Nidia Roxana Maradiaga-Flores (28), an illegal alien from Honduras, has been sentenced by U.S. District Judge Steven D. Merryday to two years and two months in federal prison for aggravated identity theft, false representation of a Social Security number, and making a false claim of United States citizenship for employment purposes. Maradiaga-Flores was found guilty on January 14, 2026. United States Attorney Gregory W. Kehoe made the announcement.
According to testimony and evidence presented at trial, Archer Western-de Moya Group Joint Venture II (Joint Venture) is enrolled in E-Verify, a web-based system through which employers electronically confirm the employment eligibility of their employees. Maradiaga-Flores was an illegal alien from Honduras with no lawful status in the United States. On March 23, 2022, Maradiaga-Flores applied for employment with the Joint Venture in Pinellas County and filled out an I-9 form for use in the E-Verify system. On that form, Maradiaga-Flores falsely identified herself as a United States citizen and used another person’s means of identification to defeat the E-Verify system.
This case was investigated by Homeland Security Investigations, the Department of Transportation – Office of Inspector General, the Social Security Administration–Office of the Inspector General, the United States Border Patrol, the Department of Labor – Office of Inspector General, the Florida Department of Law Enforcement, and the Pinellas County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Joseph Wheeler III and Assistant United States Attorney Karyna Valdes.
]]>Treivorn McLeod, 25, of Mary Esther, Florida, pleaded guilty in federal court to one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud, and conspiracy to commit of money laundering. The plea was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “Fraudsters will try every angle and scheme to steal money from innocent, unsuspecting victims, so it remains of critical importance to educate the general public about these fraud threats to prevent more of our citizens from being victimized. Thanks to the excellent investigative work by our federal law enforcement partners and the aggressive prosecution by my office, this scheme has been dismantled and this fraudster finds himself in federal prison where he belongs.”
Between June 1, 2022, and January 29, 2024, the defendant was part of a criminal conspiracy that defrauded victims by falsely claiming that the victims had won millions of dollars in the Publisher’s Clearing House lottery and the American Cash Rewards lottery. The conspiracy falsely told the victims that, to collect their winnings, the victims would have to pay fees and costs in advance. However, none of the victims received any money or prizes as promised after sending these fraudulent fee payments. In total, the defendant’s criminal conspiracy defrauded victims of approximately $530,000.
The defendant faces up to 80 years’ imprisonment.
The case involved a joint investigation by the Air Force Department of Special Investigations, Homeland Security Investigations, Internal Revenue Service-Criminal Investigations, Social Security Administration Office of Inspector General, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
Sentencing is scheduled for August 24, 2026, in Pensacola, Florida before United States District Judge M. Casey Rodgers.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit https://www.justice.gov/usao-ndfl.
]]>BOSTON – A Charlton, Mass. woman pleaded guilty today in federal court in Worcester to fraudulently obtaining Social Security benefits and pension payments.
Gina M. Cummings, 61, pleaded guilty to one count of bank fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 20, 2026. In December 2025, Cummings was arrested and charged.
From January 2020 through July 2025, Cummings fraudulently obtained approximately $110,428 in Social Security benefits, private pension payments and COVID Economic Impact Payments. Cummings had access to the checkbook of a Social Security beneficiary and pensioner who died in August 2019. She failed to report the beneficiary’s death to the Social Security Administration, the pension plan and the bank where the funds were deposited. Instead, Cummings accessed the improperly paid funds by forging the deceased beneficiary’s name on 84 checks and regularly depleted the account funds through recurring bill payments.
The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Leah B. Foley and Amy Connelly, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement. The case is being prosecuted by Special Assistant U.S. Attorney James J. Nagelberg and the Worcester Branch Office.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.
Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is 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.
]]>BOSTON – A Gardner woman pleaded guilty today in federal court in Worcester to fraudulently receiving Social Security disability benefits.
Leidy E. Otero, 43, pleaded guilty to one count of receipt of stolen government money or property and one count of Social Security fraud – concealment. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 27, 2026. Otero was charged in April 2026.
In 2011, Otero applied for and began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA) as the representative payee for two other individuals based on Otero’s limited income and resources. In assessing a married individual’s eligibility for SSI, the income and resources of the applicant’s spouse is considered if they live together. If an applicant is awarded SSI, they have a continuing obligation to notify SSA of any changes in their marital status, living arrangements and household income and resources.
In July 2014, Otero reported to SSA that she was married, but stated that she did not live with her husband. After that July 2014 report, Otero’s husband became part of the household and Otero did not notify SSA as required. At all times during the charged period, Otero’s husband’s income exceeded the SSI limits. Had Otero accurately reported her living arrangements, her husband’s income would have made her ineligible for SSI when they lived together.
The charge of receipt of stolen government money or property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of Social Security fraud – concealment provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley and Amy Connelly, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement. The case is being prosecuted by Special Assistant U.S. Attorney James J. Nagelberg and the Worcester Branch Office.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.
Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is 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.
]]>ST. LOUIS – A man from St. Louis has been accused of stealing $735,137 from a retired St. Louis teacher.
Michael N. Jones, 40, was indicted April 29 with eight counts of wire fraud. He pleaded not guilty Monday.
The indictment says Jones was named as the victim’s power of attorney in March of 2023, and began stealing from her that same month. He made over $12,000 in purchases using her checking account and used her credit card for OnlyFans purchases, the indictment says. The victim was admitted to an assisted living facility on April 25, 2023. Jones put the proceeds of the sale of her home and two certificates of deposit into her checking account, and used that account to buy four properties in St. Louis, one in Hillsboro and two in East St. Louis, the indictment says. He also transferred $20,000 to his personal bank account and $140,000 to his Cash App account, using the Cash App money for food, trips, life coaching and OnlyFans, the indictment says.
From April 2024 to November 2024, Jones made only one payment to her assisted living facility and the victim was evicted owing $38,535, the indictment says. In November of 2024, Jones moved her into another facility but failed to pay costs that grew to $52,502 a year later, it says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Wire fraud is punishable by up to 20 years in prison, a fine of up to $250,000 or both.
The U.S. Secret Service, the Missouri Department of Health and Senior Services and the Social Security Administration Office of Inspector General investigated the case. Assistant U.S. Attorney Jolene Taaffe is prosecuting the case.
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]]>The audit, Follow-up on Cost-benefit Analysis of Processing Low-dollar Overpayments, reviewed SSA’s efforts to implement prior recommendations related to capturing the average cost of collecting overpayments and determining whether additional actions could improve the processing of low-dollar overpayments.
SSA previously agreed to update its methodology for calculating the average cost to collect overpayments and to reevaluate its process for pursuing overpayments when collection costs exceed the amount owed. However, as of the date of the review, SSA had not implemented those recommendations. According to SSA, establishing a new workload tracking system to address the prior recommendations would require additional resources the Agency did not currently have available.
For the current audit, OIG reviewed a sample of 250 low-dollar OASDI overpayments and found SSA took collection actions on 50 cases that auditors determined were not cost-beneficial because collection efforts likely exceeded the overpayment amounts. Auditors estimated SSA spent approximately $14,492 attempting to recover these 50 overpayments, which totaled $8,129.
Projected across the broader population, OIG estimated SSA spent approximately $4.6 million to recover nearly 16,000 low-dollar OASDI overpayments totaling about $2.6 million—roughly $2 million more than the Agency could recover.
The report also found SSA policy does not clearly specify the criteria Agency employees should use to determine when collection costs are likely to exceed recovery amounts and should therefore be suspended or terminated.
“Effective stewardship of taxpayer funds requires agencies to ensure collection efforts are cost‑beneficial and consistently applied,” said Michelle L. Anderson, Assistant Inspector General for Audit as First Assistant. “This audit highlights the need for clearer guidance and more consistent methodologies to help SSA make informed decisions regarding low-dollar overpayments.”
The audit makes recommendations for SSA to:
SSA agreed to implement the recommendations.
Read the full report here.
Download a PDF of the press release here.
]]>Tampa, Florida – Rebecca Stewart Vaughn (64, Tampa) has been charged by federal indictment with four counts of wire fraud and one count of theft of government money. If convicted, Vaughn faces a maximum penalty of 20 years in federal prison on each wire fraud count and up to 10 years for the theft of government money. The indictment also notifies Vaughn that the United States is seeking the forfeiture of more than $75,000, the proceeds of the charged criminal conduct. U.S. Attorney Gregory W. Kehoe made the announcement.
According to the indictment, Vaughn engaged in a fraud scheme to obtain Social Security benefits and City of New York pension benefits that did not belong to her. The benefits were being paid to Vaughn’s aunt, J.C. When J.C. died, Vaughn concealed her death by wrapping J.C.’s body in layers of blankets, sheets, and plastic bags, placing her body in a mattress bag, and disposing of the body in a wooded lot adjacent to a wastewater treatment plant. Vaughn also falsely represented to law enforcement officers that J.C. was still alive. By concealing J.C.’s death, Vaughn fraudulently induced the Social Security Administration and the Teacher’s Retirement System of the City of New York to continue to pay monthly benefits for J.C., which Vaughn then spent on herself and others.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Social Security Administration Office of the Inspector General and the Hillsborough County Sheriff’s Office. It is being prosecuted by Special Assistant United States Attorney Matthew Del Mastro.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support 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.
]]>ST. LOUIS – U.S. District Judge Cristian M. Stevens on Thursday sentenced a Slovakian man who aided the operation of a darknet market to 200 months in prison.
Alan Bill, 33, of Bratislava, pleaded guilty in January to one felony count of conspiracy to distribute controlled substances and admitted involvement in the operation of Kingdom Market, a darknet marketplace that operated between March 2021 and December 2023. Kingdom facilitated thousands of transactions wherein hundreds of vendors offered dangerous illegal drugs, stolen financial information, fraudulent identification documents, counterfeit currencies and computer malware throughout the world. Buyers made their purchases via cryptocurrency and anonymous or semi-anonymous accounts.
As part of his plea, Bill admitted assisting others in maintaining or operating Kingdom by providing or procuring web-administration services. He also admitted receiving cryptocurrency from a wallet associated with Kingdom, assisting with the creation of Kingdom’s forum pages on websites such as Reddit and Dread, having access to Kingdom usernames that made postings on behalf of Kingdom on social media accounts and communicating with others regarding certain Kingdom transactions.
Although Bill attempted to minimize his role with Kingdom Market in a day-long hearing Thursday, Judge Stevens found that evidence showed that Bill was a leader and/or organizer of the criminal conspiracy and was aware of what vendors were selling.
Kingdom servers show that there were more than 1,500 sales of heroin by dozens of vendors and nearly 600 sales of what sellers claimed was Oxycodone. Bill and his co-conspirators knew that fentanyl was being slipped into other products, a sentencing memo filed by the government says. “The dangerous drugs trafficked by defendant through Kingdom caused harm to untold numbers of people across the world,” the memo says.
After announcing the sentence Thursday, Judge Stevens said, “It’s hard to even imagine the amount of misery that the defendant’s actions have caused.”
Undercover federal investigators bought fentanyl, meth and a United States passport from Kingdom that were shipped to the Eastern District of Missouri. Bill was arrested Dec. 15, 2023, at Newark Liberty International Airport in possession of electronic devices that contained evidence of his involvement with Kingdom.
As part of his plea agreement, Bill also agreed to forfeit five different types of cryptocurrency, as well as the Kingdommarket.live and Kingdommarket.so domains, which have been shut down by authorities.
“Alan Bill helped run a darknet market that sold stolen identity and financial information, counterfeit currency and illegal drugs, including bogus prescription drugs containing fentanyl,” said U.S. Attorney Thomas C. Albus. “This sentence should send a message that serious crimes will be punished harshly, no matter where they occur or how hidden they appear to be.”
“Life is a series of good and bad choices. Mr. Bill made a bad choice to start a darknet marketplace that sold misery in the form of illegal drugs, stolen financial information and fake or stolen identification documents,” said IRS-Criminal Investigation St. Louis Special Agent in Charge William Steenson. “IRS-CI is committed to using the financial expertise of our special agents to track down and stop criminal organizations such as Kingdom Market. We’re grateful to our partners at the U.S. Attorney’s Office for their aggressive prosecution of this case.”
“Distributing deadly and highly addictive narcotics is extremely dangerous and has been a major contributor to the ongoing drug epidemic that is destroying communities across the country,” said Acting Inspector in Charge, Nicholas Bucciarelli, who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Domicile Office. “Leveraging USPIS unique cross-border authorities and expertise in cyber and narcotics investigations, Inspectors were able to pierce the veil of anonymity that these drug traffickers falsely believed they possessed by operating on the dark web, to expose their conspiracy and hold them accountable for their actions.”
“People often feel a false sense of security and anonymity, like they’re able to get away with something if they conduct business on the dark web,” DEA St. Louis Field Division Special Agent in Charge Michael Davis said. “That couldn’t be further from the truth. Our investigators and agents are well versed in the field of cyber transactions and work routinely to dismantle those organizations looking to profit off others with the sale of illegal drugs.”
IRS Criminal Investigation, the FBI, Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Postal Inspection Service, the Social Security Administration Office of Inspector General, the Bureau of Diplomatic Security and the Missouri Department of Revenue investigated the case. The investigation also involved numerous foreign law enforcement agencies, including the German Federal Criminal Police, or Bundeskriminalamt, the Frankfurt am Main Public Prosecutor’s Office - Central Office for Combating Internet Crime (ZIT) as well as law enforcement agencies from Switzerland, the Republic of Moldova and Ukraine. Assistant U.S. Attorneys Kyle Bateman, John Ware and Justin Ladendorf prosecuted the case.
]]>Musgrove pled guilty to two counts of false representation of a Social Security number, five counts of wire fraud, and one count of theft of government funds. He was also found guilty at bench trial of three counts of aggravated identity theft stemming from a decades-long scheme in which he impersonated a real Vietnam veteran to unlawfully obtain government benefits and services.
According to court records and evidence presented, Musgrove engaged in a fraudulent scheme spanning more than 25 years. Beginning as early as 1997, he assumed the identity of a real individual, identified in court documents as J.M.C., a United States Marine Corps veteran who served in Vietnam. While posing as J.M.C., Musgrove obtained Veterans Affairs compensation benefits, received healthcare services through the Department of Veterans Affairs, opened financial accounts using the victim’s identity, and submitted false statements and documentation to maintain and reinstate benefits.
Even after the real J.M.C. died in 2018, Musgrove continued the scheme by falsely claiming the death had been reported in error and successfully persuaded agencies to resume benefit payments. The fraud continued until 2023, when his attempts to obtain additional benefits led to the discovery of the scheme. In total, Musgrove fraudulently obtained more than $860,000 in federal benefits, contributing to the total restitution amount ordered in this matter.
Federal prosecutors emphasized that the sentence reflects the gravity of Musgrove’s conduct, which involved a highly calculated and sustained fraud scheme, the exploitation of a deceased veteran’s identity, significant financial losses to the government, and repeated efforts to deceive federal agencies over decades.
District Court Judge Rebecca Pennell, before imposing sentence, told Musgrove, “Your offense conduct was lengthy and very troubling. I don’t think it can be fairly characterized as just a mistake . . . You had been living a lie for decades.” Judge Pennell went on to note Musgrove seemingly had no concern for how his actions would impact the victim or his family, and that his pattern of putting himself before others “stops today.”
First Assistant Pete Serrano noted, “Mr. Musgrove carried out a calculated and deeply troubling fraud for decades, exploiting the identity of a military veteran to steal over a million dollars in benefits intended for those who have honorably served our country. This sentence reflects the seriousness of his conduct and underscores our commitment to protecting public resources and holding accountable those who abuse positions of trust for personal gain.”
“Today’s sentencing underscores the VA OIG’s commitment to investigating and holding accountable those involved in fraudulent activities targeting veterans,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
“Raymond Musgrove falsely represented the identity of a veteran as his own to deceptively receive benefits from the U.S. Department of Veterans Affairs, diverting critical benefits meant for veterans who earned them through service and sacrifice,” said Michelle L. Anderson, Assistant Inspector General for Audit as First Assistant, Social Security Administration, Office of the Inspector General. “His actions represent a theft from our veterans and the systems designed to support them.”
The case was investigated by the U.S. Social Security Administration Office of Inspector General and the U.S. Department of Veterans Affairs Office of Inspector General. It was prosecuted by Assistant United States Attorney Frieda K. Zimmerman of the Eastern District of Washington. For additional information, please contact the United States Attorney’s Office for the Eastern District of Washington
]]>PROVIDENCE- A federal grand jury in Rhode Island has returned a four-count indictment charging Felipe Almonte Polanco, 57, of Providence, with wire fraud, theft of public money, false representation of a Social Security number, and aggravated identity theft related to an alleged scheme to fraudulently obtain Supplemental Nutrition Assistance Program (SNAP) benefits using the identities of deceased and other individuals.
According to information presented to the court, investigators with the Social Security Administration Office of Inspector General and the Rhode Island Office of Internal Audit and Program Integrity began investigating fraudulent applications submitted in the identity of a deceased individual. The investigation determined that Polanco submitted fraudulent SNAP applications in the names of multiple victims, including a deceased individual, and used the benefits cards to conduct transactions at stores in Rhode Island. Almonte Polanco was previously convicted in the Western District of New York of making false statements in connection with a passport application and aggravated identity theft.
The indictment alleges that between October 2021 and April 2026, Polanco made balance inquiries on Rhode Island EBT cards associated with the stolen identities of at least 18 individuals and personally used cards issued in the names of at least nine victims. During the execution of a search warrant at Polanco’s residence, investigators recovered multiple EBT cards and materials used to create identification cards. The scheme resulted in Polanco receiving approximately $69,000 in fraudulent SNAP benefits.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Peter I. Roklan and Special Assistant United States Attorney John M. Moreira.
The matter was investigated by the Social Security Administration Office of Inspector General, U.S. Department of Agriculture Office of Inspector General, the United States Postal Inspection Service, the Rhode Island Office of Internal Audit and Program Integrity, and the Rhode Island Department of Human Services.
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