. And in the Western District of Washington and the Northern District of California, prosecutors charged medical providers with allegedly stealing fentanyl and hydrocodone, respectively, that was meant for the providers’ patients, including child patients in need of anesthesia.“VA’s Integrated Veteran Care Programs provide critical community-based health care to our nation’s disabled veterans and their dependents,” said Acting Inspector General David Case of the Department of Veterans Affairs Office of Inspector General (VA-OIG). “Robust oversight of VA’s health care system is one of VA-OIG’s highest priorities. VA-OIG is committed to holding accountable those who defraud government benefits programs intended to care for our nation’s heroes.”Breaking Down Silos in the Fight Against Health Care FraudIn connection with the coordinated nationwide law enforcement operation, the Department is announcing that it is working closely with HHS-OIG, FBI, and other agencies to create a Health Care Fraud Data Fusion Center to bring together experts from the Department’s Criminal Division, Fraud Section, Health Care Fraud Unit Data Analytics Team; HHS-OIG; FBI; and other agencies to leverage cloud computing, artificial intelligence, and advanced analytics to identify emerging health care fraud schemes. The Health Care Fraud Unit’s Data Analytics Team was established in 2018 to enhance the Unit’s ability to detect, investigate, and prosecute complex health care fraud schemes. Joining forces with data analysts from HHS-OIG, FBI, and other partners will increase efficiency, detection, and rapid prosecution of emerging health care fraud schemes. It will also implement the President’s Executive Order Stopping Waste, Fraud, and Abuse by Eliminating Information Silos (Exec. Order No. 14243, 3 C.F.R. 294 (2025)) by reducing duplicative data teams, increasing operational efficiency through a whole-of-government approach, and leveraging cloud computing, artificial intelligence, and other agency resources.Principal Assistant Deputy Chief Jacob Foster, Assistant Deputy Chief Rebecca Yuan, Trial Attorney Miriam L. Glaser Dauermann, and Data Analyst Elizabeth Nolte, all of the Health Care Fraud Unit of the Criminal Division’s Fraud Section, led and coordinated this year’s Takedown. The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, and Texas Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Northern District of California, Southern District of California, District of Columbia, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Middle District of Georgia, District of Idaho, Northern District of Illinois, Eastern District of Kentucky, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Maine, District of Massachusetts, Eastern District of Michigan, Western District of Michigan, Northern District of Mississippi, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Western District of North Carolina, District of North Dakota, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, District of South Carolina, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Washington, and Northern District of West Virginia; and State Attorneys General’s Offices for California, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Missouri, New York, Ohio, Pennsylvania, South Carolina, and Wisconsin. The Health Care Fraud Unit’s Data Analytics Team used cutting-edge data analytics to identify and support the investigations that led to these charges.In addition to FBI, HHS-OIG, DEA, and CMS, HSI, VA-OIG, IRS Criminal Investigation, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, Office of Personnel Management Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation. The Medicaid Fraud Control Units of California, the District of Columbia, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Missouri, New York, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, Texas, Virginia, and Wisconsin also participated in the investigation of many of the federal and state cases announced today.The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Forces. Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the Health Care Fraud Strike Force, which operates in 27 districts, charged more than 5,400 defendants who collectively billed Medicare, Medicaid, and private health insurers more than $27 billion.An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.*****The following materials related to today’s announcement are available on the Health Care Fraud Unit’s website through these links:• Graphics and Resources• Case Descriptions• Court Documents###
LANSING – Acting U.S. Attorney for the Western District of Michigan Andrew Birge announced today that Matthew Mencarelli, 39, of Belmont, Michigan was sentenced to 97 months in prison for a wire fraud scheme in which he offered phony investments in nonexistent “fiber optic cable” and other infrastructure projects. He used the money to finance his lifestyle and make Ponzi-type payments to earlier investors. U.S. District Judge Hala Y. Jarbou, who imposed the sentence, found Mencarelli responsible for causing $1,615,180 in loss to 15 victims of the scheme. “Those who steal from others to line their own pockets will be held accountable,” Birge said. “We are committed to combatting financial fraud and white-collar crime and would like to thank the victims who came forward to report it.” “Today’s sentencing of Matthew Mencarelli sends a stern message that fraudulent investment schemes will not be tolerated in Michigan,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to investigating and deterring financial fraud that harms our community. We appreciate the Grand Rapids Police Department for their invaluable partnership and the U.S. Attorney’s Office of the Western District of Michigan in bringing Mr. Mencarelli to justice.” Court records indicate that Mencarelli, who owned a contracting business called Matthew’s Woodworking LLC, began soliciting fictitious investments in 2018 when his business was suffering from financial difficulties and unsatisfied customers. He approached friends and acquaintances from his family’s yacht club and county club and told them he had lucrative contracts with local governments in Traverse City to install fiber optic cable or other infrastructure projects. He told them he needed money to maintain a “surety bond” in connection with the contracts and guaranteed high rates of return if the investors loaned him money. In truth, there were no such contracts and Mencarelli used the money instead to finance his lifestyle, pouring at least $400,000 into a custom-built home. He also used payments from newer investors to pay off older investors. When it came time to pay investors back, he lied, bullied, and threatened them and manufactured false documents to maintain the charade. The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Clay Stiffler.# # #
GRAND RAPIDS, MICHIGAN – Lawrence Gerard Nassar, 54, of Holt, Michigan, was sentenced to 60 years in federal prison for child-pornography and obstruction-of-justice offenses, U.S. Attorney Andrew Birge announced today. U.S. District Judge Janet T. Neff ordered the federal sentence to be served consecutive to the sentences he receives in state court. In addition to the prison term, Nassar must also register as a sex offender, and, if released from prison, he will be subject to a lifetime term of supervised release.
In July of this year, Nassar pleaded guilty in federal court to receiving child pornography in 2004, possessing child pornography from 2003 to 2016, and destroying and concealing evidence in 2016 when he believed, correctly, that ongoing investigation by law enforcement would reveal his child-pornography activities. As part of a plea agreement, Nassar agreed not to oppose a sentencing enhancement for engaging in a pattern of activity involving the sexual abuse or exploitation of minors. That enhancement, based on his extensive history of personally sexually molesting minors, increased his advisory U.S. Sentencing Guideline range by over 70%. This is the same enhancement that would have applied had he been convicted of additional federal charges related to his hands-on misconduct, such as for traveling interstate with intent to engage in illicit sexual conduct. By the time of his sentencing, Nassar faced an advisory guideline range of 30 years to life in prison, capped by the combined statutory maximum for the three counts of 60 years.
Dozens of victims participated in the federal sentencing proceeding by submitting written victim-impact statements to the Court. The victims wrote about the pain and trauma Nassar caused them, their shattered trust and innocence, the enduring impact this conduct has had on their lives, and their desire to see justice. The victims called on the Court to severely punish Nassar and protect others from further acts of sexual predation.
In announcing the sentence, Judge Neff left no doubt that “maximum potential penalties are in order here.” She found the case “unique.” The images Nassar collected were numerous and “like none other that I’ve seen.” She expressed dismay that Nassar was a doctor and was troubled by the thought that he might have “felt omnipotent” for getting away with sexually assaulting his victims when their mother was in the room. “I am a mom. I cannot imagine [the anguish those mothers must feel].” She chastised Nassar for violating the most basic tenant of medicine – “Do no harm.” Finally, the Judge expressed deep concern for the victims’ sense of self-worth that was destroyed. She concluded that Nassar “is, was, and will be a danger to children.” “It is through consecutive sentencing that I can protect young children.”
Following the sentencing, U.S. Attorney Birge said: “Today was a day of reckoning for Larry Nassar. He more than deserves this punishment for what he did. He consumed child pornography on a massive scale. We found 37,000 images of child pornography on his computers. Insatiable hunger of that nature simply encourages those who produce such images to continue to sexually exploit children. Compounding his danger to the public, Nassar was an insidious hands-on child predator in his own right. He took advantage of family friendships. And he treated his license to practice medicine as a license to sexually molest children. Thanks to the brave victims who came forward, we learned the full scope of his depravity. The breadth and dark depth of his heinous acts are extraordinary.”
U.S. Attorney Birge added: “My heart goes out to the victims-- those in the images and those he personally sexually molested. With today’s sentencing, I hope his victims find a sense of renewed self-worth in knowing their role in this outcome. And I hope they and the public find some measure of solace and reassurance in knowing that Nassar has been held accountable for his actions. Anyone who exploits children will be found out and held accountable regardless of their position or station in life.” U.S. Attorney Birge then expressed his thanks to the victims for making the outcome possible in this case and he thanked the FBI and Michigan State University Police for their efforts in support of the charges.
“Today’s sentencing represents an important achievement as we take another step in this long process of holding Nassar accountable for his shocking predatory acts of child sexual abuse and exploitation,” said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. “I want to thank those involved at the FBI in Detroit and Los Angeles, Michigan State University Police Department, and the U.S. Attorney’s Office for their tireless work to bring Nassar to justice. This punishment of a man who once held a position of trust and enjoyed the trust and respect of many should serve as a warning to those who prey upon and sexually exploit children that there will be severe consequences for crimes of this nature. My thoughts are with all the victims whose lives have been forever impacted.”
Michigan State University Police Chief Jim Dunlap commented that: “The Michigan State University Police Department appreciates the effective collaboration with the FBI and the U.S. Attorney’s Office to achieve a measure of justice for the survivors.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Detroit and Los Angeles Divisions of the Federal Bureau of Investigation (FBI) and the Michigan State University Police Department (MSUPD) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
Jury Convicts Last of Seven Defendants in Scheme that Stretched from Texas to Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, of Austin, Texas, was convicted on 30 January 2017 of conspiracy to commit wire-fraud, credit account fraud, and aggravated identity theft after a four-day jury trial. Perez-Martinez, the last of eight defendants charged in the case and the overall leader of a conspiracy that at times involved over a dozen participants, remains in the custody of the U.S. Marshals Service pending sentencing on 15 May 2017 before Chief Judge Robert J. Jonker, who presided over the trial.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous other recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admits Cuban citizens who present themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites, encoding that data onto cards, and using the "cloned" cards to bulk-buy gift cards and stored-value cards. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases. Because skimming devices acquire account data firsthand, the numbers are more recent and more reliable than those acquired secondhand from online hackers, and the illegal profits are greater.
Perez-Martinez’ conviction brings the total number of convictions from the case to seven: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme was minimal. Perez-Martinez faces maximum penalties of 30 years in federal prison for the conspiracy and ten years for the credit account fraud, as well as a mandatory two-year prison sentence for the aggravated identity theft charge that must be served after the sentences on the first two counts are complete.
"Identity-theft is a continually expanding and especially pernicious form of property crime," stated Acting U.S. Attorney Andrew Birge, "and the pump-skimmer scheme is an aggravated form of identity theft because it targets every citizen of West Michigan doing one of the most basic and necessary things we all have to do: putting gas in our tanks. Any person who comes to West Michigan on a skimmer crew had better understand that the odds of getting caught are good, and that if they are caught, they will be prosecuted in Federal court."
"As demonstrated by Monday’s guilty verdict, the defendant orchestrated a fraudulent scheme in order to steal proprietary financial information from their victims through the use of credit card skimmers at local gas stations," added David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Criminals who engage in these types of plots exploit and manipulate the very technology that we depend on to conduct secure financial transactions in the retail marketplace. Furthermore, such high-tech criminal activity causes significant losses for both merchants and banking institutions. The FBI and its local, state and federal law enforcement partners remain committed to protecting consumers, businesses, and financial institutions from the fraud schemes of criminal enterprises like the one this defendant led."
The case was investigated primarily by the FBI’s Lansing office, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, the Grand Ledge Police Department, and the McAllen Police Department, McAllen, Texas. It is being prosecuted by Assistant U.S. Attorney Hagen W. Frank.
Case Reflects Grim Reality: Gun Violence is Now the #1 Cause of Death for Kids GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Avis Coward, 44, of Lansing, was sentenced to 120 months in federal prison for being a felon in possession of firearms. Coward previously pleaded guilty to illegally possessing two guns. A two-year-old child found one of the guns in a car, suffered a gunshot wound and later died. Coward had previously been convicted of drug trafficking, carrying a concealed weapon, carjacking, and brandishing a weapon during the commission of a crime of violence. “This two-year-old child is dead because Avis Coward flouted the law,” said U.S. Attorney Mark Totten. “And then – as if that was not enough – Coward attempted to hide his crime and evade justice.” Totten continued: “This case painfully represents a grim statistic that hangs over the nation: gun violence is now the #1 cause of death for our youngest Americans, ages 0-19. None of us should get used to this new reality. My team and I will use every tool we have to punish criminals who put our kids in harm’s way.” Two other Lansing residents were also charged in the indictment. Emma Huver pleaded guilty to possessing a pistol that was in the car and was sentenced to 60 months in federal prison. Gina Schieberl pleaded guilty to tampering with evidence and is scheduled to be sentenced on October 21. On October 24, 2023, Coward got out of a car at a Lansing gas station and went inside, leaving a two-year-old child and the child’s mother, Emma Huver, in the car. The child found Coward’s gun while playing in the car, then shot and killed himself. Surveillance video showed a bullet hole appear in the car window a minute after Coward exited the vehicle. Huver got out of the car holding her child, who had blood on his face from the gunshot wound. As she did so, Coward’s gun fell out of the car. Huver handed the child to Coward, who then passed the child to a third person who took the victim into the gas station and attempted to control the bleeding until medical personnel arrived. Coward returned to the car, picked up the gun off the ground, and put it back in the car. The surveillance video also showed Coward use his hand to break out the front passenger window, which had the bullet hole, in his first effort to destroy evidence. Coward then drove away. The child later died from his injuries.
While in jail, Coward made several phone calls in an attempt to further hide evidence. Police later found the car, which was found burned-out and abandoned in a field in Lansing, and the barrel of Coward’s .45 caliber Springfield Armory semiautomatic pistol, which was hidden in the wall of a house in Lansing. The rest of the gun has not been recovered. Further details are available in the Government Response to Defendant’s Sentencing Memorandum, which is attached to this press release.
“This tragedy occurred because an individual who was prohibited from owning a firearm illegally possessed one, leading to a devastating outcome,” said Chief Rob Backus, Lansing Police Department. “Our thoughts are with the family affected by this loss. We appreciate U.S. Attorney Mark Totten and his team for their dedication in seeing this case through and ensuring accountability.” Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have declined since 2021, no level of violence is acceptable. Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide, Centers for Disease Control and Prevention fact sheet, and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet. Anyone who possesses a gun must follow all local, state, and federal laws. This case was investigated by the Lansing Police Department, Michigan State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.###
Scheme Stretched from Texas into Colorado, Indiana, Wisconsin, Ohio and Michigan
GRAND RAPIDS, MICHIGAN — Antonio DeJesus Perez-Martinez, 44, formerly of Austin, Texas, was sentenced today to serve 144 months, or exactly 12 years, in the Federal Bureau of Prisons for his leadership of a scheme that involved the installation of hidden data-skimming devices inside gas pumps, encoding credit-account data that was harvested by those devices onto "cloned" credit cards, and use of the cards to bulk-buy gift cards and prepaid debit cards at self-checkout lanes of major retailers. Perez-Martinez was convicted of conspiracy to commit wire-fraud, credit-account fraud, and aggravated identity-theft after a trial in U.S. District Court during January 2017, and he is the last of eight defendants charged in a long-running investigation that was conducted by the Lansing office of the FBI, with assistance from the U.S. Postal Inspection Service, the Grand Rapids Metro Fraud and Identity-Theft Team, and the Grand Ledge Police Department.
The evidence at trial established that Perez-Martinez, a Cuban citizen and lawful permanent resident of the United States ("green-card" holder), recruited numerous recently-arrived Cuban citizens – all of whom had entered the United States in 2014 under a special "parole" program that admitted Cuban citizens who presented themselves to immigration authorities at the border – into a fraud scheme that initially involved obtaining compromised credit-account data from illicit websites. During the Summer of 2015, Perez-Martinez switched from acquiring account data online to using "skimming" devices that his accomplices secretly installed inside gas-pumps, and also extended his group’s operation into West Michigan. Skimming devices capture the account data of any card used to purchase gas without interfering with the purchase, leaving the account holder unaware that the data has been compromised until it has been re-encoded onto cloned cards and used to make unauthorized purchases.
Perez-Martinez’ sentence is the seventh prison term imposed in the case: Raul Gonzalez Falcon (29), Yunier Carballo-Pupo (34), Manuel Perez-Cabrera (38), and Michel Velazquez-Gregori (30), none of whom had prior criminal records and all of whom agreed to plead guilty and to cooperate with the investigation, all received sentences of 21 months in prison. Pedro Sanchez-Pupo (32) received a sentence of 37 months. A seventh defendant, Juan Estrada-Galvez, was allowed to plead guilty to a state misdemeanor in Kent County when the investigation determined that his involvement in the scheme had been minimal.
"Perez-Martinez has learned the hard way that West Michigan is the wrong place to visit if you’re engaged in a gas-pump skimming scheme," stated Acting U.S. Attorney Andrew Birge. "The odds of getting caught here are good, and if you are caught, then your case will be prosecuted in Federal court and the investigative resources of the FBI will be brought to bear against you. That applies both to those who are caught in the act and to people like Perez- Martinez who might never set foot in West Michigan, but who send their subordinates here. The long arms of federal law caught Perez-Martinez. And those arms aren’t letting go until he serves his time."
"The guilty verdict and subsequent lengthy sentence in this case demonstrate that criminals who engage in identity theft will be held accountable for their crimes. The FBI, along with our local, state and federal law enforcement partners, is committed to safeguarding the public against such crimes and working to ensure the American public is secure in its financial transactions," said David P. Gelios, Special Agent in Charge of the Detroit Division of the FBI.
The case was prosecuted by Assistant U.S. Attorney Hagen W. Frank.
Man convinced 12-year-old child to send him sexually explicit photos and videos MARQUETTE – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Kelton Salowitz, 19, of Curtis, Michigan, was sentenced to 15 years in federal prison followed by 10 years of supervised release for sexually exploiting a 12-year-old child. “We cannot undo the harm that Mr. Salowitz inflicted on children, but today’s sentence is a measure of justice for the victims and an important step to protect the community,” said U.S. Attorney Mark Totten. “This case is also a reminder of the dangers that lurk online. Without sufficient guardrails, smartphones can give criminals across the United States and around the world access to our children, even inside the safety of their homes. Educate your kids, monitor their online activity, and let them know they can also talk to you if they mess up.” Salowitz pleaded guilty to repeatedly asking a 12-year-old girl, who was living in a different state, to send him sexually explicit photos and videos. He communicated with the child on his smartphone through the application Discord. One of the videos recovered from defendant’s phone was a recorded livestream in which the child performed sexual acts at the instruction of Salowitz. In addition, Salowitz requested, but did not receive, similar content from another 12-year-old, and investigators recovered a collection of child pornography on his phone which included videos of men sexually assaulting children. Homeland Security Investigations (HSI) provides the following Top 10 Tips2Protect for parents to protect their children from online predators:Start an open, two-way conversation with your child.Password-protect or control access to your child’s app store and gaming downloads.Set time and area limits for use of devices and set device check-in times.Set all apps, games and devices to private.Turn off location data services on social media and nonessential apps.Talk about data permanency. Online data can last a lifetime.Create a contract with your child regarding online behavior.Know your child’s friend lists. Remove strangers.Warn your child that they should never leave a game to chat with someone they don’t know on a different platform.Do not delete messages, images or videos from predators and do not forward any sexually explicit images or videos. Save usernames, screenshots and images or videos as evidence for law enforcement to collect directly from the device. Further information for parents about how to protect their children, what to share with them, and the signs of online sexual exploitation are available on the agency’s Know2Protect (K2P) website. The Mackinac County Sheriff’s Office and the Department of Homeland Security, Homeland Security Investigations, investigated this matter. This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children Task Force (ICAC), and federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood educate local communities about the dangers of online child exploitation and teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.# # #
GRAND RAPIDS, MICHIGAN — Duane William Millar, age 60, of East Lansing, Michigan, was sentenced today to seven years in federal prison, announced Acting U.S. Attorney Andrew Birge. Millar, a former teacher with the Howell Public School District, pleaded guilty to receipt of child pornography last year.
In announcing the sentence, Chief U.S. District Judge Robert J. Jonker commented on Millar’s large collection of 40,000 images of child pornography, which dated back to 2004 and included depictions of sadomasochistic conduct. Judge Jonker expressed his concern that Millar exploited his position of trust with his students. Following his term of incarceration, Millar will serve seven years on supervised release and was ordered to contribute $5,000 to the Justice for Victims of Trafficking Act Fund. The Fund provides financial support for victims of child pornography, sex trafficking, and child sexual abuse. He must also register as a sexual offender.
Acting U.S. Attorney Birge noted that "a case that involves a teacher with an interest in child pornography is exceptionally troubling, because teachers have access to children and are in a special position of the trust with students, parents, and the public." At sentencing, the U.S. Attorney’s Office emphasized that while the investigation revealed no evidence of inappropriate sexual contact with his students, investigators were nonetheless concerned by the fact the otherwise innocuous images of his students had been digitally manipulated to include sexual imagery. "Every time a sexually explicit image of a minor is produced, transmitted, or viewed, a child is re-victimized," said Steve Francis, acting special agent in charge of HSI Detroit. "The fact that this defendant was in a position of trust is particularly disturbing and heightens our resolve to hold predators accountable."
This case is the result of an investigation by the Michigan State Police Internet Crimes Against Children Task Force (MSP ICAC), working in conjunction with HSI. The Ingham County Prosecutor’s Office initiated Millar’s prosecution and then referred the case for federal prosecution. The case was prosecuted by Assistant U.S. Attorney Alexis M. Sanford.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Timothy VerHey today announced that Jamaican national Sefton Stewart, age 40, pleaded guilty to conspiracy to commit mail and wire fraud for his role in a nationwide fraud scheme that fraudulently obtained at least $3.4 million from more than 25 victims. Stewart will be sentenced by United States District Judge Paul Maloney and faces a maximum sentence of 20 years in federal prison. According to court documents, between October 2019 and September 2024, Stewart, Danielle Diarbakerly, and others participated in a scheme to defraud people in the United States by claiming they had won large prizes (cash and luxury vehicles) in a multistate lottery. To claim the prizes, victims were told they had to pay taxes and fees associated with their winnings. None of those false representations were true and the conspirators used fake bank and U.S. government documents to convince some victims to believe the fraudulent representations and promises. A large portion of the victim funds ultimately were sent to Jamaica, where Stewart resided and a substantial part of the scheme was executed. At least one of the scheme’s victims was a resident of West Michigan, which prompted U.S. Attorney VerHey to file charges. “This defendant helped operate a scheme that preyed on some of our most vulnerable citizens. Today’s guilty plea is an important step toward justice for the victims and demonstrates our commitment to holding international fraudsters accountable,” said U.S. Attorney VerHey, who prosecuted co-conspirator Danielle Diarbakerly last year. Diarbakerly, a Florida resident, pleaded guilty in August 2025 to conspiracy to launder money obtained in the fraud scheme and was sentenced to 37 months in federal prison for her role. Stewart was extradited to Grand Rapids, Michigan from Jamaica by the U.S. Marshals Service in March 2026 and has been detained since his arrival. After serving his sentence, Stewart will be removed from the United States. “Homeland Security Investigations is committed to protecting the public from transnational criminal organizations that target vulnerable individuals through complex fraud schemes,” said Acting Assistant Special Agent in Charge Scott Bauer, Grand Rapids Office, Homeland Security Investigations (HSI). “This case demonstrates the importance of international cooperation and the dedication of our agents to pursue justice for victims, no matter where the perpetrators may reside. We will continue to work with our law enforcement partners to ensure those who exploit innocent people are held accountable.” “The defendant in today’s announcement and their prosecuted co-conspirator share one trait in common – greed,” said Acting Special Agent in Charge Robert Kuszynski, Detroit Field Office, IRS Criminal Investigation (IRS-CI). “This desire for money, along with the power and material items it buys, drove them to commit crimes against many of the vulnerable in our society. Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with our law enforcement partners to uncover these schemes, these criminals are facing the consequences of their actions.” The Department of Homeland Security’s Homeland Security Investigations (HSI) and Internal Revenue Service Criminal Investigation (IRS-CI) are jointly investigating this case. Assistant U.S. Attorney Chris O’Connor is prosecuting it.# # #
