Justice Department announces major fraud enforcement actions in Alabama, around Southeast
www.wvua23.com, August 3, 2026
The Justice Department’s National Fraud Enforcement Division has 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 encompass 17 cases, including three in Alabama.
These recent cases involve more than $350 million in intended losses and include cases involving SNAP benefits, Small Business Administration loans, housing benefits and tax fraud.
Alabama cases are:
- 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 is accused of filing thousands of tax returns falsely claiming energy tax credits that were baseless and fraudulent, causing almost $70 million in loss
- Middle District of Alabama led by U.S. Attorney Thomas Govan, United States v Kevin Padgett et al.
Kevin Padgett and co-defendants are charged with mail fraud, wire fraud and money laundering conspiracy, accused of selling about $7 million in 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 Prichard Water and Sewer Works, are accused of creating false invoices for work that was never performed and creating fictitious construction companies for the purpose of defrauding the utility for a total loss of roughly $2.5 million
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 more than 50 state officials.
“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.”