In One Week, DOJ’s New Fraud Division Secures $300M in Funding for Prosecutorial Support While Announcing More Indictments, Convictions, and Sentences Representing Millions In Taxpayer Fraud

The Justice Department’s National Fraud Enforcement Division announced the following actions from across the country to hold individuals accountable for schemes that attempted or succeeded in defrauding the American taxpayers.

“Our message is clear: Steal from the American taxpayer, and you will answer to federal prosecutors," said Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division. “With our partners nationwide, we are holding criminals accountable and protecting taxpayer money. We will leave no stone unturned in our war against fraud.”

Notably, on April 22^nd, the Justice Department announced the availability of $300 million in funding to prevent and prosecute fraud and other crimes nationwide. This grant program will strengthen investigative and prosecutorial capacity, expand intergovernmental coordination, and enhance the ability of jurisdictions to investigate and prosecute fraud and other crimes.

Friday, April 24

A New York man was sentenced to five years in prison for conspiring to launder the proceeds of a $24.4 million pharmacy fraud scheme. The defendant laundered the proceeds of the scheme through various trading companies, which gave the appearance of legitimate business, facilitated the kickbacks and bribes, and distributed profits among the pharmacies’ owners.

A West Virginia man was sentenced to five years of federal probation after admitting that he obtained a $2 million loan through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for his business and instead converted at least $1.4 million of the proceeds for his personal enrichment.

Thursday, April 23

The Criminal Division, D.C. U.S. Attorney’s Office, and their law enforcement partners announced a series of coordinated actions by the Scam Center Strike Force against overseas criminal organizations that have defrauded Americans of billions of dollars. These actions include charges against two Chinese nationals and $700 million in restrained cryptocurrency.

A Missouri man pleaded guilty to wire fraud in a scheme to fraudulently obtain two Paycheck Protection Plan (PPP) loans totaling $92,233.32, guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

A Missouri woman was sentenced to 41 months in prison for fraudulently obtaining $2.3 million in funds intended to feed hungry Missouri children.

Wednesday, April 22

A Washington woman was arraigned in the U.S. District Court in Tacoma for multiple counts of wire fraud and SNAP benefit fraud, resulting in more than $600,000 loss to federal nutrition program. A man in Maryland pleaded guilty to bank fraud after admitting to fraudulently obtaining $160,000 in COVID-19 relief funds and attempting to obstruct justice. He faces a maximum of 30 years in federal prison for bank fraud.

Five New Orleans men were indicted for violating the Federal Controlled Substances Act, the Federal Gun Control Act, and committing bank fraud.

A D.C. woman was sentenced to 11 months in prison for her role in a years-long conspiracy to steal more than $393,340 from her nonprofit employer by making unauthorized personal purchases on the organization’s corporate credit card.

A Tacoma woman was arraigned for multiple counts of wire fraud and SNAP benefit fraud,  resulting in more than $600,000 in loss to the federal nutrition program.

A Missouri medical doctor was arrested on an indictment that accuses him of defrauding Medicare and Medicaid and providing prescription drugs to friends, people suffering from substance use disorders and those with whom he had sexual relationships.

A Florida woman was indicted by a federal grand jury charging her with two counts of wire fraud involving Small Business Administration Paycheck Protection Program funds.

Tuesday, April 21

A resident of Erie, Pennsylvania was indicted by a federal grand jury in Erie on charges of wire fraud and theft of government property, accepting bribes to approve more than $500,000 in fraudulent unemployment compensation claims. 

Monday, April 20

Five Romanian nationals have been charged for their alleged roles in a conspiracy to steal nearly $1 million worth of food assistance benefits from low-income families and individuals in Ohio and California. A Florida woman who orchestrated a scheme to fraudulently obtain approximately $465,489 in COVID-19 relief funding was sentenced to 18 months’ incarceration in Newark federal court.

A Cayman national who renounced his U.S. citizenship pleaded guilty to evading payment of more than $1.5 million of federal income tax liabilities. His sentencing will be scheduled at a later date. He faces a maximum penalty of five years in prison, as well as restitution and monetary penalties.

A New York man was sentenced to 15 months in prison for defrauding the United States Small Business Administration (SBA) of approximately $1.1 million in loans awarded under the COVID-19 Economic Injury Disaster Loan (EIDL) program.

A Dominican national unlawfully residing in Brockton, Mass., has been arrested and charged with healthcare benefit fraud and aggravated identity theft.

A Jefferson Parish resident was sentenced to 70 months in prison for obtaining over $350,000 in funds through numerous Paycheck Protection Program (PPP) loans using falsified tax forms, and also fraudulently obtained Emergency Rental Assistance Program (ERAP) funds in the names of numerous purported renters.

A Florida man was sentenced to 24 months in prison for his role in a $33 million health care fraud and kickback scheme in Newark, New Jersey.

Friday, April 17

A Kauai man was sentenced to 14 months in prison following his guilty plea for making a false statement to the Small Business Administration (SBA) for $1.4 million in funds.

A Detroit surgeon was sentenced to 12 months in prison for his involvement in a scheme to submit fraudulent claims to Medicare for psychotherapy services.

Six St. Louis area residents were indicted for their involvement in a $8.3 million pandemic fraud scheme, and three were arrested.

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.

Updated April 24, 2026