NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Arizona Man Sentenced for COVID Loan Fraud and Tax Fraud

    Source: Office of United States Attorneys

    TUCSON, Ariz. – Roy Lane, 44, of St. David, Arizona, was sentenced on Tuesday by U.S. District Judge John C. Hinderaker to four years in prison, followed by three years of supervised release, for filing false tax returns and loan applications to obtain COVID-19 disaster relief. Layne previously pleaded guilty to two counts of Wire Fraud and one count of Filing a False Claim.

    According to court documents, and evidence presented in court, to create the appearance that he was operating several businesses, Layne filed paperwork with the IRS, applied for a business license from the City of Tucson, opened business bank accounts, and filed false employment-related tax returns. In April 2020, he filed an application with the U.S. Small Business Administration, that claimed he operated a “wholesale” business with 17 employees that had revenue of more than a half million dollars a year. In 2021, he submitted a false application for a Paycheck Protection Act loan, claiming that same “wholesale” business had 31 employees and $1.2 million in revenue. Based on these and other false applications, Layne ultimately received over $300,000 in COVID-19 related loans to which he was not entitled.

    Layne also used the personal identifying information and identities of other people to file false claims for refunds with the IRS. In total, Layne claimed over $7.4 million in false refunds, of which the IRS paid over $590,000.

    In addition to the prison term, U.S. District Judge John C. Hinderaker ordered Layne to pay $856,692.91 in restitution to the United States.

    IRS Criminal Investigation and the FBI investigated the case. Trial Attorney Matthew R. Hoffman of the Tax Division and Assistant U.S. Attorney Mary Sue Feldmeier, District of Arizona, Tucson, prosecuted the case.

    CASE NUMBER:            CR-24-04907-TUC-JCH
    RELEASE NUMBER:    2025-070_Layne

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Santa Clarita Man Agrees to Plead Guilty to Hacking Disney Employee’s Computer, Downloading Confidential Data from Company

    Source: Office of United States Attorneys

    LOS ANGELES – A Santa Clarita man has agreed to plead guilty to hacking the personal computer of an employee of The Walt Disney Company last year, obtaining login information, and using that information to illegally download confidential data from the Burbank-based mass media and entertainment conglomerate via the employee’s Slack online communications account.

    Ryan Mitchell Kramer, 25, has agreed to plead guilty to an information charging him with one count of accessing a computer and obtaining information and one count of threatening to damage a protected computer.

    In addition to the information, prosecutors today filed a plea agreement in which Kramer agreed to plead guilty to the two felony charges, which each carry a statutory maximum sentence of five years in federal prison.

    Kramer is expected to make his initial appearance in United States District Court in downtown Los Angeles in the coming weeks.

    According to his plea agreement, in early 2024, Kramer posted a computer program on various online platforms, including GitHub, that purported to be computer program that could be used to create A.I.-generated art. In fact, the program contained a malicious file that enabled Kramer to gain access to victims’ computers. 

    Sometime in April and May of 2024, a victim downloaded the malicious file Kramer posted online, giving Kramer access to the victim’s personal computer, including an online account where the victim stored login credentials and passwords for the victim’s personal and work accounts. 

    After gaining unauthorized access to the victim’s computer and online accounts, Kramer accessed a Slack online communications account that the victim used as a Disney employee, gaining access to non-public Disney Slack channels. In May 2024, Kramer downloaded approximately 1.1 terabytes of confidential data from thousands of Disney Slack channels.

    In July 2024, Kramer contacted the victim via email and the online messaging platform Discord, pretending to be a member of a fake Russia-based hacktivist group called “NullBulge.” The emails and Discord message contained threats to leak the victim’s personal information and Disney’s Slack data.

    On July 12, 2024, after the victim did not respond to Kramer’s threats, Kramer publicly released the stolen Disney Slack files, as well as the victim’s bank, medical, and personal information on multiple online platforms.

    Kramer admitted in his plea agreement that, in addition to the victim, at least two other victims downloaded Kramer’s malicious file, and that Kramer was able to gain unauthorized access to their computers and accounts.

    The FBI is investigating this matter.

    Assistant United States Attorneys Lauren Restrepo and Maxwell Coll, both of the Cyber and Intellectual Property Crimes Section, are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI: Asure Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports First Quarter 2025 Total Revenues of $34.9 million

    Recurring Revenues Grew 10% from Prior Year

    AUSTIN, Texas, May 01, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the first quarter ended March 31, 2025.

    First Quarter 2025 Financial Highlights

    • Revenue of $34.9 million, up 10% year over year, excluding ERTC revenue up 13% from the prior year first quarter
    • Recurring revenue of $33.2 million versus $30.3 million during the prior year first quarter
    • Net loss of $2.4 million versus a net loss of $0.3 million during the prior year first quarter
    • EBITDA(1) of $4.1 million versus $4.4 million during the prior year first quarter
    • Adjusted EBITDA(1) of $7.3 million versus $6.8 million during the prior year first quarter
    • Gross profit of $24.6 million versus $22.6 million during the prior year first quarter
    • Non-GAAP gross profit(1) of $26.3 million (Non-GAAP gross margin(1) of 75%) versus $23.8 million (and 75% in prior year first quarter)

    Recent Business Highlights

    • New Payroll Tax Management solution launched which is designed specifically for large Canadian companies and global enterprises with employees in Canada. Our ability to serve enterprise clients with international workforces with this innovative solution creates further opportunities to grow our business and the seamless integration of payroll tax services into major platforms such as Workday, Oracle, and SAP is a key benefit. The Canadian payroll tax solution addresses critical compliance needs for organizations managing cross-border payroll processes, reducing complexity and ensuring accurate, timely filing.
    • In April 2025 we entered into a credit agreement primarily with MidCap Financial Trust, whereby the Company may borrow up to $60 million. At closing, which occurred on April 10, we received $20 million of gross proceeds.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are excited to be off to a great start to 2025 with healthy results for our first quarter of 2025 with our revenues increasing 10% from the prior year first quarter. Our results were driven by strong performance coming from our Payroll Tax Management and initial contribution from our recently acquired product offerings,” said Asure Chairman and CEO Pat Goepel.

    “Our team is focused on continuing to execute our growth strategy. Our revenues are now more than 95% recurring, our contracted revenue backlog sits at an all-time high, and we believe that the investments we have made in the business will continue to drive greater adoption of our broadened product suite for the remainder of 2025.”

    Second Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the second quarter of 2025 and the full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our second quarter of 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q2-2025   FY-2025
    Revenue $ 30.0 M – 32.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 5.0 M -6.0 M   23% -24%
             

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, May 1, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com. 

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward- looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements we make regarding our operating performance, future results of operations and financial position, revenue growth, earnings or other projections. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

    The risks and uncertainties referred to above include—but are not limited to—risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      March 31, 2025   December 31, 2024
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 14,076     $ 21,425  
    Accounts receivable, net of allowance for credit losses of $6,545 and $6,328 at March 31, 2025 and December 31, 2024, respectively   15,800       18,154  
    Inventory   220       195  
    Prepaid expenses and other current assets   5,970       4,888  
    Total current assets before funds held for clients   36,066       44,662  
    Funds held for clients   257,019       192,615  
    Total current assets   293,085       237,277  
    Property and equipment, net   20,999       19,669  
    Goodwill   94,724       94,724  
    Intangible assets, net   73,003       69,114  
    Operating lease assets, net   4,403       4,041  
    Other assets, net   12,727       11,813  
    Total assets $ 498,941     $ 436,638  
    LIABILITIES AND STOCKHOLDERS’EQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,948     $ 7,008  
    Accounts payable   2,475       1,364  
    Accrued compensation and benefits   2,911       4,485  
    Operating lease liabilities, current   1,432       1,438  
    Other accrued liabilities   6,071       6,600  
    Deferred revenue   4,662       8,363  
    Total current liabilities before client fund obligations   25,499       29,258  
    Client fund obligations   258,586       194,378  
    Total current liabilities   284,085       223,636  
    Long-term liabilities:      
    Deferred revenue   3,321       3,430  
    Deferred tax liability   2,903       2,612  
    Notes payable, net of current portion   6,172       5,709  
    Operating lease liabilities, noncurrent   3,892       3,578  
    Other liabilities   905       358  
    Total long-term liabilities   17,193       15,687  
    Total liabilities   301,278       239,323  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding   —       —  
    Common stock, $0.01 par value; 44,000 shares authorized; 27,122 and 26,671 shares issued, 27,122 and 26,671 shares outstanding at December 31, 2024 and December 31, 2023, respectively   271       267  
    Treasury stock at cost, zero(1)at March 31, 2025 and December 31, 2024   —       —  
    Additional paid-in capital   507,149       504,849  
    Accumulated deficit   (309,624 )     (307,226 )
    Accumulated other comprehensive loss   (133 )     (575 )
    Total stockholders’ equity   197,663       197,315  
    Total liabilities and stockholders’ equity $ 498,941     $ 436,638  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
     
      Three Months Ended
    March 31,
      2025   2024
           
    Revenue:      
    Recurring $ 33,187     $ 30,273  
    Professional services, hardware and other   1,667       1,379  
    Total revenue   34,854       31,652  
    Cost of sales   10,246       9,045  
    Gross profit   24,608       22,607  
    Operating expenses:      
    Sales and marketing   8,386       7,767  
    General and administrative   11,900       10,063  
    Research and development   2,029       1,769  
    Amortization of intangible assets   4,308       3,449  
    Total operating expenses   26,623       23,048  
    Loss from operations   (2,015 )     (441 )
    Interest income   171       336  
    Interest expense   (451 )     (180 )
    Other income, net   188       10  
    Loss from operations before income taxes   (2,107 )     (275 )
    Income tax expense   291       33  
    Net loss   (2,398 )     (308 )
    Other comprehensive income (loss):      
    Unrealized gain (loss) on marketable securities   442       (244 )
    Comprehensive loss $ (1,956 )   $ (552 )
           
    Basic and diluted loss per share      
    Basic $ (0.09 )   $ (0.01 )
    Diluted $ (0.09 )   $ (0.01 )
           
    Weighted average basic and diluted shares      
    Basic   26,961       25,334  
    Diluted   26,961       25,334  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Three Months Ended March 31,
      2025   2024
           
    Cash flows from operating activities:      
    Net loss $ (2,398 )   $ (308 )
    Adjustments to reconcile loss to net cash provided by (used in) operations:      
    Depreciation and amortization   5,972       4,860  
    Amortization of operating lease assets   374       335  
    Amortization of debt financing costs and discount   253       142  
    Non-cash interest expense   197       —  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (110 )     (78 )
    Provision for expected losses   93       46  
    Provision for deferred income taxes   291       24  
    Net realized gains on sales of available-for-sale securities   (656 )     (652 )
    Share-based compensation   1,863       1,902  
    Changes in operating assets and liabilities:      
    Accounts receivable   2,261       (919 )
    Inventory   (24 )     (50 )
    Prepaid expenses and other assets   (1,049 )     (473 )
    Operating lease right-of-use assets   —       30  
    Accounts payable   903       (960 )
    Accrued expenses and other long-term obligations   (1,737 )     (2,665 )
    Operating lease liabilities   (427 )     (141 )
    Deferred revenue   (3,810 )     (5,040 )
    Net cash provided by (used in) operating activities   1,996       (3,947 )
    Cash flows from investing activities:      
    Acquisition of intangible assets   (6,346 )     (710 )
    Purchases of property and equipment   (192 )     (240 )
    Software capitalization costs   (2,769 )     (2,435 )
    Purchases of available-for-sale securities   (6,589 )     (3,516 )
    Proceeds from sales and maturities of available-for-sale securities   3,266       2,406  
    Net cash used in investing activities   (12,630 )     (4,495 )
    Cash flows from financing activities:      
    Payments made on amounts due for the acquisition of intangibles   (723 )     (236 )
    Net proceeds from issuance of common stock   441       176  
    Net change in client fund obligations   64,207       21,122  
    Net cash provided by financing activities   63,925       21,062  
    Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents   53,291       12,620  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   145,712       177,622  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 199,003     $ 190,242  
                   
     
    ASURE SOFTWARE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Three Months Ended March 31,
      2025
    		   2024
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Condensed Consolidated Balance Sheets
    Cash and cash equivalents $ 14,076     $ 23,166  
    Restricted cash and restricted cash equivalents included in funds held for clients   184,927       167,076  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 199,003     $ 190,242  
           
    Supplemental information:      
    Cash paid for interest $ 125     $ —  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 750     $ 6,345  
    Notes payable issued for acquisitions $ 1,150     $ 827  
    Shares issued for acquisitions $ —     $ 4,494  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 24,608   $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018  
    Gross Margin   70.6 %   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %
                     
    Share-based Compensation   44     44     44     43     40     32     28     46  
    Depreciation   1,369     1,190     1,232     1,145     1,110     921     984     1,309  
    Amortization – intangibles   50     50     50     50     50     50     50     50  
    One-time expenses                
    Settlements, penalties & interest   29     25     2     3     —     (6 )   8     —  
    Acquisition and transaction costs   167     221     367     264     39     —     —     —  
    Other non-recurring expenses   —     84     —     —     —     —     —     —  
    Non-GAAP Gross Profit $ 26,267   $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423  
    Non-GAAP Gross Margin   75.4 %   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 8,386   $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515  
                     
    Share-based Compensation   322     251     269     237     243     180     210     149  
    Depreciation   1     —     1     —     1     1     —     —  
    One-time expenses                
    Settlements, penalties & interest   51     78     (5 )   5     18     6     30     4  
    Acquisition and transaction costs   30     9     68     37     11     —     —     —  
    Other non-recurring expenses   —     52     —     —     —     —     —     180  
    Non-GAAP Sales and Marketing Expense $ 7,982   $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 11,900   $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336  
                     
    Share-based Compensation   1,407     1,081     1,187     1,122     1,535     980     936     1,298  
    Depreciation   244     269     264     256     251     225     200     234  
    One-time expenses                
    Settlements, penalties & interest   492     142     377     304     98     284     101     432  
    Acquisition and transaction costs   491     282     371     245     57     51     —     —  
    Other non-recurring expenses   136     220     253     —     86     53     —     453  
    Non-GAAP General and Administrative Expense $ 9,130   $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,029   $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325  
                     
    Share-based Compensation   90     87     90     86     85     69     76     89  
    Depreciation   1     —   $ —   $ —   $ —   $ —   $ —   $ —  
    One-time expenses                
    Settlements, penalties & interest   9     21     —     27     31     —     —     —  
    Acquisition and transaction costs   91     153     195     369     147     —     —     —  
    Other non-recurring expenses   —     29     —     —     —     —     —     —  
    Non-GAAP Research and Development Expense $ 1,838   $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236  
                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q1-25 Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23
    Revenue(1) $ 34,854   $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420  
                     
    GAAP Net Loss to Adjusted EBITDA
    GAAP Net Loss $ (2,398 ) $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 )
                     
    Interest expense, net   280     211     109     (53 )   (156 )   (24 )   782     1,593  
    Income taxes   291     499     170     231     33     (158 )   (123 )   627  
    Depreciation   1,614     1,460     1,497     1,402     1,361     1,148     1,185     1,542  
    Amortization – intangibles   4,358     4,482     4,345     4,096     3,499     3,743     3,384     3,343  
    EBITDA $ 4,145   $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340  
    EBITDA Margin   11.9 %   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %
                     
    Share-based Compensation   1,863     1,463     1,591     1,488     1,902     1,260     1,251     1,582  
    One Time Expenses                
    Settlements, penalties & interest   581     266     375     339     147     283     140     436  
    Acquisition and transaction costs   779     665     1,001     914     254     51     —     —  
    Other non-recurring expenses   136     385     253     —     86     53     —     633  
    Other expense (income), net   (188 )   2     —     —     (10 )   1     1,800     93  
    Adjusted EBITDA $ 7,316   $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084  
    Adjusted EBITDA Margin   21.0 %   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network –

  • MIL-OSI USA: El Paso, Texas, man pleads guilty to alien smuggling, money laundering conspiracies

    Source: US Immigration and Customs Enforcement

    ALBUQUERQUE, N.M. – An El Paso, Texas man who led a major human smuggling operation has plead guilty to federal charges of conspiring to transport and harbor illegal aliens and to launder the proceeds of the smuggling scheme, following an investigation by U.S. Immigration and Customs Enforcement.

    Homeland Security Investigations, U.S. Customs and Border Protection, U.S. Border Patrol and the U.S. Marshals Service investigated this case.

    According to court records, between July 7, 2022, and March 21, 2023, Jose Luis Avalos, 42, the leader of the organization and the final defendant to plead in the case, along with co-conspirators and his wife, Kristina Hardin, coordinated the illegal transportation and harboring of illegal aliens throughout New Mexico. In return, Avalos and Hardin received numerous money transfers into their bank accounts as proceeds from the smuggling operation and paid others for expenses related to the conspiracy.

    In addition, from Aug. 10, 2021, through Dec. 27, 2022, Avalos conspired with Hardin and others to launder the proceeds from the smuggling activities. They deposited illicit funds into multiple bank accounts and used the money for personal and mutual benefit, intentionally concealing the source and nature of these funds to avoid detection. In his plea agreement, Avalos admitted to knowingly participating in the conspiracy and working with others for their shared benefit.

    On May 18, 2023, Avalos was indicted along with eight co-conspirators, as part of a federal investigation into a large-scale illegal alien smuggling and money laundering operation. Subsequently, Hardin pleaded guilty to participating in the conspiracy to launder proceeds, while Avalos’ brother, David Avalos-Solis, pleaded guilty to conspiracy to transport and harbor illegal aliens. Twin brothers Dario Rey Gamboa and Diego Rean Gamboa, along with Justin Walker, Cindy Escobar, and Adam Guerrero, also pleaded guilty to participating in the conspiracy to transport and harbor illegal aliens. Nancy Orellana-Recinos pleaded guilty to aiding and abetting eluding examination or inspection.

    Orellana-Recinos was sentenced to time served and was provided a notice to appear for immigration proceedings. Hardin received two years of probation. Walker was sentenced to 21 months in prison. Diego Rean Gamboa, Dario Rey Gamboa, Cindy Escobar, and Adam Guerrero were each sentenced to time served.

    At sentencing, Avalos faces 20 years in prison followed by three years of supervised release.

    Assistant United States Attorney Randy M. Castellano is prosecuting the case as part of Joint Task Force Alpha. JTFA, a partnership with U.S. Department of Homeland Security, has been elevated and expanded with a mandate to target cartels and transnational criminal organizations to eliminate human smuggling and trafficking operating in Mexico, Guatemala, El Salvador, Honduras, Panama, and Colombia.

    JTFA comprises detailees from U.S. Attorney Offices along the Southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Money Laundering and Asset Recovery Section; Office of Enforcement Operations; and the Office of International Affairs, among others. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 355 domestic and international arrests of leaders, organizers, and significant facilitators of alien smuggling; more than 320 U.S. convictions; more than 265 significant jail sentences imposed; and forfeitures of substantial assets.

    MIL OSI USA News –

  • MIL-OSI USA: Jordanian National Sentenced to Six Years for Threatening to Use Explosives and Attacking an Energy Facility

    Source: US State of California

    Hashem Younis Hashem Hnaihen, 44, a Jordanian national residing illegally in Orlando, was sentenced today to six years in federal prison for threatening to use explosives and destruction of an energy facility. A restitution hearing will be held at a future date to address the more than $450,000 in damages Hnaihen caused.

    “Threatening to commit mass violence against American citizens and targeting businesses or institutions for destruction will not be tolerated,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “Today’s sentence demonstrates the collective fortitude of our law enforcement partners to vigorously investigate and prosecute those who engage in acts of intimidation or violence against our communities.”

    “This case highlights the strength of our partnerships and the tenacity of our investigators who are determined to protect the American people from those threatening the safety and security of our communities,” said Special Agent in Charge Matthew Fodor the FBI Tampa Field Office. 

    Restaurant damaged in attack with notes taped to the window.

    According to court documents, beginning around June 2024, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.” In his letters, which were addressed to the President of the United States and the United States government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.” 

    Solar panels with cracked glass.

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused more than $450,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, 2024, shortly after another “Warning Letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    The FBI and the Orange County Sheriff’s Office investigated the case, with valuable assistance from the Maitland Police Department, the Winter Park Police Department, the Orlando Police Department, the Florida Department of Law Enforcement, and U.S. Immigration and Customs Enforcement.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI Security: Convicted Drug Trafficker Is Sentenced To Prison

    Source: Office of United States Attorneys

    ASHEVILLE, N.C. – Kelly Woodrow Ross, 64, of Waynesville, N.C., was sentenced today to 46 months in prison followed by three years of supervised release for trafficking methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

    According to court documents and court proceedings, in November 2023, the Haywood County Sheriff’s Office learned that Ross was distributing methamphetamine in the area. At the time, Ross was on federal supervised release for a prior federal drug conviction. Court records show that during the investigation into Ross’s drug distribution activities, law enforcement utilized confidential human sources to purchase more than 5.5 grams of methamphetamine from Ross. On November 28, 2023, investigators executed a search warrant at Ross’s residence. During the search, investigators seized methamphetamine, digital scales, and drug paraphernalia from Ross’s residence.

    On September 20, 2024, Ross pleaded guilty to possession with intent to distribute methamphetamine. He remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

    In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration and the Haywood County Sheriff’s Office for their investigation of the case.

    Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.

     

    MIL Security OSI –

  • MIL-OSI Security: Jordanian National Sentenced to Six Years for Threatening to Use Explosives and Attacking an Energy Facility

    Source: United States Attorneys General 7

    Hashem Younis Hashem Hnaihen, 44, a Jordanian national residing illegally in Orlando, was sentenced today to six years in federal prison for threatening to use explosives and destruction of an energy facility. A restitution hearing will be held at a future date to address the more than $450,000 in damages Hnaihen caused.

    “Threatening to commit mass violence against American citizens and targeting businesses or institutions for destruction will not be tolerated,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “Today’s sentence demonstrates the collective fortitude of our law enforcement partners to vigorously investigate and prosecute those who engage in acts of intimidation or violence against our communities.”

    “This case highlights the strength of our partnerships and the tenacity of our investigators who are determined to protect the American people from those threatening the safety and security of our communities,” said Special Agent in Charge Matthew Fodor the FBI Tampa Field Office. 

    Restaurant damaged in attack with notes taped to the window.

    According to court documents, beginning around June 2024, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.” In his letters, which were addressed to the President of the United States and the United States government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.” 

    Solar panels with cracked glass.

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused more than $450,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, 2024, shortly after another “Warning Letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    The FBI and the Orange County Sheriff’s Office investigated the case, with valuable assistance from the Maitland Police Department, the Winter Park Police Department, the Orlando Police Department, the Florida Department of Law Enforcement, and U.S. Immigration and Customs Enforcement.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Inmate previously convicted for child sexual abuse material found guilty of possessing more in his cell

    Source: Office of United States Attorneys

    RICHMOND, Va. – A federal jury convicted an inmate at the Petersburg Federal Correctional Institution (FCI Petersburg) yesterday for possession of child sexual abuse material (CSAM).

    According to court records and evidence presented at trial, on March 7, 2024, correctional officers at FCI Petersburg searched the cell of inmate James Skibinski, 61, and found him in possession of prison contraband photos. Skibinski’s personal property was collected from his cell and held by staff of the Federal Bureau of Prisons. On April 10, 2024, another correctional officer received information that Skibinski had a folder with hidden compartments where he kept altered images and photographs of children. The officer retrieved Skibinski’s property bags, located the folder, and found the hidden compartments. Inside these hidden compartments were envelopes containing images of young children that had been altered to depict the children engaging in sexual acts.

    Skibinski faces a mandatory minimum of 10 years and up to 20 years in prison when sentenced on Sept. 11. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge John A. Gibney Jr. accepted the verdict.

    Assistant U.S. Attorney Heather H. Mansfield is prosecuting the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-145.

    MIL Security OSI –

  • MIL-OSI Security: Ashburn financial advisor sentenced to three years in prison for defrauding investors and losing millions of dollars through risky trading

    Source: Office of United States Attorneys

    ALEXANDRIA, Va. – An Ashburn man was sentenced today to three years in prison for fraud relating to his risky trading that lost millions of dollars of his clients’ funds while he provided them with false information.

    According to court documents, Andrew Corbman, 53, was affiliated with a national estate planning company through which he obtained access to individuals interested in estate planning and setting up trust vehicles. Corbman offered financial advice to clients and potential clients, including assisting them with long-term financial planning such as trusts, annuities, and life insurance.

    Over a period of years, Corbman worked with two individuals and two couples who loaned him money believing he would invest those funds and earn outsized returns. These clients did not know that in 2016 Corbman was suspended and then permanently barred by the Financial Industry Regulatory Authority (FINRA) from acting as a financial advisor or that Corbman filed for bankruptcy in 2015. Corbman suggested the clients could improve their investment returns if they loaned him money or rolled over existing loans they had made to him. Through false claims of investing success, Corbman induced his Clients to loan him up to $4.2 million, promising to invest or continue investing the money in stock market options trading. Corbman promised to repay the loans at high rates of return, as much as a 30% annual interest rate, plus a share of his own trading profits.

    Corbman misrepresented his past trading performance to induce the clients to invest or to reinvest what he owed them when the loans came due in the form of a new loan. Corbman provided at least two of his potential clients a document he claimed showed his 2021 investment results. The document boasted “112 wins, 82% win history and a 90% average return.” In fact, Corbman’s trading history for each year from 2019 onward resulted in substantial losses. Altogether, Corbman lost over $4,000,000 of his clients’ money, and returned only $120,000 to one victim late in the scheme.

    Corbman, fully aware of the risks and the calamitous results he was producing, not only concealed the risks from his clients, but actively misled them in an attempt to stave off requests for funds and to attempt to obtain new funds. Corbman provided his victims with fabricated trading win histories.

    In late 2022 and early 2023, when Corbman’s creditors demanded repayment of their expired loans agreements, Corbman indicated to his clients that he was unable to repay the loans due to unanticipated trading losses. Corbman ultimately filed for bankruptcy, seeking to discharge over $4 million in losses he had inflicted on his clients.

    As a result of Corbman’s fraudulent scheme, at least one victim incurred substantial financial hardship, including having to mortgage a home, postpone retirement, and seek employment at an advanced age.

    In addition to his term of imprisonment, Corbman must pay $4.15 million in restitution.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division, made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.

    Assistant U.S. Attorney Russell L. Carlberg prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-255.

    MIL Security OSI –

  • MIL-OSI Security: Suburban Chicago Man Sentenced to Five Years in Prison for Cyberstalking Victim He Met Online

    Source: Office of United States Attorneys

    CHICAGO — A suburban Chicago man has been sentenced to five years in federal prison for cyberstalking a victim he met on an online dating platform.

    KEVIN CRUZ met the victim in 2021 on the dating application Grindr.  While the pair communicated about a potential intimate relationship, the victim sent Cruz nude photographs of himself.  Cruz and the victim met in person on several occasions, but while Cruz expressed an interest in pursuing a romantic relationship, the victim did not.

    From December 2021 to mid-2023, Cruz engaged in a course of harassing and intimidating conduct toward the victim.  Cruz created numerous profiles on Grindr and other dating applications in which he impersonated the victim.  Cruz, pretending to be the victim, arranged for men to travel to the victim’s home for sexual encounters.  In some instances, Cruz, pretending to be the victim, instructed the men to enter the victim’s residence and attempt to have sex with the victim even if he resisted, as Cruz said the resistance would be part of a role-playing scenario. Numerous men arrived at the victim’s residence seeking sex as a result of their communications with Cruz.

    Cruz also sent the victim’s nude photographs to the victim’s family members, including his mother, brother, and cousins.  In a text message sent by Cruz to the victim’s mother from a spoofed phone number, Cruz falsely suggested that the victim had committed suicide.

    Cruz, 34, of Oak Park, Ill., pleaded guilty last year to a federal cyberstalking charge.  In addition to the prison term, U.S. District Judge Steven C. Seeger on Wednesday ordered Cruz to pay $17,313.18 in restitution to the victim.

    The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.

    “Defendant’s conduct shocks the conscience,” Assistant U.S. Attorney Jonathan L. Shih argued in the government’s sentencing memorandum. “He created significant risks that the victim would be hurt, injured, and raped.”

    MIL Security OSI –

  • MIL-OSI Security: Sapulpa Woman Sentenced for Second Degree Murder

    Source: Office of United States Attorneys

    TULSA, Okla. – A Sapulpa woman was sentenced today for Second Degree Murder in Indian Country, announced U.S. Attorney Clint Johnson.

    U.S. District Judge John D. Russell sentenced Christin Brianna Kelley, 35, to 240 months imprisonment, followed by five years of supervised release.

    Shortly after 4:00 a.m. on the morning of January 9th, 2024, Kelley and the victim, Isaac Smith, were sitting in a car in the parking lot of a gas station in Sand Springs. Kelley shot Isaac Smith several times, killing him. Law enforcement recovered the loaded pistol Kelley used in a trash can near the car.

    Kelley is a citizen of the Muscogee (Creek) Nation and will remain in custody pending transfer to the U.S. Bureau of Prisons.

    The FBI, the Sand Springs Police Department, and the Oklahoma State Bureau of Investigations investigated the case, and Assistant U.S. Attorneys Eric Johnston and Stephen Flynn prosecuted the case.

    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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    MIL Security OSI –

  • MIL-OSI USA: The United States Files False Claims Act Complaint Against Three National Health Insurance Companies and Three Brokers Alleging Unlawful Kickbacks and Discrimination Against Disabled Americans

    Source: US State of North Dakota

    The United States filed a complaint today under the False Claims Act (FCA) against three of the nation’s largest health insurance companies — Aetna Inc. and affiliates, Elevance Health Inc. (formerly known as Anthem), and Humana Inc. — and three large insurance broker organizations — eHealth, Inc. and an affiliate, GoHealth, Inc., and SelectQuote Inc. The United States alleges that from 2016 through at least 2021, the defendant insurers paid hundreds of millions of dollars in illegal kickbacks to the defendant brokers in exchange for enrollments into the insurers’ Medicare Advantage plans.

    Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may choose to enroll in health care plans (MA plans) offered by private insurance companies, such as defendants Aetna, Anthem, and Humana. Many Medicare beneficiaries rely on insurance brokers to help them choose an MA plan that best meets their individual needs. Rather than acting as unbiased stewards, the defendant brokers allegedly directed Medicare beneficiaries to the plans offered by insurers that paid brokers the most in kickbacks, regardless of the suitability of the MA plans for the beneficiaries. According to the complaint, the broker organizations incentivized their employees and agents to sell plans based on the insurers’ kickbacks, set up teams of insurance agents who could sell only those plans, and at times refused to sell MA plans of insurers who did not pay sufficient kickbacks.

    The United States further alleges that Aetna and Humana each conspired with the broker defendants to discriminate against Medicare beneficiaries with disabilities whom they perceived to be less profitable. Aetna and Humana allegedly did so by threatening to withhold kickbacks to pressure brokers to enroll fewer disabled Medicare beneficiaries in their plans. The United States alleges that, in response to these financial incentives from Aetna and Humana, the defendant brokers or their agents rejected referrals of disabled beneficiaries and strategically directed disabled beneficiaries away from Aetna and Humana plans.

    “Health care companies that attempt to profit from kickbacks will be held accountable,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We are committed to rooting out illegal practices by Medicare Advantage insurers and insurance brokers that undermine the interests of federal health care programs and the patients they serve.”

    “It is concerning, to say the least, that Medicare beneficiaries were allegedly steered towards plans that were not necessarily in their best interest – but rather in the best interest of the health insurance companies,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “The alleged efforts to drive beneficiaries away specifically because their disabilities might make them less profitable to health insurance companies are even more unconscionable. Profit and greed over beneficiary interest is something we will continue to investigate and prosecute aggressively. This office will continue to take decisive action to protect the rights of Medicare beneficiaries and vulnerable Americans.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA. Under the FCA, private parties can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.

    The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts are handling the matter, with valuable assistance from the Department of Health and Human Services (HHS) Office of Inspector General and the FBI.  The case is captioned United States ex rel. Shea v. eHealth, et al., No. 21-cv-11777.

    Trial Attorneys David G. Miller, Anna H. Jugo, Diana E. Curtis, and Sara B. Hanson of the Justice Department’s Civil Division and Assistant U.S. Attorneys Charles Weinograd and Julien Mundele for the District of Massachusetts are handling the matter.

    The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the FCA.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

    The claims asserted in the complaint are allegations only. There has been no determination of liability. 

    Note: Read the complaint here

    MIL OSI USA News –

  • MIL-OSI Security: The United States Files False Claims Act Complaint Against Three National Health Insurance Companies and Three Brokers Alleging Unlawful Kickbacks and Discrimination Against Disabled Americans

    Source: United States Attorneys General 12

    The United States filed a complaint today under the False Claims Act (FCA) against three of the nation’s largest health insurance companies — Aetna Inc. and affiliates, Elevance Health Inc. (formerly known as Anthem), and Humana Inc. — and three large insurance broker organizations — eHealth, Inc. and an affiliate, GoHealth, Inc., and SelectQuote Inc. The United States alleges that from 2016 through at least 2021, the defendant insurers paid hundreds of millions of dollars in illegal kickbacks to the defendant brokers in exchange for enrollments into the insurers’ Medicare Advantage plans.

    Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may choose to enroll in health care plans (MA plans) offered by private insurance companies, such as defendants Aetna, Anthem, and Humana. Many Medicare beneficiaries rely on insurance brokers to help them choose an MA plan that best meets their individual needs. Rather than acting as unbiased stewards, the defendant brokers allegedly directed Medicare beneficiaries to the plans offered by insurers that paid brokers the most in kickbacks, regardless of the suitability of the MA plans for the beneficiaries. According to the complaint, the broker organizations incentivized their employees and agents to sell plans based on the insurers’ kickbacks, set up teams of insurance agents who could sell only those plans, and at times refused to sell MA plans of insurers who did not pay sufficient kickbacks.

    The United States further alleges that Aetna and Humana each conspired with the broker defendants to discriminate against Medicare beneficiaries with disabilities whom they perceived to be less profitable. Aetna and Humana allegedly did so by threatening to withhold kickbacks to pressure brokers to enroll fewer disabled Medicare beneficiaries in their plans. The United States alleges that, in response to these financial incentives from Aetna and Humana, the defendant brokers or their agents rejected referrals of disabled beneficiaries and strategically directed disabled beneficiaries away from Aetna and Humana plans.

    “Health care companies that attempt to profit from kickbacks will be held accountable,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We are committed to rooting out illegal practices by Medicare Advantage insurers and insurance brokers that undermine the interests of federal health care programs and the patients they serve.”

    “It is concerning, to say the least, that Medicare beneficiaries were allegedly steered towards plans that were not necessarily in their best interest – but rather in the best interest of the health insurance companies,” said U.S. Attorney Leah B. Foley for the District of Massachusetts. “The alleged efforts to drive beneficiaries away specifically because their disabilities might make them less profitable to health insurance companies are even more unconscionable. Profit and greed over beneficiary interest is something we will continue to investigate and prosecute aggressively. This office will continue to take decisive action to protect the rights of Medicare beneficiaries and vulnerable Americans.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the FCA. Under the FCA, private parties can file an action on behalf of the United States and receive a portion of the recovery. The FCA permits the United States to intervene in and take over the action, as it has done here. If a defendant is found liable for violating the FCA, the United States may recover three times the amount of its losses plus applicable penalties.

    The Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts are handling the matter, with valuable assistance from the Department of Health and Human Services (HHS) Office of Inspector General and the FBI.  The case is captioned United States ex rel. Shea v. eHealth, et al., No. 21-cv-11777.

    Trial Attorneys David G. Miller, Anna H. Jugo, Diana E. Curtis, and Sara B. Hanson of the Justice Department’s Civil Division and Assistant U.S. Attorneys Charles Weinograd and Julien Mundele for the District of Massachusetts are handling the matter.

    The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the FCA.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

    The claims asserted in the complaint are allegations only. There has been no determination of liability. 

    Note: Read the complaint here

    MIL Security OSI –

  • MIL-OSI Security: Las Cruces Couple Charged with Evidence Tampering in Federal Investigation of Suspected Gang Member

    Source: Office of United States Attorneys

    ALBUQUERQUE – A former Doña Ana County Magistrate Judge and his wife are facing federal charges related to alleged evidence tampering in a case involving a suspected member of a Venezuelan criminal organization.

    According to court records, on April 24, 2025, Jose Luis “Joel” Cano, 67, and Nancy Ann Cano, 68, were arrested at their Las Cruces home following a federal investigation into their connection with Cristhian Ortega-Lopez, an undocumented Venezuelan national suspected of being affiliated with the Tren de Aragua gang. Federal authorities allege that the Canos hired Ortega-Lopez for home repairs and later allowed him to reside in their guesthouse.

    On February 28, 2025, Ortega-Lopez was arrested at the Cano residence and charged with being an illegal alien in possession of firearms. Investigators identified evidence, including clothing, tattoos, and social media content, which indicates Ortega-Lopez’s association with Tren de Aragua, a U.S.-designated Foreign Terrorist Organization (FTO).

    Following Ortega-Lopez’s arrest, authorities allege that Jose Cano destroyed a cellphone belonging to Ortega-Lopez by smashing it with a hammer and discarding the remains, believing it contained incriminating photos and videos. Nancy Cano is accused of conspiring to delete Ortega-Lopez’s Facebook account to eliminate evidence.

    “The allegations against Judge Dugan and Judge Cano are serious: no one, least of all a judge, should obstruct law enforcement operations,” said Attorney General Pamela Bondi. “Doing so imperils the safety of our law enforcement officers and undermines the rule of law. The Department of Justice will continue to follow the facts — no one is above the law.”

    “Sanctuary jurisdictions that shield criminal aliens endanger American communities,” said Deputy Attorney General Todd Blanche. “This Justice Department will not stand by as local officials put politics over public safety. Reckless sanctuary city policies create a sanctuary for one class—criminals. Those days are over.”

    Jose Cano is charged with tampering with evidence, while Nancy Cano faces conspiracy to tamper with evidence. Both have been released on $10,000 bond each, are prohibited from contacting Ortega-Lopez, and must restrict tenants and guests at their properties to those who can provide proof of citizenship or legal residency.

    “Judges are responsible for upholding our country’s laws. It is beyond egregious for a former judge and his wife to engage in evidence tampering on behalf of a suspected Tren de Aragua gang member accused of illegally possessing firearms,” said U.S. Attorney Ryan Ellison for the District of New Mexico. “The U.S. Attorney’s Office is committed to dismantling this foreign terrorist organization by disrupting its criminal operations in New Mexico. That starts by prosecuting those who support gang members — including judges.”

    U.S. Attorney Ryan Ellison and Jason T. Stevens, Special Agent in Charge of Homeland Security Investigations (HSI) El Paso, made the announcement today.

    Homeland Security Investigations investigated this case with assistance from FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. Assistant U.S. Attorneys Maria Y. Armijo, Randy Castellano, and Elizabeth Tonkin is prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Ukrainian National Extradited from Spain to Face Conspiracy to Use Ransomware Charge

    Source: Office of United States Attorneys

    Defendant Allegedly Took Part in Global Ransomware Scheme Using “Nefilim” Ransomware Strain

    Earlier today, in federal court in Brooklyn, a superseding indictment was unsealed charging Artem Stryzhak with conspiracy to commit fraud and related activity, including extortion, in connection with computers, for his role in a series of international attacks using the Nefilim ransomware.  Stryzhak, a Ukrainian citizen, was arrested in Spain in June 2024 and extradited to the United States on April 30, 2025.  The arraignment will be held later today before United States Magistrate Judge Robert M. Levy.

    John J. Durham, United States Attorney for the Eastern District of New York, and Christopher J.S. Johnson, Special Agent in Charge, Federal Bureau of Investigation, Springfield, Illinois Field Office (FBI), announced the charges.

    “As alleged, the defendant was part of an international ransomware scheme in which he conspired to target high-revenue companies in the United States, steal data, and hold data hostage in exchange for payment.  If victims did not pay, the criminals then leaked the data online,” stated United States Attorney Durham.  “The criminals who carry out these malicious cyber-attacks often do so from abroad in the belief that American justice cannot reach them.  The extradition of the defendant and today’s charges prove that they are wrong.”

    Mr. Durham also thanked the Justice Department’s Office of International Affairs, Computer Crime and Intellectual Property Section, the FBI’s New York Field Office and the Government of Spain for their crucial assistance in securing the arrest and extradition from Spain of Stryzhak.

    “The FBI has long recognized that combating international ransomware schemes requires strong partnerships,” stated FBI Special Agent in Charge Johnson.  “The successful extradition of the defendant is a significant achievement in that ongoing collaboration and it sends a clear message: those who attempt to hide behind international borders to target American citizens will face justice.”

    As alleged in the superseding indictment, Nefilim ransomware was deployed to encrypt computer networks in countries around the world, including in the Eastern District of New York.  These ransomware attacks caused millions of dollars in losses, both from ransomware payments and damage to victim computer systems.  The perpetrators of Nefilim typically customized the ransomware executable file for each victim, creating a unique decryption key and customized ransom notes.  If the victims paid the ransom demand, the perpetrators sent the decryption key, enabling the victims to decrypt the computer files locked by the ransomware program.

    In June 2021, Nefilim administrators gave Stryzhak access to the Nefilim ransomware code in exchange for 20 percent of his ransom proceeds.  He operated the ransomware through his account on the online Nefilim platform, known as the “panel.”  When he first obtained access to the panel, Stryzhak asked a co‑conspirator whether he should choose a different username from the one he used in other criminal activities in case the panel “gets hacked into by the feds.”

    Nefilim’s preferred ransomware targets were companies located in the United States, Canada, or Australia with more than $100 million in annual revenue. Stryzhak and others researched the companies to which they gained unauthorized access, including by using online databases to gather information about the victim companies’ net worth, size, and contact information.  In one exchange with Stryzhak in or about July 2021, a Nefilim administrator encouraged him to target companies in these countries with more than $200 million in annual revenue.

    After gaining sufficient access to the victims’ networks, Stryzhak and his co‑conspirators stole data in furtherance of their scheme to extort ransom payments from them.  Nefilim ransom notes typically threatened the victims that unless they came to an agreement with the ransomware actors, the stolen data would be published on publicly accessible “Corporate Leaks” websites, which were maintained by Nefilim administrators.

    The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.  If convicted of the charge, Stryzhak faces up to five years’ imprisonment.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Alexander F. Mindlin and Ellen H. Sise of the Eastern District of New York and Trial Attorney Brian Mund of the Computer Crime and Intellectual Property Section are in charge of the prosecution, with assistance from Paralegal Specialist Rebecca Roth.

    The Defendant:

    ARTEM ALEKSANDROVYCH STRYZHAK
    Age: 35
    Barcelona, Spain 

    E.D.N.Y. Docket No. 23-CR-324 (PKC)

    MIL Security OSI –

  • MIL-OSI USA: Internal FBI Emails Provide Behind-the-Scenes Look at Biden DOJ’s Plot to Take Down Trump Advisor Peter Navarro

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) is further exposing the Biden Justice Department’s (DOJ) aggressive efforts to target President Donald Trump and his associates. Internal Federal Bureau of Investigation (FBI) emails released by Grassley show Biden FBI agents planning and celebrating the indictment of Trump advisor Peter Navarro in 2022.

    The series of emails, which Grassley made public in a letter to Attorney General Pam Bondi and Federal Bureau of Investigation (FBI) Director Kash Patel, detail preparations by the Biden FBI and D.C. U.S. Attorney’s Office to arrest and press criminal charges against Navarro for contempt of Congress. Navarro was ultimately the first White House official in history to be jailed on a contempt of Congress conviction, serving four months in prison in 2024. Upon receiving news of Navarro’s impending indictment, former anti-Trump FBI official Timothy Thibault replied, “Wow. Great.”

    “According to the FBI’s own statistics, violent crime rose 4.5% in 2022. Meanwhile, the D.C. U.S. Attorney’s Office refused to prosecute two-thirds of the criminals arrested in our nation’s capital that very same year. Instead of focusing on the rampant cases of murder and rape perpetrated against everyday Americans, personnel in the FBI’s Washington Field Office and D.C. U.S. Attorney’s Office were obsessing over ways to target President Trump and his allies. Their conduct is disgraceful and un-American,” Grassley said of his letter. “Transparency brings accountability, which is why I’m requesting AG Bondi and Director Patel produce all records that further demonstrate this political rot.” 

    Grassley’s letter notes that three of the FBI officials involved in investigating Navarro also spearheaded the anti-Trump Arctic Frost investigation: Special Agent Walter Giardina, Supervisory Special Agent Blaire Toleman and Assistant Special Agent in Charge Timothy Thibault.

    Grassley earlier this week requested Patel declassify the FBI’s analysis of the congressional criminal referral issued for Nellie Ohr, a former Fusion GPS contractor involved in the Crossfire Hurricane investigation against Trump. Despite feloniously making false statements to Congress in 2018, the FBI and DOJ chose not to press charges against Ohr. 

    Read Grassley’s letter to Bondi and Patel HERE, and view the related FBI email records HERE.

    -30-

    MIL OSI USA News –

  • MIL-OSI Security: 2022 St. Louis Murder-For-Hire Results in Life Term in Prison

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Matthew T. Schelp on Thursday sentenced a St. Louis County, Missouri man to life in prison for the murder of a New Jersey man in 2022.

    Moreion Lindsey, 35, was found guilty at a trial in January in U.S. District Court in St. Louis of one count of conspiracy to commit murder-for-hire and one count of murder-for-hire. Evidence and testimony showed that Lindsey fatally shot Titus Armstead on April 21, 2022, in Penrose Park in St. Louis.

    Lindsey had been hired for the murder by Jerome Williams, at the request of a Seattle man, Ray Bradley, who trafficked cocaine and marijuana to St. Louis and other cities. Bradley falsely blamed Armstead for the theft of drugs and millions of dollars from a Bradley “stash” house in New Jersey. Bradley had Armstead fly to St. Louis, purportedly to protect him from possible harm. Bradley’s real goal was to have him killed in St. Louis because Williams said he knew someone who could do the job, evidence and testimony showed. Lindsey met Armstead at the airport and drove him to Penrose Park, where he fatally shot Armstead with a .45-caliber handgun, evidence showed. He then took a photo of the body using a prepaid “burner” phone to provide proof of the death to Williams and Bradley.

    Lindsey was later paid $15,000 by Williams. Williams disposed of evidence, including the burner phone, Armstead’s Social Security card and other belongings. Lindsey had the SUV that he used to drive Armstead to the park reported stolen and then used $5,000 to buy another SUV.

    In a victim impact letter to the court, Armstead’s sister wrote, “In a world full of limitless opportunities—where every day offers a chance to grow, create, and build a meaningful life—why choose a path of destruction and harm? It is deeply saddening that amidst all the gifts and possibilities life offers, some would resign themselves to a life of drugs and violence.”

    “Moreion Lindsey, you threw away your life for $15,000—an amount you could have earned in six months of full-time work at minimum wage,” she added. “Instead, you chose a path that has deprived your children of a father and your mother of her son. You will spend the rest of your life without freedom—unable to enjoy a warm shower, a comfortable bed, or even the simple joys of being with your family.”

    Williams, 52, pleaded guilty in December to a charge of destruction of evidence to obstruct a federal investigation. He was sentenced April 23 to 138 months in prison.

    Bradley, 46, pleaded guilty in June to one count of conspiracy to commit murder-for-hire and one count of conspiracy to distribute cocaine. He was sentenced in September to 25 years in prison.

    The case was investigated by the FBI, the St. Louis Metropolitan Police Department and the Atlanta Division of the Drug Enforcement Administration.

    MIL Security OSI –

  • MIL-OSI Security: Three North Carolina Men Arrested on Child Sex Abuse Material–Related Charges

    Source: Office of United States Attorneys

    RALEIGH, N.C. – A Wilmington man and a Bolivia man were arrested Tuesday on separate charges of child sex trafficking and producing child sexual abuse material. A Louisburg man, William Justin Lewis, was arrested today on child sexual abuse material charges.

    John Matthew Miller, 35, is charged with sex trafficking of a minor; enticing a minor to engage in illegal sexual conduct; and producing, distributing, receiving, and possessing child sexual abuse material. Miller was previously convicted of sexual battery and was a registered sex offender at the time of the offense. Miller faces at least 25 years and up to life in prison if convicted on all counts.

    Jesse Lonzo Teal, 72, also known as “Lonnie” and “Mark,” is charged with sex trafficking of a minor, enticing a minor to engage in illegal sexual conduct, producing child sexual abuse material, and using the internet to promote an illegal prostitution business enterprise. He faces at least ten years and up to life imprisonment if convicted on all counts.

    William Justin Lewis, 54, is charged with distributing child sexual abuse material and possessing child sexual abuse material. He faces at least five years’ imprisonment and up to twenty years’ imprisonment on each distribution count and up to twenty years’ imprisonment on the possession count.

    “These important cases reflect the unwavering commitment of our office and our justice system to protect the most vulnerable members of our community—our children. Wewill continue to work closely with the FBI and our other law enforcement partners to ensure that those who commit such heinous acts are held accountable,” said Acting U.S. Attorney Daniel P. Bubar. “There is no place in our community for those who prey on children, and we will do everything we can to not only seek justice for the victims, but to prevent additional child exploitation crimes.”

    “Producing and exchanging child sexual abuse material (CSAM) is a sickening reality in our world and it’s not just happening on the dark web. Pedophiles use the same platforms your family and friends use. No matter where this crime is occurring the FBI will find you. The Violent Crimes Against Children (VCAC) program is uniquely positioned to work complex global and multijurisdictional crimes against children with he capacity to counter threats of abuse and exploitation of children,” said Robert M. DeWitt, the FBI Special Agent in Charge in North Carolina.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina, and Robert M. DeWitt, FBI Charlotte Special Agent in Charge, made the announcement. The Federal Bureau of Investigation, New Hanover County Sherriff’s Office, Brunswick County Sherriff’s Office, Wilmington Police Department, Onslow County Sherriff’s Office, the Franklin County Sherriff’s Office, and the North Carolina State Bureau of Investigation are investigating the cases and Assistant U.S. Attorneys Charity L. Wilson and Erin C. Blondel are prosecuting the cases.

    Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos.7:25-CR-46-D-RN, 7:25-CR-47-UA-RJ, and 5:25-CR-94-D-KS.

    An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Washington Man Sentenced to 12 Years in Prison for Distributing Child Sexual Abuse Material

    Source: Office of United States Attorneys

    Spokane, Washington – Acting United States Attorney Richard R. Barker announced that United States District Judge Thomas O. Rice sentenced Donald Eugene Griffin, Jr., age 43, to 144 months in prison on charges of distributing child sexual abuse material. Judge Rice also imposed a lifetime of supervised release. Griffin will also be required to register as a sex offender.

    According to court documents and information presented in the sentencing hearing, in November 2019, the FBI developed information that Griffin was in possession of images of children being sexually abused.

    In March 2020, the FBI executed a warrant at Griffin’s home and seized Griffin’s electronic devices. Investigators found multiple images of child sexual abuse material on those devices, and Griffin admitted to using online platforms to access and obtain child sexual abuse material. Griffin also admitted to discussing having sex with a child and to distributing and receiving images of children being sexually abused.

    Agents investigated Griffin’s online accounts and uncovered chats between Griffin and individuals who appeared younger than 18. On several occasions, Griffin sent child sexual abuse material or solicited it, from those individuals. Griffin also consistently spoke to others about having sex with minors.

    In early 2024, a civilian contacted investigators and said they had been posing as an 11-year-old girl on Instagram and chatting with Griffin. Griffin sent naked photos of himself to this person he believed was a child and discussed having sex with her.

    “Mr. Griffin’s conduct was predatory and depraved. He not only trafficked in images of children being sexually abused – he actively sought out opportunities to engage with minors online in ways that were both explicit and dangerous,” said Acting United States Attorney Richard R. Barker. “I’m grateful to the FBI and AUSA Rebecca Perez for their outstanding work on this case and for bringing Mr. Griffin to justice.”

    “Not only did Mr. Griffin possess and distribute disturbing images depicting child sexual assault, but he was even engaging in sexually explicit chats with someone he believed to be a minor.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “It is apt this sentence is being handed down on the final day of Child Abuse Prevention Month. Protecting and finding justice for child victims remains a priority of the FBI, both in the State of Washington and nationwide.”

    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 https://www.justice.gov/psc.

    This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rebecca R. Perez.

    2:24-cr-00065-TOR

    MIL Security OSI –

  • MIL-OSI Security: Elizabeth Man Sentenced to 15 Years’ Imprisonment for Spree of Armed Robberies

    Source: Office of United States Attorneys

    TRENTON, N.J. – An Elizabeth, New Jersey man was sentenced to 15 years in prison for committing a series of three armed robberies, U.S. Attorney Alina Habba announced.

    Dayshawn Brimfield, of Elizabeth, New Jersey, previously pleaded guilty before United States District Judge Zahid N. Quraishi to a five-count Information, charging him with one count of bank robbery, two counts of Hobbs Act robbery, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of interstate transportation of a stolen motor vehicle. Judge Quraishi imposed sentence in Trenton federal court.

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

    On April 2, 2021, Brimfield robbed a bank in Hazlet, New Jersey. Brimfield entered the bank and handed a teller a note, which stated, among other things “This is a Robbery I have a Gun I will Kill Someone if you do not follow these instructions.” On April 17, 2021, Brimfield stole a motor vehicle in Elizabeth, New Jersey, which he used as the getaway car in his later robberies. On April 20, 2021, Brimfield robbed a convenience store in Aberdeen, New Jersey. Brimfield entered the store and displayed the handgun that he was carrying to the cashier before taking money from the store’s register and fleeing the scene. On April 20, 2021, Brimfield robbed another convenience store in South Plainfield, New Jersey. Brimfield entered the store and pointed a handgun at the cashier. Brimfield took the cashier’s wallet and cellular phone before emptying the store’s registers and fleeing the scene. Brimfield fled New Jersey in the stolen vehicle, but was ultimately apprehended by law enforcement in Lancaster County, Nebraska. Brimfield led officers on a brief, high-speed chase before crashing into a fence on the side of the highway.

    In addition to the prison term, Judge Quraishi sentenced Brimfield to 5 years of supervised release and ordered restitution to the victims of Brimfield’s offenses.

    U.S. Attorney Habba credited special agents of the FBI, Newark Division, Red Bank Resident Agency, under the direction of Special Agent in Charge Terence G. Reilly; detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago; as well as officers of the Hazlet Police Department, under the direction of Chief Robert Mulligan; the South Plainfield Police Department, under the direction of Chief Peter J. Papa; and the Nebraska State Patrol with the investigations leading to this sentencing.

    The government is represented by Assistant U.S. Attorney Alexander E. Ramey of the U.S. Attorney’s Office’s Criminal Division in Trenton.

                                                               ###

    Defense Counsel:        Teri S. Lodge, Esq. 

    MIL Security OSI –

  • MIL-OSI Security: FBI Agents Arrest San Antonio Man for Alleged Child Pornography Charges

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

    SAN ANTONIO – A San Antonio man was arrested Tuesday in San Antonio on criminal charges related to his alleged possession of child pornography.

    According to court documents, Zaid Mashhour Haddad allegedly streamed child sexual abuse material (CSAM) from his computer to a TV mounted on the bedroom wall of his apartment. One of the videos that allegedly depicted child pornography was displayed on Haddad’s TV as the FBI executed a search warrant on his apartment. The video was allegedly being streamed from a link Haddad received through Telegram. Agents reviewed and documented the contents of the link, which allegedly contained 181 different videos.

    The complaint alleges that the investigation into Haddad’s activity showed Haddad received links containing CSAM from direct message threads on Telegram, which were stored in the Telegram application on his phone. Details in the complaint allege that the links often led to virtual Zoom meetings where CSAM would be live streamed using content from a separate file sharing application.

    Haddad is charged with one count of possession of child pornography and one count of knowingly accessing with intent to view any material that contained an image of child pornography. If convicted, Haddad faces up to 20 years in prison, lifetime supervised release, a fine of up to $250,000, an additional restitution amount, and the requirement to register as a sex offender. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

    The FBI is investigating the case.

    Assistant U.S. Attorney Tracy Thompson is prosecuting the case.

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

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

    ###

    MIL Security OSI –

  • MIL-OSI USA: Largest joint immigration operation in Florida history leads to 1,120 criminal alien arrests during weeklong operation

    Source: US Immigration and Customs Enforcement

    MIAMI — U.S. Immigration and Customs Enforcement, along with law enforcement partners from the Department of Homeland Security, U.S. Customs and Border Protection, and the state of Florida, led a first-of-its-kind statewide operation April 21 to April 26 that netted 1,120 criminal illegal alien arrests — the largest number in a single state in one week in ICE’s history. Sixty-three percent of those arrested had existing criminal arrests or convictions.

    Arrests included 378 criminal illegal aliens with final orders of removal issued by an immigration judge. Officers arrested various violent offenders, gang members, sex offenders, fugitives from justice and those who pose significant public safety threats. Arrests include members of several different notoriously violent foreign terrorist organizations such as MS-13, Tren de Aragua, Brown Pride Aztecas, Barrio Azteca, Surenos (sur-13) and 18th Street Gang.

    The countries of origin of those arrested include the following: 

    • 437 from Guatemala
    • 280 from Mexico
    • 153 from Honduras
    • 48 from Venezuela
    • 24 from El Salvador
    • 178 from elsewhere

    Those arrested who have final orders of removal or returned to the United States illegally after being deported are subject to immediate removal from the country. The remaining aliens are in ICE custody awaiting due process before an immigration judge or pending travel arrangements for removal.

    “Last week’s operational success of arresting more than 1,100 criminal illegal aliens was truly a collaborative whole-of-government effort by our federal, state and local law enforcement partners in Florida,” said ICE Deputy Director Madison Sheahan. “Every day, our officers take to the streets and put their lives on the line to apprehend and remove dangerous criminal aliens, transnational gang members and foreign fugitives who have illegally entered the U.S. We are united in our determination to restore integrity to our nation’s immigration system and enhance public safety for all Americans.”

    The state of Florida leads the nation with 287(g) partnerships. This force-multiplying program is named for Section 287(g)(1) of the Immigration and Nationality Act, which authorizes ICE to delegate specified immigration officer functions to state and local law enforcement officials under the agency’s direction and supervision.

    “I’ve insisted that Florida be the tip of the spear when it comes to state support of federal immigration enforcement. The success of Operation Tidal Wave is proof of our commitment,” said Florida Gov. Ron DeSantis. “Florida is proud to work closely with the Trump administration and help deliver on the 2024 mandate from America that our borders be secured and our immigration laws be followed. We will continue to engage in broad interior enforcement efforts. Thank you to DHS, ICE, CBP, Florida Department of Law Enforcement, Florida Highway Patrol, and Florida’s Fish and Wildlife Commission, Florida National Guard, Florida’s Division of Emergency Management, and everyone involved for your contributions to this effort.”

    “Dangerous criminals have no place in our country. We will apply CBP’s collective intelligence and operational capabilities to target those here illegally who endanger our citizens and the American way of life,” said Miami Sector Border Patrol Chief Patrol Agent Jeffrey Dinise. “Collaborative enforcement efforts such as Operation Tidal Wave, with our DHS and state of Florida law enforcement partners, leverages each of our unique authorities to protect against threats. We look forward to continuing the vital partnership with the State of Florida as we all work toward our shared goal of keeping our communities safe and our nation secure.”

    During the operation, federal, state and local partners helped arrest criminal illegal aliens around Florida. ICE used field office resources, alongside federal partners, to identify priority targets for enforcement action. Law enforcement partners included ICE Homeland Security Investigations, U.S. Customs and Border Protection, the FBI, the DEA, the ATF and the U.S. Marshals Service.

    The state of Florida, under DeSantis’ direction, provided significant assistance during the statewide operation from multiple agencies.

    In addition, the following sheriff’s offices also provided significant assistance to ICE during the operation: 

    • Alachua County.
    • Baker County.
    • Brandford County.
    • Brevard County.
    • Clay County.
    • Hernando County.
    • Hillsborough County.
    • Indian River County.
    • Orange County.
    • Pinellas County.
    • St. John’s County.
    • Sumter County.
    • Volusia County.

    Many of the criminal aliens arrested during the operation have illegally entered and been removed from the U.S. numerous times and been convicted of multiple criminal offenses. A few of the most egregious examples include:

    • Ciro Ramon Castaneda Perez, a criminal illegal alien from Venezuela, and known member of the violent gang Tren de Aragua, was arrested at his residence in Holly Hill. On April 12, the Port Orange Police Department pulled over Castaneda-Perez for a traffic violation and found cocaine residue and paraphernalia in his vehicle. Castaneda-Perez has a final order of removal issued by an immigration judge.
    • Carlos Eduardo Perez Perez, a criminal illegal alien and suspected associate of the gang Tren de Aragua, was arrested April 25 at the ICE Enforcement and Removal Operations Tampa field office. On July 19, 2024, Perez was first encountered and arrested by U.S. Border Patrol at a checkpoint near Sierra Blanca, Texas, after he illegally entered the U.S. without parole or inspection. An immigration judge ordered Perez removed to Venezuela Aug. 26, 2024.
    • Rafael Juarez Cabrera, a criminal illegal alien from Guatemala and documented MS-13 gang member, was arrested after being convicted of illegal reentry by a previously removed alien. He has been removed three times prior. He will remain in custody pending prosecution for illegal reentry after deportation
    • Luis Melito Gonzalez Arrellanno, a criminal illegal alien from Mexico and active member of the Brown Pride Aztecas gang, was arrested with a criminal history that includes armed carjacking, firing a weapon, fraud and a conviction for illegal reentry after deportation. He has a final order of removal.
    • Aron Isaak Morazan Izaguirre, a criminal illegal alien from Honduras, is an active known or suspected terrorist as a member of the 18th Street Gang. Izaguirre is a two-time illegal reentry and will remain in custody pending removal.
    • Miguel Rodriguez Gonzalez, a criminal illegal alien from Honduras, is an active member of the Barrio Azteca gang. His criminal history includes assault, burglary, possession of marijuana, fraud and a conviction of illegal reentry after deportation. He will be held in custody pending his removal from the country.

    For more news and information on ICE’s efforts to enforce our nation’s immigration laws and bolster public safety, national security and border security in Florida, follow us on X at @EROMiami.

    Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

    Video b-roll of immigration enforcement action can be found here.

    MIL OSI USA News –

  • MIL-OSI Security: FIVE PEOPLE SENTENCED FOR FRAUD AND IDENTITY THEFT TARGETING ELDERLY RETIRED FLORIDA SCHOOL DISTRICT EMPLOYEES

    Source: Office of United States Attorneys

    TALLAHASSEE, FLORIDA – Five defendants who were convicted of a conspiracy scheme to defraud the retirement accounts of elderly and retired Florida school district employees have been sentenced after three defendants pleaded guilty and two defendants were found guilty by a federal jury. Michelle Spaven, Acting United States Attorney for the Northern District of Florida, announced the sentences of the following defendants:

    • Lambert Aguebor, 33, of Miramar, Florida, has been sentenced to 71 months in federal prison after previously being found guilty by a federal jury of Conspiracy to Commit Wire Fraud and Conspiracy to Commit Money Laundering.
    • Floyd Bostic, 42, of Tallahassee, Florida, has been sentenced to 87 months in federal prison after previously being found guilty by a federal jury of Conspiracy to Commit Wire Fraud, three counts of Wire Fraud, Aggravated Identity Theft, and Conspiracy to Commit Money Laundering, 16 counts of Money Laundering, and Operating an Unlicensed Money Transmitting Business.
    • Grace Aguebor, 36, of Miramar, Florida, has been sentenced to 70 months in federal prison after previously pleading guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft.
    • Ronald Vargas, 38, of Osteen, Florida, has been sentenced to 24 months in federal prison after previously pleading guilty to Conspiracy to Commit Wire Fraud, Aggravated Identity Theft, and Conspiracy to Commit Money Laundering.
    • Sarina Levy, 34, of Pembroke Pines, Florida, has been sentenced to 6 months and 1 day in federal prison, to be followed by 6 months of home detention, after previously pleading guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft.

    “Americans are fed up with the constant barrage of scams that maliciously target the elderly,” said Acting United States Attorney Spaven. “With the assistance of our dedicated law enforcement partners, we are committed to investigating and aggressively prosecuting those who seek to steal the hard-earned savings of our senior citizens.”

    Evidence presented at trial and court records show that Vargas worked as a Retirement Specialist at a Tallahassee-based company that administers a retirement 401(k) savings program whose participants are comprised largely of Florida school district employees or prior employees. Between January 2022, and March 2022, Vargas conspired with siblings Grace Aguebor and Lambert Aguebor to steal the retirement funds from the accounts of elderly retired school district employees—some of whom were deceased. Through his position, Vargas had access to the retired employees’ personally identifiable information (“PII”) and oversaw the processing of withdrawal requests from the 401(k) accounts. Vargas provided Grace and Lambert with PII of elderly 401(k) participants whose retirement accounts appeared to be dormant so the PII could be used to prepare fraudulent withdrawal request forms for these accounts.

    The fraudulent withdrawal request forms were then faxed to the company where Vargas worked so he could process them. Grace and Bostic personally faxed some of the fraudulent withdrawal request forms; in other cases, the fraudulent forms were given to other conspirators, including Levy, to fax. Once Vargas processed the forms, the stolen retirement funds were transferred to bank accounts controlled by Grace, Bostic, and other conspirators. In total, the conspirators withdrew and attempted to withdraw retirement funds from 25 different 401(k) accounts, resulting in a net total of $1.1 million actually being stolen.

    Evidence presented to the jury showed that Bostic also served as a money launderer who received over half of the stolen funds into his personal bank accounts and those of his Tallahassee-based music promotion businesses. Bostic then transferred some of the stolen funds between his various bank accounts in an effort to conceal or disguise its nature, location, source, or ownership. Evidence also showed that Bostic used some of the stolen funds to purchase a residence and pay for his personal and business expenses. Bostic also withdrew over $400,000 worth of stolen funds in cash at various banks and ATMs in Tallahassee and central Florida. The jury also saw evidence which showed that Bostic communicated and coordinated with Lambert Aguebor about the transfer of the stolen funds and to arrange meetings in central Florida.

    In addition to their prison sentences, the defendants were ordered to pay restitution totaling approximately $1,000,000 to the victims. The defendants’ imprisonment will be followed by three years of supervised release.

    This case resulted from a joint investigation by the Tallahassee Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Justin M. Keen.

    “Motivated by sheer greed, these individuals conspired to take advantage of Florida’s public servants, and their punishments mark an important step in holding these fraudsters accountable,” said FBI Jacksonville Acting Special Agent in Charge Jason J. Carley. “Fraud and corruption pose a fundamental threat to our national security and our way of life, and the FBI and our partners will continue to identify and bring to justice anyone who takes advantage of hardworking Americans, and especially educators who dedicate their lives to supporting our children.”

    “As law enforcement professionals, it is our duty to protect our community, especially our most vulnerable members, from those who seek to exploit them for personal gain,” said Chief Lawrence Revell of the Tallahassee Police Department. “This case is a clear example of how greed can drive individuals to harm others, and we remain committed to working alongside our federal partners to ensure those who commit such crimes are held accountable.”

    If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.

    More information about the department’s efforts to help American seniors is available at www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.

    The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney Charges Newburgh Man For Using Discord Platform To Extort Sexually Explicit Material From A Minor Victim

    Source: Office of United States Attorneys

    Jay Clayton, the United States Attorney for the Southern District of New York and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint charging CARSEN MANSFIELD with extortionate interstate communications.  MANSFIELD was arrested on Tuesday, April 29 in Newburgh, New York, and was presented before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court.

    U.S. Attorney Jay Clayton said: “As alleged Carsen Mansfield used Discord to track down and exploit the minor female victim.  Protecting our children is central to our mission, and we will prosecute those who victimize them to the fullest extent of the law.”

    FBI Assistant Director in Charge Christopher G. Raia said: “Carsen Mansfield allegedly extorted and threatened a minor in another state to provide sexually explicit images.  Mansfield’s alleged actions violated a vulnerable victim’s privacy to satiate his personal disturbing desires.  The FBI remains committed to protecting any minor from those who wish to inflict sexual harm, regardless of where they are located.”

    As alleged in the Complaint:[1] 

    On or about August 4, 2024, MANSFIELD, using the communication platform Discord, contacted a minor female victim (“Victim-1”) and sent her a series of photographs that Victim-1 recognized as nude photographs of her that she had taken previously.  MANSFIELD proceeded to threaten to send the nude photographs of Victim-1 to her friends and family if she did not send him more nude or otherwise sexually explicit materials, writing “Well I have these pictures and if you don’t send me more I’m going to send them to your friends and family . . . Your [sic] my slut now Andy [sic] failure to make me happy will end up exposed to your friends and family.” 

    Any individuals with information concerning CARSEN MANSFIELD and any individuals who may have encountered someone using the Discord username “noname45.#0” or the X (formerly Twitter) username “expogirlsss” please contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or https://tips.fbi.gov.

    *                *                *

    MANSFIELD, 23, of Newburgh, New York, is charged with one count of extortionate interstate communications, which carries a statutory maximum sentence of two years in prison.

    The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

    Mr. Clayton praised the outstanding investigative work of the FBI’s Hudson Valley Safe Streets Task Force and Detroit Field Office, as well as the Town of Newburgh Police Department.

    This case is being handled by the Office’s White Plains Division.  Assistant U.S. Attorney Margaret N. Vasu is in charge of the prosecution.

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

    [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Billings Man Arraigned on Child Pornography Charges

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

    BILLINGS – A Billings man accused of distributing child pornography appeared today for arraignment, U.S. Attorney Kurt Alme said.

    The defendant, Kole David Kuntz, 41, pleaded not guilty to an indictment charging him with 2 counts of distribution of child pornography.  If convicted of the charges contained in the indictment, Kuntz faces a mandatory minimum 5 years to 20 years of imprisonment, a $250,000 fine, and 5 years to lifetime of supervised release.

    U.S. Magistrate Judge Tim Cavan presided. Kuntz was released pending further proceedings.

    The indictment alleges that in November 2024, the defendant knowingly distributed a visual depiction using any means or facility of interstate commerce, including by computer and the internet, the production of such visual depiction involved the use of a minor engaging in sexually explicit conduct, and the visual depiction was of such conduct.

    Assistant U.S. Attorney Zeno Baucus is prosecuting the case. The FBI conducted the investigation.

    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.

    The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

    PACER case reference. 25-40.

    The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

    MIL Security OSI –

  • MIL-OSI Security: Wolf Point Residents Arraigned on Murder Charge

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

    GREAT FALLS – Two individuals accused of murdering a man on the Fort Peck Indian Reservation were arraigned today, U.S. Attorney Kurt Alme said.

    Abrianne Lillian Deserly, 24, and Calvin Florin Lester, 35, both of Wolf Point, pleaded not guilty to an indictment charging both defendants with second degree murder. If convicted of the charge contained in the indictment, the defendants each face a maximum term of imprisonment of life, a $250,000 fine, and five years of supervised release.

    U.S. Magistrate Judge John Johnston presided. Both defendants were detained pending further proceedings.

    The indictment alleges that on February 26, 2025, near Wolf Point, the defendants unlawfully and with malice aforethought, that is recklessly with extreme disregard for human life, killed John Doe, and aided and abetted the same.

    Assistant U.S. Attorney Kalah Paisley is prosecuting the case. The FBI, BIA, Fort Peck Tribes Department of Law & Justice, and Roosevelt County Sheriff’s Office conducted the investigation.

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

    The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

    PACER case reference. 25-45.

    The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

    MIL Security OSI –

  • MIL-OSI Security: Lame Deer Man Sentenced to Two Years in Prison for Trafficking Methamphetamine on the Northern Cheyenne Indian Reservation

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

    BILLINGS – A Lame Deer man who distributed methamphetamine on the Northern Cheyenne Indian Reservation was sentenced today to 24 months in prison to be followed by 6 years of supervised release, U.S. Attorney Kurt Alme said.

    Shannon Tyrone Seminole, 50, pleaded guilty in October 2024 to one count of possession with intent to distribute methamphetamine.

    U.S. District Judge Susan Watters presided.

    The government alleged in court documents that in the spring of 2022, law enforcement received reports that Shannon Seminole was selling methamphetamine on the Northern Cheyenne Indian Reservation. Agents arranged two controlled purchases from Seminole, one in December 2022 and the other in September 2023. Following the second buy, agents executed a search of Seminole’s residence. During the search, agents seized an airsoft pistol and an AR-15 upper receiver and bolt.

    In an interview, Seminole admitted to providing methamphetamine to the many drug users that helped him with his work. He admitted selling methamphetamine starting when he was released from jail three years prior. His source provided him with a regular supply of meth that he would sell. Seminole also admitted he carried firearms when selling drugs.

    Assistant U.S. Attorney Julie Patten prosecuted the case, and the investigation was conducted by the FBI.

    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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Owner of Kansas City Health Care Company Sentenced for Bankruptcy Fraud

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

    KANSAS CITY, Mo. – A Stillwell, Ks., man was sentenced in federal court on April 29, 2025, for bankruptcy fraud related to his healthcare company.

    William L. Said, 62, was sentenced by U.S. District Judge Greg Kays to 21 months in prison without parole.  The court also ordered Said to pay $85,000 in restitution, which was paid at the time of sentencing.

    On Oct. 1, 2024, Said plead guilty to one count of bankruptcy fraud.  Said admitted that he fraudulently transferred and concealed assets in a bankruptcy case.

    Said was the owner, president, and officer in charge of Restorative Brain Clinic, Inc., which provided Transcranial Magnetic Stimulation services.  Restorative Brain Clinic, Inc. filed a voluntary bankruptcy case in July 2021.  A debtor-in-possession account was established as part of the bankruptcy.  Restorative Brain Clinic’s operating funds were stored in the debtor-in-possession account and Said was the only authorized person who had access to the account.

    In Sept. 2021, the United States Trustee for Region 13, which includes the Western District of Missouri, filed a motion to convert Restorative Brain Clinic’s bankruptcy to a Chapter 7 liquidation case based on gross mismanagement of the estate and a continuing loss or diminution of assets of the estate.  On Oct. 14, 2021, U.S. Bankruptcy Judge Dennis R. Dow presided over an evidentiary hearing on the conversion motion.  At the conclusion of evidence, Judge Dow granted the motion to convert the case to a Chapter 7 bankruptcy and found there was mismanagement of assets, self-dealing, and inadequate corporate controls, among other issues.  Judge Dow ordered the United States Trustee to appoint a Chapter 7 trustee to identify assets to pursue for unsecured creditors. The hearing concluded at 4:12 p.m.

    Minutes after the conversion hearing, where Said was displaced as the fiduciary of the bankruptcy estate and the Bankruptcy Court ordered that Said no longer had control over Restorative Brain Clinic’s assets, Said initiated several wire transfers of money from the debtor-in-possession account. At 4:16 p.m., Said wired $5,000 to his own bank account from the debtor-in-possession account.  At 4:25 p.m., Said initiated a wire transfer for $12,400 from the debtor-in-possession account to the bank account of a shareholder in Restorative Brain Clinic.  Said also wired $16,300 to a medical staffing company and attempted to wire $5,760 to Restorative Brain Clinic’s landlord.  The debtor-in-possession account was frozen before the funds to pay the landlord left the account.

    Said also admitted to selling leased medical equipment. Restorative Brain Clinic leased medical equipment manufactured by AB Sciex, LLC in 2018.  Said was also the owner of Cox Scientific, which sold medical equipment.  In 2019, Cox Scientific agreed to sell AB Sciex medical equipment to a California company.  Said sent an electronic invoice to the owner of the California company.  The invoice contained a description of the equipment Said was selling along with an itemized list of the equipment’s components, which included a unique serial number for each component.  The list of components Said sent to the California company were the same components leased by Restorative Brain Clinic.  Said admitted that he scratched out and altered serial numbers on the AB Sciex equipment to conceal he was selling equipment through Cox Scientific that was being rented by Restorative Brain Clinic, Said.  Then, Said used the altered serial numbers on the invoice to the California company.

    The California company paid $85,000 for the AB Sciex equipment that Said sold to them and which Said did not own.

    This case was prosecuted by Special Assistant U.S. Attorneys Bradley Cooper and Adam Miller. It was investigated by the FBI and the United States Trustee for Region 13. 

    MIL Security OSI –

  • MIL-OSI Security: Kentucky man sentenced to 10+ years in federal prison for attempted sex offenses against a child in southern Illinois

    Source: Office of United States Attorneys

    BENTON, Ill. – A district judge sentenced a Paducah, Kentucky, man to 121 months’ imprisonment for attempting to entice a minor in southern Illinois to engage in illegal sexual activity.

    In October, a federal jury returned guilty verdicts for Robert R. Rodriguez, 41, on one count of attempted enticement of a minor and one count of soliciting an obscene visual depiction of a minor.

    “Those who target children for sex crimes sicken us all. The federal justice system will relentlessly pursue and prosecute these offenders to ensure they face severe consequences for their actions,” said U.S. Attorney Steven D. Weinhoeft.

    According to court documents and evidence presented during the trial, Rodriguez initiated conversation with an undercover federal agent on an online social media platform in May 2023. In the messages, Rodriguez discussed meeting with a purported 9-year-old child to engage in sexual activity and requested child sexual abuse material.

    On May 10, 2023, law enforcement arrested Rodriguez in Marion, Illinois, when he tried to meet with the purported 9-year-old child. 

    “This sentencing makes one thing clear: the FBI Springfield Field Office is taking decisive action to protect the children of Illinois. We will use every tool at our disposal to stop those who seek to do them harm, and with our partners at the Department of Justice, we will pursue the highest penalties for these crimes.”

    Following imprisonment, Rodriguez will serve seven years of supervised release.

    FBI Springfield Field Office led the investigation, and Assistant U.S. Attorneys Tom Leggans and David Sanders prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.

    MIL Security OSI –

  • MIL-OSI Security: Jemez Man Pleads Guilty to Sexual Abuse of Minors

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

    ALBUQUERQUE – A Jemez man pleaded guilty to two counts of sexual abuse of a minor.

    According to court documents, Tyler Chinana, 35, an enrolled member of the Jemez Pueblo, admitted that in 2012, he engaged in unlawful sexual contact with a minor victim who was under the age of 12 at the time. In a separate incident, Chinana also admitted that in November 2022, he engaged in similar unlawful sexual contact with a second minor victim who was also under the age of 12.

    At sentencing, Chinana faces up to life in prison followed by no less than five years and up to life of supervised release.

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

    The FBI Albuquerque Field Office investigated this case with the assistance of the Jemez Pueblo Police Department. Assistant U.S. Attorneys Meg Tomlinson and Timothy Trembley are prosecuting the case.

    MIL Security OSI –