U.S. Court Cases, October 27: Fraud Sentences, Guilty Pleas and New Charges

Federal judges imposed prison terms in two fraud cases on October 26, while other cases in this roundup remain at the charge or plea stage. The eight developments below come from announcements issued October 26–27. Those announcement dates do not always match the dates of the conduct or court appearances.

In Newnan, Georgia, First Liberty Building and Loan founder Edwin Brant Frost IV received a 15-year sentence after pleading guilty to wire fraud. Chief U.S. District Judge Leigh Martin May also imposed three years of supervision and ordered $76,454,374.39 in restitution.

Prosecutors said more than 300 investors lost money. Frost promoted loans to small businesses and promised returns of 8 to 18 percent, according to the U.S. Attorney's Office. When legitimate revenue could no longer cover payments, he used new investors' money to pay earlier investors and concealed the business's problems. He also diverted at least $5 million for his own benefit. Frost pleaded guilty on May 12. The October 26 development was the sentencing, rather than a new accusation.

In Columbia, South Carolina, Herbert Leon Kimble received 20 years in federal prison for conspiracy to defraud the United States and failure to appear. Prosecutors said his operation used overseas call centers and telemedicine companies to obtain unnecessary prescriptions for medical braces. Equipment suppliers received the orders through arrangements involving illegal payments.

The Justice Department attributed more than $365 million in fraudulent Medicare claims to Kimble, of which the program paid over $199 million. Those are different measures: claims submitted and money actually reimbursed. The judge ordered restitution exceeding $199 million, forfeiture exceeding $195 million and three years of supervision after prison.

Kimble originally pleaded guilty in 2019, then missed court proceedings in 2024. He was later apprehended in the Philippines and returned to the United States. The new prison term follows that return and a plea agreement encompassing the original conspiracy and failure-to-appear case.

Sources: U.S. Attorney, Northern Georgia — Frost sentencing, October 26 ↗ · U.S. Attorney, South Carolina — Kimble sentencing, October 26 ↗ · CBS Atlanta — independent report on the Frost sentence ↗ · WIS — independent report on the Kimble sentence ↗

In Cleveland, prosecutors announced guilty pleas in a romance-fraud case involving more than $9 million in victim losses. The October 26 announcement concerns pleas entered earlier in the month. Twin brothers Jamal and Kamal Abubakari pleaded guilty on October 13. Amanda Joy Opoku-Boachie, of Hawaii, entered her plea on October 20.

All three admitted conspiracy to commit wire fraud. The U.S. Attorney's Office said the network used false online identities to develop relationships with victims before persuading them to transfer money. Victims lived in Ohio, 24 other states, Germany and Austria.

Sentencing is scheduled for February 9, 2027, for the brothers and February 10 for Opoku-Boachie. Each faces a statutory maximum of 20 years. Those maximums are not sentences already imposed.

A separate guilty plea in Huntington, West Virginia, involved professional licensing. Hang Kim Thi Ngo, of Windermere, Florida, pleaded guilty on October 26 to identity theft and money laundering. Prosecutors said a multistate nail-technician licensing operation generated more than $9.1 million between October 2020 and September 2025.

According to the U.S. Attorney's Office, Ngo obtained falsified school records and other documents that enabled applicants to obtain licenses. She generally worked through intermediaries, often employers, rather than dealing directly with applicants. The records included beauty-school diplomas and transcripts, while co-conspirators supplied false medical certificates when applicants did not obtain an examination.

Ngo used proceeds to buy property, prosecutors said. Her sentencing is scheduled for February 22, 2027, and her plea requires forfeiture of $9,110,920.84 in assets. A prison term has not yet been imposed.

Sources: U.S. Attorney, Northern Ohio — romance-fraud plea announcement, October 26 ↗ · U.S. Attorney, Southern West Virginia — licensing-scheme guilty plea, October 26 ↗

An indictment unsealed on October 26 charges construction-company owner Arthur Nelson and three employees with tax and financial offenses. The Justice Department said Nelson's businesses operated in Brooklyn before relocating to New Jersey in 2022. The employees charged are Joseph Free, Paul Vasquez and Ulysses Jude Devocion.

Prosecutors allege that employees received at least approximately $5 million in unreported wages without federal employment-tax withholding. They also allege that personal purchases were classified as business expenses and that false tax returns and wage statements were prepared. Nelson allegedly underreported gross business receipts by approximately $13 million.

A further alleged scheme used false financial documents to obtain loans, mortgages, credit and surety bonds. The counts differ among defendants and include tax offenses, conspiracy to commit wire fraud and obstruction. IRS Criminal Investigation is investigating. An indictment does not establish guilt, and the government must prove its allegations in court.

In a separate New York case, Xue Fang Cheng was arrested on October 26 following an October 23 indictment in the Eastern District of New York. She is charged with conspiracy to operate an unlicensed money-transmitting business.

Court documents described in the announcement allege that a convenience store provided unlicensed check-cashing services. Prosecutors say checks went into accounts controlled by others, while customers received cash for a fee of 2 to 3 percent. An undercover investigator was among the customers described in the release.

The alleged operation provided more than $1.1 million in cash from March 2025 through July 2026. Authorities said they seized approximately $875,000 during the investigation. That seizure figure is separate from the alleged transaction total. Cheng faces a maximum of five years if convicted. She remains presumed innocent, as do the defendants in the construction case.

Sources: Justice Department — construction-business indictment, October 26 ↗ · Justice Department — check-cashing charge, October 26 ↗

Federal authorities announced charges on October 27 against six people accused of targeting Americans through fraudulent nonfungible-token investment schemes. The U.S. Attorney's Office for the District of Columbia described an operation based in Madagascar, with connections to Southeast Asia and China. Prosecutors sought cooperation from Madagascar in bringing the defendants to the United States.

The same announcement reviewed the Scam Center Strike Force's broader work. Officials said it had restrained more than $1 billion in cryptocurrency across investigations and seized 700 fraudulent investment websites. These are cumulative task-force figures. They are not the alleged loss in the newly announced six-person case, and restrained funds are not necessarily money already returned to victims.

All six defendants are presumed innocent.

In Atlanta, a separate October 27 announcement reported that Akinade Adedeji Raheem had been arraigned the previous day after extradition from Benin. He is charged in an alleged tax-refund scheme involving stolen identities. Prosecutors say participants filed more than 300 false returns seeking over $100 million from the IRS between 2018 and 2023. The amount sought should not be described as a confirmed amount paid.

According to the indictment described by prosecutors, refund payments were directed to prepaid debit cards. Some proceeds allegedly went through money orders and purchases of used cars that were shipped abroad. Raheem was detained pending further proceedings.

A co-defendant, Abayomi Quadri Eletu, was separately indicted in Texas and arrested in the United Kingdom, where extradition proceedings remained pending at the time of the announcement. Both defendants are presumed innocent. The next court decisions will address the pending proceedings, rather than sentencing after a conviction that has not occurred.

Sources: U.S. Attorney, District of Columbia — NFT-scam charges and task-force update, October 27 ↗ · U.S. Attorney, Northern Georgia — extradition and arraignment announcement, October 27 ↗