NewzIntel.com

Category: FBI

  • MIL-OSI Security: Beaumont Convenience Store Robbers Guilty of Killing Clerk with Firearm

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    BEAUMONT, Texas – Two men who robbed a Beaumont convenience store and killed the clerk last December have pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.

    Larry Nathaniel Hagan, 27, of Houston, pleaded guilty to possessing and discharging a firearm in furtherance of a crime of violence resulting in death before U.S. District Judge Marcia Crone on October 2, 2024.  Keandre Marquis Robinson, 20, of Beaumont, pleaded guilty to the same offense before Judge Crone on October 1, 2024.  

    According to information presented in court, on December 29, 2023, Robinson and Hagan were wearing masks and brandishing semi-automatic pistols when they entered the Kris Food Mart located on Gulf Street in Beaumont.  Robinson quickly forced the clerk behind the counter and demanded cash while Hagan guarded the front door.  Seconds later, Robinson shot the clerk two times in the chest, killing him.  Robinson grabbed cigarettes from behind the counter and fled with Hagan.  No cash was taken.

    Later that night, the Beaumont Police Department posted images from the robbery to social media and a tip identified Robinson.  Police detained Robinson about three hours after the robbery as he was leaving his residence just a few blocks from the store.  Robinson later confessed to his role in the robbery and killing but would not identify Hagan.

    Detectives searched Robinson’s phone and discovered text messages with Hagan related to the robbery.  The texts began on December 28 at 10:15 a.m. and ended a few minutes after the robbery. During the conversation, Robinson and Hagan planned to rob the store to “[g]et some money.” In one text, Robinson told Hagan that he would “knock [the clerk’s] top” [to eliminate any] “lose [sic] ends…”.  The conversation ended on December 29 at 10:07 p.m. (approximately 4 minutes after the shooting).  In that text, Hagan told Robinson to “[s]tay in the house for some days”. 

    Robinson was indicted by a federal grand jury on February 7, 2024.  Hagan, who was at large until April 24, 2024, when he was arrested in New Orleans by the U.S. Marshals Service, was added to the indictment by the federal grand jury on May 1, 2024. 

    Robinson and Hagan each face up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    This case was investigated by the Beaumont Police Department, the FBI, and the U.S. Marshals Service, and prosecuted by Assistant U.S. Attorney John B. Ross.

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    MIL Security OSI –

  • MIL-OSI Security: Long Beach Man Pleads Guilty to Participating in Smash-and-Grab Robbery at Beverly Hills Jeweler That Caused $2.6 Million in Losses

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    LOS ANGELES – A Long Beach man pleaded guilty today to a federal criminal charge for participating in the daylight smash-and-grab robbery of a Beverly Hills jewelry store in 2022 in which more than $2.6 million in merchandise was stolen – and which he later displayed on Instagram.

    Ladell Tharpe, 39, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act). 

    According to his plea agreement, on March 23, 2022, Tharpe, Deshon Bell, 22, of Long Beach, and Jimmy Lee Vernon III, 33, also of Long Beach, and other co-conspirators robbed a luxury jewelry store in Beverly Hills. Before, during, and after the robbery, Tharpe led the cars used to transport the robbers and the getaway vehicle to the location. Bell was one of the getaway drivers. Tharpe conducted surveillance and acted as the lookout for the co-conspirators. 

    Once they had arrived outside the jewelry store, some of the robbers – including Vernon – got out of one of the cars, entered the store and used heavy tools to smash the store’s display cases while employees and customers were present. 

    The thieves removed from the store’s display cases at least 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches, all of which was valued at approximately $2,674,600. The robbers then returned to the car in which Bell was waiting and then fled the scene.

    Tharpe posted images of large amounts of cash on Instagram after the robbery with the text “Robbery Gang.”

    United States District Judge George H. Wu scheduled a January 6, 2025, sentencing hearing for Tharpe, who will face a statutory maximum sentence of 20 years in federal prison. Tharpe has been in federal custody since March 2023. 

    Bell and Vernon each have pleaded guilty to one count of Hobbs Act robbery. Judge Wu on February 26 sentenced Bell to one year and one day in federal prison and ordered him to pay $2,674,600 in restitution. The sentencing hearing for Vernon, who has been in federal custody since September 2022, is scheduled for December 5.

    The FBI and the Beverly Hills Police Department investigated this matter.

    Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Former Executive at Irvine-Based Company That Marketed Faulty Stem Cell Products Sentenced to Three Years in Federal Prison

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    LOS ANGELES – The imprisoned founder and CEO of an Orange County-based company that marketed stem cell-based products linked to multiple hospitalizations was sentenced today to 36 months in federal prison – consecutive to his current prison sentence.

    John Warrington Kosolcharoen, 53, most recently of Rancho Santa Margarita, was sentenced by United States District Judge Otis D. Wright II, who also scheduled a December 3 restitution hearing in this case.

    Kosolcharoen pleaded guilty on August 26 to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in custody serving a sentence for a separate, unconnected conviction.

    “Exploiting the hopes of patients suffering from serious illnesses is not merely greedy, it’s cruel,” said United States Attorney Martin Estrada. “My office will continue to aggressively prosecute those who take advantage of victims’ fears and anxieties to line their pockets.” 

    “Misleading the public about the safety and effectiveness of purported cures and treatments is illegal,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to prosecute individuals who market potentially dangerous products for personal gain.” 

    Beginning in 2016, Kosolcharoen created two companies, the Irvine-based Liveyon LLC and the San Diego-based Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.”

    Kosolcharoen and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease, and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness.

    In recent years, the U.S. Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce.

    Kosolcharoen misled the FDA about Liveyon’s activities by directing Liveyon’s purchase orders to falsely state that the stem cell products were being sold “for research purposes only.” In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients, and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. According to FDA records, that inspection documented evidence of significant deviations from good manufacturing and tissue practices.

    FDA’s Office of Criminal Investigations; the FBI; Amtrak Office of Inspector General; Defense Criminal Investigative Service; the U.S. Department of Health and Human Services Office of Inspector General; the U.S. Department of Labor Employment Benefits Security Administration; and the California Department of Health Care Services investigated this matter.

    Assistant United States Attorneys Mark Aveis of the Major Frauds Section and David H. Chao of the General Crimes Section, Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Justice Department’s Consumer Protection Branch prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: Inmate Guilty of Assaulting Two Correctional Officers

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    CORPUS CHRISTI, Texas – A 31-year-old felon from Donna has been convicted of assaulting two correctional officers while housed at Coastal Bend Detention Center in Robstown, announced U.S. Attorney Alamdar S. Hamdani.

    U.S. District Judge David S. Morales has found Aaron Gutierrez guilty of two counts of assaulting or impeding a federal officer following a one-day bench trial that occurred Sept. 16. 

    On Aug. 25, 2023, Gutierrez and six other inmates escaped from a recreation area through an unlocked gate. They ran down a walkway to intercept another inmate belonging to a rival gang. Two correctional officers were escorting that inmate – who was in full restraints.

    The seven escaped inmates attacked the defenseless other inmate as well as the correctional officers who were attempting to protect him. As a result, both officers suffered injuries and were transported to the hospital for treatment. One required surgery. Authorities also transported the victim inmate to the hospital for treatment.

    Within a minute of the attack, multiple correctional officers converged on the attackers and restrained them.

    Gutierrez attempted to convince the court that while he intended to join the fight, he never got the chance because he was the last one to leave the recreation yard. However, testimony revealed that every inmate participated in the attack. Judge Morales did not believe defense claims and found him guilty as charged.

    Correctional officers at Coastal Bend Detention Center work on behalf of the U.S. Marshals Service (USMS) and are protected as federal officers when in the performance of their official duties. 

    Judge Morales will impose sentencing in January 2025. At that time, Gutierrez faces up to eight years in federal prison. He will remain in custody pending that hearing.

    The other six inmates involved in the attack had previously pleaded guilty. Raul Valdez, 49, San Antonio, received 24 months, while Corpus Christi residents Benito Aguirre, 43, John Steve Espinoza, 31, Joe Isaac Espinoza, 27, and Adalberto Pena, 32, each received 18 months. Emilio Salinas, 34, Edinburg, is set for sentencing Oct. 17.

    They all also remain in custody.

    The FBI conducted the investigation with assistance from the USMS. Assistant U.S. Attorney Joel Dunn prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Marshals New Orleans Task Force Concludes Fiscal Year 2024 Operations With Over 500 Arrests, 24 Missing Endangered Children Recovered Across Eastern District Of Louisiana

    Source: US Marshals Service

    New Orleans, LA – The U.S. Marshals Service (USMS) Eastern District of Louisiana New Orleans Task Force conducted multiple violent fugitive and sex offender fugitive operations during fiscal year (FY) 2024 (Oct. 1, 2023—Sept. 30, 2024) along with several USMS Missing Endangered Children operations. The task force also participated in the FBI New Orleans Field Office’s Operation Clean House. The USMS New Orleans Task Force fugitive operations included Boo Dat, New Orleans Saints and Sinners, and Baseline. The fugitives arrested by the task force included 107 persons arrested on murder related offenses, 41 suspects arrested on rape/sex assault related cases, nine individuals for kidnapping, 41 persons for robbery, 100 individuals for assault/battery, 32 for sex offender registration violations, and 20 suspects on felony narcotics offenses. In total 531 fugitives were arrested and over 150 firearms were recovered during FY 2024 as a direct result of USMS New Orleans Task Force investigations across E/LA. The USMS New Orleans Task Force also worked 95 collateral lead requests from USMS offices outside of the Eastern District of Louisiana (E/LA).  

    Missing Child Unit (MCU) operations Fresh Start, Crawfish Boil, and other MCU work done during FY 2024 resulted in the recovery of 24 missing/endangered children, with five persons arrested related to recoveries.

    Crimestoppers of Greater New Orleans (GNO) provided support for several of the arrests made during the year and helped to sponsor Operation Boo Dat with a fugitive photo spread sent out to New Orleans metro area media outlets.

    Highlights of FY 2024 cases worked across E/LA include: 

    • In Tangipahoa Parish two children, 3 and 6, were abducted allegedly abducted by Daniel Callihan. Callihan is believed to have murdered the children’s mother and kidnapped the children from her residence before fleeing the state. USMS along with FBI, state police, and Tangipahoa Parish Sheriff’s Office started a manhunt in attempts to locate/apprehend Callihan. USMS E/LA was able to identify Callihan’s whereabouts in Jackson, Mississippi, and a collateral lead request was sent by the USMS New Orleans Task Force to the USMS Gulf Coast Regional Fugitive Task Force and USMS S/MS Jackson Office. Members of the GCRFTF observed Callihan near an abandoned house on Boozier Drive in Jackson. As members of the GCRFTF approached the house, Callihan ran from the house and was taken into custody. Members of the GCRFTF located a hole on the back side of the house where both missing girls were located, one of whom was deceased.
    • A teen girl was one of several runaway juveniles associating in a suspected human trafficking ring orchestrated by local gangs in the greater New Orleans metro. During the investigation, another teen girl was also identified as a missing/endangered runaway. USMS, along with Homeland Security Investigations, the National Center for Missing and Exploited Children, the Jefferson Parish Sheriff’s Office, the Kenner Police Department and the NOPD Special Victims Division – Child Abuse Unit began working these cases together and identified two additional missing juveniles.   All four girls were believed to be involved in a sex trafficking and prostitution ring. During the course of the investigation, the four girls were recovered, one arrest was made on scene and two men were detained by Immigration and Customs Enforcement pending deportation. By the end of the investigation another arrest was made of a man charged with raping one of the juveniles and the individual responsible for setting up the juveniles’ appointments for sex was deported.
    • A teen girl was recovered after running away from her foster parent in Ouachita Parish.  She was alleged to have been a previous victim of sex trafficking and sexual assault/rape. USMS, along with HIS, located her in New Orleans and recovered her. During an interview with the teen, she disclosed that a high school teacher in New Orleans picked her up from Vicksburg, Mississippi, and transported her to New Orleans approximately one week prior to her recovery. HSI after a several months investigation obtained an E/LA federal arrest warrant for Aaron Johnson for transportation of a minor with intent to engage in prostitution and coercion or enticement of a minor to engage in prostitution. The USMS New Orleans Task Force with HSI located Johnson at a New Orleans East apartment complex and arrested him on the warrant Aug. 15.  At the time of his arrest, Johnson was working as a teacher at a local New Orleans high school.
    • Ernest Cortney Dixon III was arrested May 22 for an alleged rape that occurred in May 2024 in the French Quarter of New Orleans.  Dixon is alleged to have gone into a French Quarter business with a firearm and raped an adult female employee of that business.  At the time of the alleged rape, he was already wanted on an April 2024 NOPD warrant for domestic violence assault with a firearm stemming from an incident where he was alleged to have fired a handgun at an ex-girlfriend.  During Dixon’s arrest at a French Quarter business, the USMS New Orleans Task Force recovered a loaded stolen firearm alleged to have belonged to Dixon.
    • Wayne D. Bennett was arrested Sept. 23 by USMS Northern District of Florida and USMS Florida Caribbean Regional Fugitive Task Force in Altha, Florida.  Investigators with the USMS New Orleans Task Force and Terrebonne Parish Sheriff’s Office tracked Bennett to the Altha area before sending a request to the USMS FCRFTF, who were able to locate and arrest him.  Bennett was wanted by the TPSO for first-degree rape, third-degree rape, five counts of trafficking of children for sexual purposes and three counts of indecent behavior with a juvenile.
    • Marrio Haynes was arrested Feb. 28 on a St. Tammany Parish Sheriff’s Office warrant for second-degree murder.  On Dec. 26, 2023, Haynes allegedly murdered a Lacombe man at a gas station using an AR-15 style rifle.  Later that night officers located his vehicle and arrested his girlfriend in connection with the murder, but Haynes was able to flee on foot avoiding arrest. He went on the run and was featured in multiple Crimestoppers GNO news reports. After a two-month investigation he was arrested by the USMS New Orleans Task Force at a home in Kentwood.  His girlfriend, who was present at the residence, was rearrested for harboring a fugitive during his arrest.
    • Fugitives Davonn Davis and Carlos Taylor were arrested Sept. 26 in Baton Rouge by the USMS Middle District of Louisiana Fugitive Task Force.   Davis was wanted on a NOPD charge of second-degree murder in connection with a shooting outside of The Shamrock Bar in New Orleans.  Taylor escaped from the Orleans Juvenile Justice Center, and then is alleged to have carjacked a woman, almost running her over.  He was featured across the state of Louisiana in news outlets as a dangerous fugitive with a previous violent history.   He and Davis were located together in Baton Rouge where Taylor initially attempted to flee on foot.
    • Leon Ruffin was arrested Feb. 27 on a JPSO warrant for escape. During the escape Ruffin assaulted a JPSO deputy during a medical transport and stole her police vehicle. Ruffin was awaiting trial on a murder related charge.  He was tracked by the USMS New Orleans Task Force to a motel in New Orleans East and arrested. 

    “The U.S. Marshals Service New Orleans Task Force successfully apprehended over 500 fugitives and recovered 24 missing and endangered children in 2024,” said Enix Smith III, U.S. Marshal for the Eastern District of Louisiana. “These significant accomplishments underscore the critical importance of vigilance and collaboration between law enforcement and the community.  Together, we can create a safer environment where justice is upheld, and our neighborhoods can thrive.”      

    The USMS New Orleans Task Force is sponsored by USMS E/LA and includes the following law enforcement agencies: Homeland Security Investigations, Jefferson Parish Sheriff’s Office, Kenner Police Department, LA Army National Guard Counter Drug Program, LA Probation and Parole, LA State Police, New Orleans Police Department, Orleans Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, St. Charles Parish Sheriff’s Office, St. Tammany Parish Sheriff’s Office, Terrebonne Parish Sheriff’s Office, U.S. Border Patrol, and U.S. Immigration and Customs Enforcement. The task force also frequently works with the local ATF, DEA, and FBI field offices.   

    Any information about wanted felony fugitives can be provided to the U.S. Marshals Service at (504) 589-6872 or via email at usms.wanted@usdoj.gov.  Crimestoppers GNO may also be contacted with tips at (504) 822-1111.

    MIL Security OSI –

  • MIL-OSI Security: Canonsburg Resident Indicted on 11 Counts Involving Sexual Exploitation of Minors

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    PITTSBURGH, Pa. – A resident of Canonsburg, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal laws regarding the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today.

    The 11-count Indictment named Justin A. Darby, 36, as the sole defendant.

    According to the Indictment, Darby received and attempted to receive material involving the sexual exploitation of a minor on five separate occasions during September and October of 2021, as well as on one occasion in February 2024. Darby is also alleged to have distributed such material on one occasion in September 2021. The Indictment further alleges that, from September 20, 2021, through October 29, 2021, Darby accessed with intent to view material involving the sexual exploitation of minors, and that, on February 6, 2024, Darby induced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Additionally, Darby is charged with altering, destroying, concealing, or covering up records and documents associated with a messaging application on his cellular telephone on two separate dates.

    The law provides for a maximum total sentence of up to 30 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Darby was ordered to be detained.

    Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the Indictment.

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

    An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
     

    MIL Security OSI –

  • MIL-OSI Security: Indiana Seniors Lose Nearly 38-Millon-Dollars to Fraud

    Source: Federal Bureau of Investigation (FBI) State Crime News

    INDIANAPOLIS, IN—September 29, 2024 – A recent FBI report shows that Indiana seniors lost $37,812,966 to elder fraud schemes in 2023. Indiana ranked 25th on the FBI’s list of 57 scammed states and U.S. territories.

    “Elder fraud schemes exploit the trust and goodwill of older Americans, preying on their vulnerabilities. Common scams include lottery scams, romance scams, and phishing schemes that can lead to significant financial losses,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Fraudsters constantly evolve their tactics so staying informed about the latest scams through events such as this workshop can help protect seniors.”

    On October 8, 2024, the Indianapolis FBI Citizens Academy Alumni Association (FBIICAAA) will present—AI Isn’t Sci-Fi: Free Fraud Workshop and Luncheon – a community outreach and education event to help curb fraud in Indiana.

    “Elder fraud is on the rise, impacting our communities, neighbors, and families. This is one of our organization’s main community outreach priorities for 2024,” said Scott Hainey, FBIICAAA president. “Our goal for this event is to help educate and empower older adults in Central Indiana and their families on how to prevent becoming a victim to a fraud scheme.”

    The program’s keynote presenters will be Christopher Knight, forensic accountant with the FBI Indianapolis Field Office, a renowned expert in elder fraud; and Scott Barnhart, director and chief council of consumer protection with the Office of the Indiana Attorney General. A panel of experts representing the FBI, Indiana Attorney General’s Office, Secretary of State Office, Medicaid, and the IRS will address audience questions.

    Online registration for this free local workshop and luncheon is open until, Tuesday, October 1, 2024, or by phone 317-731-2289. The workshop will be held at Emmanual Church located at 1640 W. Stones Crossing Road, Greenwood, Indianapolis, 46143.

    AI Isn’t Sci-Fi: Free Fraud Workshop and Luncheon is presented by the FBI Indianapolis Citizens Academy Alumni Association; a nonprofit organization separate and apart from the FBI. Workshop partners included Alpha Kappa Alpha Sorority Incorporated Alpha Mu Omega Chapter, Indiana Council Against Senior Exploitation (INCASE), Emmanuel Church, and Indiana Real Estate Experts.

    MIL Security OSI –

  • MIL-OSI Security: Navy Sailor Sentenced to 10 Years in Federal Prison for Attempting to Entice and Meet a 13-Year-Old Child to Engage in Sexual Activity

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Michael Buck Brockway (40, Jacksonville) to 10 years in federal prison for using the internet and his cellphone to attempt to entice a 13-year-old child to engage in sexual activity. Brockway was also ordered to serve a 10-year term of supervised release, pay $48,000 in restitution to child victims, and register as a sex offender. Brockway was arrested on July 28, 2023, and has been detained since that date.

    According to court documents, on July 17, 2023, an agent with the Naval Criminal Investigative Service (NCIS), posing as a 13-year-old child, began an undercover investigation designed to identify individuals who were seeking to meet children in person for sexual activity. The undercover agent, acting as the “child,” began an online conversation on a particular social media application (app) with user “Telly_Rider,” who was later identified as Brockway. From that day, continuing through July 28, 2023, Brockway and the “child” engaged in numerous sexually explicit conversations using two different social media apps and text messaging. During these online conversations, Brockway confirmed that the “child” was 13 years old, inquired about the “child’s” sexual experience, and asked if the “child” wanted to meet him in person for sex.

    On July 27, 2023, Brockway asked the “child” if “she” was alone for the next few days, and he confirmed that the “child” was living at a particular apartment complex in Jacksonville. Brockway sent the “child” explicit videos of himself that he produced while on duty as a sailor onboard a U.S. Navy ship docked at Naval Station Mayport. The following day, Brockway drove into the apartment complex where the “child” purportedly lived, then over to a nearby restaurant where the “child” agreed to meet him. Brockway exited his car, entered the restaurant to meet the “child,” and was arrested by detectives from the Jacksonville Sheriff’s Office. During a search incident to his arrest, Brockway’s cellphone and three condoms were found in his pockets. A search of Brockway’s car revealed a container of personal lubricant, an unopened bottle of vodka, and a sex toy. A search of Brockway’s cellphone revealed numerous photos and videos that depicted children being sexually abused.      

    This case was investigated by the Jacksonville Sheriff’s Office, the Naval Criminal Investigative Service, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

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

    MIL Security OSI –

  • MIL-OSI Security: Jacksonville Armed Drug Trafficker Sentenced to More Than Eight Years in Federal Prison After High-Speed Chase

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Jacksonville, Florida – U.S. District Judge Wendy W. Berger today sentenced Sedrick Williams, Jr. (25, Jacksonville) to 8 years and 4 months in federal prison for possession with the intent to distribute 5 grams or more of methamphetamine. Williams entered a guilty plea on June 25, 2024.

    According to court documents, detectives with the Jacksonville Sheriff’s Office (JSO) were patrolling the area of Broadway Street and Garfield Street in Jacksonville in reference to an ongoing investigation. The detectives observed Williams driving a vehicle and committing multiple traffic violations, including running a red light. When detectives activated their emergency equipment to conduct a traffic stop, Williams led JSO on a high-speed chase that continued along multiple streets. During the chase, Williams drove into oncoming traffic, forcing vehicles and pedestrians off the road. Williams made multiple turns attempting to flee before crashing in a ditch, then attempted to flee on foot, but was apprehended after a short distance. Inside Williams’s vehicle, JSO detectives recovered multiple bags of narcotics, including fentanyl, crack cocaine, and methamphetamine. Additionally, detectives found a loaded 9mm handgun. Detectives learned the firearm was reported stolen from Jacksonville in 2022. At the time of the offense, Williams was a convicted felon and, therefore, is prohibited from possessing firearms or ammunition under federal law. 

    This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Aakash Singh.

    This case is part of the Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI USA: Sixty-Eight Defendants Charged in Indictment of Dozens of Members and Associates of California White Supremacist Gang

    Source: US State of Vermont

    Federal and local law enforcement today arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley, California-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs — including fentanyl — illegal firearms possession, and COVID-19 benefits and loan fraud.

    “The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”

    The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.

    The defendants arrested today are expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.

    During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.

    “The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said U.S. Attorney Martin Estrada for the Central District of California. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”

    “This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”

    “The San Fernando Valley Peckerwoods, the Aryan Brotherhood, and their associates are fused by one thing: hatred,” said Special Agent in Charge Matthew Allen of the Drug Enforcement Administration (DEA) Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”

    According to the indictment that a grand jury returned on Sept. 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler”, and images of Nazi aircraft.

    Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.

    From at least December 2016 to September, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.

    To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, California, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, California, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.

    They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, California; Maria Anna James, 30, of Canyon Country, California; and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.

    In April 2021, Gluckman submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.

    “The proliferation of gang related organized crime deteriorates the core of our society,” said Chief Dominic Choi of the Los Angeles Police Department. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”          

    “When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Sheriff Jim Fryhoff of the Ventura County, California, Sheriff’s Office. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”

    If convicted, the defendants face a maximum penalty of life in prison.

    The FBI, DEA, Los Angeles Police Department, and Ventura County Sheriff’s Office are investigating the case. The Simi Valley Police Department; California Highway Patrol; Glendale Police Department; Burbank Police Department; Redondo Beach Police Department; Beverly Hills Police Department; Los Angeles County Sheriff’s Department; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Veterans Affairs Police; Department of Labor; Federal Bureau of Prisons; Los Angeles County Probation Department; Los Angeles County Department of Children and Family Services; Pasadena Fire Department; U.S. Customs and Border Protection; and IRS Criminal Investigation provided assistance in the investigation.

    Assistant U.S. Attorneys Reema M. El-Amamy, Jeremiah M. Levine, and Alexander Su for the Central District of California are prosecuting this case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit http://www.justice.gov/coronavirus.

    On Sept. 15, 2022, the Attorney General selected the U.S. Attorneys’ Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Justice Department established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at http://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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

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

    MIL OSI USA News –

  • MIL-OSI USA: DHS’ 2025 Homeland Threat Assessment Indicates the Threat of Domestic and Foreign Terrorism in the Homeland Remains High

    Source: US Federal Emergency Management Agency

    Headline: DHS’ 2025 Homeland Threat Assessment Indicates the Threat of Domestic and Foreign Terrorism in the Homeland Remains High

    “The Homeland Security Assessment provides an important overview of the dynamic and evolving threat landscape, illustrating just how varied and challenging the threats we confront are,” said Secretary of Homeland Security Alejandro N. Mayorkas. “It is because of the remarkable DHS workforce, and our close collaboration with our federal, state, local, tribal, territorial, and private sector partners, that we are able to meet the challenges and keep the American people safe and secure.” 

    Assessments from the 2025 HTA: 

    • Public Safety and Security: The terrorism threat environment in the Homeland is expected to remain high over the coming year. This is due to a confluence of factors, including potential violent extremist responses to domestic sociopolitical developments — particularly the 2024 election cycle — and international events like the ongoing Israel-Hamas conflict. Lone offenders and small groups continue to pose the greatest threat. Meanwhile, foreign terrorist organizations, including ISIS and al Qa’ida maintain their enduring intent to conduct or inspire attacks in the Homeland. 
    • Illegal Drugs: Illegal drugs smuggled into and sold in the United States by transnational and domestic criminal actors continue to pose a lethal threat to communities in the United States. DHS has surged resources to address this threat, seized more fentanyl in the last two fiscal years than in the prior five years combined, and is investing in new technology to increase detection capabilities. Thanks to these and other efforts, the number of overdose deaths have declined by more than 10 percent in the 12 months leading up to April 2024 – the largest drop in overdose deaths in recorded history. That said, fentanyl and other synthetic opioids remain the most lethal of drugs trafficked into the country and continue to pose a national security threat. Adulterated cocaine and methamphetamine also pose a threat. 
    • Influence Operations and Transnational Repression: We expect the Homeland will face threats to public safety from state actors using subversive tactics in an effort to stroke discord and undermine confidence in U.S. domestic institutions. Malign foreign actors seek to target ethnic and religious minorities, political dissidents, and journalists in the United States to silence and harass its critics abroad. 
    • Border and Immigration Security: Migrant encounters at our border have steadily declined since the beginning of 2024 and have declined even further since the issuance of the Presidential Proclamation and complementary Interim Final Rule (IFR) were announced on June 4 – decreasing more than 55% in the past four months. We nonetheless expect some individuals with criminal connections to seek to continue to exploit migrants. DHS remains acutely focused on identifying those who may present a threat to public safety or national security and stopping them from entering the United States. 
    • Critical Infrastructure Security: Domestic and foreign adversaries are expected to continue to target our critical infrastructure via prepositioning, cyber, and physical attacks. The People’s Republic of China (PRC), Russia, and Iran are expected to remain the most pressing foreign threats to our critical infrastructure.  Nation-states, criminal hacktivists, and financially motivated criminals will likely hone their techniques to disrupt U.S. services or to conduct espionage focused on gaining access to U.S. networks and critical infrastructure entities. We assess that domestic and foreign violent extremists will continue to call for physical attacks on critical infrastructure in furtherance of their ideological goals and, in response to international conflicts and crises. 
    • Economic Security: Our adversaries – including the PRC – will continue non-market policies and practices, economic espionage and coercive economic tools, and illicit acquisition of technologies and intellectual property to undercut U.S. and partner competitiveness. 

    Operational components and offices across the Department are involved in combatting threats and working alongside our federal, state, and local partners. Some examples of these efforts include:  

    • DHS conducts screening and vetting of individuals encountered at the border to identify national security or public safety threats and refers any individuals who are identified as posing a threat to public safety or national security to the appropriate law enforcement authority for detention, removal, and potential prosecution. DHS continually monitors available sources of intelligence and law enforcement information to identify new threats and public safety risks. If and when any new information emerges, DHS, including ICE and CBP, works closely with the FBI and other partners to take appropriate action. 
    • In addition to biometric and biographic screening and vetting of every individual encountered, U.S. Customs and Border Protection (CBP) has expanded information sharing agreements with international partners to enhance their ability to prevent, detect, and investigate trafficking and other crimes. CBP’s National Targeting Center continuously works to detect individuals and travelers that threaten our country’s security, while also building a network of partner nations committed to fighting global threats. 
    • DHS, through CBP and Homeland Security Investigations (HSI), has stopped more illicit fentanyl and 
      arrested more individuals for fentanyl-related crimes in the last two fiscal years than in the previous five 
      years combined. 
    • DHS is leading the federal effort to combat fentanyl internationally, through information-sharing, 
      multinational enforcement operations, and global cooperation with federal, state, and local 
      partners and stakeholder to disrupt fentanyl networks within our communities. 
    • DHS has arrested over 3,600 subjects connected to fentanyl-seizure events, which directly 
      degrades the organized criminal networks responsible for bringing fentanyl into our communities, seized over 2,200 pill presses, and seized over 27,000 pounds of illicit fentanyl to stop it at our 
      borders and in our communities before it can hurt the American public. 

    MIL OSI USA News –

  • MIL-OSI USA: Welch, Hawley Introduce Bipartisan Bill Increasing Public Transparency and Accountability into Corporate Criminal Settlement Agreements

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)

    WASHINGTON, D.C. – U.S. Senators Peter Welch (D-Vt.) and Josh Hawley (R-Mo.) introduced the Hold Corporate Criminals Accountable Act, bipartisan legislation to increase public transparency and accountability by allowing courts to consider the public interest in approving corporate criminal settlement agreements that don’t involve a conviction. The bipartisan bill will also provide more prosecutorial tools to combat corporate criminal actors by extending statutes of limitations and requiring more cooperation by wrongdoers in order to receive a reduction in punishment. 
    In recent years, the country has seen a rise in deferred and non-prosecution agreements—which allow corporations to resolve criminal liability without a conviction in exchange for fines or other smaller punishments. Yet, the FBI estimates the annual cost of corporate crime —$300 billion—is 20 times greater than the cost of street crime. At least 40 Fortune 500 companies have received a deferred and non-prosecution agreement, including recently Citigroup, Boeing, and Monsanto. 
    “All wrongdoers should be held accountable for their actions—plain and simple. Yet federal prosecution of white-collar crimes has fallen to record lows in recent years, making it easier for ultra-wealthy executives to game the system and avoid responsibility when they hurt hardworking people. It’s also making it harder for the victims of corporate crimes to get justice, and that’s unacceptable,” said Senator Welch. “Our bipartisan bill will ensure a level playing field and provide needed accountability.”  
    “More and more big businesses are receiving a slap on the wrist by the DOJ for corporate misbehavior, allowing corporations to skirt litigation fees while incentivizing repeated offenses. This bipartisan legislation has the teeth to hold Corporate America accountable and would crack down on DOJ’s sweetheart deals,” said Senator Hawley. 
    In order to ensure public accountability for corporate wrongdoing in our judicial system, the Hold Corporate Criminals Accountable Act would: 

    Require more judicial scrutiny of deferred or non-prosecution agreements to ensure these agreements are in the public’s interest. 
    Require corporations placed in one of these agreements or on probation to use effective compliance monitoring instead of skirting monitoring, as in the case of Boeing’s recent agreement. 
    Require federal agencies keep a public list and copy of these deferred and non-prosecution agreements they enter so the public can see the contents of them. 
    Extend all statutes of limitations related to corporate criminal offenses by five years to provide prosecutors more time to bring complex cases. 
    Redefine substantial assistance for a sentencing reduction in the context of corporate criminal offenders to require actual assistance in identifying and prosecuting individual bad actors within a corporation. 

    The Hold Corporate Criminals Accountable Act is endorsed by Professor Brad Garrett, author of Too Big to Jail. 
    Learn more about the Hold Corporate Criminals Accountable Act. 
    Read the full text of the bill. 

    MIL OSI USA News –

  • MIL-OSI: Precision Drilling Corporation 2024 Third Quarter Results Conference Call and Webcast

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Oct. 02, 2024 (GLOBE NEWSWIRE) — Precision Drilling Corporation (Precision) intends to release its 2024 third quarter results after the market closes on Tuesday, October 29, 2024, and has scheduled a conference call to begin at 11:00 a.m. MT (1:00 p.m. ET) on the next day, Wednesday, October 30, 2024.

    To participate in the conference call please register at the URL link below. Once registered, you will receive a dial-in number and a unique PIN, which will allow you to ask questions.

    https://register.vevent.com/register/BI4cb3a3db88084e66ad528ebb2bdb81e4

    The call will also be webcast and can be accessed through the link below. A replay of the webcast call will be available on Precision’s website for 12 months.

    https://edge.media-server.com/mmc/p/mov2xb4k

    About Precision

    Precision is a leading provider of safe and environmentally responsible High Performance, High Value services to the energy industry, offering customers access to an extensive fleet of Super Series drilling rigs. Precision has commercialized an industry-leading digital technology portfolio known as Alpha™ that utilizes advanced automation software and analytics to generate efficient, predictable, and repeatable results for energy customers. Our drilling services are enhanced by our EverGreen™ suite of environmental solutions, which bolsters our commitment to reducing the environmental impact of our operations. Additionally, Precision offers well service rigs, camps and rental equipment all backed by a comprehensive mix of technical support services and skilled, experienced personnel.

    Precision is headquartered in Calgary, Alberta, Canada and is listed on the Toronto Stock Exchange under the trading symbol “PD” and on the New York Stock Exchange under the trading symbol “PDS”.

    Additional Information

    For more information about Precision, please visit our website at http://www.precisiondrilling.com or contact:

    Lavonne Zdunich, CPA, CA
    Vice President, Investor Relations
    403.716.4500

    800, 525 – 8th Avenue S.W.
    Calgary, Alberta, Canada T2P 1G1
    Website: http://www.precisiondrilling.com

    The MIL Network –

  • MIL-OSI USA: Addressing Escalation of Tensions in the Middle East

    Source: US State of New York

    Earlier today, Governor Kathy Hochul addressed public safety concerns following the recent escalation of tensions in The Middle East.

    VIDEO of the event is available on YouTube here and in TV quality (h.264, mp4) format here.

    AUDIO of the Governor’s remarks is available here.

    A rush transcript of the Governor’s remarks is available below:

    Before I take your questions today, I’d like to address an urgent public safety concern. As we all know, the Iranian regime launched a missile attack on Israeli civilians just yesterday evening. At the same time, a mass shooting occurred on the streets of Tel Aviv. The Israeli authorities classified this as a terror attack.

    And while I know those events are happening on the other side of the globe, here in New York, we are the largest Jewish population outside of Israel, and one of the largest Muslim and Arab populations in America. And so, these global events have a unique residence here with us. As Governor, my number one priority is public safety, and we have spent months preparing for this time of the year. We knew tensions would be high, particularly as we deal with the High Holy holidays, as well as the advent of the one year anniversary of October 7.

    So earlier this year, knowing these dates were coming, I directed my administration to start preparing to enhance our security; heightening our surveillance, making sure we have a visible presence, and yesterday afternoon, I asked for and received a confidential intelligence briefing with the Mayor of New York City with his head of counterintelligence as well, making sure that our teams are closely aligned and working together.

    We heard from representatives from NYPD and our State Division of Homeland Security and other law enforcement leaders. The most important takeaway from yesterday’s conversation and further briefings today is that there are no known threats to New Yorkers at this time. Again, there’s no known threats. I also conveyed this at a gathering of Jewish leaders to let them know that there are no known threats, but to make sure that the relationships are strong so they know we are there to be of assistance preemptively, and be there if anything should occur.

    We have to be prepared for every single scenario. And for that reason, I have directed our State Police Superintendent James to increase State Police patrols at at-risk areas: synagogues, yeshivas, community centers, mosques. You’ll also see increased law enforcement presence at all critical infrastructure hubs, including major transit centers.

    And now, we’re working closely to make sure that all populations are protected. We’re protecting not just — working with NYPD in New York City — but also we have to be aware of threats that could occur in Westchester, Long Island, and other populations outside of New York City. We’re also protecting the Muslim communities as well as the Jewish communities against hate crimes that could ensue.

    Just as we’ve seen a major spike in antisemitism this year, we’ve seen increased attacks on our Muslim neighbors as well. So, this includes enhanced monitoring of our social media and online sites, and recognizing that individuals can be radicalized by the toxic stew that is a slew of hate online, and we’ve seen the ill effects of that as well. Certainly, the individual that was radicalized online — a white supremacist. An 18-year-old white supremacist, who slaughtered 10 of my neighbors in Buffalo, would fit that category. And he was radicalized by the same online hate that led to the Tree of Life Synagogue shooting in Pittsburgh.

    So, with all this as a backdrop, we have increased our monitoring tools for social media, increased our State presence on the FBI Joint Terrorism Task Force, and right now we’re ensuring that we have all hands on deck to fight the rise in these crimes.

    The other aspect is parents worried about their students on college campuses, especially throughout the year in light of last spring, but also during the High Holy holidays. I want to be clear: every student in New York should be able to worship safely on their college campus. And before the semester even began, my teams have worked closely with campus leadership to ensure that they have safety and security plans that we have reviewed and signed off on. Yes, students have a first amendment right to protest, they also have a right to gather and celebrate the holidays without fear of harassment.

    So, as we also approach — not just the holidays and the holy days — as we approach October 7, I want to continue reminding New Yorkers we’re going to be vigilant, monitoring the situation. There will be many vigils, likely counter protests, and nothing is more important to me than keeping everyone safe, so we’re taking major steps at this time again, courting any other law enforcement individuals and community organizations to ensure their safety during this difficult time.

    MIL OSI USA News –

  • MIL-OSI USA: CFTC Charges Former CEO of Carbon Credit Project Developer with Fraud Involving Voluntary Carbon Credits

    Source: US Commodity Futures Trading Commission

    WASHINGTON, D.C. — The Commodity Futures Trading Commission today filed a complaint in the U.S. District Court for the Southern District of New York against Kenneth Newcombe of California, the former chief executive officer and majority shareholder of a Washington, D.C.-based carbon credit project developer, charging fraud and false, misleading, or inaccurate reports relating to voluntary carbon credits. The CFTC also issued orders filing and settling charges against Washington, D.C.-based CQC Impact Investors LLC (CQC) and against Jason Steele, CQC’s former chief operating officer. These are the first CFTC actions for fraud in the voluntary carbon credit market.

    “Last month, I highlighted the CFTC’s final guidance for designated contract markets that list derivatives on voluntary carbon credits as the underlying commodity as a critical step in support of the development of high-integrity voluntary carbon markets,” said Chairman Rostin Behnam. “Today’s actions show strong enforcement is another critical step in ensuring the integrity of these markets.”

    “With the first enforcement actions charging fraud in connection with the issuances and sales of voluntary carbon credits, the CFTC demonstrates its commitment to vigorously fight fraud in its markets, whether long-established or new and evolving, such as the carbon credit markets,” said Director of Enforcement Ian McGinley. “Today’s action also exemplifies the value the Division of Enforcement and the CFTC place in substantial cooperation in the division’s investigations and appropriate remediation, as reflected here in a reduction in penalty for CQC.”

    Newcombe Complaint

    The complaint against Newcombe alleges from at least 2019 to at least in or about Dec. 2023, Newcombe, while CEO and majority shareholder of a carbon credit project developer, engaged in a fraudulent scheme that involved reporting false and misleading information to at least one carbon credit registry and third-party reviewers, among others. The complaint alleges Newcombe did so in order to present a misleading impression of the quality of the project developer’s emissions-reduction projects to obtain carbon credits far beyond what the company was entitled to receive, and which the carbon credit project developer could and did sell to others.

    The CFTC seeks civil monetary penalties, disgorgement of ill-gotten gains, restitution, permanent trading and registrations bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA), as charged.

    CQC Order

    The CQC order finds from in or after 2019 to at least Dec. 2023, CQC engaged in a deceptive scheme relating to projects it developed purportedly intended to reduce carbon emissions, such as by installing more efficient cookstoves or LED light bulbs in sub-Saharan Africa, Asia, and Central America. Based on information CQC reported to at least one carbon credit registry and third-party reviewers, among others, CQC sought and received issuances of carbon credits that CQC could and did sell to other participants in the voluntary carbon credit market. As found in the order, CQC fraudulently reported false, misleading, and inaccurate information in connection with the verification and issuance of carbon credits, which resulted in the issuances of millions more carbon offset credits than CQC was entitled to receive. According to the order, CQC’s fraudulent conduct involved certain of the company’s former executives, supervisors, and operations and compliance personnel.

    The order requires CQC to pay a $1 million civil monetary penalty, cease and desist from violating the applicable provisions of the CEA and CFTC regulations, and comply with certain conditions and undertakings, including the cancelation or retirement of voluntary carbon credits sufficient to address the violative conduct. CQC admitted the findings of the order and acknowledged that its conduct violated the CEA and CFTC regulations.

    The order recognizes CQC’s substantial cooperation with the Division of Enforcement and CQC’s representations of its remediation, such as terminating, replacing or separating from individuals responsible for the violative conduct, and notes CQC’s substantial cooperation and appropriate remediation is further reflected in the form of a reduced civil monetary penalty.

    Jason Steele Order

    The Steele order finds, while COO of the project developer, he intentionally participated in the project developer’s providing false and misleading information to at least one carbon credit registry and third-party reviewers, among others, for the purpose of presenting a misleading impression of the quality of the cookstove projects, wrongfully increasing the number of carbon credits a project would produce. Steele admitted the findings of the order and acknowledged that his conduct violated the CEA and CFTC regulations.

    The order recognizes Steele entered into a formal cooperation agreement with the Division of Enforcement. 

    Parallel Criminal and Civil Actions

    Today, in separate actions, the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission announced filing parallel matters for related conduct.

    The Division of Enforcement thanks and acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the SEC. 

    The Division of Enforcement also thanks the Division’s Environmental Fraud Task Force.

    The Division of Enforcement staff members responsible for this case are Meredith Borner, Nicole Buseman, Jonathan G. Coppola, Trevor Kokal, Gates S. Hurand, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan.

    * * * * * * *

    Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382), file a tip or complaint online, or contact the Whistleblower Office. Whistleblowers may be eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the CFTC Customer Protection Fund, which is financed through monetary sanctions paid to the CFTC by violators of the CEA.

    The CFTC also notes its June 20, 2023 Whistleblower Office Alert seeking tips related to carbon market misconduct.

    MIL OSI USA News –

  • MIL-OSI USA: Lankford Issues Joint Statement with Bipartisan Task Forces for Combating Antisemitism on FBI Hate Crime Statistics Report

    US Senate News:

    Source: United States Senator for Oklahoma James Lankford
    OKLAHOMA CITY, OK — Senators James Lankford (R-OK) and Jacky Rosen (D-NV) along with Representatives Kathy Manning (NC-06) and Chris Smith (NJ-04), co-chairs of the Senate and House Bipartisan Task Forces for Combating Antisemitism, respectively, released the following statement in response to the Federal Bureau of Investigation’s (FBI) 2023 Hate Crime Statistics Report. The FBI data shows anti-Jewish hate crimes increased in 2023 by nearly 63 percent from 2022, which is the highest number recorded in almost three decades.
    “We are deeply alarmed by the dramatic increase in hate crimes targeting Jewish Americans over the past year, as noted in the FBI’s 2023 Hate Crimes Statistics Report,” said the Members. “With antisemitism skyrocketing across the United States following Hamas’s October 7 terrorist attack on Israel, a whole-of-government approach is needed to protect Jewish communities from violence and hate.”
    Anti-Jewish hate crimes rose from 1,122 to 1,832 incidents from 2022 to 2023. According to the FBI, a total of 16,009 law enforcement agencies, which represent 95.2 percent of the agencies enrolled in the hate crime data collection program, participated in hate crimes reporting for 2023.
    They continued: “As the co-chairs of the House and Senate Bipartisan Task Forces for Combating Antisemitism, we remain steadfast in our commitment to root out the scourge of antisemitism. We’ll continue working across party lines to ensure the federal government keeps Jewish Americans safe from discrimination.”
    Jewish Americans make up around two percent of the US population, yet antisemitic hate crimes accounted for 15.4 percent of all hate crimes reported by the FBI. Anti-Jewish incidents comprised a little over two-thirds of all religion-based hate crimes. 
    As co-chair of the Senate Bipartisan Taskforce for Countering Antisemitism, Lankford has been leading the fight against rising antisemitism. Lankford, along with the co-chairs of the Senate and House Bipartisan Task Forces, introduced a bill to take historic action to counter antisemitism in the United States by establishing a first-ever National Coordinator to Counter Antisemitism. In May, Lankford and Rosen sent a letter urging the Department of Education to designate a senior official to oversee efforts to combat antisemitism on college campuses. They also called on the Senate Health, Education, Labor, and Pensions Committee to hold a full hearing on rising antisemitism on college campuses.

    MIL OSI USA News –

  • MIL-OSI Security: Buckhannon Man Indicted on Child Pornography Charges

    Source: Federal Bureau of Investigation (FBI) State Crime News

    WHEELING, WEST VIRGINIA – David Walter McCauley has been indicted by a federal grand jury on child pornography charges, United States Attorney William Ihlenfeld announced.

    McCauley, age 66 of Buckhannon, West Virginia, is charged with two counts of production and one count of possession of child pornography. The indictment alleges that McCauley enticed a 17-year-old boy to engage in sexually explicit conduct for photo and video production. The indictment further charges McCauley with knowingly possessing illegal images on his computer.

    “As alleged, David McCauley produced child pornography involving a juvenile boy on multiple occasions,” said U.S. Attorney Ihlenfeld. “Those who prey upon and exploit our youth will be held accountable, no matter their status in the community.”

    McCauley faces at least 15 years and up to 30 years in prison for each of the production charges and up to 10 years on the possession charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant U.S. Attorney Kimberley Crockett is prosecuting the case on behalf of the government.

    The case was investigated by the Federal Bureau of Investigation, the Pittsburgh Police Department, and the Upshur County Sheriff’s Office.

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

    An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: FBI Philadelphia Highlights Cyber Safety during National Cybersecurity Awareness Month

    Source: Federal Bureau of Investigation (FBI) State Crime News

    October is National Cybersecurity Awareness Month and FBI Philadelphia wants to remind the public of important cyber safety tips to protect themselves all year long.

    National Cybersecurity Awareness Month is hosted every October by the Department of Homeland Security and the National Cyber Security Alliance. Agencies including the FBI have joined this initiative to raise awareness about cybersecurity, and provide tips the public can take to mitigate cybercrime and protect themselves and their systems.

    “Our daily lives occur online: from staying connected with family and friends to shopping, banking, and even working remotely,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “It it critical we all take steps to navigate the Internet safely and to protect ourselves from cyber criminals lurking behind a reused password, a misleading hyperlink, or an outdated operating system.”

    Protecting our digitally connected world is a priority for the FBI, but it is not something we can do alone. There are important steps everyone can take to protect themselves when navigating the online landscape.

    Below are some cyber safety tips anyone can implement:

    • Keep systems and software up to date and install a strong, reputable anti-virus program.
    • Be careful when connecting to a public Wi-Fi network and do not conduct any sensitive transactions, including purchases, when on a public network.
    • Create a strong and unique passphrase for each online account.
    • Set up multi-factor authentication on all accounts that allow it.
    • Examine the e-mail address in all correspondence and scrutinize website URLs before responding to a message or visiting a site
    • Don’t click on anything in unsolicited e-mails or text messages.
    • Be cautious about the information you share in online profiles and social media accounts. Sharing things like pet names, schools, and family members can give scammers the hints they need to guess your passwords or the answers to your account security questions.
    • Don’t send payments to unknown people or organizations that are seeking monetary support and urge immediate action.

    The Internet Crime Complaint Center, or IC3, is the FBI’s central hub for reporting cybercrimes. In addition to filing a complaint through IC3, you can view public service announcements and consumer alerts published by the FBI on the emerging and current cybercrime trends impacting the public.

    If you are the victim of a cyber-enabled crime or fraud, file a report with the Internet Crime Complaint Center (IC3) as soon as possible at ic3.gov.

    FBI Philadelphia can be reached at (215) 418-4000.

    MIL Security OSI –

  • MIL-OSI Security: Pittsburgh Felon Charged with Escape and Bank Robbery

    Source: Federal Bureau of Investigation (FBI) State Crime News

    PITTSBURGH, Pa. – A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of escape and bank robbery, United States Attorney Eric G. Olshan announced today.

    The two-count Indictment named John J. Flick, 58, as the sole defendant.

    According to the Indictment, on September 2, 2024, Flick left a halfway house in Pittsburgh, where he was serving out a previous sentence for a 2021 bank robbery. The Indictment further alleges that, on the following day, Flick robbed a bank in Dormont.

    The law provides for a maximum total sentence of up to 25 years in prison, a fine of up to $500,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.

    Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation, United States Marshals Service, and Allegheny County Police Department conducted the investigation leading to the Indictment.

    An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI USA: Russian Man Sentenced for Running an Illegal Money Transmitting Business

    Source: US State Government of Utah

    Feliks Medvedev, 43, of Buford, Georgia, was sentenced today to three years and 10 months in prison, followed by three years of supervised release, and ordered to pay a $10,000 fine for conducting an unlicensed money transmitting business which transferred over $150 million in Russian money. 

    According to the court documents and other information presented in court, Medvedev is a Russian citizen who resides in North Georgia. He registered eight companies in Georgia that were used to transmit more than $150 million in over 1,300 transactions. The companies were purportedly headquartered in Buford and Dacula, Georgia, but they did not have typical business expenses or employees. The money was used, in part, to purchase over $65 million in overseas gold bullion. Medvedev transferred millions of dollars overseas from multiple bank accounts in the United States.

    As part of the conspiracy, Medvedev worked with a Russian company and was directed by multiple Russian nationals at that company to make illegal transfers of funds. Subsequent to Medvedev’s indictment, on Sept. 14, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control, acting pursuant to Executive Order 14024, sanctioned two of Medvedev’s alleged co-conspirators: Russian national Alexey Chubarov and his company KSK Group. Earlier this year, on Feb. 13, Chubarov, KSK Group and Russian national Lev Solyannikov were separately indicted in the Northern District of Georgia for conspiring with Medvedev.

    Medvedev was convicted of the charges on Feb. 7, after he pleaded guilty.

    The FBI and the Department of Commerce’s Bureau of Industry and Security are investigating the case.

    Assistant U.S. Attorneys Christopher J. Huber and Norman L. Barnett for the Northern District of Georgia are prosecuting the case.

    This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

    MIL OSI USA News –

  • MIL-OSI USA: FBI Charges Chinese Nationals with Spying at Camp Grayling

    Source: United States House of Representatives – Congressman John Moolenaar (4th District of Michigan)

    Headline: FBI Charges Chinese Nationals with Spying at Camp Grayling

    Today, the Detroit News reported the FBI has charged five Chinese nationals who studied at the University of Michigan with espionage related charges. The five individuals are accused of taking photos of military equipment at Camp Grayling. While the students were taking photos, the Michigan Army National Guard was hosting training for the Taiwanese military.

    “This case shows once again that CCP espionage can happen anywhere in America and we must be vigilant. The CCP obviously has an interest in Camp Grayling and this is further evidence it would be a mistake for Michigan leaders to allow Gotion to build in our state. State funding for Gotion’s plan to bring Chinese nationals to Mecosta County is an open invitation for further spying on Camp Grayling. For national security reasons, Governor Whitmer and the legislature must revoke state funding for Gotion immediately,” said Congressman John Moolenaar. 

    “Additionally, as chairman of the Select Committee on China, my committee recently issued a report on research security at our nation’s universities. All of our nation’s universities must shut down their joint institutes with Chinese universities, and enact stricter guardrails on emerging technology research. American universities must realize they are a target for espionage and protect the critical taxpayer-funded research they do,” he continued.

    Last month, Moolenaar along with Chairwoman Virginia Foxx of the Committee on Education and Workforce released a report on research security at American universities. The five Chinese nationals charged with espionage were students at the University of Michigan through the schools joint partnership with Shanghai Jiao Tong University in Shanghai. 

    MIL OSI USA News –

  • MIL-OSI Security: Russian Man Sentenced for Running an Illegal Money Transmitting Business

    Source: United States Attorneys General

    Feliks Medvedev, 43, of Buford, Georgia, was sentenced today to three years and 10 months in prison, followed by three years of supervised release, and ordered to pay a $10,000 fine for conducting an unlicensed money transmitting business which transferred over $150 million in Russian money. 

    According to the court documents and other information presented in court, Medvedev is a Russian citizen who resides in North Georgia. He registered eight companies in Georgia that were used to transmit more than $150 million in over 1,300 transactions. The companies were purportedly headquartered in Buford and Dacula, Georgia, but they did not have typical business expenses or employees. The money was used, in part, to purchase over $65 million in overseas gold bullion. Medvedev transferred millions of dollars overseas from multiple bank accounts in the United States.

    As part of the conspiracy, Medvedev worked with a Russian company and was directed by multiple Russian nationals at that company to make illegal transfers of funds. Subsequent to Medvedev’s indictment, on Sept. 14, 2023, the U.S. Department of the Treasury’s Office of Foreign Assets Control, acting pursuant to Executive Order 14024, sanctioned two of Medvedev’s alleged co-conspirators: Russian national Alexey Chubarov and his company KSK Group. Earlier this year, on Feb. 13, Chubarov, KSK Group and Russian national Lev Solyannikov were separately indicted in the Northern District of Georgia for conspiring with Medvedev.

    Medvedev was convicted of the charges on Feb. 7, after he pleaded guilty.

    The FBI and the Department of Commerce’s Bureau of Industry and Security are investigating the case.

    Assistant U.S. Attorneys Christopher J. Huber and Norman L. Barnett for the Northern District of Georgia are prosecuting the case.

    This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.

    MIL Security OSI –

  • MIL-OSI Security: Sixty-Eight Defendants Charged in Indictment of Dozens of Members and Associates of California White Supremacist Gang

    Source: United States Attorneys General

    Federal and local law enforcement today arrested 42 members and associates of the SFV Peckerwoods, a San Fernando Valley, California-based white supremacist street gang, on a 76-count federal grand jury indictment alleging they engaged in a years-long pattern of racketeering activity that included trafficking of drugs — including fentanyl — illegal firearms possession, and COVID-19 benefits and loan fraud.

    “The Justice Department has dealt a decisive blow to the San Fernando Valley (SFV) Peckerwoods, a violent white supremacist gang that we charge is responsible for trafficking deadly fentanyl and other drugs, committing robberies, and perpetrating financial fraud to fund both their criminal enterprise and that of the Aryan Brotherhood,” said Attorney General Merrick B. Garland. “With today’s charges and arrests, the Justice Department, together with our state, local, and federal partners has targeted the heart of this gang’s operations, and we will continue to zero in on the criminal enterprises that endanger our communities.”

    The indictment unsealed today charges a total of 68 defendants with a score of federal crimes: conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to distribute controlled substances, distribution of controlled substances, bank fraud, conspiracy to commit bank fraud, aggravated identity theft, possession of a firearm in furtherance of a drug trafficking crime, unlawful possession of a firearm and ammunition by a felon, and possession of 15 or more unauthorized access devices.

    The defendants arrested today are expected to be arraigned this afternoon in U.S. District Court in downtown Los Angeles.

    During the investigation, law enforcement seized large quantities of illegal firearms, and dozens of pounds of fentanyl, methamphetamine, and heroin, according to the indictment.

    “The Peckerwoods’ violent white-supremacist ideology and wide-ranging criminal activity pose a grave menace to our community,” said U.S. Attorney Martin Estrada for the Central District of California. “By allegedly engaging in everything from drug-trafficking to firearms offenses to identity theft to COVID fraud, and through their alliance with a neo-Nazi prison gang, the Peckerwoods are a destructive force. In prosecuting the members of the Peckerwoods criminal organization, our office is carrying out its mission to protect the public from the most dangerous threats.”

    “This operation, led by our Joint Terrorism Task Force, disrupted a racially motivated violent extremist group who engaged in a wide range of criminal activity,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “This case strikes at the heart of our collective mission to rid our communities of the corrosive elements that fuel violence and extremism that greatly impact our way of life. The FBI, along with our federal, state, and local partners, remains strongly committed to working every day to make sure the people of the Southland remain safe.”

    “The San Fernando Valley Peckerwoods, the Aryan Brotherhood, and their associates are fused by one thing: hatred,” said Special Agent in Charge Matthew Allen of the Drug Enforcement Administration (DEA) Los Angeles Field Division. “It appears, however, that the business of hate was not enough for them. Driven by greed, they engaged in other crimes, including drug distribution, pushing out deadly fentanyl onto our streets. Operating from corners of the San Fernando Valley, they conducted their crimes within and beyond the 8-1-8 community. Today’s large-scale indictments and arrests reflect our relentless commitment to dismantling criminal organizations that continue to harm our communities.”

    According to the indictment that a grand jury returned on Sept. 26, the Peckerwoods is a street gang based in communities in the San Fernando Valley whose members engage in a wide variety of criminal activity, including drug trafficking, violent crime, and fraud. As a white supremacist gang, the Peckerwoods at times takes orders from the Aryan Brotherhood, California’s dominant prison-based white supremacist gang, and maintains an alliance with the Mexican Mafia prison gang, which controls most Latino street gangs in California. The Peckerwoods use Nazi tattoos, graffiti, and iconography to indicate their violent white supremacy extremist ideology. These tattoos and iconography include swastikas, the symbol “88”, used by violent white supremacy extremists as code for “Heil Hitler”, and images of Nazi aircraft.

    Members and associates of the gang used social media to share information with each other about their criminal activities and gang rules, to identify gang members in good standing, and to target people who broke the gang’s rules. The social media use included a members-only Facebook group and private, direct messages between the gang’s members and associates.

    From at least December 2016 to September, Peckerwoods members conducted and participated in the affairs of their criminal enterprise by engaging in violence and threats of violence to preserve and expand the gang’s criminal operations, which promoted a climate of fear. Members and associates of the gang illegally maintained firearms and ammunition in furtherance of these aims.

    To generate revenue for the gang, its members trafficked narcotics, including fentanyl, heroin, and methamphetamine. Specifically, lead defendant Claire Patricia Haviland, 62, of Chatsworth, California, and co-defendants Brian Glenn Ekelund, 53, of Chatsworth, and Brianne Brewer, 38, of North Hollywood, California, maintained and oversaw drug stash houses where large quantities of fentanyl, heroin, methamphetamine, and other drugs were stored prior to distribution. Haviland and Ekelund allegedly mailed illegal drugs to customers and used applications such as Zelle and CashApp to receive money from drug buyers and send money to their drug sources.

    They also generated revenue via robberies and financial fraud and participated in identity theft schemes. For example, from at least March 2021 to July 2023, defendants Sean Craig Gluckman, 35, of Encino, California; Maria Anna James, 30, of Canyon Country, California; and others submitted false and fraudulent applications for the Paycheck Protection Program (PPP), which was designed to aid businesses harmed by the economic fallout from the COVID-19 pandemic. The defendants – posing as sole proprietors – signed fraudulent PPP loan applications on behalf of individuals incarcerated in California state prisons and collected a portion of the fraudulently obtained proceeds from co-conspirators as payment for their assistance.

    In April 2021, Gluckman submitted an application that falsely stated he was a self-employed “artist/writer” with a gross income of nearly $250,000. Later that month, he obtained a PPP loan in the amount of $20,833. In a separate scheme, Gluckman submitted fraudulent unemployment insurance (UI) applications in the names of other people to the California Employment Development Department (EDD) to fraudulently obtain jobless benefits.

    “The proliferation of gang related organized crime deteriorates the core of our society,” said Chief Dominic Choi of the Los Angeles Police Department. “Taking guns out of the hands of gang members and drugs from our streets is just one more step towards reducing this deterioration. Today is yet another example of how local, regional, and federal law enforcement, with a matched dedication, are working together to investigate, apprehend and prosecute criminals.”          

    “When criminal organizations cross jurisdictional lines, it makes conducting investigations and subsequent prosecutions much more difficult,” said Sheriff Jim Fryhoff of the Ventura County, California, Sheriff’s Office. “Having our federal law enforcement partners involvement in such cases greatly enhances our ability to protect not only the citizens of our county, but also those of our region of the state.”

    If convicted, the defendants face a maximum penalty of life in prison.

    The FBI, DEA, Los Angeles Police Department, and Ventura County Sheriff’s Office are investigating the case. The Simi Valley Police Department; California Highway Patrol; Glendale Police Department; Burbank Police Department; Redondo Beach Police Department; Beverly Hills Police Department; Los Angeles County Sheriff’s Department; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Veterans Affairs Police; Department of Labor; Federal Bureau of Prisons; Los Angeles County Probation Department; Los Angeles County Department of Children and Family Services; Pasadena Fire Department; U.S. Customs and Border Protection; and IRS Criminal Investigation provided assistance in the investigation.

    Assistant U.S. Attorneys Reema M. El-Amamy, Jeremiah M. Levine, and Alexander Su for the Central District of California are prosecuting this case.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit http://www.justice.gov/coronavirus.

    On Sept. 15, 2022, the Attorney General selected the U.S. Attorneys’ Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Justice Department established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at http://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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

    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 USA: ERO New York City arrests Venezuelan noncitizen and Tren de Aragua gang member convicted of criminal possession of a firearm

    Source: US Immigration and Customs Enforcement

    NEW YORK — On Sept. 28, Enforcement and Removal Operations New York City arrested Javier Jose Albornoz Marchan, 22, an unlawfully present Venezuelan citizen and member of the Tren de Aragua transnational criminal organization, who was convicted by the Bronx County Supreme Court of criminal possession of a weapon — possession of a firearm. Albornoz was one of eight noncitizens arrested by the New York City Police Department March 27, and was charged with weapons and drug related offenses.

    ERO Fugitive Operations officers took Albornoz into custody on Staten Island, pursuant to a warrant of arrest, and transferred him to the ERO New York City office for processing. Albornoz remains in custody without bond, pending removal proceedings.

    “Sanctuary jurisdictions undermine public safety and put our communities at unnecessary risk,” said ERO New York City Field Office Director Kenneth Genalo. “New York City and state leaders should reevaluate the policies that prevent local law enforcement from cooperating with ERO. It is unconscionable this felon was running free in New York for the last three weeks when he could have immediately been apprehended upon release from local custody. Thankfully, through the due diligence of our courageous officers and our law enforcement partners, this individual was swiftly apprehended and denied the ability to reoffend.”

    On Sept. 22, 2022, U.S Border Patrol encountered Albornoz near EL Paso, Texas. Officials released him into the United States as an alternative to detention and a condition of parole due to detention capacity at the Central Processing Center in El Paso, Texas. Albornoz never reported to ERO for processing.

    On June 18, 2023, the Moonachie Police Department arrested Albornoz for the crime of shoplifting-under-ringing. On June 21, 2023, the Municipal Court of Teterboro remanded Albornoz’s charges to the lower court and released him on his own recognizance.

    On Jan. 6, 2024, the Woodbridge Police Department in New Jersey arrested Albornoz for the crimes of shoplifting-take merchandise without paying and burglary tools-manufacture. On Jan. 8, ERO Newark lodged an immigration detainer for Albornoz with the Middlesex County Jail in North Brunswick, New Jersey. On the same date, the Middlesex County Jail ignored the detainer and released Albornoz from local custody without notifying ERO.

    On March 27, the NYPD arrested Albornoz for criminal possession of a weapon in the second degree: loaded firearm; criminal possession weapon in the second degree: loaded firearm on school grounds; criminal possession of a controlled substance with intent to sell; and acting in manner to injure child less than 17.

    On April 1, ERO New York City lodged an immigration detainer against Albornoz’s release with the New York Department of Corrections at Rikers Island.

    On Sept. 5, the Bronx County Supreme Court convicted Albornoz of criminal possession of a firearm and sentenced him to six months of imprisonment. The next day, the New York City Department of Corrections at Rikers Island released Albornoz back into the community after he served his sentence, despite an active detainer in place, without notifying ERO.

    On Sept. 27, the FBI New York’s Safe Streets Task Force notified ERO New York City of possible threats made by Albornoz to local law enforcement and requested assistance with locating and apprehending him.

    Detainers are critical public safety tools because they focus enforcement resources on removable noncitizens who have been arrested for criminal activity. Detainers increase the safety of all parties involved — ERO personnel, law enforcement officials, removable noncitizens and the public — by allowing an arrest to be made in a secure and controlled custodial setting as opposed to at-large within the community. Because detainers result in the direct transfer of a noncitizen from state or local custody to ERO custody, they also minimize the potential that an individual will reoffend. Additionally, detainers conserve scarce government resources by allowing ERO to take criminal noncitizens into custody directly rather than expending resources locating these individuals at-large.

    Noncitizens placed into removal proceedings receive their legal due process from federal immigration judges in the immigration courts, which are administered by the Executive Office for Immigration Review. The Executive Office for Immigration Review is an agency within the U.S. Department of Justice and is separate from the Department of Homeland Security and ICE. Immigration judges in these courts make decisions based on the merits of each individual case. ERO officers carry out the removal decisions made by the federal immigration judges.

    ERO uses intelligence driven operations that target public safety threats, such as convicted criminal noncitizens and gang members, who have violated our nation’s immigration laws, including those who illegally reenter the country after being removed and immigration fugitives ordered removed by federal immigration judges. ERO officers prioritize enforcement actions in accordance with the Guidelines for the Enforcement of Civil Immigration Law issued by DHS Secretary Alejandro N. Mayorkas on Sept. 30, 2021, and reinstituted on June 28 — obtaining and reviewing entire criminal and administrative records and any other investigative information available, when taking decisive law enforcement actions.

    Members of the public can report crimes and suspicious activity by dialing 866-347-2423 or completing ICE’s online tip form.

    Learn more about ERO New York City’s mission to preserve public safety on X, formerly known as Twitter, at @ERONewYork.

    MIL OSI USA News –

  • MIL-OSI Security: FBI Marks One Year Since October 7, 2023, Hamas Attack

    Source: Federal Bureau of Investigation FBI Crime News (b)

    “The United States continues to be in a heightened threat environment, and the FBI is fully engaged to detect and stop any potential threats to the American people. As we mark one year since the October 7, 2023, attack by Hamas, the ongoing conflict in the Middle East calls for vigilance by the FBI, our law enforcement partners, and members of the public. 

    It is essential to be watchful for threats against Jewish, Muslim, and Arab communities and institutions and to immediately contact law enforcement to report any suspicious activity. We continue to share intelligence with our law enforcement partners here and overseas and continue discussions with faith-based organizations, the private sector, and others about their concerns.

    We must remember the hostages and the innocent lives lost throughout the Mideast over the last year. At the same time, the FBI remains focused on our mission to protect the American people and prevent acts of terrorism and hate.”

    MIL Security OSI –

  • MIL-OSI Security: Jury Convicts Colorado City Men in Child Sexual Abuse Conspiracy

    Source: United States Department of Justice (Human Trafficking)

    PHOENIX, Ariz. – Today, a federal jury in Phoenix found LaDell Jay Bistline, Jr., 45, and Torrance Bistline, 36, both of Colorado City, Arizona, guilty of multiple charges related to their participation in a years-long child sexual abuse conspiracy that spanned several states and victimized at least 10 children. The defendants committed their crimes with others, including co-defendant Samuel Rappylee Bateman, the self-proclaimed leader of a religious sect based in Colorado City. Bateman and nine of his other followers pleaded guilty to charges related to the child sexual abuse conspiracy and were not part of the trial against brothers LaDell Jay Bistline, Jr. and Torrance Bistline.

    “Today’s verdict is a step towards justice for the victims of LaDell and Torrance Bistline,” said U.S. Attorney Gary Restaino. “The Bistlines used their positions of power and trust to sexually exploit children and to profane their community. The devastating trauma and harm they inflicted is unfathomable. But today’s guilty verdicts hold them to account – for their despicable acts, for their breach of trust, and for their complete indifference to the mental and psychological scars their victims will live with for the rest of their lives. The United States Attorney’s Office, along with its state and federal law enforcement partners and other agencies, will continue to work tirelessly to protect the most vulnerable from abuse and exploitation, and to help them heal.”

    “Protecting children is one of the many noble missions of the FBI,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “Adults who exploit children for illicit activities are a danger and a disgrace. Today’s verdicts reflect the unwavering dedication by the FBI and its partners to ensure those who prey on children are held accountable and brought to justice.”

    LaDell Jay Bistline, Jr. was convicted of one count of Receipt of Child Pornography; one count of Transfer of Obscene Material to a Minor; two counts of Persuading or Coercing Travel to Engage in Sexual Activity; two counts of Using a Means of Interstate Commerce to Persuade or Coerce a Minor to Engage in Sexual Activity; and two counts of Transportation of a Minor for Criminal Sexual Activity.

    Torrance Bistline was convicted of one count of Using a Means of Interstate Commerce to Persuade or Coerce a Minor to Engage in Sexual Activity; two counts of Destruction of Records in an Official Proceeding; one count of Conspiracy to Commit Destruction of Records in an Official Proceeding; one count of Tampering with an Official Proceeding; and one count of Conspiracy to Commit Tampering with an Official Proceeding.

    LaDell Jay Bistline, Jr. and Torrance Bistline were followers of Bateman, who represented himself as a religious prophet. In 2020 and 2021, Bateman’s followers gave their minor daughters and wards to him as child “brides” to sexually abuse. Bateman and others transported the victims between states, including Nebraska, Colorado, Utah, and Arizona to facilitate the sexual abuse. LaDell Jay Bistline, Jr. delivered two of his own daughters to Bateman to become child “brides” when the girls were nine and 11 years old. LaDell Jay Bistline, Jr. also participated in group sexual activity involving children, including one event he watched over a video livestream. Torrance Bistline, who financially supported Bateman’s group, sexually abused one of Bateman’s child “brides” during a group sexual activity. Torrance Bistline later tried to destroy and hide evidence to interfere with the investigation.

    LaDell Jay Bistline, Jr. and Torrance Bistline each face a minimum penalty of 10 years in prison and a maximum penalty of life in prison. Sentencing for LaDell Jay Bistline, Jr. is currently scheduled for December 16, 2024, and sentencing for Torrance Bistline is currently scheduled for December 20, 2024, before United States District Judge Susan M. Brnovich. Bateman is currently scheduled to be sentenced by Judge Brnovich on October 28, 2024. Several other defendants have already been sentenced, and the remaining defendants will be sentenced in the coming months.

    The Phoenix Field Office of the Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. The United States Attorney’s Office continues to extend special gratitude to the Arizona Department of Child Safety for its work rescuing and protecting Arizona children impacted by this matter, the Colorado City Police Department, the Iron County (Utah) Sheriff’s Office, the U.S. Marshals Service, and the St. George Resident Agency of the FBI’s Salt Lake City Field Office for their assistance in this matter.

    CASE NUMBER:            CR-22-8092-PHX-SMB
    RELEASE NUMBER:    2024-135_Bistline

    # # #

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

    MIL Security OSI –

  • MIL-OSI Banking: Cybersecurity Awareness Month: Securing our world—together

    Source: Microsoft

    Headline: Cybersecurity Awareness Month: Securing our world—together

    As Cybersecurity Awareness Month marks its 21st year, it’s clear that this year stands out. Phishing emails have become more convincing, and fraud has increased, making cyberattackers seem legitimate—as if they were Microsoft support or even the fraud detection services from your bank.1 And threat actors are taking advantage of the rise of AI, using it to enhance and fine-tune their strategies.

    To add to the complexity, dedicated cybersecurity teams are currently resource constrained, especially compared to their cyberattackers. Globally, the cybersecurity workforce gap has widened this year, with four million roles left unfilled in 2023—a nearly 13% year-on-year increase.2

    To help our global defenders, Microsoft has put together the Be Cybersmart Kit, designed to educate everyone on best practices for going passwordless, not falling for sophisticated phishing or fraud, device protection, AI safety, and more.

    Empower everyone to be a cybersecurity champion

    Help educate everyone in your organization with cybersecurity awareness resources and training curated by the security experts at Microsoft.

    In partnership with the Cybersecurity and Infrastructure Security Agency (CISA) and the National Cybersecurity Alliance (NCA) we have focused on four simple best practices:

    • Use strong passwords and consider a password manager. 
    • Turn on multifactor authentication.
    • Learn to recognize and report phishing.
    • Make sure to keep your software updated.

    “Cybersecurity is not a one-time thing, but that doesn’t mean it has to be a hassle. Small changes in our technology habits can be easy, like using multifactor authentication or keeping your devices and software up to date. All the bad news about the latest data breaches can leave us feeling powerless, but adopting simple, repeatable behaviors goes a long way to protecting our families and businesses. It’s important to stay safe online because your data is worth protecting.”

    —Lisa Plaggemie, Executive Director, NCA

    The Be Cybersmart Kit goes further, providing information and infographics that cover six of the most universally important elements of cybersecurity. These areas of focus are AI Safety, Cybersecurity 101, Devices, Fraud, Phishing, and Passwords. For example, the AI Safety infographic delivers new guidance that focuses on the safe use of AI tools within your organization, including making sure you haven’t become overconfident in AI-generated content and search results and that you’re using the AI tools provisioned by your IT organization.

    Empower your security teams with the Be Cybersmart Kit

    The Be Cybersmart Kit is a great starting point, and it’s just one of the many resources Microsoft has put together on its Cybersecurity Awareness site. Those seeking more in-depth resources can access expert-level learning paths, certifications, and technical documentation to continue their cybersecurity education. And for students pursuing the field of cybersecurity, the Microsoft Cybersecurity Scholarship Program and many more educational opportunities are here to help. The goal of all these programs is to help foster a security-first culture and continuous learning for students and professionals alike.

    “CISA is excited to lead the federal government’s efforts to reduce online risk during this 21st Cybersecurity Awareness month and every month. We work with government and industry to raise cybersecurity awareness and help everyone, from individuals to businesses to all levels of government, stay safe online in our ever-connected world. Protecting ourselves online is about taking a few simple, everyday steps to keep our digital lives safe.”

    —Jen Easterly, Director, CISA

    The cyberthreats we face in the era of AI

    AI-enhanced phishing threats and social engineering are on the rise. These threats are often highly targeted and present fewer of the tell-tale signs of their traditionally generated counterparts. In the FBI’s 2023 Internet Crime Report, the agency states that its Internet Crime Complaint Center fielded more than 800,000 cyber incident complaints. The FBI estimates the total losses associated with these incidents to be greater than USD10 billion.2

    To better understand phishing-related risk factors in the era of AI, Microsoft has collaborated with Fortra to put together the Phishing Benchmark Global Report. The report found that 10.4% of phishing simulation participants clicked the email phishing link they were sent—a 3.4% increase over the previous year.3 Even more worrying, 60% of users who clicked on the email link also ultimately submitted their password to the phishing website.3 These attacks target tens of millions of users annually, and with AI-enhanced features they are more and more likely to evade traditional security layers like firewalls and email security measures. AI can also aid cyberattackers in setting up their phishing sites in locations that internet browsers and security providers are less capable of detecting as high-risk.

    In the era of AI, we are all cyberdefenders. Despite this, 52% of employees still say their job has nothing to do with cybersecurity.3 This couldn’t be further from the truth. Employees are the first and last line of defense—and Microsoft recognized the importance of this when we created the Secure Future Initiative. Our Chief Executive Officer Satya Nadella has led the charge himself as Microsoft puts “security above all else, before all other features and investments.” This is why educating everyone on staying cybersafe is so important right now. Whether you point your employees to some of the resources linked in this article, highlight your own in-house resources, or bring in outside experts, it’s time to act now.

    We all have a role to play as cyberdefenders both at work and home. Identity and device protection can help protect individuals and their families from malicious cyberthreats—and Microsoft is making it easier than ever to stay safer on unsecure Wi-Fi with the expansion of privacy protection. Consumers can get the added protection of a VPN on their phones and computers when on-the-go in places like coffee shops or airports. And now, device notifications alert users to unsafe Wi-Fi connections guiding them to turn on VPN for a safer connection.

    For informed individuals looking to further broaden their understanding of the landscape, Microsoft invites you to join the Build a Security-First Culture in the Era of AI webinar on October 30, 2024. Let’s all do our part to secure our world—together.

    Get the Be Cybersmart Kit

    To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

    1Bold action against fraud: Disrupting Storm-1152, Microsoft. August 7, 2024.

    2Cybersecurity Workforce Study, ISC2.

    3Phishing Benchmark Global Report, Fortra.

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  • MIL-OSI Security: Pennsylvania Man Sentenced to 25 Years in Prison for Transporting a Minor with the Intent to Engage in Criminal Sexual Activity

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    SYRACUSE, NEW YORK – John Oathout, age 54, of Harrisburg, Pennsylvania, was sentenced on Friday to 25 years in prison for transporting a minor with the intent to engage in criminal sexual activity.  United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    As part of his guilty plea, Oathout admitted that after a romantic relationship ended with the victim’s mother, the victim’s mother permitted the defendant to take her daughter on overnight trips to Virginia and New York.  During the week of Thanksgiving 2021, the defendant arranged to pick up the 5-year-old child from her home in Delaware and transport her to a hotel in Kingston, New York, where he subjected the child to sexual contact. 

    In addition to sentencing Oathout to serve 25 years in prison, Chief United States District Judge Brenda K. Sannes also imposed a 20-year term of supervised release, which Oathout will begin serving after he is released from prison, at which time Oathout will also be required to register as a sex offender.

    The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force investigated this case.  The Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorney Carling Dunham prosecuted the case as part of Project Safe Childhood.

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

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  • MIL-OSI Security: Ra Medical Systems, Inc. & Physicians Pay Over $8 Million to Resolve False Claims Act Allegations of Illegal Kickbacks

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    DETROIT – United States Attorney Dawn N. Ison announced today a series of three civil settlements, totaling over $8 million, related to, among other allegations, kickbacks that medical device company Ra Medical Systems, Inc. (Ra Medical), paid to various physicians across the country related to Ra Medical’s DABRA laser.

    Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office. 

    Ra Medical was a medical device company that was formerly headquartered in Carlsbad, California.  From 2017-2019, Ra Medical manufactured and sold a device known as the DABRA Laser.  The settlement with Ra Medical resolves the following alleged violations of the False Claims Act:

    • Ra Medical marketed the DABRA Laser for use in atherectomies, a procedure whereby plaque is mechanically removed from occluded blood vessels in patients suffering from peripheral artery disease. The U.S. Food and Drug Administration, however, had not approved the DABRA Laser for use in atherectomy procedures.
    • Additionally, Ra Medical knowingly marketed the DABRA Laser despite product performance issues causing frequent calibration and overheating problems, which posed a risk to physicians and patients, and prompted a recall in August 2019.
    • Ra Medical also knowingly offered and paid illegal remuneration to certain physicians to induce them to use the DABRA Laser in violation of the Federal Anti-Kickback Statute. The United States contends that the illegal remuneration consisted of cash payments and fees paid in connection with purported training events and consulting services. The United States further contends that RMS tracked utilization of its high-volume physician customers using an internal document titled “Who Deserve[] Love,” which was used to identify physicians that RMS should target with offers of improper remuneration. Two of the recipients of the alleged kickback payments were Elias Kassab, M.D. (Kassab), of Dearborn, Michigan, and David Allie, M.D. (Allie), of Lafayette, Louisiana.

    The Federal Anti-Kickback Statute prohibits offering or paying anything of value to induce referrals of items or services covered by Medicare and other federally funded programs.  The statute is intended to ensure that a medical provider’s judgment is not compromised by improper financial incentives.

    Under the terms of the agreement with Ra Medical, which was entered into pursuant to DOJ’s inability to pay settlement guidelines and was executed in December 2020, Ra Medical paid $2.5 million up front and would pay up to $28 million more if future financial contingencies were met.  In January 2023, Ra Medical paid an additional $5 million, after its reverse merger with Catheter Precision, Inc., triggered one of the contingencies.

    The settlement with Ra Medical remained under seal while the United States continued its investigation into Kassab and Allie, among others, who were alleged to have received improper kickbacks.  In a separate settlement, Kassab and two of his companies agreed to pay $450,000 to resolve the allegations against them.  In the third settlement, Allie and his consulting company agreed to pay $250,000 to resolve the allegations against them.

    “The United States will not allow doctors to hold out their hands expecting to be paid to use and promote a device,” said U.S. Attorney Ison. “The millions of people who depend on our federal healthcare programs deserve and expect medical decisions untainted by kickbacks, and this settlement reflects our commitment to pursuing not just the companies that pay illegal kickbacks, but also the physicians who willingly extract and accept them.”

    “The payment of kickbacks to induce referrals can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work diligently with our law enforcement partners to ensure the appropriate use of taxpayer dollars.”

    “Healthcare services are being unlawfully influenced by medical providers engaging in criminal kickback schemes, significantly impacting programs such as Medicare and Medicaid,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Our office is fully committed to investigating and holding accountable those individuals and organizations involved in illegal profit-driven practices that harm our medical system.”

    “Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Special Agent-in-Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners and the Department of Justice to investigate allegations of healthcare fraud.”

    The civil settlements resolve the claims brought by Robert Gruber, under the qui tam or whistleblower provisions of the False Claims Act.  Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned United States ex rel. Gruber v. Ra Medical Systems, Inc., et al., No. 19-12044 (E.D. Mich.).  The whistleblower will receive a combined $1,722,000 from the three settlements.  The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.

    The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the FBI, and the Defense Criminal Investigative Service.

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  • MIL-OSI Security: Convicted Felon Sentenced for the Second Time in One Year After Failing to Appear in Court While on Supervised Release

    Source: Federal Bureau of Investigation (FBI) State Crime News

    Salt Lake City, Utah – Thomas Fairbanks, 71, of Cache County, Utah, was sentenced today to an additional 30 days’ imprisonment for failure to appear in court for a sentencing hearing in a securities fraud case. The one month sentence will be served consecutively to his 27 months’ securities fraud sentence, which was imposed in April 2024. 

    According to court documents and statements made at the change of plea hearing, on May 24, 2023, Fairbanks failed to appear in front of U.S. District Court Judge Jill N. Parrish for his sentencing in a 2019 securities fraud case, after he was convicted by a jury on August 30, 2022. After his failure to appear, a warrant was issued for his arrest, and he was later arrested in February 2024. According to court documents in the 2019 case, the defendant was convicted of a securities fraud scheme in connection with his fraudulent company SupplyLine Partners. As part of the scheme, Fairbanks created a pitch deck to advertise the entity, ran seminars to find investors, and ultimately convinced at least two individuals to invest with him in his fake entity. SupplyLine was never a registered company nor was Fairbanks authorized to sell securities.

    Fairbanks took victims’ money and did not invest as he said he would, never returned the money and did not pay out the promised 6% interest. In total, Fairbanks defrauded two victims out of $270,232.

    The case was investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.

    Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall of the U.S. Attorney’s Office for the District of Utah prosecuted the case. 
     

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