NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Johnstown Resident Pleads Guilty to Trafficking Crack Cocaine

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

    JOHNSTOWN, Pa. – A resident of Johnstown, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.

    Kevin Johnson, 39, pleaded guilty before United States District Judge Marilyn J. Horan to Count One of the Superseding Indictment.

    In connection with the guilty plea, the Court was advised that, from in and around March 2021 to July 2021, in the Western District of Pennsylvania, Johnson conspired to distribute and possess with intent to distribute 28 grams or more of a mixture and substance containing cocaine base in the form commonly known as crack. Johnson was intercepted on a federal wiretap obtaining quantities of the crack that he distributed to others.

    Judge Horan scheduled sentencing for June 26, 2025. The law provides for a total sentence of not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

    Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation that led to the prosecution of Johnson. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

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

    MIL Security OSI –

  • MIL-OSI Security: Fort Hall Man Sentenced to Five Years for Robbery at Knifepoint

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

    POCATELLO – Malik Marin Ish, 23, of Fort Hall, was sentenced to 5 years in prison for robbery, Acting U.S. Attorney Justin Whatcott announced today.  Chief U.S. District Court Judge David C. Nye sentenced Ish on March 3, 2025, to 54.5 months in federal prison in addition to the 8.5 months of tribal jail time, which Ish served leading up to his sentencing.

    According to court records, on February 19, 2024, Ish approached a man getting gasoline in his Jeep Cherokee at a gas station in Fort Hall and demanded the man’s vehicle at knifepoint.  The man and Ish struggled for a time and Ish tried to stab him.  Ish took the Jeep and crashed it a short distance away.  Fort Hall Police officers located Ish later that day and recognized Ish as the robbery suspect, based on the unique red clothing he was wearing.  Police officers also obtained video surveillance from the gas station, which showed Ish as the robber.

    Chief Judge Nye also ordered Ish to serve three years of supervised release following his prison sentence.  Ish pleaded guilty to the charge in December 2024.  Ish will also concurrently serve 21 months for a supervised release violation from an earlier conviction.

    Acting U.S. Attorney Whatcott thanked the Federal Bureau of Investigation and the Fort Hall Police Department for their joint investigation in this case.  Assistant U.S. Attorney Jack Haycock prosecuted this case.

    ###

    MIL Security OSI –

  • MIL-OSI: Bigbank 2024 Audited Annual Report

    Source: GlobeNewswire (MIL-OSI)

    The Management Board of Bigbank has compiled the audited Annual Report for 2024. Compared to the unaudited interim report published on 26 February, there are no differences in the financial results.

    The consolidated Annual Report for 2024 of Bigbank AS is attached to this announcement and is also available on the bank’s investor page: https://investor.bigbank.eu/reports.

    The report will be presented for approval at the General Meeting of Shareholders.

    Growth in Operating Volumes in 2024

    • Total assets grew to 2.78 billion euros, increasing by 491 million euros (+21%).
    • The deposit portfolio grew to 2.39 billion euros, increasing by 456 million euros (+24%).
    • The gross loan portfolio grew to 2.2 billion euros, increasing by 535 million euros (+32%).
    • Net profit totalled 32.3 million euros.
    • Return on equity (ROE) stood at 12.5%.

    Bigbank AS (www.bigbank.eu), with over 30 years of operating history, is a commercial bank owned by Estonian capital. As of 31 December 2024, the bank’s total assets amounted to nearly 2.8 billion euros, with equity close to 270 million euros. Operating in nine countries, the bank serves more than 167,000 active customers and employs over 500 people. The credit rating agency Moody’s has assigned Bigbank a long-term bank deposit rating of Ba1, along with a baseline credit assessment (BCA) and an adjusted BCA of Ba2.

    Argo Kiltsmann
    Member of the Management Board
    Tel: +372 53 930 833
    Email: Argo.Kiltsmann@bigbank.ee 
    www.bigbank.ee

    Attachments

    The MIL Network –

  • MIL-OSI Security: Man From Clear Lake, Iowa, Pleads Guilty to Producing and Distributing Child Pornography

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

    A man who produced and distributed child pornography pled guilty today in federal court in Sioux City, Iowa.

    David Bradley Garrison, age 43, from Clear Lake, Iowa, was convicted of sexual exploitation of a child and distribution of child pornography.

    At the plea hearing, Garrison admitted that he sexually exploited a child in July 2021 by producing a visual depiction of a minor engaging in sexually explicit conduct. He also admitted that between June 2021 and August 2021, he distributed visual depictions of child pornography to other individuals.

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

    Sentencing before United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Garrison remains in custody of the United States Marshal pending sentencing. Garrison faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 50 years’ imprisonment, a $500,000 fine, $95,200 in special assessments, and a lifetime term of supervised release following any imprisonment.

    The case is being prosecuted by Assistant United States Attorneys Devra T. Hake and Dillan Edwards, and it was investigated by the Department of Homeland Security, U.S. Customs and Border Protection, Federal Bureau of Investigation, Iowa Department of Public Safety Division of Criminal Investigation, and Rockwell Police Department. 

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

    The case file number is 24-CR-3054.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: FBI Washington Field Office Statement on the 18th Anniversary of the Abduction of Robert A. Levinson

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

    Sunday, March 9, marks the 18th anniversary of the abduction of retired FBI Special Agent Robert A. “Bob” Levinson from Kish Island, Iran, in 2007. Bob served his country as a Drug Enforcement Administration agent for six years and then as an FBI special agent for 22 years. He retired in 1988.

    March 9 also marks National Hostage and Wrongful Detainee Day, a time for our country to pause and remember all American citizens unjustly held abroad—including Bob.

    “Our job is to protect the American people and to hold accountable those who harm our citizens, so this case hits especially close to home for all of us at the FBI, where Bob served for so long,” FBI Director Kash Patel said. “It’s been 18 years since Bob’s abduction, and Iran has continued to target U.S. citizens, including the president, other government officials, and dissidents who criticize the regime in Tehran. Our nation will not tolerate threats to any Americans, at home or abroad, and we demand that Iran make good on its past promises to provide answers about what happened to Bob.”

    Bob should be celebrating his 77th birthday with his wife, children, and grandchildren next week. Instead, Bob’s family, friends, and colleagues mark yet another year without him. As the FBI remembers Bob, we renew our commitment to resolving his case and holding the Iranian regime responsible for its role in Bob’s disappearance. The investigation continues to develop new leads and intelligence, and the FBI will pursue all options to hold every Iranian official who was involved to account.

    As part of our ongoing efforts, the FBI recently released seeking information posters featuring two senior Iranian intelligence officials who were allegedly involved in Bob’s abduction: Mohammad Baseri and Ahmad Khazai. They worked for Iran’s Ministry of Intelligence and Security (MOIS) at the time of Bob’s abduction, detention, and probable death.

    The FBI continues to offer a reward of up to $5 million for information that leads to Bob’s location, recovery, and return. If you have information, please email levinsonfbireward@fbi.gov. You can also contact your local FBI office or the nearest American Embassy or Consulate or submit a tip via tips.fbi.gov.

    Additionally, the U.S. State Department’s Rewards for Justice program is offering a reward of up to $20 million for information that leads to Bob’s location, recovery, and return as well as information that leads to the identification, location, arrest, or conviction of any person responsible for his abduction, including Baseri and Khazai, who are wanted for their alleged involvement in Bob’s disappearance.

    MIL Security OSI –

  • MIL-OSI Security: Tampa Man Pleads Guilty To Possessing A Firearm And Ammunition As A Convicted Felon

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

    Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces that Brandon Palmore (30, Tampa) today pleaded guilty to possession of a firearm and ammunition as a convicted felon. Palmore faces a maximum penalty of 15 years in federal prison. Palmore has agreed to forfeit the Sig Sauer handgun and ammunition used in the commission of the offense. A sentencing date has not yet been set.

    According to the plea agreement, on December 1, 2023, agents were conducting surveillance at an apartment complex in Tampa in relation to an outstanding arrest warrant for Palmore and observed him walking to his vehicle. As Palmore was given commands to exit the vehicle, he was seen reaching toward the center console and passenger floorboard area of the vehicle. A Sig Sauer handgun was found where Palmore had been seen reaching. The handgun was loaded and had previously been reported stolen. At the time, Palmore had multiple prior felony convictions, including aggravated assault with a deadly weapon and shooting at, within, or into, a vehicle. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.

    This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Jeff Chang.

    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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Federal Inmate Charged With Possessing Weapons

    Source: Office of United States Attorneys

    SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jack Carroll, Jr., age 52, a federal inmate at the Federal Correction Institution Schuylkill (FCI Schuylkill), in Schuylkill County, Pennsylvania, was charged on March 4, 2025, by a federal grand jury with possessing contraband in prison.

    According to Acting United States Attorney John C. Gurganus, the indictment alleges that on or about December 11, 2024, while an inmate at FCI Schuylkill, Carroll possessed three inmate manufactured weapons, specifically a five-inch piece of glass sharpened to a point, and two six-inch pieces of plexiglass sharpened to a point, commonly referred to as “shanks.”

    The case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.

    The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Federal Inmate Charged With Possessing A Weapon

    Source: Office of United States Attorneys

    SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tommy Clark, age 22, a federal inmate at the Federal Correction Institution Schuylkill (FCI Schuylkill), in Schuylkill County, Pennsylvania, was charged on March 4, 2025, by a federal grand jury with possessing contraband in prison.

    According to Acting United States Attorney John C. Gurganus, the indictment alleges that on or about October 16, 2024, while an inmate at FCI Schuylkill, Clark possessed an inmate manufactured weapon, specifically a six-and-one-half inch piece of metal sharpened to a point with a lanyard, commonly referred to as a “shank.”

    The case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.

    The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Winslow Man Sentenced to 8 years in Federal Prison for Possession of Biological Weapon

    Source: Office of United States Attorneys

    FAYETTEVILLE – A Winslow, Arkansas man was sentenced yesterday to 96 months in prison without the possibility of parole for Possession of a Biological Agent.  The Honorable Judge Timothy L. Brooks presided over the sentencing hearing, which was held in the U.S. District Court in Fayetteville.

    According to court documents, in January 2024, a concerned citizen made an anonymous tip to the Washington County Sherriff’s office that Jason Kale Clampit, age 44, was manufacturing and may have poisoned one of his family members with ricin. Thereafter, an investigation revealed that Clampit had, in fact, produced ricin at his residence in Winslow, Arkansas, for the stated purpose of setting traps for trespassers. The investigation likewise revealed that during the manufacturing process, Clampit inadvertently exposed himself to ricin, which made him extremely ill. On January 24, 2025, a federal search warrant was executed by both the Bentonville Bomb Squad and an FBI Bioweapon Specialist team, which resulted in the confiscation of several items associated with processing ricin, and suspected ricin byproducts. On that same day, Clampit was taken into custody. While in jail, he made statements on a monitored phone call in which he directed others to dispose of liquid ricin contained in a jar that was secreted in a camper on his property. After listening to the monitored call, FBI agents responded quickly, contacted the individual Clampit directed, and located, in a trash can, a jar containing processed ricin.

    Clampit was indicted by a Grand Jury in the Western District of Arkansas in March 2024. He entered a plea of guilty in October 2024.

    U.S. Attorney Clay Fowlkes of the Western District of Arkansas made the announcement.

    The Federal Bureau of Investigation, the Washington County Sheriff’s Office, the Bentonville Police Department, and the Arkansas Department of Corrections Division of Community Correction (probation and parole) all investigated the case.

    Assistant U.S. Attorney Dustin Roberts prosecuted the case on behalf of the United States.

    Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov. 

    MIL Security OSI –

  • MIL-OSI Security: Guatemalan National Charged with Child Exploitation Offenses

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

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the FBI, and West Haven Police Chief Joseph Perno announced that MARIO RENE GARCIA MARTINEZ, also known as “Mario Rene Martinez Garcia,” 33, a citizen of Guatemala was arrested today on a federal criminal complaint charging him with child exploitation offenses.

    As alleged in court documents and statements made in court, on two occasions in February 2024, in Connecticut, Garcia Martinez used his smartphone to record sexually explicit videos and images of a prepubescent minor female while she was sleeping.

    Garcia Martinez was arrested this morning in Valley Stream, New York.  He appeared this afternoon before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was ordered detained.

    The complaint charges Garcia Martinez with production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and with possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years.

    Acting U.S. Attorney Silverman stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This matter is being investigated by the Federal Bureau of Investigation and the West Haven Police Department.  The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings with the assistance of the Office of the State’s Attorney for the Judicial District of Ansonia-Milford.

    This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    To report cases of child exploitation, please visit www.cybertipline.com.

    MIL Security OSI –

  • MIL-OSI Security: Convicted Sex Offender Sentenced to 10 Years in Federal Prison for Second Offense

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

    WILMINGTON, Del. – Shannon T. Hanson, Acting U.S. Attorney for the District of Delaware, announced that Michael Natale, of Laurel, Delaware, was sentenced yesterday in the U.S. District Court for the District of Delaware for his crime of possessing child sexual abuse material. The Honorable Colm F. Connolly, Chief Judge, issued the sentence.

    In October 2024, Mr. Natale plead guilty to Possession of Child Sexual Abuse Material. The case against Mr. Natale arose from conversations he was having online with another individual on the instant messaging platform “Kik.” Mr. Natale and the other individual exchanged graphic videos depicting the sexual abuse of children, to include the sexual abuse of the other individual’s own young son. That individual was arrested and a search of her Kik account led to the identification of Mr. Natale.

    Today, Chief Judge Connolly sentenced Mr. Natale to 10 years of imprisonment. This sentence is the mandatory minimum sentence Mr. Natale must serve because he has a prior conviction in the State of Delaware for dealing in child pornography.

    Acting U.S. Attorney Hanson stated, “Our office has always been dedicated to the protection of Delaware’s most vulnerable community members, the children. We will continue to aggressively pursue those who exploit children for their own twisted satisfaction, especially those who refuse to change their behavior after previous convictions. I commend the FBI’s dedication and collaboration across districts in bringing this case, and that of Mr. Natale’s co-conspirator, to justice.”

    “Natale posed a significant threat to children as demonstrated by his repeated perverse and sick exploitation. Even in the darkest corners of the internet, the FBI will find a way to seek justice for our children and stop the monsters who threaten their innocence and sense of security,” said FBI Baltimore Special Agent in Charge William J. DelBagno.

    This case was investigated by the FBI. Assistant U.S. Attorney Briana Knox is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.

    MIL Security OSI –

  • MIL-OSI Security: Five More Sentenced in Federal Pandemic Fraud Unemployment Benefit Scheme

    Source: Office of United States Attorneys

    ABINGDON, Va. – An additional five of the 17 defendants charged with conspiring to defraud the United States, commit program fraud, and commit mail fraud in connection to a scheme involving the filing of fraudulent claims for pandemic unemployment benefits, were sentenced this week in U.S. District Court in Abingdon.

    On Thursday, Christopher Kirk Webb, 40, of Raven, Virginia was sentenced to 20 months in federal prison. Russell Eric Stiltner, 42, of Abingdon, Virginia, was sentenced to 24 months. Jessica Dawn Lester, 35, of North Tazewell, Virginia, and Cara Camille Bailey, 38, of Davenport, Virginia, were both sentenced to 19 months, and Justin Warren Meadows, 39, of Oakland, Virginia, was sentenced to 18 months. All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims. 

    Six Defendants were previously sentenced for their roles in the scheme.

    Jonathan Webb, the individual charged with ‘recruiting’ others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months in federal prison and was ordered to pay $150,218 in restitution.

    Terrence Brooks Vilacha was sentenced to 18 months in prison and was ordered to pay $14,894 in restitution. Joseph Hass was sentenced to 27 months’ incarceration and was ordered to pay $19,316 in restitution. Brian Addair was sentenced to 24 months in prison and was ordered to pay $22,284.

    Stephanie Amber Barton and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.

    According to court documents, between March 2020 and September 2021, Josef Brown, Jonathan Webb, and Crystal Shaw developed a scheme to file fraudulent claims and recertifications for pandemic unemployment befits via the Virginia Employment Commission website. The scheme involved the collection of personal identification information (PII) of inmates housed at SWVRJA-Haysi, as well as personal friends and acquaintances of Brown, Webb, and Shaw. The conspirators used that information to file fraudulent claims and recertifications for pandemic unemployment benefits for incarcerated individuals and others who were ineligible for the benefits.

    In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.

    As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending.

    Acting United States Attorney Zachary T. Lee, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Virginia Attorney General Jason Miyares announced the sentences.

    Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the FBI, U.S. Department of Labor, and the Virginia Employment Commission.

    Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Danielle Stone are prosecuting the case for the United States.

    MIL Security OSI –

  • MIL-OSI USA: Garantex Cryptocurrency Exchange Disrupted in International Operation

    Source: US State of North Dakota

    Note: View the indictment here.

    Two Administrators Charged with Operating Multibillion-Dollar Crypto Money Laundering Service

    The Justice Department announced today a coordinated action with Germany and Finland to disrupt and take down the online infrastructure used to operate Garantex, a cryptocurrency exchange that allegedly facilitated money laundering by transnational criminal organizations — including terrorist organizations — and sanctions violations. Since April 2019, Garantex has processed at least $96 billion in cryptocurrency transactions.

    Garantex Splash Page

    In conjunction with the operation targeting Garantex, the Department also announced the unsealing of an indictment in the Eastern District of Virginia against Aleksej Besciokov, 46, a Lithuanian national and Russian resident, and Aleksandr Mira Serda (previously Aleksandr Ntifo-Siaw), 40, a Russian national and United Arab Emirates resident. Mira Serda and Besciokov are charged with money laundering conspiracy, and Besciokov is charged with conspiracy to violate sanctions and conspiracy to operate an unlicensed money transmitting business.

    According to court documents, between 2019 and 2025, Besciokov and Mira Serda controlled and operated Garantex. Besciokov was Garantex’s primary technical administrator and responsible for obtaining and maintaining critical Garantex infrastructure, as well as reviewing and approving transactions. Mira Serda was Garantex’s co-founder and chief commercial officer.

    Garantex received hundreds of millions in criminal proceeds and was used to facilitate various crimes, including hacking, ransomware, terrorism, and drug trafficking, often with substantial impact to U.S. victims. According to the indictment, Besciokov and Mira Serda knew that criminal proceeds were being laundered through Garantex and took steps to conceal the facilitation of illegal activities on its platform. For example, when Russian law enforcement sought records relating to an account registered to Mira Serda, Garantex provided incomplete information in response and falsely claimed the account was not verified. In reality, Garantex had associated the account with Mira Serda’s personal identifying documents, even while disclosing identifying information related to other accounts requested by Russian law enforcement.

    On April 5, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex for its role in facilitating money laundering of funds from ransomware actors and darknet markets. According to court documents, despite the widespread publicity of the sanctions and Garantex administrator’s personal knowledge of them, Besciokov and his co-conspirators violated those sanctions by continuing to transact with U.S.-based entities. Further, Besciokov and his co-conspirators redesigned Garantex’s operations to evade and violate U.S. sanctions and induce U.S. businesses to unwittingly transact with Garantex in violation of the sanctions. For example, Garantex moved its operational cryptocurrency wallets to different virtual currency addresses on a daily basis in order to make it difficult for U.S.-based cryptocurrency exchanges to identify and block transactions with Garantex accounts.

    Despite doing substantial business in the United States and operating as a money transmitting business, Garantex failed to register with the Financial Crimes Enforcement Network (FinCEN) as required.

    On March 6, U.S. law enforcement, led by the U.S. Secret Service (USSS), executed a seizure order authorized by a judge in the Eastern District of Virginia against three website domain names used to support Garantex’s operations. According to court records unsealed today, Garantex.org, Garantex.io, and Garantex.academy were associated with the administration and operation of Garantex. The seizure of these domains will prevent these sites from being used for money laundering and additional crimes. Individuals visiting those sites now will see a message indicating that the site has been seized by law enforcement.

    As part of the coordinated actions, German and Finnish law enforcement seized servers hosting Garantex’s operations. U.S. law authorities have separately obtained earlier copies of Garantex’s servers, including customer and accounting databases. In addition, U.S. law enforcement has also frozen over $26 million in funds used to facilitate Garantex’s money laundering activities.

    Besciokov and Mira Serda are each charged with one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. Besciokov is also charged with one count of conspiracy to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison, and with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison.    

    Supervisory Official Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, Assistant Director Michael Centrella of the USSS’ Office of Field Operations, and Assistant Director Bryan Vorndran of the FBI’s Cyber Division made the announcement.

    USSS and the FBI are investigating the case.

    Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia and Trial Attorney Tamara Livshiz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team are prosecuting the case. The Justice Department’s National Security Division and Office of International Affairs provided valuable assistance.

    The Justice Department also recognizes the critical cooperation of the German Federal Criminal Police Office, the Frankfurt General Prosecutor’s Office, the Dutch National Police, Europol, the Finnish National Bureau of Investigation, and the Estonian National Criminal Police.

    Finally, the Department thanks Tether and blockchain analytics firm Elliptic for their proactive assistance in this investigation.

    Any individual who believes he/she is a victim whose funds were laundered through Garantex or who may otherwise have a claim to restrained funds should reach out to law enforcement via email address GarantexClaimants@secretservice.gov.

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

    MIL OSI USA News –

  • MIL-OSI Security: Florida Man Sentenced to Five Years in Prison for Telegram-Based Bank Fraud Scheme That Targeted Alabama Businesses

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

    BIRMINGHAM, Ala. – A Florida man has been sentenced for his role in a Telegram-based check fraud scheme, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis.

    U.S. District Court Judge Madeline Haikala sentenced Gabriel Samuel Odiot, 21, of Kissimmee, Florida, to 60 months in prison and ordered him to forfeit $84,000. In December 2024, Odiot pleaded guilty to conspiracy to commit bank fraud and wire fraud and aggravated identity theft.

    According to the plea agreement and other court documents, from August 2022 to March 2023, Odiot served as an administrator of “RICH OFF PLAYS,” a Telegram channel dedicated to the negotiation of fraudulent checks. Odiot used the channel to recruit mail carriers, to advertise the services of bank insiders, and to collaborate with others to commit bank fraud. He frequently posted pictures and videos of himself committing bank fraud on the channel. These included pictures and videos depicting stolen checks, transaction receipts, and large amounts of cash. In many cases, the pictures and videos were branded with Odiot’s nickname “Motion.”

    The U.S. Secret Service investigated the case with assistance from the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Heflin Police Department.  Assistant U.S. Attorney Edward J. Canter prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI Security: FBI Denver Warns of Online File Converter Scam

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

    The FBI Denver Field Office is warning that agents are increasingly seeing a scam involving free online document converter tools, and we want to encourage victims to report instances of this scam.

    In this scenario, criminals use free online document converter tools to load malware onto victims’ computers, leading to incidents such as ransomware.

    “The best way to thwart these fraudsters is to educate people so they don’t fall victim to these fraudsters in the first place,” said FBI Denver Special Agent in Charge Mark Michalek. “If you or someone you know has been affected by this scheme, we encourage you to make a report and take actions to protect your assets. Every day, we are working to hold these scammers accountable and provide victims with the resources they need.”

    To conduct this scheme, cyber criminals across the globe are using any type of free document converter or downloader tool. This might be a website claiming to convert one type of file to another, such as a .doc file to a .pdf file. It might also claim to combine files, such as joining multiple .jpg files into one .pdf file. The suspect program might claim to be an MP3 or MP4 downloading tool.

    These converters and downloading tools will do the task advertised, but the resulting file can contain hidden malware giving criminals access to the victim’s computer. The tools can also scrape the submitted files for:

    • Personal identifying information, such as social security numbers, dates of birth, phone numbers, etc.)
    • Banking information
    • Cryptocurrency information (seed phrases, wallet addresses, etc.)
    • Email addresses
    • Passwords

    Unfortunately, many victims don’t realize they have been infected by malware until it’s too late, and their computer is infected with ransomware or their identity has been stolen.

    The FBI Denver Field Office encourages victims or attempted victims of this type of scheme to report it to the FBI Internet Crime Complaint Center at www.ic3.gov.

    In addition, the FBI Denver Field Office recommends taking the following actions to protect yourself from this scam:

    • Take a breath, slow down and think. Be aware of your actions online and what risks you could be exposed to.
    • Keep your virus scan software up to date and scan any file you receive before opening it to help eliminate malicious software from being installed on your computer.

    If you are a victim of this scam, here are some steps to take:

    • Contact your financial institutions immediately. Take steps to protect your identity and your accounts.
    • Change all your passwords using a clean, trusted device.
    • Make a report at IC3.gov
    • Run up-to-date virus scan software to check for potentially malicious software installed by the scammers. Consider taking your computer to a professional company specializing in virus and malware removal services.

    MIL Security OSI –

  • MIL-OSI Security: La Oficina del FBI en Denver Advierte Sobre Estafas al Usar Los Conversores de Archivos en Línea

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

    La Oficina del FBI en Denver ha emitido una advertencia alertando sobre un aumento en las estafas relacionadas con herramientas en línea gratuitas para convertir documentos. Se insta a las víctimas a reportar cualquier caso relacionado con dichas estafas.

    En este tipo de esquemas, los delincuentes aprovechan las herramientas gratuitas de conversión de documentos en línea para cargar malware o ransomware en las computadoras de las víctimas.

    “Como parte de nuestros esfuerzos continuos para combatir el fraude, creemos que la forma más efectiva de detener a estos delincuentes es mediante la educación”, señaló Mark Michalek, agente especial a cargo de la Oficina del FBI en Denver. “Al promover la concienciación, podemos evitar que las personas caigan en estas trampas. Si usted o alguien que usted conoce ha sido afectado, le recomendamos que lo reporte de inmediato y tome las medidas necesarias para proteger sus activos. Todos los días trabajamos para responsabilizar a los estafadores y proporcionar a las víctimas el apoyo y los recursos necesarios.”

    Para llevar a cabo este esquema, los ciberdelincuentes de todo el mundo están aprovechando diversas herramientas gratuitas de conversión o descarga de documentos. Estas incluyen sitios web que prometen convertir archivos de un formato a otro, como transformar un archivo .doc en .pdf, o servicios que permiten combinar archivos, como unir varios .jpg en un solo .pdf. Además, los programas sospechosos pueden presentarse como herramientas para descargar archivos MP3 o MP4.

    Estos conversores y herramientas de descarga cumplen con lo que prometen, pero el archivo resultante contiene malware oculto que permite a los delincuentes acceder a la computadora de la víctima. Además, estas herramientas pueden recopilar los archivos enviados para extraer:

    • Información personal identificable, como números de seguro social, fechas de nacimiento, números de teléfono, entre otros.
    • Información bancaria.
    • Datos relacionados con criptomonedas (frases semilla, direcciones de billeteras, etc.).
    • Direcciones de correo electrónico.
    • Contraseñas.

    Desafortunadamente, muchas víctimas no se dan cuenta de que sus computadoras han sido infectadas con malware hasta que ya es demasiado tarde y su dispositivo ha sido comprometido con ransomware o su identidad ha sido robada.

    La Oficina del FBI en Denver exhorta a las víctimas, o a aquellos que hayan sido blanco de intentos de estafa, a denunciarlo en el Centro de Quejas de Crímenes en Internet del FBI en www.ic3.gov.

    Asimismo, recomienda seguir las siguientes precauciones para evitar caer en esta estafa:

    • Respire profundamente, tómese su tiempo y piense. Sea consciente de sus acciones en línea y los riesgos a los que podría estar expuesto.
    • Mantenga su software antivirus actualizado y escanee cualquier archivo que reciba antes de abrirlo para evitar la instalación de software malicioso en su computadora.
    •  

    Si es víctima de esta estafa, siga estos pasos:

    • Póngase en contacto con sus instituciones financieras de inmediato. Tome medidas para proteger su identidad y sus cuentas.
    • Cambie todas sus contraseñas utilizando un dispositivo limpio y confiable.
    • Reporte el incidente en IC3.

    Ejecute un escaneo con software antivirus actualizado para verificar si hay algún software malicioso instalado por los estafadores. Considere la posibilidad de llevar su computadora a un profesional para que la limpie.

    MIL Security OSI –

  • MIL-OSI Security: Garantex Cryptocurrency Exchange Disrupted in International Operation

    Source: United States Attorneys General 1

    Note: View the indictment here.

    Two Administrators Charged with Operating Multibillion-Dollar Crypto Money Laundering Service

    The Justice Department announced today a coordinated action with Germany and Finland to disrupt and take down the online infrastructure used to operate Garantex, a cryptocurrency exchange that allegedly facilitated money laundering by transnational criminal organizations — including terrorist organizations — and sanctions violations. Since April 2019, Garantex has processed at least $96 billion in cryptocurrency transactions.

    Garantex Splash Page

    In conjunction with the operation targeting Garantex, the Department also announced the unsealing of an indictment in the Eastern District of Virginia against Aleksej Besciokov, 46, a Lithuanian national and Russian resident, and Aleksandr Mira Serda (previously Aleksandr Ntifo-Siaw), 40, a Russian national and United Arab Emirates resident. Mira Serda and Besciokov are charged with money laundering conspiracy, and Besciokov is charged with conspiracy to violate sanctions and conspiracy to operate an unlicensed money transmitting business.

    According to court documents, between 2019 and 2025, Besciokov and Mira Serda controlled and operated Garantex. Besciokov was Garantex’s primary technical administrator and responsible for obtaining and maintaining critical Garantex infrastructure, as well as reviewing and approving transactions. Mira Serda was Garantex’s co-founder and chief commercial officer.

    Garantex received hundreds of millions in criminal proceeds and was used to facilitate various crimes, including hacking, ransomware, terrorism, and drug trafficking, often with substantial impact to U.S. victims. According to the indictment, Besciokov and Mira Serda knew that criminal proceeds were being laundered through Garantex and took steps to conceal the facilitation of illegal activities on its platform. For example, when Russian law enforcement sought records relating to an account registered to Mira Serda, Garantex provided incomplete information in response and falsely claimed the account was not verified. In reality, Garantex had associated the account with Mira Serda’s personal identifying documents, even while disclosing identifying information related to other accounts requested by Russian law enforcement.

    On April 5, 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex for its role in facilitating money laundering of funds from ransomware actors and darknet markets. According to court documents, despite the widespread publicity of the sanctions and Garantex administrator’s personal knowledge of them, Besciokov and his co-conspirators violated those sanctions by continuing to transact with U.S.-based entities. Further, Besciokov and his co-conspirators redesigned Garantex’s operations to evade and violate U.S. sanctions and induce U.S. businesses to unwittingly transact with Garantex in violation of the sanctions. For example, Garantex moved its operational cryptocurrency wallets to different virtual currency addresses on a daily basis in order to make it difficult for U.S.-based cryptocurrency exchanges to identify and block transactions with Garantex accounts.

    Despite doing substantial business in the United States and operating as a money transmitting business, Garantex failed to register with the Financial Crimes Enforcement Network (FinCEN) as required.

    On March 6, U.S. law enforcement, led by the U.S. Secret Service (USSS), executed a seizure order authorized by a judge in the Eastern District of Virginia against three website domain names used to support Garantex’s operations. According to court records unsealed today, Garantex.org, Garantex.io, and Garantex.academy were associated with the administration and operation of Garantex. The seizure of these domains will prevent these sites from being used for money laundering and additional crimes. Individuals visiting those sites now will see a message indicating that the site has been seized by law enforcement.

    As part of the coordinated actions, German and Finnish law enforcement seized servers hosting Garantex’s operations. U.S. law authorities have separately obtained earlier copies of Garantex’s servers, including customer and accounting databases. In addition, U.S. law enforcement has also frozen over $26 million in funds used to facilitate Garantex’s money laundering activities.

    Besciokov and Mira Serda are each charged with one count of conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. Besciokov is also charged with one count of conspiracy to violate the International Emergency Economic Powers Act, which carries a maximum penalty of 20 years in prison, and with conspiracy to operate an unlicensed money transmitting business, which carries a maximum penalty of five years in prison.    

    Supervisory Official Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, Assistant Director Michael Centrella of the USSS’ Office of Field Operations, and Assistant Director Bryan Vorndran of the FBI’s Cyber Division made the announcement.

    USSS and the FBI are investigating the case.

    Assistant U.S. Attorney Zoe Bedell for the Eastern District of Virginia and Trial Attorney Tamara Livshiz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team are prosecuting the case. The Justice Department’s National Security Division and Office of International Affairs provided valuable assistance.

    The Justice Department also recognizes the critical cooperation of the German Federal Criminal Police Office, the Frankfurt General Prosecutor’s Office, the Dutch National Police, Europol, the Finnish National Bureau of Investigation, and the Estonian National Criminal Police.

    Finally, the Department thanks Tether and blockchain analytics firm Elliptic for their proactive assistance in this investigation.

    Any individual who believes he/she is a victim whose funds were laundered through Garantex or who may otherwise have a claim to restrained funds should reach out to law enforcement via email address GarantexClaimants@secretservice.gov.

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

    MIL Security OSI –

  • MIL-OSI Security: United States Attorney’s Office Charges 46 Illegal Aliens with Various Offenses including Immigration Crimes, Drug Trafficking, Weapons Offenses, and Child Pornography

    Source: Office of United States Attorneys

    DETROIT – Since January of this year, the United States Attorney’s Office for the Eastern District of Michigan has charged 46 aliens who were unlawfully present in the United States with offenses including illegal reentry into the United States, drug trafficking, illegal possession of firearms, and child pornography offenses. These aliens’ home countries include Guatemala, Honduras, Mexico, and Venezuela. Several had prior convictions for human smuggling, drug trafficking, drunk driving, assault, and theft. In many cases, the aliens had been returned to their home country numerous times but have continued to violate immigration laws by re-entering the United States.

    Recent cases include:

    Hector Bejerano-Bejerano, a native of Mexico, was located at a gas station in Novi, Michigan, when he was creating a nuisance to customers. He was arrested and identified by United States Border Patrol and found to have two prior federal immigration convictions, including one in which Bejerano-Bejerano was caught smuggling three other illegal aliens into the United States from Mexico. During this encounter, Bejerano-Bejerano fled from a Border Patrol Agent and assaulted him. According to court filings in that case, Bejerano-Bejerano was encountered by Border Patrol 18 times during 2021 alone.

    Dulce Rubio-Rivera, a native of Mexico, was found in Detroit, Michigan, when agents from the Federal Bureau of Investigation and Immigration and Customs Enforcement executed a federal search warrant at a house. Inside the house was Rubio-Rivera, along with drugs, a scale, ammunition and an AK-47 rifle. Rubio-Rivera pleaded guilty to conspiracy to distribute 6.25 kilograms of crystal methamphetamine.

    Luis Fernando Santillan-Valderrabano, a native of Mexico, was located in the passenger seat of a vehicle in Detroit. Santillan-Valderrabano was originally admitted into the United States on a special visa that permitted him to stay in the United States for only 72 hours and within 25 miles of the United States-Mexico border. However, five months later Santillan-Valderrabano was arrested and pleaded guilty to theft charges in Georgia. A year after that, he was again arrested and convicted in Nebraska for resisting arrest and felony theft. Santillan-Valderrabano was removed back to Mexico in 2009, but illegally returned and was arrested in 2010 in Ithaca, Michigan, for a driving offense. Santillan-Valderrabano was removed again but tried to sneak back into the United States in 2011, was caught, and federally prosecuted in Texas for illegal entry. Santillan-Valderrabano was removed a third time in 2011, but again tried to illegally enter the United States, was caught, federally prosecuted in Texas for illegal reentry, and removed in 2012. In 2021, he was arrested in Wixom, Michigan, for driving 86 miles per hour in a 45 mile per hour zone. During this encounter with police, he used a fake name and date of birth and failed to appear for his court hearing after being charged with reckless driving, providing false identification, and not having a vehicle operation license.

    Gustavo Placencia-Rosales, a native of Mexico who was unlawfully present in the United States, was arrested and charged in a criminal complaint with conspiracy to possess and possession with intent to distribute cocaine and carrying a firearm during and in relation to a drug trafficking offense. The complaint alleges that agents with the DEA have been investigating Placencia-Rosales for involvement in drug trafficking actitivies. Law enforcement initiated a traffic stop of a vehicle occupied by Placenia-Rosales, with three others, and recovered four brick-shaped packages that field tested positive as cocaine along with two firearms.

    Luis Gerardo Rodriguez-Rey, a native of Columbia who was unlawfully present in the United States, was arrested and charged in a criminal complaint with being an alien in possession of a firearm and ammunition.  According to the complaint, officers with the River Rouge Police Department were on routine patrol when they encountered Rodriguez-Rey traveling at a high rate of speed in a vehicle which did not have any exterior lights illuminated.  A traffic stop was conducted and upon a search of his person and vehicle, officers recovered a Smith & Wesson pistol along with ammunition.

    Luis Angel Alvarez-Alvarez, a native of Venuzuela, was arrested by agents of Immigration and Customs Enforcement’s Homeland Security Investigations and U.S. Border Patrol after agents stopped a vehicle that Alvarez-Alvarez was operating without a license plate.  Alvarez-Alvarez had a prior final order of removal at the time of the arrest.   During a search of his cellular device, officers discovered alleged child sexually abusive material.  Alvarez was charged with production and possession of child pornography and remains in custody pending the disposition of his charges.

    “The United States Attorney’s Office for the Eastern District of Michigan has a long-standing commitment to enforcing the immigrations laws of the United States, and that commitment is unwavering,” said Acting U.S. Attorney Julie Beck. “We will continue to work with our law enforcement partners to investigate and prosecute those individuals who are in our district unlawfully.”

    “These cases represent a fraction of the criminal aliens we and our federal partners arrest every day across the Detroit Sector that’s making this country safer than it was just a few short months ago,” said Detroit Sector Chief Patrol Agent John R. Morris. “I could not be more proud of our agents for their enforcement efforts as well as their ability to form strong bonds with our local, state and federal partnerships such as we see exemplified here with U.S. Immigration and Customs Enforcement.”

    “Keeping dangerous people and illicit drugs and weapons from infecting our communities is at the core of our comprehensive border security mandate,” said Director of Field Operations Marty C. Raybon. “The CBP Office of Field Operations is as committed as ever in protecting our homeland alongside our local, state, and federal law enforcement partners.”

    “Our ICE Detroit officers will continue to secure our communities through the apprehension and arrest of criminal aliens and immigration violators,” said ICE ERO Detroit Field Office Director Robert Lynch. “Working with our law enforcement partners, we have been able to apprehend serious public safety threats from foreign sex offenders to drug traffickers and aliens in possession of illegal firearms.”

    “As the investigative arm of the Department of Homeland Security, our agents are prioritizing investigations into bad actors who exploit our immigration system,” said ICE HSI Detroit acting Special Agent in Charge Jared Murphey. “From illegal aliens in possession of child sexually abusive material to dismantling human smuggling or trafficking rings, our ICE HSI team stands ready to safeguard the homeland alongside our partners.”

    “The men and women of DEA work hard – day in and day out – to protect families from the dangers and violence associated with drug trafficking in our communities,” said DEA Acting Special Agent in Charge Andrew Lawton.  “In that vein, we have prioritized our drug investigations on those involving violent, illegal criminals responsible for flooding our neighborhoods with deadly and dangerous drugs. We will continue to work with the Department of Homeland Security and our federal partners with immigration enforcement efforts.”

    “ATF, along with our Department of Justice partners, stand side by side with the Department of Homeland Security and other federal law enforcement partners in their efforts to enforce immigration laws and protect public safety,” said ATF Detroit Special Agent in Charge James Deir. “We remain committed to supporting coordinated enforcement actions to uphold the rule of the law and ensure the security of our communities.”

    “Members of the FBI’s Detroit Field Office, in collaboration with federal law enforcement partners—including Immigration and Customs Enforcement (ICE), U.S. Border Patrol (CBP), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), are actively investigating and apprehending individuals wanted for federal violations and those unlawfully present in the United States,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Michigan Division. “The FBI in Michigan remains steadfast in its mission to uphold the Constitution and ensure the safety and security of the American people.”

    A complaint/indictment is merely a formal charge and is not evidence of guilt.  Every defendant is presumed innocent unless and until proven guilty.  It is the burden of the government to prove guilt beyond a reasonable doubt.

    These cases were investigated by agents of Immigration and Customs Enforcement’s Enforcement and Removal Operations and Homeland Security Investigations, U.S. Border Patrol, U.S. Customs and Border Protection, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Drug Enforcement Administration.

    These cases are being prosecuted by Assistant United States Attorneys in the National Security Unit of the United States Attorney’s Office.

    MIL Security OSI –

  • MIL-OSI Security: California Lawyer Sentenced to More Than Five Years in Federal Prison for Wire Fraud and Money Laundering

    Source: Office of United States Attorneys

    The defendant stole more than $2 million of client funds.

    Greenbelt, Maryland – U.S. District Judge Lydia K. Griggsby sentenced Matthew C. Browndorf, 54, of Irvine, California, to more than five years in federal prison for money laundering and wire fraud.

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) Baltimore Field Office and Special Agent in Charge Edwin Bonano, Federal Housing Finance Agency, Office Inspector General (FHFA-OIG). 

    According to the guilty plea, the defendant served as an attorney licensed to practice law in New York, Pennsylvania, and New Jersey, and was a named partner at a law firm. Browndorf was also majority owner and CEO of Plutos Sama, LLC, which operated as a holding company for his various business endeavors. 

    Plutos Sama, with Browndorf signing the purchase agreement as a managing member, procured the Fisher Law Group.  After Plutos Sama acquired the Fisher Law Group, it changed the name to BP Fisher which served as an organization that represented lending and loan servicing clients in foreclosure proceedings.  The newly acquired company had agreements with its clients to facilitate the foreclosure of a property, take out its expenses, and then return the remaining money.

    BP Fisher also maintained an Interest on Lawyer’s Trust Account (IOLTA) and operating account, which the defendant oversaw. An IOLTA is maintained in a financial institution for the deposit of funds received or held by an attorney or law firm on behalf of a client or third person.  All funds received into an IOLTA account must be delivered in whole or in part to a client, unless received as payment for fees owed to the lawyer by the client or in reimbursement for expenses that the lawyer properly advanced on behalf of the client.

    Over several years, the defendant led clients to believe that they had immediate access to the money in the two BP Fisher IOLTA accounts. But Browndorf was directing employees to transfer the clients’ money into Plutos Sama accounts and other accounts that he controlled.  The scheme caused more than $2.4 million in losses to BP Fisher’s clients. Browndorf used the stolen funds to pay for expenses such as his American Express credit card bill, car-lease payment to Ferrari and Maserati of Newport Beach, and mortgage.

    U.S. Attorney Hayes commended the FBI and FHFA-OIG for their work in this investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Christopher Sarma, Joshua Rosenthal, and Matthew Phelps, who prosecuted the federal case.

    For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Wisconsin Man Sentenced to 30 Years in Federal Prison for Production of Child Sexual Abuse Materials*

    Source: Office of United States Attorneys

    ANDERSON, S.C. — Tyler Michael Berlick, 36, of Muskego, Wisconsin, has been sentenced to 30 years in federal prison after pleading guilty to production of child sexual abuse materials.

    Evidence presented to the court showed that Berlick met a girl he believed to be 13 years old located in Greenville, South Carolina in an online game. He sent the child sexually explicit messages and produced sexual abuse materials of the child over the internet. Berlick also traveled from Wisconsin to South Carolina and engaged in sexual activity with the child and then traveled with the minor to Florida and further engaged in sexual activity with the child. 

    “This defendant targeted and exploited someone he knew was a child, and this sentence reflects magnitude of such an offense,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “This child was brought home safely due to law enforcement coordination across multiple states. Our office will continue to bring every resource we have to bear in the fight to keep our child safe from predators like this.”

    “The FBI is steadfast in its commitment to combating violent crime, especially cases involving the exploitation of children,” said Steve Jensen, Special Agent in Charge of the FBI Columbia field office. “This defendant, preyed on a child, and he is now facing justice. The FBI and our law enforcement partners will always prioritize safeguarding children and pursuing those who pose a threat to their safety.”

    United States District Judge Timothy M. Cain sentenced Berlick to 360 months imprisonment, to be followed by a lifetime of court-ordered supervision.  There is no parole in the federal system.

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

    This case was investigated by the FBI Columbia field office, the Greenville County Sheriff’s Office, the FBI Miami Field Office, the Latana Police Department (Florida), the Monroe County Sheriff’s Office (Florida) and the Waukesha County Sheriff’s Department (Wisconsin). Assistant U.S. Attorney Winston Marosek is prosecuting the case.

    ###

    * The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it better reflects the abuse that is depicted in the images and videos and the resulting trauma to the child. The Associated Press Stylebook also discourages use of the phrase “child pornography.”

    MIL Security OSI –

  • MIL-OSI Security: FBI Philadelphia Reminds Spring Breakers of Safety Aboard Aircrafts

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

    PHILADELPHIA—As March means spring break travel for many, the FBI Philadelphia Field Office advises travelers to remain vigilant and exercise caution when traveling aboard aircrafts and navigating airports.

    The FBI remains committed to prioritizing investigations into federal crimes occurring on aircrafts that endanger the safety of passengers, the flight crews, and flight attendants.

    “As spring breakers take to the skies, the FBI wants to remind them to prioritize safety while traveling through airports and flying,” said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. “Working with our federal, state, and local partners, and most importantly the public, is key to identifying these threats and combating crime in airports and aboard aircrafts.”

    Each of the FBI’s 55 field offices have airport liaison agents (ALA). These agents are assigned to the nearly 450 U.S. aviation facilities that have passenger screening operations regulated by the Transportation Security Administration (TSA), and respond to crime aboard an aircraft, a violation which falls within the FBI’s special investigative jurisdiction.

    Some of the violations the FBI investigates if they are committed during a flight are listed below:

    • Sexual misconduct, including sexual assault; indecent exposure, lewd, indecent, sexual, or obscene acts; and indecent or sexual proposal to a minor.
    • Assault, including striking or hitting, throwing an object, grabbing or unwanted touching, and spitting.
    • Interference with flight crew members, including assault, threats, or intimidation and/or an attempt or conspiracy to do the same.
    • Theft

    In addition, the FBI investigates airport-based violations. This includes violence against persons and property at international airports if the victim or offender is a United States national, or if the offender is located within the U.S. It also includes interfering with airport security screening personnel ahead of a flight, including airport employees or airline employees working at the gate.

    The FBI also investigates bomb threats whether they are made on the ground or in-flight.

    Everyone should be aware of their surroundings while onboard an airplane or in an airport. If you have been the victim of one of these crimes or if you have witnessed one take place, report it to your flight crew, airport authority police and the FBI.

    FBI Philadelphia can be reached at (215) 418-4000 or tips can be reported online at tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI USA: Fact Sheet: President Donald J. Trump Adresses Risks from Perkins Coie LLP

    US Senate News:

    Source: The White House
    STOPPING ABUSES THAT UNDERMINE THE NATION: Today, President Donald J. Trump signed an Executive Order to suspend security clearances held by individuals at Perkins Coie LLP, pending a review of whether their access to sensitive information is consistent with the national interest.
    Security clearances held by Perkins Coie LLP employees will be immediately suspended, pending a review of whether their access to sensitive information is consistent with the national interest.
    The Federal Government will halt all material and services, including sensitive compartmented information facility (SCIF) access provided to Perkins Coie LLP and restrict its employees’ access to government buildings.
    Federal Agencies will also refrain from hiring Perkins Coie LLP employees unless specifically authorized.

    To ensure taxpayer dollars no longer go to contractors whose earnings subsidize partisan lawsuits against the United States, the Federal Government will prohibit funding contractors that use Perkins Coie LLP.
    All Federal Government contracts with Perkins Coie LLP will undergo rigorous scrutiny, with agency heads directed to terminate engagements to the maximum extent permitted by law.

    The practices of Perkins Coie LLP will be reviewed under Title VII to ensure compliance with civil rights laws against racial bias.
    ENSURING GOVERNMENT SERVES THE AMERICAN PEOPLE: President Trump’s Administration will not tolerate Perkins Coie LLP’s unethical and discriminatory actions that threaten our elections, military strength, and national security.
    In 2016, Perkins Coie LLP hired Fusion GPS to manufacture a false “dossier” designed to steal an election while representing failed presidential candidate Hillary Clinton.
    Perkins Coie LLP pushed debunked claims of secret Trump-Russia communications via Alfa Bank, with attorney Michael Sussmann indicted for lying to the FBI about this scheme.
    Perkins Coie LLP has worked with activist donors, including George Soros, to judicially overturn enacted election laws, such as those requiring voter identification.
    A court was forced to sanction Perkins Coie attorneys for unethical lack of candor before the court.

    Perkins Coie LLP has been accused of racially discriminating against its own attorneys, staff, and applicants.
    Perkins Coie has publicly announced racial percentage quotas for hiring and promotions, violating civil rights laws, and excluded applicants from fellowships based on race until lawsuits forced change.

    Perkins Coie LLP hosted an FBI workspace, raising concerns about partisan misuse of sensitive data during investigations targeting President Trump.
    Perkins Coie LLP has filed lawsuits against the Trump Administration, including one designed to reduce military readiness.
    A RETURN TO ACCOUNTABILITY: President Trump is delivering on his promise to end the weaponization of government and protect the nation from partisan actors who exploit their influence.  
    President Trump is refocusing government operations to their core mission—serving the citizens of the United States.  
    President Trump signed an Executive Order to end the weaponization of the Federal Government on his first day in office after promising to “end forever the weaponization of government and the abuse of law enforcement against political opponents.”
    President Trump revoked security clearances held by dozens of intelligence officials who falsely claimed in a 2020 letter, during the height of the U.S. presidential election season, that Hunter Biden’s laptop was tantamount to Russian disinformation.

    MIL OSI USA News –

  • MIL-OSI Security: Foreign National Extradited From Spain To Face Charges For Alleged International “Tech Support Fraud Scheme”

    Source: Office of United States Attorneys

    CHARLOTTE, N.C. – Acting U.S. Attorney Lawrence J. Cameron announced today that Bikramjit Ahluwalia, 39, a dual citizen of the United Kingdom and the United Arab Emirates living in Dubai, was extradited from Spain and will appear in federal court in Charlotte later today. Ahluwalia, also known as “Biku,” “Internetteam5000,” “Don Bonsa,” and “Bobby,” is charged in a federal indictment with conspiracy to commit wire fraud, money laundering conspiracy, conspiracy to damage a protected computer, and wire fraud for his alleged role in an extensive “tech support fraud scheme.”

    Generally, a tech support fraud scheme causes malicious pop-ups to appear on unsuspecting users’ computers, warning their devices have been infiltrated by a virus or another serious computer issue, convincing users to purchase unnecessary repair services or technical support using a telephone number or a link on the victims’ computer screens.

    According to allegations in the indictment, Ahluwalia and his co-defendant, Andrew Brolese, owned Digital Marketing Support Services (DMSS), a Seychelles-based company that published and sold malicious pop-ups as a means of generating customer traffic for overseas call centers from victims of their tech support scheme. From April 2016 to March 2021, Ahluwalia and Brolese and their conspirators targeted victims throughout the United States, some of whom were 55 and older. It is alleged that the victims targeted in the scheme experienced computer pop-ups that mimicked fatal system-error screens, also known as “blue screens of death,” malicious pop-ups suggesting malware had been installed on their computers, or urgent warnings for technical issues related to the victims’ services, software, or devices. The indictment alleges that victims targeted by the malicious pop-ups were then instructed to call a number to receive technical services to help resolve their issues. As alleged in the indictment, the various overseas call centers, upon receipt of the victim call traffic, would use the misrepresentations in the pop-ups, false diagnoses of computer issues, and other deceptive sales techniques to trick the victims into paying hundreds and sometimes thousands of dollars to the call centers to receive unnecessary technical support for the non-existent computer issues.

    The indictment alleges that Ahluwalia and Brolese conspired with others to sell incoming calls from targeted victims seeking purported tech support to companies around the world, including to an individual who owned companies in the Western District of North Carolina. It is further alleged that Ahluwalia and Brolese received over $31.2 million in illicit payments from the tech support scheme, through wire transfers made to DMSS’s bank accounts located overseas.

    Ahluwalia is expected to appear for his initial hearing before U.S. Magistrate Judge David C. Keesler in Charlotte at 10:15 a.m.

    Ahluwalia’s charges for conspiracy to commit wire fraud and wire fraud carry a maximum penalty of 30 years in prison. The maximum sentence for money laundering is 20 years in prison, and for the charge of conspiracy to damage a protected computer is five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    The investigation was led by the Nashville Cyber Task Force which comprises the Knoxville Office of the FBI and the Knoxville Police Department. We thank the government of Spain for their substantial assistance arresting and extraditing Ahluwalia. The Justice Department’s Office of International Affairs provided significant assistance in securing the extradition of Ahluwalia from Spain.

    Assistant U.S. Attorney Matthew Warren with the U.S. Attorney’s Office in Charlotte is prosecuting the case.

     

    MIL Security OSI –

  • MIL-OSI Security: Public Servants Plead Guilty to Covid-19 Relief Fraud

    Source: United States Department of Justice (National Center for Disaster Fraud)

    MIAMI – Angelo Stephen, a Federal Bureau of Prisons (BOP) Correctional Officer, and George Arestuche, a Miami-Dade County Aviation Department employee, have pled guilty to federal charges in separate federal cases for defrauding Covid-19 pandemic relief programs.  

    Stephen pled guilty this week before Chief U.S. District Judge Cecila M. Altonaga to wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL). He also admitted to wire fraud for his participation in two bank account takeover schemes.

    Arestuche pled guilty to conspiracy to commit wire fraud in connection with his receipt of one EIDL and one EIDL advance. Senior U.S. District Judge Paul C. Huck accepted Arestuche’s guilty plea this week.

    Angelo Stephen

    During his change of plea hearing, Stephen admitted that in an EIDL application he submitted to the Small Business Association (SBA), he falsely claimed to be an independent contractor and sole owner of a 10-employee business that did event planning and entertainment services. He also admitted that in this EIDL application, he falsely certified that for the applicable 12-month period, his business had gross revenues of approximately $62,018 and a cost of goods sold of $0. Stephen obtained from the SBA $20,000 in EIDL funds, to which he was not entitled.  

    Stephen also admitted at the change of plea hearing that he submitted false information in two PPP loan applications. In both applications (one submitted in April 2021, the second a month later), Stephen falsely claimed that he owned a business that grossed $106,554 in income in 2020, submitting a fake IRS Form 1040 Schedule C to support his fraudulent requests. Stephen received separate $20,833 PPP loans from two different SBA-approved lenders for the non-existent business.   

    Finally, at the change of plea, Stephen also admitted his role in two bank account takeover schemes. On March 30, 2023, after his first scheme, Stephen received a $20,000 wire transfer from the account of an unsuspecting victim in Virginia, and thereafter quickly withdrew all illegally obtained money through a series of cash withdrawals and through Zelle transfers to others.  In the second takeover scheme, Stephen and his accomplices obtained new checks from the credit union account of a different unsuspecting victim. Stephen then used one of those checks to obtain $8,500 in cash that he was not entitled to. 

    Stephen is scheduled for sentencing on May 22, 2025, at 8:30 a.m. before Chief U.S. District Judge Altonaga in Miami, Florida, where he faces a possible maximum sentence of up to 20 years in prison.

    George Arestuche

    According to the facts admitted at his change of plea, George Arestuche and a co-conspirator devised a scheme to defraud the SBA by submitting a false and fraudulent application to allow Arestuche to fraudulently obtain an EIDL loan in exchange for Arestuche paying the co-conspirator a large fee.

    To carry out this conspiracy, on July 9, 2020, Arestuche’s submitted to the SBA a false and fraudulent EIDL application on Arestuche’s behalf claiming that Arestuche was an independent contractor and the 100% owner of an “Automotive Repair” business operating under the legal and DBA name “george.”  That EIDL application falsely certified that for the 12-month period prior to January 31, 2020, “george” had gross revenues of $600,000, a cost of goods sold of $184,000, and 10 employees.  In reality, Arestuche was not an independent contractor and did not own any type of business.  This EIDL application was supported by a fraudulent 2019 IRS Form 1040 and Schedule C in Arestuche’s name that falsely claimed that he had a “mechanic” business that had gross receipts of $725,000 and earned a net profit of $706,151.  As a result of this false and fraudulent EIDL application, Arestuche obtained from the SBA $149,900 in EIDL proceeds and a $10,000 EIDL advance, and he subsequently paid his co-conspirator $17,275 for helping him fraudulently obtain this money from the SBA.

    Arestuche is scheduled for sentencing on May 12, 2025, at 11:00 a.m. before Senior U.S. District Judge Paul C. Huck in Miami, where he faces a possible maximum sentence of up to 5 years in prison.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Andrew Hartwell of the Department of Justice Office of Inspector General’s Fraud Detection Office (DOJ-OIG), Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Eastern Region, Acting Special Agent in Charge Brett Skiles of the FBI, Miami Field Office, and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC-OIG) announced the guilty pleas.

    DOJ-OIG and SBA-OIG investigated the Stephen case.  SBA-OIG and the FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDC-OIG, investigated the Arestuche case. 

    Assistant U.S. Attorney Edward N. Stamm is prosecuting both cases.  Assistant U.S. Attorney Annika Miranda is handling forfeiture matters on the Stephen case while Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling forfeiture matters on the Arestuche case.

    In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

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

    On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 25-cr-20014 and 25-cr-20001.

    ###

    MIL Security OSI –

  • MIL-OSI USA: Active-Duty and Former U.S. Army Soldiers Arrested for Theft of Government Property and Bribery Scheme

    Source: US State of California

    One Soldier Charged with Conspiring to Transmit National Defense Information to Individuals Located in China

    View the indictment for Jian Zhao.

    Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.

    “The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”

    “While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”

    “We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.

    “These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”

    The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.

    The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.

    Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.

    The FBI and the U.S. Army Counterintelligence Command investigated the case.

    Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI Security: Active-Duty and Former U.S. Army Soldiers Arrested for Theft of Government Property and Bribery Scheme

    Source: United States Attorneys General 7

    One Soldier Charged with Conspiring to Transmit National Defense Information to Individuals Located in China

    View the indictment for Jian Zhao.

    Jian Zhao, and Li Tian, active-duty U.S. Army soldiers stationed at Joint Base Lewis-McChord, along with Ruoyu Duan, a former U.S. Army soldier, were arrested today following indictments by federal grand juries in the District of Oregon and the Western District of Washington. Tian and Duan were charged in the District of Oregon for conspiring to commit bribery and theft of government property. Zhao was charged in the Western District of Washington for conspiring to obtain and transmit national defense information to an individual not authorized to receive it, and also for bribery and theft of government property.

    “The defendants arrested today are accused of betraying our country, actively working to weaken America’s defense capabilities and empowering our adversaries in China,” said Attorney General Pamela J. Bondi. “They will face swift, severe, and comprehensive justice.”

    “While bribery and corruption have thrived under China’s Communist Party, this behavior cannot be tolerated with our service members who are entrusted with sensitive military information, including national defense information,” said FBI Director Kash Patel. “The FBI and our partners will continue to work to uncover attempts by those in China to steal sensitive U.S. military information and hold all accountable who play a role in betraying our national defense. The FBI would like to thank U.S. Army Counterintelligence for their close partnership during this investigation.”

    “We thank the FBI and U.S. Army Counterintelligence Command for their hard work on this investigation and commitment to protecting our national security,” said Acting U.S. Attorney William M. Narus for the District of Oregon.

    “These arrests underscore the persistent and increasing foreign intelligence threat facing our Army and nation,” said Brig. Gen. Rhett R. Cox, Commanding General, Army Counterintelligence Command. “Along with the Department of Justice and FBI, Army Counterintelligence Command will continue to work tirelessly to hold those accountable who irresponsibly and selfishly abandon the Army values and choose personal gain over duty to our nation. We remind all members of the Army team to increase their vigilance and protect our Army by reporting suspicious activity.”

    The indictment in the District of Oregon alleges that beginning on or about Nov. 28, 2021, and continuing to at least on or about Dec. 19, 2024, Duan and Tian along with others, known and unknown to the grand jury conspired with each other to surreptitiously gather sensitive military information related to the United States Army’s operational capabilities, including technical manuals and other sensitive information, and that Tian transmitted this information to Duan in return for money, in violation of his official duties as an active-duty U.S. Army officer. Specifically, Tian was tasked with gathering information related U.S. military weapon systems, including information related to the Bradley and Stryker U.S. Army fighting vehicles, and transmitting them to Duan.

    The indictment in the Western District of Washington alleges that beginning in or about July 2024, and continuing to the date of the arrest, Jian Zhao, an active-duty U.S. Army Supply Sergeant, conspired with others known and unknown to the grand jury to obtain and transmit national defense information to individuals based in China. Zhao is further alleged to have committed bribery and theft of government property.

    Specifically, Zhao was charged for his conspiracy to collect and transmit several classified hard drives, including hard drives marked “SECRET” and “TOP SECRET”, negotiating with individuals based in China for their sale, and agreeing to send the classified hard drives to the individuals in China. In exchange for the sale of the classified hard drives, Zhao received at least $10,000. Zhao is further alleged to have conspired to sell an encryption capable computer that was stolen from the U.S. Government, and sensitive U.S. military documents and information, including information related to the High Mobility Artillery Rocket System (HIMARS), and information related to U.S. military readiness in the event of a conflict with the People’s Republic of China. Zhao is alleged to have violated his duties as a U.S. Army Soldier and public official to protect sensitive military information in exchange for money. In total, Zhao is alleged to have corruptly received and accepted payments totaling at least $15,000.

    The FBI and the U.S. Army Counterintelligence Command investigated the case.

    Assistant U.S. Attorneys Geoffrey Barrow and Katherine Rykken for the District of Oregon and Trial Attorneys Christopher Cook and Yifei Zheng of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI USA: Virginia Man Convicted of Hate Crime for Attempted Church Shooting

    Source: US State Government of Utah

    After a four-day trial, a federal jury returned a guilty verdict today for Rui Jiang, of Falls Church, Virginia, who was charged with attempting to obstruct the congregants of a church in Haymarket, Virginia, in the free exercise of their religious beliefs. The charge included that the defendant’s attempted act involved a dangerous weapon and an attempt to kill. Jiang also faced charges for transmitting online threats and a firearms violation. The jury found Jiang guilty on all counts.

    According to evidence presented at trial, Jiang began posting online threats against the church on the evening of Sept. 23, 2023, which made clear his intention to kill congregants.

    On the morning of Sept. 24, 2023, police began searching for Jiang in response to a concerned citizen’s call about his posts. Police officers located Jiang inside the front entrance to the church while Sunday services were underway. Church volunteers, independently concerned about Jiang’s behavior, had just approached Jiang when police arrived. Jiang was armed with a semiautomatic handgun and two full magazines of ammunition. He had an additional 34 rounds of ammunition in his nearby car.

    During a search of Jiang’s apartment, police discovered five copies of a letter, each signed by Jiang in ink, which read in part, “To the families of those men about to be slain – I am sorry for what I have done and about to do (sic).”

    Jiang was arrested by Prince William County Police on Sept. 24, 2023, and has been in custody since that time.

    Jiang faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. A sentencing hearing has been scheduled for June 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Deputy Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Acting Assistant Director in Charge Roman Rozhavsky of the FBI Washington Field Office made the announcement. 

    The FBI investigated the case, with substantial assistance from the Prince William County and Fairfax County Police Departments. The Anne Arundel County Police Department also provided assistance.

    Assistant U.S. Attorneys Nicholas A. Durham and Troy A. Edwards Jr. for the Eastern District of Virginia and Trial Attorney Kyle Boynton of the Civil Rights Division’s Criminal Section are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: Lancaster man pleads guilty to receiving child pornography

    Source: Office of United States Attorneys

    BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Alexander Grupp, 32, of Lancaster, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to receipt of child pornography, which carries a mandatory minimum penalty of 15 years in prison and a maximum of 40 years.

    Assistant U.S. Attorney Franz M. Wright, who is handling the case, stated that in March 2018, Grupp was convicted in New York State Court of Possessing Obscene Sexual Performance by a Child less than sixteen years of age, and sentenced, in part, to 10 years’ probation. In October 2022, Grupp communicated with a 15-year-old girl using the instant messaging application, Discord. During these conversations, Grupp persuaded the victim to send him nude pictures of herself.

    The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

    Sentencing will be scheduled at a later date.

              # # # # 

    MIL Security OSI –

  • MIL-OSI Security: Portland Couple Sentenced to Federal Prison for Stealing $34 Million from Former Client

    Source: Office of United States Attorneys

    A husband and wife from Portland, who together owned and operated a local chauffeur and limousine business, were sentenced to federal prison Wednesday for stealing $34 million dollars from two former clients.

    Sergey Lebedenko, 54, and Galina Lebedenko, 49, were both sentenced to 57 months in federal prison and three years’ supervised release. The sum of restitution they must pay to the victim will be determined at a later date.

    According to court documents, the Lebedenkos owned and operated a Portland area chauffeur and limousine businesses that eventually became Astra Car Service, LLC. Sergey did the driving, and Galina handled the company’s books and finances.

    The Lebedenkos met their victim in 2007 when Sergey was hired to drive the individual to the airport. The individual soon became a regular customer of the Lebedenkos. By 2018, Sergey was driving the individual almost daily in and around Portland, and Galina was performing other personal tasks for the victim and the victim’s partner including paying their bills, sorting their mail, and providing pet care. This expansive personal services arrangement between the Lebedenkos and their victim continued from approximately 2018 until 2023.

    Despite the volume and frequency of paid services the Lebedenkos provided, they never had a written business agreement or contract. In 2013, Galina produced an invoice showing hourly rates of $90 for driving and $60 for other services. In about 2016, after nearly a decade of working together, the victim gave the Lebedenkos his American Express credit card information so they could directly charge the card for their services.

    Other than the single invoice issued in 2013, the Lebedenkos never provided their victim with logs of their hours or information about how much they were charging for their services. For much of their work, only the Lebedenkos knew the amount of time they spent providing services. On rare occasions, Sergey was questioned by the victim about certain minimal charges and Sergey would repeatedly play up their longstanding, trusting relationship.

    The Lebedenkos stole approximately $34 million over seven years. On a single day in 2023, the Lebedenkos charged their victim’s credit card 17 times for a total of $17,900 for picking up and delivering a prescription and meals.

    The Lebedenkos used their ill-gotten gains to fund an extraordinarily extravagant lifestyle for themselves and others, purchasing 14 homes and properties, 7 vehicles, an ownership interest in a private jet, and countless luxury items including shoes, watches, wallets, jewelry, and gold bars. As part of their sentences, the court entered a Final Order of Forfeiture against assets the Lebedenkos purchased with proceeds of their fraud, including 14 real properties and 19 financial accounts, which are pending forfeiture and sale. The government intends to seek remission of forfeited assets to the victim.

    On January 22, 2024, the Lebedenkos were together charged by federal criminal complaint with committing wire fraud and money laundering. Later, on February 21, 2024, a federal grand jury in Portland returned an indictment charging the couple with conspiracy to commit wire fraud and money laundering, and 34 individual counts of wire fraud.

    On October 25, 2024, the Lebedenkos both pleaded guilty to one count of conspiracy to commit wire fraud, conspiracy to commit money laundering, and wire fraud.

    This case was investigated by the FBI and IRS Criminal Investigation. It was prosecuted by Meredith D.M. Bateman and Andrew T. Ho, Assistant U.S. Attorneys for the District of Oregon. Forfeiture proceedings are being handled by Assistant U.S. Attorney Katie C. de Villiers, also of the District of Oregon.

    MIL Security OSI –

  • MIL-OSI Security: Virginia Man Convicted of Hate Crime for Attempted Church Shooting

    Source: Office of United States Attorneys

    After a four-day trial, a federal jury returned a guilty verdict today for Rui Jiang, of Falls Church, Virginia, who was charged with attempting to obstruct the congregants of a church in Haymarket, Virginia, in the free exercise of their religious beliefs. The charge included that the defendant’s attempted act involved a dangerous weapon and an attempt to kill. Jiang also faced charges for transmitting online threats and a firearms violation. The jury found Jiang guilty on all counts.

    According to evidence presented at trial, Jiang began posting online threats against the church on the evening of Sept. 23, 2023, which made clear his intention to kill congregants.

    On the morning of Sept. 24, 2023, police began searching for Jiang in response to a concerned citizen’s call about his posts. Police officers located Jiang inside the front entrance to the church while Sunday services were underway. Church volunteers, independently concerned about Jiang’s behavior, had just approached Jiang when police arrived. Jiang was armed with a semiautomatic handgun and two full magazines of ammunition. He had an additional 34 rounds of ammunition in his nearby car.

    During a search of Jiang’s apartment, police discovered five copies of a letter, each signed by Jiang in ink, which read in part, “To the families of those men about to be slain – I am sorry for what I have done and about to do (sic).”

    Jiang was arrested by Prince William County Police on Sept. 24, 2023, and has been in custody since that time.

    Jiang faces a mandatory minimum penalty of five years in prison and a maximum penalty of life in prison. A sentencing hearing has been scheduled for June 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Deputy Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, and Acting Assistant Director in Charge Roman Rozhavsky of the FBI Washington Field Office made the announcement. 

    The FBI investigated the case, with substantial assistance from the Prince William County and Fairfax County Police Departments. The Anne Arundel County Police Department also provided assistance.

    Assistant U.S. Attorneys Nicholas A. Durham and Troy A. Edwards Jr. for the Eastern District of Virginia and Trial Attorney Kyle Boynton of the Civil Rights Division’s Criminal Section are prosecuting the case.

    MIL Security OSI –