NewzIntel.com

Category: Crime

  • MIL-OSI Security: Newark Businessman Admits Bribing Former Newark Deputy Mayor and Director of Newark Department of Economic and Housing Development

    Source: US FBI

    NEWARK, N.J. – A Newark business owner today admitted bribing a former city official in exchange for that official’s assistance in acquiring and redeveloping Newark-owned properties, U.S. Attorney Philip R. Sellinger announced.

    Irwin Sablosky, 64, of Springfield, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to two counts of an indictment charging him with honest services fraud and bribery.

    “As he admitted in court, Irwin Sablosky provided cash and jewelry to Carmelo Garcia, a former Newark deputy mayor and director of the Newark Department of Economic and Housing Development in exchange for Garcia’s use of his influence to assist Sablosky’s acquisition of  various Newark-owned properties for redevelopment, defrauding the people of Newark of their right to the official’s honest services. He corrupted the public official’s independent judgment and violated the public trust for his own financial gain. Our office will continue to work with our law enforcement partners to make sure that the people of New Jersey are protected from public officials whose greed overrides their sworn duty to serve the people and from the individuals who bribe those officials.”

    U.S. Attorney Philip R. Sellinger

    “By bribing a government official, Mr. Sablosky undermined the best interests of his community and threatened the confidence its citizens have in those that take an oath to serve the public,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “IRS-CI is committed to fostering trust in the legal system and holding bad actors accountable.”

    “Irwin Sablosky’s selfish actions and severe abuse of power violated the public trust and risked jeopardizing the integrity of the federal process for fair and honest acquisitions of government owned properties to further his own self interests,” said Special Agent-in-Charge Vicky Vazquez with the U.S. Department of Housing and Urban Development, Office of Inspector General.  “HUD OIG remains steadfast in its commitment to working with our prosecutorial, law enforcement, and oversight partners to aggressively pursue individuals who engage in activities that threaten the integrity of HUD programs.”

    According to documents filed in the case and statements made in court:

    Sablosky admitted bribing Garcia – who was also executive vice president and chief real estate officer of the Newark Community Economic Development Corporation (NCEDC) – in exchange for Garcia’s assistance with the acquisition and redevelopment of city-owned property.

    According to documents filed in the case and statements made in court:

    From 2017 through April 2019, Sablosky, Frank Valvano Jr., and others provided significant monetary payments and other benefits to Garcia while he was serving as a high-level Newark official, and prior to that, as an executive officer of the NCEDC (now known as Invest Newark), in exchange for Garcia’s use of his official positions and influence within the city of Newark and the NCEDC to advance real estate development matters of interest to Sablosky and Valvano. These matters included obtaining preliminary designation letters for Sablosky and Valvano and securing Newark-approved redevelopment agreements (RDAs) that allowed them to purchase and acquire various Newark-owned properties for redevelopment, and to ensure that Garcia did not use his influence and authority to act against their interests.In addition to cash, Sablosky and Valvano also gifted Garcia jewelry, including multiple high-end watches and chains, from their pawnbroker and jewelry business.

    Phone records and text messages obtained by law enforcement show extensive communication between Garcia, Valvano, Sablosky, and others throughout this period of time, including text messages in which Garcia arranged to personally collect cash provided by  Sablosky and Valvano. In one instance, in June 2018, Sablosky and Valvano, through an intermediary, supplied Garcia, then the city’s acting deputy mayor and director of the city’s DEHD, $25,000 in cash as part of the stream of bribes provided to Garcia.

    The honest services fraud charge in Count 18 of the indictment carries a maximum potential penalty of 20 years in prison. The bribery charge in Count 26 carries a maximum penalty of 10 years in prison. All charges are punishable by a fine of $250,000 or twice the amount of the pecuniary gain from the offense. Sentencing is scheduled for Feb. 20, 2025.

    Sablosky originally was charged by indictment in October 2021 with Valvano, 56, of Florham Park, New Jersey, and Garcia, 59, of Hoboken, New Jersey. Garcia previously pleaded guilty to conspiracy to defraud the city of Newark and the NCEDC of Garcia’s honest services, honest services wire fraud, and receiving bribes in connection with the business of a federally funded local government and organization and awaiting sentencing. Valvano’s case is pending before Judge Arleo, and he is presumed innocent unless and until proven guilty.

    U.S. Attorney Sellinger credited special agents of the FBI’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Piovesan, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Vicky Vazquez, with the investigation leading to today’s guilty plea.

    The government is represented by Elaine K. Lou, Deputy Chief of the Criminal Division, and Katherine J. Calle and Edeli Rivera of the U.S. Attorney’s Office’s Special Prosecutions Division.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office and FBI Charge Nageezi Man with Sexual Abuse

    Source: US FBI

    ALBUQUERQUE – A Nageezi man has been charged with sexual abuse and abusive sexual contact in Indian Country.

    Patrick Wayne Platero, 46, an enrolled member of the Navajo Nation, appeared before a federal judge and will remain in the third-party custody of La Pasada halfway house pending trial, which has not been scheduled.

    According to the indictment, between on or about January 1, 2024, and on or about April 30, 2024, Platero allegedly sexually abused and engaged in abusive sexual contact with Jane Doe.

    If convicted, Platero faces up to life in prison followed by not less than five years and up to life on supervised release.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant United States Attorney Meg Tomlinson is prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Plattsburgh Man Sentenced to 120 Months in Prison for Possessing Child Pornography

    Source: US FBI

    ALBANY, NEW YORK –Jason Miller, age 33, of Plattsburgh, New York, was sentenced today to serve 120 months in federal prison for possession of child pornography.

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    As part of his guilty plea, Miller admitted that on March 17, 2021, he possessed images on his cell phone of minors engaged in sexually explicit conduct. The defendant’s conduct was uncovered during a joint law enforcement investigation into an online group sharing images of child pornography on Kik, a social media messaging application. The defendant admitted to receiving, distributing, and possessing child pornography on Kik.

    United States District Judge Mae A. D’Agostino also imposed a term of 15 years of supervised release, which will start after Miller is released from prison. Miller will also be required to register as a sex offender.

    Miller was previously convicted on May 16, 2016, in Clinton County Court of disseminating indecent material to minors in the first degree. Following multiple violations of probation, he was sentenced to 16 months to 4 years’ imprisonment.

    The FBI investigated this case as part of Project Safe Childhood. Assistant U.S. Attorney Carling Dunham prosecuted the case.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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  • MIL-OSI Security: Niskayuna Man Sentenced to More Than 11 Years for Possessing Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Aaron Griesche, age 41, of Niskayuna, New York, was sentenced today to 135 months of imprisonment, to be followed by 10 years of supervised release, for possessing child pornography. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    As part of his prior guilty plea, Griesche admitted that on July 11, 2021, he possessed child pornography on a USB flash memory stick found in his residence.  Griesche admitted that he had purchased the memory stick from an online retailer and transferred numerous videos of child pornography from the Internet to the device.

    In addition to the imprisonment and supervised release terms, Griesche was ordered to pay a total of $18,000 in restitution to child victims depicted in the files he possessed.

    The FBI and its Child Exploitation Task Force investigated this case.  The FBI’s Child Exploitation Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorney Dustin C. Segovia prosecuted the case as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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  • MIL-OSI Security: Alon Alexander, Oren Alexander, and Tal Alexander Charged in Manhattan Federal Court with Sex Trafficking Offenses

    Source: US FBI

    Damian Williams, the United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Jessica S. Tisch, Commissioner of the New York City Police Department, announced the return today of a three-count Indictment charging ALON ALEXANDER, OREN ALEXANDER, and TAL ALEXANDER (the “ALEXANDER BROTHERS”), with sex trafficking offenses. The defendants were arrested this morning in the Southern District of Florida and will be presented in federal court in Miami, Florida.  The case has been assigned to U.S. District Judge Valerie E. Caproni. 

    U.S. Attorney Damian Williams said: “As alleged in the Indictment, for more than a decade, the Alexander Brothers, alone and together, repeatedly and violently sexually assaulted and raped dozens of female victims. Today, the defendants are charged with multiple sex trafficking offenses.  Our investigation is far from over.  If you have been a victim of the alleged sexual violence perpetrated by Alon Alexander, Oren Alexander, or Tal Alexander – or if you know anything about their alleged crimes – we urge you to come forward.”

    FBI Assistant Director in Charge James E. Dennehy said: “The Alexander brothers allegedly conspired using their wealth and status to prey on innocent women, coercing them into engaging in sexual acts.  We will not allow this type of alleged behavior to go unimpeded. Predators forcefully coercing victims into sexual acts cannot and will not be tolerated.  The FBI’s investigations into these types of cases are only possible because of the bravery victims show in coming forward.  The FBI, along with our law enforcement partners, are committed to investigating sex trafficking and ensuring anyone attempting to engage in it is held accountable in the criminal justice system.”

    NYPD Commissioner Jessica S. Tisch said: “The charges outlined in this indictment reflect some of the most heinous and dehumanizing crimes of sexual exploitation that our NYPD detectives investigate.  I applaud all the members of our joint FBI-NYPD Child Exploitation and Human Trafficking Task Force for their unwavering dedication to identifying, investigating, and holding accountable those who allegedly prey on vulnerable individuals in such despicable ways.”

    According to the Indictment, Superseding Indictment, and other documents and statements in the public record:

    From at least in or about 2010, up to and including at least in or about 2021, the ALEXANDER BROTHERS worked together and with others to engage in sex trafficking, including by repeatedly drugging, sexually assaulting, and raping dozens of female victims.  The ALEXANDER BROTHERS, who reside primarily in New York and Miami, Florida, have considerable social and financial connections, including through OREN ALEXANDER and TAL ALEXANDER’s positions as prominent real estate agents focused on ultra-luxury markets.  The ALEXANDER BROTHERS used their wealth and prominent positions in real estate to create and facilitate opportunities to sexually assault women.  

    To carry out and facilitate their sex trafficking scheme, the ALEXANDER BROTHERS used deception, fraud, and coercion to cause victims to travel with them or meet them in private locations for various trips and events.  The ALEXANDER BROTHERS and others identified women to invite to these events through, among other things, social media, dating applications, in person encounters, or through the use of party promoters who would recruit women for these events.

    The ALEXANDER BROTHERS used the promise of luxury experiences, travel, and accommodations to lure and entice women to these events, and then—on multiple occasions—forcibly raped and sexually assaulted women who attended.  At times, multiple men, including one or more of the ALEXANDER BROTHERS, participated in these assaults.  In some instances, the defendants physically restrained and held down their victims during the rapes and sexual assaults and ignored screams and explicit requests to stop.

    In advance of the events, the ALEXANDER BROTHERS and others procured drugs that they agreed to provide to the women, including, among other things, cocaine, mushrooms, and GHB.  On multiple occasions during these events and trips, the ALEXANDER BROTHERS and others surreptitiously drugged women’s drinks.  Some of the victims experienced symptoms of impaired physical and mental capacity, including limitations of movement and speech and incomplete memories of events.  This prevented the victims from being able to fight back or escape during the rapes and sexual assaults.

    The agreement between the ALEXANDER BROTHERS encompassed numerous other acts of sexual violence in addition to the sexual assaults during planned trips and events.  On numerous occasions, one or more of the ALEXANDER BROTHERS drugged and raped or sexually assaulted women they encountered by chance, including women they met at bars and nightclubs, social events, and on dating applications.

    If you have been victimized by the ALEXANDER BROTHERS in any way or have any additional information about their alleged illegal behavior, please call the FBI at 1-800-CALL-FBI, or reach out to us at alexander-case@fbi.gov.

    *                *                *

    ALON ALEXANDER, 37, OREN ALEXANDER, 37, and TAL ALEXANDER, 38, all of Miami, Florida, are each charged with one count of engaging in a sex trafficking conspiracy, which carries a maximum sentence of life in prison; and one count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison.  TAL ALEXANDER is additionally charged with a second count of sex trafficking by force, fraud, or coercion, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 15 years in prison.

    The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

    Mr. Williams praised the outstanding investigative work of the FBI-NYPD Child Exploitation and Human Trafficking Task Force in New York, as well as the assistance of FBI Miami, the U.S. Attorney’s Office for the Southern District of Florida, the Miami-Dade County State Attorney’s Office, and the Miami Beach Police Department.

    This case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Kaiya Arroyo, Elizabeth A. Espinosa, and Andrew W. Jones are in charge of the prosecution.

    The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Fort Liberty Soldier Charged with Unlawful Firearms Trafficking and Lying About His Involvement in Insurrectionist Groups

    Source: US FBI

    RALEIGH, N.C. – A federal grand jury returned an indictment on Aug. 14, charging Kai Liam Nix, also known as Kai Brazelton, 20, with unlawful firearms trafficking, including the sale of two stolen firearms. Nix was also charged with making a false statement to the government. Nix is an active-duty U.S. Army soldier, stationed at Fort Liberty in Fayetteville, North Carolina. He was arrested on Aug. 15 and made his initial appearance in court today.

    According to the court documents, Nix made a false statement on his Security Clearance Application Standard Form (SF) 86 when he claimed he had never been a member of a group dedicated to the use of violence or force to overthrow the U.S. Government.

    Nix was also charged with one count of dealing in firearms without a license and two counts of selling a stolen firearm. If convicted, he faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Michael Easley for the Eastern District of North Carolina, Executive Assistant Director Robert Wells of the FBI’s National Security Branch and Special Agent in Charge Bennie Mims of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.

    The FBI, ATF and U.S. Army Criminal Investigations Department are investigating the case.

    The U.S. Attorney’s Office for the Eastern District of North Carolina and the National Security Division’s Counterterrorism Section are prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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    MIL Security OSI –

  • MIL-OSI Security: Additional Defendant Pleads Guilty in $50 Million Ponzi Scheme Involving Off-the-Road Tires

    Source: US FBI

    COLUMBUS, Ohio – A New Jersey man who is alleged to have fled to Turkey has returned to the United States and pleaded guilty to his role in a nationwide, off-the-road tire sale fraud scheme that resulted in tens of millions of dollars of losses.

    Ahmet Neidik, 64, of Fort Lee, New Jersey, pleaded guilty today to conspiring to commit wire fraud.

    Neidik was the co-owner of, and ran the daily operations for, transportation, logistics and importing/exporting businesses. Some of the proceeds of the scheme were sent to businesses controlled by Neidik. Neidik would then wire money to the bank accounts of co-conspirators.

    It is alleged that John K. Eckerd, Jr., 58, of Dallas, is the leader of the multi-state conspiracy.

    Conspiring with previously convicted and sentenced defendant Jason E. Adkins, 46, of Jackson, Ohio, Eckerd and others orchestrated a $50 million Ponzi scheme that defrauded more than 50 investors.

    According to Eckerd’s indictment, from 2012 until at least in or around late 2018, Eckerd represented himself to potential investors as an entrepreneur and businessman with expertise in the market for off-the-road tires. Off-the-road tires are over-sized tires that are used on earth moving equipment and/or mining equipment. Eckerd had control of or access to many corporations allegedly used as part of the scheme.

    Co-conspirators allegedly solicited millions of dollars from investor-victims under false pretenses. Investors were told their money would be used to buy off-the-road tires at a steep discount, and that the tires would then be re-sold to a buyer at a much higher rate. Investors were promised a high percent rate of return on investment, generally within 180 days.

    It is alleged defendants rarely bought or sold tires, and when they did, they used the same tires as the basis for multiple deals, promising multiple investors that they each owned the same tires.

    Defendants corresponded with the potential investors face-to-face, as well as through a combination of phone calls, text messages, and, on occasion, emails. It is alleged they used private planes to showcase their inventory and appear wealthy and successful. Defendants also allegedly provided investors with elaborate, fraudulent paperwork regarding the purported deals. The co-conspirators requested large investments and loans, most to be funded through wire transfers.

    With his guilty plea, Neidik admitted to participating in the scheme. To give potential investors confidence in the tire deals, Eckerd and Adkins offered the services of a purportedly neutral third party to arrange shipment of the tires and/or hold investment funds in escrow until certain conditions were met in completing the deal. Neidik allowed Eckerd and Adkins to represent to investors that he was the neutral third party, and on some occasions, entered into escrow agreements with the investors.

    As part of his plea, Neidik has agreed to pay $370,000 in restitution for his part of the scheme.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.

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  • MIL-OSI Security: Grand Jury Indicts Five Dayton Individuals in Narcotics Conspiracy Resulting in Death

    Source: US FBI

    DAYTON, Ohio – Five Dayton individuals have been charged federally in a narcotics conspiracy that allegedly resulted in at least one overdose death and one serious bodily injury.

    Those charged include:

    Name

    Also known as

    Age

    Ricardo Busbee

    Cardo

    33

    Torrence Busbee

    Woody

    30

    Demarion Galloway

    Duke

    28

    Dalaquan McGuire

    Rico

    26

    Doretha Hughes

    		  

    27

    In summer 2023, local and federal law enforcement began investigating a significant increase in drug overdoses that had occurred within a six-block radius in Dayton.

    According to the 10-count indictment, the defendants conspired to possess with intent to distribute fentanyl, methamphetamine and cocaine. They allegedly possessed and distributed methamphetamine at a premises where a minor resided.

    It is also alleged that on July 27, 2023, Ricardo Busbee and Hughes distributed a mixture of fentanyl and cocaine that caused an overdose death. The drug combination also allegedly caused serious bodily injury to another individual.

    Ricardo and Torrence Busbee are also charged with illegally possessing firearms as previously convicted felons.

    All the defendants are charged with possessing firearms in furtherance of drug trafficking crimes. They allegedly possessed at least 14 guns that they kept in a storage unit and at residences on Laura and Basswood avenues.

    Due to the allegation that death and serious bodily injury resulted from the drug conspiracy, if convicted, the defendants face a punishment of at least 20 years and up to life in prison.

    This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); and Dayton Police Chief Kamran Aftal announced the charges that were unsealed on Jan. 12 and commended the cooperative investigation with the assistance of partner agencies including Huber Heights, Trotwood, Springfield and Bellefontaine police departments, Miami County and Montgomery County sheriff’s offices, the FBI, United States Marshals and Ohio Adult Parole Authority. Assistant United States Attorneys Amy M. Smith and Kelly K. Rossi are representing the United States in this case.

    An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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  • MIL-OSI Security: Former High School Teacher Sentenced to 20 Years in Prison for Exploiting Minors by Taking ‘Upskirt’ Videos at School and in Other Public Places

    Source: US FBI

    COLUMBUS, Ohio – A former local high school teacher was sentenced in U.S. District Court today to 240 months in prison for crimes related to secretly recording explicit videos of his students at school and possessing child sexual abuse material.

    Justin Foley, 48, of Delaware, Ohio, pleaded guilty in May 2023 to sexually exploiting a minor and possessing child pornography.

    Foley was employed as a chemistry teacher at Columbus Alternative High School at the time of his offenses. He used his cell phone and other digital media devices in a hidden manner to capture the genitalia of his female students under their skirts and shorts during the school day.

    According to court documents, in August 2022, the Delaware Police Department received CyberTip reports from the National Center for Missing and Exploited Children (NCMEC) regarding numerous images of apparent child sexual abuse material that were uploaded via Google email accounts. Investigators tracked the IP addresses for the reported email accounts to Foley. During the investigation into Foley, officers discovered a second CyberTip report. Five of the IP addresses in the second report belonged to Columbus Public Schools.

    Delaware County law enforcement officials executed a search warrant at Foley’s residence on Sept. 20, 2022. Court documents detail that Foley admitted to creating videos in the classroom and hallways of the school at which he taught and that he had created some of these videos as recently as the previous week.

    A review of Foley’s devices by the FBI revealed they contained numerous videos that were voyeuristic in nature and appear to have been self-produced. The videos were recorded at the high school Foley worked at, local department stores in central Ohio, public areas of downtown Delaware, Ohio, and various dressing rooms at different unidentified locations. It is apparent from the videos that the victims depicted in them did not know they were being recorded.

    Foley created numerous videos of female students in the hallways of Columbus Alternative High School or of females that were students in his classroom.  In the videos he secretly recorded, Foley would hide his phone camera or place it beside or behind the victims in attempt to record up their skirts or shorts. Foley then took screenshots from the content he filmed of his victims and created still images of the victim’s nude genitalia, zooming in and “lightening” some of the screenshots to enhance the images.

    In addition to the videos he created himself, more than 1,000 images of child sexual abuse material were recovered from Foley’s devices that depicted a series of images of prepubescent females in various stages of nudity or fully nude exposing their genitals or anus to the camera.

    Foley was arrested and charged locally in Delaware County in September 2022. He was charged federally in November 2022. 

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler; Delaware Police Chief Adam Moore; Delaware County Prosecutor Melissa A. Schiffel; and other members of the FBI’s Child Exploitation and Human Trafficking Task Force announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.

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  • MIL-OSI Security: Three Gang Members Sentenced to Decades in Federal Prison for Their Roles in the Robbery and Fatal Shooting of Off-Duty LAPD Officer

    Source: US FBI

    LOS ANGELES – Three members of a South Los Angeles street gang each were sentenced today to decades in prison for their roles in the robbery and fatal shooting in 2022 of Los Angeles Police Officer Fernando Arroyos.

    In separate hearings today, United States District Judge Percy Anderson sentenced Luis Alfredo de la Rosa Rios, 30, a.k.a. “Lil J” and “Lil Malo,” to 50 years in federal prison and ordered him to pay $31,204.07 in restitution. Judge Anderson also sentenced Ernesto Cisneros, 25, a.k.a. “Gonzo” and “Spooky,” to 50 years in federal prison and ordered him to pay $28,604.07 in restitution. Finally, Jesse Contreras, 36, a.k.a. “Skinny Jack” and “Flaco,” was sentenced to 35 years in federal prison and ordered him to pay $31,204.07 in restitution.

    At today’s hearing, Judge Anderson said, “The senseless loss of life is all too frequent in our community. It is literally ripping apart the fabric of our society. The sentence imposed today must send a message, not only to this defendant but to everyone, that if you choose to endanger our community by murdering, robbing, and trafficking in narcotics, there will be significant consequences.”

    Rios, Contreras, and Cisneros – all members of the South Los Angeles-based Florencia 13 (F13) street gang – pleaded guilty in July 2023 to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    “Gangs bring death and destruction, most often upon the very communities they claim to represent,” said United States Attorney Martin Estrada. “These defendants coldly and callously murdered an innocent man who grew up in our community and returned home to give back to the city he loved. I hope the major sentences we announce today bring some degree of solace to Officer Arroyos’ family, friends, and colleagues. My office will continue to collaborate with our law enforcement partners to aggressively investigate and prosecute gang violence.”

    “Fernando Arroyos should be with us today, helping to protect a city he was ready and willing to give his life for. Yet he died in a way none of us could have imagined” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “With Officer Arroyos’ senseless killing, we lost a protector, and most importantly, his family lost someone who meant the whole world to them. The sentences handed down today are just and reinforce our commitment to ensuring public safety and holding those who terrorize our communities accountable.”

    “Gang violence tears at the very fabric of our communities, causing immeasurable harm and suffering,” said Los Angeles County Sheriff Robert Luna. “Today’s sentencing sends a clear message that acts of violence, especially against our dedicated law enforcement officers, will be met with the full force of justice. Officer Arroyos had a promising life ahead of him and chose to serve the community where he was raised, and we will forever remember his commitment and sacrifice. We are grateful for our local and federal partners’ collaborative efforts in bringing these brazen criminals to justice and preventing them from preying on others in our communities.”

    On the night of January 10, 2022, the defendants were driving in Rios’ truck around F13’s “territory” in the Florence-Firestone area of South Los Angeles, looking for people to rob. The defendants decided to rob Officer Arroyos because he was wearing gold chains around his neck. Arroyos was accompanied by his girlfriend – another victim who is identified in court documents as “A.M.” Contreras handed Rios a loaded gun. Cisneros, who accompanied Rios and Contreras in Rios’s truck, already possessed a loaded gun. Rios and Cisneros, both armed, then exited Rios’ truck.

    Cisneros approached the off-duty officer, patted him down, and then took his chains and wallet, which contained Arroyos’ LAPD identification card. Rios approached A.M., patted her down and stole her property.

    After robbing Arroyos, Rios and Cisneros opened fire. Arroyos was struck by a single bullet, which killed him.

    Earlier the same day, Rios and Contreras committed armed robberies against two victims outside a bar within F13’s “territory” in the Florence-Firestone area.

    Haylee Marie Grisham, 21, an F13 associate who was Rios’ girlfriend, pleaded guilty in April 2023 to one count of violent crime in aid of racketeering for participating in the fatal robbery of Arroyos. Her sentencing hearing is scheduled for September 9, at which time she will face a statutory maximum sentence of life imprisonment.

    The FBI and the Los Angeles County Sheriff’s Department investigated this matter. The Los Angeles Police Department provided substantial assistance.

    Assistant United States Attorney Kathy Yu, Chief of Ethics and Post-Conviction Review, and Christopher C. Kendall of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.

    This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

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  • MIL-OSI Security: Stockton Man Pleads Guilty to Attempted Sexual Exploitation of a Minor

    Source: US FBI

    SACRAMENTO, Calif. — Elmer Yusay Ngo, 28, of Stockton, pleaded guilty today to one count of attempted sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Ngo utilized social media to sexually exploit female minors. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography for Ngo.

    This case is the product of an investigation by the Federal Bureau of Investigation and the Internet Crimes Against Children Task Force, with assistance from state and local police departments nationwide. Assistant United States Attorney Kristin F. Scott is prosecuting the case.

    Ngo is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Nov. 4, 2024. Ngo faces a minimum statutory penalty of 15 years in prison, a maximum statutory penalty of 30 years in prison, a $250,000 fine, supervised release and restitution. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

    MIL Security OSI –

  • MIL-OSI Security: FBI Returns Fugitive to Sacramento County to Face Charges

    Source: US FBI

    SACRAMENTO—The Federal Bureau of Investigation (FBI) Sacramento Field Office and Sacramento County Sheriff’s Department announced the successful extradition from Mexico of Baltazar Guevara Ortiz, who fled to avoid prosecution in Sacramento County. The agencies worked with the FBI Legal Attaché Office in Mexico City, the U.S. Department of State’s Diplomatic Security Service, U.S. Customs and Border Protection, and the Department of Justice’s Office of International Affairs to secure Ortiz’s arrest and extradition.

    Following an investigation by the Sacramento County Sheriff’s Department Major Crime Unit, the Sacramento County District Attorney’s Office charged Ortiz, a Mexican national, on June 22, 2010, with multiple counts for the alleged sexual assault of a minor. The charges are mere allegations, and all defendants are presumed innocent pending prosecution.

    The FBI obtained a federal arrest warrant for the unlawful flight to avoid prosecution on Nov. 12, 2010, following information indicating that Ortiz left the United States to avoid prosecution in Sacramento County. Ortiz was apprehended by Agencia de Investigación Criminal in Guanajuato, Mexico on March 13, 2024, and was held while extradition was pending.

    Ortiz’s return is funded by the United States Government’s “Project Welcome Home,” which provides funding to assist in the transportation of federal fugitives to the United States.

    The FBI continues to collaborate with its law enforcement partners to apprehend criminals charged with state crimes who flee the jurisdiction. Cases seeking information from the public, including fugitive matters, are posted on the FBI Sacramento Field Office’s Most Wanted web page and FBI Most Wanted application. Anyone with information that may aid these cases may contact their local FBI office, United States embassy, or submit information online at tips.fbi.gov.

    Questions regarding Ortiz’s detention and pending prosecution should be directed to the Sacramento County District Attorney’s Office.

    MIL Security OSI –

  • MIL-OSI Security: Firearms Trafficker Sentenced to 15 Years in Prison for Supplying Weapons and Ammunition to Sinaloa Cartel

    Source: US FBI

    NEWS RELEASE SUMMARY – October 18, 2023

    SAN DIEGO – Alfredo Lomas Navarrete, a prolific firearms trafficker, was sentenced in federal court today to 15 years in custody for his role in supplying hundreds of high-powered weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.

    This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which is a significant component of the Sinaloa Cartel. The Valenzuela TCO is one of the largest importers of cocaine into the United States. The TCO sources cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transports the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggles the narcotics into the country, and distributes them throughout the U.S. The TCO then smuggles the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.

    According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.

    During the multi-year investigation, agents identified Alfredo Lomas Navarrete as a major firearms trafficker for the TCO. Agents recovered hundreds of messages between Jorge and Lomas in which they discussed firearms trafficking. Lomas worked closely with Jorge and other high-ranking organization members to supply hundreds of firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers, to assault rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Lomas and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including in California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona into Mexico

    To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.

    Lomas pleaded guilty in April 2023 to conspiring to import cocaine, distribute cocaine, commit money laundering, and to smuggle goods from the United States.

    “The amount of cash, ammunition, and narcotics seized in this case is staggering,” said U.S. Attorney Tara McGrath. “The collaboration in this case sends a clear message that the U.S. Attorney’s Office will attack every facet of drug trafficking organizations from money to drugs to firearms. We will stay after it for as long as it takes to bring them to justice.”

    “The Venezuelan transnational criminal organization has brought death and suffering to countless people through their once prosperous criminal enterprise,” said Chad Plantz, special agent in charge for HSI San Diego. “The sentencing of this firearms trafficker sends a resounding message to traffickers and criminals around the world that HSI and the law enforcement community will vehemently pursue those who seek to harm not only Americans, but humanity as a whole with their brutality and deadly drugs.”

    “Drug cartels use drug proceeds to purchase weapons and ammunition, fueling violence in our communities,” said DEA Special Agent in Charge Shelly Howe.  “DEA and our federal, state, and local partners will continue to hold drug traffickers and the cartels responsible for the carnage and destruction they cause.”

    “The sentencing of Mr. Navarrete is a major milestone in federal law enforcement’s efforts to disrupt and dismantle illegal trafficking operations of all kinds,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We are proud to support our law enforcement partners in all efforts that target and take down crime organizations that threaten the citizens of the United States of America.”

    “Mr. Navarrete’s enablement of violence on both sides of the U.S.-Mexico border is over,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Crime leaves a money trail, and when we pool our resources we are able to find the evidence necessary to lead to conviction. Navarrete is going to prison because of a well-coordinated joint investigation we are proud to have been part of.”

    This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

    DEFENDANT                                               Case Number 21-cr-2960-AGS                              

    Alfredo Lomas Navarrete                                           Age: 33                                   Culiacan, Mexico

    SUMMARY OF CHARGES

    International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.

    Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

    Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h).

    Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

    Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).

    Maximum Penalty: Five years in prison, fine of $250,000.

    AGENCY

    Homeland Security Investigations

    Drug Enforcement Administration

    Federal Bureau of Investigation

    Internal Revenue Service – Criminal Investigation

    United States Marshals Service

    Customs and Border Protection, Office of Field Operations

    Customs and Border Protection, Office of Border Patrol

    Department of Justice, Organized Crime Drug Enforcement Task Forces

    Department of Justice, Office of Enforcement Operations

    Department of Justice, Office of International Affairs

    San Diego County Sheriff’s Department

    San Diego Police Department

    Border Crime Suppression Team

    San Diego County District Attorney’s Office

    MIL Security OSI –

  • MIL-OSI Security: Imperial Valley Doctor Sentenced for Years-Long Use of Unapproved Cosmetic Drugs

    Source: US FBI

    NEWS RELEASE SUMMARY – October 20, 2023

    SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, was sentenced in federal court yesterday for crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs.  According to his plea and court records, Vo injected as many as 178 patients with unapproved drugs that had been smuggled into the United States from Mexico. 

    Magistrate Judge Allison H. Goddard sentenced Vo to three years of probation and ordered him to pay a $201,534 fine and forfeit the $100,767 in proceeds he made from his use of unlawful cosmetic drugs.  A restitution hearing is set for December 7, 2023, to finalize an order for restitution to potential victims.

    In August, Vo pleaded guilty to two misdemeanor counts: receipt of misbranded drugs in interstate commerce and being an accessory after the fact to Flor Cham, who smuggled the unapproved drugs into the United States from Mexico.  Cham is charged in case number 23-cr-01926-JLS.

    In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 were approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration. 

    According to court papers, Vo used these unapproved drugs on approximately 178 patients over about four years.  Many were never told that they received unapproved drugs as part of their treatment. 

    “The public faith in the FDA approval process relies on medical providers adhering to those rules,” said U.S. Attorney Tara McGrath. “By side-stepping the safety and approval protocols of the FDA, Dr. Vo compromised care and put profits before patients. But thanks to the hard work of the agencies and our federal restitution process, those ill-gained profits will be recovered in this case.”

    “Today’s sentencing serves as our promise to use every tool to investigate and hold accountable those who deliberately smuggle and administer products that pose a significant public health threat,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, together with the U.S. Attorney’s Office will continue to work together to prosecute those individuals who deceive and threaten our communities.”

    “The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office.  “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”

    A restitution hearing is set for December 7, 2023, at 9:30 a.m. before Judge Allison H. Goddard. 

    Potential victims related to this case may provide or request information by emailing USACAS.Cosmetic.Case@usdoj.gov.  Individuals may submit written statements including information about potential losses or requests for refunds that may be included as part of the restitution ordered on December 7, 2023. 

    DEFENDANT                                               Case Number 23cr1700-AHG                                      

    Tien Tan Vo                                                    Age: 47                                   El Centro, CA

    SUMMARY OF CHARGES

    Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3

    Maximum penalty: one year in prison, fine of $100,000 or twice the pecuniary gain or loss

    Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)

    Maximum penalty: one year in prison, fine of $1,000 or twice the pecuniary gain or loss

    AGENCIES

    Homeland Security Investigations

    U.S. Food and Drug Administration, Office of Criminal Investigations

    Federal Bureau of Investigation

    U.S. Department of Health and Human Services, Office of Inspector General

    MIL Security OSI –

  • MIL-OSI Security: Mexican Mafia Associate Sentenced to 10 Years in Prison

    Source: US FBI

    NEWS RELEASE SUMMARY – November 13, 2023

    SAN DIEGO – Juan Castro of San Diego was sentenced today in federal court to 10 years in prison and 10 years of supervised release for selling 109 grams of methamphetamine to a cooperating individual. 

    A government memorandum submitted for Castro’s sentencing described him as a high-ranking member of the San Ysidro (or “Sidro”) street gang and an associate of the Mexican Mafia. Castro oversaw day-to-day operations for Sidro which included collecting payments in exchange for allowing others to commit crimes in the San Ysidro area. The payments, or taxes, were then distributed to high-ranking Mexican Mafia members. In sentencing Castro, U.S. District Judge Larry Alan Burns called him a “hand puppet for the Mexican Mafia.”

    Castro was apprehended after a long-term investigation by the FBI’s Violent Crimes Task Force and Gang Group.

    DEFENDANT                                               Case Number 23-cr-00371-LAB                                        

    Juan Castro                                                     Age: 38                       San Diego, CA

    SUMMARY OF CHARGES

    Distribution of Methamphetamine – Title 21, U.S.C., Section 841(a)(1)

    Maximum penalty: Forty years in prison, with a mandatory minimum of five years, and $5 million fine

    AGENCIES

    Federal Bureau of Investigation – Violent Crimes Task Force – Gang Group (VCTF-GG), which currently includes investigators from the following agencies:

    • Federal Bureau of Investigation
    • San Diego Police Department
    • Homeland Security Investigations
    • Bureau of Alcohol, Tobacco, Firearms and Explosives
    • California Department of Corrections
    • San Diego County Sheriff’s Department
    • Chula Vista Police Department
    • National City Police Department

    Although not currently part of VCTF-GG, during the investigation of this case, VCTF-GG also included investigators from the following:

    • Bureau of Prisons
    • San Diego District Attorney’s Office of Investigations

    MIL Security OSI –

  • MIL-OSI Security: Fourteen Defendants Indicted in $5 Million California State Unemployment Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – November 16, 2023

    SAN DIEGO – An indictment partially unsealed today charges 14 defendants with fraud and money laundering offenses for a scheme centered around fraudulent unemployment applications submitted to the California Employment Development Department during the pandemic. The indictment alleges the fraud netted the defendants almost $5.2 million in funds from the state of California.

    According to the indictment, David Constantin and Constantin Bobi Sandu, who was arrested and charged separately in March 2023, helped hundreds of applicants apply for EDD benefits using fraudulent documents. Constantin and Sandu recruited potential applicants through Facebook and met applicants at parks throughout Southern California to complete the application process. Applicants paid Constantin or Sandu a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments.

    The indictment alleges that from July 2020 to August 2022, Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania. Another defendant who fraudulently obtained EDD benefits with Constantin’s help, Eduard Buse, transmitted almost $129,000 to Romania in the same period. Buse also purchased a 2020 BMW X6 with over $105,000 in cash fraud proceeds in December 2022 and shipped the vehicle to Romania. Several other defendants also transmitted fraud proceeds to accounts in Romania.

    David Constantin was arrested in Romania at the request of the United States on November 13th by Romanian authorities who also served search warrants and seized, among other things, the BMW with California license plates. The Department of Justice will seek Constantin’s extradition to the United States. Buse and defendants Leonard Miclescu, Constantin Iosif Constantin and Florentina Sima were arrested in California and Texas. Nine other defendants remain at large.

    This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu with assistance from the Department of Justice’s Office of International Affairs, FBI’s Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate – Fugitive Unit.

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    David Constantin                                            Age: 27                                   Arges County, Romania

    aka Vlad Alexandru                           

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Leonard Miclescu                                           Age: 49                                   Transient, Romanian

    Constantin Iosif Constantin                            Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    *Additional defendants are not in custody and their names are redacted

    SUMMARY OF CHARGES

    Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud

    Title 18, U.S.C. § 1343 — Wire Fraud

    Maximum penalty: Thirty years in prison, $1 million fine

    Title 18 U.S.C. § 1956(h) — Conspiracy to Launder Monetary Instruments

    Title 18 U.S.C. § 1956(a)(2)(A) — Laundering of Monetary Instruments

    Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments

    Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Antony A. Jung Named as Special Agent in Charge of the Anchorage Field Office

    Source: US FBI

    Director Christopher Wray has named Antony A. Jung as the special agent in charge of the Anchorage Field Office in Alaska. Mr. Jung most recently served as a section chief in the Information Management Division in Winchester, Virginia.

    Mr. Jung joined the FBI as a special agent in 2004 and was first assigned to the Baton Rouge Resident Agency in the New Orleans Field Office. He investigated criminal matters and led a Safe Streets Gang Task Force. He was also a crisis negotiator.

    In 2009, he transferred to the Miami Field Office. He was then promoted to supervisory special agent and moved to the Criminal Investigative Division at FBI Headquarters and the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Fusion Center, where he served to support the FBI and other federal partners.

    In 2014, Mr. Jung was selected as a supervisory special agent in the Kansas City Field Office in Missouri. Mr. Jung led a High Intensity Drug Trafficking Area Task Force and squad investigating transnational organized crime and OCDETF matters.

    In 2017, Mr. Jung was promoted to assistant special agent in charge of the Criminal and Administrative Branch of the Anchorage Field Office. He also served as the acting special agent in charge.

    In 2019, Mr. Jung was promoted to section chief in the Information Management Division, where he led the National Name Check Program Section. The program supports partner agencies across the U.S. government vetting more than 3 million persons seeking federal employment, access to sensitive information, systems, facilities, special accesses, and various immigration matters.

    Prior to joining the FBI, Mr. Jung was a lieutenant with the Florida Highway Patrol. As a state trooper, he served on the Tactical Response Team and was a certified police and firearms instructor. Mr. Jung served in the Army National Guard. He earned a Bachelor of Science and a Master of Science in criminal justice from the University of Central Florida and a doctorate in human services from Capella University. He is a recipient of the FBI Director’s Manuel J. Gonzales Ethics Award.

    MIL Security OSI –

  • MIL-OSI Security: Nineteen-Year-Old Woman Charged for Assaulting TSA Officers

    Source: US FBI

    PHOENIX, Ariz. – Ma’Kiah Cherae Coleman, 19, of Glendale, Arizona, was indicted on May 17, 2023, by a federal grand jury in Phoenix. The six-count indictment included three counts of assault on Transportation Security Administration (TSA) officers and three counts of Interference with Airport Security Screening Personnel. 

    The indictment alleges that, at approximately 6:00 a.m. on April 25, 2023, at Sky Harbor International Airport in Phoenix, Arizona, Coleman interfered with TSA officers who were conducting security screenings at Security Checkpoint D of Terminal 4. The indictment further alleges that during her interference with TSA officers, Coleman inflicted bodily injury on two TSA officers; specifically, she grabbed one officer by the hair, forcing the officer’s head down against a table, and hitting the officer in the head multiple times, and elbowed the other TSA officer in the head. Coleman also is alleged to have bit the hair of a third TSA officer who had come to the aid of the other two officers who were struggling with Coleman during the altercation.

    Each conviction for Assault on a Federal Officer resulting in Bodily Injury carries a maximum penalty of 20 years in prison, a fine of up to $250,000, and up to three years of supervised release. Assault on a Federal Officer with contact and during the commission of another felony carries a maximum penalty of eight years in prison, a fine of up to $250,000, and up to three years of supervised release. Each conviction for Interference with Airport Security Screening Personnel carries a maximum penalty of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release.

    An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. Coleman has been released from detention on personal recognizance with conditions pending trial.

    The Federal Bureau of Investigation investigated this case with assistance from the Phoenix Police Department. Assistant United States Attorney Glenn McCormick, U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.

    CASE NUMBER:           23-00780-PHX-DLR
    RELEASE NUMBER:    2023-080_M. Coleman

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    2023-080_M. Coleman

    MIL Security OSI –

  • MIL-OSI Security: Four Additional Oath Keepers Sentenced for Seditious Conspiracy Related to U.S. Capitol Breach

    Source: US FBI

    Four members of the Oath Keepers were sentenced this week on seditious conspiracy and other charges for crimes related to the breach of the U.S. Capitol on Jan. 6, 2021. Their actions and the actions of others disrupted a joint session of the U.S. Congress that was in the process of ascertaining and counting the electoral votes related to the presidential election.

    Roberto Minuta, 39, of Prosper, Texas, was sentenced June 1 to 54 months in prison followed by 36 months of supervised release.

    Edward Vallejo, 64, of Phoenix, Arizona, was sentenced on June 1 to 36 months in prison followed by 36 months of supervised release, including the first 12 months to be served on home confinement.

    David Moerschel, 45, of Punta Gorda, Florida, was sentenced on June 2 to 36 months in prison followed by 36 months of supervised release.

    Joseph Hackett, 53, of Sarasota, Florida, was sentenced on June 2 to 42 months in prison followed by 36 months of supervised release.

    The four defendants were found guilty of seditious conspiracy, conspiracy to obstruct an official proceeding, obstruction of an official proceeding and conspiracy to prevent Members of Congress from discharging their official duties on Jan. 23, following a seven-week trial. Hackett was also found guilty of destruction of evidence.

    According to the evidence, in the months leading up to Jan. 6, the defendants and their co-conspirators plotted to oppose by force the lawful transfer of presidential power, including by amassing an armed “quick reaction force” on the outskirts of the District of Columbia. Beginning in late December 2020, via encrypted and private communications applications, the defendants and various co-conspirators coordinated and planned to travel to Washington, D.C., on or around Jan. 6, 2021, the date of the certification of the electoral college vote. The defendants made plans to bring weapons to the area to support the operation. The co-conspirators then traveled across the country to the Washington, D.C., metropolitan area in early January 2021, with paramilitary gear and supplies including firearms, tactical vests with plates, helmets, and radio equipment.

    The defendants conspired through a variety of manners and means, including: organizing into teams that were prepared and willing to use force and to transport firearms and ammunition into Washington, D.C.; recruiting members and affiliates to participate in the conspiracy; organizing trainings to teach and learn paramilitary combat tactics; bringing and contributing paramilitary gear, weapons, and supplies – including knives, camouflaged combat uniforms, tactical vests with plates, helmets, eye protection and radio equipment – to the Capitol grounds; breaching and attempting to take control of the Capitol grounds and building on Jan. 6, 2021, in an effort to prevent, hinder and delay the certification of the electoral college vote; using force against law enforcement officers while inside the Capitol on Jan. 6, 2021; continuing to plot, after Jan. 6, 2021, to oppose by force the lawful transfer of presidential power and using websites, social media, text messaging and encrypted messaging applications to communicate with co-conspirators and others.

    The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s National Security and Criminal Divisions. Valuable assistance was provided by numerous U.S. Attorneys’ Offices across the country.

    The case is being investigated by the FBI’s Washington Field Office, as well as the Metropolitan Police Department, with significant assistance provided by the FBI’s New York, Dallas, Tampa and Phoenix Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the U.S. Secret Service.

    In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

    Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Arizona Adoption Attorney Sentenced to Over Six Years in Prison for Alien Smuggling for Financial Gain

    Source: US FBI

    Fayetteville, Arkansas – First Assistant United States Attorney David Clay Fowlkes for the Western District of Arkansas, Special Agent in Charge Diane Upchurch of the FBI Little Rock Field Office, Special Agent in Charge Peter Kapoukakis of the U.S. Department of State’s Diplomatic Security Service, Miami Field Office and Arkansas Attorney General Leslie Rutledge announced that Paul Petersen, age 45, of Mesa, Arizona was sentenced today to 72 months in federal prison, followed by three years of supervised release and ordered to pay a fine and court costs totaling $105,100.00 for Conspiracy to Smuggle Illegal Aliens for Commercial Advantage and Private Financial Gain. The Honorable Timothy L. Brooks presided over the sentencing in the U.S. District Court in Fayetteville.

    “The defendant in this case violated the laws of three states and two countries during the course of his criminal scheme,” stated First Assistant United States Attorney Fowlkes.”  He exploited a legal loophole and used it to run an International adoption business outside the necessary oversight from the United States or the Republic of the Marshall Islands.  During the scheme, the defendant lied to state court judges, falsified records, encouraged others to lie during court proceedings, and manipulated birth mothers into consenting to adoptions they did not fully understand.  This unique case merited the strong sentence ordered by the Court today.  It is our sincere hope that this sentence sends a message to those who would seek to conduct human trafficking operations in the Western District of Arkansas, and to those who would seek to manipulate and take advantage of people like the Marshallese citizens in this case.”

    According to the Plea Agreement filed in this case, the FBI, the DSS and local law enforcement, have been actively investigating the criminal activities of Paul Petersen, 44, of Mesa, Arizona, for several years. During the course of the investigation, law enforcement determined that the defendant, Paul Petersen, among other things, orchestrated the travel of several pregnant women from the Republic of the Marshall Islands to the Western District of Arkansas.  The purpose of this travel was for Petersen to arrange adoption of their children by families living in the United States. 

    The Republic of the Marshall Islands (RMI) is an island country near the equator in the Pacific Ocean, slightly west of the International Date Line.  In 1983, the United States entered into a Compact of Free Association (hereinafter, the “Compact”) with the RMI government.  The United States and the RMI signed an Amended Compact in 2003, which Congress codified at Public Law 108-188.  Section 141 of the Compact grants RMI citizens the ability to freely enter and take up employment within the United States.  Section 141(b) prohibits RMI citizens from entering the United States under the Compact agreement if their travel is for the purpose of adoption.

    According to the Plea Agreement, the Defendant, Paul Petersen, is a licensed attorney who practices law in Arizona, Utah, and Arkansas.  During the course of the investigation, FBI and DSS agents discovered that Petersen used credit card accounts that he controlled to purchase airline tickets for several women, all citizens of the RMI who did not have official authorization to enter or reside in the United States, to travel from the RMI to the Western District of Arkansas.  This travel arranged and funded by Petersen was in violation of the Immigration and Nationality Act because the women were all citizens of the RMI and were not eligible for admission into the United States under the terms of the Compact.  According to State of Arkansas Circuit Court records, the families who adopted these children paid Petersen significant sums of money for him to act as a legal facilitator of the adoptions.  Finally, also according to the Plea Agreement, witness interviews conducted by the agents investigating Petersen revealed that it was part of the conspiracy that Petersen’s co-conspirators offered the women $10,000 to induce them to travel to the United States and consent to the adoptions.

     A federal grand jury indicted Petersen in October 2019, and he entered a guilty plea in June 2020.

    The FBI and the DSS conducted the investigation. First Assistant United States Attorney David Clay Fowlkes, Deputy Criminal Chief Kim Harris, and Assistant United States Attorney Sydney Butler are prosecuting the case. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also assisted in the investigation.

    MIL Security OSI –

  • MIL-OSI Security: Texas Man Sentenced to Nine Months in Federal Prison for Operating Website That Offered Computer Attack Services

    Source: US FBI

    LOS ANGELES – A Texas man was sentenced today to 9 months in federal prison for running a website that allowed paying users to launch powerful distributed denial of service – or DDoS – attacks that flooded tens of thousands of targeted computers with information and prevented them from being able to access the internet.

    Scott Raul Esparza, 24, of Katy, Texas, was sentenced by United States District Judge Michael W. Fitzgerald who also ordered two years of supervised release with conditions including a full computer monitoring program after serving his prison sentence.

    Esparza pleaded guilty on March 6 to one count of conspiracy to commit unauthorized impairment of a protected computer and one count of unauthorized impairment of a protected computer.

    From 2019 to September 2022, Esparza operated and co-administrated with Shamar Shattock, 21, of Margate, Florida, a DDoS-for-hire service called “Astrostress.com.” The term “DDoS” refers to a type of computer attack in which multiple computers attempt to make connections through the Internet to a targeted computer at the same time. The amount of internet traffic generated by such an attack quickly overwhelms the capacity of the victim computer, resulting in the victim computer being unable to send, receive or respond to commands.

    Astrostress.com was a type of DDoS-for-hire service known as a “booter” service, referring to its ability to “boot” victims off the internet. Customers of Astrostress.com were offered various levels of subscriptions – depending on how many attacks they wanted to conduct and with what power – and were charged accordingly. This site thus enabled co-conspirators worldwide to set up accounts on Astrostress.com and then use the Astrostress.com resources to direct attacks at internet-connected computers around the globe.

    Esparza was responsible for procuring the attack servers and maintaining the attack functionality of Astrostress.com. Esparza also helped Shattock market the service, and he hired a co-conspirator to assist with responding to support requests from customers of the service.

    Esparza neither owned nor had the rights to use the third-party computers he exploited to generate the amplified attack power made available via the Astrostress.com website. He was aware that his customers were using the site to attack computers that did not belong to the customers, and which the customers had no authorization to impair. Esparza personally conducted thousands of attacks using his own service.

    From September 2021 to September 2022, while Esparza administered the website, customers used Astrostress.com to attack tens of thousands of protected computers. As a result, they impaired or attempted to impair the availability of the victim computers by knocking them offline.

    In or around September 2022, shortly after the FBI caused Astrostress.com to shut down, Esparza called Shattock and left him a voicemail message in which he instructed Shattock to “clear” all his social media accounts “so nothing gets linked back to us.”

    Shattock pleaded guilty in March 2023 to one felony conspiracy count and faces up to five years in federal prison at his sentencing hearing, which is expected to occur in the coming months.

    The FBI investigated this matter as part of Operation PowerOFF, a multi-national effort to combat DDoS-for-hire services.

    Assistant United States Attorneys Cameron L. Schroeder, Chief of the National Security Division, and Aaron B. Frumkin of the Cyber and Intellectual Property Crimes Section prosecuted this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the seizure of the Astrostress domain.

    MIL Security OSI –

  • MIL-OSI Security: CEO of “Smart Ring” Wearable Tech Company Arrested on Securities Fraud Charges

    Source: US FBI

    LOS ANGELES – A Boca Raton woman was arrested today on charges alleging she lied to investors to obtain over $2 million for her company ESOS Rings, Inc., which she then used for personal expenses and Ponzi payments to keep the scheme going. 

    Michelle Bisnoff, also known as “Michelle Angeline Silverstein” and “Shelly Silverstein,” 57, previously of Pacific Palisades and Santa Barbara and currently living in Boca Raton, Florida, is charged in a criminal complaint with one count of securities fraud and one count of wire fraud.  Bisnoff was released on bond and ordered to appear for further proceedings in United States District Court in downtown Los Angeles on August 7.

    According to the affidavit in support of the criminal complaint, Bisnoff is the founder and CEO of ESOS.  Allegedly, from 2017 through the end of 2023, Bisnoff fraudulently solicited investments in ESOS by falsely representing ESOS’s business activities and profitability, and the returns that the investors would receive on their investments. Bisnoff allegedly told prospective investors that ESOS owned patents for “smart rings,” a wearable device encoded with financial information, which could be used to make contactless payments. Bisnoff allegedly said ESOS earned transaction fees each time a ring was used, generating profits for ESOS.  Bisnoff also allegedly told prospective investors that ESOS was already manufacturing and selling these smart rings, and that ESOS would soon be bought by Apple or another suitor, resulting in a buy back of the investors’ shares at prices significantly above the share price she was offering to the investors. 

    According to the affidavit, neither Bisnoff nor ESOS owned the patents at issue; the majority of investor funds raised were used to allegedly make Ponzi payments to earlier investors and to benefit Bisnoff personally; the prospective acquirors of ESOS had no knowledge of ESOS and/or no plan to provide capital for it; and ESOS had virtually no business operations, let alone profits.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    If convicted of both charges, Bisnoff faces a statutory maximum sentence of 40 years. 

    The U.S. Securities and Exchange Commission sued Bisnoff and ESOS for allegedly fraudulently raising $1.95 million from ESOS investors.  On September 19, 2023, United States District Judge Consuelo B. Marshall imposed a judgment finding Bisnoff and ESOS jointly and severally liable for disgorgement of $566,483, representing net profits from the fraud, as well as $46,836 in pre-judgment interest and a civil penalty of $223,229, with the total amount due—$836,548—to be paid to the SEC within 30 days.  According to the affidavit, to date neither Bisnoff nor ESOS has paid any of the amounts due.

    The Federal Bureau of Investigation is investigating this matter.  Substantial assistance was provided by the SEC and the United States Attorney’s Office, Southern District of Florida

    Assistant United States Attorney Ranee A. Katzenstein of the Criminal Appeals Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Los Angeles Duo Found Guilty for 10-Day Liquor Store Robbery Spree Ending in Police Chase, Car Crash and Foot Pursuit

    Source: US FBI

    LOS ANGELES – Two Los Angeles men have been found guilty today for committing a string of robberies in a 10-day span that ended in the duo leading law enforcement in a chase in Los Angeles County before crashing a stolen car into a tree then running across six lanes of highway traffic during rush hour.

    At the conclusion of a three-day trial, a jury convicted the two defendants with Hobbs Act robbery. They will be sentenced by United States District Judge Hernán D. Vera on October 24:

    Anthony Flores, a.k.a. “BabyGfar”, 28, of Los Angeles; and

    Ivin Kitu Sanford, 32, of Los Angeles.

    According to court documents, beginning in May 2023, the defendants conspired to rob and robbed two BevMo stores, stealing high-end liquor stored behind security glass and, in some instances, threatened employees with violence. Flores and Sanford would then sell the liquor to individuals on Instagram. The incidents involved the following locations:

    • Long Beach: Flores stole approximately $2,604 worth of liquor.
    • Lakewood: Flores stole approximately $800 worth of liquor. Additionally, Hardgraves allegedly threatened to shoot a store employee if he attempted to interfere with the robbery.

    Furthermore, Flores and Sanford conspired to rob two additional BevMo stores located in Pasadena and West Covina.

    After the robberies, Flores was surveilled and seen selling the bottles. Flores was arrested and released. On June 5, 2023, the two defendants again attempted to rob the Canyon Country BevMo store. Flores and Sanford physically subdued a store victim-employee and attempted to steal high-end bottles of liquor. The defendants fled in a stolen silver Dodge Charger with a stolen license plate and attempted to evade officers during a traffic stop. Flores and Sanford led law enforcement on a chase through Los Angeles County before crashing into a tree. After the crash, defendants ran on foot across the California State Route 14, a 65-mile-per-hour highway, during rush hour traffic. Flores and Sanford were later found in bushes in a desolate area.

    “Callous disregard for the law undermines our community’s sense of safety,” said United States Attorney Martin Estrada. “These defendants’ violent robberies and attempts to evade officers put lives at risk.  Our Operation Safe Cities initiative aims to ensure that violent crimes are met with serious consequences, and today’s convictions demonstrate our steadfast commitment to that goal.”

    Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.

    The case against the third defendant, Jabco Hardgraves, a.k.a. “Jacob Hardgraves,” Baby Monster,” “Lil Turtle”, 27, of Los Angeles is still pending and is not currently set for trial.

    The Federal Bureau of Investigation, Los Angeles County Sheriff’s Department, West Covina Police Department, and Long Beach Police Department investigated this matter.

    Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: Fresno Resident Pleads Guilty to Distributing Methamphetamine

    Source: US FBI

    FRESNO, Calif. — Dario Mata-Manzo, 32, of Fresno, pleaded guilty today to distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, in June 2022, Mata-Manzo negotiated for the sale of crystal methamphetamine for $1,200 per pound and subsequently delivered 8 pounds of the drug to undercover officers in Fresno.

    This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno County Sheriff’s Office and High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), which consists of personnel from the California Department of Justice, the Fresno Police Department, the Fresno County Sheriff’s Office, the Fresno County District Attorney’s Office, the California Highway Patrol, the Madera County Sheriff’s Office, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

    Mata-Manzo is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Nov. 20, 2024. Mata-Manzo faces a maximum statutory penalty of life in prison, a mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI Security: Kern County Man Sentenced to 12 Years in Prison for Receiving and Distributing Child Pornography

    Source: US FBI

    FRESNO, Calif. — Marcus Tatum, 32, of Bakersfield, was sentenced today to 12 years and five months in prison, to be followed by 10 years of supervised release, and ordered to pay $45,000 in restitution, for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, between February 2012 and March 2018, Tatum used a laptop computer to knowingly receive and distribute over 600 files containing visual depictions of children engaging in sexually explicit conduct. The files contained images of children under the age of 12 engaging in sexually explicit conduct, as well as engaging in sado-masochistic conduct.

    This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

    MIL Security OSI –

  • MIL-OSI Security: Second Executive Admits Participating in $150 Million Fraud on Qualcomm

    Source: US FBI

    NEWS RELEASE SUMMARY – October 5, 2023

    SAN DIEGO – Ali Akbar Shokouhi, the primary investor of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today, admitting his role in a massive fraud.

    Shokouhi, a San Diego resident, pleaded guilty to one count of money laundering related to a transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Shokouhi admitted that he schemed with co-defendant Karim Arabi and others to hide both Arabi’s and Shokouhi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. 

    Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm.  In that regard, Shokouhi admitted Arabi was intimately involved in Abreezio’s formation, development, and marketing to Qualcomm, including choosing the “Abreezio” name.  Shokouhi further admitted that he referred to Arabi by a different name in text messages with co-conspirators to obscure Arabi’s involvement in Abreezio.  According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in October 2015. 

    Like co-defendant Sanjiv Taneja, who recently pleaded guilty and admitted his own role in the fraud, Shokouhi acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Shokouhi knew.

    Shokouhi further admitted that he and Arabi concealed Shokouhi’s involvement in Abreezio in part because Shokouhi had previously been terminated from Qualcomm because of a conflict-of-interest violation.  As part of his plea agreement, Shokouhi agreed to forfeit over $16 million that he personally received from Qualcomm’s purchase of Abreezio, and to pay restitution.

    This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.

    DEFENDANTS                                 Case Number 22-CR-1152-BAS                                       

    Karim Arabi                                        Age: 57                                   San Diego, CA

    Sanjiv Taneja                                      Age: 60                                   Cupertino, CA

    Ali Akbar Shokouhi                            Age: 64                                   San Diego, CA

    AGENCIES

    Federal Bureau of Investigation

    Internal Revenue Services, Criminal Investigation

    United States Marshals Service

    *The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Former San Diego Police Officer and Three Others Sentenced for Crimes Stemming From Years-long Operation of Illicit Massage Businesses

    Source: US FBI

    NEWS RELEASE SUMMARY – October 13, 2023

    SAN DIEGO – Peter Griffin, a retired San Diego police vice detective, attorney, and private investigator, was sentenced in federal court today to 33 months in custody for his central role in a conspiracy to operate five California- and Arizona-based illicit massage businesses that profited for years by selling commercial sex under the guise of offering therapeutic massage services. 

    Griffin’s three co-defendants – Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott – who managed the illicit massage businesses in Griffin’s network and actively concealed the scheme from law enforcement, were each sentenced to six months in custody.

    According to court documents and admissions in plea agreements, the defendants owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022.  The criminal scheme included incorporating their businesses with state agencies, managing the businesses’ illicit proceeds, advertising commercial sexual services online, recruiting and employing women to perform commercial sex services in the businesses, and benefiting financially from the illegal enterprises. 

    The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to facilitate the illegal businesses. Griffin oversaw nearly every aspect of the illicit businesses, making himself indispensable to their operation, and assumed the role of “boss.” 

    Through the course of the scheme, the defendants exploited the victims, mostly vulnerable, non-English speaking immigrants from Korea and China with limited employment opportunities and financial resources; pressured and expected the employees to perform commercial sex services inside the businesses; and made substantial financial profits from the illegal commercial sexual activity. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.” 

    Griffin, who left the department in 2002, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit.  Throughout the nine-year criminal scheme, Griffin used the experience and skills he acquired through his work as a vice detective – skills honed by his education as an attorney and work as a private investigator – and his reputation as a former police officer to help the businesses evade law enforcement; conceal evidence; pressure employees to engage in commercial sex; maintain a façade of legitimacy; and thwart regulatory inspections, investigations, and any official action against the businesses. 

    According to his plea agreement, on several occasions, Griffin used his status as a former law enforcement officer to falsely assure local authorities that his businesses would be operated legitimately. On another occasion, Griffin flashed his badge to a local officer responding to a citizen complaint regarding one of his illicit businesses.  Additionally, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about working at the illicit massage business. Griffin’s co-defendants similarly informed employees of Griffin’s law enforcement background and his resulting “connections” and promised he would protect the illegal businesses from law enforcement detection. Griffin also abused resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.

    “Illicit massage businesses hide in plain sight in many communities in America, including our district,” said U.S. Attorney Tara K. McGrath.  “Operators of these businesses often profit through exploitation. For years, Peter Griffin used his connections as a former police officer for his own criminal profiteering. The U.S. Attorney’s Office is committed to prosecuting these kinds of offenses, protecting our communities, and ensuring that legitimate local businesses are not tarnished by criminal activity.”

    “No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”

    “Law enforcement professionals swear an oath to protect and defend our communities, and the spirit of that oath should live on even when we stop carrying a badge,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Griffin preyed on people who should have felt safer because of his presence. He and his co-conspirators failed in their attempts to conceal their illicit activities because of our special agents’ unique ability to follow the money and a strong cross-agency effort to find the evidence to bring these predators to justice.”

    “Peter Griffin abused and exploited vulnerable women by pressuring them into providing commercial sex for profit while taking advantage of his status in the community,” said Chad Plantz, special agent in charge for HSI San Diego. “This sentence sends a clear message to those who mistakenly believe they can get away with such repugnant crimes. HSI, in collaboration with our law enforcement partners, will continue to work vigorously to bring to justice those who exploit and victimize vulnerable members of our community.”

    This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.

    DEFENDANTS                                             Case Number 22cr1824-JO                              

    Peter Griffin                                                    79

    Kyung Sook Hernandez                                 59

    Yu Hong Tan                                                  57

    Yoo Jin Ott                                                     46

    SUMMARY OF CHARGES

    Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),

    Maximum Penalty: Five years in prison, $250,000 fine

    Conspiracy to Commit Wire Fraud

    Maximum Penalty: Thirty years in prison, $1 million fine

    Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity

    Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property

    Misprision of a Felony

    Maximum Penalty: Three years in prison, $250,000 fine

    AGENCIES

    Homeland Security Investigations

    Internal Revenue Service Criminal Investigation

    San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable.  The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. 

    U.S. Department of Justice, Money Laundering Asset Recovery Section, Special Financial Investigations Unit

    Federal Bureau of Investigation

    San Diego Police Department

    San Diego Sheriff’s Department

    Escondido Police Department

    San Diego County District Attorney’s Office

    Tempe, Arizona Police Department. 

    Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

    MIL Security OSI –

  • MIL-OSI Security: Former U.S. Navy Service Member Sentenced for $2 Million Insurance Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – October 17, 2023

    SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, was sentenced in federal court to 30 months in prison after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty.

    Toups’ sentence followed his guilty plea to conspiracy to commit wire fraud. According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to Traumatic Servicemembers Group Life Insurance Program, or TSGLI, and Toups personally obtained about $400,000. TSGLI was funded by service members and the Department of the Navy.

    Toups admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities.

    “Lying and stealing funds meant for injured service members is appalling,” said U.S. Attorney Tara McGrath. “The United States Attorney’s Office is committed to protecting those who serve, and this case is an excellent example of law enforcement collaboration to do just that.”

    “Fraudulently filing claims for unearned benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “This sentence holds the defendant accountable for his egregious actions, and the VA OIG will continue to work tirelessly with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”

    “Mr. Toups participated in a fraud scheme that defrauded the American taxpayer and diverted vital money, care, and resources from service members recovering from traumatic injuries,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This sentence demonstrates the commitment of NCIS and its partners to combatting fraud that harms the Department of the Navy and its warfighters.”

    “Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated. The FBI will continue to collaborate with our law enforcement partners to ensure those who commit such acts are held accountable.”

    According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy service members to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.

    Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and others conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.

    According to court records, Toups and his co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.

    DEFENDANT           18CR1674-JLS

    Christopher Toups      46        White, GA

    RELATED CASES

    Kelene Meyer                         18CR1674-JLS                       Jacksonville, FL

    Dr. Michael Villarroel            18CR1674-JLS                       Coronado, CA

    Paul Craig                               18CR1674-JLS                       Austin, TX

    Richard Cote                           18CR1674-JLS                       Oceanside, CA

    Earnest Thompson                  18CR1674-JLS                       Murrieta, CA

    Ronald Olmsted                      20CR0659-JLS                       Mobile, AL

    Anthony Coco                         20CR0197-JLS                       San Diego, CA

    Stephen Mulholland               20CR0052-JLS                       Panama City Beach, FL

    SUMMARY OF CHARGES

    Toups:

    18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    Others:

    18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 1343, Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 287, Making a False Claim

    Maximum Penalty: Five years in prison, $250,000 fine

    AGENCIES

    Federal Bureau of Investigation

    Naval Criminal Investigative Service

    Department of Veterans Affairs – Office of Inspector General

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Minnesota Man Charged with Production of Child Pornography

    Source: US FBI

    ST. PAUL, Minn. – Michael Thompson of Minneapolis, Minnesota, has been charged by complaint with one count of production and attempted production of child pornography, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, on December 29, 2024, Michael Benjamin Thompson, 37, drove from Minnesota to Iowa to visit a teenage minor, whom he had met online.   While there, Thompson engaged the minor in various sexual activities. Thompson and the minor continued messaging and on January 30, 2025, Thompson induced the minor victim to send him sexually explicit images.  

    Thompson was charged via criminal complaint in U.S. District Court. He had his detention hearing on May 2, 2025 before Judge Elizabeth Cowan Wright and was ordered to remain in custody pending further proceedings.

    “We are experiencing an epidemic of online-facilitated sex abuse in Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “My office will continue to aggressively prosecute predators who use the internet to prey on our vulnerable children.”  

    “Crimes against children violations are among the most reprehensible crimes we investigate,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “The FBI remains steadfast in its commitment to ensure that those who exploit or harm children are brought to justice. We will continue to work closely with our partners to pursue offenders and safeguard our communities.”

    This case is the result of an investigation by the FBI and the Ankeny Police Department.

    If you believe you or your child may be a victim of Michael Thompson, please call the FBI tip line at 1-800-CALL-FBI.

    Assistant U.S. Attorney Ruth S. Shnider is prosecuting the case.

    A complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including One in the District of South Dakota

    Source: US FBI

    SIOUX FALLS – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
     
    “The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

    “Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

    Those arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In South Dakota, the FBI received a Cybertip through NCMEC that Brandon Rouillard, age 31, of Evergreen, South Dakota, had engaged in sexual conversations with a local 14-year-old girl over Facebook. The FBI investigated the Cybertip and learned Rouillard requested that the 14-year-old send him sexual videos and images constituting child sexual abuse material. Rouillard received and saved the child sexual abuse material to his Facebook account. Rouillard also discussed meeting the 14-year-old for a sexual encounter. Rouillard was arrested on a criminal complaint on May 1, 2025, and his initial appearance was held before a federal magistrate judge on May 2, 2025. He was detained pending a preliminary hearing scheduled for May 9, 2025.

    “The U.S. Attorney’s Office in the District of South Dakota routinely partners with federal, state, local, and tribal law enforcement to hold accountable those who seek to sexually exploit children through social media applications and gaming platforms,” said U.S. Attorney Alison J. Ramsdell. “Whether part of a nationwide effort, a local operation, or an individual investigation, our office does not shy away from aggressively prosecuting those who use the Internet to take advantage of vulnerable youth in our communities.”

    “Protecting children from exploitation is one of the FBI’s highest priorities,” said Special Agent in Charge, Alvin M. Winston Sr., of FBI Minneapolis. “Operation Restore Justice underscores the strength of our partnerships and our shared determination to bring child predators to justice. Those who exploit children should know there is no hiding place – we will find you and bring you to justice.”

    In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. It is of vital importance that parents and guardians talk frequently and openly with children about responsible Internet use. It is also essential that the community understands the warning signs of cyberbullying and sextortion, including:

    1. Sudden changes in behavior, such as becoming withdrawn, anxious, or secretive;
    2. Abruptly deleting social media accounts or frequently creating new accounts;
    3. Turning off or hiding devices in the presence of a parent or other adult;
    4. Clearing their web browser cache and/or history;
    5. Unexplained money or gift cards; and
    6. Spending less time with friends.

    This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children, seeking justice for victims, and raising awareness through community education. These types of cases are brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.

    The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

    The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How we can help you: Parents and caregivers protecting your kids

    An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –