NewzIntel.com

Category: Department of Justice

  • MIL-OSI USA: Spokane Dermatologist Agrees to Pay $1.4 Million to Resolve Claims of Fraudulently Obtaining COVID-19 Funds

    Source: United States Small Business Administration

    Click Here to View the Original U.S. Department of Justice (DOJ) Press Release

    The United States Attorney’s Office announced William Philip Werschler, age 66, of Spokane, Washington, along with his businesses Spokane Dermatology Clinic, Premier Clinical Research L.L.C., and 3rd and Sherman Plaza L.L.C., have agreed to pay $1,400,000 to resolve claims under the False Claims Act related to alleged mis-spending of funds intended to benefit struggling businesses during the COVID-19 pandemic.

    On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.  EIDL funds were to be used solely as working capital to alleviate economic injury to a business caused by the COVID-19 disaster, such as paying payroll, health insurance premiums, rent, utilities, and fixed debt payments.  EIDL funds were not to be used for personal purposes or to obtain real property or to refinance indebtedness which was incurred prior to the disaster event is a prohibited use of EIDL funding.

    According to the settlement agreement, beginning no later than April 2020 and continuing until at least July 2022, Werschler applied for EIDL loans for his businesses: Spokane Dermatology Clinic, Premier Clinical Research, and 3rd and Sherman Plaza L.L.C.

    Shortly after receiving EIDL funds, Werschler made personal purchases of a 2011 Porsche 911 GT3 and a 1997 Porsche Carrera for a total of $252,375.00.  Werschler also used $553,143 to purchase two properties across from his Spokane Dermatology Clinic.  The purchase of personal automobiles and real property are both contrary to the proper use of EIDL funds.  The global resolution entered into by Werschler and his companies also resolved related criminal charges.

    This case was investigated by the IRS Criminal Investigations, the FBI, and the Small Business Administration Office of Inspector General.

    The settlement agreement can be viewed at the link below.

    settlement_agreement.pdf

    Related programs: COVID EIDL, Pandemic Oversight

    MIL OSI USA News –

  • MIL-OSI Security: Jay Clayton Announces Selection Of Sean Buckley As Deputy U.S. Attorney

    Source: Office of United States Attorneys

    Jay Clayton, the United States Attorney for the Southern District of New York, announced today the selection of Sean Buckley as Deputy U.S. Attorney. 

    Mr. Buckley joins the Office from Kobre & Kim, where he has served since 2018 and handled a wide variety of securities and other criminal and regulatory matters for companies and individuals.  Mr. Buckley previously served as a prosecutor at the U.S. Department of Justice for nearly a decade, where he was most recently the Co-Chief of the Office’s Terrorism and International Narcotics Unit. In that role, he oversaw complex international investigations involving terrorism financing, economic espionage, sanctions violations, and anti-money laundering matters across Europe, the Middle East, Africa, and Asia.

    From 2009 to 2018, Mr. Buckley served as an Assistant U.S. Attorney in the Southern District of New York, handling a wide range of national security and international criminal matters.

    Prior to joining the government, Mr. Buckley practiced at Willkie Farr & Gallagher LLP from 2003 to 2009.  Mr. Buckley received his A.B. from Princeton University, an M.A. from the University of Virginia Graduate School of Arts & Sciences, and his J.D. from the University of Virginia School of Law.  He has been recognized with several honors, including the Attorney General’s Distinguished Service Award and the Assistant Attorney General’s Exceptional Service Award.

    “We are excited to welcome Sean Buckley back to the Office as the Deputy United States Attorney for the Southern District of New York,” said U.S. Attorney Jay Clayton.  “Sean demonstrated exceptional leadership and case-making skills during his prior service in the Office. He is deeply respected by the New York Bar and embodies the commitment to professionalism and the safety of the people of New York that runs through our Office. We are fortunate to once again benefit from Sean’s tremendous intellect and strategic thinking.  With the combination  of Sean,  Amanda Houle, and Jeff Oestricher, I am confident that the Office could not have a more formidable and effective leadership team.”

    MIL Security OSI –

  • MIL-OSI Security: Fort Pierce Jury Convicts a Louisiana Registered Sex Offender of Various Internet Sex Crimes Involving a Martin County Minor

    Source: US FBI

    MIAMI – On May 20, a federal jury sitting in Fort Pierce, Florida convicted Nicolas James Palmisano, 45, of Destrehan, Louisiana, for attempted enticement of a minor, attempted production of visual depictions involving sexual exploitation of a minor, receipt of visual depictions involving sexual exploitation of a minor, transfer of obscene material to a minor, and offense by a registered sex offender.

    According to court records and evidence introduced during trial, in 2019, Palmisano was convicted in St. Charles Parish, Louisiana for sexual offenses involving a juvenile. Upon the completion of his four-year prison sentence, Palmisano registered as a sex offender with the St. Charles Parish Sheriff’s Office in the town in which he resided.

    In May 2024, the Martin County Sheriff’s Office (MCSO) learned that a minor had images of sexually explicit activity on her cellular phone. An MCSO computer forensic examiner recovered messages, images, and recordings from the minor’s cellular phone that were sent from Palmisano’s cellular number. Despite acknowledging that the minor was 15 years old, Palmisano wrote thousands of sexually explicit messages and sent multiple sexually explicit images, as well as audio and video recordings, of himself between February 22 and May 6, 2024. Palmisano also solicited, and obtained, sexually explicit images from the minor.

    In August 2024, members of the FBI and MCSO arrested Palmisano at the St. Charles Parish Sheriff’s Office, after he arrived for his annual Sexual Offender Registration review and update. Law enforcement executed a search warrant on Palmisano’s residence and recovered his cellular phone, which was found to contain the sexually explicit material that Palmisano and the minor exchanged.

    A sentencing hearing is scheduled for August 25, before U.S. District Judge Jose E. Martinez. Palmisano faces a mandatory minimum sentence of 35 years up to life in prison, and up to a lifetime of supervised release.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami, and Martin County Sheriff John Budensiek made the announcement. 

    FBI Fort Pierce investigated the case, with assistance from MCSO, FBI New Orleans, and St. Charles Parish Sheriff’s Office. 

    Fort Pierce Branch Managing Assistant U.S. Attorney Carmen M. Lineberger and Assistant U.S. Attorney Jessica Kahn Obenauf are prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals 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 www.projectsafechildhood.gov.

    Anyone with information relating to child sexual exploitation or abuse is encouraged to call the FBI at 1-800-CALL-FBI.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-14044.

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    MIL Security OSI –

  • MIL-OSI Security: St. Louis Nonprofit Executive Admits $2.3 Million-Dollar Student Meal Fraud

    Source: US FBI

    ST. LOUIS – The owner of a nonprofit on Tuesday admitted fraudulently obtaining more than $2 million in funds intended to feed low-income Missouri children, both before and during the coronavirus pandemic.

    Cymone McClellan, 32, of St. Louis, pleaded guilty in U.S. District Court in St. Louis to one count of conspiracy to commit wire fraud. She admitted that she and Terra Davis, 43, submitted $2.3 million worth of false and fraudulent meal reimbursement claims to the Missouri Department of Health and Senior Services from about January 2019 to June 2022, on behalf of their nonprofit, Sister of Lavender Rose (S.O.L.R.). Davis was McClellan’s second-in-command at S.O.L.R.

    McClellan and Davis submitted false reimbursement claims for a total of 860,876 meals that they purportedly supplied to Missouri children. But McClellan actually only purchased enough food and milk to serve fewer than a quarter of those meals, her plea agreement says.

    McClellan provided bogus sign-in sheets to DHSS falsely claiming to have taken the attendance of meal recipients at certain food distribution locations. S.O.L.R. submitted management plans to DHSS falsely asserting that state meal reimbursement dollars were spent only in connection with the provision of meals to low-income children, and that the nonprofit did not use meal money to make purchases over $5,000. McClellan’s management plans also falsely claimed that all checks were signed by her finance director, who was not a signor on S.O.L.R.’s account.

    McClellan admitted spending $60,000 of the money that was to be used for feeding children for the down payment on a house in Collinsville, Illinois. She spent another $86,172 on a house in Florissant, Missouri, and almost $135,000 more to buy five vehicles: a 2021 Chevrolet Traverse, a 2012 Chevrolet Express G3500 van, a 2020 Mercedes-Benz Metris van, a 2012 Ford E350 box truck and a 2018 Lexus RX SUV.

    As part of her plea, McClellan has agreed to forfeit the vehicles and houses. At her sentencing, now set for August 26, she will be ordered to repay the rest of the money.

    Davis pleaded guilty in December to the same wire fraud conspiracy charge. She is scheduled to be sentenced on June 5.

    This case was investigated by the FBI and the U.S. Department of Agriculture Office of Inspector General. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.  

    Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    MIL Security OSI –

  • MIL-OSI Security: Tama Man Pleads Guilty to Distributing and Possessing Child Pornography

    Source: US FBI

    Jacob Samuel Yang, age 36, from Tama, Iowa, pled guilty today in federal court in Cedar Rapids to distributing child pornography and possessing child pornography.

    In a plea agreement, Yang admitted that in March 2024, he sent child pornography to other people.  He stored child pornography on his cellular phone and computer.  The child pornography included a depiction of an infant or toddler.  

    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 United States 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 individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

    Sentencing before United States District Court Chief Judge C.J. Williams will be set after a presentence report is prepared.  Yang remains in custody of the United States Marshal pending sentencing.  Yang faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $250,000 fine, $62,200 in special assessments, and a lifetime term of supervised release following any imprisonment.

    The case is being prosecuted by Assistant United States Attorney Devra T. Hake and was investigated by the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, the Tama County Sheriff’s Office, the Tama Police Department, and the Marshalltown Police Department.  

    Court file information is at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  

    The case file number is 25-CR-24.  

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Fourteen Individuals, Including 10 Mexican Nationals, Charged with Fentanyl and Cocaine Trafficking and Immigration Offenses

    Source: US FBI

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced today that a criminal complaint charging fourteen individuals was unsealed, and thirteen of the fourteen charged individuals have been arrested.  Additionally, multiple search warrants were executed in the Eastern District of Wisconsin and the Central District of California in coordination with the arrests. All the defendants are charged with narcotics trafficking, including fentanyl and cocaine, and two of the individuals, Osmar Venejas-Mejia and Hector Rodriguez-Villalobos, are charged with illegal reentry after removal from the United States.

    The defendants charged in this law enforcement action are identified as follows: 

    Name                                                   Age            Citizenship
    FERNANDO PALMA-JIMENEZ            49              Mexico
    DANIEL MORALEZ                               37              USA 
    CARMELO HERNANDEZ-RAMIREZ    40              Mexico
    LUIS QUINONEZ-HERNANDEZ          36              USA 
    REYNALDO SANCHEZ-GONZALEZ   48              Mexico 
    CARLOS PEREZ-SANTANA                32              Mexico
    EQUIEL MARTINEZ                             39              Mexico 
    GERARDO OSORIO-JARAMILLO       47               Mexico
    JESUS MEDINA-RODRIGUEZ            47              Mexico
    ERIK RODRIGUEZ                               33              USA 
    ANDREA ROA                                     30              Mexico
    HECTOR RODRIGUEZ-VILLALOBOS 35              Mexico
    OSMAR VENEJAS-MEJIA                  34             Mexico
    JOSEPH MARINCIC                           40             USA

    According to the criminal complaint, between approximately March 2023 and the present, the fourteen defendants conspired to possess with intent to distribute and to distribute controlled substances, including fentanyl and cocaine, and that multiple defendants possessed with intent to distribute controlled substances, distributed controlled substances, and used communication facilities to facilitate the distribution of controlled substances.  If convicted, the penalties for the narcotics trafficking offenses carry maximum penalties of forty years to life in prison depending on the specific offense and weight of controlled substances charged. 

    The complaint also alleges that Osmar Venejas-Mejia and Hector Rodriguez-Villalobos, both Mexican nationals, were previously removed from the United States and unlawfully reentered the United States. If convicted, the penalties for the illegal reentry offense carry a maximum penalty of two years in prison and a $250,000 fine.  

    The defendants were charged based on a long-running investigation by law enforcement officers from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and Wisconsin Department of Justice Division of Criminal Investigation (DCI), in partnership with the North Central High Intensity Drug Trafficking Areas (HIDTA). This case is being prosecuted by Assistant United States Attorneys Gail Hoffman and Elizabeth Monfils.  Multiple law enforcement agencies participated in the arrests and execution of search warrants related to the case, including the Federal Bureau of Investigation (FBI), United States Marshal Service (USMS), the United States Postal Inspection Service (USPIS), Internal Revenue Service-Criminal Investigations (IRS-CI), the West Allis Police Department, the Brookfield Police Department, the Waukesha Police Department, the South Milwaukee Police Department, Milwaukee County Sheriff’s Department, Waukesha County Sheriff’s Department, and Wisconsin State Patrol. 

    This case was charged as part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    The public is cautioned that an indictment or criminal complaint is merely a charge and the defendant is presumed innocent until and unless proven guilty.

     # #  #

    For Additional Information Contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    414-297-1700

    Follow us on Twitter

    MIL Security OSI –

  • MIL-OSI USA: News 05/30/2025 Blackburn Calls on DOJ to Investigate Nashville Mayor and His Office for Obstructing Immigration Enforcement Operations

    US Senate News:

    Source: United States Senator Marsha Blackburn (R-Tenn)
    NASHVILLE, Tenn. – Today, U.S. Senator Marsha Blackburn (R-Tenn.) sent a letter to United States Attorney General Pam Bondi formally requesting that the U.S. Department of Justice (DOJ) launch an investigation into the actions of Nashville Mayor Freddie O’Connell and his office for attempting to undermine President Trump and Immigration and Customs Enforcement (ICE) in their work to make Tennessee communities safer by arresting illegal aliens and getting dangerous criminals off the streets:
    Mayor O’Connell’s Efforts to Obstruct Immigration Enforcement Raise Deep Concerns
    “I write to express my deep concern with the recent actions of Nashville Mayor Freddie O’Connell and his efforts to obstruct the work of the Trump administration to secure our border, deport criminal illegal aliens, and Make America Safe Again. After a joint operation conducted by the Tennessee Highway Patrol and Immigration and Customs Enforcement (ICE) led to the arrests of nearly 200 illegal immigrants in Nashville, Mayor O’Connell signed an executive order requiring city departments—including local law enforcement—to report all communications they have with federal immigration authorities. The intent of this executive order is clear: obstruct ICE operations in Nashville and tip off criminal illegal aliens to avoid apprehension and detention.
    Mayor O’Connell Has Placed Federal Law Enforcement Officers Directly in Harm’s Way
    “This week, O’Connell publicly released the names of multiple Homeland Security Investigations (HSI) and ICE agents, along with their immigration enforcement activities. By doxxing these hard working law enforcement officers who are working to make the Nashville community safe, the mayor has placed them directly in harm’s way. Specifically, he has revealed the names of these brave men and women to the criminal members of Tren de Aragua, MS-13, and other violent gangs. At a time when ICE officers have faced a 413% increase in assaults, demonizing these brave law enforcement officers will not be tolerated… President Trump and his administration are already hard at work deporting criminal illegal aliens and making our communities safe again, and an investigation into the mayor’s conduct would be a tremendous step forward in holding rogue mayors and local officials to account.”
    Click here to read the full letter. 
    RELATED

    MIL OSI USA News –

  • MIL-OSI Security: Former Secretary of Louisiana Department of Wildlife and Fisheries Indicted by Federal Grand Jury

    Source: US FBI

    LAFAYETTE, La. – Acting United States Attorney Alexander C. Van Hook announced that Jack Montoucet, former Secretary of the Louisiana Department of Wildlife and Fisheries (LDWF), has been indicted on federal charges. A federal grand jury in Lafayette has returned an indictment charging Montoucet with one count of conspiracy to commit bribery and wire fraud, three counts of wire fraud, and one count of conspiracy to commit money laundering. 

    The indictment alleges that LDWF was an agency of the State of Louisiana that received benefits under federal programs involving grants, contracts, and other forms of assistance. While Secretary of the LDWF, Montoucet was the chief executive and empowered to enter contracts on LDWF’s behalf. Dusty J. Guidry was a Commissioner on the LDWF Commission which was charged with the control and supervision of the wildlife of the State of Louisiana and operated as a policy-making and budgetary control board. It is alleged that Guidry was placed on the Commission by and would take actions as directed by Montoucet. Leonard C. Franques, IV was a resident of the State of Louisiana and owned DGL1, LLC, a business created to provide online educational courses to be used by LDWF and was registered with the State of Louisiana in May 2020; Franques also owned LWF, LLC, (LWF) a Louisiana company registered with the State of Louisiana in June 2020. 

    It is alleged in the indictment that from approximately May 2020 until June 2022, Montoucet knowingly and unlawfully conspired with Guidry and Franques, and others known and unknown to the grand jury, to accept and agree to accept kickbacks from Franques in return for being influenced in connection with awarding a state contract to DGL1. 

    The indictment further alleges that Montoucet and Guidry used their official positions at LDWF to award a state contract to DGL1 and under the contract, DGL1 would provide online hunters’ education and boaters’ education courses and the education courses to resolve LDWF citations. It is alleged that DGL1 would keep a portion of the revenue generated from providing those services and in exchange, Franques agreed to provide, and Montoucet and Guidry agreed to accept, kickbacks and other things of value. It is alleged that as part of their conspiracy, Franques attempted to conceal the true source and nature of payments to Montoucet and Guidry. 

    According to the indictment, from on or about November 10, 2021, until June 10, 2022, LDWF received $454,174.14 from the LWF contract signed by Montoucet, of which $122,507.96 was held as a kickback for Montoucet, to be paid after he completed his term as LDWF Secretary. The indictment alleges that Montoucet, Guidry, and Franques agreed that after Montoucet’s retirement from LDWF, they would hire Montoucet and pay his kickbacks as a purported “signing bonus,” in order to conceal the true nature of these funds. 

    If convicted, Montoucet faces a sentence of not more than 5 years in prison on the conspiracy count, and up to 20 years in prison on the wire fraud and money laundering counts, and a fine of up to $1,000,000. 

    The case is being investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorneys Myers P. Namie, Lauren L. Gardner, and LaDonte A. Murphy, along with Trial Attorneys Trevor Wilmot and Steven Loew of the Criminal Division’s Public Integrity Section of the Department of Justice. 

    An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: ELLISON C. TRAVIS APPOINTED ACTING UNITED STATES ATTORNEY FOR THE MIDDLE DISTRICT OF LOUISIANA

    Source: Office of United States Attorneys

    Ellison C. Travis has been appointed by President Trump as the Acting United States Attorney for the Middle District of Louisiana. Mr. Travis replaces April M. Leon, who has held the position since February 2025.

    Mr. Travis stated, “I am honored that President Trump has appointed me Acting United States Attorney for the Middle District of Louisiana. Our office will work every day with our federal, state, and local partners to execute Operation Take Back America, reduce violent crime, and enforce federal law in our district.”

    Mr. Travis served as Executive Assistant United States Attorney since July 2023. He previously served as Acting United States Attorney in 2021, as well as First Assistant United States Attorney from 2018-2023. Previously, he was with the Louisiana Department of Justice for over twenty years. During his tenure with the Louisiana Department of Justice, Mr. Travis served as the Director of the Medicaid Fraud Control Unit, Criminal Division (2017-2018), as an Assistant Attorney General in the Medicaid Fraud Control Unit (2002–2017), and as an Assistant Attorney General in the Criminal Division (1997–2002). Mr. Travis also served as an Assistant District Attorney (1990–1996). During his thirty-five years in public service, he prosecuted all manner of criminal matters, including violent crimes, financial crimes, and public corruption. Mr. Travis helped author and pass legislation to penalize those who commit electronic abuse of persons with infirmities and those who commit public program fraud. He also represented the Medicaid Fraud Control Unit in the state Legislative Task Force on Medicaid Fraud Prevention.

    Mr. Travis received his J.D. from Louisiana State University, Paul M. Hebert Law Center, and his B.A. in Economics from Louisiana State University.

    MIL Security OSI –

  • MIL-OSI Security: Second Defendant Pleads Guilty For Fraudulently Obtaining Millions In Public Benefits And Laundering Proceeds To China

    Source: Office of United States Attorneys

    HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Carlos A. Grijalva, age 59, of Simi Valley, California, pleaded guilty before United States District Judge Jennifer P. Wilson to one count of conspiracy to launder monetary instruments in the amount of approximately $46.4 million.

    Grijalva is the second defendant to plead guilty in connection with this case, following the guilty plea of Bruce Jin in January 2025. In April 2025, Grijalva, along with a third defendant, Brian R. Cleland, was charged in a superseding indictment with conspiracy to launder monetary instruments and other offenses, after charges were originally filed against all three defendants in August 2023.

    According to Acting United States Attorney John C. Gurganus, Grijalva admitted that, from 2021 to early 2022, he, Cleland, and Jin, along with other unnamed coconspirators, agreed to launder state unemployment compensation funds that they knew had been obtained through fraud. Grijalva also admitted that he and the others entered into a series of agreements that made it appear as if they were operating legitimate businesses selling masks and other COVID19 personal protective equipment while knowing that the funds obtained and laundered through their companies were derived from fraudulently obtained state unemployment compensation (“UC”) benefits.

    Grijalva also admitted to knowing that bank accounts of identity theft victims were unlawfully accessed across the United States and that fraudulent UC claims were generated and paid to these accounts. Grijalva understood that this fraudulent activity was being conducted by fraudsters located in China. Through this pattern of financial activity, tens of millions of dollars of fraudulent UC payments were issued to accounts by the Pennsylvania Treasury Department and other state treasuries around the United States.

    Grijalva also admitted that he and Cleland then provided the bank account information of these identity theft victims to payment processing companies to generate ACH payments to accounts controlled by him and Cleland. The bank account information being provided to him and Cleland, including account numbers and routing numbers, was likewise from an individual in China, known in the superseding indictment as “COCONSPIRATOR 2.” As a result of this fraudulent activity, Grijalva and Cleland obtained over $46 million in fraudulently obtained funds. Grijalva admitted that he and Cleland discussed, on a number of occasions, that the supposed sale of COVID-19-related PPE would be their cover story for this financial activity.

    After that, Cleland and Grijalva, using a number of different bank accounts, transferred over $30 million to companies controlled by Bruce Jin, as well as transferring additional funds to an individual known as “COCONSPIRATOR 1” in the superseding indictment. Grijalva admitted that he and Cleland made transfers to Jin knowing that Jin would, in turn, transfer at least a portion of these funds to parties located in China.

    Grijalva also admitted that he and Cleland each made an estimated $2.2 million dollars in personal profit from the scheme.

    Grijalva agreed to certain property forfeitures as part of his plea agreement, including approximately $46.4 million in US currency, as well as the contents of several bank accounts and real properties located in Hawaii and California that were purchased using funds traceable to the charged offenses. One of these properties, located in California, was purchased in the name of one of Grijalva’s family members.

    Jin has been detained since his arrest in August 2023 and is awaiting sentencing. Cleland has pleaded not guilty to the charged offenses and is awaiting trial.

    The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor, Office of Inspector General. Assistant U.S. Attorneys Ravi Romel Sharma and K. Wesley Mishoe and Trial Attorney Patrick B. Gushue of the Department of Justice’s Money Laundering & Asset Recovery Section, Bank Integrity Unit, are prosecuting the case. 

    The U.S. Attorney General previously established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

    The maximum penalty for conspiracy to launder monetary instruments is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.

    A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: 282 charged in new cases related to SDTX’s continuing efforts to secure southern border

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    HOUSTON – In support of Operation Take Back America, the Southern District of Texas has filed another 281 cases in immigration and border security-related matters from May 23-29, announced U.S. Attorney Nicholas J. Ganjei. 

    Among those are 105 people who face charges of illegally reentering the country. The majority have prior felony convictions for narcotics, violent crime, sexual offenses, prior immigration crimes and more. A total of 163 people are charged with illegally entering the country, while seven cases allege various instances of human smuggling with the remainder involving other immigration crimes, child sexual abuse material (CSAM) and firearms.

    One such person charged this week is Carlos Enrique Gonzalez-Pena, an alien present in the United States with a work visa who was allegedly found in possession of CSAM. The charges allege he had visited the darknet where he viewed child pornography sites. A forensic examination of his computer allegedly resulted in the discovery of two video files involving a female child approximately four to six years of age, one of which showed her being sexually assaulted. If convicted, he faces up to 20 years in prison. 

    Another one of the cases involves Humberto Vasquez – a Mexican male who allegedly attempted to exit the United States via the Donna Port of Entry. Upon inspection, law enforcement discovered four pistols belonging to him as well as 870 rounds of assorted ammunition, according to the charges. The complaint alleges he did not possess an export license that would authorize him to transport such items into Mexico and faces up to 10 years in prison if convicted of illegal exportation of firearms. 

    Authorities also found three Mexican nationals near Mission this week with no legal permission to be in the United States, according to the complaints against them. Victor Manuel Ornelas-Ochoa, Alfredo Samuel Gallegos-Esquivel and Exequiel Solano had allegedly been previously removed from the country and have felonies to include possession with intent to deliver marijuana, human smuggling and aggravated sexual assault of a child, respectively. They are all charged with illegal reentry and could receive up to 20 years in prison. Another man who faces the same charges and penalty is Julio Sanchez-Lorenzo. He is a Mexican male who had just been removed from the United States via Brownsville May 21 with no permission to return, according to the charges. However, authorities allegedly found him just six days later near Roma. 

    In addition to the new cases, a federal jury in Houston convicted a Mexican citizen for illegally reentering the United States under an assumed identity. On June 11, 2024, authorities found Jose Martin Valdez-Galvan in Laredo. At that time, he provided a false name and claimed to be a U.S. citizen. Testimony revealed Valdez-Galvan originally stole the person’s identity to avoid previous charges for unauthorized use of a motor vehicle. Valdez-Galvan was an illegal alien who had been previously removed but returned to the United States without permission. He had assumed the other person’s identity in 2015 after his second removal. He faces up to a 20-year prison sentence. 

    “Both public safety and basic common sense require us to know who is entering and residing in our country. Those that adopt false or stolen personas to hide their identities pose an increased criminal risk to our community,” said Ganjei. “Theft of an American citizen’s identity by a foreign national will not be tolerated, and those that engage in such criminality will be charged, punished, and, if appropriate, deported.”

    In Corpus Christi, an intoxicated driver admitted he was an alien illegally in possession of firearm. Honduran national Josias Eliseo Ulloa-Pavon had been driving under the influence of alcohol before crashing Feb. 18. Upon arrival at the scene, authorities found him pinned inside the fully overturned vehicle. He had red bloodshot eyes, appeared unsteady on his feet and had a strong odor of alcohol. A search revealed a magazine containing six rounds of ammunition in his pocket and a Bersa Model Thunder .380 caliber pistol in his car.  

    Two men from Brownfield admitted to conspiring to transport illegal aliens in Laredo federal court this week. On March 22, authorities observed a Ford Expedition circumventing a Border Patrol (BP) checkpoint near Laredo. Mac Quese Howard was driving, and De Richardson Miller was in the front passenger seat providing directions. Authorities conducted a traffic stop and found three illegal aliens hidden in the back seat. Miller and Howard admitted they had travelled to Laredo for the sole purpose of picking up the aliens and transporting them to San Antonio for payment.

    Also announced was the sentencing of a Mexican national with a felony criminal history and multiple prior removals for illegally reentering the country again. Juan Humberto Lara Molina’s has a lengthy drug, weapons and immigration criminal history including two other illegal reentry convictions. He was also convicted of dealing cocaine in Indiana and unlawful sale of firearms in Illinois and was previously ordered removed from the United States on multiple occasions, most recently in November 2021. However, law enforcement discovered him at the Falfurrias BP checkpoint Dec. 12, 2024. He was one of seven individuals being transported farther north by human smugglers in a tractor-trailer. He was ordered to serve 24 months in federal prison. 

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement (ICE) – Homeland Security Investigations, ICE – Enforcement and Removal Operations, BP, Drug Enforcement Administration, FBI, U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives with additional assistance from state and local law enforcement partners.

    The cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    Under current leadership, public safety and a secure border are the top priorities for this district. Enhanced enforcement both at the border and in the interior of the district have yielded aliens engaged in unlawful activity or with serious criminal history, including human trafficking, sexual assault and violence against children.  

    The U.S. Attorney’s Office for the Southern District of Texas remains one of the busiest in the nation. It represents 43 counties and more than nine million people covering 44,000 square miles. Assistant U.S. Attorneys from all seven divisions including Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo work directly with our law enforcement partners on the federal, state and local levels to prosecute the suspected offenders of these and other federal crimes. 

    An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

    MIL Security OSI –

  • MIL-OSI USA: Rep. Ilhan Omar’s Statement on DOJ Move to Dismiss Minneapolis Police Consent Decree

    Source: United States House of Representatives – Representative Ilhan Omar (DFL-MN)

    WASHINGTON – Rep. Ilhan Omar (D-MN) issued the following statement on the Department of Justice’s decision to dismiss the Consent Decree.

    “Five years after George Floyd’s murder in our city, the Department of Justice is now walking away from the very reforms his death demanded. This decision by the Trump Administration is truly a disgrace and a betrayal of the people who took to the streets demanding change and to the families who have lost a loved one to police violence.

    “The consent decree was about honoring George Floyd’s life with real systemic change and addressing the unconstitutional policing that has harmed Black and Brown communities for decades at the hands of the Minneapolis Police Department. For the Trump Administration to dismiss this decree during the anniversary week of George Floyd’s murder is cynical. It sends a chilling message that police violence can be swept under the rug and that federal oversight is expendable when political winds shift.

    “Despite this disappointing decision, I’m encouraged that Minneapolis city leaders have publicly stated their intent to implement the crucial reforms in the Consent Decree. Their commitment to reform is critical for the sake of police accountability but it does not absolve the federal government of its responsibility. Real change requires partnership and transparency at every level of government and the DOJ turning its back on this process undermines that trust we are working to rebuild.

    “I stand with our community, with the Floyd family, and with everyone fighting for a world where an innocent man’s life cannot be taken without consequence.” 

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    MIL OSI USA News –

  • MIL-OSI USA: Velázquez Leads Push to End Federal Funding for Private Immigration Detention Facilities

    Source: United States House of Representatives – Representative Nydia M Velázquez (D-NY)

    Washington, D.C. – Today, Congresswoman Nydia Velázquez (D-NY) led five colleagues in a letter urging the House Appropriations Committee requesting an end to federal funding for the Department of Homeland Security’s (DHS) use of private prison facilities. The lawmakers also called for a ban on transferring phased-out Department of Justice prison contracts to ICE for immigration enforcement.  
     

    “During the first Trump administration, privately-operated ICE facilities were used extensively and grew despite substandard conditions and problematic contracting practices documented by Congress, government oversight bodies, NGO’s and the media,” wrote the lawmakers. “More must be done to ensure that those without a voice, namely undocumented immigrants, are not subjected to dehumanizing or perilous conditions.” 

    During President Trump’s second term, the administration has expanded the immigration detention system through billion-dollar contracts with private prison companies such as GEO Group and CoreCivic. These efforts include the possible reopening of closed or phased-out facilities across at least eight states, many with documented records of abuse and neglect.

    The lawmakers raised concerns about the absence of accountability in private detention centers. Unlike government-run prisons, these facilities often operate with little or no independent oversight.

    “We know that private facilities have had staff falsify records, failed to adequately supervise detainees and provided improper medical care,” wrote the lawmakers. “Moreover, unlike state-run prisons or local jails that are subject to established oversight mechanisms, privately operated ICE detention centers operate largely without state inspections or regulatory oversight.” 

    The letter calls for specific bill language in the Fiscal Year 2026 appropriations package to prohibit DHS from using or entering private detention contracts for immigration purposes.

    The letter was signed by Rep. Holmes Norton (D-DC), Rep. Smith (D-WA), Rep. Beyer Jr. (D-VA), Rep. Carson (D-IN), and Rep. Rivas (D-CA). 

    The letter can be found here. 
     

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    MIL OSI USA News –

  • MIL-OSI USA: Scanlon, Judiciary Democrats Open Investigation into Trump’s Qatari Plane Deal

    Source: United States House of Representatives – Congresswoman Mary Gay Scanlon(PA-5)

    Washington, D.C.— Congresswoman Mary Gay Scanlon (PA-05), Ranking Member of the Subcommittee on the Constitution, today joined Reps. Jamie Raskin, Ranking Member of the House Judiciary Committee and Pramila Jayapal (WA-07), Ranking Member of the Subcommittee on Immigration Integrity, Security, and Enforcement, in leading Judiciary Committee Democrats to demand that the Department of Justice (DOJ) and White House Counsel’s Office provide legal memoranda that reportedly blessed Donald Trump’s efforts to flout the clear text of the Constitution’s Foreign Emoluments Clause in order to justify his accepting a luxury private jet from the State of Qatar without seeking the consent of Congress.

    “President Trump is reportedly relying on memos that you authored, at his request, to accept a $400 million airplane from the State of Qatar—described in media reports as a ‘flying palace’ and ‘the most luxurious private jet in the world’—without obtaining, or even seeking, Congress’s consent. Any legal memo purporting to make such a claim would obviously fly in the face of the text of the Constitution’s Foreign Emoluments Clause, which explicitly prohibits the President from accepting any ‘present [or] Emolument . . . of any kind whatever, from any King, Prince, or foreign State’ unless he has ‘the Consent of Congress.’ Accordingly, we are writing to request that you provide the Committee on the Judiciary with these memos immediately as their analysis and conclusions are apparently the basis for the President’s decision to disregard the plain text of the Constitution,” wrote the members.

    On May 11, an ABC News report revealed President Trump’s plans to accept a $400 million private jet from the Qatari Royal Family to use as Air Force One—a lavish and unconstitutional gift which he intends to transfer to his personal presidential library foundation at the conclusion of his term.

    Reports indicate that the DOJ and White House Counsel’s Office are aiding Trump’s efforts to paper over this clear Constitutional violation and reportedly drafted an analysis for Defense Secretary Pete Hegseth arguing that it is legal for the Department of Defense to accept the aircraft as a gift and later turn it over to Trump’s presidential library.

    The Constitution is clear that Congress—not the Attorney General or the White House Counsel—has the exclusive authority to approve or reject a gift “of any kind whatever” given to the President by a foreign government.

    Attorney General Pam Bondi’s involvement in this matter is particularly egregious given her clear conflict of interest. Bondi was previously a registered foreign agent of the Qatari government, earning $115,000 per month to lobby on its behalf.

    Trump’s acceptance of this unprecedented and unconstitutional gift has sparked bipartisan criticism and outrage, with even Republican Members of Congress and conservative media raising concerns about national security risks and the appearance of corruption. Additionally, this allegedly “free plane” likely will cost taxpayers billions of dollars to overhaul to meet “all the survivability, security and communications requirements of Air Force One.”

    Judiciary Democrats requested that Attorney General Bondi and White House Counsel David Warrington provide all documents and communications related to or purporting to justify or provide legal analysis regarding the constitutionality of the President’s acceptance of the Qatari plane; all documents and communications related to an agreement between the State of Qatar and the United States regarding the transfer of the plane; and all documents related to whether Attorney General Bondi should recuse herself in matters related to emoluments from Qatar.

    The letter comes after Judiciary Democrats filed a Resolution demanding Trump comply with the Constitutional rules on foreign gifts by seeking the consent of Congress before accepting the Qatari plane.

    Find the full letter here.

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    MIL OSI USA News –

  • MIL-OSI USA: As President Trump Fires Immigration Judges, Congresswoman Lizzie Fletcher Leads Effort To Address Immigration Court Backlog

    Source: United States House of Representatives – Congresswoman Lizzie Fletcher (TX-07)

    Today, Congresswoman Lizzie Fletcher (TX-07) spearheaded a letter joined by 72 of her House colleagues, to the House Commerce, Justice, Science, and Related Agencies Appropriations Subcommittee requesting that Congress allocate funding for the U.S. Department of Justice’s Executive Office for Immigration Review (EOIR).  The Trump Administration’s sweeping changes to our immigration system, termination of immigration judges, and mass deportation agenda threaten the integrity, operational efficiency, and fairness of our immigration courts. It is critical that EOIR has the resources to hire additional qualified immigration judges and provide them with sufficient case processing capacity—both to address the current backlog of more than 3.6 million pending immigration court cases and to ensure due process in an impartial and timely manner.

    “Currently, our immigration courts face a staggering backlog of more than 3.6 million active pending cases, which EOIR has cited as the largest single issue facing the immigration courts today,” the members wrote.  “This growing backlog impedes our immigration system, creating significant barriers for people legally seeking asylum, migrants, pregnant women, and people with disabilities that seek to remain in the United States.  These complex cases can take up to seven years before receiving a hearing, leaving migrants, families, and communities in legal limbo as they await hearings and decisions.  At a time when President Trump is making sweeping changes to our immigration system that threaten the integrity, operational efficiency, and fairness of our immigration courts, adequately funding EOIR is essential to a well-functioning and fair immigration system. 

    “It is crucial that Congress continues to support and invest in EOIR to ensure a well-functioning immigration system to adjudicate our immigration laws consistent with our values and address the growing backlog of pending cases,” the members continued.  “We strongly urge you to allocate the highest possible funding and include report language for EOIR funding to go towards the hiring of additional highly qualified judges, the hiring of additional judge teams, the modernization of case management system, the building and expansion of immigration courtroom spaces, and funding of the Legal Orientation Program.” 

    In 2022, 2023, and 2024, Congresswoman Fletcher led similar letters requesting congressional funding to address the immigration courts’ backlog by hiring more highly qualified immigration judges. 

    To read the full text of this year’s letter, click here.  

    MIL OSI USA News –

  • MIL-OSI Security: Eight defendants charged with narcotics offenses

    Source: Office of United States Attorneys

    ROCHESTER, N.Y. – U.S. Attorney Michael DiGiacomo announced today that eight defendants were charged by indictment or criminal complaint for their roles in a narcotics conspiracy operating in the Rochester, NY, area, and other related offenses.

    Named in two separate indictments and charged with narcotics conspiracy are:

    •      Carlos Serrano, Jr.

    •       Sam Sierra, Jr.

    •       Carlos Melendez, Jr.

    •       Eban Sterina

    If convicted, the indicted defendants face a mandatory minimum penalty of 10 years in prison, a maximum of life, and a fine of $10,000,000.

    In addition:

    • Juan Sosa is charged by criminal complaint with possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking, which carry a mandatory minimum penalty of 10 years in prison, and a maximum of life.
    • Jose Laviena and Giovanni Serrano are charged by criminal complaint with possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking, which carry a mandatory minimum penalty of five years in prison, and a maximum of life.
    • Dusty Phakousonh is charged by criminal complaint with possession with intent to distribute fentanyl, which carries a mandatory minimum penalty of five years in prison, and a maximum of 40 years.

    Assistant U.S. Attorney Nicholas T. Cooper, who is handling the case, stated that according to the indictments and complaints against the nine defendants, who are all from Rochester, investigators executed 20 search warrants on 14 residences and six vehicles, seizing: 

    • Approximately 2,678 grams of fentanyl
    • Approximately 692 grams of cocaine
    • Approximately 22 grams of crack cocaine
    • Approximately 31 pounds of marijuana
    • Approximately 168 grams of hash
    • Approximately 441 grams of K2 (synthetic cannabinoid)
    • Approximately 108 grams of suboxone
    • Six firearms
    • Drug paraphernalia
    • Approximately $100,000 in cash
    • Approximately $100,000 in jewelry

    This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    The indictments and complaints are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, the U.S. Marshals Service, under the direction of Marshal Charles Salina, Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan, the Rochester Police Department, under the direction of Chief David Smith. The Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the New York State Police, under the direction of Major Kevin Sucher, the Greece Police Department, under the direction of Chief Michael Wood, the Ontario County Sheriff’s Office, under the direction of Sheriff David Cirencione, and Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Acting Field Office Director Steven Kurzdorfer.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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  • MIL-OSI Security: Hammond Woman Sentenced to Two Years for Cares Act Fraud

    Source: Office of United States Attorneys

    NEW ORLEANS – Acting U.S. Attorney Michael M. Simpson announced that TRACIE L. MIXON (“MIXON”), age 43, of Hammond, LA, was sentenced on May 27, 2025 to two (2) years in prison by U.S. District Judge Susie Morgan, after previously pleading guilty to making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 

    On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic.  Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.  The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.

    According to court documents, MIXON made false statements on an SBA form to an approved lender on or about February 23, 2021, to fraudulently obtain a PPP loan. MIXON affirmed that she had not been previously convicted of federal program financial assistance fraud when, in truth, she pled guilty, in the Eastern District of Virginia, to conspiracy to commit federal student loan fraud and mail fraud in a scheme that involved stolen identities.

    Additionally, MIXON was ordered to pay $31,000 in restitution to the lending institution and the SBA and faces three (3) years of supervised release and payment of a $100 mandatory special assessment fee.

    For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    Acting U.S. Attorney Simpson praised the work of the United States Secret Service in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit was in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Mexico City-Based Attorney Pleads Guilty in $52 Million Dollar Sinaloa Cartel Money Laundering Scheme

    Source: Office of United States Attorneys

    SAN DIEGO – Hector Alejandro Paez Garcia, a Mexico City-based attorney, has pleaded guilty in federal court, admitting that he and others conspired to transport, transmit, and transfer tens of millions of dollars in drug trafficking proceeds from the United States to Mexico.

    Paez’s plea is part of a long-term FBI investigation targeting a Mexico-based money laundering organization (MLO) that is believed to have laundered at least $52.7 million for the Sinaloa Cartel before the organization’s leaders were arrested.

    According to court documents, the MLO utilized a network of shell companies in San Diego to launder tens of millions of dollars in bulk cash from across the country generated through the Sinaloa Cartel’s drug importation and distribution operations. MLO employees travelled to dozens of U.S. cities to pick up this bulk cash in amounts up to $200,000. The money was then funneled through the San Diego-based shell companies and delivered to money laundering accounts in Mexico controlled by Paez, who in his plea agreement admitted serving a managerial role in the MLO’s operations.

    During the investigation, FBI agents seized 66 money laundering bank accounts throughout the United States. As the FBI began to target and seize the MLO’s assets, Paez turned to the use of cryptocurrency in an attempt to shield those assets from law enforcement. But the FBI was able to infiltrate and take down the MLO’s cryptocurrency laundering network.

    To date, the investigation has resulted in the arrests of 11 people on money laundering charges and the seizure of more than $3.1 million in illicit assets. A related DEA investigation led to 24 additional arrests and asset seizures totaling $450,000.

    In March 2025, six individuals and seven entities, including several of Paez’s co-conspirators, were the target of sanctions imposed by the Department of Treasury’s Office of Foreign Assets Control (OFAC). Treasury Sanctions Criminal Operators and Money Launderers for the Notorious Sinaloa Cartel | U.S. Department of the Treasury.

    Paez is scheduled to be sentenced on August 15, 2025.

    To date, in addition to Paez, additional participants in the scheme have been charged, including the following:

    • Miguel Angel Encinas Gomez of Mexicali, México, leader of a Mexicali-based cell of MLO. Encinas pleaded guilty to laundering $35 million in bulk cash narcotics proceeds in July 2023.
    • Hugo Andres Velasquez Pantza, a Colombian national who allegedly assisted the MLO in the implementation of cryptocurrency into their operations. Velasquez was subsequently targeted in an undercover FBI operation and arrested in Rome, Italy in January 2025. Velasquez was extradited to the United States in April 2025 and awaits trial.
    • James Harmon Yarbrough of Apopka, Florida, who worked in partnership with Cevallos to receive $326,000 in illicit proceeds in a scheme to converting the funds to cryptocurrency. Yarbrough pleaded guilty in July 2023.
    • Victoria Johanna Lopez, Jose Jesus Lopez, Jose Mayorga Martinez, and Gerardo Vasquez Jr. who allegedly worked as bulk cash couriers who handled and deposited bulk cash for the MLO. Victoria Lopez, Jose Lopez, Mayorga have pleaded guilty. Vazquez’s case is set for trial in September 2024.
    • Jhonatan Suarez Florez of Auburndale, Florida, who used accounts associated with his Florida-based construction and door manufacturing businesses to receive and transmit funds belonging to the criminal organization. Suarez Florez pleaded guilty in December 2024.
    • Alberto David Benguait Jimenez, an alleged leader of the MLO, remains a fugitive at this time. If anyone has information related to this individual, please contact the FBI at 858-320-1800.

    This case is being prosecuted by Assistant U.S. Attorneys Paul Benjamin and Robert Miller. Former Assistant U.S. Attorney Owen Roth contributed significantly to the case. The FBI worked in close partnership with the Drug Enforcement Administration, Imperial County District Office, as well as Panamanian authorities, to seize the MLO’s assets and arrest multiple participants in the scheme.

    The Justice Department’s Office of International Affairs worked with law enforcement partners in Italy to secure the arrest and extradition of Velasquez Pantza.

    DEFENDANT                                               Case Number 23cr0446                                               

    Hector Alejandro Paez Garcia                        Age: 43                                   Mexico City, Mexico

    SUMMARY OF CHARGES

    International Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h), and 1956(a)(2)(B)(i)

    Maximum penalty: Twenty years in prison and $500,000 fine

    INVESTIGATING AGENCY

    Federal Bureau of Investigation

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

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. [use if applicable] Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

    MIL Security OSI –

  • MIL-OSI Security: New Orleans Man Sentenced to 5 Years of Probation for Cares Act Fraud, Money Laundering and False Tax Filing

    Source: Office of United States Attorneys

    NEW ORLEANS – Acting U.S. Attorney Michael M. Simpson announced that CLIFTON C. JAMES (“JAMES”), age 50, of New Orleans, was sentenced today by U.S. District Judge Jane Triche-Milazzo to 5 years of probation for making false statements, theft of government funds, and money laundering related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), as well as making a false tax filing with the Internal Revenue Service.

    On March 27, 2020, the President of the United States signed into law the CARES Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic.  The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.

    According to the charging documents, or about April 30, 2020, JAMES, on behalf of a business that he owned, made false statements to an approved lender to obtain a $86,800 PPP loan.  On or about July 13, 2020, JAMES stole $149,900 from the SBA by using a false application in the name of Crescent City Tax Services, LLC.  JAMES then committed money laundering by using these ill-gotten funds to buy an automobile from a dealership in California.  Lastly, JAMES  filed a false document with the Internal Revenue Service wherein he claimed to have earned $1.00 in a 2019 tax return.

    In addition to probation, JAMES was ordered to perform 50 hours of community service and to pay restitution in the amount of $551,973.00 to the SBA along with restitution to the IRS in the total amount of $233,645.65.  There is also a mandatory $400 special assessment fee.

    For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    This case was investigated by an agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force.  The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response.  The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.  The PRAC Fraud Task Force brings together agents from 15 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program.  Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.

    Acting U.S. Attorney Simpson praised the work of the U.S. Department of Veterans Affairs – Office of Inspector General (a member of the PRAC) and the Internal Revenue Service – Criminal Investigation in investigating this matter.  Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit was in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: District of Arizona Charges 257 Individuals for Immigration-Related Criminal Conduct this Week

    Source: Office of United States Attorneys

    PHOENIX, Ariz. – During the week of enforcement operations from May 24, 2025, through May 30, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 257 individuals. Specifically, the United States filed 125 cases in which aliens illegally re-entered the United States, and the United States also charged 124 aliens for illegally entering the United States.  In its ongoing effort to deter unlawful immigration, the United States filed 7 cases against 8 individuals responsible for smuggling illegal aliens into and within the District of Arizona.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Recent matters of interest include:

    United States v. Hugo Antonio Martinez-Lopez: On May 24, 2025, an Integrated Fixed Tower operator observed an individual come out of the brush and enter a truck, driven by Hugo Antonio Martinez-Lopez, on Federal Route 19 near mile marker 1 in Newfield, Arizona, on the Tohono O’odham Nation. BPAs located the truck and attempted a stop, but Martinez-Lopez failed to yield. While BPAs were pursuing the truck, Martinez-Lopez abruptly stopped on the right shoulder of the road and an individual exited the passenger’s side of the vehicle and ran into the brush. Martinez-Lopez then fled at a high rate of speed. After a foot chase, BPAs apprehended the individual who had run into the bush and determined that they were a citizen of Mexico, illegally present in the United States. Other BPAs continued to pursue Martinez-Lopez and successfully deployed a vehicle immobilization device (VID), which punctured one of the truck’s tires. The truck then came to a stop and Martinez-Lopez fled from the vehicle. BPAs also apprehended Martinez-Lopez after a short foot pursuit. Martinez-Lopez was charged by complaint with Transportation of an Illegal Alien. [Case Number: MJ-25-2029]

    United States v. Jesus Fernando Jimenez Rodriguez: On May 28, 2025, Mesa Police Department executed a search warrant on a residence in Mesa, Arizona. Jesus Fernando Jimenez Rodriguez, a citizen of Mexico, was one of the occupants of the residence. Inside the residence, readily visible in the living room and stacked against the wall, law enforcement found 10,000 rounds of PMC 5.56 ammunition and 25,000 rounds of Wolf .223 ammunition. Jimenez Rodriguez was charged by complaint with one count of Alien in Possession of Ammunition and Illegal Re-entry. [Case Number: MJ-25-9221]

    United States v. Nicholas Anthony Lawrence: On May 28, 2025, Nicholas Anthony Lawrence, a citizen of Jamaica and illegal alien, was charged by indictment with Aggravated Identity Theft, Fraud and Misuse of Visas, Permits, and Other Documents, Failure to Register as a Sex Offender, and Reentry of Removed Alien. Lawrence was previously convicted on or about December 4, 2017, of Attempt to Commit Molestation of Child, and Attempt to Commit Sexual Conduct with Minor, both felony offenses, in the Superior Court of Arizona, County of Maricopa. Lawrence was sentenced to seven years in prison, and lifetime probation, respectively. Lawrence was previously removed from the United States in November 2022. [Case Number: CR-25-00817-PHX-GMS]

    Criminal complaints and indictments are methods by which a person is charged with criminal activity and raise no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

    These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).                                                                                               

    RELEASE NUMBER:    2025-087_May 30 Immigration Enforcement

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    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 X @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Three Admit to Roles in Drug Trafficking Organization

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    MARTINSBURG, WEST VIRGINIA – Three people have admitted to working in a large-scale drug operation in Berkeley and Jefferson Counties.  

    Juan Carlos Suarez-Lugo, age 55, of Martinsburg, West Virginia, and Alexis Alvarado, age 38, of Ranson, West Virginia, each pled guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine. Mauricio Antonio Alvarado-Flores, age 38, a citizen of El Salvador, pled guilty to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and illegal reentry.

    According to court documents and statements made in court, Suarez-Lugo, Alvarado, and Alvarado-Flores were working together and with others to sell drugs for the drug trafficking organization.

    Suarez-Lugo, Alvarado, and Alvarado-Flores each face at least five years and up to 40 years in federal prison for the drug charge. Alvarado-Flores faces up to two years in prison for the illegal reentry charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government.

    The Eastern Panhandle Drug Task Force was the lead investigative unit. Other investigative agencies that assisted include the Federal Bureau of Investigation, including the Pittsburgh, San Francisco, San Juan, and Philadelphia Field Offices; United States Marshals Service; Homeland Security Investigations; United States Postal Service; Drug Enforcement Administration, the Louisville and Chicago Divisions; Bureau of Alcohol, Tobacco, Firearms, and Explosives; West Virginia State Police; Martinsburg Police Department; Ranson Police Department; Charles Town Police Department; Berkeley County Sheriff’s Office; Jefferson County Sheriff’s Office; West Virginia Air National Guard; Mineral County Sheriff’s Office; Grant County Sheriff’s Office; Hampshire County Sheriff’s Department; Keyser Police Department; Northwest Regional Drug Task Force, Virginia; Pennsylvania State Police; Franklin County Sheriff’s Office, Pennsylvania; Winchester Police Department, Virginia; Frederick County Sheriff’s Office, Virginia; Virginia State Police; Sunnyvale Police Department, California. 

    U.S. Magistrate Judge Robert W. Trumble presided.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

  • MIL-OSI USA: Father and son indicted for providing material support to Mexican cartel engaged in terrorism following ICE Rio Grande Valley, federal partner investigation

    Source: US Immigration and Customs Enforcement

    BROWNSVILLE, Texas – Two family members with ties to South Texas have been charged with allegedly conspiring to materially support a Mexican cartel previously designated as a foreign terrorist organization, conspiracy to commit money laundering and related smuggling charges, following an investigation conducted by U.S. Immigration and Customs Enforcement, the DEA and the FBI with substantial assistance of IRS CI along with Customs and Border Protection, U.S. Marshals Service and Texas Department of Public Safety.

    The superseding indictment, returned May 22, alleges Maxwell Sterling Jensen, 25, Draper, Utah, and James Lael Jensen, 68, Sandy, Utah, conspired to provide material support to the Cartel de Jalisco Nueva Generación in the form of U.S. currency. The Secretary of State designated CJNG as a foreign terrorist organization Feb. 20.

    “This case underscores the more aggressive and innovative approach we are taking towards combatting the scourge of drug cartels,” said U.S. Attorney Nicholas Ganjei from the Southern District of Texas. “This strategy focuses not just on the traffickers and trigger-pullers directly employed by the cartels but also targeting their confederates and enablers. Whether you are handing the cartel a gun, providing a car or safehouse for smugglers, or putting money in the cartel’s pocket, you will be held to account.”

    The Jensen’s allegedly operated Arroyo Terminals, an enterprise based in Rio Hondo, Texas.

    Both are also charged with allegedly conspiring to conduct financial transactions to conceal and disguise the nature and source of the proceeds of illegally smuggled goods, crude oil. They also aided and abetted the fraudulent entry of approximately 2,881 shipments of the oil in violation of the Tariff Act, according to the charges.

    “Cases like this highlight the often-dangerous relationships between alleged unscrupulous U.S. businesses and terrorist organizations,” said ICE Homeland Security Investigations San Antonio Special Agent in Charge Craig Larrabee. “Through strong collaborations and relentless investigative work, we and our partners exposed a possible large-scale operation that allegedly attempted to move millions in illicit crude oil and launder the proceeds. HSI remains committed to protecting our economy and holding offenders accountable.”

    “What began as a Drug Enforcement Administration drug trafficking investigation evolved into a multifaceted case involving an alleged complex criminal operation generating millions of dollars from crude oil – the largest funding source for Mexican drug cartels,” said acting Special Agent in Charge William Kimbell of DEA – Houston. “Given the charges have profound implications for both the United States and Mexico, we will continue to explore all leads and identify any believed to be involved. The collaboration with federal law enforcement, prosecutors, and state agencies proved critical to unraveling these alleged crimes and will continue until such operations are destroyed.”

    “It is a top priority of the FBI to eliminate foreign terrorist organizations by depriving them of the funding they need to operate and by seizing their most valued assets,” said FBI Special Agent in Charge Aaron Tapp of the San Antonio Field Office. “Together with our law enforcement partners, we will use every resource and capability at our disposal to ensure violent cartels and anyone who corruptly facilitates their operations are held accountable to the American people and unable to establish a foothold in our communities.”

    “Our commitment to taking down drug cartels and organized crime leverages IRS Criminal Investigation’s specialty in forensic accounting that identifies the alleged money trail and shuts down the flow of cash, just like we did in this case,” said acting Special Agent in Charge Lucy Tan, of IRS Criminal Investigation’s Houston Field Office. “Some of our best special agents are using their law enforcement expertise to build unshakeable cases to ensure criminals are taken off the streets and their ill-gotten gains are returned to the American people.”

    At the time of the initial arrests, authorities seized four tank barges containing crude oil, three commercial tanker trucks, an Arroyo Terminal pickup truck and one personal vehicle. The Arroyo Terminal property in Rio Hondo, crude oil contained Arroyo Terminal storage tanks and additional real properties are also sought for forfeiture. The superseding indictment also contains notice that the United States will seek a $300 million money judgment upon conviction.

    The conspiracies to provide material support and to commit money laundering both carry a possible prison term of up to 20 years. If convicted of aiding and abetting the smuggling of goods into the United States and doing so by means of false statements, both men could also face up to 10 and five years, respectively. James Jensen also faces one count of money laundering spending which carries an additional 10 years in prison, upon conviction.

    With the exception of the money laundering charge which has the possibility of up to a $500,000 fine or twice the value of the property involved, the remaining counts carry a maximum $250,000 potential fine.

    Operation Liquid Death involved the combined efforts of ICE HSI, DEA, FBI, and IRS CI and others and is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    Assistant U.S. Attorneys James Sturgis and Laura Garcia from the Southern District of Texas are prosecuting the case. AUSAs Mary Ellen Smyth and Tyler Foster are handling seizure and forfeiture matters.

    An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

    MIL OSI USA News –

  • MIL-OSI Security: OVW Fiscal Year 2025 Campus Program Pre-Application Information Session

    Source: United States Department of Justice Criminal Division

    OVW conducted a pre-application information session for its Fiscal Year 2025 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus program. During the presentation, OVW staff reviewed this NOFO’s requirements and discussed the program.

    MIL Security OSI –

  • MIL-OSI Security: Franklin County Couple Admit Recording Sexual Abuse of Toddler

    Source: Office of United States Attorneys

    ST. LOUIS – A couple from Franklin County, Missouri have admitted producing pictures and videos containing child sexual abuse material, including the sexual abuse of a one-year-old.

    William Burns, 41, pleaded guilty Friday in U.S. District Court in St. Louis to one count of conspiracy to produce child pornography, three counts of production of child pornography and one count of possession of child pornography. His wife, 34-year-old Rachel Burns, pleaded guilty on May 22 to the conspiracy count and two counts of production of child pornography.

    On July 30, 2023, William and Rachel Burns were arrested by the University City Police Department with two small children in their car. They were charged in St. Louis County Circuit Court with attempted enticement of a child. Rachel Burns told investigators that her husband had child sexual abuse material on multiple electronic devices, leading to a court-approved search by the Franklin County Sheriff’s Office. Deputies found electronic devices, as well as whips, numerous sexual devices and a 3-foot-7-inch tall silicone sex doll made to resemble a prepubescent female, their plea agreements say.

    Investigators found 13,954 image and video files depicting child sexual abuse material (CSAM) on a computer and digital storage devices. William Burns used a WhatsApp social media account to exchange CSAM with other WhatsApp users. Investigators then found a 2022 video showing the couple sexually abusing a one-year-old. They also found other videos and images from 2022 and 2023 showing that victim, the couple admitted in their plea agreements.

    Rachel Burns is scheduled to be sentenced on August 25. The U.S. Attorney’s office has agreed to recommend no more than 35 years in prison. William Burns is scheduled to be sentenced on September 3. The U.S. Attorney’s office has agreed to recommend between 35 and 40 years for him.

    The University City Police Department, the Franklin County Sheriff’s Office and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Michael Hayes is prosecuting the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals 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 www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Bergen County Man Sentenced to Twenty Months in Prison for COVID-19 Fraud

    Source: Office of United States Attorneys

    NEWARK N.J. – A New Jersey man was sentenced to 20 months in prison for fraudulently obtaining approximately $149,900 in federal Economic Injury Disaster Loans (“EIDL”) loans, U.S. Alina Habba announced.

    George Leguen, 51, of Paramus, New Jersey, previously plead guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with wire fraud and money laundering. Judge Arleo imposed the sentence in Newark federal court.

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

    From August 2020 through January 2021, Leguen participated in a scheme to defraud and receive COVID-19 emergency relief funds meant for distressed small businesses under the EIDL program. Leguen applied to the Small Business Administration (“SBA”) on behalf of a business he owned and controlled. He falsified information that he submitted in support of that application, including the number of employees, annual gross revenue figures, and fraudulent federal tax returns. Based on this false information, Leguen was approved for and received an EIDL loan in the amount of $149,900. After receiving the EIDL funds, he diverted the proceeds for his personal gain.

    In addition to the prison term, Judge Arleo sentenced Leguen to 3 years of supervised release, forfeiture was ordered in the amount of $149,900, and restitution in the amount of $174,426.37.

    U.S. Attorney Habba credited special agents of Internal Revenue Service – Criminal Investigation, Newark Field Office, under the direction of Special Agent in Charge Jenifer Piovesan; the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz of the New Jersey Field Division; special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley, Newark Field Office; and special agents of the U.S. Department of Labor – Office of the Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, Northeast Region, with the investigation.

    The District of New Jersey COVID-19 Fraud Enforcement Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

    The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

                                                                           ###

    Defense counsel: Jeffrey Lichtman, Esq. and Matthew Cohan, Esq. 

    MIL Security OSI –

  • MIL-OSI Security: Two Foreign Nationals Indicted for Plot to Silence U.S. Dissident and Smuggle U.S. Military Technology to China

    Source: United States Department of Justice Criminal Division

    Defendants Charged in Los Angeles and Milwaukee with Interstate Stalking, Arms Export Violations, and Smuggling

    Federal grand juries in Milwaukee and Los Angeles each returned indictments charging two foreign nationals, Cui Guanghai, 43, of China, and John Miller, 63, of the United Kingdom and a U.S. lawful permanent resident, with interstate stalking and conspiracy to commit interstate stalking (Los Angeles) and conspiracy, smuggling, and violations of the Arms Export Control Act (Milwaukee).

    “As alleged, the defendants targeted a U.S. resident for exercising his constitutional right to free speech and conspired to traffic sensitive American military technology to the Chinese regime,” said Deputy Attorney General Todd Blanche. “This is a blatant assault on both our national security and our democratic values. This Justice Department will not tolerate foreign repression on U.S. soil, nor will we allow hostile nations to infiltrate or exploit our defense systems. We will act decisively to expose and dismantle these threats wherever they emerge.”

    “The defendants allegedly plotted to harass and interfere with an individual who criticized the actions of the People’s Republic of China while exercising their constitutionally protected free speech rights within the United States of America,” said FBI Deputy Director Dan Bongino. “The same individuals also are charged with trying to obtain and export sensitive U.S. military technology to China. I want to commend the good work of the FBI and our partners in the U.S and overseas in putting a stop to these illegal activities.”

    Allegations in the Central District of California

    According to court documents, beginning in October 2023, Cui and Miller enlisted two individuals (Individual 1 and Individual 2) inside the United States to carry out a plot to prevent the Victim from protesting President Xi’s appearance at the Asia Pacific Economic Cooperation (APEC) summit in November 2023. The victim had previously made public statements in opposition to the policies and actions of the PRC government and President Xi.

    “The indictment alleges that Chinese foreign actors targeted a victim in our nation because he criticized the Chinese government and its president,” said U.S. Attorney Bill Essayli for the Central District of California. “My office will continue to use all legal methods available to hold accountable foreign nationals engaging in criminal activity on our soil.”

    Unbeknownst to Cui and Miller, Individual 1 and Individual 2 were affiliated with and acting at the direction of the FBI.

    In the weeks leading up to the APEC summit, Cui and Miller directed and coordinated an interstate scheme to surveil the victim, to install a tracking device on the victim’s car, to slash the tires on the victim’s car, and to purchase and destroy a pair of artistic statues created by the victim depicting President Xi and President Xi’s wife.

    A similar scheme took place in the spring of 2025, after the victim announced that he planned to make public an online video feed depicting two new artistic statues of President Xi and his wife. In connection with these plots, Cui and Miller paid two other individuals (Individual 3 and Individual 4), approximately $36,500 to convince the victim to desist from the online display of the statues. Unbeknownst to Cui and Miller, Individual 3 and Individual 4 were also affiliated with and acting at the direction of the FBI.

    Allegations in the Eastern District of Wisconsin

    According to court documents, beginning in November 2023, Miller and Cui solicited the procurement of U.S. defense articles, including missiles, air defense radar, drones, and cryptographic devices with associated crypto ignition keys for unlawful export from the United States to the People’s Republic of China from two individuals (Individual 5 and Individual 6).  

    In connection with the scheme, Cui and Miller discussed with Individuals 5 and 6 ways to export a cryptographic device from the United States to the People’s Republic of China, including concealing the device in a blender, small electronics, or motor starter, and shipping the device first to Hong Kong. Cui and Miller paid approximately $10,000 as a deposit for the cryptographic device via a courier in the United States and a wire transfer to a U.S. bank account.

    ***

    If convicted, Cui and Miller face the following maximum penalties: five years in prison for conspiracy; five years in prison for interstate stalking; 20 years in prison for violation of the Arms Export Control Act; and 10 years in prison for smuggling.

    The FBI is investigating the case. The United States is coordinating with Serbian authorities regarding the pending extraditions of Cui and Miller from Serbia.

    Assistant U.S. Attorneys David Ryan and Amanda B. Elbogen for the Central District of California, Benjamin Taibleson for the Eastern District of Wisconsin, and Trial Attorneys Leslie Esbrook and Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases, with valuable assistance provided by the Justice Department’s Office of International Affairs.

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

    MIL Security OSI –

  • MIL-OSI Security: Three Defendants Sentenced and Another Pleads Guilty for Roles in Transnational Drug Trafficking Operation

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – Three individuals from Pennsylvania, Washington, and Arizona were sentenced, and another individual from Ohio pleaded guilty, in federal court on May 28, 2025, to charges of violating federal narcotics and money laundering laws in relation to a transnational drug trafficking organization (DTO), Acting United States Attorney Troy Rivetti announced today. The defendants were among 35 individuals charged through a Second Superseding Indictment unsealed in January 2024 for their participation in a domestic and international narcotics and money laundering conspiracy involving substantial quantities of fentanyl, methamphetamine, and cocaine.

    The sentences imposed by United States District Judge J. Nicholas Ranjan were:

    Defendant

    		 Age

    Residence

    Sentence
    James Pinkston 34 New Kensington, Pennsylvania 220 months in prison, to be followed by five years of supervised release
    Alicia Parks 26 Kent, Washington 84 months in prison, to be followed by four years of supervised release
    Marco Armenta 24 Phoenix, Arizona 12 months and one day in prison, to be followed by two years of supervised release

    According to information presented to the Court, on various dates from in and around August 2021 to in and around June 2023, in the Western District of Pennsylvania, Pinkston and Parks conspired to possess with intent to distribute and distribute 400 grams or more of fentanyl and 500 grams or more of cocaine. Similarly, from in and around August 2022 to January 2023, Armenta conspired to possess with intent to distribute and distribute 40 grams or more of a mixture of fentanyl. The defendants were intercepted on a federal wiretap obtaining quantities of the drugs that they distributed to others. Additionally, the Court was advised that, in and around March 2023, Pinkston possessed with intent to distribute 500 grams or more of a mixture of cocaine, and, from in and around April 2022 to March 2023, conspired to commit money laundering by using a payments app to receive and initiate payments for drug transactions.

    The Second Superseding Indictment alleges that the operation imported from Mexico millions of fentanyl pills, kilograms of fentanyl powder, hundreds of pounds of methamphetamine, and dozens of kilograms of cocaine that then were distributed and sold throughout the United States. Pinkston served as the western Pennsylvania connection to the Phoenix DTO responsible for importing the drugs from Mexico.

    In addition to the sentencings, another defendant in the case—Diamond Williams-Dorsey, 32, of Cleveland, Ohio—pleaded guilty before Judge Ranjan to Count One of the Second Superseding Indictment. In connection with the guilty plea, the Court was advised that, from in and around July 2022 to August 2022, Williams-Dorsey conspired to possess with intent to distribute and distribute 400 grams or more of a mixture of fentanyl. Judge Ranjan scheduled sentencing for November 4, 2025. The law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

    With this week’s three sentencings and guilty plea, 20 of the 35 defendants charged in the Second Superseding Indictment have now pleaded guilty in the case, with nine having been sentenced thus far.

    Assistant United States Attorneys Arnold P. Bernard Jr. and Tonya S. Goodman prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of the defendants. Additional agencies participating in this investigation include the Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, and other local law enforcement agencies.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to achieve the total elimination of cartels and transnational criminal organizations, combat illegal immigration, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI –

  • MIL-OSI USA: Hawley Urges DOJ to Investigate Chinese Automotive Company for National Security Breaches, Export Violations

    US Senate News:

    Source: United States Senator Josh Hawley (R-Mo)
    Today, U.S. Senator Josh Hawley (R-Mo.) sent a letter to Attorney General Pam Bondi, urging the Department of Justice (DOJ) to investigate TuSimple Holdings – a Chinese autonomous trucking company – for potential violations of U.S. export controls, unauthorized transfers of sensitive technology to the People’s Republic of China, and any associated breaches of national security.
    In the letter, Senator Hawley wrote, “According to recent investigative reports, TuSimple systematically shared proprietary data, source code, and autonomous driving technologies with Chinese state-linked entities, in blatant disregard of a 2022 national security agreement with the Committee on Foreign Investment in the United States (CFIUS). These reports also revealed communications from TuSimple personnel inside China requesting the shipment of sensitive Nvidia AI chips and detailed records showing ‘deep and longstanding ties’ with Chinese military-affiliated manufacturers. To date, TuSimple has not faced serious consequences for sharing American intellectual property with China.”
    He continued, “If the reports about TuSimple are accurate, they represent not just a violation of export law, but a breach of national trust and a direct threat to American technological leadership.  The American people deserve to know how and why a supposedly U.S.-based company was allowed to serve as a conduit for the transfer of sensitive innovations to the Chinese Communist Party.”
    Senator Hawley concluded, “I urge the Department to act swiftly and without hesitation. Any individual or entity found to have violated our laws must be held fully accountable.”
    Read the full letter here or below. 
    May 28, 2025
    The Honorable Pam BondiAttorney GeneralU.S. Department of Justice950 Pennsylvania Avenue, NWWashington, DC 20530
    Dear Attorney General Bondi,
    I write to urge the Department of Justice to open a formal investigation into TuSimple Holdings Inc., a Chinese autonomous trucking company, for potential violations of U.S. export controls, unauthorized transfers of sensitive technology to the People’s Republic of China, and any associated breaches of national security.
    According to recent investigative reports, TuSimple systematically shared proprietary data, source code, and autonomous driving technologies with Chinese state-linked entities, in blatant disregard of a 2022 national security agreement with the Committee on Foreign Investment in the United States (CFIUS)[1]  These reports also revealed communications from TuSimple personnel inside China requesting the shipment of sensitive Nvidia AI chips and detailed records showing “deep and longstanding ties” with Chinese military-affiliated manufacturers. To date, TuSimple has not faced serious consequences for sharing American intellectual property with China.
    If the reports about TuSimple are accurate, they represent not just a violation of export law, but a breach of national trust and a direct threat to American technological leadership.  The American people deserve to know how and why a supposedly U.S.-based company was allowed to serve as a conduit for the transfer of sensitive innovations to the Chinese Communist Party.  I urge the Department to act swiftly and without hesitation. Any individual or entity found to have violated our laws must be held fully accountable.
    As you conduct your investigation, please consider the following questions:
    1. Did TuSimple provide protected information to Hydron, Foton, BAIC Group, or any other affiliated Chinese entity?2. What steps has the Department of Justice taken to ensure that Bot Auto—a new, Texas-based self-driving truck company staffed with former TuSimple employees and backed by Chinese capital—does not engage in similar behavior?3. What activities were covered by TuSimple’s national security agreement with CFIUS?4. What were the infractions of this agreement for which TuSimple paid a $6 million settlement?5. Are “national security agreements” an adequate mechanism for controlling high-risk companies with known ties to the Chinese Communist Party?
    Thank you for your attention to this matter.
    Sincerely,Josh HawleyU.S. Senator

    MIL OSI USA News –

  • MIL-OSI Security: 413 New Immigration Cases This Week in the Western District of Texas

    Source: Office of United States Attorneys

    SAN ANTONIO – Acting United States Attorney Margaret Leachman for the Western District of Texas announced today, that federal prosecutors in the district filed 413 new immigration and immigration-related criminal cases from May 23 through May 29.

    Among the new cases, Salvadoran national Jaqueline Del Carmen Aleman-Aguilar was charged with one count of illegal re-entry in San Antonio. According to a criminal complaint, Aleman-Aguilar was convicted for transportation of aliens in June 2015 and sentenced to six months in federal prison. She was then removed from the United States to Mexico in July 2015.

    Christian Ruben Corea-Benavides, a Nicaraguan national, was charged in El Paso with attempting to transport illegal aliens. U.S. Border Patrol agents allegedly observed Corea-Benavides pick up five illegal aliens just over four miles west of the Fort Hancock Port of Entry. A criminal complaint alleges that during a traffic stop, the investigating USBP agent observed a female passenger in the front seat of the vehicle, and four additional passengers lying on top of one another in the backseat—all appearing to be wet and muddy.

    Mexican national Sabino Renteria-Alvarado was arrested May 28 at the Paso Del Norte Port of Entry after he attempted to enter through the pedestrian entrance and allegedly presented the Customs and Border Protection officer (CBPO) with a false claim that he had been a Legal Permanent Resident, but that police in Nevada possessed his LPR card. The CBPO referred Renteria-Alvarado to Passport Control Secondary, where records revealed he had been previously removed in January 2024 through Nogales, Arizona. His criminal record includes a 15-year prison sentence for a sexual assault of a minor conviction in 2017. Renteria-Alvarado is currently charged with one count of illegal re-entry.

    Two U.S. citizens were arrested in the Del Rio area as the result of separate human smuggling attempts, as alleged in criminal complaints. Nancy Anna Gwyn, of Houston, was encountered during a May 22 traffic stop near Carrizo Springs. USBP agents allegedly uncovered three passengers in her vehicle who were identified to be citizens of foreign countries and illegally present in the U.S. On May 24, an immigration checkpoint inspection near Eagle Pass allegedly revealed that Anastasia Lee Daneill Godfrey, of Oklahoma City, Oklahoma, was attempting to transport two illegal aliens to San Antonio in the trunk of a sedan.

    Honduran national Walter Alonso Martinez-Chandias is charged with illegal re-entry. He has one prior removal—in June 2013 through Alexandria, Louisiana—and a lengthy criminal record that includes convictions in Birmingham, Alabama for drug trafficking and homicide, for which he was sentenced in 2018 to five years and 20 years in prison, respectively. In 2017, he was convicted in Birmingham for unlawful transport of firearms and sentenced to 81 months in prison. A criminal complain alleges that when he was arrested on May 25, Martinez-Chandias refused to comply with Border Patrol agents’ commands and resisted attempts to be placed in custody and handcuffs by running and kicking.

    Luis Alberto Olivarez-Hernandez, of Mexico, was arrested May 27 near Eagle Pass for illegal re-entry. He has two prior removals, the last one being Feb. 25 through Laredo, five days after a felony conviction for unlawfully carrying a weapon in prohibited places. Additionally, Olivarez-Hernandez was convicted in 2010 for aggravated assault with a deadly weapon.

    Armando Vazquez-Ruiz, also a Mexican national, is charged with illegal re-entry after being found near Eagle Pass less than two weeks after his most recent removal. Vazquez-Ruiz had been convicted in Georgetown May 7 for assault causing bodily injury and was deported May 8 through Laredo.

    In Austin, Mexican national Basilio Luna-Luna was encountered by Immigration and Customs Enforcement at the Travis County Jail May 24, where he was detained for what would be his seventh DWI, if convicted. Luna-Luna was previously removed from the U.S. in November 2014 and voluntarily returned to Mexico twice—once in 1998 and once in 2009.

    Juan Alberto Zarate-Salgado, also of Mexico, was encountered at the Travis County Jail as well and is charged with illegal re-entry. Zarate-Salgado has two prior removals and multiple convictions for assault of a family/household member and assault causing bodily injury to a family member.

    These cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional assistance from state and local law enforcement partners.

    The U.S. Attorney’s Office for the Western District of Texas comprises 68 counties located in the central and western areas of Texas, encompasses nearly 93,000 square miles and an estimated population of 7.6 million people. The district includes three of the five largest cities in Texas—San Antonio, Austin and El Paso—and shares 660 miles of common border with the Republic of Mexico.

    These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Three Charged with Fentanyl Trafficking

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    KANSAS CITY, Mo. – Three Kansas City, Mo. individuals have been charged for their role in a conspiracy to distribute fentanyl.

    Kajuan M. Jackson, 40, Christopher D. Baird, 40, and Skyler B. Sledd, 26, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Wed., May 28.  The complaint was unsealed and made public following their arrests and initial court appearance.

    The complaint alleges that Jackson, Baird, and Sledd sold tablets labeled “M30”, which contain fentanyl, to an undercover investigator between June 1, 2024, and May 22, 2025.

    Sledd is currently on state felony supervision through Missouri Probation and Parole for possession of a controlled substance.

    Jackson faces additional charges for possessing firearms and machineguns in furtherance of a drug trafficking crime and being a felon in possession of firearms.

    Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.  Jackson has prior felony convictions for identity theft; possession of an opiate, narcotic, or certain stimulant; criminal possession of a weapon by a felon; two counts of possession of a controlled substance; and tampering with a motor vehicle.

    The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    Under federal statutes, conspiracy to distribute fentanyl carries a mandatory minimum sentence of five years and up to 40 years’ imprisonment in federal prison without parole.

    Possession of machineguns in furtherance of a drug trafficking crime carries a mandatory minimum sentence of 30 years in federal prison without parole.

    The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

    This case is being prosecuted by Assistant U.S. Attorney Megan A. Baker and Special Assistant U.S. Attorney Jessica L. Jennings. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Missouri Western Interdiction Drug Task Force, and the United States Postal Service.

    KC Metro Strike Force

    This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces 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 against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    MIL Security OSI –