Category: US State of California

Source: US State of California

Two Florida men pleaded guilty this week to conspiracy to pay and receive illegal health care kickbacks and bribes.

According to court documents, Laurent Cassagnol, 43, and Heriberto Rivera, 43, both of Orlando, Florida, conspired to refer patients of the VA Community Care Program (VACCP) to Family Integrative Medicine of Orlando, LLC (FIMO) for acupuncture, chiropractic adjustments, and other holistic medical services. Rivera, the CEO of FIMO, admitted to paying kickbacks and bribes to Cassagnol, an Advanced Medical Support Assistant for VACCP, in exchange for Cassagnol steering VA patients to FIMO for medical services. Cassagnol admitted to accepting Rivera’s payments. As a result of the conspiracy, the VA and VACCP was billed for over $14 million in claims that were procured through the payment of kickbacks and bribes, of which over $11 million was paid. The investigation was the result of a complaint made to the VA Office of the Inspector General (VA-OIG) fraud hotline.

Cassagnol and Rivera both pleaded guilty to conspiracy to pay and receive kickbacks and bribes. Cassagnol and Rivera are scheduled to be sentenced on Nov. 5. Each defendant faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Rodney E. Crawford of the FBI Tampa Field Office; and Acting Special Agent in Charge Greg Wentz of the VA-OIG Southeast Field Office made the announcement.

FBI and VA-OIG are investigating the case.

Trial Attorneys Angela Benoit and Jody King of the Criminal Division’s Fraud Section are prosecuting the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: US State of California

The Justice Department’s National Fraud Enforcement Division today announced a series of significant fraud enforcement actions across the Southeastern United States, the product of robust federal-state partnerships with Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, and South Carolina. The charges announced today encompass 17 cases spanning the seven states. These recent cases involve over $350 million in intended losses and include cases involving SNAP benefits, Small Business Administration loans, housing benefits, and tax fraud. From July 4 alone, federal prosecutors charged cases reaching over $90 million loss and implicating 12 named defendants. The Division separately announced the formation of federal-state anti-fraud task forces in North Carolina, Mississippi, and Florida.

The Division additionally announced new federal-state cooperation agreements with this group of states to strengthen ongoing fraud enforcement efforts, following a recent roundtable that brought together 18 U.S. Attorneys Offices, seven State Attorneys General Offices, five federal law enforcement partners, and over 50 state officials.

“Defeating the fraud epidemic in our country requires all-hands-on-deck from our federal and state partners nationwide,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Whether it’s sharing intelligence, data, personnel, or priorities, partnering with state agencies directly strengthens our ability to identify those stealing taxpayer dollars. When federal prosecutors work alongside state agencies to root out fraud, fraudsters lose and the American people win.”

“Working alongside our federal and interstate partners, we are committed to combating fraud at every level. Our collaborative partnerships allowed us to uncover more than $20 million in Medicaid fraud claims during an operation known as Operation Border Wars,” said South Carolina Attorney General Alan Wilson. “My office also recently indicted six individuals accused of defrauding taxpayers and stealing jobs from hardworking South Carolinians by providing counterfeit employment documents to illegal aliens. The rule of law means something in South Carolina, and we will continue working with our law enforcement partners to dismantle these schemes and prosecute those responsible to the fullest extent of the law.”

“We appreciate the Trump Administration’s commitment to rooting out fraud in government healthcare programs, including the creation of a dedicated state-federal partnership to lead this fight,” said Alabama Attorney General Steve Marshall. “Thanks to the Administration’s serious commitment to ending waste, fraud, and abuse, we now have the tools and coordination needed to identify bad actors and hold them accountable. Together, we are protecting the integrity of Medicaid and the taxpayer dollars that fund it.”

“With the help of the Trump administration, the states are fighting back against benefits fraud,” said Louisiana Attorney General Liz Murill. “Since taking office, my administration has secured more than 100 convictions and $73 million in court-ordered restitution. Under the leadership of Acting Attorney General Blanche, Director Patel, and Administrator Oz, our partnership is holding criminals accountable and delivering real results for the taxpayers of Louisiana and the nation.”

“President Trump has challenged all of us to step up our efforts to fight fraud and protect American taxpayers from this grift,” said Mississippi Attorney General Lynn Fitch. “Partnerships like this one show that we are bringing everything to the table in this work. In that spirit, with the support of the U.S. Department of Justice, my office is standing up Joint Task Force Vigilance with our two U.S. Attorneys and the FBI to surge resources and personnel to make Mississippi safer, protect Mississippi taxpayers, and restore law and order. This first-of-its-kind task force will bring the full authority of our offices to bear on con artists, grifters, fraudsters, and scammers.”

Building a National Model of Federal-State Cooperation 

In connection with these fraud enforcement actions, the Fraud Division, U.S. Attorneys’ Offices, federal law enforcement officials, and state partners announced the following innovative steps to enhance federal–state cooperation to detect, investigate, and prosecute fraud:  

• The Fraud Division and Secretaries of State from Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina as well as State Treasurers from Florida, Mississippi, and South Carolina announced data sharing agreements that provide the Fraud Division access to publicly available corporate registration and public benefits payment data held by these state agencies. This data will help the Fraud Division proactively identify connections and patterns across both business entities and public benefits payment activity — cutting through the shell companies, layered structures, and complex financial trails that fraudsters rely on to conceal control and carry out largescale schemes.

Federal and State Partners Represented at the 2026 Southeast Fraud Enforcement Partnership Event

Alabama: Secretary of State Wes Allen and Chief Examiner Rachel Riddle.

Florida: Attorney General James Uthmeier, Secretary of State Cord Byrd, and Chief Financial Officer Blaise Ingoglia.

Georgia: Attorney General Chris Carr and Secretary of State Brad Raffensperger.

Louisiana: Attorney General Liz Murrill, Secretary of State Nancy Landry, Auditor Michael Waguespack, and Inspector General Angele Davis.

Mississippi: Attorney General Lynn Fitch, Secretary of State Michael Watson, Auditor Shad White, and Treasurer David McRae.

North Carolina: Attorney General Jeff Jackson and Auditor Dave Boliek.

South Carolina: Governor Henry McMaster, Attorney General Alan Wilson, Secretary of State Mark Hammond, Treasurer Curtis Loftis, Inspector General Sean Fay, and Director for South Carolina Department of Social Services Tony Catone.

U.S. Attorneys Offices: Northern District of Alabama, Middle District of Alabama, Southern District of Alabama, Northern District of Florida, Middle District of Florida, Southern District of Florida, Northern District of Georgia, Middle District of Georgia, Southern District of Georgia, Eastern District of Louisiana, Middle District of Louisiana, Western District of Louisiana, Northern District of Mississippi, Southern District of Mississippi, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, and District of South Carolina.

Federal Agencies: U.S. Department of Agriculture (USDA) Deputy Secretary Stephen Vaden, FBI Assistant Director Heith Janke, Homeland Security Investigations (HSI) Assistant Director James Harris, Small Business Administration Office of Inspector General William Kirk, and USDA Inspector General John Walk.

These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide.  The Department encourages every state across the country to partner with the Fraud Division on similar efforts.

Federal and State Partners Represented at the 2026 Southeast Fraud Enforcement Partnership Event

Cases

Alabama

Northern District of Alabama led by U.S. Attorney Phillip Williams, United States vs. Michael Shine. Michael Shine is a tax preparer based in the Birmingham area who owns and operates Shine’s Professional Services. He has filed and caused to be filed literally thousands of tax returns falsely claiming energy tax credits that were baseless and fraudulent, causing almost $70 million in loss as charged in a complaint.  

Example of “Self-Prepared” Attestation Seized During Search Warrant From United States vs. Michael Shine.

Middle District of Alabama led by U.S. Attorney Thomas Govan, United States v Kevin Padgett et al. Kevin Padgett and co-defendants were charged in a mail fraud, wire fraud, and money laundering conspiracy in connection with their scheme to sell approximately $7 million counterfeit U.S. Postage Stamps.

Southern District of Alabama led by U.S. Attorney Sean Costello, United States v. Nia Bradley, et al. Five defendants, Nia Bradley, Randy Burden, Steve Jones, Larry Knight, and Dejuan Lamar, board members and employees of the Prichard, Alabama Water and Sewer Works, created false invoices for work that was never performed and created fictitious construction companies for the purpose of defrauding the utility for a total loss amount of roughly $2.5 million. 

Florida

Northern District of Florida led by U.S. Attorney John Heekin, United States v. Lekishaan Huggins. The former manager of the Tallahassee Housing Authority used former tenants’ Personally Identifiable Information (PII) to fraudulently obtain U.S. Department of Housing and Urban Development (HUD) rent subsidies for a total case loss of just over $500,000. As charged, Huggins used fraudulently obtained funds to sustain her luxurious lifestyle, including vacations, buying luxury apparel and jewelry, and having a celebrity chef cater her private Christmas party.

Middle District of Florida led by U.S. Attorney Greg Kehoe, United States vs. Daniel Liburdi. Daniel Liburdi pled guilty in the Middle District of Florida to filing a false tax return and agreed to restitution of nearly $35 million and forfeiture including multiple properties in Miami Beach and the U.S. Virgin Islands and three luxury vehicles (Land Rover Range Rover, a Ferrari 812 and a Ferrari F8).  

Alleged Ferrari 812 and Ferrari F8 vehicles from United States vs. Daniel Liburdi.

Alleged Virgin Islands property from United States vs. Daniel Liburdi.

Alleged Miami Beach property from United States vs. Daniel Liburdi.

Southern District of Florida led by U.S. Attorney Jason Quiñones, United States vs. Rajaie Ali et al. Defendants Rajaie Ahmad Ali, Sami Jamhour, Cristian Amaro, and Adel Amro concocted a scheme to use willing food stamp recipients to sell their EBT stamp benefits at a discounted rate for cash. The scheme, launched in 2019, caused nearly $20 million in fraudulent EBT transactions at a Kwik Stop convenience store in Miami. Two of the indicted co-conspirators are foreign nationals.  Defendant Ali is even subject to a final order of removal from the United States.  

Alleged Kwik Stop location responsible for multi-millions in SNAP Benefits Fraud from United States vs. Rajaie Ali et al.

Georgia 

Northern District of Georgia led by U.S. Attorney Theodore Hertzberg, United States v. Ian Patrick Jackson. Defendant Ian Patrick Jackson pled guilty for running a fraud and money laundering scheme that stole more than $3 million in CARES Act funds administered by the SBA in the form of PPP and EIDL loans. Jackson has twice been convicted of previous fraud felonies, recruited at least nine business owners into his scheme to submit fraudulent applications, and spent the proceeds on personal expenses, including restaurant dining, spa services, phone and credit card bills, and travel to California, Texas, and Aruba.

Southern District of Georgia led by U.S. Attorney Meg Heap, United States v Melanie Charise Thompson and Toriono Laselle Byrd. Defendant Thompson was indicted for orchestrating a scheme to defraud the Hinesville Housing Authority (HHA) of millions of dollars by using HHA funds to pay her former boyfriend for work that he never completed or paid him far in excess of what he should have been paid for work that was completed, sometimes in return for kickbacks.  Purchases from fraud proceeds included custom jewelry worth over $100,000, a gold bracelet, a diamond ring, a Porsche Panamera, a Cadillac Escalade, a Bently Flying Spur, real estate, a hot tub, and tickets to a Janet Jackson concert, reaching nearly $3 million in loss. 

Louisiana 

Eastern District of Louisiana led by U.S. Attorney David Courcelle, United States vs. Spivey. Spivey was sentenced for his role in a conspiracy to commit health care fraud. Spivey conspired with his codefendant, Jamie McNamara, to fraudulently submit $174 million in fraudulent claims to Medicare for medically unnecessary cancer genetic testing and cardiovascular genetic testing. The genetic tests Medicare patients were lured into did not provide them with any answers on their predisposition to life threatening illnesses and cost taxpayers millions of dollars.

Western District of Louisiana led by U.S. Attorney Zach Keller, United States v Patel et. al. Defendants, including former law enforcement officials, spent nearly 10 years manufacturing false crime reports as part of a visa-fraud scheme. The operation netted the officers $5,000 per “victim” and helped hundreds of foreign nationals secure U visas for false crimes.

Middle District of Louisiana led by U.S. Attorney Kurt Wall, United States v Chakesha Scott et al., Chakesha Scott was the CEO of Impact Charter School in Baker Louisiana, which received state and federal funds. Instead of using those funds to benefit the students, Scott and her indicted co-conspirators diverted nearly $1.5 million in federal funds to pay off family members for overinflated contracting invoices, buying herself luxury vehicles, and even paying for her personal travel expenses.  

Scott on personal travel in Egypt allegedly using taxpayer funds from United States v Chakesha Scott et al.

Mississippi 

Northern District of Mississippi led by U.S. Attorney Scott Leary, United States v. Lakieth Faulkner et al. Lakeith Faulkner was an attorney and an employee of the Small Business Administration (SBA) who, as a part of his actual job, worked with borrowers and was uniquely positioned to understand the Economic Injury Disaster Loan (EIDL) approval process. Faulkner devised a kickback scheme with co-conspirators including Tierra Scott, a former IRS employee, to generate more than $11.5 million in fraudulent loan payments by the SBA.  

Southern District of Mississippi led by U.S. Attorney Baxter Kruger, United States v. Qadir Shabazz, et al. As alleged, federal inmates housed at the Yazoo Federal Correctional Complex conspired to steal unemployment insurance benefits and EIDL funds using falsified identities, generating approximately $4.3 million in losses.  Trial is set for February 2027.

North Carolina 

Western District of North Carolina led by U.S. Attorney Russ Ferguson, United States v. Dumitru. Two Romanian brothers illegally in the United States pled guilty to wire fraud charging them with orchestrating a fraud scheme involving SNAP benefits affecting victims across multiple states, causing nearly $766,000 in loss. A victim reported that she was shopping with her family on their monthly grocery run for approximately $700 of SNAP-eligible items. Because the defendants had used her SNAP benefits, the transaction was denied, and the victim was unable to purchase food or school supplies for her family.

Middle District of North Carolina led by U.S. Attorney Dan Bishop, United States v. Adedayo Afolabi Fateru. Fateru pled guilty as a member of a money laundering ring involving proceeds of various fraud schemes including false applications for Economic Injury Disaster Loans (EIDL) and false applications for unemployment benefits. He caused nearly $1.7 million in loss. 

Eastern District of North Carolina led by U.S. Attorney Ellis Boyle, United States v. Mitchell et al. A Robeson County woman (along with seven co-conspirators) who was the owner of a North Carolina tax return preparation business pled guilty to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, causing nearly $25 million in loss. 

South Carolina

District of South Carolina led by U.S. Attorney Bryan Stirling, United States v. Misty Dawn Woody. Misty Dawn Woody was charged by indictment for making false statements relating to healthcare matters.  In her role as an employee for Vital Care, a medical patient transport service, Woody allegedly copied and forged a physician’s signature on over one hundred certification forms for patients that were no longer under that physician’s care.  She submitted those forms to Medicare causing over $1.8 million in false and fraudulent billing. 

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

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. 

Source: US State of California

Access DX Laboratory, located in Houston, Texas, its former CEO Michael Stewart, and Florida businessman Harold Shatz, have each entered into settlements and will pay a combined total of $36.4 million to the United States to resolve allegations that they violated the False Claims Act (FCA) by paying kickbacks and billing Medicare and Medicaid for medically unnecessary genetic testing.

The United States alleged that, from January 2018 through January 2020, Access DX, Stewart, and Shatz paid kickbacks to marketers in return for referrals of patients for genetic testing, unbundled billing codes for genetic testing, paid telemedicine providers for false and fraudulent doctors’ orders, and submitted and caused the submission of false claims for genetic testing.   

“Healthcare referrals must reflect the best decision for patients, not the influence of kickbacks,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This resolution demonstrates the Department’s commitment to hold accountable both corporations and individuals who profit from improper kickback arrangements and who burden federal healthcare programs with claims for medically unnecessary services.”

“This settlement sends a clear message that we will not tolerate fraudulent schemes that waste taxpayer dollars and undermine trust in our medical system,” said U.S. Attorney Theodore S. Hertzberg for the Northern District of Georgia. “We will aggressively pursue any provider or entity that seeks to exploit federal programs through excessive billing and illegal kickbacks.”

“Kickbacks and medically unnecessary genetic testing schemes not only drain taxpayer-funded federal health care programs, but undermine the integrity of our U.S. health care system and drive up health care costs for all of us,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS OIG will continue to work with our law enforcement partners to aggressively pursue health care fraud and protect Medicare, Medicaid, and the people who rely on them.”

In connection with its settlement, Access DX entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires Access DX to implement auditing and accountability provisions, including implementation of a robust compliance program, training and education requirements, and a review of arrangements with referral sources.

On June 24, Stewart agreed to plead guilty to conspiracy to defraud the United States and to pay and receive health care kickbacks in violation of 18 U.S.C. § 371. United States v. Stewart, Case No. 4:22-cr-328 (S.D. Tex.). On Oct. 15, 2025, Shatz agreed to plead guilty to conspiracy to defraud the United States and to pay and receive health care kickbacks in violation of 18 U.S.C. § 371. United States v. Shatz, No. 4:24-cr-330 (S.D. Tex.). Both men entered into civil FCA settlements at the time of their pleas.

The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Douglas Green, president of a Massachusetts marketing company hired to market genetic testing to Medicare and Medicaid beneficiaries. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned U.S. ex rel. Green v. Access DX Lab LLC, et al., No. 1:19-cv-2845 (N.D. Ga.). The settlements provide for the whistleblower to receive a $7.2 million share of the total settlement amount. 

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Northern District of Georgia, with assistance from HHS-OIG.

The matter was handled by Fraud Section Senior Litigation Counsel Laurie A. Oberembt of the Justice Department’s Civil Division and Assistant U.S. Attorney Neeli Ben-David for the Northern District of Georgia.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

Except to the extent admitted by Stewart and Shatz in their plea agreements, the claims resolved by the settlement are allegations only and there has been no determination of liability.

Source: US State of California

SAN DIEGO — As part of a joint investigation through the California Department of Justice’s (DOJ) San Diego Human Trafficking Task Force (SDHTTF), California Attorney General Rob Bonta today announced the results of a three-day sting operation — dubbed Operation Iron Justice — that focused on quelling the demand for commercial sexual exploitation surrounding large-scale events. From July 22 to 24, 2026, SDHTTF conducted a demand reduction operation that resulted in 27 arrests of sex buyers. Additionally, SDHTTF recovered 7 adult and 2 juvenile trafficking victims who were provided with support services.

“The ugly truth is that the demand for these illegal services fuels the supply of commercial sex operations and human trafficking. No matter if it’s around large-scale conventions or anywhere else, solicitation is a crime and California stands ready to hold offenders accountable,” said Attorney General Rob Bonta. “My office is proud to lead the San Diego Human Trafficking Task Force to confront demand and support survivors. Our ongoing efforts will continue to keep communities safe and achieve meaningful results that protect Californians.”

“The San Diego Human Trafficking Task Force works to disrupt sex trafficking in our community at every level — local, state and federal,” said U.S. Attorney Adam Gordon. “Operation Iron Justice showcases that tremendous joint effort. We will not hesitate to prosecute traffickers with the available federal charges that carry 10-year and 15-year mandatory minimum sentences.”

“Homeland Security Investigations (HSI) participation in the San Diego Human Trafficking Task Force operation reflects our unwavering commitment to identifying victims, holding perpetrators accountable, and working alongside our law enforcement partners to protect the community,” said Kevin Murphy, Special Agent in Charge of HSI San Diego. “The recovery of victims, including juveniles, underscores the importance of coordinated, victim-centered enforcement efforts.”

“Operation Iron Justice focused on those who were buying human beings for sex as if they are products for sale,” said San Diego County District Attorney Summer Stephan. “The message we sent was loud and clear that human beings are not for sale and that anyone who engages in the crime of buying a person for sex will be held accountable. The arrest of 27 sex buyers during this large-scale gathering sends a clear message that purchasing sex is not a victimless crime, it drives an illicit industry that generates more than $810 million a year in San Diego County and profits from exploitation of children and adults. Without sex buyers, there is no human trafficking. By holding buyers accountable, we reduce demand, deter future crimes, and help protect victims. I am proud of the relentless work of the San Diego Regional Human Trafficking Task Force, my office’s Sex Crimes and Human Trafficking Division, and our law enforcement partners who work every day to recover victims and ensure both traffickers and buyers face justice.”

“Operation Iron Justice reflects the strong partnership between law enforcement agencies and our shared commitment to protecting the most vulnerable in our community. The San Diego County Sheriff’s Office is proud to stand alongside our local, state, and federal partners to stop those who try to profit from exploitation. Just as important is ensuring survivors receive the support and care they deserve. The recovery of adult and juvenile victims during this operation underscores why this work is so critical,” said San Diego County Sheriff Kelly A. Martinez. “Human trafficking is a crime that often goes unnoticed. Every successful recovery is a life changed. As Sheriff, I’m grateful to the investigators and service providers who worked tirelessly to bring these victims to safety and connect them to essential resources.”

“The demand for commercial sex is what makes trafficking profitable, and in the City of San Diego, buyers will be held accountable. My office filed 81 cases against sex buyers so far this year, leveraging state law that now targets buyers directly,” said San Diego City Attorney Heather Ferbert. “Accountability is only half the job: our office operates the San Diego Family Justice Center, Your Safe Place, where survivors of trafficking can get help at no cost. I’m grateful to Attorney General Bonta and our Task Force partners for this collaboration.”

“We are a proud member of the San Diego Human Trafficking Task Force. Working together, we successfully disrupted human trafficking here in San Diego,” said San Diego Police Chief Scott Wahl. “These operations demonstrate our continued commitment to recovering victims and focusing on the buyers who drive the demand for this illegal activity.”

Operation Iron Justice was part of an ongoing strategy to address human trafficking and sexual exploitation by concentrating on the demand for commercial sex services. During the operation, agents went undercover to initiate contact with sex buyers throughout San Diego County, resulting in 27 arrests for solicitation, loitering for purposes of solicitation, or other related offenses. Suspected buyers were taken into custody and transported to the San Diego Central Jail where they were booked. During the course of the operation, SDHTTF also recovered 7 adult and 2 juvenile trafficking victims, including a 16-year-old trafficking victim missing from San Bernardino County. Potential victims and survivors were offered access to resources and supportive services.

Large-scale events, which bring thousands of people together, are a perfect opportunity to raise awareness of human trafficking, a crime that comes in many forms, including sex trafficking, forced labor, and domestic servitude resulting from force, fraud, fear, or coercion. Solicitation is a crime subject to jail time and monetary penalties because the demand for commercial sex is a driving force that contributes to human trafficking, as human traffickers profit from forced or coerced commercial sex work. Everyone can play a role in stopping this unlawful activity by being aware of the signs and reporting any suspicious activity.

Photos from the operation are available here: Image 1, Image 2, Image 3, Image 4.

DOJ Victims’ Services Unit (VSU) works in conjunction with victim service providers across the state to provide victim-centered, trauma-informed, and culturally-sensitive support services to all crime victims, including underserved, at-risk, underrepresented, and vulnerable populations. More information about VSU is available at oag.ca.gov/victimservices and by calling (877) 433-9069 or visiting oag.ca.gov/victimservices/contact.

If you or someone you know is being forced to engage in any activity and cannot leave, you can call the National Human Trafficking Hotline at 1-888-373-7888 to access help and services. If you or someone else is in immediate danger, call 9-1-1. Additional information and resources to support survivors of human trafficking is available at oag.ca.gov/human-trafficking.

SDHTTF is a cooperative effort led by the California Department of Justice, alongside the California Department of Corrections and Rehabilitation, California Highway Patrol, Chula Vista Police Department, Federal Bureau of Investigation, Homeland Security Investigations, National City Police Department, Naval Criminal Investigative Service, San Diego City Attorney’s Office, San Diego County District Attorney’s Office, San Diego County Probation Department, San Diego County Sheriff’s Office, San Diego Police Department, Southwest Border High Intensity Drug Trafficking Area, and the U.S. Attorney’s Office for the Southern District of California. In addition to serving as the lead agency on the SDHTTF, the California Department of Justice has three regional Human Trafficking and Sexual Predator Apprehension Teams across the state.

Source: US State of California

A federal jury has convicted Hadi Matar, 28, of Fairview, New Jersey, of attempting to provide material support to Hizbollah, a designated foreign terrorist organization, engaging in an act of terrorism transcending national boundaries, and providing material support to terrorists. 

“Matar spent more than a year immersing himself in Hizballah’s violent ideology and preparing to act on a fatwa issued by Iran’s Ayatollahs calling for Mr. Rushdie’s murder,” said Assistant Attorney General for National Security John A. Eisenberg. “His brutal attack on Mr. Rushdie during a peaceful speaking event is a chilling reminder of the global reach of Iranian terrorism. With today’s verdict, justice has been done, and Matar will pay for his crimes.”

“Hadi Matar, who was born and raised in the United States, chose to align his values with the terroristic values of the leaders of Iran, which often promote violence, and in this case, the call for murder,” said U.S. Attorney Michael DiGiacomo for the Western District of New York. “The defendant spent months planning and preparing to carry out what he hoped would be the execution of Salman Rushdie and possibly follow in the footsteps of martyrs he admired. Instead, his attempted act of terror failed, and Salman Rushdie survived, thanks to courageous members of the public and law enforcement, who saved Rushdie and captured Matar.”

“This was not an impulsive act; Matar conducted a violent attack in support of a designated foreign terrorist organization and wanted to carry out a fatwa against the victim,” said Assistant Director Jarod Brown of the FBI’s Counterterrorism Division. “With today’s verdict, this assailant will pay the price of engaging in terrorism. The FBI and our partners are committed to bringing terrorists and all who support them to justice.”

On Aug. 12, 2022, Matar attempted to murder author Salman Rushdie in an effort to carry out a fatwa calling for Rushdie’s execution because of a novel published by Rushdie in 1988. That fatwa was issued in 1989 by the Supreme Leader of Iran, Ruhollah Khomeini; reaffirmed in 2017 by the Supreme Leader of Iran, Ali Khamenei; and endorsed in a 2006 speech by Hizballah’s Secretary General, Hassan Nasrallah. 

According to evidence presentenced by the government, Matar spent over a year researching the fatwa, including its continuing validity, before deciding to carry it out while Rushdie spoke at the Chautauqua Institution in Mayville, NY. Prior to the attack, Matar discussed the fatwa — and Hizballah’s endorsement of the fatwa — with individuals located in Iran, Australia, and Canada. He also created videos about the fatwa, with titles such as “Rushdie_Fatwa 2.0” and “Rushdie_Fatwa 1.6,” which combined videos about the fatwa with video of Hassan Nasrallah endorsing the fatwa in 2006. 

Matar surrounded himself with symbols of Hizballah martyrs before the attack. He traveled to the Chautauqua Institution using the name “Hassan Mughniyeh,” and carried a false driver’s license bearing the same name. Matar’s false name contained the first name of Hassan Nasrallah, Hizballah’s Secretary General, and the last name of Imad Mughniyeh, the former head of Hizballah’s External Security Organization, who was responsible for planning a number of Hizballah’s terrorist attacks. On the morning of the attack, Matar visited a website run by Hizballah and took screenshots of Hizballah martyrs who had died in the month of August.  

Matar faces a maximum penalty of life in prison when sentenced on Nov. 3 before U.S. District Judge Richard J. Arcara, who presided over the trial. 

Assistant U.S. Attorneys Timothy C. Lynch and Charles M. Kruly for the Western District of New York and Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section prosecuted the case. The case was investigated by the Buffalo Office of the FBI, under the direction of Special Agent-in-Charge Allen D. Davis, II, and the New York State Police, under the direction of Major Amie Feroleto. Additional assistance was provided by the Newark, NJ, office of the FBI and the Bergen County Prosecutor’s Office.

Source: US State of California

Murrell Deela, a former Bureau of Indian Affairs (BIA) officer, was sentenced Wednesday to 14 years in prison for sexual abuse involving a minor and to lying to federal investigators.

According to records filed in the case, on Aug. 7, 2024, Deela, then 29 years old, was on duty and acting in his official capacity as a BIA officer in the Northern Cheyenne Indian Reservation, when he encountered the minor victim. Deela apprehended the victim and placed her in the back of his patrol vehicle. Instead of driving the teenager to her family’s house, Deela drove the minor to an alternate location. Deela then engaged in sexual acts with the minor victim without the victim’s consent. The minor victim disclosed the victimization the following day, and the FBI’s analysis of the evidence provided additional facts that corroborated the minor’s outcry.

“The vast majority of federal law enforcement officers carry out their duties and responsibilities with exceptional skill and courage,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “But when those tasked with enforcing the law violate their duty by sexually assaulting individuals in their care and custody, especially minor victims, the Department of Justice will hold them fully accountable. Today’s sentence reflects the principle that those who abuse their power by targeting children for sexual gratification will be met with the full force of the law.” 

“The victim showed a tremendous amount of courage coming forward to help ensure Mr. Deela was held accountable,” said Special Agent in Charge Justin Gerken of the FBI Billings Field Office. “Sexual abuse of a minor is a devastating crime, only compounded by an offender’s attempt to deceive investigators. No badge or title places anyone above the law and we are committed to pursuing justice for victims.”

Several days after the incident, Deela was instructed to bring his patrol vehicle to the BIA station for evidence collection. Hours prior to the scheduled report time, Deela reported that his patrol vehicle was on fire. The patrol vehicle and its video system were severely burned.  An investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined the patrol vehicle was set on fire intentionally.

Following the incident, Deela wrote a false report omitting that he had driven the minor victim to the alternate location. When interviewed by the Federal Bureau of Investigation (FBI), Deela falsely told agents that he drove the minor directly to her family’s home and had not made any other stops. When confronted with evidence, Deela later admitted that he had driven the minor to an alternate location.

The case was investigated by the FBI and ATF. Assistant U.S. Attorney Richard Lee for the District of North Dakota, Trial Attorney Taylor Payne of the Justice Department’s Civil Rights Division, and former Senior Sex Crimes Counsel Tara Allison prosecuted the case.

Source: US State of California

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert reminding Californians about sham health insurance plans offered by some health care sharing ministries (HCSMs). Historically, HCSMs were composed of members of a particular religious community who contributed money to share catastrophic or unexpected healthcare costs. Due to congressional Republicans’ decision to allow the Affordable Care Act’s (ACA) enhanced premium subsidies to expire on December 31, 2025, health insurance premiums have soared for many Americans, and millions have lost their coverage as a result. Some HCSMs may use this as an opportunity to misleadingly advertise HCSM plans as affordable alternatives to comprehensive ACA-compliant healthcare coverage. But Californians should be aware that HCSMs won’t cover preexisting conditions or guarantee coverage for medical costs or services.

“Health care sharing ministries do not provide the same protections as Covered California plans, and that difference can matter the most in times of medical need,” said Attorney General Bonta. “Without comprehensive health insurance, an unexpected illness or serious accident could leave you responsible for substantial medical bills. Even as congressional Republicans and the Trump Administration continue to undermine the Affordable Care Act, Covered California plans can still provide affordable, quality health insurance options, giving Californians access to the coverage they deserve.” 

Before passage of the ACA, some communities used HCSMs to pool money for members facing a medical crisis. After the passage of the ACA, bad actors capitalized on the fact that HCSMs were exempt from many ACA requirements, including the requirements to cover preexisting conditions, provide 10 essential health benefits (such as maternity care, mental health, and prescription drugs), and limit out-of-pocket costs. These bad actors advertised their HCSM plans as low-cost alternatives to ACA-compliant health insurance — but the HCSM plans were significantly less comprehensive, leaving many consumers underinsured. 

Many entities that claim to be HCSMs are operating in California illegally because they sell insurance without required consumer protections, without a license from the California Department of Insurance, and falsely advertise their plans. The Attorney General’s Office has entered into settlements with the Alliance for Shared Health, Sedera Inc., and The Aliera Companies Inc., including its principals and affiliate, for misleading California consumers into purchasing their products. These settlements require these companies to stop selling health plans in the state. But these are not the only bad actors.

There are several important factors to consider when comparing an HCSM plan with a traditional health insurance plan:

• Read the disclosures and member guidelines carefully. HCSMs often use language closely mimicking traditional health insurance to confuse consumers. For example, like Covered California plans, many HCSMs advertise gold, silver, and bronze “plans.” Because of the confusion, consumers may not realize they have enrolled in an HCSM instead of traditional health insurance until coverage is rejected.
• Understand what’s excluded. HCSMs often have coverage limits or exclusions for preexisting conditions and essential health benefits, including mental healthcare, pregnancy or maternity care, and preventive services. This means that if you have a preexisting or chronic medical condition, you could be responsible for tens of thousands of dollars or more in medical costs because the HCSM may not cover those costs.
• Consider your financial risk. Think about whether you could afford significant medical bills if they were only partially covered or not covered at all. Some HCSMs’ monthly payments may be cheaper than traditional health insurance, but those savings often come at a price. The prices are lower because they may not pay your medical costs even though you have made all your monthly payments.

A health insurance plan through Covered California provides the protections of the ACA. Consumers can enroll now and do not need to wait for open enrollment in the fall. Visit coveredca.com to find the plan that works best for you and your family. In addition, Medi-Cal, California’s Medicaid program, provides low-cost or free health coverage to eligible Californians. Many Californians may qualify based on their income or household circumstances, and applying is free. Visit dhcs.ca.gov/medi-cal to find out more. 

Attorney General Bonta continues to oppose federal efforts that drive up the cost of healthcare. In March 2026, Attorney General Bonta co-led a coalition of 19 attorneys general in submitting a comment letter responding to a proposed rule by the U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) that creates new hurdles that will significantly reduce healthcare enrollment and drive up consumers’ health insurance premiums and out-of-pocket costs. And in July 2025, Attorney General Bonta co-led a multistate coalition in a lawsuit challenging an unlawful final rule promulgated by HHS and CMS that would create significant barriers to obtaining healthcare under the ACA.

If you believe you have been the victim or target of suspicious marketing by a HCSM, please immediately file a complaint at oag.ca.gov/report.