Category: Economy

  • MIL-OSI Security: U.K. National Sentenced for Fraudulent Wine and Whiskey Scam That Targeted Older Americans

    Source: US FBI

    Casey Alexander, 27, of London, England, was sentenced to three years of probation by U.S. District Judge Solomon Oliver, after pleading guilty to conspiracy to commit wire fraud.

    Alexander was ordered to pay $202,195.58 in restitution for his role in the scam to the victim investors.

    According to court documents, Alexander and others involved, engaged in a cold-calling scheme to target elderly investors throughout the United States. They used aggressive and deceptive tactics and promised large returns if the victims participated in wine and whiskey investments. They told victims that they could buy a portfolio of fine wines and whiskeys on their behalf, and then hold the purchase in a bonded warehouse located in Europe until sold for a profit.

    Alexander and his team were able to convince the victims across the country to wire funds or make checks out to one or more suspect companies to participate in the investment opportunities. After the initial investments were made, victims were encouraged, and eventually convinced, to continue investing in order to secure larger returns.

    In 2020, a victim’s son notified the Highland Heights Police Department (HHPD) to report the scam which defrauded the victim out of more than $300,000 over an 18-month period. HHPD then discovered similar complaints from others throughout the United States who reported being victims of a “wine scam” after being asked to purchase wine as an investment.

    This case was investigated by the FBI.  To date, investigators have identified over 150 victims within the United States who collectively invested more than $13 million in the wine and whiskey fraud scheme.

    This case was prosecuted by Assistant United States Attorney Brian McDonough for the Northern District of Ohio.

    The investigation and prosecution of this case is in response to the Elder Justice Initiative Program originating from the Elder Abuse Prevention and Prosecution Act of 2017 (EAPPA). The mission of the EAPPA and Elder Justice Initiative is to support and coordinate the Department of Justice’s enforcement efforts to combat elder abuse, neglect, financial fraud, and scams that target the nation’s elderly population.

    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.

    Related Links:

    U.S. Attorney’s Office Recognizes Elder Abuse Awareness Month

    Public Service Announcement from U.S. Attorney Lutzko

    Stay Aware of the Latest Scams

    MIL Security OSI

  • MIL-OSI United Kingdom: Leeds man arrested in recycling fraud investigation

    Source: United Kingdom – Executive Government & Departments

    Press release

    Leeds man arrested in recycling fraud investigation

    Environment Agency and Yorkshire and Humberside Regional Organised Crime Unit apprehend a 34-year-old man in Leeds

    A Leeds local has been arrested for conspiracy to commit money laundering, as part of an active Environment Agency investigation into illegal recycling export paperwork.

    In a joint raid earlier this week (Wednesday 21 May), Environment Agency officers worked with the Yorkshire and Humberside Regional Organised Crime Unit to apprehend a 34-year-old man at a property in Leeds.

    After being interviewed, the suspect has been released pending ongoing investigations and evidence gathered during the arrest will support action going forward.

    The arrest forms a crucial part of an ongoing investigation by the Environment Agency and Joint Unit for Waste Crime into fraud, money laundering and offences under the producer responsibility regulations. This now brings the total number of arrests to seven, after four individuals across Leeds, Doncaster and Calderdale were arrested in April last year, and two others being arrested in 2023.

    Emma Viner, Enforcement and Investigations Manager at the Environment Agency, said:

    We are calling time on fraud in the recycling sector, which undermines hard-working businesses and trashes our natural environment.

    Our teams are thoroughly examining all the evidence gathered in the raid to further progress the investigation and help put an end to this unacceptable, organised criminal activity.

    The Packaging Producer Responsibility Regulations were introduced to oblige the producers of waste packaging made from materials such as plastic, glass and cardboard to contribute towards the financial cost of recycling and disposing the waste.

    Businesses that meet the criteria are required to prove they have made a financial contribution by purchasing credits, known as Packaging Export Recovery Notes, from waste reprocessors or exporters. However, the credits have a monetary value which means organised criminal gangs can look to infiltrate the sector and engage in high value fraud and money laundering.

    In 2024, the Environment Agency launched a new Economic Crime Unit to boost its efforts to tackle money laundering and carry out financial investigations in the waste sector. This arrest marks another vital step in the unit’s work to ensure those working in waste management do the right thing and waste criminals are rooted out of the sector.

    If a member of the public has any information that may assist with this investigation, they should call the Environment Agency’s 24-hour hotline on 0800 807060. They can also report it anonymously via Crimestoppers on 0800 555111 or the Crimestoppers website.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • North-East to lead ‘heal in India’ mission: PM Modi

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi on Friday outlined a comprehensive vision for the North-East region as a global hub for wellness, tourism, and digital innovation.
     
    Speaking at the Rising North East Summit at Bharat Mandapam, New Delhi, the Prime Minister underscored the importance of the Heal in India initiative, which aims to establish India as a global provider of health and wellness solutions. He highlighted the North-East’s natural advantages—its rich biodiversity, pristine environment, and organic way of life—as ideal for wellness tourism and urged investors to see the region as an integral part of the Heal in India mission.
     
    “The North-East offers the perfect climate and ecological diversity for wellness-driven industries. This makes it a critical component of India’s global health and wellness roadmap,” he said.
     
    Emphasizing the region’s vibrant cultural heritage, the Prime Minister praised its deep-rooted traditions in music, dance, and festivals, positioning the North-East as a complete tourism destination. He noted that the area is well-suited for international conferences, concerts, and even destination weddings.
     
    “As development reaches every corner of the North-East, the tourism sector has experienced a surge in growth. Tourist numbers have doubled, leading to a rise in homestays, employment for young guides, and a thriving travel ecosystem,” he added.
     
    He called for greater investment in eco-tourism and cultural tourism, stating that the region holds vast untapped potential.
     
    Touching upon security, the Prime Minister emphasized that peace and stability are vital for sustained development. “Our government follows a zero-tolerance policy towards terrorism and insurgency,” he said. He recalled the earlier perception of the North-East as a conflict-prone area, plagued by blockades and unrest. “That image has changed. In the last 10–11 years, over 10,000 youth have shunned violence and embraced peace through several landmark peace agreements,” he said.
     
    This, he said, has opened new avenues for employment and entrepreneurship in the region.
     
    Highlighting the impact of the MUDRA Yojana, PM Modi said that financial support worth thousands of crores has been extended to lakhs of young entrepreneurs in the North-East. He also pointed to the growing network of educational institutions that are skilling the youth for future challenges.
     
    “The youth of the North-East are not just consumers of the internet—they are becoming digital innovators,” he said, adding that over 13,000 kilometres of optical fibre have been laid in the region, alongside the expansion of 4G and 5G coverage.
     
    He remarked that the North-East is fast emerging as India’s digital gateway, with young entrepreneurs launching impactful startups across sectors.
     
    The Rising North East Investors Summit, being held on May 23–24, is aimed at attracting both domestic and international investment to unlock the region’s potential as a driver of economic growth and innovation.
     
  • MIL-OSI Security: Pope County White Supremacist Operative Convicted of Racketeering

    Source: US FBI

          LITTLE ROCK—A two-week federal jury trial has resulted in the conviction of the financial backer of a white supremacist gang for his involvement in a racketeering and drug conspiracy. Marcus Millsap, 54, of Little Rock, was found guilty on all counts when the jury returned their verdict late Friday afternoon. United States District Judge Brian S. Miller presided over the trial, and Judge Miller will sentence Millsap later.

          Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering,  and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities including drug distribution, solicitations of murder, and attempted murder.

          At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE  to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death.  This conduct resulted in Millsap’s conviction Friday for attempted murder in aid of racketeering.

          Another 54 defendants were indicted in the case, all of whom have pleaded guilty except for Millsap and Troy Loadholt, who is currently a fugitive. While some defendants are still awaiting sentencing, the highest sentence so far has been given to Wesley Gullett, who was the President of the New Aryan Empire. Gullett was sentenced to 35 years imprisonment.

          “The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children.”

          The statutory penalty for conspiracy to violate racketeering laws is up to life imprisonment. The statutory penalty for attempted murder in aid of racketeering is up to 10 years imprisonment. The statutory penalty for conspiracy to possess with intent to distribute methamphetamine, based on the amount of methamphetamine involved in the case, is a minimum of 15 years and up to life imprisonment.

          The investigation included the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.

    # # #

    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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI

  • MIL-OSI Security: Culver City Restauranteur Pleads Guilty to Fraudulently Obtaining More Than $4 Million in COVID-19 Business-Relief Loans

    Source: US FBI

    SANTA ANA, California – A Culver City man and restauranteur who owns a hospitality company that has developed restaurants and hotels in California, Tennessee, and Kentucky pleaded guilty today to fraudulently obtaining more than $4 million COVID-19 economic-relief loans.

    Philip Frederick Camino, 45, pleaded guilty to one count of conspiracy to commit wire fraud.

    During the spring of 2020, Congress created these two federal programs to provide financial assistance to Americans suffering economic harm because of the COVID-19 pandemic.

    According to his plea agreement, Camino owns several companies based in Hollywood, Westwood, Studio City, and Beverly Hills as well as in Arizona. From April 2020 to April 2021, Camino submitted and caused to be submitted false and fraudulent applications to the United States Small Business Administration (SBA) and banks for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

    In these applications, Camino made false statements, including inflating the number of employees to whom were paid wages, providing fictitious federal tax forms that were never filed with the IRS, and falsely certifying that the loan proceeds would be used for permissible business purposes.

    Relying on Camino’s false information, the SBA and lenders approved and funded these loans, the proceeds of which were transferred to a bank account under Camino’s control. Camino used most of the fraudulently obtained money for expenses prohibited under the PPP and EIDL programs, including paying more than $100,000 in kickbacks to his accomplice.

    For example, in June 2020, Camino emailed a bank containing false documentation to support a $144,270 fraudulent PPP loan application on behalf of a company controlled by a co-conspirator.

    In total, Camino submitted more than 20 fraudulent loan applications from which he obtained more than $4 million.

    United States District Judge Fred W. Slaughter scheduled a March 6, 2025, sentencing hearing, at which time Camino will face a statutory maximum sentence of 20 years in federal prison.

    Homeland Security Investigations, the FBI, and IRS Criminal Investigation are investigating this matter.

    Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.

    MIL Security OSI

  • MIL-OSI Security: Man Sentenced to 12 Years for Sex Trafficking a 15-Year-Old Girl

    Source: US FBI

    NEWS RELEASE SUMMARY – February 12, 2024

    SAN DIEGO – Gabriel Joseph Gonzalez of Pomona, California was sentenced in federal court today to 12 years in prison for sex trafficking a 15-year-old girl in early 2023.

    Gonzalez pleaded guilty in July 2023 to one count of sex trafficking of a minor. The victim was a runaway living at a group home in Los Angeles County when Gonzalez began trafficking her. Gonzalez had known the victim since she was 13. He enticed her to leave the group home to engage in commercial sex work for Gonzalez’s financial benefit. He then transported the victim to San Diego and forced her to walk areas known for prostitution on Dalbergia Street in San Diego and Roosevelt Avenue in National City.

    During January 2023, Gonzalez forced the victim to engage in commercial sex work every day for seven straight days– except for the victim’s 16th birthday. He allowed her to take that day “off.”

    The victim escaped by calling 911. She was rescued by the San Diego Police Department on January 26, 2023, and the case was turned over to the San Diego Human Trafficking Task Force.

    Even after entering a guilty plea in July 2023, Gonzalez attempted to continue to traffic the victim while in custody through jail calls. U.S. District Judge Larry Alan Burns pronounced the 12-year sentence, noting Gonzalez’s “absolute lack of remorse” in his conduct while in custody and his continued victimization of the minor.

    “The victim’s courage to call 911 in this case was extraordinary,” said U.S. Attorney Tara McGrath. “Her trust in law enforcement demonstrated that when someone reports abuse, the public servants in this community are all hands on deck to bring abusers to justice.”

    “Human trafficking and sexual exploitation of a minor is inexcusable,” said Attorney General Rob Bonta. “At the California Department of Justice, we are fighting to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all our partners for their collaboration in the California DOJ-led San Diego Human Trafficking Task Force. I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results.”

    “The vital work being done by local and federal partners on the Human Trafficking Task Force to combat sex trafficking cannot be quantified,” said FBI San Diego Special Agent in Charge Stacey Moy. “The violence or coercion that is committed against sex trafficking victims can have a lasting negative impact on the victim, their families, and the community for years to come.”

    If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.

    This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.

    DEFENDANTS                                             Case Number 23-cr-0513-LAB                              

    Gabriel Joseph Gonzalez                                            Age: 20                                   Pomona, CA

    SUMMARY OF CHARGES

    Sex Trafficking of a Minor – Title 18, U.S.C., Section 1591(a) and (b)(1)

    Maximum penalty: Up to life in prison and $250,000 fine; Ten-year mandatory minimum sentence

    AGENCY

    San Diego Police Department

    National City Police Department

    Federal Bureau of Investigation, San Diego

    San Diego Human Trafficking Task Force

    MIL Security OSI

  • MIL-OSI Security: FBI San Diego Warns of Romance Scams

    Source: US FBI

    SAN DIEGO—Scammers are targeting victims using online dating sites. A whirlwind online romance can turn into fraud that causes victims to lose large amounts of money. Romance scams, a type of confidence fraud, begin when an individual believes they are in a romantic relationship and is tricked into sending money, personal information, financial information, or items of value to the perpetrator. They may also be deceived into laundering money or other valuable items to assist the perpetrator.

    In a romance scam, the scammers target and take advantage of people looking for companionship or romantic partners and con them out of their money. The criminals who carry out romance scams typically target victims via social media messaging and emails with the intention of establishing a relationship and building trust as quickly as possible.

    Confidence fraud/romance scams have resulted in one of the highest amounts of financial losses when compared to other Internet-facilitated crimes. The FBI’s Internet Crime Complaint Center (IC3) received more than 19,000 complaints about confidence fraud in 2022, with reported losses of nearly $740 million.

    FBI San Diego is monitoring a trend where romance scams turn into crypto investment fraud schemes. The scam starts similarly as an online relationship, but instead of asking for cash, the scammer convinces the victim to invest in cryptocurrency. To demonstrate the returns on investment, victims are directed to websites that appear authentic but are instead controlled by the scammer. Once the victim makes a purchase, they are unable to cash out their investments and the scammer disappears.

    If you develop a relationship with someone you meet online, FBI San Diego suggests the following tips to avoid becoming a victim of a romance scam:

    • If it doesn’t feel right, then it probably isn’t. Trust your instincts.
    • If you suspect an online relationship is a scam, stop all contact immediately.
    • Do not give any personal information or money to anyone you have only communicated with by telephone or online.
    • Be careful what you post online. Scammers can use details shared on social media platforms and dating sites to legitimize their story.
    • If you are planning to meet someone in person you have met online, proceed with caution, especially if you plan to travel to a foreign country. Review the State Department’s travel advisories before arranging travel. (travel.state.gov)

    Anyone who believes they’ve been a victim of fraud or knows someone who may be a victim should file a report on ic3.gov or call the FBI San Diego Field Office at (858) 320-1800. For more information on romance scams, visit www.fbi.gov/romancescams.

    MIL Security OSI

  • MIL-OSI Security: Husband and Wife Plead Guilty to $5 Million Unemployment Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – February 15, 2024

    SAN DIEGO –Eduard Buse and Florentina Sima pleaded guilty in federal court today to fraud and money laundering charges, admitting they participated in a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic.

    Buse and Sima were indicted by a federal grand jury in October 2023 along with 12 others. The indictment alleged that the fraud scheme involved helping hundreds of undeserving applicants apply for benefits using fraudulent documents. In their respective plea agreements, Buse and Sima admitted the fraud resulted in almost $5.2 million in bogus claims paid by the state of California.

    “These covid relief funds were meant to provide critical financial relief during the pandemic. Instead, the money was used to buy luxury cars and jewelry,” said U.S. Attorney Tara McGrath. “We will not only continue to prosecute those who diverted money intended to serve as a lifeline, but we will pursue every avenue to recover and return that money to public use.”

    “The Covid-19 pandemic placed an enormous financial strain on millions of Americans; however, some individuals decided to use other people’s pain as an opportunity for financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “Our pursuit of justice for those affected by fraud during the pandemic will not stop until each and every person who took advantage of individuals during this critical time is prosecuted for defrauding the U.S. government and innocent people.”

    “The defendants’ abuse of programs designed to help people in need during and in the wake of the Covid pandemic is particularly despicable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse, they took money intended to help people keep their heads above water and showered themselves with luxury items. IRS Criminal Investigation is committed to rooting out this sort of evil by following the money to bring people like these defendants to justice.”

    According to Buse’s plea agreement, he not only collected $28,350 in undue EDD benefits for himself but also facilitated payouts of $244,050 to 14 co-conspirators, including Sima. Buse then sent $128,902.99 and Sima sent $58,881.53 of fraud proceeds to their associates in Romania through money service businesses.

    Buse admitted that he purchased a 2020 BMW X6 for $105,044 in Glendale, California, with proceeds from the fraud and shipped it from San Diego to Romania on April 28, 2023.

    On November 13, 2023, Romanian authorities served search warrants on addresses affiliated with Buse at the request of the United States. They seized the BMW with California license plates along with approximately $9,476.50 in U.S. currency; a Rolex Yacht Master II and a rose gold luxury men’s watch purchased for $15,550 U.S. dollars; a Rolex Sky Dweller watch; a Breitling 1884 men’s watch; and a Rolex Oyster Perpetual Date women’s watch.

    As part of their plea agreements, Buse and Sima agreed to forfeit the BMW, cash and luxury watches, along with all other property seized in connection with the case.

    Buse also agreed to forfeit $128,902.99 and agreed to pay restitution in the amount of $244,050 to the State of California Employment Development Department. Sima agreed to forfeit $58,881.53 and pay the same amount in restitution to the State of California Employment Development Department.

    Buse and Sima are scheduled to be sentenced on May 20, 2024, at 9 a.m. before U.S. District Judge Larry A. Burns. This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu.

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    SUMMARY OF CHARGES

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

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

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

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

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

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    U.S. Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

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

    MIL Security OSI

  • MIL-OSI Security: Nevada Resident Pleads Guilty to COVID-19 Fraud Scheme

    Source: US FBI

    LAS VEGAS – A Nevada woman pleaded guilty Monday to fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.

    According to court documents, Karen Chapon, aka Karen Hannafious, 53, submitted six fraudulent PPP loan applications to three financial institutions for her companies. From April 2020 to July 2020, Chapon made multiple false statements about her companies’ respective business operations and payroll expenses, and submitted false documents to support the loan applications, including false federal tax filings. As part of the loan applications, Chapon falsely stated that she had not been convicted of a felony in the past five years, but in fact, she pleaded guilty to felony fraud offenses in 2016. She received four loans totaling approximately $596,931. Chapon used fraudulently obtained funds for her own benefit, including the purchase of a Mercedes Benz SUV.    

    Chapon pleaded guilty to one count of bank fraud. U.S. District Judge James C. Mahan scheduled sentencing for November 29, 2023. She faces a maximum statutory penalty of 30 years in prison, a five-year term of supervised release, restitution, and a fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

    The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

    Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans for the FBI; Inspector General J. Russell George for the Treasury Inspector General for Tax Administration (TIGTA); and Special Agent in Charge Weston King for the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region, made the announcement.

    This case was investigated by the FBI, TIGTA, and SBA-OIG. Trial Attorneys Lucy Jennings and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

    In May 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 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.

    Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.

    “Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes.”

    U.S. Attorney Philip R. Sellinger

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

    Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.

    According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

    The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.

    U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.

    The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

    MIL Security OSI

  • MIL-OSI Security: West New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud Conspiracy

    Source: US FBI

    CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.

    Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.

    “This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”

    U.S. Attorney Philip R. Sellinger

    According to documents filed in this case and the evidence at trial:

    Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.

    Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.

    Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.

    To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.

    In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.

    U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.

    The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.

    MIL Security OSI

  • Taliban in talks with Russia, China for trade transactions in local currencies

    Source: Government of India

    Source: Government of India (4)

    The Taliban administration is in advanced talks with Russia for banks from both sanctions-hit economies to settle trade transactions worth hundreds of millions of dollars in their local currencies, Afghanistan’s acting commerce minister said.

    The Afghan government has made similar proposals to China, the minister, Haji Nooruddin Azizi, told Reuters on Thursday. Some discussions have been held with the Chinese embassy in Kabul, he said.

    The proposal with Russia, Azizi said, was being worked on by technical teams from the two countries. The move comes as Moscow focuses on using national currencies to shift reliance away from the dollar and as Afghanistan faces a stark drop in the U.S. currency entering the country due to aid cuts.

    “We are currently engaged in specialised discussions on this matter, considering the regional and global economic perspectives, sanctions, and the challenges Afghanistan is currently facing, as well as those Russia is dealing with. Technical discussions are underway,” Azizi said in an interview at his office in Kabul.

    The Chinese foreign ministry and the Russian central bank did not immediately respond to requests for comment.

    Azizi added that annual bilateral trade between Russia and Afghanistan was currently around $300 million and that was likely to grow substantially as the two sides boost investment. His administration expected Afghanistan to buy more petroleum products and plastics from Russia, he said.

    “I am confident that this is a very good option…we can use this option for benefit and interests of our people and our country,’ Azizi said.

    “We want to take steps in this area with China as well,” he said, adding Afghanistan had around $1 billion in trade with China each year. “A working team composed of members from the (Afghan) Ministry of Commerce and the Chinese embassy which is an authorized body representing China in economic programmes has been formed, and talks are ongoing.”

    Afghanistan’s financial sector has been largely cut off from the global banking system due to sanctions placed on some leaders of the ruling Taliban, which took over the country in 2021 as foreign forces withdrew.

    Rivalry with China and fallout from Russia’s war in Ukraine have put the dollar’s status as the world’s dominant currency under fresh scrutiny in recent years.

    In December, Russian President Vladimir Putin questioned the need to hold state reserves in foreign currencies since they could easily be confiscated for political reasons, saying that domestic investment of such reserves was more attractive.

    The dollar has had a lock on commodity trading, allowing Washington to hinder market access for producer nations from Russia to Venezuela and Iran.

    Afghanistan since 2022 has imported gas, oil and wheat from Russia, the first major economic deal after the Taliban returned to power facing international isolation following 20 years of war against U.S.-led forces.

    Billions of dollars in cuts to aid to Afghanistan, accelerated this year by the United States, have meant far fewer dollars, which are flown in cash for humanitarian operations, are entering the country.

    Development agencies and economists say the Afghani currency has so far remained relatively stable but may face challenges in future.

    Azizi said that the stability of the currency and his administration’s efforts to boost international investment including with the Afghan diaspora, would prevent a shortage of U.S. dollars in the country.

    (Reuters)

  • MIL-OSI Europe: The EBA issues Opinion on a measure to address macroprudential risk following a notification by the Norwegian Ministry of Finance

    Source: European Banking Authority

    The European Banking Authority (EBA) today published an Opinion following a notification by the Norwegian Ministry of Finance of its intention to change the calibration of a measure originally introduced on 31 December 2020 and already extended until 30 June 2025. The measure aims to ensure that capital requirements of Norwegian institutions using internal ratings-based (IRB) approaches are appropriate for the systemic risks stemming from their residential real estate exposures. Based on the information provided, the EBA does not object to the measure.

    The measure is an exposure-weighted average risk weight floor applying to retail exposures secured by immovable property located in Norway. The institutions in scope of the measure are all institutions established in Norway that use the Internal Ratings Based (IRB) approach for the calculation of capital requirements for the relevant exposures. The notified period of application is between 1 July 2025 until 31 December 2026.

    In this Opinion, addressed to the Standing Committee of the EFTA States, the EFTA Surveillance Authority and the Norwegian Ministry of Finance, the EBA takes note of the financial stability risks stemming from high household debt and the build-up of financial imbalances in Norway. Against this background, the EBA invites the Ministry of Finance to closely monitor any overlaps of the proposed measure with microprudential requirements and other macroprudential measures already in force. In particular, the EBA points to unintended overlaps as the output floor requirements are phased-in and invites the Ministry to monitor closely and review the need for the proposed measure.

    Legal basis and background

    On 11 April 2025, the EBA received a notification from the Norwegian Ministry of Finance of its intention to apply Articles 458(2) and 458(9) of Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms (Capital Requirements Regulation, CRR) as incorporated into Annex IX of the Agreement on the European Economic Area (EEA) by the EEA Joint Committee Decision No 79/2019. In accordance with the second subparagraph of Article 458(4) of the CRR as incorporated into Annex IX of the Agreement on the EEA, within one month of receiving the notification, the EBA shall provide its opinion to the Standing Committee of the EFTA States, the EFTA Surveillance Authority and the EFTA State concerned. 

    MIL OSI Europe News

  • MIL-OSI Security: Two Former Employees of New Jersey Mortgage Lending Business Indicted for Roles in Mortgage Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – Two men were arraigned today on charges related to their roles in a large-scale mortgage fraud scheme, U.S. Attorney Philip R. Sellinger announced today.

    Christopher J. Gallo, 44, of Old Tappan, New Jersey, and Mehmet Ali Elmas, 32, a U.S. citizen who resided in Turkey until the time of his arrest, were indicted by a federal grand jury on Oct. 24, 2024, on one count of conspiracy to commit bank fraud, eight counts of bank fraud, eight counts of false statements to a financial institution; and one count of aggravated identity theft. They appeared today before U.S. District Judge Brian R. Martinotti in Newark federal court and each pleaded not guilty.

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

    Gallo and Elmas were previously employed by a New Jersey-based, privately owned licensed residential mortgage lending business. Gallo was a senior loan officer and Elmas was a mortgage loan officer and Gallo’s assistant. From 2018 through October 2023, Gallo and Elmas used their positions to conspire and engage in a fraudulent scheme to falsify loan origination documents sent to mortgage lenders in New Jersey and elsewhere, including their former employer, to fraudulently obtain mortgage loans. Gallo and Elmas routinely mislead mortgage lenders about the intended use of properties to fraudulently secure lower mortgage interest rates.  Gallo and Elmas often submitted loan applications falsely stating that the listed borrowers were the primary residents of certain proprieties when, in fact, those properties were intended to be used as rental or investment properties. By fraudulently misleading lenders about the true intended use of the properties, Gallo and Elmas secured and profited from mortgage loans that were approved at lower interest rates.

    The conspiracy also included falsifying property records, including building safety and financial information of prospective borrowers to facilitate mortgage loan approval. Between 2018 through October 2023, Gallo originated more than approximately $3 billion in loans.

    The charges of conspiracy to commit bank fraud, bank fraud, and false statements to a financial institution each carry a maximum potential penalty of 30 years in prison and a $1 million fine, or twice the gross gain or loss from the offense, whichever is greatest. The aggravated identity theft charge carries an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greatest.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, and special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the indictment.

    The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

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

    MIL Security OSI

  • MIL-OSI Security: Executive of Louisiana Compounding Pharmacy Admits Defrauding State Health Benefits Programs

    Source: US FBI

    CAMDEN, N.J. – The former vice president of sales of a Louisiana compounding pharmacy today admitted conspiring to use the Louisiana pharmacy to defraud New Jersey and military health benefits programs, Attorney for the United States Vikas Khanna announced.

    Christopher Casseri, 56, of Baton Rouge, Louisiana, pleaded guilty before U.S. District Judge Edward S. Kiel to one count of conspiring to commit health care fraud. Casseri was previously charged with Christopher Kyle Johnston, 45, of Mandeville, Louisiana, Trent Brockmeier, 62, of Pigeon Forge, Tennessee, in a 24-count indictment with conspiracy to commit health care fraud and wire fraud and a second conspiracy to commit identity theft by using individuals’ personal identifying information without their consent. Johnston and Brockmeier were charged with additional charges of conspiring to commit money laundering and substantive counts of money laundering for transactions involving the over $43 million in illicit profits they realized from the scheme. The charges against Johnston and Brockmeier remain pending and they are scheduled to proceed to trial in January 2025.

    According to court documents and statements made in Court:

    Central Rexall was a retail pharmacy in Louisiana that prepared compounded medications, which are supposed to be specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. In 2013, Johnston and Brockmeier entered into an agreement with Central Rexall Chief Executive Officer Hayley Taff, who pleaded guilty on Aug. 12, 2020, to conspiracy to commit health care fraud, to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits.  Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. They hired Casseri as vice president of sales to manage Central Rexall’s outside sales force.

    Johnston, Brockmeier, and Casseri learned that certain insurance plans administered by an entity referred to in the indictment as the “Pharmacy Benefits Administrator” would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations. The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, had this insurance coverage, as did TRICARE, which insures current and former members of the armed forces and their families.

    The three conspirators designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients. To determine which ingredients and combinations resulted in the highest insurance reimbursements, Johnston, Brockmeier, and Casseri had Central Rexall employees send the Pharmacy Benefits Administrator false prescription claims to test out different combinations of ingredients, but the prescriptions did not exist. By trial and error, Johnston, Brockmeier, and Casseri designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients. At their direction, Central Rexall sent compounded medications to patients based solely on financial gain, without any research or testing showing that the combination of ingredients was effective.

    When the Pharmacy Benefits Administrator would stop covering one combination, the conspirators would develop a compounded medication with a different combination of ingredients based solely on the insurance reimbursement and without considering the medical necessity or effectiveness of the new combination. Central Rexall then would send that new compounded medication to patients, even though the new combination of ingredients was not medically equivalent to the combination originally prescribed for the patients and without telling the patients or their doctor about the differences.

    The outside sales force retained and directed by Johnston, Brockmeier, and Casseri used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered with the patients’ knowledge, and paying patients to accept the medications and paying doctors to prescribe them.

    Casseri and his conspirators caused over $46 million in fraudulent insurance claims for compounded medications that were not medically necessary.

    Casseri faces a maximum penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for March 18, 2025.

    Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the guilty plea.

    The charges and allegations against Johnston and Brockmeier are merely accusations, and they are presumed innocent unless and until proven guilty.

    The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.

    MIL Security OSI

  • MIL-OSI Security: Somerset County Man Sentenced to 87 Months in Prison for Defrauding New Jersey Traumatic Brain Injury Fund of Millions of Dollars and Committing Tax Evasion

    Source: US FBI

    TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to 87 months in prison for conspiracy to commit healthcare fraud, five acts of healthcare fraud, and four counts of tax evasion, U.S. Attorney Philip R. Sellinger announced.

    C.R. Kraus, 58, of Manville, New Jersey was convicted in April 2024 of all 10 counts of an indictment following a trial before U.S. District Judge Zahid N. Quraishi in Trenton federal court. In January 2023, Kraus’s conspirators, Harry Pizutelli and Maritza Flores, pleaded guilty to conspiracy to commit healthcare fraud and tax evasion relating to defrauding the New Jersey Traumatic Brain Injury Fund (TBI Fund) of millions of dollars for their own personal benefit. Both are awaiting sentencing.

    “This defendant stole millions of dollars earmarked for victims of traumatic brain injuries. Stealing resources intended to help New Jersey residents who are already coping with serious challenges is especially egregious. This office will never relent in holding such criminals accountable. Today, this defendant learned the price of his criminal acts.”

    U.S. Attorney Philip R. Sellinger

    “C.R. Kraus was intent on defrauding the Traumatic Brain Injury Fund by making false claims that he treated patients who suffer from such maladies,” FBI – Newark Acting Special Agent in Charge Nelson I. Delgado said. “This not only took away valuable resources from other deserving patients but enabled Kraus and his co-conspirators to benefit substantial monetary gain, to the tune of more than $4 million. The FBI investigative team worked to put a stop to their fraudulent behavior, and bring to justice criminals who use the healthcare system as a personal piggy bank.”

    “Motivated entirely by greed, C.R. Kraus and his co-conspirators stole millions of dollars from a government program meant to aid individuals with life-altering injuries,” Special Agent in Charge Jenifer L. Piovesan, IRS Criminal Investigation, Newark Field Office, said. “Today’s sentence reinforces IRS-CI’s dedication to investigating financial crimes and ensuring bad actors are held accountable for their misconduct.”

    According to documents filed in this case and the evidence at trial:

    The TBI Fund is a publicly funded program run by the New Jersey Division of Disability Services, a component of the New Jersey Department of Human Services. The TBI Fund’s purpose is to provide New Jersey residents who have suffered a traumatic brain injury with services and support in order to maximize their quality of life when funding from insurance, personal resources, or other programs is unavailable to meet their needs. Services funded by the TBI Fund include physical, occupational, and speech therapy; service coordination; assistive technology; cognitive therapy; neuropsychological services; pharmaceuticals; wheelchair ramp installation and other home modifications; and general home management and maintenance.

    After a prospective patient applies for services, TBI Fund personnel review the application and, if approved, the patient is authorized to secure designated services from a third-party vendor. Once a patient receives services approved by the TBI Fund, the vendor or service provider submits an invoice to the TBI Fund for payment. When an invoice is received, TBI Fund personnel review the invoice to ensure that the patient had been approved to receive the services. If the invoice is approved, an internal payment voucher is generated, authorized by TBI Fund personnel, and then submitted to the New Jersey Department of the Treasury for payment, which issues a check directly to the vendor.

    Pizutelli was the manager of the TBI Fund and was responsible for its day-to-day operation. He supervised, managed, and oversaw the process by which third-party vendors were paid for services rendered to eligible TBI Fund beneficiaries. From 2009 through June 2019, Pizutelli, Kraus, and Flores conspired to defraud the TBI Fund by misappropriating more than $4 million in fraudulent vendor payments for purported services that were never actually provided. Pizutelli orchestrated the distribution of fraudulent vendor payments to Flores and Kraus by generating and processing false invoices and internal payment vouchers. Pizutelli generated these invoices and vouchers to give the appearance that Flores and Kraus had provided approved services to eligible patients when, in fact, they had not provided any services. Pizutelli then approved and transmitted the internal payment vouchers so that his conspirators received vendor payments.

    Pizutelli orchestrated these fraudulent payments to maintain and further romantic and/or sexual relationships with Flores, including more than $940,000 in fraudulent distributions to Flores and more than $3.245 million in fraudulent distributions to Kraus. To obscure their fraudulent conduct, Flores and Kraus also evaded the payment of substantial amount of income taxes by making material misstatements and omissions on their federal income tax returns and significantly underreporting the income they had derived from the fraudulent scheme.

    In addition to the prison term, Judge Quraishi sentenced Kraus to three years of supervised release and ordered restitution of $4.19 million.

    U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Acting Special Agent in Charge Delgado, and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty verdict. He also thanked the New Jersey Attorney General’s Office, Division of Law, and the New Jersey Department of Human Services, for its assistance.

    The government is represented by Eric A. Boden, Attorney-in-Charge in Trenton, and Assistant U.S. Attorney Eric Suggs of the U.S. Attorney’s Office Trenton Branch Office.

    MIL Security OSI

  • MIL-OSI Security: Former CEO of 500.Com (now Bit Mining Ltd.) Indicted for Role in Bribing Japanese Officials and Bit Mining Ltd. Resolves Foreign Bribery Investigation

    Source: US FBI

    NEWARK, N.J. – An indictment was unsealed today charging the former CEO of 500.com (now BIT Mining Ltd.), Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). BIT Mining Ltd. has agreed to resolve investigations by the Justice Department and the Securities and Exchange Commission (SEC) into related FCPA violations arising from the company’s participation in a corrupt scheme to pay bribes to Japanese government officials.

    BIT Mining entered into a three-year deferred prosecution agreement (DPA) in connection with a criminal information filed in the District of New Jersey charging BIT Mining with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA and one count of violating the books and records provisions of the FCPA.

    A federal grand jury in the District of New Jersey returned an indictment against Pan on June 18. Pan is charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.

    “Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, directed consultants to pay bribes to Japanese government officials to win a bid to open a large resort in Japan. The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them. The company has admitted its crimes and agreed to pay a $10 million penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”

    U.S. Attorney Philip R. Sellinger

    “BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2 million in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan,” Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, said. “Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”

    “Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct,” Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division said. “This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”

    According to court documents, between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its -CEO Pan, employees, and agents, agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials. The purpose of the bribes was to try to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities, and entertainment venues) in Japan. On behalf of 500.com, Pan allegedly engaged third-party consultants to assist 500.com in paying and concealing these bribes. 500.com, through these consultants, paid bribes in the form of cash, travel, entertainment, and gifts. Pan and others allegedly covered up the payment of these bribes by, among other things, entering into sham contracts with the consultants and falsely recording the payments as legitimate expenses, including as management advisory fees. Ultimately, despite carrying out this bribery scheme, 500.com did not win an integrated resort bid in Japan.

    Pursuant to the DPA, BIT Mining agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $54 million. However, due to BIT Mining’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, BIT Mining and the Justice Department agreed, consistent with the department’s inability to pay guidance, that BIT Mining will pay a total criminal penalty of $10 million. The Justice Department has agreed to credit up to $4 million against the civil penalty BIT Mining has agreed to pay to the SEC to resolve a parallel investigation.

    BIT Mining has also agreed to continue to cooperate with the Fraud Section and the U.S. Attorney’s Office for the District of New Jersey in any ongoing or future criminal investigations. In addition, BIT Mining has agreed to continue to enhance its compliance programs and provide reports to the Justice Department regarding remediation and the implementation of compliance measures for the three-year term of the DPA.

    The Justice Department reached this resolution with BIT Mining based on a number of factors, including, among others, the nature and seriousness of the offense. BIT Mining received credit for its cooperation with the department’s investigation, which included (i) voluntarily producing relevant documents, financial data, and other information, including from foreign countries, while navigating some foreign data privacy and related criminal laws, accompanied by translations of a limited number of documents; and (ii) providing the government with facts learned during its internal investigation. The cooperation was, however, reactive and limited in degree and impact.

    BIT Mining engaged in certain timely remedial measures, which included, among other things, (i) increasing governance and oversight of compliance risks and audit findings by the Board of Directors, (ii) promoting compliance and ethics through company-wide communications, (iii) incorporating compliance criteria in performance evaluations for senior management, (iv) conducting annual risk assessments, (v) creating an anti-corruption policy and engaging in company-wide training and communications to promote it, and (vi) transitioning its business model to an industry that presents a lower corruption risk and reducing its presence in high risk regions. In light of these considerations, BIT Mining’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 10% reduction off the bottom of the applicable guidelines fine range.

    The FBI’s International Corruption Unit is investigating the case.

    Assistant U.S. Attorney Jennifer Kozar for the District of New Jersey and Trial Attorneys Jil Simon and Ligia Markman of the Criminal Division’s Fraud Section are prosecuting the cases.

    The Justice Department’s Office of International Affairs and authorities in Japan provided assistance in this matter.

    The Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.

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

    MIL Security OSI

  • MIL-OSI Security: Kris Roglieri Indicted on Five Counts of Wire Fraud

    Source: US FBI

    ALBANY, NEW YORK – Kris Roglieri, age 44, of Queensbury, New York, has been indicted on wire fraud charges.

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

    Roglieri operated Prime Capital Ventures, LLC (“Prime Capital”) and Prime Commercial Lending, LLC (“Prime Commercial”), among other companies, that were based in Albany.

    The indictment and an earlier-filed criminal complaint allege that Prime Capital held itself out as a commercial lending business. As part of contractual arrangements with its borrower clients situated across the country, Prime Capital obtained upfront interest payments from prospective borrowers while it sought to secure loans for those borrowers; these upfront interest payments were characterized by Prime Capital as the “Interest Credit Account Payment,” or “ICA” payment for short. ICA payments did not represent fees to Prime Capital. Instead, each borrower’s upfront ICA payment would be debited over time as the loan was funded and accrued more interest. An ICA payment would also be refundable if Prime Capital failed to secure a loan for the borrower client.

    Roglieri is alleged to have defrauded a Minnesota company in December 2023, by committing to fund, through Prime Capital, an approximately $100 million commercial project, even though, at the time, Prime Capital had failed to fund numerous loans promised to earlier clients; failed to return tens of millions of dollars in ICA payments to earlier clients once those loans did not materialize; and had been sued multiple times by clients alleging fraud and seeking the return of ICA payments.

    On December 22, 2023, Roglieri, on behalf of Prime Commercial, signed a Deposit Agreement by which he agreed to keep the Minnesota company’s ICA payment in a “separate and distinct” bank account, and to hold it as a “trust fund.”  That same day, the Minnesota company wire transferred a $5 million ICA payment to a Prime Capital account controlled by Roglieri. Roglieri then transferred and spent these funds, including by transferring $950,000 in order to meet a financial obligation to another Prime Capital client; paying $84,000 for his purchase of a Rolex day-date 36 mm yellow gold diamond bezel watch; paying $101,000 to a private jet services company, for round-trip, private air travel between Albany International Airport and Anguilla, for a family vacation that Roglieri took from about December 29, 2023 to January 5, 2024; and paying $400,000 to a law firm that represented Prime Capital in court proceedings.   

    The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.

    If convicted, Roglieri faces up to 20 years in prison and a maximum $250,000 fine per count, as well as up to 3 years of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

    United States Magistrate Judge Christian F. Hummel ordered Roglieri detained after Roglieri’s May 31, 2024 arrest on the criminal complaint.

    The FBI is conducting this ongoing investigation. Assistant U.S. Attorneys Joshua R. Rosenthal and Michael Barnett are prosecuting this case.

    MIL Security OSI

  • MIL-OSI Security: Three High-Ranking MS-13 Gang Members Plead Guilty to Racketeering Charges in Connection with Nine Murders

    Source: US FBI

    Two Defendants Were the New York Leaders of the Gang’s Hollywood and Sailors Cliques

    Earlier today and on January 16, 2025, in federal court in Central Islip, three members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, pleaded guilty to multiple crimes, including nine murders committed on Long Island and elsewhere between 2016 and 2017.  David Sosa-Guevara, also known as “Risky,” the New York regional leader of the Hollywood Locos Salvatruchas (Hollywood) clique of MS-13, and Victor Lopez-Morales, also known as “Persa,” a high-ranking member of the Hollywood clique, pleaded guilty on January 16, 2025.  Kevin Torres, also known as “Inquieto” and “Quieto,” the New York regional leader of the Sailors Locos Salvatruchas Westside (Sailors) clique of MS-13, pleaded guilty on January 17, 2025.  

    Collectively, the three defendants pleaded guilty to racketeering charges in connection with their respective roles in nine MS-13 driven murders: (1) the April 26, 2016 murder of Samuel Martinez-Sandoval in Freeport; (2) the April 29, 2016 murder of Oscar Acosta in Brentwood; (3) the May 21, 2016 murder of Kerin Pineda in Freeport; (4) the September 4, 2016 murder of Josue Amaya-Leonor in Roosevelt; (5) the September 5, 2016 murder of Marcus Bohannon in Central Islip; (6) the October 10, 2016 murder of Javier Castillo in Freeport; (7) the October 14, 2016 murder of Carlos Ventura-Zelaya in Roosevelt; (8) the July 21, 2017 murder of Angel Soler in Roosevelt; and (9) the August 29, 2017 murder of David Rivera in Maryland, as well as narcotics trafficking. Additionally, Sosa-Guevara and Lopez-Morales pleaded guilty to participating in an August 2017 conspiracy to kidnap an individual identified in the superseding indictment as “John Doe #3.”

    The three guilty plea proceedings were held before United States Magistrate Judge Lee G. Dunst.  When sentenced by United States District Judge Joan M. Azrack, pursuant to the terms of their plea agreements, Sosa-Guevara and Torres each face up to 65 years in prison, and a minimum sentence of 40 years in prison.  Victor Lopez-Morales faces up to 60 years in prison and minimum sentence of 40 years. 

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD) and Anne T. Donnelly, Nassau County District Attorney, announced the guilty pleas.

    “The defendants have admitted to their participation in numerous murders savagely committed with machetes and guns, all on behalf of the MS-13 and to increase their status in that depraved criminal organization,” stated Acting United States Attorney Pokorny.  “As a result of the guilty pleas, the defendants will be severely punished by serving decades in prison and provide some measure of relief and closure to the families of the many victims.” 

    FBI Assistant Director in Charge Dennehy stated: “MS-13 callously used murder in an attempt to exert control over territory for their ruthless gang operations.   As demonstrated by the guilty pleas of these three, high-ranking MS-13 members for their roles in nine murders, this type of extreme and senseless violence will not go unpunished. The FBI’s Long Island Gang Task Force, along with our law enforcement partners, will continue to bring to justice members of MS-13 or any other violent gang using violence and murder to terrorize our communities.”

    “These defendants used their rank in the gang to help orchestrate multiple brutal murders and other crimes,” stated SCPD Acting Commissioner Waring.  “We in law enforcement will never stop working to fight the pervasive violence sowed throughout these gangs.”

    “The charges brought forth is a clear example of the results when Law Enforcement Personnel from Federal and Local Agencies combine their efforts and resources,” stated NCPD Commissioner Ryder.  “Their relentless and continued investigations resulted with the charging of these criminals who were responsible for committing these murders. This combined investigation demonstrates the diligence of the well trained and determined investigators.  The Nassau County Police Department remains committed in working with our law enforcement partners halting any gang activity on our streets and keeping our residents safe.  I would like to thank all of the assisting agencies and their investigators on a job well done.”

    “These defendants carried out vicious and senseless violence to instill fear and assert their dominance. Today’s guilty pleas bring us one step closer to ridding this dangerous gang activity from Nassau County communities,” stated Nassau County District Attorney Donnelly.  “Together with our partners, we remain committed to protecting Long Island from this criminal organization’s brutality and ensuring individuals involved in these devastating acts are held accountable for their crimes.”  

    According to court filings and statements made during the guilty plea proceedings, Torres was the New York regional leader of the Sailors clique, Sosa-Guevara was the New York regional leader of the Hollywood clique, and Lopez-Morales was a high-ranking member of the Hollywood clique.  The defendants admitted to committing the crimes set forth below in order to maintain and increase their membership and status within the gang, and to further the mission of the MS-13.

    April 26, 2016 Murder of Samuel Martinez-Sandoval

    The defendants pleaded guilty to the murder of 20-year-old Martinez-Sandoval, which was carried out in April 2016, by the defendants and other members from the Sailors, Hollywood and Normandie Locos Salvatruchas cliques, who planned a joint operation to lure and kill Martinez-Sandoval because they believed that he was a member of the rival Sureños gang.   

    On April 26, 2016, MS-13 members convinced Martinez-Sandoval to drive with them to a secluded, wooded area near Freeport Lake in Roosevelt, under the guise of smoking marijuana.  Separately, more than a half dozen MS-13 members, including the defendants, armed with machetes and other weapons, had gathered at a designated location along Freeport Lake where it was agreed that the other gang members would bring the victim.  When Martinez-Sandoval arrived, Sosa-Guevara, Torres, Lopez-Morales and the other MS-13 members surrounded and attacked the victim, each taking turns hacking him with a machete and other weapons.  After the victim was killed, the MS-13 members dug a shallow grave and buried the victim.  However, because the initial hole was not deep enough to conceal Martinez-Sandoval’s body, a group of MS-13 members went back the following day, reburied the victim and covered his body with cement and dirt.  Martinez-Sandoval’s body was not found until September 2024.

    April 29, 2016 Murder of Oscar Acosta

    Torres pleaded guilty to the murder of 19-year-old Acosta.  In early 2016, Torres, as leader, ordered a “greenlight” authorizing other gang members to murder Acosta because the gang suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  Torres assigned roles as to which members would take the lead in planning and carrying out the murder. 

     On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members who arrived in two cars.  The MS-13 members loaded Acosta into the trunk of one of the cars and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  The MS-13 members then removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the local leaders of the Sailors clique who reported back to Torres once completed.  After killing Acosta, the MS-13 members buried his body in a shallow grave.

    Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

    May 21, 2016 Murder of Kerin Pineda

    The defendants also pleaded guilty to the murder of 20-year-old Pineda, who, like Acosta, was killed because of his suspected membership in the 18th Street gang. Torres, again, ordered the “greenlight” for Pineda, marking him for death.  In response, MS-13 members from the Sailors and Hollywood cliques, including Sosa-Guevara and Lopez-Morales, devised a plan to kill Pineda.

    On May 21, 2016, MS-13 members, armed with machetes, lured Pineda to a secluded wooded area near the Merrick-Freeport border.  Torres, Lopez-Morales, and Sosa-Guevara acted as lookouts for police and coordinated the attack, staying in contact with the MS-13 members in the woods while they waited for Pineda.  When Pineda arrived, he was surrounded and violently attacked by the group of MS-13 members, each of whom took turns hacking and slashing him with the machetes. Pineda’s body was then buried in a hole that had been dug in the ground the day before, in anticipation of the murder. Before leaving the scene, the MS-13 members contacted the lookouts – Torres, Lopez-Morales, and Sosa-Guevara – who advised them that they could safely come out of the woods and drove them away from the scene.

    September 4, 2016 Murder of Josue Amaya-Leonor

    Sosa-Guevara and Lopez-Morales pleaded guilty for their roles in the murder of 19 year-old Amaya-Leonor on September 4, 2016.  Like the other victims, Amaya-Leonor was lured to a secluded wooded area and killed because of his perceived association with the 18th Street gang.  On the evening of the murder, MS-13 members convinced Amaya-Leonor to venture deep into the Roosevelt Preserve, in Roosevelt, to smoke marijuana.  Sosa-Guevara was in communication with the gang members by cell phone and was directing them on where to bring the victim.  Once there, Amaya-Leonor was surrounded by the MS-13 members who were armed with machetes; he was struck repeatedly, and killed.  Thereafter, Lopez-Morales, who was in the immediate area of the murder looking out for police, arrived on the scene and supervised the other MS-13 members as they dug a hole and buried Amaya-Leonor’s body, which was not found until May 2018 – over a year and a half after the murder had occurred.

    September 5, 2016 Murder of Marcus Bohannon

    Torres pleaded guilty to authorizing the murder of 27-year-old Marcus Bohannon.  On September 4, 2016, members of the Sailors clique met at the house of local clique leaders Alexi Saenz and Jairo Saenz, in Central Islip, where Torres directed the gang members to go out hunting for rival gang members to kill.  The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until one of the cars spotted Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting. Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

    October 10, 2016 Murder of Javier Castillo

    Torres also pleaded guilty to the murder of 15-year-old Javier Castillo.  In October 2016, the MS-13 targeted Castillo because he was believed to be a member of the 18th Street gang.  On October 10, 2016, members of the Sailors clique in Brentwood convinced Castillo, who lived in Central Islip, to go with them to Freeport – approximately 30 miles away – to smoke marijuana.  Torres authorized the members of the clique operating in Brentwood to bring Castillo to his territory in Freeport to be killed.  The MS-13 members took Castillo to an isolated marsh area along the water in Cow Meadow Park, in Freeport, where they attacked and killed him, taking turns hacking him with a machete.  Torres also served as the lookout for police in the area during the murder. Thereafter, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in October 2017.

    October 14, 2016 Murder of Carlos Ventura-Zelaya

    Sosa-Guevara and Lopez-Morales pleaded guilty to the murder of 24-year-old Ventura-Zelaya, who had been marked for death by the MS-13 because of his suspected membership in the rival 18th Street gang.  On the day of the murder, Ventura-Zelaya was observed at a deli in Roosevelt by a member of the Hollywood clique. Sosa-Guevara mobilized other members of the clique to kill Ventura-Zelaya and conducted surveillance of the victim until the other gang members arrived.  The gang members tasked with carrying out the murder first drove to pick up a gun from Lopez-Morales.  After obtaining the weapon, the group drove in the direction of the deli to look for and kill the victim.  Once they spotted Ventura-Zelaya walking on Hudson Street in Roosevelt, two MS-13 members got out of the car, approached him and one

    of them fired multiple times, striking and killing the victim.  They then ran back to the car and drove away from the scene.  

    July 21, 2017 Murder of Angel Soler

    Sosa-Guevara and Lopez-Morales also pleaded guilty to the murder of 15-year-old Soler. The MS-13 suspected Soler was an 18th Street gang member, and Sosa-Guevara ordered his murder. Lopez-Morales and other MS-13 members carried out the murder, luring Soler to wooded lot near Milburn Creek in Roosevelt to smoke marijuana.  The group attacked Soler with machetes and a pickaxe, and buried his body in a shallow grave.  The following day, MS-13 members went back to lay cement over Soler’s body, in order to better conceal it.  Soler’s remains were recovered in October 2017.

    August 2017 Conspiracy to Kidnap John Doe #3

    Lopez-Morales and Sosa-Guevara also admitted that, just weeks after the Soler murder, they and other MS-13 members planned the kidnapping, assault, and/or murder of John Doe #3, an MS-13 member who had violated the rules of the gang. Specifically, Sosa-Guevara assigned Lopez-Morales and two other MS-13 members to carry out the kidnapping and attack. Lopez-Morales was instructed that, once they had John Doe #3, to wait for further guidance from MS-13 leadership as to whether to kill or brutally assault him.  On August 6, 2017, Lopez-Morales and the other gang members’ plan to kidnap John Doe #3 was foiled by law enforcement, who had been intercepting the calls arranging the attack, pursuant to court-ordered wiretaps of certain MS-13 members’ cell phones, and Lopez-Morales was taken into custody.

    August 29, 2017 Murder of David Rivera

    Sosa-Guevara also admitted to his participation in the murder of 16-year-old Rivera in Maryland.  To avoid law enforcement in New York, Sosa-Guevara and another Hollywood member from Long Island relocated to Maryland where they connected with the local Hollywood clique.  After arriving, Sosa-Guevara learned of a plan to kill a rival gang member and directed the other Long Island member of his clique to participate.  On August 29, 2017, Sosa-Guevara drove the other gang member to a park outside of Edgewater, Maryland, for him to participate in the Rivera murder.  The victim was brought to that location by other MS-13 members, attacked with machetes and killed.  After the murder, Sosa-Guevara drove the member of his clique away from the scene. Rivera’s body was not found until June 7, 2024.

    Narcotics Trafficking Conspiracies

    Finally, Torres pleaded guilty to conspiring with the members of the Sailors clique to distribute cocaine and marijuana, and Sosa-Guevara and Lopez-Morales pleaded guilty to conspiring with members of the Hollywood clique to distribute marijuana. These charges stemmed from the MS-13 cliques’ street-level sales of cocaine and marijuana on Long Island, the proceeds of which were used to help finance the MS-13’s criminal operations.

                                                                  *          *          *          *

    These guilty pleas are the latest achievements in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, NCPD, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

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

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with assistance from Assistant District Attorney Jared Rosenblatt of the Nassau County District Attorney’s Office and Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

    The Defendants:

    VICTOR LOPEZ-MORALES (also known as “Persa”)
    Age:  36
    Roosevelt, New York

    DAVID SOSA-GUEVARA (also known as “Risky”)
    Age:  33
    Roosevelt, New York

    KEVIN TORRES (also known as “Quieto” and “Inquieto”)
    Age:  29
    Freeport, New York

    E.D.N.Y. Docket No. 20-CR-251 (S-1)(JMA)

    MIL Security OSI

  • MIL-OSI Security: Former Finance Minister of Mozambique Sentenced to 102 Months’ Imprisonment for His Role in $2 Billion Fraud and Money Laundering Scheme

    Source: US FBI

    BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Manuel Chang, the former Finance Minister of Mozambique, was sentenced by United States District Judge Nicholas G. Garaufis to a term of imprisonment of 102 months and ordered to pay $7 million in forfeiture.  The restitution amount will be determined at a later date.   Chang was convicted after a four-week trial in July and August 2024 of conspiring to commit wire fraud and money laundering in connection with his role in a $2 billion international fraud, bribery and money laundering scheme that victimized investors in the United States and elsewhere.  He was arrested in December 2018 in South Africa, pursuant to a provisional arrest warrant issued at the request of the United States and extradited to the Eastern District of New York in July 2023.

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, Brent S. Wible, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

    “Today’s sentence shows that foreign officials who abuse their power to commit crimes targeting the U.S. financial system will meet U.S. justice,” stated Acting United States Attorney Pokorny.  “My Office will continue to pursue those who violate our laws and harm U.S. investors regardless of their power, position or title.”  

    “Manuel Chang abused his position as Finance Minister of Mozambique by obtaining $7 million in bribe payments in exchange for helping secure more than $2 billion in loans,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Chang’s brazen misconduct betrayed his duty to the people of Mozambique and defrauded investors, including those in the United States, of substantial amounts. With today’s sentence, Chang has been held accountable for his violations of U.S. law.”

    “Manuel Chang abused his authority as the former Mozambique Finance Minister by helping to obtain billions of dollars in loans, a large portion of which was diverted from its intended purposes to satisfy bribe payments, ultimately causing significant financial loss to U.S. and global investors,” stated FBI Assistant Director in Charge Dennehy.  “With the support of his co-conspirators, Chang violated the trust of his office and wielded his position to enrich himself and other Mozambican officials. May today’s sentencing reiterate the FBI’s commitment to dismantling all corruptive malpractices orchestrated by foreign governments, especially those targeting our country as their personal piggy bank.”

    As proven at trial, Chang received $7 million in bribes in exchange for signing guarantees on behalf of the Republic of Mozambique to secure funding for three loans for maritime projects.  As part of the scheme, Chang and his co-conspirators falsely stated to banks and investors that the loan proceeds would be used for the projects and that the borrower would not pay bribes to Mozambican government officials. In fact, however, Chang and his co-conspirators facilitated the criminal diversion of more than $200 million of the loan proceeds that were used to pay bribes and kickbacks to Chang and others.

    Between approximately 2013 and 2016, in his capacity as Mozambique’s Minister of Finance, Chang, together with his co-conspirators – including executives of Privinvest Group, a United Arab Emirates-based shipbuilding company – ensured that Credit Suisse AG, through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and another foreign investment bank would arrange for more than $2 billion to be extended to companies owned and controlled by the Mozambican government:  Proindicus S.A. (Proindicus), Empresa Moçambicana de Atum, S.A. (EMATUM), and Mozambique Asset Management (MAM).  The proceeds of the loans were intended to fund three maritime projects for which Privinvest was to provide the equipment and services. Specifically, Proindicus was to perform coastal surveillance, EMATUM was to engage in tuna fishing, and MAM was to build and maintain shipyards.

    Instead, Chang and his co-conspirators illegally facilitated Privinvest’s diversion of more than $200 million of the loan proceeds to bribes and kickbacks.  These funds included more than $150 million that Privinvest used to bribe Chang and other Mozambican government officials to ensure that companies owned and controlled by the Mozambican government would enter into the loan arrangements, and that the government of Mozambique would guarantee those loans.  The loans were subsequently sold in whole or in part to investors worldwide, including in the United States.  In doing so, the participants in the scheme conspired to defraud these investors by misrepresenting how the loan proceeds would be used.  Ultimately, Proindicus, EMATUM, and MAM each defaulted on their loans and proceeded to miss more than $700 million in loan payments, causing substantial losses to investors.

    In October 2021, Credit Suisse AG and CSSEL admitted to defrauding U.S. and international investors in the financing of an $850 million loan for the EMATUM project. CSSEL pleaded guilty to conspiracy to commit wire fraud and Credit Suisse AG entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York, the Criminal Division’s Fraud Section (Fraud Section) and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS).  As a part of the resolution, Credit Suisse AG and CSSEL paid approximately $475 million in penalties, fines, and disgorgement as part of coordinated resolutions with criminal and civil authorities in the United States and the United Kingdom.

    The Office’s Business & Securities Fraud Section is handling the case.  Assistant United States Attorneys Hiral D. Mehta, Genny Ngai and Jonathan Siegel, and Trial Attorneys Peter Cooch of the Fraud Section and Morgan Cohen of MLARS, are in charge of the prosecution, with assistance from Paralegal Specialist Timothy Migliaro.  The Justice Department’s Office of International Affairs provided substantial assistance. The Justice Department appreciates the assistance of South African authorities, particularly those in the South African Department of Justice and Constitutional Development and the South African Police Service, as well as authorities in the United Kingdom, Switzerland, Spain and Portugal.

    The Defendant:

    MANUEL CHANG
    Age: 69
    Mozambique

    E.D.N.Y. Docket No. 18-CR-681 (NGG)

    MIL Security OSI

  • MIL-OSI Russia: UN Security Council Condemns Terror Attack in Pakistan

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    UNITED NATIONS, May 23 (Xinhua) — The United Nations Security Council on Thursday condemned the attack on a school bus in Pakistan’s Balochistan province on Wednesday.

    In a press statement, the SC members “condemned in the strongest possible terms the heinous and cowardly terrorist attack” in Khuzdar town.

    “This reprehensible terrorist attack resulted in the tragic death of at least six Pakistani citizens, including four schoolchildren, and injured 53 others, 39 of whom were children,” the statement said.

    The Security Council members expressed their deepest sympathy and condolences to the families of the victims and to the government and people of Pakistan. They stressed the need to bring to justice the perpetrators and organizers of the terrorist attacks, as well as those who finance and support them.

    Terrorism in all its forms and manifestations represents one of the most serious threats to international peace and security, Security Council members said. –0–

    MIL OSI Russia News

  • MIL-OSI Security: High-Ranking MS-13 Gang Member Pleads Guilty to Seven Murders, Multiple Attempted Murders, Arson and Firearms Offenses

    Source: US FBI

    Earlier today, in federal court in Central Islip, Jairo Saenz, also known as “Funny,” a high-ranking member of the Brentwood/Central Islip chapter of the Sailors Locos Salvatruchas Westside (Sailors) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in seven murders, namely, the January 28, 2016 murder of Michael Johnson; the April 29, 2016 murder of Oscar Acosta; the September 13, 2016 murders of Kayla Cuevas and Nisa Mickens; the October 10, 2016 murder of Javier Castillo; the October 13, 2016 murder of Dewann Stacks; and the January 30, 2017 murder of Esteban Alvarado-Bonilla.  Saenz also pleaded guilty to his participation in three attempted murders, arson, narcotics trafficking, firearms offenses and a conspiracy to kill Marcus Bohannon, who was murdered on September 5, 2016 by other members of the MS-13.

    Today’s guilty plea proceeding was held before United States District Judge Gary R. Brown.  When sentenced, Jairo Saenz faces up to 60 years in prison, and a minimum sentence of 40 years in prison under the terms of his plea agreement. 

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Robert E. Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.

    “Today, Jairo Saenz pleaded guilty to seven murders that can only be described as barbaric, and multiple acts of senseless gang violence that had turned parts of Long Island into a war zone, with MS-13 gang members wielding guns, machetes, bats and fire that threatened the safety of our communities,” stated Acting United States Attorney Pokorny.  “I commend my Office’s prosecutors and the Long Island Gang Task Force who are committed to holding MS-13 gang members accountable for the crimes they have committed and harm they have caused.  It is my sincere hope that today’s guilty plea brings some measure of solace and closure to the families of the defendant’s victims who continue to mourn the deaths of their loved ones.”

    According to court filings and statements made during today’s guilty plea proceeding, Jairo Saenz was a high-ranking member of the Brentwood/Central Islip chapter of the Sailors clique of the MS-13 – one of the more powerful, violent and well-established cliques on the East Coast of the United States.  At the time, he was second in command to his brother, Alexi Saenz, who pleaded guilty to the same crimes on July 10, 2024.  Jairo Saenz committed the following crimes in order to maintain and increase his membership and status within the gang, and to further the mission of the MS-13:

    January 28, 2016 Murder of Michael Johnson

    On January 28, 2016, Alexi Saenz and other MS-13 members and associates were at the Jocorena Deli in Brentwood, where they saw 29-year-old Michael Johnson, and claimed to recognize him as a member of the rival Bloods street gang.  At that point, Johnson was marked as their “food” – a reference to their intention to kill him. 

    After receiving the requisite approval from the New York leader of the Sailors clique to commit this murder, Alexi Saenz contacted Jairo Saenz and several other MS-13 members, informed them of the plan to kill Johnson and instructed them to bring weapons, including a machete and a baseball bat, to a wooded area in Brentwood.  Alexi Saenz then lured Johnson to that secluded meeting location under the guise of smoking marijuana.  The MS-13 members and associates, including Jairo Saenz, ambushed Johnson from behind – striking Johnson with the baseball bat, stabbing him with a knife and taking turns hacking him with the machete.  They fled after hearing police sirens in the area.   

    Johnson was reported missing by family members.  Less than one week after his murder, on February 2, 2016, members of the SCPD responded to a 911 call about a body found in the woods by a passerby and recovered Johnson’s body.  An autopsy determined Johnson’s cause of death to be sharp and blunt force injuries.   

    April 29, 2016 Murder of Oscar Acosta

    In early 2016, Alexi Saenz, Jairo Saenz and their fellow Sailors clique members decided to “green light,” or approve, the murder of 19-year-old Oscar Acosta because they suspected that he was associating with the rival 18th Street gang after previously aligning himself with the MS-13.  The New York Sailors clique leader assigned roles as to which members would take the lead in planning and carrying out the murder. 

    On April 29, 2016, MS-13 members met Acosta in a wooded area near an elementary school in Brentwood where he had been lured under the guise of smoking marijuana.  They brutally beat Acosta with tree limbs, knocking him unconscious. They bound Acosta’s hands and feet, wrapped an article of clothing around his mouth to prevent him from making noise and summoned other MS-13 members, including Alexi Saenz and Jairo Saenz, who arrived together.  The MS-13 members loaded Acosta into the trunk of the Saenz brothers’ car, and drove to a more secluded area in Brentwood near the abandoned Pilgrim State Psychiatric Hospital.  At the direction of Alexi Saenz, the MS-13 members removed Acosta, who was still alive, from the trunk and carried him deeper into the woods where they took turns hacking him to death with a machete.  The murder was supervised by the Saenz brothers.  The MS-13 members then buried Acosta’s body in a shallow grave. 

    Acosta’s body was discovered by law enforcement nearly five months later, on September 16, 2016, during a search for another MS-13 victim.  His cause of death was homicidal violence, including sharp and blunt force injuries to his head and torso.

    July 18, 2016 Attempted Murders of John Doe #1 and John Doe #2

    On July 18, 2016, during a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Alexi Saenz instructed the group to hunt for rival gang members who had been disrespectful to the MS-13, in order to attack and kill them.

    Later that evening, Jairo Saenz and other members of the MS-13, who were driving around Brentwood armed with firearms and a machete, spotted a group of men on Apple Street.  Believing these men to be members of a rival gang, three MS-13 members got out of the car driven by Jairo Saenz and attacked the group, firing rounds from two different guns, and then using a machete to hack at one of the men who had fallen to the ground.

    Two individuals were injured as a result of this attack.  John Doe #1 was struck with a bullet, but survived.  John Doe #2 was attacked with a machete, and was permanently disfigured.

    August 10, 2016 Attempted Murders of Suspected Rival Gang Members

    In 2016, members of the MS-13 were engaged in a series of disputes with members of the Goon Squad, a rival gang in Brentwood. 

    On August 10, 2016, Alexi Saenz and another MS-13 member drove through the neighborhood around Lukens Avenue in Brentwood, and spotted several men who they believed were members of the Goon Squad.  They then rallied other members of the Sailors clique, including Jairo Saenz, to come kill the rivals. 

    The MS-13 members divided into two vehicles and drove towards the house where the suspected Goon Squad members had been spotted. The Saenz brothers’ car kept watch for the police, while two other MS-13 members, each armed with a gun, approached the group of suspected rivals and fired numerous shots in their direction. No one was hit, although a stray bullet entered a neighbor’s house and struck the headboard of a bed in which the neighbor was sleeping.

    September 5, 2016 Murder of Marcus Bohannon

    On September 4, 2016, after a Sailors clique meeting at the Saenz brothers’ house in Central Islip, Jairo Saenz, Alexi Saenz and other MS-13 members went out hunting for rival gang members to kill.

    The MS-13 members separated into several cars and drove around Central Islip and Brentwood, until Alexi Saenz’s group spotted 27-year old Marcus Bohannon walking along Lowell Avenue in Central Islip in the early morning hours of September 5.  Suspecting that Bohannon was a member of the rival Bloods gang, two MS-13 members, carrying firearms, got out of the vehicle, approached him and started shooting.  Bohannon was struck nine times, including in his head, neck, and chest, and died from his wounds.

    September 12, 2016 Arson

    During the summer of 2016, Sailors clique members of the MS-13 were regularly having altercations with local gang members based in a neighborhood on Freeman Avenue in Brentwood.

    On September 12, 2016, the MS-13 members retaliated by setting fire to a car parked in the driveway of one of the houses in that rival gang neighborhood.  Alexi Saenz directed other gang members to purchase gasoline and carry out the arson, while he drove around watching for police. Jairo Saenz drove the other MS-13 gang members to that house, where they poured gasoline on a car parked in the driveway, and set it on fire.  The car exploded and set another parked car on fire.   

    September 13, 2016 Murders of Kayla Cuevas and Nisa Mickens

    On September 13, 2016, Sailors clique members brutally murdered 15-year-old Nisa Mickens and 16-year-old Kayla Cuevas, both students at Brentwood High School.

    In the months leading up to the murders, Cuevas was involved in a series of disputes with members and associates of the MS-13.  Approximately one week before the murders, these disputes escalated when Cuevas and several friends were involved in an altercation with MS-13 members at Brentwood High School.  After that incident, the MS-13 members vowed to seek revenge against Cuevas.

    On the evening of September 13, 2016, the Saenz brothers and other members of the Sailors clique of the MS-13 were driving in separate cars around Brentwood in search of rival gang members to attack and kill.  One group of MS-13 members spotted Cuevas and Mickens walking down residential Stahley Street.  Recognizing Cuevas, they called the Saenz brothers and were granted permission to kill the girls.  Several MS-13 members then chased down and attacked both Cuevas and Mickens, wielding baseball bats and a machete, striking each of the girls numerous times in their heads and bodies, while the Saenz brothers’ car drove around watching for police.  After the murders, the group retreated to the Saenz brothers’ home in Central Islip, where they changed clothes and hid the weapons.   

    Mickens, whose body was discovered later that evening on Stahley Street, not far from Cuevas’s home, sustained significant sharp force trauma to her face and blunt force trauma to her head.  Cuevas, whose body was discovered the following day behind a house adjacent to where Mickens’s body was found, sustained significant blunt force trauma to her head and body and multiple lacerations.

    October 10, 2016 Murder of Javier Castillo

    In October 2016, the MS-13 targeted 15-year-old Javier Castillo because he was believed to be a member of the 18th Street gang, one of MS-13’s principal rivals. 

    On October 10, 2016, Jairo Saenz and other members of the Sailors clique convinced Castillo, who lived in Central Islip, to drive with them to Freeport – approximately 30 miles away – to smoke marijuana.  Once there, they met Alexi Saenz and other Sailors clique members.  The group then lured Castillo to an isolated marsh area in Cow Meadow Park, where they attacked him, taking turns hacking him to death with a machete. 

    Afterwards, the MS-13 members dug a hole and buried Castillo’s body, which was not recovered until one year later, in late October 2017.  Castillo was determined to have suffered multiple sharp force injuries to his head, neck, torso and extremities.

    October 13, 2016 Murder of Dewann Stacks

    On the evening of October 13, 2016, the Saenz brothers and other members of the Sailors clique of MS-13 were driving around Central Islip and Brentwood in search of rival gang members to attack and kill.

    That night, they spotted 34-year-old Dewann Stacks and, believing him to be a rival gang member, Alexi Saenz authorized his murder.  While Alexi Saenz drove around watching for police presence, Jairo Saenz drove three MS-13 members, armed with two machetes and a baseball bat, to attack Stacks.  The three armed MS-13 members got out of the car, and beat and hacked Stacks to death on American Boulevard, a residential street in Brentwood.  Stacks sustained severe sharp and blunt force trauma to his face and head, leaving his body nearly unrecognizable.

    January 30, 2017 Murder of Esteban Alvarado-Bonilla

    On the morning of January 30, 2017, Alexi Saenz and other members of the Sailors clique of MS-13 spotted 29-year-old Esteban Alvarado-Bonilla inside El Campesino Deli in Central Islip.  Alvarado-Bonilla was wearing a football jersey bearing the number “18,” which led the MS-13 to conclude that he was a member of a rival gang, and they plotted to kill him.

    After Alvarado-Bonilla was observed in the Deli, Jairo Saenz drove MS-13 members to get a mask and another vehicle, both of which would be used when committing the murder.  Alexi Saenz provided the clique’s 9-millimeter handgun for use in the murder.

    At approximately 10:30 a.m., a masked MS-13 member entered the deli, approached Alvarado-Bonilla from behind, and shot him multiple times, killing him.  One of the bullets pierced through Alvarado-Bonilla’s head and struck the chest of a female employee of the deli, who was standing directly in front of him.  The deli employee survived the gunshot wound.   

    Narcotics Trafficking Conspiracy

    For a year and a half, from approximately April 2016 through March 2017, in order to finance the illegal operations of the Sailors clique, the Saenz brothers obtained wholesale quantities of cocaine and marijuana, which they distributed to other Sailors clique members and associates for street-level sales in Brentwood and its surrounding areas.  After the sales, the profits were turned over to the Saenz brothers, for use in, among other things, purchasing firearms for use by clique members, wiring money to MS-13 leaders in El Salvador and buying additional narcotics for further distribution.     

    Today’s guilty plea is the latest achievement in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization.  The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States.  With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island.  Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults.  Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 70 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders.  These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.

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

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution, with the assistance of Paralegal Specialist Kerry Ucci and Automated Litigation Specialist Michael Compitello.

    The Defendant:

    JAIRO SAENZ (also known as “Funny”)
    Age: 28
    El Divisadero, Morazán, El Salvador; and Central Islip, New York

    E.D.N.Y. Docket No. 16-CR-403 (S-8)(GRB)

    MIL Security OSI

  • MIL-OSI Security: Member of Five-Nine Brims Street Gang Sentenced to Life in Prison for Retaliatory Gang Murder

    Source: US FBI

    Defendant Shot and Killed Victim in Broad Daylight in a Residential Brooklyn Neighborhood

    Earlier today, in federal court in Brooklyn, Marvin Pippins, also known as “Mukk,” was sentenced by United States District Judge Pamela K. Chen to life imprisonment for murdering a rival gang member by shooting at him six times.  Following a three-week trial in April 2023, Pippins was convicted by a federal jury of racketeering conspiracy, murder conspiracy, murder in-aid-of racketeering, drug conspiracy and related firearms charges.  Pippins was also sentenced today to a concurrent term of 30 years for racketeering conspiracy and to a consecutive term of five years in prison for unlawful possession of a firearm, among other things.

    Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

    “Marvin Pippins will deservedly spend the rest of his life in prison for this cold-blooded murder, undertaken in service of a years-long gang war,” stated Acting United States Attorney Pokorny. “Pippins committed predatory and deadly crimes on behalf of a violent street gang that, for years, polluted the streets with drugs, preyed on unsuspecting victims of financial fraud and subjected rivals and innocent civilians alike to acts of violence.  My Office is focused on dismantling violent criminal organizations, and today’s sentence should send a message that the most serious of crimes will be met with the most serious of consequences.”

    Ms. Pokorny expressed her appreciation to the New York City Police Department for their outstanding work on this investigation.

    “In 2015, Marvin Pippins, a 5-9 Brims gang member, ruthlessly murdered a rival associate in a twisted attempt to restore the gang’s honor and thwart future attacks,” stated FBI Assistant Director in Charge Dennehy.  “Pippins’ myriad of crimes strengthened the gang’s presence across Brooklyn and fueled persisting territorial disputes. May today’s lifelong sentence reflect the FBI’s renowned commitment to disrupting all criminal enterprises plaguing our city with violence and illicit substances.”

    Between 2012 and 2020, Pippins was a member of the 5-9 Brims—a violent set of the Bloods street gang, responsible for sophisticated fraud schemes, prolific narcotics trafficking and violent crimes, including gunpoint robberies, shootings and murders. This crew of 5-9 Brims was also known as “Breadgang.” Pippins and his fellow members operated principally in and around the Marlboro Houses in the Gravesend section of Brooklyn.   Pippins personally engaged in a broad array of criminal activity and earned a reputation as a “shooter” and as someone who generated money for the gang.  He participated in financial fraud on behalf of the gang, sold drugs and carried guns to protect the gang’s criminal rackets. Pippins was also convicted of several crimes related to the gang’s violent rivalry with “Real Ryte,” a Canarsie-based rival crew.  In September 2015, the defendant’s brother Melvin Pippins, also known as “Melly,” was murdered. The defendant and his fellow gang members blamed Real Ryte for the murder, and there was an “expectation” that members of the 5-9 Brims would retaliate against Real Ryte with violence. On December 19, 2015, Pippins murdered Sean Peart, a member of Real Ryte, while the victim was alone and unarmed in his parked car on Dean Street outside the Weeksville Gardens housing development.  Peart tried to speed away but crashed his car before succumbing to his injuries.  After the murder, Pippins bragged to fellow members and associates of the gang admitting that he “did boy dirty.”  In rap lyrics, the defendant described Peart’s murder in detail, including references to the victim “hanging out the window” and giving him “shot after shot.”

    The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States  Attorneys Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with assistance from Assistant United States Attorneys Nicholas J. Moscow and Drew G. Rolle.

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

    The Defendant:

    MARVIN PIPPINS (also known as “Mukk”)
    Age: 34
    Brooklyn, New York

    E.D.N.Y. Docket No. 19-CR-378 (PKC)

    MIL Security OSI

  • MIL-OSI Security: Global Cryptocurrency Exchange BitMEX Fined $100 Million for Violating Bank Secrecy Act

    Source: US FBI

    Company Willfully Flouted U.S. Anti-Money Laundering Laws to Boost Revenue

    Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced that HDR GLOBAL TRADING LTD., a/k/a “BITMEX”, was sentenced today to a fine of $100 million for violating the Bank Secrecy Act by willfully failing to establish, implement, and maintain an adequate anti-money laundering (“AML”) and know-your-customer (“KYC”) program.

    Attorney for the United States Matthew Podolsky said:  “Anti-money laundering and know-your-customer rules protect Americans from fraud, combat money laundering, and prevent the financing of terrorist activity.  It is critical that all financial institutions, including cryptocurrency exchanges, comply with these rules to protect our country’s economy and national security.  Today’s sentence sends a clear message that companies that willfully violate these rules and refuse to implement AML/KYC programs will face consequences.”   

    According to the allegations in the Information and other filings and statements made in court:

    Arthur Hayes, Benjamin Delo, and Samuel Reed founded BITMEX in or about 2014, and Gregory Dwyer became BITMEX’s first employee in 2015 and later its Head of Business Development.  BITMEX, which has long serviced and solicited business from U.S. traders and operated through U.S. offices, was required to register with the Commodity Futures Trading Commission (“CFTC”) and to establish and maintain an adequate AML program.  AML programs ensure that financial institutions, such as BITMEX, are not exploited for illicit purposes and serve to protect the integrity of the U.S. financial system and national security more broadly.

    BITMEX and its executives knew that because BITMEX served U.S. customers, it was required to implement an AML program that included a KYC component but chose to flaunt those requirements, requiring only that customers provide an email address to use BITMEX’s services.  Indeed, senior executives each knew that customers residing in the U.S. continued to access BITMEX’s trading platform through at least in or about 2018, and that BITMEX policies nominally in place to prevent such trading were toothless or easily overridden to serve BITMEX’s bottom line goal of obtaining revenue through the U.S. market without regard to U.S. criminal laws.  Corporate executives took affirmative steps purportedly designed to exempt BITMEX from the application of U.S. laws like AML and KYC requirements, despite knowing of BITMEX’s obligation to implement such programs by operating in the U.S.  As part of BITMEX’s willful evasion of U.S. AML laws, the company lied to a bank about the purpose and nature of a subsidiary to allow BITMEX to pump millions of dollars through the U.S. financial system.

    Hayes, Delo, and Reed, BITMEX’s three founders and top executives, and Dwyer, another top executive, all previously entered guilty pleas for violating the Bank Secrecy Act and were sentenced in 2022.  The corporation entered a guilty plea on July 10, 2024, and was sentenced today.

    *                *                *

    In addition to the fine, BITMEX was sentenced to two years’ probation.       

    Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Money Laundering Investigation Squad.

    The prosecution is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Jessica Greenwood and Thane Rehn are in charge of the prosecution. 

    MIL Security OSI

  • MIL-OSI Security: Medina and Cleveland Men Charged with Fraudulently Obtaining $4.2 Million in COVID Relief Funds

    Source: US FBI

    CLEVELAND – A federal grand jury in Cleveland returned a 13-count indictment charging two individuals for their alleged roles in a scheme to fraudulently obtain approximately $4.2 million in COVID-19 relief funds guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Joseph Oloyede, 61, of Medina, Ohio and Edward Oluwasanmi, 61, of Willoughby, Ohio are charged with conspiracy to commit wire fraud, wire fraud, and money laundering offenses.

    According to the indictment, from in or around April 2020, and continuing through on or about February 28, 2022, Oloyede and Oluwasanmi devised a scheme to defraud the SBA and financial institutions by obtaining COVID-19 relief funds from the SBA’s Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under false pretenses. The indictment states that Oloyede and Oluwasanmi submitted PPP and EIDL loan applications containing false information for entities under their control and submitted falsified tax and wage documents to support these applications. The indictment alleges that they obtained approximately $1.2 million in SBA funds for Oluwasanmi’s entities and $1.7 million for Oloyede’s entities. Oloyede is also alleged to have submitted falsified PPP and EIDL loan applications in the names of other co-conspirators and confederate borrowers and their businesses, obtaining approximately $1.3 through those applications, for a total of at least $4.2 million obtained through the fraud.

    An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

    This investigation was conducted by the U.S. Department of Transportation – OIG, as part of the Pandemic Response Accountability Committee Fraud Task Force, Cleveland FBI, and IRS – Criminal Investigation. This case is being prosecuted by Assistant U.S. Attorney Edward Brydle.

    MIL Security OSI

  • MIL-OSI United Kingdom: Greater Manchester to benefit from recent trade deals

    Source: United Kingdom – Executive Government & Departments

    News story

    Greater Manchester to benefit from recent trade deals

    Trade deals with India, US and the EU that have seen tariffs on key industries slashed are set to help drive growth in Greater Manchester.

    • Prime Minister to meet with the Mayor of Greater Manchester Andy Burham to discuss the benefits of the recent trade deals.
    • Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change.
    • The deals benefit the automotive sector that supports 15,000 jobs.

    Trade deals with India, US and the EU that have seen tariffs on key industries slashed are set to help drive growth in Greater Manchester. 
      
    Reductions in tariffs on automobile exports have provided security for 15,000 workers.   

    Opens up the region to greater investment to grow the economy, raise living standards and put more money into working people’s pockets – priorities of our Plan for Change. 

    Prime Minister Keir Starmer said: 

    The trade deals that we have closed delivers stability for the automotive sector in the region that employs 15,000 workers.

    It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.  

    These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across Greater Manchester.

    32,962 people employed in agriculture across the North West will also benefit from our trade deal with the EU. It will reduce checks and red tape, meaning produce grown and farmed in the region has easy access to the UK’s biggest trading partner. 

    British steel exports are also protected from new rules and restrictive tariffs from the EU, supporting 4,300 people working in the steel industry across the North West. 

    The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.   

    He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.   

    Business and Trade Secretary Jonathan Reynolds said:

    The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need. 

    We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in Manchester, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.

    India is a significant marker for the Northwest where over 900 business exported goods worth £412 million last year. 

    Home to iconic car companies such as Jaguar Land Rover and Bentley, this sector will benefit from measures that reduce automative tariffs from over 100% to 10% under a quota.

    This is in addition to the region welcoming investment from businesses in India with IndiGo, India’s biggest airline carrier choosing Manchester as its first ever European destination. 

    Manchester Airport Managing Director Chris Woodroofe said: 

    At Manchester Airport, our mission is to connect the North with the world, helping people visit new places, connecting businesses with key global markets, and welcoming tourists and investors to our region.  

    That is why I am proud that IndiGo – India’s biggest carrier – has chosen Manchester, alongside Amsterdam, as its first ever European destinations.   

    We know connectivity is a key enabler of trade and productivity. By providing direct access to the world’s fastest-growing major economy, this route will deliver a significant boost to the government’s economic growth mission and coincides perfectly with new of a new UK-India trade deal.

    In the same week as the agreement with India, we negotiated the first of its kind deal with the US to reduce tariffs on car exports. Both of these arrangements secure greater certainty for the sector, the 15,000 workers and their families, while also enhancing opportunities for manufacturing in the region to grow. 

    Manchester will also benefit from access to India’s growing telecommunications market and the commitment in our US deal to increase digital trade and access for the world leading industries in the city. 

    Just this week, the Prime Minister confirmed a new agreement with the European Union that will deliver on his core mission to grow the economy, create more jobs in South Yorkshire, raising living standards and put more money in people’s pockets.   

    At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Hull and East Yorkshire to benefit from recent trade deals

    Source: United Kingdom – Executive Government & Departments

    Press release

    Hull and East Yorkshire to benefit from recent trade deals

    Hull and East Yorkshire’s top job creators including the life sciences and auto industry are set to benefit from the UK’s new trade deals with India and the US that slashes tariffs and boosts access to the world’s fastest growing economy.

    • Prime Minister to meet with the Mayor of Hull and East Yorkshire Luke Campbell to discuss the benefits of his recent trade deals.
    • Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change.
    • Boost for top job creators including pharmaceuticals that employs almost 2,000 and the automotive industry that employs 3,000 people in the region.

    Hull and East Yorkshire’s top job creators including the life sciences and auto industry are set to benefit from the UK’s new trade deals with India and the US that slashes tariffs and boosts access to the world’s fastest growing economy. 

    The US deal negotiated by the Prime Minister deliver long term certainty for 3,000 people employed in the auto industry locally and almost 2,000 in pharmaceuticals. 

    It also will deliver opportunities for major job creators in the region such as Smith + Nephew and Advanced Wound Management to grow – the first priority of our Plan for Change. 

    Prime Minister Keir Starmer said:  

    The trade deals that we have closed delivers stability in the automotive and pharmaceuticals industry in Hull and East Yorkshire that employs 5,000 people. 

    It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.

    These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across Hull and East Yorkshire.

    Over 31,000 people employed in agriculture across the region will also benefit from our agreement with the EU. It will reduce checks and red tape, meaning regional specialties like crab, Yorkshire Pudding and cheeses will have easy access to the UK’s biggest trading market. 

    The agreement also protects British steel exports from new EU rules and restrictive, providing further security for 8,400 jobs in the steel industry across Yorkshire and the Humber. 

    The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.  

    He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.  

    Business and Trade Secretary Jonathan Reynolds said:

    The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need. 

    We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in East Yorkshire, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.

    Our increased trade with India will unlock opportunities for every region in the UK to access the world’s fastest growing major economy, including Hull and East Yorkshire. In the same week, we negotiated the first of its kind agreement with the US that will reduce car export tariffs from 27.5% to 10% – providing 3,000 workers in Hull and East Yorkshire with long-term security and certainty.  

    The agreement also secures the UK preferential access to the US market for pharmaceuticals in the case of new US tariffs in coming weeks, and we are working closely to get the best deal for our pharma industry that supports 2,000 jobs in Hull and East Yorkshire. 

    Just this week the Prime Minister acted in the national interest by confirming a new agreement with the EU that will deliver on our core mission to grow the economy, creating more jobs in Hull and East Yorkshire and putting more money in people’s pockets.  

    At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: West Yorkshire to benefit from recent trade deals

    Source: United Kingdom – Executive Government & Departments

    Press release

    West Yorkshire to benefit from recent trade deals

    The three trade deals that we have struck in three weeks will benefit manufacturing that employs nearly 10% of all people in West Yorkshire.

    • Prime Minister to meet with the Mayor of West Yorkshire Tracey Brabin to discuss the benefits of his recent trade deals.
    • Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change.
    • The deals benefit local manufacturing which employs nearly 10% of people in the region.

    The three trade deals that we have struck in three weeks will benefit manufacturing that employs nearly 10% of all people in West Yorkshire.  

    Reducing India’s tariffs on machinery, slashing tariffs on car exports in both deals and our agreement with the US to remove the 25% tariff on steel provides stability for the biggest employers in the region like Hitachi, Bombardier and Siemens.  

    This means greater job security for workers, stronger economic growth to create more jobs and higher living standards across West Yorkshire.  

    Prime Minister Keir Starmer said:

    The trade deals that we have closed delivers stability for manufacturing in West Yorkshire that employs 10% of people in the region. 

    It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.  

    These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve people’s lives across West Yorkshire.

    Over 31,000 people employed in agriculture across the region will also benefit from our agreement with the EU. It will reduce checks and red tape, meaning regional specialties like crab, Yorkshire Pudding and cheeses will face easy access to the UK’s biggest trading market. 

    The agreement also protects British steel exports from new EU rules and restrictive, providing further security for 8,400 jobs in the steel industry across Yorkshire and the Humber. 

    The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.   

    He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.   

    Business and Trade Secretary Jonathan Reynolds said:

    The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need. 

    We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in West Yorkshire, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.

    Our increased trade with India will unlock opportunities for every region in the UK to access the world’s fastest growing economy, including West Yorkshire. Aeroservices, a leading global player in the aviation industry headquartered in Leeds, has also praised the India trade deal, which will enable them to level up the office they opened in Bangalore back in 2022. 

    Under the Free Trade Deal that was concluded, India has agreed to reduce tariffs on products including machinery, enhancing the region’s renowned engineering sector.  

     Based on 2022 trade alone, India will cut tariffs worth over £400 million when the deal comes into force, which will more than double to around £900 million after 10 years.    

    Formed in 1824, Group Rhodes designs and manufactures advanced metal, heavy ceramic and composite forming machinery.

    Mark Ridgway, CEO of Group Rhodes, said:

    As a manufacturer of advanced metalforming machinery used in the forming and lightweighting of aircraft, India is a strong market for Group Rhodes and offers significant growth potential. 

    The recent UK-India trade deal not only sets the scene for reduced tariffs on machinery but also serves to both enhance our competitiveness as a UK exporter and reduce the complexity of trade with this fast-growing market.

    In another win for a historic part of the West Yorkshire economy, India has committed to reducing tariffs on UK textiles – that will give local firms access to India’s booming middle class.  

    In the same week, we negotiated the first of its kind agreement with the US that will reduce tariffs on UK car exports and remove tariffs on steel, protecting two key industries in the region that employ thousands of people.  

    The US deal also contains provisions to streamline custom rules on textiles and clothes made in West Yorkshire, making it easier for small and medium sized businesses to enter the US market.  

    Just this week, the Prime Minister confirmed a new agreement with the European Union that will deliver on his core mission to grow the economy, create more jobs in West Yorkshire, raising living standards and put more money in people’s pockets.   

    At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Lincolnshire to benefit from recent trade deals

    Source: United Kingdom – Executive Government & Departments

    Press release

    Lincolnshire to benefit from recent trade deals

    Manufacturing and farming in Greater Lincolnshire are set to benefit from the UK’s new trade deals with India, the US and EU.

    • Prime Minister to meet with the Mayor of Greater Lincolnshire Andrea Jenkyns
    • Comes as we’ve nailed three trade deals in as many weeks to deliver growth that is a priority for the Plan for Change
    • Delivers welcome boost and security for the manufacturing industry that employs 39,000 workers

    Manufacturing and farming in Greater Lincolnshire are set to benefit from the UK’s new trade deals with India, the US and EU.  

    The deals negotiated by the Prime Ministers deliver long-term certainty for 39,000 jobs in Greater Lincolnshire’s manufacturing sector, including 2,700 steel workers in Scunthorpe. 

    Our deal with the EU will benefit around 100,000 people (including in food retail) that are employed in the county’s food sector. It means less checks and red tape so that farmers and producers who grow food in Lincolnshire now have easy access to the EU, the UK’s biggest trading partners.  

    Prime Minister Keir Starmer said:   

    These trade deals that we have closed delivers stability for 39,000 workers employed in the manufacturing sector in Greater Lincolnshire. 

    It also will create opportunities for more seamless trade, attracting inward investment that will grow the local economy and make a difference to people’s lives.    

    These changes will be felt everywhere, whether it’s lower food prices at the checkout, more choice for consumers and higher living standards that will improve livelihoods across Greater Lincolnshire.

    The Prime Minister will tell the English Mayors and the Leaders from the Devolved Governments at a meeting of the Council of Nations and Regions in London today (Friday 23 May) that his trade deals with India, the United States and the EU will deliver economic growth that will improve people’s lives at home.      

    He will challenge those in attendance to drive economic growth in their local areas to deliver for working people.     

    Business and Trade Secretary Jonathan Reynolds said:

    The three landmark deals secured this month with the US, India, and the EU have shown this government is serious about striking the deals that our businesses want and need. 

    We are delivering billions for the UK economy and wages every year as part of our Plan for Change. For businesses in Greater Lincolnshire, these deals will mean stability and jobs protected as they seize new opportunities to sell to some of our biggest trading partners.

    Just weeks after he stepped into support the UK steel industry that was on the brink of collapse, the Prime Minister has negotiated the 25% tariff down to zero, meaning that UK steelmakers, like British Steel in Scunthorpe can carry on exporting to the US.   

    The UK exported £343 million in primary steel products to the US in 2024, so the deal agreed supports the viability of 40,000 jobs in the industry nationwide, including 2,700 workers in Scunthorpe and their families.  

    Lisa Coulson, British Steel’s Interim Chief Commercial Officer, said:  

    Europe is a strategically important market for our business, so we whole-heartedly welcome this agreement and the new working relationship between the UK and EU.  

    It will enable us to deliver more of the high-quality products synonymous with the British Steel name and support our drive to be one of the world’s leading manufacturers of steel.

    In the same week, the Prime Minister agreed a trade deal with India that could see cheaper prices and more choice on products including clothes, footwear, and food products. 

    From this position of strength, we also upheld our red lines on standards including in agriculture, meaning that produce farmed in Greater Lincolnshire has been protected.  

    At today’s meeting of the Council of Nations and Regions the Prime Minister will also lead discussions about spreading AI to help working people access the services that they need in their local areas.

    Updates to this page

    Published 23 May 2025

    MIL OSI United Kingdom

  • MIL-OSI Asia-Pac: Opening ceremony of “Kowloon Walled City: A Cinematic Journey” Movie Set Exhibition held today (with photos)

    Source: Hong Kong Government special administrative region

    The opening ceremony of the “Kowloon Walled City: A Cinematic Journey” Movie Set Exhibition, organised by the Cultural and Creative Industries Development Agency of the Culture, Sports and Tourism Bureau and financially supported by the Film Development Fund, was held at Kowloon Walled City Park today (May 23). The movie set exhibition will be open free of charge to the public from tomorrow (May 24), and will last for three years.
     
         The Deputy Chief Secretary for Administration, Mr Cheuk Wing-hing, expressed in his speech during the opening ceremony that the movie set exhibition, curated and built by Hong Kong’s film professionals, reappears in Kowloon Walled City Park. It is hoped that the exhibition, along with other attractions in the region of Kowloon City, will draw both local, Mainland and overseas visitors through different travelling routes in the region to experience the local culture and cuisine, boost consumption in the region, and generate economic benefits.
     
    Other officiating guests in the opening ceremony included the Deputy Financial Secretary, Mr Michael Wong; the Secretary for Culture, Sports and Tourism, Miss Rosanna Law; the Commissioner for Tourism, Mrs Angelina Cheung; the Chairman of Hong Kong Film Development Council, Dr Wilfred Wong; and the Chairman of Hong Kong Tourism Board, Dr Peter Lam.
     
    Following on the enthusiasm for the previous two exhibitions at Hong Kong International Airport and Kai Tak, the “Kowloon Walled City: A Cinematic Journey” Movie Set Exhibition is the largest of its kind and will last the longest. Created by the same team behind the Best Film at Hong Kong Film Awards, “Twilight of the Warriors: Walled In”, the film sets have been reconstructed on the original site of Kowloon Walled City, now Kowloon Walled City Park. There are more classic movie sets in this exhibition, with elements of local traditional craftsmanship and large-scale projection incorporated. Visitors will gain a unique immersive experience of the Walled City back in time, while being able to appreciate the ingenious creativity and dedication to exquisite craftsmanship of Hong Kong’s film professionals. Details of opening arrangements can be found on the Leisure and Cultural Services Department website (www.lcsd.gov.hk/en/parks/kwcp/common/attachment/exhibition_guide_english.pdf).

    MIL OSI Asia Pacific News