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Source: United States Department of Justice Criminal Division
Attorney General Pam Bondi, FBI Director Kash Patel, and Interim U.S. Attorney for the Eastern District of Virginia Erik Siebert announced the arrest of an MS-13 gang leader. They were joined by Governor for the Commonwealth of Virginia Glenn Youngkin.
Source: United States Department of Justice 2
Attorney General Pam Bondi, FBI Director Kash Patel, and Interim U.S. Attorney for the Eastern District of Virginia Erik Siebert announced the arrest of an MS-13 gang leader. They were joined by Governor for the Commonwealth of Virginia Glenn Youngkin.
Source: United States Department of Justice
The Justice Department announced the disruption of an ongoing terrorist financing scheme through the seizure of approximately $201,400 in cryptocurrency held in wallets and accounts intended to benefit Harakat al-Muqawama al-Islamiyya (Hamas). The seized funds were traced from fundraising addresses purportedly controlled by Hamas that were used to launder more than $1.5 million in virtual currency since October 2024.
“At Attorney General Pam Bondi’s direction, the Department of Justice is committed to dismantling Hamas using every tool at our disposal,” said Sue J. Bai, head of the Justice Department’s National Security Division.
“These seizures show that this office will search high and low for every cent of money going to fund Hamas, wherever it is found, and in whatever form of currency,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia. “Hamas is responsible for the death of many U.S. and Israeli nationals, and we will stop at nothing to stop their campaign of terror and murder.”
“Hamas raised and laundered more than a million dollars to support its terrorist operation, but through our investigation, the FBI traced and seized these funds,” said Assistant Director David J. Scott of the FBI Counterterrorism Division. “Disrupting funding mechanisms and seizing cryptocurrency from Hamas is one of the FBI’s many tools that we use in the fight against terrorism. The FBI will work with our partners to dismantle this terrorist group and protect the American people from their violent and horrific acts.”
“Countering terrorism remains the FBI’s number one priority. By successfully disrupting access to funds, we weaken their ability to function,” said Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office. “This success demonstrates that financial warfare is a critical component to fight terrorism. We will continue to do everything in our power to protect the American people and pursue justice by depriving terrorist organizations of the resources they need to continue their illicit activity.”
As alleged in court documents, a group chat claiming association with Hamas on an encrypted communications platform provided Hamas supporters worldwide with a changing set of at least 17 cryptocurrency addresses. Supporters were encouraged to donate money to those addresses. Those funds were sent into an operational wallet and laundered through a series of virtual currency exchanges and transactions by leveraging suspected financiers and over-the-counter brokers. More than a million dollars was raised and laundered using the laundering system and the virtual currency accounts described in the affidavit.
Included among the assets seized were cryptocurrency addresses valued at approximately $89,900 and three additional accounts containing cryptocurrency valued at approximately $111,500. These accounts were registered in the names of Palestinian individuals living in Turkey and elsewhere.
The FBI Albuquerque Field Office is investigating the case, in coordination with the FBI Counterterrorism Division and Cyber Division.
Assistant U.S. Attorney Tejpal Chawla for the District of Columbia, Trial Attorney Jacques Singer-Emery for the National Security Division’s National Security Cyber Section, and Trial Attorney Jessica Joyce of the National Security Division’s Counterterrorism Section are prosecuting the case.
Source: United States Department of Justice
Four individuals and one company pleaded guilty in three separate U.S. District Courts for their roles in various bid rigging and wire fraud conspiracies which targeted the sale of sports equipment to public schools throughout Mississippi and Louisiana. The schemes affected sales to hundreds of public schools in both states.
The individuals and company pleaded guilty between February and March of 2025. Yesterday, Patrick Joseph Stewart of Hattiesburg, Mississippi pleaded guilty to one count of bid rigging and one count of wire fraud affecting sales to at least 69 public schools in the Eastern District of Louisiana. In the Southern District of Mississippi, Maurice Daniel Bowering Jr., of Hattiesburg, Mississippi pleaded guilty to five counts of bid rigging affecting sales to at least 50 public schools on March 6; and Robert Tucker Craig of Starkville, Mississippi pleaded guilty to three counts of bid rigging affecting sales to at least 38 public schools and one count of obstruction for the deletion of related evidence on Feb. 19. Lastly, Robert Douglas Heflin of Starkville, Mississippi pleaded guilty to two counts of bid rigging affecting sales to at least 31 public schools on March 4; and Mississippi company Wilder Fitness Equipment Inc., pleaded guilty to two counts of bid rigging affecting sales to at least 60 public schools on Feb. 20, in the Northern District of Mississippi.
“School sports are integral to the development and upbringing of American children. From these opportunities, they learn the benefits of teamwork and open competition. Bid rigging, on the other hand, is the antithesis of American meritocracy. It is also patently unlawful,” said Acting Deputy Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The defendants here selfishly targeted school sports programs, depriving students of an opportunity to thrive. The Antitrust Division’s Procurement Collusion Strike Force has zero tolerance for bid collusion schemes, particularly when they target children.”
“The defendants rigged bids for school sports equipment which resulted in an unfair playing field,” said Acting U.S. Attorney Patrick Lemon for the Southern District of Mississippi. “The U.S. Attorney’s Office for the Southern District of Mississippi is committed to working with our law enforcement and Antitrust Division partners to protect school athletics and taxpayer dollars.”
“Financial fraud perpetrated against the U.S. government is a serious crime,” said Acting U.S. Attorney Michael M. Simpson for the Eastern District of Louisiana. “Particularly egregious, is fraud that undercuts government procurement processes and erodes public trust in the fair-bidding practice. These guilty pleas send a clear and decisive message that our office, along with our federal partners, will continue to protect the taxpayer by vigorously investigating and prosecuting all such corruption cases.”
“Bid rigging and the collusion that makes it possible drive up prices for taxpayers and will not be tolerated,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi. “We will continue our commitment to work with the FBI and to root out corruption.”
“This investigation underscores the FBI’s commitment to safeguarding public schools from criminal schemes that defraud the American people and exploit taxpayer money,” said Special Agent in Charge Robert Eikhoff of the FBI Jackson Field Office. “Stewart, Bowering, Craig, Heflin, and Wilder Fitness Equipment Inc. were in positions to help shape children’s learning, the benefits of physical fitness in living prosperous lives. Instead, these co-conspirators chose to abuse the trust given to them by stealing future opportunities from students in fraudulently filling their pockets with the hard-earned tax dollars schools are entrusted to invest in the development of America’s future leaders. The FBI will continue to work with our federal partners to relentlessly pursue and bring justice to individuals and companies who use fraudulent schemes to defraud our communities.”
According to court documents, Tucker, Bowering, Heflin, Stewart, and Wilder Fitness Equipment Inc. entered into conspiracies in which they agreed to submit complementary bids to public schools to obtain procurements for sports equipment and related services. The longest of the charged conspiracies lasted more than a decade. Two other co-conspirators, Charles Ferrell Trimm and Bradley D. Willcutt, previously pleaded guilty in the Southern District of Mississippi in May 2024 and September 2024, respectively.
The maximum penalty for the Sherman Act is 10 years in prison and a $1 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime. The maximum penalty for conspiracy to commit wire fraud is 20 years in prison, a criminal fine, and Court-ordered restitution. The maximum penalty for obstruction in violation of 18 U.S.C. § 1512(c) is 20 years in prison and a criminal fine of no more than $250,000. A federal district court judge will determine the sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
Today’s guilty pleas result from an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the school sports equipment industry being conducted by the Antitrust Division’s Washington Criminal Section and the Federal Bureau of Investigation. Assistant Chief Laura Butte; Trial Attorneys Jill Rogowski, Marc Hedrich, and Hannah Muller; and Senior Litigation Counsel Paul Torzilli are prosecuting the case.
Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.
Source: United States Department of Justice
A Pennsylvania man was sentenced to 15 and a half years in prison yesterday for defrauding investors, conspiring to defraud the IRS, filing false tax returns, employment tax fraud, wire fraud, obstruction, and other charges.
According to court documents and statements made in court, Joseph LaForte, of Philadelphia, engaged in a scheme to defraud investors using a fraudulent investment vehicle known as Par Funding. In total, LaForte and his co-conspirators caused an actual loss to investors exceeding $288 million.
LaForte also engaged in a series of federal tax crimes. LaForte and co-conspirators diverted approximately $20 million in taxable income from Par Funding to another entity controlled by LaForte and nominally owned by another, then filed false tax returns that did not report this income. He also received more than $9 million in cash kickbacks from a customer of Par Funding and did not report this income to the IRS on his individual tax returns. As a result, LaForte’s individual tax returns for the years 2016 through 2018 were false. He also paid off-the-books, cash wages to some employees of Par Funding. He did not report these wages to the IRS and did not pay employment taxes on wages paid to employees in cash. The total federal tax loss stemming from LaForte’s crimes exceeds $8 million. He also caused $1.6 million in state tax loss to the Pennsylvania Department of Revenue by falsely reporting that he and his wife were residents of Florida from 2013 through 2019, when in fact they resided in Pennsylvania.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney David Metcalf for the Eastern District of Pennsylvania made the announcement.
The FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General investigated the case.
Assistant U.S. Attorneys Matthew Newcomer, Sam Dalke, Eric Gill, and Patrick J. Murray for the Eastern District of Pennsylvania prosecuted the case. Trial Attorney Ezra Spiro of the Tax Division and Assistant U.S. Attorney John J. Boscia for the Eastern District of Pennsylvania assisted with the prosecution.