Federal authorities activate a never-before-used counterterrorism mechanism as New York dominates major public-program and financial fraud cases.
Edition: Sunday, September 13, 2026 · Updated: September 12, 6:00 p.m. ET · By Eliyahu Bayona
This week: The Justice Department announced the first removal ordered through the Alien Terrorist Removal Court, created by Congress in 1996. In New York, convictions and new proceedings focused attention on Medicaid, workers’ benefits, technology companies, and investment funds. In New Jersey, a proposed $125 million environmental settlement aims to advance restoration of the Passaic River.
Lead · National security
United States uses special court for first removal of an alleged alien terrorist
DOJ said Nazira Haji Zada, an Afghan national who had lived in Texas, was removed after the first completed proceeding before the Alien Terrorist Removal Court. The government said Zada supported her sons’ plan for an ISIS-inspired attack around the 2024 election.
Why it matters
The ATRC has existed since 1996 but had never been used successfully. Its statute permits classified evidence when disclosure would threaten national security, provides paid counsel when needed, and allows review by the D.C. Circuit. The precedent could reshape how the executive branch combines immigration law, classified intelligence, and due process in terrorism matters.
Brooklyn owner sentenced to 76 months for leading $64 million Medicaid fraud
Zakia Khan, owner of two social adult day care centers and a home-care company, received 76 months in prison. The court also ordered more than $56 million in restitution and forfeiture of $5 million, including real estate, cash, and gold jewelry.
The scheme
Court records say marketers and beneficiaries received kickbacks to enroll in services that were not provided as billed between 2017 and 2024. Khan pleaded guilty in August 2025.
Artificial-intelligence company founder admits securities fraud
Ilit Raz, founder and former CEO of Joonko, pleaded guilty to securities fraud. Prosecutors say she misled investors about the company’s customers and revenue and supplied forged bank statements and purchase orders.
The key number
Investors contributed about $17 million in a June 2022 Series B round. Raz, a 40-year-old Israeli citizen, faces a statutory maximum of 20 years; the judge will determine the actual sentence.
Hedge-fund founder charged with misrepresenting returns
A federal complaint charges Vuk Vukovic, founder of Oraclum Capital and manager of the Orca Bason Fund, with securities and wire fraud. Prosecutors allege that since at least 2024 he sent statements overstating returns and assets.
Case status
Vukovic has been charged, not convicted. Each count carries a statutory maximum of 20 years, and he is presumed innocent unless and until proven guilty.
Ukrainian Conti participant sentenced to four years
A federal court sentenced a Ukrainian national to four years after he pleaded guilty to a wire-fraud conspiracy tied to Conti ransomware. Evidence connected his accounts to data stolen from eight U.S. and four overseas victims.
Reach
DOJ said Conti attacked networks in nearly every state and numerous countries. The investigation and extradition from Ireland illustrate the growing transnational reach of U.S. ransomware prosecutions.
Proposed $125 million agreement advances Lower Passaic River cleanup
The government filed a consent decree in the District of New Jersey requiring work valued at approximately $125 million to prepare dredging and remediation at one of the state’s most complex Superfund sites.
What comes next
The agreement with ERH, a corporate successor associated with Newark’s former Diamond Alkali facility, is subject to a 30-day public-comment period before judicial action.
Former postal worker convicted in nearly $1 million disability-benefits fraud
A federal jury in Central Islip convicted Luann Middleton of Glen Cove of wire fraud. Prosecutors proved that she collected more than $900,000 in tax-free workers’ compensation while claiming total and permanent disability.
Evidence and consequences
The government presented surveillance and video showing physical activity inconsistent with claimed limitations. Middleton faces up to 20 years in prison; the judge will impose the sentence.