Source: People’s Republic of China – State Council News
Nearly 100 institutions across China have issued sci-tech innovation bonds worth over 250 billion yuan (US$34.72 billion) since the country launched a “sci-tech board” in the bond market in early May, according to a press conference Thursday. The new board is part of the country’s efforts to provide financial support for sci-tech development.
Source: US FBI
TUCSON, Ariz. – On February 28, 2024, a federal grand jury returned a five-count indictment against Armani R. Purandah, 24, Rashawn L. Gray, 27, Tyshaun D. Ripley, 25, Awilda Reyes, 51, Richard M. Bah, 20, of Bronx, NY, and Harley D. Stuscavage, 41, of Phoenix. The defendants were each charged with one count of Conspiracy to Commit Bank Fraud and four counts of Aggravated Identity Theft.
The indictment alleges that the co-conspirators engaged in a scheme to defraud individuals and banks across the United States including in Arizona, Colorado, and California. The co-conspirators unlawfully used victims’ personal identifying information and fraudulent identifications to open fake business accounts linked to the victims’ legitimate bank accounts. They transferred the victims’ funds from the victims’ legitimate bank accounts to the fraudulent business bank accounts. Once the victims’ funds were transferred to the business accounts, the co-conspirators withdrew the funds in cash at financial institutions and tribal casinos. The co-conspirators also made other unauthorized transactions from the accounts.
Conspiracy to Commit Bank Fraud carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Aggravated Identity Theft carries a two-year mandatory minimum prison sentence.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Federal Bureau of Investigation conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-24-00927-JCH-MSA
RELEASE NUMBER: 2024-027_Purandah, et al.
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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.
2024-027_Purandah, et al.
Source: US FBI
“Radar/Dispossessor” servers and domains successfully dismantled
On August 12, FBI Cleveland announced the disruption of “Radar/Dispossessor”—the criminal ransomware group led by the online moniker “Brain”—and the dismantling of three U.S. servers, three United Kingdom servers, 18 German servers, eight U.S.-based criminal domains, and one German-based criminal domain.
Since its inception in August 2023, Radar/Dispossessor has quickly developed into an internationally impactful ransomware group, targeting and attacking small-to-mid-sized businesses and organizations from the production, development, education, healthcare, financial services, and transportation sectors. Originally focused on entities in the United States, the investigation discovered 43 companies as victims of the attacks, from countries including Argentina, Australia, Belgium, Brazil, Honduras, India, Canada, Croatia, Peru, Poland, the United Kingdom, the United Arab Emirates, and Germany. During its investigation, the FBI identified a multitude of websites associated with Brain and his team.
Ransomware is a type of malicious software, or malware, that encrypts data on a computer making it unusable. A malicious cybercriminal holds the data hostage until the ransom is paid. If the ransom is not paid, the victim’s data remains unavailable. Cybercriminals may also pressure victims to pay the ransom by threatening to destroy the victim’s data or to release it to the public.
Radar Ransomware follows the same dual-extortion model as other ransomware variants by exfiltrating victim data to hold for ransom in addition to encrypting victim’s systems. Simply, the ransomware identifies and attacks new victims and, re-victimizes current victims.
Radar/Dispossessor identified vulnerable computer systems, weak passwords, and a lack of two-factor authentication to isolate and attack victim-companies. Once the criminals gained access to the systems, they obtained administrator rights and easily gained access to the files. The actual ransomware was then used for encryption. As a result, the companies could no longer access their own data. Once the company was attacked, if they did not contact the criminal actor, the group would then proactively contact others in the victim company, either through email or phone call. The emails also included links to video platforms on which the previously stolen files had been presented. This was always with the aim of increasing the blackmail pressure and increasing the willingness to pay.
Finally, the compromise was announced by the attackers on a separate leak page and a countdown set until public release of the victim data if no ransom was paid.
As ransomware can have many variants, such as this case, the total number of businesses and organizations affected is yet to be determined. The FBI encourages those with information about Brain or Radar Ransomware—or if their business or organization has been a target or victim of ransomware or currently paying a criminal actor—to contact its Internet Crime Complaint Center at ic3.gov or 1-800-CALL-FBI. Your identity can remain anonymous.
The investigation and joint takedown were conducted in conjunction with the the U.K.’s National Crime Agency, Bamberg Public Prosecutor’s Office, Bavarian State Criminal Police Office (BLKA), and U.S. Attorney’s Office for the Northern District of Ohio.
Source: US FBI
LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.
In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.
Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.
Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
Twitter:
Source: US FBI
Hot Springs, Arkansas – David Clay Fowlkes, United States Attorney for the Western District of Arkansas, announced that on May 26, 2022, James Heritage, 39 of Hot Springs, Arkansas, was sentenced to 27 months in prison and ordered to pay $469,082.73 in restitution after pleading guilty to two counts relating to fraud committed against the United States Small Business Administration’s Paycheck Protection Program (PPP) and numerous state unemployment benefits administrators.
According to plea documents in the case, Heritage applied for and received a PPP loan for $183,937.32, using falsified employee and payroll data. In addition, Heritage applied for and received Pandemic Unemployment Assistance, a supplemental form of unemployment benefits, from thirty different states, by falsely representing to those states’ benefits administrators that he was eligible for the benefits.
Both the Paycheck Protection Program and Pandemic Unemployment Assistance program are parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law passed in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.
The case was investigated by the Department of Labor Office of the Investigator General, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.
On May 17, 2021, the Attorney General 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. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’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.
Source: US FBI
PORTLAND, OR—The FBI Portland Division has seen an increase in reports of scammers falsely representing themselves as FBI agents, or a representative of another government agency, and sending couriers to pick up cash or gold payments.
Be advised, federal agencies do not call or e-mail individuals threatening arrest or demanding money. Scammers often spoof caller ID information, and these phone calls are fraudulent even if they appear to be coming from an agency’s legitimate phone number. Recipients should hang up immediately and report the call.
There are many versions of the government impersonation scam, and they all exploit intimidation tactics. Typically, scammers will use an urgent and aggressive tone, refusing to speak to or leave a message with anyone other than their targeted victim; and will urge victims not to tell anyone else, including family, friends, or financial institutions, about what is occurring.
Payment is demanded in various forms, in this new version of the scam, victims are asked to withdraw money as either cash or gold and give that to a courier who arrives at their home. Other tactics include prepaid cards, wire transfers, and cash, sent by mail or inserted into cryptocurrency ATMs. Victims are asked to read prepaid card numbers over the phone or text a picture of the card.
According to the Internet Crime Complaint Center (IC3), 14,190 people reported being victims of government impersonation scams in 2023, with losses totaling more than $394 million dollars. Here in the Portland Division, which includes all of Oregon, financial losses exceeded $1.7 million dollars in 2023.
The scammers typically target older adults. In 2023, almost half the complainants reported to be over 60 (40%), and experienced 58% of the losses (almost $770 million) nationally. Complainants over the age of 60 lost more to these scams than all other age groups combined, and reportedly remortgaged/foreclosed homes, emptied retirement accounts, and borrowed from family and friends to cover losses in these scams. Some incidents have resulted in suicide because of shame or loss of sustainable income.
The FBI will never:
Scams impersonating the FBI and other government agencies are a persistent problem and can also occur via e-mail. Common hallmarks of a scam e-mail include misspellings, missing words, and incorrect grammar. Fraudulent e-mails may give the appearance of legitimacy by using pictures of the FBI Director and/or the FBI seal and letterhead.
Members of the public seeking to confirm that they have been contacted by an actual FBI employee are encouraged to call the FBI Portland Division at 503-224-4181 and ask to be connected directly.
If you think you are a victim of this, or any other online scam please file a report with your local law enforcement agency and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
More information about government impersonation schemes and other online fraud schemes can be found at https://www.fbi.gov/scams-and-safety/common-fraud-schemes.
Source: GlobeNewswire (MIL-OSI)
Frankfurt, 23 May 2025 – Swedish regulated crypto asset manager Virtune brings its flagship Virtune XRP ETP to Germany’s premier trading venue Deutsche Börse Xetra, extending its regulated digital asset offerings to Europe’s largest economy.
With strong traction and consistent inflows across the Nordic region – driven by growing interest and adoption of crypto – expanding into Germany through the listing on Xetra marks a strategic milestone for Virtune. Since its inception in May 2023, Virtune has experienced rapid growth in the Nordics, listing 16 products and attracting over 140,000 investors in just two years.
The key success factors have been Virtune’s educational focus, transparent market approach, and regulated status. This expansion not only responds to growing investor interest but also strengthens Virtune’s presence across the European market.
Virtune XRP ETP is a 100% physically backed investment product, providing investors with secure, regulated, and easy exposure to XRP, one of the globally leading crypto assets. Virtune XRP ETP was initially listed on Nasdaq Stockholm in Sweden in July 2024 and has since attracted over 50,000 investors and more than USD 125 million in assets under management, making it the most popular ETP in Virtune’s product suite. Coinbase serves as the product’s crypto custodian, providing institutional-grade security with the underlying XRP held in cold storage.
Virtune has actively listed ETPs on Nasdaq Stockholm, Nasdaq Helsinki, and other regulated European markets. Its goal is to provide seamless access to crypto assets through regulated ETPs, with a strong focus on transparency, education, and investor protection – ultimately driving crypto adoption among both retail and institutional investors.
Christopher Kock, CEO of Virtune:
“We are proud to launch our XRP ETP on Xetra and expand our footprint in Germany. XRP has long been one of the most actively traded and recognized digital assets globally, and our physically backed ETP provides a robust and secure way to gain exposure to it. This listing underscores our commitment to broadening access to crypto assets across Europe.”
Key Product Information:
– Exposure to XRP
– 100% physically backed by XRP
– 1.49% annual management fee
Virtune XRP ETP:
– Trading Currency: EUR
– First Day of Trading: Friday, 23rd of May 2025
– Xetra Exchange Ticker: VRTX
– Bloomberg Ticker: VIRXRP
– ISIN: SE0021486156
– WKN: A4AKW5
– Exchanges: Deutsche Börse Xetra, Nasdaq Stockholm, Nasdaq Helsinki
For further inquiries, please contact:
Christopher Kock, CEO & Member of the Board of Directors
Mobile: +46 70 073 45 64
Email: christopher@virtune.com
About Virtune AB (Publ):
Virtune with its headquarters in Stockholm is a regulated Swedish digital asset manager and issuer of crypto exchange traded products on regulated European exchanges. With regulatory compliance, strategic collaborations with industry leaders and our proficient team, we empower investors on a global level to access innovative and sophisticated investment products that are aligned with the evolving landscape of the global crypto market.
Cryptocurrency investments are associated with high risk. Virtune does not provide investment advice. Investments are made at your own risk. Securities may increase or decrease in value, and there is no guarantee that you will recover your invested capital. Please read the prospectus, KID, terms at www.virtune.com.
Source: US FBI
BIRMINGHAM, Ala. – A federal indictment unsealed yesterday charges seven individuals for their participation in a prison-based telephone scam and conspiring to smuggle cell phones, controlled substances, and other contraband to inmates at the William E. Donaldson Correctional Facility (Donaldson) in Bessemer, Alabama, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.
A seventeen-count indictment filed in U.S. District Court charges Keith Devon Perry, aka “Keep Paper,” 30, of Anniston, Kierro Deandrew Nelson, aka “10K,” 32, of Montgomery, Shedrick Romon Johnson, aka, “Cett,” 43, of Montgomery, Deangelo Lamon Russell, aka “Dee,” 31, of Anniston, Desmond Arterrio Nelson, aka “Dez,” 35, of Montgomery, and Aleshia Nelson,” aka “Leshia,” 30, of Montgomery, with conspiracy to commit an offense against the United States, using a facility in interstate commerce in furtherance of an unlawful activity, and conspiracy to distribute a controlled substance. Perry, Kierro Nelson, Johnson, and Brantley Glen Wheatley, aka “Queen B,” 29, of Tuscaloosa, are charged with conspiracy to commit wire fraud. Perry, Johnson, and Wheatley are charged with wire fraud. Perry and Wheatley are charged with aggravated identity theft. Perry, Kierro Nelson, Johnson, Wheatley, and Russell are charged with conspiracy to commit money laundering.
The defendants include current and former inmates at Donaldson, as well as family members of two inmates. The charges stem from a larger investigation into fraud and corruption at Donaldson that has to date resulted in nine additional individuals being charged. Those individuals include Wilson Brian Clemons, Ricardo Poole, Sr., Kortney Jovan Simon, Otis Lee Bowers, Terry Ray Bradshaw, Rennita Renee Perry, Kiara Reshell Anderson, Ricardo Poole, Jr., and Rhonda Thompson Poole.
According to the indictment, between July 2021 and February 2022, the defendants used contraband cell phones, social engineering techniques, and spoofing technology to trick retailers into transferring them funds under fraudulent pretenses. The proceeds of these telephone scams were then used to, among other things, finance the purchase of controlled substances and to pay bribes to corrections officers at Donaldson.
The charges of conspiracy to commit an offense against the United States and use of a facility in interstate commerce in furtherance of illegal activity both carry a maximum sentence of five years in prison The charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and conspiracy to distribute and possess with the intent to distribute a controlled substance each carry a maximum penalty of 20 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case. The Alabama Department of Corrections Law Enforcement Services Division, the Drug Enforcement Administration, and the Federal Bureau of Investigation have assisted in the investigation.
An indictment contains only charges. The defendants are presumed innocent unless and until they are proven guilty.
Source: Government of India
Source: Government of India (4)
Translation. Region: Russian Federal
Source: State University of Management – Official website of the State –
On May 21, 2025, the Higher School of Business and Technology of the State University of Management hosted the graduation of students of the Master of Business Administration (MBA) program. For the State University of Management, this is already the 57th graduation of students of the MBA program.
The MBA program of the State University of Management is aimed at developing management competencies, strategic thinking and decision-making skills. The target audience of the MBA program is business owners, entrepreneurs working on expanding their business and entering new markets, top and middle managers. The MBA program is based on the principles of developing management skills, forming new interaction chains, developing new technological solutions, flexible response and introducing new knowledge. The main focus of the MBA program is the joint development of applied business solutions by the best practitioners in their industry, faculty and students. It is on this paradigm that the practice of training at the Higher School of Business and Technology of the State University of Management is based.
The graduates highly appreciated the quality of the program, the organization of the educational process, thanked the entire university staff for the knowledge, skills and abilities they had received, and received MBA diplomas. Over the two years of study, MBA students studied various disciplines reflecting the practical foundations of organizing and running a business, managing a modern organization, managing finances, marketing and human resources, strategic management and change management, digital transformation of business, personal development of managers, and various business technologies.
With the completion of the MBA program, graduates begin a new interesting chapter in their lives, associated not only with professional and personal growth, but also with a significant increase in income. And, according to tradition, having thrown their confederate caps into the sky from the steps of the main academic building of the State University of Management, the graduates of the MBA program made their wishes.
The staff of the State University of Management wishes each graduate professional achievements, personal growth and sincerely hopes to meet again – on other programs and joint projects.
Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.
Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
OTTAWA, May 23 (Xinhua) — Finance ministers and central bank governors of the Group of Seven (G7) countries called for unity to address current global challenges on Thursday following their annual meeting in Banff, Canada.
According to a press release from the Department of Finance Canada, a communiqué was issued following the meeting, stressing the importance of G7 unity in the face of complex global challenges.
The meeting of finance ministers and central bank governors took place ahead of the June G7 summit in Kananaskis, Alberta, Canada. The participants had productive and frank discussions on the global economy, unsustainable global imbalances, development assistance and productivity, the press release said.
“Canada approaches this 50th meeting with clear priorities, such as stimulating growth and restoring stability to the global economy,” said Finance Minister Francois-Philippe Champagne.
The G7 is an informal grouping of major global economies designed to coordinate responses to global crises. It includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The Group of Seven finance ministers and central bank governors meet annually to discuss key economic policy issues. –0–
Source: US FBI
TUCSON, Ariz. – Whitney Adams, 27, of Hagerstown, Maryland, was sentenced last week by United States District Judge John C. Hinderaker to 48 months in prison and ordered to pay over $1 million in restitution to 17 victims. Adams pleaded guilty to Conspiracy to Commit Money Laundering on May 16, 2023.
Between January 2021 and April 2022, Adams laundered money for scammers who lured victims into various online frauds. In some instances, the victims believed they were sending money to support an online romantic partner who falsely stated they needed to pay taxes and fees to release an inheritance or gold bars. The stories told to the victims by the scammers were fraudulent. The scammers directed the victims’ monies into accounts controlled by Adams and her co-conspirator. When Adams and her co-conspirator received the fraudulent monies, they kept a fee for themselves, and then transferred the funds, via trade-based money laundering or other means, to Ghana. Adams and her co-conspirator set up phony businesses and then opened business bank accounts to hide the transfer of the fraudulently obtained funds. The FBI traced $4,437,604, sent by 106 victims, through Adams’ and her co-conspirator’s bank accounts. One Arizona victim lost nearly $5 million to the scams, sending over $1 million to Adams’ and her co-conspirator’s accounts and the remaining money to multiple other individuals. Adams’ co-conspirator pleaded guilty to Conspiracy to Commit Money Laundering and is scheduled to be sentenced on January 18, 2024.
This case was prosecuted as part of the U.S. Department of Justice’s (DOJ) Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This DOJ hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step and can help authorities identify fraudsters and recoup losses. The hotline is staffed 10 a.m. to 6 p.m. Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-00893-JCH-2
RELEASE NUMBER: 2024-002_Adams
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Source: US FBI
NEWS RELEASE SUMMARY – March 19, 2024
SAN DIEGO – Matthew Isaac Wolfe was sentenced in federal court today to 14 years in prison for his role in a conspiracy with Michael Pratt, owner of the website GirlsDoPorn, and others, to deceive and coerce young women into appearing in pornographic videos. A restitution hearing is scheduled for May 7, 2024 at 10 a.m.
The conspiracy included recruiting the victims from throughout the United States and Canada using internet advertisements for clothed modeling jobs. Even after the victims learned the gig involved an adult video-shoot, Wolfe admitted to persuading women to appear in the videos by telling them that the videos would never be posted online, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations he knew to be false. In truth, the videos were exclusively marketed and distributed on the internet. Not only did Wolfe lie to the women, he also instructed others to do so. Wolfe told co-defendant Theodore Gyi, the cameraman on hundreds of GirlsDoPorn video shoots, that if asked, he should lie to the women and tell them the videos would not be posted on the internet.
Most of the video shoots took place in San Diego – at local hotels and short-term rental units. Although the women were promised that the video shoots would be brief, they often took hours. Once the video productions began, some women were not permitted to leave the shooting locations until the videos were completed; some were threatened with lawsuits or cancelled flights home if they did not complete the videos; and others were allegedly forced to perform certain sex acts, which they had earlier declined to do.
After the victims returned home, still believing that they would remain anonymous, clips of the videos were posted on heavily trafficked adult film sites, like Pornhub, meant to funnel viewers to the full-length versions of the videos on Pratt’s website, GirlsDoPorn. Pratt charged visitors to GirlsDoPorn a subscription fee and generated more than $17 million in revenue.
Wolfe pleaded guilty to the conspiracy on July 26, 2022, admitting he moved to the United States from New Zealand in 2011 to work for Pratt and had a wide range of responsibilities. He filmed approximately 100 videos; uploaded finished videos onto the internet; oversaw the company’s financial books; and operated various business entities that were used to promote the business. Wolfe worked at GirlsDoPorn from 2011 until his arrest in October 2019.
During hearings today and on January 22, 2024, approximately 30 survivors asked a federal judge to impose a significant sentence, describing how the actions of Wolfe and his co-defendants destroyed their lives. Survivors, many of them college students at the time, described answering what they thought were legitimate modeling ads and flying to San Diego for paid modeling gigs, only to be forced to perform sexual acts on camera.
The women spoke of struggling with substance and alcohol abuse, anxiety and depression, suicidal thoughts and attempts, and post-traumatic stress syndrome in the aftermath of their videos going viral. Some spoke of lost relationships with friends and family; others dropped out of school; and others went into hiding.
One of the women said: “I was robbed of my privacy, my dignity, and my peace of mind… But worst of all, I was robbed of my identity. I was once viewed as a beautiful, fun-loving and strong woman who was known for her athleticism and ability to make just about anyone laugh. I was a caring friend and a daughter my parents were proud of. Mr. Wolfe shattered who I was…Today I’m taking my identity back. I am not a victim. I’m a survivor.”
One woman recalled the day she learned that her pornographic video received more than 300 million views on Pornhub, one of the most-visited websites in the world.
“That ad seemed harmless, but it wrecked my entire life. In an instant, the life I had was gone: My hopes gone, my relationships gone, everything was gone…The fall-out from the videos spread to every part of my life like cancer, and that cancer remains to this day, making it virtually impossible for me to start a new life. I lost my modeling career, my college years, my whole twenties, my name, my career path, my friends, and my family. Everything I had built was gone, and so too was my future. Doors that were once opened were slammed in my face…Matthew Wolfe stole my life, and it wasn’t just my life. He stole hundreds of lives. What kind of price do you put on a life? Mr. Wolfe deserves a jail sentence that accounts for each and every life he has stolen.”
Another woman told the court: “It’s been nearly 3,650 days of living in a tortuous purgatory, but today marks a major milestone in my recovery. Today there’s a shift in the winds. Today is the day all the survivors get their voices back. Today is the day we get to be heard.”
Wolfe also admitted he was aware that personal identifying information and social media accounts for some women were being posted on pornwikileaks.com, a site controlled by Pratt and dedicated to “exposing” the true identities of individuals appearing in pornographic videos, causing the victims to be subjected to severe harassment. Even after Wolfe became aware of this, he and others continued to assure prospective models that no one would ever find out about their video shoot or learn their identity.
“We applaud all survivors who courageously speak out in pursuit of justice,” said U.S. Attorney Tara McGrath. “Their voices rang out in the courtroom today, and we stand beside them in holding Mr. Wolfe accountable for the incredible pain and suffering he caused.”
“Matthew Wolfe’s willingness to use deception, coercion and intimidation to exploit young women paints a sordid picture of the lengths some people will go just to make money,” said FBI San Diego Special Agent in Charge Stacey Moy. “Wolfe’s sentencing today, and any past or future sentencings related to this case, are small slivers of justice for the victims, but ultimately don’t fully heal the deep pain spawned by Mr. Wolfe and the other defendants.”
Co-defendant Michael Pratt made his first appearance today after being extradited from Spain following more than three years as an international fugitive. In 2022, Pratt was named to the FBI’s Top Ten Most Wanted list.
Ruben Andre Garcia, the recruiter and male model, was sentenced to 20 years in prison on June 14, 2021. Theodore Gyi was sentenced to four years in prison on November 9, 2022. Valorie Moser, the office manager, is set for sentencing on August 9, 2024.
DEFENDANTS Case Number 19cr4488
Michael James Pratt Age: 36 Unknown
Matthew Isaac Wolfe Age 37 San Diego, CA
Ruben Andre Garcia Age: 31 San Diego, CA
Theodore Gyi Age, 46 Solana Beach, CA
Valorie Moser Age: 37 San Diego, CA
CHARGES
Count 1
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum Penalty: Life in prison, $250,000 fine.
INVESTIGATING AGENCIES
FBI – Southern District of California
U.S. Marshals Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Source: US FBI
NEWS RELEASE SUMMARY – March 25, 2024
SAN DIEGO – Zhiwei “Allen” Liao was sentenced in federal court today to 51 months in prison for his role as an organizer and leader of an international conspiracy to traffic in counterfeit Apple products. The defendant was also ordered to forfeit two residences along with $120,370 in U.S. currency and more than 200 Apple devices seized during the investigation.
According to court documents, Zhiwei Liao and his brothers, Zhimin Liao and Zhiting Liao, led an international exchange fraud scheme involving more than 10,000 counterfeit iPhones and iPads. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers (IMEI and serial numbers) matching identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada. At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada, and attempted to exchange counterfeit iPhones and iPads for genuine iPhones and iPads resulting in a loss of $6.1 million to Apple, Inc. Zhiwei Liao then sent the fraudulently obtained, but genuine Apple products primarily to China where they were sold at a premium.
In court today, U.S. District Judge Cynthia Ann Bashant said that a significant prison sentence was appropriate because Zhiwei Liao was the organizer and leader of an extensive international criminal organization that trafficked in counterfeit goods throughout North America for several years.
The scheme was sophisticated and dynamic, involving counterfeit devices imported from China that looked like genuine devices under warranty. Zhiwei Liao micromanaged the operations and created a moving target for law enforcement by directing counterfeit Apple products and criminal proceeds to be sent to different co-conspirators, companies, and family members throughout the scheme. Co-conspirators supported these efforts to avoid law enforcement by exchanging the counterfeit products using a variety of false names and email accounts.
The defendant’s brothers, Zhimin Liao and Zhiting Liao, who were also leaders of the conspiracy, were previously sentenced to 41 months in custody in October 2023.
This case is part of a multi-year investigation led primarily by the Federal Bureau of Investigation and the San Diego Police Department that resulted in 12 felony convictions, the forfeiture of five residences in San Diego with an estimated value of more than $4.1 million, over $250,000 in cash, and more than 200 Apple products that were either counterfeit, fraudulently obtained, or used during the criminal operations.
“This was a massive, sophisticated fraud that victimized not only Apple, Inc., but thousands of Apple product owners across North America,” said U.S. Attorney Tara McGrath. “Theft of intellectual property and the sale of counterfeit goods are growing global problems with serious economic implications.”
“Mr. Liao’s sentencing closes a major chapter in a multi-year investigation that exposed an international, elaborate scheme to sell counterfeit goods worldwide,” said FBI San Diego Special Agent in Charge Stacey Moy. “This investigation would not have been successful without the unwavering dedication and persistence of our law enforcement partners. We remain diligent in the pursuit of justice to help maintain the integrity of our economy.”
This case is being prosecuted by Assistant U.S. Attorney Timothy F. Salel.
DEFENDANTS Case Number 19cr4407-BAS
Zhiwei Liao, aka “Allen” San Diego, CA Age: 34
Zhimin Liao, aka “Jimmy” San Diego, CA Age: 36
Zhiting Liao, aka “Tim” San Diego, CA Age: 33
Dao Trieu La, aka “Selena” San Diego, CA Age: 32
Mengmeng Zhang, aka “Aria” San Diego, CA Age: 31
Tam Nguyen, aka “Kelly,” San Diego, CA Age: 39
Charley Hsu San Diego, CA Age: 41
Danny Tran Chan San Diego, CA Age: 32
Phillip Pak, aka “Teddy” San Diego, CA Age: 33
Deedee Zhu, aka “David,” San Diego, CA Age: 35
Jiaye Jiang, aka “joejoekong” San Diego, CA Age: 34
Hyo Yang, aka “Will” San Diego, CA Age: 33
SUMMARY OF CHARGES
Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 2320
Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego County Sheriff’s Department
U.S. Customs and Border Protection
Homeland Security Investigations
U.S. Marshals
Source: US FBI
NEWS RELEASE SUMMARY – March 26, 2024
SAN DIEGO – An indictment was unsealed today charging current and former minor league baseball players Jordan Qsar, Grant Witherspoon and Austin Bernard with insider trading in Del Taco, Inc. stocks after they received advanced notice of the acquisition of Del Taco by Jack in the Box, Inc. on December 6, 2021.
According to the indictment, Qsar learned from a close friend who worked at Jack in the Box that the company was acquiring Del Taco. The friend was a senior associate in Jack in the Box’s strategic finance department who personally worked on the acquisition project. The disclosure was a violation of duties to Jack in the Box and its shareholders.
The indictment states that Qsar fraudulently shared the inside information with Witherspoon and Bernard, who were connected to Qsar through collegiate and minor league baseball teams at Pepperdine University and the Tampa Bay Rays.
In the following months, after learning the inside information, Qsar, Witherspoon, and Bernard purchased Del Taco stocks, discussed when and how many shares they were purchasing, and tipped others with the inside information.
According to the indictment, after Jack in the Box and Del Taco went public with the acquisition on December 6, 2021, Del Taco stocks jumped in price from $7.53 to $12.51 per share—representing a 66 percent increase from the prior trading day’s closing price. In the days following, Qsar, Witherspoon, and Bernard sold all their Del Taco stocks, earning them illegal profits of approximately $56,000, $41,800, and $64,600, respectively.
“The system has to be fair for everyone, or the market fails,” said U.S. Attorney Tara McGrath. “Those who seek to undermine this system for personal gain will face consequences.”
“Insider trading directly affects the integrity of our economy,” said FBI San Diego Special Agent in Charge Stacey Moy. “We will continue to work with our federal, state, and local law enforcement partners to ensure people who intentionally undermine and threaten our economy will be brought to justice.”
This case is being prosecuted by Assistant U.S. Attorney Ronald Sou.
DEFENDANTS Case Number: 24-CR-0385-DMS
Jordan Joseph Qsar Age: 28
Grant Lee Witherspoon Age: 27
Austin Lane Bernard Age: 28
SUMMARY OF CHARGES
Title 18 U.S.C. 371 – Conspiracy
Maximum Penalty: Five years in prison; $250,000 fine
Title 15 U.S.C. 78j(b), 78ff & Title 17 C.F.R. 240.10b-5 and 240.10b5-1 – Securities Fraud
Maximum Penalty: Twenty years in prison; $5 million fine
Title 18 USC 1343 – Wire Fraud & Title 18 USC 2 – Aiding and Abetting
Maximum Penalty: Twenty years in prison; $250,000 fine
Title 18 USC 981(a)(1)(C) and Title 28 USC 2461(c) – Criminal Forfeiture
INVESTIGATING AGENCY
Federal Bureau 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.
Source: US FBI
WASHINGTON – Rushan Lavar Reed, 46, and Celeste Nicole Reed, 26, both of Las Vegas, Nevada, were arrested on charges, filed in U.S. District Court in Washington, D.C., related to the alleged sale of illegal drugs and the laundering of the drug proceeds. The charges were announced today by U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division.
According to the indictment, unsealed yesterday, starting in March of 2017, the Reeds knowingly conspired with others – known and unknown to the Grand Jury – to distribute and possess with intent to distribute narcotics that included a detectable amount of oxycodone, hydrocodone, and amphetamine. The indictment also alleges that the defendants conducted and attempted to conduct financial transactions involving the proceeds of illegal drug trafficking activity.
If convicted, the defendants each face a maximum statutory sentence of 10 years in prison for conspiracy to distribute the illegal drugs and 10 years in prison for conspiracy to commit money laundering. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia, with assistance from the FBI Las Vegas Field Office and U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Gary Crosby and Andy Wang, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Source: US FBI
NEWARK, N.J. – The United States Attorney’s Office for the District of New Jersey unsealed charges today against three Nigerian nationals for their roles in a transnational internet-enabled investment fraud scheme, U.S. Attorney Philip R. Sellinger announced.
Augustine Chibuzo Onyeachonam, 30, Stanley Asiegbu, a/k/a “Stanislaus, Asiegbu”, 37, and Chukwuebuka Nweke-Eze, 29, all of the Federal Republic of Nigeria, were each charged by Indictment with one count of wire fraud conspiracy (Count One), two counts of wire fraud (Counts Two and Three), one count of securities fraud conspiracy (Count Four), one count of identity theft conspiracy (Count Five), and four counts of aggravated identity theft (Counts Six through Nine).
These defendants not only defrauded dozens of victims out of millions of dollars of their hard-earned money, but they also impersonated licensed FINRA representatives, spoofed their websites, and misappropriated the seal of the SEC to carry out their fraud,” U.S. Attorney Sellinger said. “My office will continue to work with our law enforcement partners to pursue these kinds of scammers no matter where in the world they are and seek justice for their victims.”
According to the Indictment:
From at least as early as in or around 2018 through the present, Onyeachonam, Asiegbu, Nweke-Eze, and others (the “Conspirators”) orchestrated an internet-enabled fraud scheme that targeted victims throughout the United States, including in the District of New Jersey. As part of the fraud scheme, the Conspirators impersonated dozens of individuals registered as broker-dealers with the Financial Industry Regulatory Authority (“FINRA”) and used those stolen identities to solicit investments from members of the public through fraudulent public-facing websites.
The fraudulent, or “spoofed”, websites were registered in the names of the impersonated victim brokers and often included genuine credentials, such as CRD numbers, associated with the victim brokers. At times, the spoofed websites also included links to: (1) the FINRA website associated with the victim brokers that allowed any member of the public to view the victim brokers’ employment history, certifications, licenses, or prior violations; and (2) fake social media accounts created by the Conspirators in the names of the victim brokers. At times, the spoofed websites also displayed, without authorization, the seal of the U.S. Securities and Exchange Commission (“SEC”). The Conspirators would further use the SEC seal in email communications with victims.
The Conspirators lured victims of the fraud scheme to the spoofed websites by touting the services of the victim brokers in the comment sections of online articles or videos discussing financial and cryptocurrency investment-related topics. At times, the Conspirators would include links to one or more of the spoofed websites.
When a fraud victim visited a spoofed website, he or she was directed to communicate with an individual they believed to be a legitimate broker-dealer by contacting a telephone number or email address listed on the spoofed website. The Conspirators, posing as the victim brokers, then communicated with fraud victims and, among other things: (1) told fraud victims that their money would be invested in various stocks and cryptocurrencies; and (2) guaranteed fraud victims returns on their investments of up to 25%. The Conspirators used voice-changing software applications to impersonate certain female victim broker dealers when communicating by telephone.
When a fraud victim decided to invest money with one of the Conspirators posing as a victim broker, the fraud victim was told to: (1) open an account at a particular cryptocurrency trading platform; (2) purchase cryptocurrency assets through that platform; and (3) send the cryptocurrency assets to a particular cryptocurrency wallet address for the purpose of investment. In reality, the funds transferred by the fraud victims to the Conspirators were not invested but were stolen by the Conspirators. At times, fraud victims’ funds were stolen directly from the account(s) opened by them at a particular cryptocurrency exchange.
As part of the fraud scheme, the Conspirators further created fraudulent online investment platforms that falsely displayed monthly returns associated with the fraud victims’ investments. A fraud victim visiting one of the fraudulent investment platforms typically would observe substantial returns on their investment. At times, when a fraud victim requested to withdraw funds from their account, they would be asked by the Conspirators to pay additional money in fees or taxes to withdraw the funds. After paying these fees, the funds would still not be released.
In total, the Conspirators caused dozens of fraud victims to transmit funds that they believed to be for investments in the aggregate amount of at least approximately $3 million.
The wire fraud conspiracy charged in Count One carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the wire fraud charged in Counts Two and Three of the Indictment each carry a maximum potential penalty of 20 years in prison and a $250,000 fine, the conspiracy to commit securities fraud charged in Count Four of the Indictment carries a maximum potential penalty of 20 years in prison and a $250,000 fine; the conspiracy to commit identity theft charged in Count Five of the Indictment carries a maximum potential penalty of 15 years in prison and a $250,000 fine; and the aggravated identity theft counts charged in each carry a mandatory minimum sentence of two years and a $250,000 fine.
The U.S. Securities and Exchange Commission today filed a civil complaint against all three defendants based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI – Newark Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the indictment.
The government is represented by Assistant U.S. Attorneys Anthony P. Torntore and Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
24-450
Source: US FBI
WASHINGTON – William Hunter, 28, of Washington D.C., was sentenced in U.S. District Court today to 228 months in federal prison for participating in a multi-state string of violent gun-point robberies of South Asian jewelry stores that netted millions of dollars in cash and gold for the 15-member crew, allegedly led by Trevor Wright, aka rapper “Taliban Glizzy.”
The sentence was announced by U.S. Attorney Matthew M. Graves; ATF Special Agent in Charge Anthony A. Spotswood of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; FBI Assistant Director in Charge David Sundberg of the Washington Field Office; FBI Acting Special Agent in Charge Nelson I. Delgado of the Newark Field Office; U.S. Marshal Peter Marketos of the United States Marshals Service; and Chief Pamela A. Smith, of the Metropolitan Police Department.
Hunter, aka “Ill Will,” pleaded guilty on September 4, 2024 to interfering with interstate commerce by robbery (aka Hobbs Act robbery) and possessing a firearm during a crime of violence. In his plea, Hunter accepted responsibility for six robberies across Virginia, New Jersey, and Pennsylvania that not only stole millions of dollars in jewelry, but terrorized multiple victims and left behind a wake of destruction and financial loss. In addition to the prison sentence, U.S. District Court Judge Christopher R. Cooper ordered Hunter to serve 48 months of supervised release.
According to court documents, over the course of 18 months, Hunter and his co-conspirators engaged in a scheme to rob multiple South Asian jewelry stores of heavy gold jewelry of high purity. The conspiracy began in January 2022 and continued until August 2023 when several of the co-conspirators had been charged and arrested.
Each robbery was carefully coordinated in advance of its commission and employed a similar modus operandi, one that the co-conspirators seemed to hone and perfect over time and with each new criminal act. The co-conspirators researched stores to select their targets before meeting in Washington, D.C. and traveling in one or more getaway vehicles to the stores. To evade law enforcement detection, some of the suspect vehicles were stolen or outfitted with stolen tags. At least one of the vehicles was carjacked by Hunter and others at gunpoint on September 11, 2022, and later used in a robbery on September 20, 2022.
The co-conspirators often cased the stores in advance of the robbery and gained access by a variety of means, including using sledgehammers to shatter a store’s door or windows before storming in. The co-conspirators employed a show of force to gain compliance from their victims, with at least one co-conspirator armed with a firearm in each instance. They used hammers to smash the glass display cases, filling bags with gold jewelry and resulting in significant damage throughout the stores. In every single instance, however, Hunter and his co-conspirators terrorized the store’s owners, employees, and customers by engaging in an armed takeover of the store and then ransacking it before fleeing.
Often, following the robberies, the stolen gold would be melted to bars and ultimately converted to cash. Hunter and his co-conspirators would then flaunt their ill-gotten gains on social media.
On March 6, 2023, in Washington, D.C., law enforcement arrested Hunter on an outstanding arrest warrant issued out of Maryland arising from an October 22, 2022, armed carjacking. At the time of his arrest, Hunter had a loaded Glock 23 .40 caliber handgun with an obliterated serial number in his waistband. That same day, law enforcement executed a residential warrant at Hunter’s D.C. residence and recovered, among other items, 135 live rounds of assorted ammunition, four rifle magazines, one speed loader, and an AR-15 rifle drum magazine. They also recovered clothing that appeared consistent with some worn by Hunter during the commission of robberies, along with a crowbar and a hammer.
In April 2023, a federal grand jury indicted Hunter and Trevor Wright, aka rapper “Taliban Glizzy,” in connection with the armed robbery of Paradise Jewelry Store. On August 17, 2023, a federal grand jury returned a 19-count Superseding Indictment, charging Hunter and his co-conspirators in connection with nine armed robberies in New Jersey, Pennsylvania, Florida, and Virginia, with substantial planning and coordination occurring in D.C. On March 12, 2024, a Second Superseding Indictment was filed, adding charges related to two additional robberies, including one in D.C., as well as charges related to the recovery of firearms and narcotics from multiple residences associated with the various co-conspirators.
According to his plea agreement, Hunter accepted responsibility for his roles in: (1) the January 7, 2022, armed robbery of Yasini Jewelers in Falls Church, Virginia; (2) the September 20, 2022, armed robbery of Sonia Jewelers and Boutique in Springfield, Virginia; (3) the October 25, 2022, armed robbery of Paradise Jewelry in Paterson, New Jersey; (4) the November 10, 2022, armed robbery of Baral Jewelers and Gift Center in Harrisburg, Pennsylvania; (5) the November 27, 2022, armed robbery of Sara Emporium Jewelry in Jersey City, New Jersey; and (6) the January 27, 2023, armed robbery of Princess Diamonds in Falls Church, Virginia.
This case was investigated by the ATF, Metropolitan Police Department, and FBI Newark and Washington Field Offices. It is being prosecuted by Assistant U.S. Attorneys Sitara Witanachchi and Andrea Duvall.
|
DEFENDANT |
AKA |
HOME |
CHARGES/SENTENCE |
| Trevor Wright, 33 | Taliban Glizzy | Washington DC | Interfering with interstate commerce by robbery (aka Hobbs Act robbery); conspiracy to commit Hobbs Act robbery; possessing a firearm during a crime of violence; money laundering; conspiracy to engage in monetary transactions in property derived from unlawful activity. |
| William Hunter, 28 | Ill Will | Washington DC | Sentenced to 228 months on Dec. 11, 2024, after pleading guilty to interfering with interstate commerce by robbery (aka Hobbs Act robbery); and possessing a firearm during a crime of violence. |
| Avery Fuller, 29 | Deavry Cordell Fuller, Fully Ace | Washington DC | Pending sentencing after pleading guilty in the Middle District of Florida to conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence. |
| Franklin Hunter, 30 | Gino | Washington DC | Interfering with interstate commerce by robbery (aka Hobbs Act robbery); conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence; conspiracy to engage in monetary transactions in property derived from unlawful activity. |
| Davon Johnson, 31 | YB | Washington DC | Sentenced to 111 months on November 20, 2024, for conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence. |
| Decarlos Hill, 30 | Los | Maryland | Sentenced to 57 months on November 6, 2024, for conspiracy to commit Hobbs Act robbery. |
| Lamont Marable, 28 | Washington DC | Sentenced to 93 months on November 11, 2024, for interfering with interstate commerce by robbery (aka Hobbs Act robbery); and possessing a firearm during a crime of violence. | |
| Keith McDuffie, 27 | California | Interfering with interstate commerce by robbery (aka Hobbs Act robbery); conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence. | |
| Jameise Christian, 33 | Safety, Safe, Safe Play | Washington DC | Pending sentencing after pleading guilty in the Middle District of Florida to conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence. |
| Andrew Smith, 30 | Drewso, Drew | Maryland | Sentenced to 138 months in prison on October 17, 2024, for conspiracy to commit Hobbs Act robbery; and possessing a firearm during a crime of violence. |
| Robert Sheffield, 33 | Real Lifaa | Washington DC | Interfering with interstate commerce by robbery (aka Hobbs Act robbery); conspiracy to commit Hobbs Act robbery; possessing a firearm during a crime of violence; felon in possession of a firearm. |
| Jaylaun Brown, 22 | Lil Launy | Washington DC | Conspiracy to interfere with interstate commerce by robbery (aka Hobbs Act robbery). |
| Timothy Conrad, 33 | Twin | Washington DC | Sentenced to 168 months on October 1, 2024, for conspiracy to commit Hobbs Act robbery; and for possessing a firearm during a crime of violence. |
| Antonio Tate, 21 | Washington DC | Sentenced to 120 months for conspiracy to commit Hobbs Act robbery; and for brandishing a firearm during a crime of violence. | |
| Delonte Martin, 35 | Washington DC | Sentenced to 108 months for conspiracy to commit Hobbs Act robbery; and for brandishing a firearm during a crime of violence. |
Photo introduced into evidence depicts the robbery of $250,000 in jewelry from Princess Diamonds in Falls Church, Virginia
Surveillance photo depicts William Hunter walking with a tray of jewelry in one hand and a gun in the other during the January 7, 2022, armed robbery of Yasini Jewelers.
Images posted on October 29 and November 1, 2022, to Hunter’s Instagram account depict him with stacks of cash, a firearm, and a wristwatch.
23cr137
Source: US FBI
LITTLE ROCK—A Florida man was sentenced today for lying to federal agents. Steve Hill, 57, was sentenced to 18 months in prison and ordered to forfeit $345,727.15 by United States District Judge Brian S. Miller.
Formerly of the Memphis area, Hill spent nearly a quarter century working in the medical sales industry for various Fortune 500 companies, during which time he received standard compliance training on the Anti-Kickback Statute. In 2014, then working under Brad Duke of Little Rock, Hill began to promote expensive compounded prescription drugs covered by TRICARE. Hill operated on a commission basis, earning a fixed percentage of whatever TRICARE paid for the drugs.
To generate sales, Hill encouraged a Memphis area doctor to prescribe the expensive compounded drugs by agreeing to share his commission on the doctor’s prescriptions through payments to the doctor’s spouse. Most of Hill’s payments would eventually be routed to a Tennessee shell corporation formed under the spouse’s name. Within a year, Hill’s arrangement succeeded in generating over $1 million in TRICARE compounded prescription drug claims, earning Hill $345,727.15.
Federal agents investigating the case discovered the connection between Hill, the shell corporation, the spouse, and the doctor. In August 2017, federal agents visited Hill’s Memphis area home to discuss his promotion of compounded prescription drugs. When asked about his financial dealings with the spouse, Hill denied paying the spouse anything in relation to the doctor’s prescriptions.
The investigation was conducted by the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the case was prosecuted by Assistant United States Attorney Alexander D. Morgan.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
Twitter:
Source: US FBI
The Justice Department announced that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions.
“Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.”
“Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.”
Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year.
The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees.
“Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.”
The civil settlement includes the resolution of claims brought in 2021 under the qui tam, or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al., No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined.
Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Trial Attorneys Mary Schmergel, Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy.
The settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted against defendants are allegations only. There has been no determination of liability.
Source: US FBI
CLEVELAND – A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA).
In a civil complaint filed in August 2018, the United States alleged that Gregory Gerber, MD, age 59, of Port Clinton, Ohio, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA.
“Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.”
“All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.”
“Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)’s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”
“Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.”
“Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.”
Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office for the Northern District of Ohio.
U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case.
Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case.
The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.
Source: US FBI
CLEVELAND – Six people have pleaded guilty in a 33-count indictment with illegally obtaining nearly $3,000,000 in Federal Pandemic Unemployment Assistance (PUA) benefits using other people’s personal identifying information. The PUA program is overseen by the U.S. Department of Labor and was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 to provide temporary benefits to workers who lost work for COVID-19-related reasons.
According to court documents, from March 2020 to August 2021, the defendants, Clarissa Cheney, 30, of Cleveland Heights; Kevin Gilmore, 38, of Beachwood; Tiara Henderson, 37, of Lakewood; Ladessa Battle, 29, of South Euclid; Lynard Mitchell, 39, of South Euclid; and Marcelys Jones, 29, of Cleveland Heights, submitted fraudulent applications for PUA benefits to the California Employment Development Department (EDD) and other state workforce agencies around the country.
“The pandemic created unprecedented financial challenges for millions of Americans who were unable to work because their employers were forced to cut back business operations or close entirely. PUA was intended to assist those individuals—workers in dire need of financial support while unemployed—yet these defendants stole millions of dollars from that program,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “These guilty pleas demonstrate our office’s commitment to prosecute and hold criminally responsible those who try to scam federal relief programs, waste our tax dollars, and steal the identities of others. We thank our law enforcement partners for helping us hold these defendants responsible for their crimes.”
The defendants falsified application details, such as employment history and residency, to appear eligible for PUA benefits. As a result, California EDD and other agencies approved nearly $3,000,000 in unemployment insurance benefits in the defendants’ names, and those of other individuals. The benefits were pre-loaded onto bank-issued debit cards and sent through the U.S. mail. After receiving the debit cards, some of the defendants used the cards to make cash withdrawals at various ATMs in the Northern District of Ohio.
“The deliberate and conniving actions to cheat a program designed to assist people who were affected by the Covid-19 pandemic is inexcusable,” said FBI Special Agent in Charge, Greg Nelsen. “Their actions, including exploiting the identities of a multitude of individuals, will have a profound and long-lasting impact. The FBI and our partners will continue to identify and investigate those who commit pandemic-related fraud and seek justice for the victims.”
The defendants are scheduled to be sentenced in September and October 2024 and face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“The defendants engaged in an unemployment insurance (UI) fraud scheme that targeted multiple state workforce agencies. These individuals conspired to file fraudulent UI claims in the names of other individuals, diverting vital taxpayer resources away from unemployed American workers in dire need of UI benefits. These guilty pleas affirm the U.S. Department of Labor, Office of Inspector General’s commitment to protecting the integrity of the UI program. We are grateful for our many law enforcement partners, including the U.S. Attorney’s Office,” said Dana Johnson, Acting Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
The Department of Labor, Office of Inspector General, and the FBI investigated this case. This case was prosecuted by Assistant U.S. Attorneys Alejandro Abreu and Scott Zarzycki.
Source: United Kingdom – Executive Government & Departments
The company owed hundreds of thousands of pounds to creditors at the time
Mother and daughter Hazel Lamont and Nicola Murray decided to wind-up their Scotparts UK Ltd. company in 2023 as it was insolvent
However, Lamont paid her daughter almost £200,000 in company money in the days following their decision to cease trading
More than £300,000 had been paid into Scotparts’ bank account in the days before their decision to shut the company down
A Scottish mother paid nearly £200,000 to her daughter using funds due to a supplier just days after they decided their company was insolvent and would cease trading.
Hazel Lamont, 74, and her daughter Nicola Murray, 54, were directors of Scotparts UK Ltd., which was described on Companies House as being involved in the sale of machinery, industrial equipment, ships and aircraft.
The company, which had been trading since March 2006, was in financial trouble by October 2023 and both Lamont and Murray jointly decided Scotparts should stop trading due to debts it was unable to pay.
However, just two days earlier, the company received more than £300,000 from a customer.
Within one week of this payment, Lamont gave Murray £194,400 knowing that the company was insolvent and owed money to creditors.
Further amounts totalling £148,144 were paid by the pair to two connected companies during the same period.
Lamont, of Elliston Road, Howwood, Renfrewshire, and Murray, of Manse Road, Motherwell, have been banned as a directors for the next nine years.
Scotparts owed more than £900,000 when it went into liquidation in January 2024.
Mike Smith, Chief Investigator at the Insolvency Service, said:
Hazel Lamont and Nicola Murray knew, or at the very least, ought to have known that their company had significant liabilities to creditors.
Despite knowing the perilous financial state of their company, Lamont paid £194,400 to her daughter. This was not her money – it was company money which should have been paid to customers and suppliers.
The pair also transferred money to two connected companies, again depriving creditors of these funds.
Lamont and Murray have now been banned as company directors until May 2034 following our investigations into their misconduct.
Scotparts received £301,543 from a customer during the period of 18 and 19 October 2023.
The company also owed another creditor – a manufacturer of goods – £362,585 in outstanding invoices.
Lamont and Murray decided that Scotparts would cease trading on 20 October.
However, between that date and 25 October, Scotparts paid £194,400 to Murray.
In the week following the pair’s decision to place the company into liquidation, £96,899 was also transferred to I&H Distribution and Scotparts UK Ltd where Murray was a director.
An additional £51,245 was transferred to Scotparts Holdings Ltd, which listed Lamont as one of its directors.
No refunds or payments were made to either the buyer of goods or the manufacturer.
Six creditors submitted claims with a total of £916,899 when Scotparts went into liquidation.
The Secretary of State for Business and Trade accepted disqualification undertakings from Lamont and Murray, and their bans started on Tuesday 20 May and Friday 23 May respectively.
The undertakings prevent them from being involved in the promotion, formation or management of a company, without the permission of the court.
Hazel Lamont is of Elliston Road, Howwood, Renfrewshire. Her date of birth is 13 August 1950
Nicola Murray is of Manse Road, Motherwell. Her date of birth is 27 August 1970
Scotparts UK Ltd. (company number SC298273)
Individuals subject to a disqualification order or undertaking are bound by a range of restrictions
Source: US FBI
NEWARK, N.J. – A former assistant dean of an Essex County graduate school was sentenced yesterday to 36 months in prison for defrauding her former employer of more than $1.3 million, U.S. Attorney Philip R. Sellinger announced.
Teresina DeAlmeida, 59, of Warren, New Jersey and her co-conspirators, Rose Martins, 44, of East Hanover, New Jersey, and Silvia Cardoso, 61, of Warren, NJ, previously pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Julien Xavier Neals in Newark federal court.
“The defendant abused her position of trust as an assistant dean to orchestrate an elaborate embezzlement scheme for more than a decade. In doing so, she and her co-conspirators stole more than $1.3 million intended to benefit the school and its students. My office is committed to relentlessly prosecuting those who commit financial frauds.”
U.S. Attorney Philip R. Sellinger
“By choosing to utilize her position for illicit profit, Teresina DeAlmeida chose to enrich herself first and serve the students of the University last,” stated Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Financial fraud like this will not be tolerated and IRS Criminal Investigation will continue to work with our law enforcement partners to root out and investigate these financial crimes.”
“Trust is an intangible thing, a faith that people who have access to large sums of money won’t steal it. DeAlmeida took funds meant for students at the university and did so for more than a decade,” FBI Acting Special Agent-in-Charge Nelson I. Delgado said. “Students and most average citizens cannot see into finances of institutions, to question where it’s going and why it’s missing. The FBI Newark and our law enforcement partners have the tools to investigate wrongdoing and hold accountable those who don’t think anyone will notice $1.3 million is missing.”
“I am proud of the contribution of OIG Special Agents in holding former Assistant Dean DeAlmeida accountable for her criminal actions. Her willful diversion and theft of funds that were intended for the school and its students was completely unacceptable,” said John Carlo, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG will continue to work with our law enforcement partners to protect the integrity of Federal education funds.”
According to documents filed in this case and statements made in court:
Between 2009 and July 2022, DeAlmeida, Martins, and Cardoso conspired to fraudulently misappropriate more than $1.3 million from their former employer, a graduate school of a university in Essex County, New Jersey. During the scheme, DeAlmeida was an assistant dean responsible for financial functions, and Martins served as her assistant. Cardoso, DeAlmeida’s sister, was also employed by the graduate school in a support staff role.
The defendants used a variety of methods to defraud the university. For instance:
• Beginning in 2009, DeAlmeida directed a graduate school vendor to pay Martins and Cardoso as though they worked for the vendor, even though they did not perform any services. DeAlmeida and Martins then caused the vendor to submit false invoices to the graduate school over the course of approximately four years to reimburse the vendor for the amounts fraudulently paid to Martins and Cardoso.
• From 2010 through 2022, DeAlmeida and Martins directed graduate school vendors to order hundreds of thousands of dollars of gift cards and prepaid debit cards the co-conspirators used for their personal benefit, and then to submit fraudulent invoices to the school purporting to be for goods and services that were never provided. The co-conspirators also misused DeAlmeida’s school-issued credit card to purchase hundreds of thousands of dollars of gift cards and prepaid debit cards from the school’s bookstore. DeAlmeida routinely fraudulently approved these charges and Martins forged the signatures of other employees on internal approvals.
• In 2015, Martins opened a shell entity called CMS Content Management Specialist LLC. Although CMS never rendered any services to the graduate school, Martins submitted, and DeAlmeida approved, fraudulent invoices totaling more than $208,000.
• The co-conspirators also used DeAlmeida’s school-issued credit card to make tens of thousands of dollars in unauthorized personal purchases. For example, DeAlmeida and Martins used the card to make over $70,000 in purchases at an online retailer shipped directly to their homes, including woman’s shoes, smart watches, and bed linens. DeAlmeida and Martins fraudulently altered certain receipts before submitting them to the school for payment.
In addition to the prison term, Judge Neals sentenced DeAlmeida to 2 years of supervised release and ordered restitution of approximately $1,397,000.
U.S. Attorney Sellinger credited special agents of the Internal Revenue Services, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and special agents of the Department of Education, under the direction of Acting Special Agent in Charge John Carlo with the investigation.
The government is represented by Assistant U.S. Attorneys Carolyn Silane and Aja Espinosa of the Economic Crimes Unit in Newark.
Source: US FBI
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging John L. Hutchins, 70, of Lewiston, NY, and Roberto Soliman, 40, of Niagara Falls, NY, with conspiracy to commit wire fraud and bank fraud, bank fraud, and wire fraud. In addition, defendant Hutchins is charged with making a false statement and defendant Soliman is charged with engaging in monetary transactions with criminally derived property. The charges carry a maximum penalty of 30 years in prison.
Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose, who is handling the case, stated that the superseding indictment charges Hutchins and Soliman with filing fraudulent loan applications under the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG). The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). The defendants applied for loans under the following companies owned by defendant Hutchins:
• Rapids Theatre Niagara Falls, USA, Inc.
• 1711 Main, LLC
• Bear Creek Entertainment, LLC
• Hutch Enterprises, LLC
• The Hutchins Agency, LLC
• CWE Entertainment, Corp. (owned by defendant Soliman)
Between March and August 2020, Hutchins and Soliman received four Economic Injury Disaster Loans totaling $749,500.00. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications. Hutchins and Soliman used the loan funding for their own personal expenses, such as payments for residential properties in North Tonawanda, NY, and Lewiston, NY, a 2020 BMW, a 2020 Cadillac, homeowner association fees on a Florida condominium, and payments to relatives.
In addition, Hutchins and Soliman applied for and received two Paycheck Protection Program loans totaling $115,978.
In November 2020, Hutchins is accused of making a false statement to a Special Agent of the Federal Bureau of Investigation and to an Investigator of the United States Attorney’s Office, falsely denying applying for, or authorizing anyone to apply for, any Economic Injury Disaster Loans or Paycheck Protection Program loans, with the possible exception of one PPP loan for Rapids Theater.
Soliman is also accused of engaging in monetary transactions with criminally derived property for using the fraudulent loan proceeds to pay personal expenses.
The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline.
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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Source: US FBI
CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, pleaded guilty in federal court today to wire fraud for embezzling more than $1.7 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a Charlotte-based company, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. As part of the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write company checks to herself without proper approval or authorization and then deposited the checks into bank accounts under her control. As a result, Turney caused at least 1,000 fraudulent and unauthorized deposits totaling more than $1.7 million to be made from the bank account of the victim company to Turney’s bank account. Turney then covered up the fraud by, among other things, making false accounting entries in the company’s books and records, providing false information to the company’s tax return preparer, and giving false information to the company’s owner and employees. Turney generally spent the embezzled funds to pay for personal expenses, that included hundreds of thousands of dollars in shopping trips, car payments, mortgage payments, tuition payments, and vacation expenses.
The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Source: US FBI
CHARLOTTE, N.C. – A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled.
To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions.
As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation.
“Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.”
“Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney King. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”
“Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.”
Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the United States Marshals.
In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing.
The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation.
Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.
Source: US FBI
CHARLOTTE, N.C. – Steven Andiloro, 53, of Mooresville, N.C., pleaded guilty today to securities fraud and wire fraud for orchestrating a multimillion-dollar investment fraud scheme and fraudulently obtaining more than $2.6 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Hannibal “Mike” Ware, Inspector General of the Small Business Administration, Office of Inspector General (SBA-OIG), join U.S. Attorney King in making today’s announcement.
According to the plea agreement and documents filed in the case, from 2018 to 2021, Andiloro operated an investment fraud scheme and induced victims to invest money in businesses that were both real and fictitious, by making false representations about where and how the money would be invested. For example, some of Andiloro’s victims were told their money would be invested into his car service business. Other victims believed their money would be invested into a non-existent marijuana dispensary business. Contrary to representations made to victims, Andiloro did not invest the money as promised. Instead, Andiloro used the funds to pay for personal expenses and to make Ponzi-style payments to other investors.
In addition to the investment scheme, Andiloro also engaged in COVID-19 fraud. Court records show that, from April 2020 to March 2021, Andiloro obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for disaster relief loans intended for businesses that suffered economic hardship due to the pandemic. To obtain the PPP funds, Andiloro submitted applications that contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. Andiloro received more than $2.6 million in disaster relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment fraud scheme.
Andiloro was released on bond. The securities fraud and the wire fraud offense each carry a maximum prison sentence of 20 years. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service, the FBI, and the SBA-OIG for the investigation which led to the charges.
Assistant U.S. Attorneys Graham Billings and Katherine Armstrong with the U.S. Attorney’s Office in Charlotte are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Source: US FBI
COLUMBUS, Ohio – An employee of an armored truck company that delivered cash to bank branches and ATMs pleaded guilty in U.S. District Court to embezzling money as a bank agent.
Justin Eskridge, 37, of Reynoldsburg, admitted he took more than $220,000 from PNC ATMs. Eskridge was employed as an armed service technician for Loomis LLC and delivered cash for and to federally insured financial institutions. Loomis contracted with PNC Bank to transport money to various ATMs and bank branches.
Eskridge was employed with Loomis beginning in July 2021 and transported bags of money by armored vehicle to various PNC branches and ATMs. The thefts began around Dec. 14, 2022, and continued through Jan. 9, 2023.
PNC bank tellers reported shortages totaling approximately $226,000 cash when they balanced the residual amounts on certain ATMs. An investigation by Loomis identified Eskridge as the technician servicing that route.
Eskridge eventually admitted to Loomis that he had taken the money and led Loomis to recover approximately $144,000 cash hidden in his car. As part of his plea, he will pay the remaining balance to Loomis.
Theft or embezzlement by a bank employee or agent is a federal crime punishable by up to 30 years in prison. Congress sets the maximum statutory sentence, and sentencing of the defendant will be determined by the Court at a future hearing based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Damoun Delaviz is representing the United States in this case.
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Source: US FBI
Rebecca C. Lutzko, U.S. Attorney for the Northern District of Ohio, joins national, state, and local leaders in recognizing June 15, 2024, as World Elder Abuse Awareness Day. Since 2006, leaders and organizations around the world have commemorated this day to promote awareness and increase understanding of the many forms of elder abuse and the resources available to those at risk.
Highlighting the partnership between law enforcement and the public, U.S. Attorney Lutzko emphasized the importance of awareness and education.
“Elder abuse often takes the form of fraud. Together with our law enforcement partners, we aggressively investigate and prosecute individuals, organizations, and networks who lie to older adults in our community, attempting to steal money from them through a scam,” said U.S. Attorney Lutzko. “Every day, more and more scammers pretend to call or email from a government entity or well-known business and attempt to obtain personal identity and financial information from older adults and others, which they then use to commit financial crimes. We hope that by bringing awareness to this issue, more of us will look out for our family and friends who might be the target of such a crime, and report it to federal, state, or local authorities.”
Elder abuse is an act that knowingly, intentionally, or negligently causes or creates a serious risk of harm to an older person by a family member, caregiver, or other person who is in or creates a trust relationship. Such harm may be financial, physical, sexual, or psychological. The Justice Department maintains a variety of programs and initiatives to combat elder abuse.
The Justice Department’s Transnational Elder Fraud Strike Force includes federal and state agencies that work together to investigate and prosecute foreign-based schemes that target older Americans. This initiative also provides the public with information to guard against both traditional scams, like tech-support fraud, as well as trending schemes, such as romance scams.
Some fraudsters take a different tack in abusing older adults, using them as unwitting money mules to move the proceeds of illegal activity that they have already committed. Preying on the good will or financial vulnerability of their targets, scammers recruit people, many times older victims, to participate in schemes to move money from the scammers’ crimes, in ways that avoid notice. Scammers might recruit people to act as money mules through online job ads or social media postings, seeking people to send or receive money or packages, or to open accounts and forward money. The Justice Department’s Money Mule Initiative identifies and addresses this type of activity to disrupt these fraud schemes, and helps people learn how to recognize the signs of suspicious activity.
The U.S. Attorney’s Office for the Northern District of Ohio continues to work with federal, state, and local law enforcement partners to investigate and prosecute elder-abuse crimes that touch our District. Most recently, the Office prosecuted a case in which two men ran a “grandparent scam” where they pretended to be a relative, or an attorney for a relative, and claimed that the family member needed money for bail to get out of jail. This scheme caused the victims a combined loss of more than $383,932. In another case, a lottery scheme took more than $260,000 from older adults. The fraudsters contacted people by mail or phone and told them that they had won a lottery or sweepstakes. But they required the victims to pay upfront fees or taxes to claim the purported “prize.” In yet another instance, the Office prosecuted a woman for forging the victim’s signature on a power of attorney form so she could take money from the victim’s financial accounts. In each case, these fraudsters caused older adults and their families financial loss and emotional turmoil.
To help older individuals and their families identify and avoid fraudulent activity, the Justice Department provides periodic Senior Scam Alerts with information about the tactics used in specific schemes. For example, in Social Security Administration Impostor schemes, scammers impersonate government administrators and tell victims that there has been suspicious activity in connection with their social security account, or that their account is suspended, and claim that the victim must provide their Social Security number for confirmation. In Tech Support scams, fraudsters contact victims, sometimes through internet pop-up messages, to warn about non-existent computer problems. They then ask that the victim give them remote access to their computer and the fraudster will lie and say their computer has a problem, and then demand large sums of money for unnecessary services to fix the “problem.” In Lottery scams, telemarketers falsely notify victims that they have won a sweepstakes and tell them they must first pay fees for shipping, insurance, customs duties, or taxes before they can claim their prizes.
To learn more about the Department’s elder-justice efforts, please visit the Elder Justice Initiative page.
In addition, representatives of the U.S. Attorney’s Office for the Northern District of Ohio periodically speak about elder-fraud issues at community presentations throughout northern Ohio. If an organization is interested in coordinating such a presentation, they can contact the U.S. Attorney’s Office at (216) 622-3600 or at usaohn.contact@usdoj.gov.
Finally, if you observe something that you believe might be fraudulent conduct involving an older adult, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov to report it.