NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Raleigh Man Pleads Guilty to Attempting to Illegally Export Sensitive Technology to China

    Source: Office of United States Attorneys

    RALEIGH, N.C. – David C. Bohmerwald, the owner of a Raleigh-based electronics resale business called Components Cooper, Inc., pled guilty to attempting to export accelerometer technology with military applications to China without a license, in violation of the Export Control Reform Act (“ECRA”), and faces up to 20 years in prison when sentenced.  The case is the result of the district’s Disruptive Technology Strike Force (DTSF) cell.  

    “North Carolina is home to cutting-edge technologies that fuel our economy, improve our lives, and are vital to national security.  But our status as a major tech hub also makes us a target, as America’s foreign adversaries seek to acquire sensitive tech to advance their military might and interests around the world,” said Acting U.S. Attorney Daniel Bubar, “We’ve launched a multi-agency Disruptive Technology Strike Force cell to shut down international schemes that smuggle sensitive technology and IP to America’s adversaries. This case is just one example, exposing a scheme to evade U.S. export laws by shipping nearly $20,000 worth of accelerometers with missile applications from North Carolina to the People’s Republic of China.”

    “Consistent application and administration of our export controls is crucial for national security and economic stability,” said Jeffrey Levine, Bureau of Industry and Security (BIS) Office of Export Enforcement Special Agent in Charge. “The Disruptive Technology Strike Force is another example of how those agencies with enforcement responsibilities work together to help prevent the proliferation of sensitive technologies and materials that could be used for military or terrorist purposes, ensuring that critical goods do not fall into the wrong hands.”

    “The disruption of this scheme to illegally export sensitive technology means that accelerometers and other items will not be used by unauthorized individuals or for adversarial purposes,” said Special Agent in Charge Cardell T. Morant, who supervises Homeland Security Investigations (HSI) Charlotte that covers North and South Carolina. “HSI is a proud member of the Disruptive Technology Strike Force and cases like this demonstrate HSI’s commitment to keeping military-grade equipment out of the hands of our adversaries. HSI will aggressively investigate, disrupt, and hold accountable criminals that supply sensitive technology to unauthorized users.”

    According to court documents, and information presented in court, Bohmerwald, age 63, purchased 100 accelerometers from a U.S.-based electronics company, and then attempted to export the devices to a company in China. These accelerometers have a wide array of applications ranging from research and development of products to defense uses. When used for military applications, accelerometers are crucial to structural testing, monitoring, flight control, and navigation systems. The technology can help missiles fly more accurately and measure the precise effect munitions have on structures. A license is required to export the accelerometers to China.

    The U.S. based electronics company notified law enforcement due to Bohmerwald’s suspicious and unusual purchase request. Among other things, when Bohmerwald purchased the accelerometers, he claimed that they were for an end user in Missouri. In fact, when federal agents contacted the Missouri company, they denied having an order pending with Bohmerwald and his business, Components Cooper.

    After Bohmerwald received the accelerometers, he dropped two parcels at a local FedEx shipping store. One of the packages was addressed to a business in China. An agent with the Department of Commerce, Bureau of Industry and Security, detained the package and found it contained 100 accelerometers. The agent confirmed that there were no relevant licenses on file to support the export of the items. In addition, Bohmerwald falsely listed the value of the package at $100, when the true value was nearly $20,000. When interviewed by agents, Bohmerwald admitted to acquiring the technology on behalf of a Chinese-based company, knowing that the technology was export-controlled, and knowing export of the items required a license.

    This case was coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. The Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina and Sue Bai, head of the Justice Department’s National Security Division made the announcement after U.S. District Judge Terrence W. Boyle accepted the plea. BIS, the Federal Bureau of Investigation, and Department of Homeland Security, Homeland Security Investigations are investigating the case and Assistant U.S. Attorney Logan Liles and Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-00302-BO.

    MIL Security OSI –

  • MIL-OSI Security: Columbus man pleads guilty to sextorting minor females through social media, possessing child pornography

    Source: Office of United States Attorneys

    COLUMBUS, Ohio – Jacob M. Rager, 21, of Columbus, pleaded guilty in U.S. District Court to sextorting at least two female victims and possessing child pornography. 

    According to court documents, in April 2023, one of Rager’s victims contacted the FBI National Threat Operations Center to report the distribution of nude photos of her at age 17. The female had communicated with Rager on Instagram and sent nude photos of herself to Rager on two occasions in February and November 2022, including once for a $15 payment.

    In March 2023, Rager told the victim to send another nude photo of herself or he would send the prior photos of her to her friends. The victim did not comply, and Rager sent the nude images to a high school friend of the victim.

    In October 2023, Rager sent messages to the victim via a TikTok account saying, “I have your nudes still. Reply unless you want me to expose you to everyone you know…”

    During the course of their investigation, FBI agents became aware of a second victim whose nude images were also distributed to various individuals by Rager.

    Rager sent the second victim a link on her Instagram account in October 2023 that connected to a mega site containing 70 folders. The folders were named after girls who attended Ohio University, including a folder of the victim. The images of videos of the females appeared to have been saved from the Snapchat account of each person.

    Further, Rager created an Instagram account titled with the full name of the second victim and ending with the word “destruction.” He messaged the victim from this account saying, “i have your nudes still. unless you want me to show your friends, family and both your brothers i suggest you reply. im gonna make an example out of you if you don’t reply.”

    Even after being contacted by the FBI and learning of the federal investigation pending against him, Rager continued to contact the second victim from various accounts on TikTok and Instagram.

    When agents searched his cell phone, they discovered Rager possessed other child pornography of females ages approximately 10 to 15 years old. The images included minor females inserting objects like bottles and brushes into their vaginas.

    Possessing child pornography is a federal crime punishable by up to 20 years in prison and using interstate communications to extort carries a potential maximum sentence of up to two years in prison. Congress sets minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, and other members of the FBI’s Child Exploitation and Human Trafficking Task Force announced the guilty plea entered today before U.S. District Judge Algenon L. Marbley. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.

    MIL Security OSI –

  • MIL-OSI Security: North Carolina Man Pleads Guilty to Attempting to Illegally Export Sensitive Technology to China

    Source: United States Attorneys General 10

    David C. Bohmerwald, 63, the owner of a Raleigh-based electronics resale business called Components Cooper Inc., pleaded guilty to attempting to export accelerometer technology with military applications to China without a license, in violation of the Export Control Reform Act (ECRA), and faces a maximum penalty of 20 years in prison when sentenced.

    According to court documents and information presented in court, Bohmerwald purchased 100 accelerometers from a U.S.-based electronics company and then attempted to export the devices to a company in China. These accelerometers have a wide array of applications ranging from research and development of products to defense uses. When used for military applications, accelerometers are crucial to structural testing, monitoring, flight control, and navigation systems. The technology can help missiles fly better and measure the precise effect munitions have on structures. A license is required to export the accelerometers to China.

    The U.S.-based electronics company notified law enforcement due to Bohmerwald’s suspicious and unusual purchase request. Among other things, when Bohmerwald purchased the accelerometers, he claimed that they were for an end user in Missouri. In fact, when federal agents contacted the Missouri company, they denied having an order pending with Bohmerwald and his business, Components Cooper.

    After Bohmerwald received the accelerometers, he dropped two parcels at a local FedEx shipping store. One of the packages was addressed to a business in China. An agent with the Department of Commerce’s Bureau of Industry and Security (BIS), detained the package and found it contained 100 accelerometers. The agent confirmed that there were no relevant licenses on file to support the export of the items. In addition, Bohmerwald falsely listed the value of the package at $100, when the true value was nearly $20,000. When interviewed by agents, Bohmerwald admitted to acquiring the technology on behalf of a Chinese-based company, knowing that the technology was export-controlled, and knowing export of the items required a license.

    Sue Bai, head of the Justice Department’s National Security Division, John Sonderman, performing the non-exclusive duties of the Assistant Secretary for Export Enforcement, Department of Commerce’s Bureau of Industry and Security (BIS), and U.S. Attorney Daniel P. Bubar for the Eastern District of North Carolina made the announcement.

    The BIS, FBI, and Homeland Security Investigations are investigating the case.

    Assistant U.S. Attorney Logan Liles for the Eastern District of North Carolina and Trial Attorney Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    This case was coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. government to enhance the criminal and administrative enforcement of export control laws.

    MIL Security OSI –

  • MIL-OSI USA: Thirteen Members of Houston Robbery Crew Charged in Robbery and Drug Conspiracy

    Source: US State of California

    Three Crew Members Charged With Murder

    A grand jury in the Southern District of Texas returned a superseding indictment yesterday charging 13 Texas men for their roles in a robbery crew that engaged in robbery, drug trafficking, obstruction of justice, and murder, including the killing of two individuals in July 2023.

    The following 13 defendants, all of Houston, have been charged in the superseding indictment with one count of robbery conspiracy and one count of drug distribution conspiracy:

    • Derrick Dewayne Butler, also known as Kutt and Kutt Throat, 28;
    • Travon Maxwell, also known as Goonie, 29;
    • Emmanuel Winnfield, also known as Pimp, 36;
    • Herman Mitchell, also known as Boobie, 37;
    • Tyrone Raymond Bolton, also known as Honeybee, 32;
    • Joe Devon Champion, also known as Champ, 35;
    • Jonta Allen Glover, 32;
    • Dewayne Donnell Champion, also known as Wayne, 37;
    • Cedric Lynn Andrews, also known as Ced, 50;
    • Jermar Ballard Jones, also known as Mar, 37;
    • Christian Xavier Rucker, also known as Gucci, 30;
    • Samuel Lamonte Draper, 25; and
    • Jeremy James Jenkins, 21.

    If convicted, each defendant faces a maximum penalty of 20 years in prison on the robbery conspiracy count and a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison on the drug distribution conspiracy count. In addition, the defendants are each charged with one or more counts of attempt to possess with intent to distribute a controlled substance, and Jones is charged with obstruction.

    Three of the defendants, Butler, Rucker, and Jones, were also charged with two counts of murder in aid of racketeering, using a firearm during a drug trafficking crime, using a firearm during a crime of violence, and two counts of causing death through the use of a firearm relating to the killing of two men on July 19, 2023. If convicted of murder in aid of racketeering, Butler, Rucker, and Jones each face a mandatory minimum of life in prison or a maximum of the death penalty.

    Twelve of the defendants, Bolton, J. Champion, Glover, Winnfield, D. Champion, Mitchell, Andrews, Jones, Butler, Maxwell, Draper, and Jenkins, each face, if convicted, an additional mandatory minimum of five years in prison and a maximum penalty of life in prison for possessing firearms in furtherance of a drug trafficking crime.

    A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, and Special Agent in Charge Douglas A. Williams Jr. of the FBI Houston Field Office made the announcement.

    The FBI Houston Field Office and Houston Police Department investigated the case with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Texas Department of Public Safety. This case is part of both the Criminal Division’s Violent Crime Initiative (VCI) in Houston and an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.

    Trial Attorneys Justin G. Bish, Ralph Paradiso, Ben Tonkin, and Jodi Anton of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Byron H. Black and Kelly Zenón-Matos for the Southern District of Texas are prosecuting the case.

    The Houston VCI is conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.

    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. Additional information about the OCDETF Program can be found on the Justice Department’s OCDETF webpage.

    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: Thirteen Members of Houston Robbery Crew Charged in Robbery and Drug Conspiracy

    Source: United States Attorneys General 1

    Three Crew Members Charged With Murder

    A grand jury in the Southern District of Texas returned a superseding indictment yesterday charging 13 Texas men for their roles in a robbery crew that engaged in robbery, drug trafficking, obstruction of justice, and murder, including the killing of two individuals in July 2023.

    The following 13 defendants, all of Houston, have been charged in the superseding indictment with one count of robbery conspiracy and one count of drug distribution conspiracy:

    • Derrick Dewayne Butler, also known as Kutt and Kutt Throat, 28;
    • Travon Maxwell, also known as Goonie, 29;
    • Emmanuel Winnfield, also known as Pimp, 36;
    • Herman Mitchell, also known as Boobie, 37;
    • Tyrone Raymond Bolton, also known as Honeybee, 32;
    • Joe Devon Champion, also known as Champ, 35;
    • Jonta Allen Glover, 32;
    • Dewayne Donnell Champion, also known as Wayne, 37;
    • Cedric Lynn Andrews, also known as Ced, 50;
    • Jermar Ballard Jones, also known as Mar, 37;
    • Christian Xavier Rucker, also known as Gucci, 30;
    • Samuel Lamonte Draper, 25; and
    • Jeremy James Jenkins, 21.

    If convicted, each defendant faces a maximum penalty of 20 years in prison on the robbery conspiracy count and a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison on the drug distribution conspiracy count. In addition, the defendants are each charged with one or more counts of attempt to possess with intent to distribute a controlled substance, and Jones is charged with obstruction.

    Three of the defendants, Butler, Rucker, and Jones, were also charged with two counts of murder in aid of racketeering, using a firearm during a drug trafficking crime, using a firearm during a crime of violence, and two counts of causing death through the use of a firearm relating to the killing of two men on July 19, 2023. If convicted of murder in aid of racketeering, Butler, Rucker, and Jones each face a mandatory minimum of life in prison or a maximum of the death penalty.

    Twelve of the defendants, Bolton, J. Champion, Glover, Winnfield, D. Champion, Mitchell, Andrews, Jones, Butler, Maxwell, Draper, and Jenkins, each face, if convicted, an additional mandatory minimum of five years in prison and a maximum penalty of life in prison for possessing firearms in furtherance of a drug trafficking crime.

    A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, and Special Agent in Charge Douglas A. Williams Jr. of the FBI Houston Field Office made the announcement.

    The FBI Houston Field Office and Houston Police Department investigated the case with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Texas Department of Public Safety. This case is part of both the Criminal Division’s Violent Crime Initiative (VCI) in Houston and an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.

    Trial Attorneys Justin G. Bish, Ralph Paradiso, Ben Tonkin, and Jodi Anton of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Byron H. Black and Kelly Zenón-Matos for the Southern District of Texas are prosecuting the case.

    The Houston VCI is conducted in partnership with the U.S. Attorney’s Office for the Southern District of Texas and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Houston. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.

    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. Additional information about the OCDETF Program can be found on the Justice Department’s OCDETF webpage.

    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 Video: Use of Canines to Solve Crime

    Source: US National Institute of Justice (video statements)

    This training was presented as a part of the National Center on Forensics conference at George Mason University on August 8th, 2023. In this session, FBI Forensic Canine Operations Specialist Craig Schultz discusses canine application in the United States and how canines are being utilized regarding human scent evidence and human remains. This presentation is geared specifically for scientists and practitioners to understand the limitations and the strengths of canines and how science, law, and canines come together to reach a specific goal.

    (Opinions or points of view expressed represent the speaker and do not necessarily represent the official position or policies of the U.S. Department of Justice. Any product or manufacturer discussed is presented for informational purposes only and do not constitute product approval or endorsement by the U.S. Department of Justice.)

    https://www.youtube.com/watch?v=Z6z3FMnpsh8

    MIL OSI Video –

  • MIL-OSI Video: Impression Session: Firearms and Toolmarks

    Source: US National Institute of Justice (video statements)

    This training was presented as a part of the National Center on Forensics Conference at George Mason University on August 10th, 2023. In this session, NIST Senior Forensic Science Research Manager Rob Thompson and FBI Supervisory Physical Scientist/Forensic Examiner Michelle Machalka introduce the concepts of firearm and fingerprint impressions. This session is useful for understanding what impressions are, how they transfer, how they are collected, how they are analyzed, and what challenges analysts encounter.

    (Opinions or points of view expressed represent the speaker and do not necessarily represent the official position or policies of the U.S. Department of Justice. Any product or manufacturer discussed is presented for informational purposes only and do not constitute product approval or endorsement by the U.S. Department of Justice.)

    https://www.youtube.com/watch?v=CNfyG_HkPtY

    MIL OSI Video –

  • MIL-OSI Video: DNA 101

    Source: US National Institute of Justice (video statements)

    This training was presented as a part of the National Center on Forensics conference at George Mason University on August 8th, 2023. In this session, FBI Forensic DNA Examiner Amanda Bakker introduces all the most vital concepts of DNA analysis and evidence. For those who aren’t DNA analysts but work in tangential fields such as law enforcement and criminal justice, this session will be incredibly useful for understanding topics such as what DNA is, how it transfers, how it is collected, and how it is analyzed.

    (Opinions or points of view expressed represent the speaker and do not necessarily represent the official position or policies of the U.S. Department of Justice. Any product or manufacturer discussed is presented for informational purposes only and do not constitute product approval or endorsement by the U.S. Department of Justice.)

    https://www.youtube.com/watch?v=5vlD1S1918E

    MIL OSI Video –

  • MIL-OSI Security: Former Employee Sentenced to Federal Prison for Embezzling More Than $135,000 From Dupo School District

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

    EAST ST. LOUIS, Ill. – A judge sentenced a Waterloo woman to 15 months’ incarceration, requiring three months in the Federal Bureau of Prisons and 12 additional months in community confinement, for embezzling more than $135,000 from Dupo Community Unit School District #196 while employed by the district.

    Linda J. Johnson, 58, pleaded guilty in federal court to one count of theft from a federally funded program. In addition to imprisonment, Johnson was ordered to pay $135,566.80 in restitution to Dupo Community Unit School District #196 and the Ohio Casualty Insurance Company.

    According to court documents, Johnson committed the embezzlement while employed in an administrative support role in the superintendent’s office between 2016 and 2022.

    In this position, Johnson was responsible for depositing cash and checks into the district’s activities account intended to support student athletics, clubs and extracurriculars. She stole donations and funds raised to support yearbook, cheer, dance, vending machines, trivia nights, science clubs, ROTC and more.

    To conceal her crime, Johnson drafted bank deposit slips reflecting the correct amount of cash and checks received, but later she prepared a second set of fraudulent deposit slips that only accounted for the checks, while she kept the cash.

    Johnson committed 165 fraudulent transactions, and the loss to the school district was $135,566.80. OCIC incurred a portion of the loss after issuing a Public Official Bond insuring Johnson’s duties as the bookkeeper.

    District officials said the sentencing holds Linda Johnson responsible for severely violating public trust, for the crime directly harmed students, staff and the Dupo School District. The district is resolute in its commitment to safeguarding district resources and ensuring accountability. The district extends sincere gratitude to the U.S. Attorney’s Office, FBI and Dupo Police Department for their work on this case. The district believes the court’s decision sends a clear message that such actions will not be tolerated in schools.

    The Dupo Police Department and the FBI Springfield Field Office contributed to the investigation, and Assistant U.S. Attorney Steve Weinhoeft prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Fraudster Receives Prison Sentence in Illegal Paycheck Protection Program Scheme

    Source: Office of United States Attorneys

    ATLANTA – Jerry Baptiste, the last of 20 defendants charged in a wide-ranging criminal scheme to steal Paycheck Protection Program funds during the COVID-19 pandemic, has been sentenced for his role in the scheme.

    “This defendant and his co-conspirators used an unprecedented global crisis to defraud the government and the American people,” said Acting U.S. Attorney Richard S. Moultrie, Jr. “Today’s tough, but fair, sentence sends the message that stealing from the government does not pay.” 

    “This sentencing wraps up an exhaustive investigation into a fraud scheme that stole emergency funds from businesses and individuals that desperately needed them during the Covid-19 pandemic,” said Paul Brown, Special Agent in Charge of FBI Atlanta.  “The FBI will make every effort to ensure federal funds are used as intended and punish anyone who would steal from our government.”

    “The sentencings of the 20 defendants serves as a reminder to those who committed PPP fraud that investigations into their criminal acts have not ended,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents will continue their diligent search for those who defrauded the American people during the COVID-19 pandemic.”

    According to Acting U.S. Attorney Moultrie, the third superseding indictment, and other information presented in court: from April 2020 through May 2020, Jerry Baptiste conspired with Darrell Thomas, Denesseria Slaton, Amanda Christian, Charles Petty, Bern Benoit, and others to submit a fraudulent Paycheck Protection Program (“PPP”) loan application for Transportation Management Services Inc. (“Transportation Management”), a company that Benoit purported to own. The PPP loan application for Transportation Management falsely represented that it maintained 66 employees and an average monthly payroll of $332,167, and that it would use the PPP funds for payroll, lease payments or mortgage interest, and utilities.

    To support its payroll figures, Transportation Management submitted with its PPP loan application false IRS Form 941s, which are the Employer’s Quarterly Federal Tax Return, for each quarter of 2019. Transportation Management also included with its PPP loan application a fraudulent bank statement. Through the Transportation Management PPP loan application, Baptiste and his co-conspirators fraudulently obtained $830,417. Baptiste also participated in preparing other fraudulent PPP loans.

    Jerry Baptiste, 47, of Miami, Florida was sentenced by U.S. District Judge J. P. Boulee to six and a half years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of$830,417. On October 29, 2024, Baptiste pleaded guilty to money laundering pursuant to a negotiated plea agreement.

    All the defendants in Baptiste’s case have now been convicted and sentenced, with punishments ranging from probation to 15 years’ imprisonment:

    • Darrell Thomas. On June 16, 2021, Thomas pleaded guilty to charges of conspiracy to commit bank and wire fraud and money laundering. On May 9, 2022, Thomas was sentenced to 180 months’ imprisonment followed by five years of supervised release, and ordered to pay $13,206,752.10 in restitution.
    • Andre Lee Gaines. On June 17, 2021, Gaines pleaded guilty to the charge of making a false statement. On October 5, 2021, Gaines was sentenced to five years’ probation and ordered to pay $806,710 in restitution.
    • Kahlil Gibran Green. On September 1, 2020, Green pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On January 14, 2021, Green was sentenced to 41 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,000 in restitution.
    • Bern Benoit. On March 11, 2021, Benoit pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On September 8, 2021, Benoit was sentenced to 27 months’ imprisonment followed by five years of supervised release, and ordered to pay $1,105,217 in restitution.
    • Carla Jackson. On February 15, 2024, Jackson was found guilty of money laundering by jury verdict. On May 16, 2024, Jackson was sentenced to 36 months’ imprisonment followed by two years of supervised release, and ordered to pay $335,238.22 in restitution.
    • Ricky Dixon. On August 1, 2022, Dixon pleaded guilty to the charges of aggravated identity theft and conspiracy to commit money laundering. On January 25, 2023, Dixon was sentenced to 100 months’ imprisonment followed by three years of supervised release, and ordered to pay $4,320,928.31 in restitution.
    • Meghan Thomas. On July 27, 2022, Thomas pleaded guilty to the charge of conspiracy to commit wire fraud. On May 23, 2023, Thomas was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $2,381,760.35 in restitution.
    • Jesika Blakely. On March 15, 2022, Blakely pleaded guilty to the charge of conspiracy to commit money laundering. On February 8, 2023, Blakely was sentenced to 36 months’ imprisonment followed by three years of supervised release, and ordered to pay $5,348,498.89 in restitution.
    • Amanda Christian. On March 5, 2022, Christian pleaded guilty to the charge of conspiracy to commit wire fraud. On September 13, 2022, Christian was sentenced to 41 months’ imprisonment followed by three years of supervised release, and ordered to pay $835,542 in restitution.
    • Dwan Ashong. On June 29, 2022, Ashong pleaded guilty to the charge of conspiracy to commit money laundering. On October 31, 2022, Ashong was sentenced to 51 months’ imprisonment followed by three years of supervised release, and ordered to pay $3,604,807 in restitution.
    • John Gaines. On January 31, 2024, Gaines pleaded guilty to the charge of money laundering. On June 26, 2024, Gaines was sentenced to 63 months’ imprisonment followed by three years of supervised release, and ordered to pay $806,710 in restitution.
    • Charles Petty. On November 2, 2021, Petty pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On February 25, 2022, Petty was sentenced to 46 months’ imprisonment followed by five years of supervised release, and ordered to pay $830,417 in restitution.
    • Derek Parker. On April 14, 2022, Parker pleaded guilty to the charge of conspiracy to commit wire fraud. On August 31, 2022, Parker was sentenced to 18 months’ imprisonment followed by three years of supervised release, and ordered to pay $163,620.40 in restitution.
    • David Belgrave II. On May 25, 2022, Belgrave pleaded guilty to the charge of conspiracy to commit bank and wire fraud. On August 25, 2022, Belgrave was sentenced to nine months’ imprisonment followed by three years of supervised release, with 18 months on home detention, and ordered to pay $877,000 in restitution.
    • Charles Hill IV. On September 29, 2021, Hill pleaded guilty to conspiracy to commit wire fraud. On January 12, 2022, Hill was sentenced to five years’ probation, with 27 months on home detention, and ordered to pay $1,004,805 in restitution.
    • Ryan Whittley. On May 25, 2022, Whittley pleaded guilty to the charge of conspiracy to commit wire fraud. On August 29, 2022, Whittley was sentenced to 21 months’ imprisonment followed by three years of supervised release, and ordered to pay $797,275 in restitution.
    • El Hadj Sall. On August 24, 2022, Sall pleaded guilty to the charge of conspiracy to commit wire fraud. On November 29, 2022, Sall was sentenced to 27 months’ imprisonment followed by three years of supervised release, and ordered to pay $973,585 in restitution.
    • Rick McDuffie. On April 27, 2022, McDuffie pleaded guilty to the charge of conspiracy to commit wire fraud. On August 23, 2022, McDuffie was sentenced to 24 months’ imprisonment followed by one year of supervised release, and ordered to pay $5,125 in restitution.
    • Teldrin Foster. On February 15, 2024, Foster was found guilty of conspiracy to commit wire fraud, conspiracy to commit bank and wire fraud, wire fraud, bank fraud, making a false statement to a federally insured bank, and money laundering by jury verdict. On June 25, 2024, Foster was sentenced to 121 months’ imprisonment followed by three years of supervised release, and ordered to pay $9,606,627.35 in restitution. 

    This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation.

    Assistant U.S. Attorneys Samir Kaushal and Nathan Kitchens, and former Assistant U.S. Attorneys Tal Chaiken and Norman Barnett, of the Northern District of Georgia, and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section, prosecuted the case.

    The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (“NCDF”) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.         

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

    MIL Security OSI –

  • MIL-OSI Security: Jewelry Store Robber Sentenced to 19 Years for East Coast Robbery Conspiracy

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

    Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Avery Fuller (30, Washington D.C.) to 19 years in federal prison for conspiracy to commit Hobbs Act robberies in New Jersey and Florida and brandishing a firearm during the robberies. Fuller pleaded guilty on October 29, 2024.

    According to court documents, Fuller and his co-conspirators planned and executed a series of jewelry store robberies in New Jersey, Florida, and the District of Columbia. Based in the Washington, D.C. area, the group targeted predominantly South Asian jewelry stores along the east coast. Wearing disguises and armed with firearms, they used hammers to smash jewelry display cases and steal valuable items. These stores were specifically chosen because they sold high-purity gold, which yielded higher proceeds when sold for cash.

    On June 10, 2022, Fuller, along with Trevor Wright, William Hunter, Franklin Hunter, Davon Johnson, and at least four other co-conspirators, committed an armed robbery of Virani Jewelers, located at 1394 Oaktree Road in Iselin, New Jersey. The group left Washington, D.C., at approximately 12:09 p.m., and traveled together in three separate vehicles. At approximately 7:45 p.m., Fuller and his co-conspirators arrived at Virani, exited their vehicles, and ran into the store wearing masks.

    Once inside the store, Fuller and his co-conspirators pointed firearms at store employees. Two of the co-conspirators immediately forced at least two employees to the ground at gunpoint. Hunter and another co-conspirator used hammers to smash the display cases throughout the store and one of the store’s cameras. One co-conspirator pointed his firearm at the back of an employee’s head, pushed her to the back of the store, and commanded her to open the vault. Other co-conspirators shoveled gold jewelry into bags before exiting the store and entering the vehicles; all three vehicles fled from the scene together. After the robbery, Fuller and his-conspirators immediately traveled back to Washington, D.C. with approximately $1.2 million in gold jewelry, which they ultimately melted down into bars of gold and split among the group by grams of gold.

    Approximately six months later, in early December 2022, Fuller and his co-conspirators—Trevor Wright, Jameise Christian, Antonio Tate, Delontae Martin, and Jaylaun Brown—planned another robbery, this time at a jewelry store in Jacksonville. To prepare, Fuller and Wright coordinated everyone’s travel from Washington, D.C., to Miami, where they rented a black vehicle and a white vehicle. On December 6, 2022, the group drove these vehicles to Jacksonville. Upon arrival at the jewelry store, four co-conspirators exited the black vehicle, entered the store wearing disguises, and brandished firearms. One co-conspirator ordered store employees to kneel behind the counter with their heads down while the group used a hammer to smash glass display cases. Meanwhile, Wright and Fuller remained in the white vehicle to monitor the store’s entrance.

    After approximately three minutes, one of the conspirators exited the store and drove the black vehicle directly in front of the store, honking the horn to signal the others to exit. Before leaving, one co-conspirator approached the store employees kneeling in the corner, pointed his firearm, and stole the store owner’s wallet. The group then loaded the stolen jewelry into the trunk of the black vehicle and fled the scene, with the white vehicle traveling in the same direction. The group stole approximately $880,000 in jewelry from the jewelry store.

    Through the collaborative efforts of multiple law enforcement agencies and the U.S. Attorney’s Office in the District of Columbia, this complex investigation resulted in the identification of six individuals, who were eventually traced back to Miami. The suspects were observed at a Miami condominium, where they were seen exiting their vehicles unmasked and carrying the stolen jewelry.

    To date, all individuals involved in the Jacksonville and New Jersey robberies have been arrested with pending federal cases in Jacksonville and Washington, D.C. In Jacksonville, Delontae Martin, Antonio Tate, and Jameise Christian pleaded guilty to brandishing a firearm in furtherance of the Jacksonville robbery. Martin was sentenced to 9 years’ imprisonment, Tate was sentenced to 10 years in federal prison, and Christian was sentenced to 12 years and 10 months in federal prison. Trevor Wright and Jaylaun Brown are in custody and awaiting trial in Washington, D.C. for robbery and firearm offenses.

    This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sheriff’s Office, and the Miami Police Department. It is being prosecuted by Assistant United States Attorney Kirwinn Mike.

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

    MIL Security OSI –

  • MIL-OSI Security: North Carolina Man Pleads Guilty to Armed Carjacking of Off-Duty South Carolina Police Detective

    Source: Office of United States Attorneys

    COLUMBIA, S.C. —Shia Lee, 35, of Burlington, North Carolina has pleaded guilty to brandishing a firearm in connection with a violent crime for the armed carjacking of an off-duty South Carolina police detective and his wife.

    According to evidence presented in court, on Dec. 19, 2020, the detective and his wife were travelling on Interstate 26 passing through the Orangeburg area. Their car was parked with the detective in the passenger seat and his wife in the driver’s seat as they were switching drivers.

    Lee walked up to the driver’s side, demanded the car, and the victim driver fought back and resisted. Lee then brandished a firearm at the victim and ordered her out of the vehicle. With the firearm pointed at her, she complied. Lee entered the car, saw the officer in the passenger seat, and pointed the firearm at the second victim, which the officer recognized to be a 9mm or a .380 caliber pistol.  The second victim exited the vehicle, and Lee took control of the car.  Lee then drove the victims’ Jeep Cherokee away from the rest stop along with the police detective’s duty weapon and police badge.

    One day later, 911 dispatch received a call for service associated with a separate alleged vehicle theft from a gas station in Branchville while the victim was inside. Lee was arrested in that car after the Denmark Police Department pursued Lee in a chase and deployed stop sticks. The off-duty officer’s car was found abandoned on a local road, and Lee’s car was found by the Orangeburg County Sheriff’s Office at the rest stop with another firearm inside, along with Lee’s identifying documents.

    The carjacking victims identified Lee in a photo lineup, and Lee admitted his involvement to Orangeburg County deputies. A federal grand jury then indicted Lee on charges of carjacking and the brandish of a firearm in connection with a crime of violence.

    Lee faces a maximum penalty of life in federal prison and a mandatory minimum of seven years. He also faces a fine of up to $250,000, restitution for any losses incurred by the victims, and five years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Lee after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.

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

    This case was investigated by the FBI Columbia Field Office, the Orangeburg County Sheriff’s Office, and the Denmark Police Department. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Jury Convicts South Carolina Man Of Attempted Extortion, Stalking, And Wire Fraud

    Source: Office of United States Attorneys

              KALAMAZOO – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that a federal jury convicted Glenn Daeward Boyd, 36, of Kershaw, South Carolina, of attempted extortion, stalking, and five counts of wire fraud. Boyd is scheduled to be sentenced on a date determined by the court. At sentencing, Boyd faces a maximum sentence of 20 years in prison for attempted extortion, 5 years in prison for stalking, and 20 years in prison for each count of wire fraud.

              “Perpetrators like Mr. Boyd who attempt to extort people online using sexual exploitation will be held accountable, and cannot hide behind their cell phones and computers,” said Acting U.S. Attorney Birge. “We will continue to investigate and prosecute these crimes that often result in tragedy.”

              According to the evidence from a two-day jury trial in Kalamazoo, while in prison in South Carolina for unrelated criminal convictions, Boyd purported to be “Jad,” an 18-year-old girl from Grand Rapids, Michigan on the “Plenty of Fish” dating application, and communicated with B.G. beginning on August 2, 2023. Two days later, Boyd, continuing to pose as “Jad,” told B.G. he was a 15-year-old girl. Boyd then assumed the identity of “Jad’s grandparents,” threatening B.G. that “they” would contact police and B.G.’s family to report B.G. as a pedophile if B.G. did not send Boyd money. Boyd also used a Facebook profile to post on an account related to B.G.: “He is a pedophile I have all the evidence if anyone wants to see it.” In response, and on the same day of the threats, B.G. reported Boyd’s extortion and scheme to police, and then committed suicide. B.G. was 22 years old.

              “Glenn Boyd’s conviction sends a clear and powerful message: individuals who engage in online exploitation and financial crimes will be held fully accountable under the law,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “This case involved a financially driven sextortionist who specifically targeted and manipulated the victim for personal gain. The investigation was a collaborative effort, involving the Wyoming (Michigan) Police Department, South Carolina Department of Corrections-Office of Inspector General, South Carolina Department of Corrections, Newaygo County Sheriff’s Office, Van Buren County Sheriff’s Office, FBI Charlotte, FBI Columbia, and FBI Omaha. If you or someone you know is a victim of sextortion, we strongly urge you to contact local law enforcement or reach out to the FBI directly at 1-800-CALL-FBI, or submit a tip online at tips.fbi.gov.”

              The Federal Bureau of Investigation, Wyoming Police Department, South Carolina Department of Corrections, Newaygo County Sheriff’s Department, and Van Buren County Sheriff’s Department investigated this case. Assistant U.S. Attorneys Constance R. Turnbull and Jonathan Roth are prosecuting it.

              The FBI provides the following tips on how people can protect themselves from online sextortion schemes:

    1. Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
       
    2. Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
       
    3. Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
       
    4. Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
       
    5. Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
       
    6. Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.

              If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. More FBI sextortion resources are available here.

    # # #

    MIL Security OSI –

  • MIL-OSI USA: Crypto 2.0: Regulatory Whiplash

    Source: Securities and Exchange Commission

    [1]Today the Commission moved the Court to dismiss its enforcement action against Coinbase, a crypto trading platform. This reverse-course midstream – coupled with recent high-profile stays of other litigations – is not only unprecedented, it ignores 80 years of well-established law.  We say we are dismissing the action because of future recommendations that may be made by the “crypto task force dedicated to helping the Commission develop the regulatory framework for crypto assets.”[2] But, whatever the law may be tomorrow, market participants should not be able to avoid the law as it stands today. 

    The Commission has brought numerous actions to enforce the securities laws with respect to crypto assets since their advent, during both Republican and Democratic administrations.[3] And, court after court has upheld the Commission’s jurisdiction in this space.[4] In fact, in the Coinbase matter the Commission moved to dismiss today, the court had found that the Commission adequately pleaded violations of the securities laws. The court explained that: “[t]he SEC has a long history of proceeding through [enforcement] actions to regulate emerging technologies and financial instruments within the ambit of its authority as defined by cases like Howey[.] Using enforcement actions to address crypto-assets is simply the latest chapter in the long history of giving meaning to the securities laws through iterative application to new situations.”[5] The court also held that “the challenged transactions fall comfortably within the framework that courts have used to identify securities for nearly eighty years.”[6] The Commission’s action today blithely tosses aside that body of precedent. 

    I have heard many say that the industry craves legal clarity. Today’s action results in less clarity. I have and will continue to work with participants who seek to operate within the securities laws. Or, should the Commission enact new regulations or Congress change the law, we can progress down a different path. But until that time, we have a framework in place and that framework should be applied and enforced equally as to all participants. 

    Far from clarity, today’s action creates more uncertainty. What exactly is the law as it applies to crypto assets? How can we pursue fraudulent conduct in this space while casting doubt on our regulatory jurisdiction? Are we eroding our ability to police fraudulent Ponzi[7] schemes? Are we poised to give special treatment to crypto assets over traditional assets, or even other emerging assets? What effects will this have on our traditional markets and financial instruments? The newly created crypto task force may intend to make recommendations to answer some of these questions, but we do not have any legally enforceable answers yet. In fact, the most salient change to date has been this retreat from enforcement of the securities laws with respect to crypto.[8] Or, “regulation by non-enforcement.”

    It may well be that “environments in which the law is unclear are havens for bad actors,”[9] but wholesale failure to enforce the law seems worse. There are well known risks in this industry ̶  fraud and manipulation, money laundering, national security concerns, volatility, and retail investor losses  ̶  just to name a few.[10] 

    Lastly, today’s action undermines the credibility of our Division of Enforcement. It creates the specter that the agency will deploy its enforcement resources in conjunction with election cycles or in favor of those with means. This invites criticism that our agency is politicized and sows distrust in government. Our agency’s job is to do what is right for investors, issuers, and capital markets. This is not it. 

    [1] The views that I express are my own as a Commissioner and not necessarily those of the SEC or staff (and are decidedly not those of my current fellow Commissioners). 

    [4] See e.g., SEC v. Binance, Plaintiff Securities and Exchange Commission’s Memorandum of Law in Opposition to Defendants’ Motion to Dismiss the Amended Complaint, 23-cv-01599-ABJ-ZMF, ECF No. 290, at 9-10 (D.D.C. Dec. 4, 2024) (discussing Commission claims “premised solely on secondary market transactions in crypto assets” and that “many courts have allowed a variety of securities laws claims to proceed on such claims,” and citing SEC v. Coinbase,726 F. Supp. 3d 260 (S.D.N.Y. 2024); SEC v. Payward Ventures, Inc., 2024 WL 4511499 (N.D. Cal. Aug. 23, 2024); SEC v. Wahi, 2024 WL 896148 (W.D. Wash. Mar. 1, 2024); Harper v. O’Neal, 2024 WL 3845444, (S.D.Fla. Aug. 16, 2024); Dufoe v. DraftKings Inc., 2024 WL 3278637 (D.Mass. July 2, 2024); In re Ripple Labs Inc., 2024 WL 3074379 (N.D. Cal. Jun. 20, 2024); Patterson v. Jump Trading, 710 F. Supp. 3d 692 (N.D. Cal. 2024); Barron v. Helbiz Inc., 2021 WL 229609 (S.D.N.Y. Jan. 22, 2021), vacated on other grounds, 2021 WL 4519887 (2d Cir. Oct. 4, 2021); Samuels v. Lido DAO, 2024 WL 4815022 (N.D. Cal. Nov. 18, 2024); Hardin v. Tron Found., 2024 WL 4555629 (S.D.N.Y. Oct. 23, 2024); Houghton v. Leshner, 2023 WL 6826814 (N.D. Cal. Sept. 20, 2023); Owen v. Elastos Found., 2021 WL 5868171 (S.D.N.Y. Dec. 9, 2021)). See also Gurbir Grewal, What’s Past is Prologue: Enforcing the Federal Securities Laws in the Age of Crypto (July 2, 2024) (stating “in every case, where federal courts have had to determine whether there were “securities” at issue, the courts have applied the Howey test—looked at the economic realities of the offerings, and, even though the offerings at issue involved supposedly novel technologies, rejected defense arguments that they were not securities” and citing multiple cases in footnotes 26 and 66, including SEC v. LBRY, 639 F. Supp. 3d 211 (D.N.H. 2022); SEC v. Kik Interactive Inc., 492 F. Supp. 3d 169 (S.D.N.Y. 2020); SEC v. Telegram Group Inc., 448 F. Supp. 3d 352 (S.D.N.Y. 2020); SEC v. Blockvest, LLC, 18-CV-2287-GPB(BLM), 2019 WL 625163 (S.D. Cal. Feb. 14, 2019); SEC v. Terraform Labs, No. 23-cv-1346-JSR, 2023 U.S. Dist. LEXIS 230518 (S.D.N.Y. Dec. 28, 2023)).

    [5] SEC v. Coinbase, Opinion and Order, 23-cv-4738, ECF No. 105, at p. 34.

    [6] Id. at p. 2.

    [7] U.S. Securities and Exchange Commission, Investor.gov, Ponzi Scheme (explaining that “[a] Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors… With little or no legitimate earnings, Ponzi schemes require a constant flow of new money to survive. When it becomes hard to recruit new investors, or when large numbers of existing investors cash out, these schemes tend to collapse.”) (last visited Feb. 27, 2025).

    [8] It seems likely that we will continue down this path. See Commissioner Hester M. Peirce, The Journey Begins (Feb. 4, 2025) (launching a “journey” that will result in the Crypto Task Force “determining how to best disentangle all these strands, including ongoing litigation.”). 

    [10] In fact, on the same day that Coinbase filed a Form 8-K announcing that it had reached an agreement in principle with Commission staff to dismiss the litigation against it, another crypto exchange announced a hack with losses estimated at nearly $1.5 billion, reportedly the largest in crypto history. See David Yaffe-Bellany, Banner Day For Crypto Takes a Turn, N.Y. Times, Feb. 24, 2025; see also Chainalysis, The 2025 Crypto Crime Report (Feb. 2025) (reporting on the “rising role of cryptocurrency in all forms of crime” and noting that “[a]lthough illicit activity on-chain previously revolved heavily around cybercrime, cryptocurrency is now also being used to fund and facilitate all kinds of threats, ranging from national security to consumer protection. As cryptocurrency has gained greater acceptance, illicit on-chain activity, too, has become more varied. For example, some illicit actors primarily operate off-chain, but move funds on-chain for laundering.”); Federal Bureau of Investigation, 2023 Cryptocurrency Fraud Report Released (Sept. 10, 2024) (reporting that “[l]osses related to cryptocurrency fraud totaled over $5.6 billion in 2023, a 45% increase in losses since 2022” and that “[t]he number of complaints from the public regarding cryptocurrency fraud continues to steadily increase, reaching 69,000 in 2023.”); Gurbir Grewal, What’s Past is Prologue: Enforcing the Federal Securities Laws in the Age of Crypto (July 2, 2024) (describing how investors in crypto are being harmed); SEC Office of Investor Education and Advocacy, 5 Ways Fraudsters May Lure Victims Into Scams Involving Crypto-Asset Securities – Investor Alert (Feb. 29, 2024) (issuing an alert “because fraudsters continue to exploit the popularity of crypto assets to lure retail investors into scams”); U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Exercise Caution with Crypto Asset Securities: Investor Alert (Mar. 23, 2023) (urging investors to be cautious if investing in crypto asset securities because, among other things, they “can be exceptionally volatile and speculative” and “the risk of loss for individual investors…remains high.”). 

    MIL OSI USA News –

  • MIL-OSI USA: Lee Introduces the Saving Privacy Act for 119th Congress

    US Senate News:

    Source: United States Senator for Utah Mike Lee

    WASHINGTON – Senator Mike Lee (R-UT) introduced the Saving Privacy Act, a bill to end government abuse of Americans’ financial information. For years, federal agencies have been overreaching in their surveillance, collecting vast amounts of personal financial data from law-abiding citizens without just cause. Senator Rick Scott (R-FL) is an original co-sponsor of the bill.

    “The federal government has no business surveilling the financial activities of millions of innocent Americans,” said Senator Lee. “The current system erodes the privacy rights of citizens, while doing little to effectively catch true financial criminals. My Saving Privacy Act ensures that Americans’ personal information is protected and that government agencies operate within the bounds of the Constitution.” 

    “Big government has no place in law-abiding Americans’ personal finances. It is a massive overreach of the government and a gross violation of their privacy,” said Senator Rick Scott. “That is why I am teaming up with Senator Lee so that we can protect Americans’ personal financials for good. Our Saving Privacy Act will allow federal agencies to go after criminals while also protecting innocent Americans’ data. This is commonsense legislation, and I am urging my colleagues to support its immediate passage.”   

    “For decades, outdated banking regulations have subjected citizens to excessive financial surveillance, compelling institutions to enforce intrusive measures that directly led to the debanking of innocent Americans spending their own money. The Saving Privacy Act offers comprehensive reforms, striking a balance that restores consumer rights, establishes sensible standards for innovators while curbing illicit activities, and reinvigorates the commitment to sound consumer financial privacy. –Yaël Ossowski, Deputy Director at the Consumer Choice Center.

    “Senator Lee has been an indefatigable leader in the effort to end the federal government’s mass surveillance of Americans financial lives. A precondition of liberty is the ability to go about your business without the government tracking your every move, and the Saving Privacy Act is an important step in the right direction. The Taxpayers Protection Alliance thanks Senator Lee for his hard work and commitment to preserving liberty and privacy.” –David Williams, Taxpayers Protection Alliance President 

    “This kind of reform restores the proper balance—as provided by the Fourth Amendment—between Americans’ privacy rights and law enforcement’s ability to gather evidence to enforce laws. It would protect individuals’ financial privacy and improve federal agencies’ abilities to prosecute criminal activity rather than sift through millions of low-value reports. This kind of reform is long overdue.” – Norbert Michel, Jennifer Schulp, and Nicholas Anthony of the Cato Institute

    Government surveillance efforts have been largely ineffective, as demonstrated by the dismal success rate of suspicious activity reports (SARs) submitted to the Financial Crimes Enforcement Network (FinCEN). In FY2023, financial institutions submitted 25.4 million SARs and currency transaction reports (CTRs), yet less than 0.3% of these reports resulted in relevant IRS-CI and FBI cases.

    In recent years, FinCEN and the FBI surveilled the financial transactions of individuals and solicited banks for information on purchases related to “Trump,” “MAGA,” firearms, and even religious texts. Meanwhile, the Securities and Exchange Commission (SEC) has quietly been constructing a centralized database, the Consolidated Audit Trail (CAT), designed to track every single stock market transaction and the personal information of millions of Americans without any congressional approval.

    Senator Lee’s bill, the Saving Privacy Act, seeks to curb these abuses and restore Fourth Amendment protections for all Americans.

    Key Provisions of the Saving Privacy Act:

    • Repeals the Bank Secrecy Act’s SAR and CTR reporting requirements while maintaining recordkeeping provisions.
    • Repeals the Corporate Transparency Act.
    • Strengthens Fourth Amendment protections, bolstering warrant requirements in the Right to Financial Privacy Act of 1978.
    • Repeals the SEC’s Consolidated Audit Trail (CAT) database.
    • Requires congressional approval for any new databases that collect personally identifiable information of U.S. citizens.
    • Prohibits the creation of a Central Bank Digital Currency.
    • Requires congressional authorization for financial regulations deemed major rules.
    • Institutes penalties for federal employees who illegally seek constitutionally protected financial information.
    • Establishes a private right of action for Americans and financial institutions harmed by illicit government activity.

    For bill text, click HERE.
    For a two-pager, click HERE.

    MIL OSI USA News –

  • MIL-OSI USA: Fischer Questions Expert Witnesses on Grand Theft Cargo

    US Senate News:

    Source: United States Senator for Nebraska Deb Fischer

    Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Commerce Committee, questioned expert witnesses on the importance of giving the Federal Motor Carrier Safety Administration (FMSCA) authority to enforce penalties against unauthorized brokers engaged in freight fraud.

    During the hearing, Fischer questioned Chief Special Agent of the Burlington Northern and Santa Fe (BNSF) Railway Police Department Will Johnson about collaboration between local authorities and federal agencies on investigations that cross state lines.

    She also asked Principal and CEO of Tanger Logistics and Double Diamond Transport Adam Blanchard and Executive Vice President of Owner-Operator Independent Drivers Association Lewie Pugh what additional tools and authorities could improve the enforcement of cargo freight fraud.

    Click the image above to watch a video of Senator Fischer’s questioning

    Click here to download audio

    Click here to download video

    Senator Fischer questions experts:

    Senator Fischer: Thank you, Mr. Chairman. Thank you, Mr. Pugh and Mr. Blanchard, for referencing my bill. I appreciate you doing that. I appreciate the support for the bill. I think it’s extremely important that we get that to move. It’s the Household Goods Shipping Consumer Protection Act that I’ve introduced with Senator Duckworth, and as you know, it would allow the FMCSA to impose those civil penalties against the unauthorized brokers, and it would require companies in the household goods sector to establish a principal place of business to prohibit fraudulent companies from skirting those existing regulations. I’d like to thank you also for bringing up suggestions on what else we can do to be able to combat this.

    It’s eye opening, the amount of money harm to companies, but also to consumers when we add all this together. So, thank you for that. Chief Johnson, in your testimony, you reference jurisdictional concerns that often arise when investigating cargo theft crimes, and I believe it’s particularly important that local and state law enforcement agencies have the support of the federal government when dealing with crimes that pertain to interstate commerce. In your experience, what is the relationship like between law enforcement and agencies like the FBI and the HSI when investigating cargo theft that crosses state lines?

    Will Johnson: Ma’am, the short answer is they are good relationships. The challenge is not necessarily with the relationships, but the capacity of organizations to be able to balance or juggle the myriad of threats that they’re faced with. Cargo theft, historically, has not risen to the same level of attention as maybe some other competing interests have for these federal entities.

    Also, it’s important to understand how those agencies prioritize the work within their AOR, or area of responsibility, and that’s largely a local decision by local executive leaderships for those agencies involved, absent some sort of national direction coming out of headquarters or the Attorney General’s office. I think for this topic, national direction either authorized by Congress for the task force that we’ve mentioned previously or prosecutorial direction coming out of the Attorney General’s Office directing all of the United States attorneys to prioritize this issue and focus resources on effective prosecutions will aid in the assistance of bringing these cases forward.

    Senator Fischer:     Thank you. You know, Mr. Blanchard, you spoke about your frustration in trying to just bring it to the attention of authorities—federal, state, I assume local as well that you were trying to work with. And when you mentioned some of your suggestions, I know Mr. Pugh wanted to chime in, so I’ll let you chime in now on what needs to be done. And it’s not, I don’t think it’s just throwing more money at being able to have more enforcement out there, necessarily. I think it’s also to be able to put some teeth in what we need to do here and just have more awareness.

    Adam Blanchard: I’d be happy to start, Senator. And again, thank you for your support of our industry and your introduction of the Household Goods Shipping Consumer Protection Act. I think that’s certainly a great first step. As I have come to understand, Senator, is currently, to piggyback off of Chief Johnson, the current threshold that’s established by the United States Sentencing Commission for the DOJ to interdict in cargo theft cases requires the instance to be at least $1.5 million in losses. So, the average loss in a cargo case is around $200,000 today. So therefore, to reach that threshold of $1.5 million is going to require law enforcement agencies to be directed to look into the continual criminal activity of these organizations to meet that threshold—or for Congress to otherwise change that and create a new directive in order for them to start pursuing these through a unified task force, which is something that we have included in the Safeguard Our Supply Chains Act, which has not been filed. But certainly, we would appreciate any member of this committee to review that bill, and the willingness to author that would be fantastic. And that would provide the coordination between agencies and law enforcement.

    And I think really, Senator, this begins with the FMCSA, and to further elaborate on Senator Young’s question earlier, in terms of the FMCSA, we have to start with them. I think to your point, Senator Fischer, throwing money at the problem, I would agree, is not the solution. I think first, we need Congress to direct FMCSA on the things that need to occur and the coordination necessary to address this very issue that we’re dealing with, they need to be able to distinguish between fraudulent businesses and legitimate businesses. DOT needs enhanced cyber capabilities and real time fraud detection tools and greater interagency collaboration with law enforcement to identify these frauds. FMCSA needs to be directed to remove fraudulent companies from the SAFER website. We rely on that heavily in order to vet companies that we work with. FMCSA needs to explicitly authorize to withhold registration from applicants who fail to provide verifications.

    Also Congress, we believe, should conduct rigorous oversight of FMCSA transition to a single USDOT number, which we believe they’re going to do in the future—or considering doing without placing undue burden on legitimate carriers. And DOT should expeditiously implement the 13 recommendations issued by the Government Accountability Office to strengthen FMCSA’s national consumer complaint database.

    And so those are things we believe that Congress could do without the necessity of additional funding in order to provide the coordinated effort necessary for law enforcement. Because we simply don’t have the tools, Senator, to be able to do the reverse IP searches to break through the cyber space in order to find who’s spoofing our emails. I have a very sophisticated IT director, and he’s great, but only law enforcement agencies have that capability.

    Lewie Pugh: I thank you, Senator Fisher, and you and Senator Duckworth on your bill. We very much appreciate that, and glad you’re trying to do something different and to help these things. It will pay dividends if we can get it across the finish line. A couple other things is this whole national consumer complaint database. It seems to be that FMCSA needs to be directed more to do something with that. From our experience and with our members—and we tell members to send these complaints, plus many other complaints that happen to them in trucking—it seems like this is where all complaints go to die at FMCSA. Usually, they hear nothing back. Or if they get anything, it’s just “Hey, thanks for letting us know.”

    Also, we’ve said for a long time, it would probably be helpful to have a different name. Most of our small business people and truckers, they don’t even realize that this is a place for them to go file a complaint because national consumer complaint database, who would think that’s a trucking complaint hotline? So that would be helpful.

    We feel FMCSA probably has enough funds to do some investigating on this. It’s just to reallocate where they’re putting, because they continually say that there’s not a safety effect to this. So that’s why they don’t have to do anything with this. But we know there is because it’s putting people out of business. It’s causing people not to be able to maintain their equipment. So there’s definitely a safety thing here. Plus, you know, who knows what happens to a trucker or something happens at gunpoint or something like that.

    And I would agree with my colleague here, FMCSA is the first line of defense on this—100 percent, they have all this information. They have everybody’s registrations and all that. And finally, I would say FMCSA needs to step back and take a long look of making the barrier of entry into being a motor carrier or a broker much harder, much stricter. We pretty much let people file for insurance, pay for it. We don’t know who these people are, have no idea if they even know what they’re doing—and maybe every 12 to 18 months, we audit them.

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Pamela Bondi Announces 29 Wanted Defendants from Mexico Taken into U.S. Custody

    Source: US State of North Dakota

    Today, the United States secured custody of 29 defendants from Mexico who are facing charges in districts around the country relating to racketeering, drug-trafficking, murder, illegal use of firearms, money laundering, and other crimes. The defendants taken into U.S. custody today include leaders and managers of drug cartels recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación (CJNG), Cártel del Noreste (formerly Los Zetas), La Nueva Familia Michoacana, and Cártel de Golfo (Gulf Cartel).  These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

    “As President Trump has made clear, cartels are terrorist groups, and this Department of Justice is devoted to destroying cartels and transnational gangs,” said Attorney General Pamela Bondi. “We will prosecute these criminals to the fullest extent of the law in honor of the brave law enforcement agents who have dedicated their careers — and in some cases, given their lives — to protect innocent people from the scourge of violent cartels. We will not rest until we secure justice for the American people.”

    “The FBI and our partners will scour the ends of the earth to bring terrorists and cartel members to justice,” said FBI Director Kash Patel. “The era of harming Americans and walking free is over.”

    “Today’s actions are a consequence of a White House that negotiates from a position of strength, and an Attorney General who is willing to lead the Department with courage and ferocity,” said Acting Deputy Attorney General Emil Bove. “By prosecuting these defendants to the maximum extent allowable under the law, we honor the memory of Special Agent Camarena, Deputy Sherrif Byrd, and other victims who are far too numerous, as well as decades of hard work in the trenches by our law enforcement partners.”

    “Today, 29 fugitive cartel members have arrived in the United States from Mexico, including one name that stands above the rest for the men and women of the DEA — Rafael Caro Quintero. Caro Quintero, a cartel kingpin who unleashed violence, destruction, and death across the United States and Mexico, has spent four decades atop DEA’s most wanted fugitives list, and today we can proudly say he has arrived in the United States where justice will be served,” said DEA Acting Administrator Derek S. Maltz. “This moment is extremely personal for the men and women of DEA who believe Caro Quintero is responsible for the brutal torture and murder of DEA Special Agent Enrique “Kiki” Camarena. It is also a victory for the Camarena family. Today sends a message to every cartel leader, every trafficker, every criminal poisoning our communities: You will be held accountable. No matter how long it takes, no matter how far you run, justice will find you.”

    Many of the defendants were subject to longstanding U.S. extradition requests that were not honored during the prior Administration, but that the Mexican government elected to transfer to the current U.S. government in response to the Justice Department’s efforts pursuant to President Trump’s directive in Executive Order 14157, entitled Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists, to pursue total elimination of these Cartels. Federal prosecutors will evaluate whether additional terrorism and violence charges are appropriate based on the policy set forth in Executive Order 14157, and whether capital punishment is available based on Executive Order 14164, entitled Restoring the Death Penalty and Protecting Public Safety, as well as the Attorney General’s Feb. 5 guidance regarding the death penalty.

    • Rafael Caro Quintero, who is alleged to have been among those responsible for the 1985 murder of DEA agent Enrique “Kiki” Camarena and others.
    • Martin Sotelo, who is alleged to have participated in the 2022 murder of Deputy Sheriff Ned Byrd.
    • Antonio Oseguera Cervantes, who allegedly helped lead CJNG and is reportedly the brother of Nemesio Oseguera Cervantes, also known as “El Mencho.”
    • Ramiro Perez Moreno and Lucio Hernandez Lechuga, who are alleged to be high-ranking members of Los Zetas.

    A complete list of defendants, as well as districts where they are charged and will appear in federal court in the coming days:

    Mexico Defendants

      Name

    Arraignment

    Jurisdiction

    		 Statutory Maximum
    1 CANOBBIO-INZUNZA, Jose Angel Northern District Illinois Up to life imprisonment
    2. VALENCIA GONZALEZ, Norberto Northern District of Illinois Up to life imprisonment
    3. MARTIN SOTELO, Alder, also known as “Alder Martin-Sotelo” and “Alder Alfonso Marin”

    Middle District of North Carolina

    North Carolina State Court

    Federal: Maximum 10 years imprisonment

    State: Maximum of life imprisonment or death
    4. CRUZ SANCHEZ, Evaristo Southern District of Texas Up to life imprisonment
    5. GARCIA VILLANO, also known as “La Kena,” “19,” and “Ciclone 19” Southern District of Texas Up to life imprisonment
    6. HERNANDEZ LECHUGA, Lucio Eastern District of Texas Up to life imprisonment
    7. PEREZ MORENO, Ramiro Eastern District of Texas Up to life imprisonment
    8. RODRIGUEZ DIAZ, Miguel Angel, also known as “Metro” Eastern District of Texas Up to life imprisonment
    9. VILLARREAL HERNANDEZ, Jose Rodolfo Northern District of Texas Death or life imprisonment
    10. CARO QUINTERO, Rafael Eastern District of New York Death or life imprisonment
    11. CARRILLO FUENTES, Vicente Eastern District of New York Death or life imprisonment
    12. CABRERA CABRERA, Jose Bibiano District of Arizona Up to life imprisonment
    13. CLARK, Andrew Central District of California Death or life imprisonment
    14. INFANTE, Hector Eduardo Central District of California Up to life imprisonment
    15. LIMON LOPEZ, Jesus Humberto District of Arizona Up to life imprisonment
    16. TAPIA QUINTERO, Jose Guadalupe District of Arizona Up to life imprisonment
    17. TORRES ACOSTA, Inez Enrique Southern District of California Up to life imprisonment
    18. GALAVIZ VEGA, Jesus Western District of Texas Up to life imprisonment
    19. MENDEZ ESTEVANE, Luis Geraldo Western District of Texas Death or life imprisonment
    20. MONSIVAIS TREVINO, Carlos Alberto Western District of Texas Up to life imprisonment
    21. ALGREDO VAZQUEZ, Carlos District of Columbia Up to life imprisonment
    22. LOPEZ IBARRA, Rodolfo District of Columbia Up to life imprisonment
    23. OSEGUERA CERVANTES, Antonio District of Columbia Up to life imprisonment
    24. RANGEL BUENDIA, Alfredo District of Columbia Up to life imprisonment
    25. TREVINO MORALES, Miguel Angel, also known as “Z-40” District of Columbia Up to life imprisonment
    26. TREVINO MORALES, Omar, also known as “Z-42”) District of Columbia Up to life imprisonment
    27. VALENCIA SALAZAR, Erick District of Columbia Up to life imprisonment
    28. MENDEZ VARGAS, Jesus Southern District of New York Up to life imprisonment
    29. PALACIOS GARCIA, Itiel Southern District of New York Up to life imprisonment

    Attorney General Pamela Bondi thanked the law enforcement officers of the Drug Enforcement Administration, FBI, U.S. Marshal’s Service, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, and Hidalgo County Sheriff’s Office for their valuable contributions to these investigations.

    The Attorney General also thanked the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section and its Office of International Affairs, and the U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Southern District of California, the District of Columbia, Middle District of North Carolina, Northern District of Illinois, Eastern District of New York, Southern District of New York, Northern District of Texas, Eastern District of Texas, Southern District of Texas, and Western District of Texas for handling the prosecutions of these cases.

    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: Alabama Man Sentenced to Five Years in Prison for Violating Iran Sanctions

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

    BIRMINGHAM, Ala. – Ray Hunt, also known as Abdolrahman Hantoosh, Rahman Hantoosh, and Rahman Natooshas, 71, of Owens Cross Roads, Alabama, has been sentenced for violating the International Emergency Economic Powers Act.  In July 2024, Hunt pleaded guilty to conspiring to export U.S.-origin goods to the Islamic Republic of Iran in violation of the U.S. trade sanctions.

    According to court documents, in May 2014, Hunt registered Vega Tools, LLC with the Alabama Secretary of State, listing the nature of the business as “the purchase/resale of equipment for the energy sector.” He operated Vega Tools, including purchasing, receiving, and shipping U.S.-origin goods, from locations in Madison County, Alabama. Beginning at least as early as 2015 and continuing to the time of his arrest in November 2022,  Hunt conspired with two Iranian companies located in Tehran, Iran, to illegally export U.S.-manufactured industrial equipment for use in Iran’s oil, gas, and petrochemical industries.

    Hunt engaged in a series of deceptive practices to avoid detection by U.S. authorities, including using third-party transshipment companies in Turkey and the United Arab Emirates (UAE), routing payments through UAE banks, and lying to shipping companies about the value of his exports to prevent the filing of Electronic Export Information to U.S. authorities. Hunt lied to suppliers and shippers by claiming the items he purchased on behalf of the Iranian co-conspirators were destined for end-users in Turkey and UAE, while knowing the exports were ultimately destined for Iran. Hunt lied also to U.S. Customs and Border Protection officers regarding the nature and existence of his business when questioned upon his return from a March 2020 trip to Iran.   

    Sue Bai, head of the Justice Department’s National Security Division, U.S. Attorney Prim F. Escalona for the Northern District of Alabama, Acting Assistant Secretary for Export Enforcement John Sonderman of the Department of Commerce Bureau of Industry and Security, and Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division announced the sentence.

    BIS investigated the case with valuable assistance provided by the FBI.

    Assistant U.S. Attorneys Jonathan Cross and Henry Cornelius for the Northern District of Alabama and Trial Attorneys Emma Ellenrieder and Adam Barry of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Dangerous Firearms and Drugs the Focus of 2 Takedowns in Vallejo

    Source: Office of United States Attorneys

    SACRAMENTO, Calif. — Two Vallejo Public Safety Partnership (PSP) investigations have resulted in arrests and federal charges for eight individuals for various gun and drug offenses. The PSP investigations are a part of a larger collaborative effort to address violent crime in the city of Vallejo. Making this announcement are Acting U.S. Attorney Michele Beckwith, Chief Jason Ta of the Vallejo Police Department, Special Agent in Charge Sid Patel of the FBI Sacramento Field Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jennifer Cicolani.

    “The application process to join the U.S. Department of Justice’s Public Safety Partnership Program is competitive, and the United States Attorney’s Office is proud of the Vallejo Police Department’s selection as a participant,” said Acting U.S. Attorney Michele Beckwith. “This program is focused on maximizing scarce resources to increase Vallejo’s ability to fight violent crime, especially crime related to gang activity involving gun violence and drug trafficking. Our office is honored to partner with Vallejo through this unique initiative to provide focused, data-driven, and evidence-based resources and expertise to promote public safety in this city. The prosecutions announced today show our commitment to that partnership, as we bring federal resources to bear in the fight make Vallejo safer for all its residents.”

    “Every community member deserves to feel safe and secure in their home,” stated Vallejo Police Chief Jason Ta. “We are overcoming our resource limitations through law enforcement and community partnerships. We must work together as a team to make Vallejo safer.”

    “Today’s announcement is yet another example of the FBI’s commitment to collaborative investigations, leveraging the skills and talents of local, state, and federal partners to disrupt violent criminal networks that threaten the success and safety of our communities,” said Special Agent in Charge Sid Patel. “Drug and weapons trafficking conducted by criminal networks exploits and slowly erodes communities unless law enforcement and the public stand together against it. Every family should have the opportunity to live, work, and thrive in a safe, crime-free community and the FBI remains firmly committed to disrupt and dismantle gangs and criminal networks that endanger neighborhoods and threaten the potential of all citizens.”

    “ATF is proud to be a part of a collective effort to prevent and reduce violent crime,” said Special Agent in Charge Jennifer Cicolani, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The city of Vallejo is a safer community today because of programs like the National Public Safety Partnership or PSP. This investigation serves as a great example of the effectiveness of this program. ATF continues to stay focused on the commitment that we made to the communities we serve, and we hope to continue to have more investigations like this one.”

    Super 8

    According to court documents, since July 2024 until the present, the ATF’s Oakland Field Office has been investigating members of a loosely affiliated group that was illegally selling dangerous, high-powered weapons in Vallejo using a Super 8 motel on Solano Avenue as the hub of their criminal activity. On Feb. 20, 2025, ATF arrested four Vallejo residents charged with federal firearms offenses. Zuryess Anthony Roberts, 24, was charged with possession and transfer of a machine gun. Taezon Laurece Sanderson, 23, was charged with being felon in possession of a firearm. Divaya James Talley, 18, was charged with transfer and possession of a machine gun. Anderson Thurston, 66, was charged with being a felon in possession of a firearm.

    Brown Brotherhood (BBH)

    According to court documents, the Brown Brotherhood gang is a subset of the Sureño gang and has been a frequent target of investigations of the Vallejo Police Department and the Solano County Violent Crime Task Force. The primary criminal activities of this gang have included murder, robbery, extortion, drug trafficking, firearms trafficking, burglary, and stolen vehicles. The current investigation began in February 2024 through today’s arrests and takedown. FBI arrested four people today on federal drug trafficking and firearms charges.

    Leo Alonso-Medina, 32, was charged with being a felon in possession of a firearm. Carlos Higuera-Aldana, 23, was charged with possession of a controlled substance with intent to distribute. Jeremiah Salanoa, 22, was charged with being a felon in possession of a firearm. Doroteo Suastegui, 47, was charged with possession of a controlled substance with intent to distribute.

    These cases are the product of investigations by the ATF, the FBI, the Vallejo Police Department, and the Solano County Violent Crime Task Force. Assistant U.S. Attorneys Jason Hitt, R. Alex Cardenas, Nicole Vanek, Douglas Harman, Charles Campbell, and Adrian Kinsella are prosecuting the eight federal cases arising out of this collaborative PSP effort.

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

    MIL Security OSI –

  • MIL-OSI Security: Attorney General Pamela Bondi Announces 29 Wanted Defendants from Mexico Taken into U.S. Custody

    Source: United States Attorneys General

    Today, the United States secured custody of 29 defendants from Mexico who are facing charges in districts around the country relating to racketeering, drug-trafficking, murder, illegal use of firearms, money laundering, and other crimes. The defendants taken into U.S. custody today include leaders and managers of drug cartels recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación (CJNG), Cártel del Noreste (formerly Los Zetas), La Nueva Familia Michoacana, and Cártel de Golfo (Gulf Cartel).  These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

    “As President Trump has made clear, cartels are terrorist groups, and this Department of Justice is devoted to destroying cartels and transnational gangs,” said Attorney General Pamela Bondi. “We will prosecute these criminals to the fullest extent of the law in honor of the brave law enforcement agents who have dedicated their careers — and in some cases, given their lives — to protect innocent people from the scourge of violent cartels. We will not rest until we secure justice for the American people.”

    “The FBI and our partners will scour the ends of the earth to bring terrorists and cartel members to justice,” said FBI Director Kash Patel. “The era of harming Americans and walking free is over.”

    “Today’s actions are a consequence of a White House that negotiates from a position of strength, and an Attorney General who is willing to lead the Department with courage and ferocity,” said Acting Deputy Attorney General Emil Bove. “By prosecuting these defendants to the maximum extent allowable under the law, we honor the memory of Special Agent Camarena, Deputy Sherrif Byrd, and other victims who are far too numerous, as well as decades of hard work in the trenches by our law enforcement partners.”

    “Today, 29 fugitive cartel members have arrived in the United States from Mexico, including one name that stands above the rest for the men and women of the DEA — Rafael Caro Quintero. Caro Quintero, a cartel kingpin who unleashed violence, destruction, and death across the United States and Mexico, has spent four decades atop DEA’s most wanted fugitives list, and today we can proudly say he has arrived in the United States where justice will be served,” said DEA Acting Administrator Derek S. Maltz. “This moment is extremely personal for the men and women of DEA who believe Caro Quintero is responsible for the brutal torture and murder of DEA Special Agent Enrique “Kiki” Camarena. It is also a victory for the Camarena family. Today sends a message to every cartel leader, every trafficker, every criminal poisoning our communities: You will be held accountable. No matter how long it takes, no matter how far you run, justice will find you.”

    Many of the defendants were subject to longstanding U.S. extradition requests that were not honored during the prior Administration, but that the Mexican government elected to transfer to the current U.S. government in response to the Justice Department’s efforts pursuant to President Trump’s directive in Executive Order 14157, entitled Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists, to pursue total elimination of these Cartels. Federal prosecutors will evaluate whether additional terrorism and violence charges are appropriate based on the policy set forth in Executive Order 14157, and whether capital punishment is available based on Executive Order 14164, entitled Restoring the Death Penalty and Protecting Public Safety, as well as the Attorney General’s Feb. 5 guidance regarding the death penalty.

    • Rafael Caro Quintero, who is alleged to have been among those responsible for the 1985 murder of DEA agent Enrique “Kiki” Camarena and others.
    • Martin Sotelo, who is alleged to have participated in the 2022 murder of Deputy Sheriff Ned Byrd.
    • Antonio Oseguera Cervantes, who allegedly helped lead CJNG and is reportedly the brother of Nemesio Oseguera Cervantes, also known as “El Mencho.”
    • Ramiro Perez Moreno and Lucio Hernandez Lechuga, who are alleged to be high-ranking members of Los Zetas.

    A complete list of defendants, as well as districts where they are charged and will appear in federal court in the coming days:

    Mexico Defendants

      Name

    Arraignment

    Jurisdiction

    		 Statutory Maximum
    1 CANOBBIO-INZUNZA, Jose Angel Northern District Illinois Up to life imprisonment
    2. VALENCIA GONZALEZ, Norberto Northern District of Illinois Up to life imprisonment
    3. MARTIN SOTELO, Alder, also known as “Alder Martin-Sotelo” and “Alder Alfonso Marin”

    Middle District of North Carolina

    North Carolina State Court

    Federal: Maximum 10 years imprisonment

    State: Maximum of life imprisonment or death
    4. CRUZ SANCHEZ, Evaristo Southern District of Texas Up to life imprisonment
    5. GARCIA VILLANO, also known as “La Kena,” “19,” and “Ciclone 19” Southern District of Texas Up to life imprisonment
    6. HERNANDEZ LECHUGA, Lucio Eastern District of Texas Up to life imprisonment
    7. PEREZ MORENO, Ramiro Eastern District of Texas Up to life imprisonment
    8. RODRIGUEZ DIAZ, Miguel Angel, also known as “Metro” Eastern District of Texas Up to life imprisonment
    9. VILLARREAL HERNANDEZ, Jose Rodolfo Northern District of Texas Death or life imprisonment
    10. CARO QUINTERO, Rafael Eastern District of New York Death or life imprisonment
    11. CARRILLO FUENTES, Vicente Eastern District of New York Death or life imprisonment
    12. CABRERA CABRERA, Jose Bibiano District of Arizona Up to life imprisonment
    13. CLARK, Andrew Central District of California Death or life imprisonment
    14. INFANTE, Hector Eduardo Central District of California Up to life imprisonment
    15. LIMON LOPEZ, Jesus Humberto District of Arizona Up to life imprisonment
    16. TAPIA QUINTERO, Jose Guadalupe District of Arizona Up to life imprisonment
    17. TORRES ACOSTA, Inez Enrique Southern District of California Up to life imprisonment
    18. GALAVIZ VEGA, Jesus Western District of Texas Up to life imprisonment
    19. MENDEZ ESTEVANE, Luis Geraldo Western District of Texas Death or life imprisonment
    20. MONSIVAIS TREVINO, Carlos Alberto Western District of Texas Up to life imprisonment
    21. ALGREDO VAZQUEZ, Carlos District of Columbia Up to life imprisonment
    22. LOPEZ IBARRA, Rodolfo District of Columbia Up to life imprisonment
    23. OSEGUERA CERVANTES, Antonio District of Columbia Up to life imprisonment
    24. RANGEL BUENDIA, Alfredo District of Columbia Up to life imprisonment
    25. TREVINO MORALES, Miguel Angel, also known as “Z-40” District of Columbia Up to life imprisonment
    26. TREVINO MORALES, Omar, also known as “Z-42”) District of Columbia Up to life imprisonment
    27. VALENCIA SALAZAR, Erick District of Columbia Up to life imprisonment
    28. MENDEZ VARGAS, Jesus Southern District of New York Up to life imprisonment
    29. PALACIOS GARCIA, Itiel Southern District of New York Up to life imprisonment

    Attorney General Pamela Bondi thanked the law enforcement officers of the Drug Enforcement Administration, FBI, U.S. Marshal’s Service, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, and Hidalgo County Sheriff’s Office for their valuable contributions to these investigations.

    The Attorney General also thanked the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section and its Office of International Affairs, and the U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Southern District of California, the District of Columbia, Middle District of North Carolina, Northern District of Illinois, Eastern District of New York, Southern District of New York, Northern District of Texas, Eastern District of Texas, Southern District of Texas, and Western District of Texas for handling the prosecutions of these cases.

    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: Attorney General Pamela Bondi Releases First Phase of Declassified Epstein Files

    Source: US State of Vermont

    Today, Attorney General Pamela Bondi, in conjunction with the Federal Bureau of Investigation (FBI), declassified and publicly released files related to convicted sex offender Jeffrey Epstein and his sexual exploitation of over 250 underage girls at his homes in New York and Florida, among other locations. The first phase of declassified files largely contains documents that have been previously leaked but never released in a formal capacity by the U.S. Government.

    “This Department of Justice is following through on President Trump’s commitment to transparency and lifting the veil on the disgusting actions of Jeffrey Epstein and his co-conspirators,” said Attorney General Pamela Bondi. “The first phase of files released today sheds light on Epstein’s extensive network and begins to provide the public with long overdue accountability.”  

    “The FBI is entering a new era—one that will be defined by integrity, accountability, and the unwavering pursuit of justice,” said FBI Director Kash Patel. “There will be no cover-ups, no missing documents, and no stone left unturned — and anyone from the prior or current Bureau who undermines this will be swiftly pursued. If there are gaps, we will find them. If records have been hidden, we will uncover them. And we will bring everything we find to the DOJ to be fully assessed and transparently disseminated to the American people as it should be. The oath we take is to the Constitution, and under my leadership, that promise will be upheld without compromise.”

    Attorney General Bondi requested the full and complete files related to Jeffrey Epstein. In response, the Department received approximately 200 pages of documents, however, the Attorney General was later informed of thousands of pages of documents related to the investigation and indictment of Epstein that were not previously disclosed. The Attorney General has requested the FBI deliver the remaining documents to the Department by 8:00 AM on February 28 and has tasked FBI Director Kash Patel with investigating why the request for all documents was not followed.

    The Department remains committed to transparency and intends to release the remaining documents upon review and redaction to protect the identities of Epstein’s victims.

    A copy of Attorney General Bondi’s letter can be downloaded here.

    Links to released documents below:

    MIL OSI USA News –

  • MIL-OSI Security: Lyons Resident Charged In Connection With Series of Incidents At Loveland Tesla Dealership

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Lucy Grace Nelson, also known as Justin Thomas Nelson, 42, of Lyons, Colorado, was charged by complaint with one count of malicious destruction of property for a series of incidents at the Tesla dealership in Loveland, Colorado.

    According to the complaint, on January 29, Loveland Police received a call reporting a fire near a Cyber Truck located at the Tesla dealership. Investigators discovered an incendiary device, commonly referred to as a “Molotov cocktail” next to the vehicle. Additionally, on February 2, Loveland Police received a report of graffiti on the Tesla dealership sign where black spray paint was used to write the word “NAZI.” On February 7, police received a call for graffiti and possible arson at Tesla. During that investigation police found multiple broken bottles consistent with incendiary devices. On February 11, a security guard at the dealership came into contact with a person painting graffiti, which used an expletive, on the front windows of the building. On February 24, police confronted Nelson at the dealership. Inside Nelson’s car, police found a container of gasoline plus a box of bottles and wick material which were similar to the items police recovered after the prior incidents.

    The defendant made an initial appearance in front of Magistrate Judge N. Reid Neureiter.

    The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation Denver Field Office, and the Loveland Police Department are handling the investigation.  The Violent Crime and Immigration Enforcement Section of the United States Attorney’s Office is handling the prosecution.

    Case Number: 1:25-mj-00043-NRN

    MIL Security OSI –

  • MIL-OSI Security: Three Louisiana Men Sentenced to Decades in Prison for Armed Robbery of Undercover Federal Agent

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – MICHAEL LOTT (“LOTT”), age 51, DIANTA TROPEZ (“TROPEZ”), age 30, and VERNELL WOODARD (“WOODARD”), age 23, all residents of New Orleans, were sentenced on February 18 and 19, 2025, by United States District Judge Ivan L.R. Lemelle for the armed robbery of an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) special agent that resulted in the agent’s paralysis from the shoulders down, announced Acting U.S. Attorney Michael M. Simpson.

    According to court records, VERNELL WOODARD and three other co-defendants conspired to distribute methamphetamine to an undercover ATF agent and another individual on August 29, 2023 at a Westbank, New Orleans apartment.  The plan came to fruition when the conspirators sold the undercover ATF agent approximately seven grams of pure methamphetamine.

    After this August 29 methamphetamine distribution deal was completed, VERNELL WOODARD arranged for the undercover ATF agent and the other individual to return to the apartment the following day to purchase more drugs. When the undercover ATF agent and the other individual arrived at the apartment complex the next day, WOODARD told them to return to the same apartment.  As they were coming upstairs, MICHAEL LOTT, armed with an AR-15 style weapon,hid in a closet inside the apartment. Once the undercover ATF agent and the other individual were inside the apartment, DIANTA TROPEZ entered, pointed a Glock pistol at the undercover ATF agent and the other individual, and demanded they get down and hand over their possessions.  Simultaneously, MICHAEL LOTT emerged from the closet, pointed the AR-15 style weapon at them, and demanded they turn over their possessions.

    Other agents monitoring the deal, realized something was wrong and responded.  Once LOTT and TROPEZ heard the law enforcement response, they stopped the robbery, and everyone in the apartment tried to flee.  The undercover ATF agent and the other individual went onto the third-floor apartment balcony and began climbing down to escape.  During their climb, the agent fell and sustained severe injuries, resulting in his paralysis.

    As a result of this criminal conduct, MICHAEL LOTT, DIANTA TROPEZ, VERNELL WOODARD, and three others were charged in an eleven-count superseding indictment with various offense related to the drug trafficking and the armed robbery.

    On September 13, 2024, DIANTA TROPEZ pleaded guilty to several crimes including, conspiring to rob a person of money belonging to the United States, armed robbery of a person of money belonging to the United States, brandishing a firearm during and in relation to a crime of violence, assaulting an officer of the United States with a deadly weapon, and being a felon in possession of a firearm.  On October 2, 2024, MICHAEL LOTT pleaded guilty to the same charges as TROPEZ.  On November 22, 2024, VERNELL WOODARD pleaded guilty to the methamphetamine conspiracy and distribution charges, as well as all the charges related to his participation in the armed robbery and to maintaining a drug involved premises.

    During three lengthy sentencing hearings, the Court heard from the injured special agent, as well as members of his family and other special agents who had worked with the injured agent.  Judge Lemelle imposed sentences on all three defendants convicted of participating in the robbery that were well above the recommended guidelines ranges.  Judge Lemelle sentenced LOTT to 300 months of imprisonment.  He also sentenced TROPEZ to 284 months of imprisonment, and WOODARD to 209 months of imprisonment.  Each defendant was also placed on a five-year term of supervised release following release from imprisonment and payment of a mandatory special assessment fee of $100 per count.

    “Following the lengthy sentences imposed on Michael Lott, Dianta Tropez, and Vernell Woodard, our community is a bit safer,” stated Acting U.S. Attorney Simpson.  “We take any violence against law enforcement very seriously.  Although we cannot undo the tragic events in this case ultimately, justice was achieved, not only for the ATF special agent so grievously injured by this crime, but also for, law enforcement professionals and the community at large.  Violent criminals, bent on preying upon our citizens, will be prosecuted to the fullest extent of the law.”

    “The substantial sentencings of Michael Lott, Dianta Tropez, and Vernell Woodard signifies that each defendant will be held accountable for engaging in violent crime in the community,” said ATF New Orleans Special Agent in Charge Joshua Jackson.  “Holding accountable offenders who commit violent crimes against law enforcement, like our Special Agent in this case, and protecting the public are cornerstones of what our agency seeks to accomplish.  No matter how long it takes, we will investigate, arrest, prosecute and ensure accountability for those violent criminals and to remove them from the community as we are working to keep our neighborhoods safe.”

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

    The investigation giving rise to the superseding indictment was conducted primarily by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department and Crimestoppers GNO.  The case is being prosecuted by Assistant United States Attorneys David Haller, Senior Litigation Counsel and PSN Coordinator, and Nolan Paige, Chief of the Narcotics Unit.

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  • MIL-OSI Security: Minneapolis Man Pleads Guilty in $250 Million Feeding Our Future Fraud Scheme

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

    MINNEAPOLIS – A Minneapolis man has pleaded guilty to wire fraud for his role in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, from April 2020 through January 2022, Abdikadir Ainashe Mohamud, a.k.a. “AK,” 33, claimed to be operating a child nutrition site in Willmar, Minnesota, a small town with a total population of approximately 21,000. Mohamud ran his food site, Stigma-Free Willmar, under the sponsorship of Feeding our Future. In October 2020, Mohamud approached the owner of FaaFan restaurant and offered to pay him monthly so that he could claim the small storefront restaurant as a Stigma-Free Willmar food site. By October 20, 2020, less than a month after registering the Stigma-Free Willmar site, Mohamud claimed to be serving meals to 3,000 children per day, seven days a week from FaaFan. Mohamud created a shell company, Tunyar Trading, and claimed it was a meal vendor for the Stigma-Free Willmar food site. Between November 2020 and December 2021, Mohamud and his co-conspirators claimed to have served approximately 1.6 million meals to children through Stigma-Free Willmar.

    To accomplish their scheme, Mohamud and his co-conspirators prepared and submitted fake meal counts, invoices, and attendance rosters. Mohamud ultimately transferred more than $2.5 million from Tunyar Trading to himself and other co-conspirators. He also created another shell company called Five A’s Projects LLC, where he transferred more than $1 million in Federal Child Nutrition Program funds. These proceeds were used to purchase the former location of Kelly’s 19th Hole, a bar and restaurant in Brooklyn Park, Minnesota.

    According to court documents, Mohamud paid more than $225,000 in bribes and kickbacks from Tunyar Trading LLC to Abdikerm Eidleh, a Feeding Our Future employee who served as the site support manager for the Stigma-Free Willmar site, in exchange for sponsoring and facilitating Stigma-Free Willmar’s fraudulent participation in the Federal Child Nutrition Program. In exchange, Feeding Our Future received nearly $500,000 in administrative fees for sponsoring the Stigma-Free Willmar site’s participation in the program.  In December 2021, the defendant paid $5,750 to a GoFundMe account for Feeding Our Future created by Aimee Bock.

    In total, Stigma-Free Willmar received over $5.3 million in payments from Feeding Our Future based on fraudulent claims. As part of his sentence, Mohamud was ordered to forfeit the Kelly’s 19th Hole property, and $378,207.20 in fraudulent funds seized from his Tunyar Trading LLC bank account.

    Mohamud pleaded guilty today in U.S. District Court before Judge Nancy E. Brasel. A sentencing hearing will be scheduled at a later date.

    The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

    Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Matthew S. Ebert, and Daniel W. Bobier are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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  • MIL-OSI Security: Two Southern California Men Arrested on Indictment Alleging Scheme Targeting Elderly Victims and Causing $10 Million in Losses

    Source: Office of United States Attorneys

    LOS ANGELES – Two men living in Southern California were arrested today for allegedly leading a complex money laundering scheme that targeted more than 100 victims, many of whom were targeted because they were elderly, and caused victims more than $10 million in losses.

    Sylas Nyuydzene Verdzekov, 38, of Chino Hills, and Lovert Che, 44, of Lomita, were taken into federal custody today. A third defendant, Mustapha Nkachiwouo Selly Yamie, 29, of Inglewood, is being sought by law enforcement. Each defendant is charged with one count of conspiracy to commit money laundering.

    Verdzekov and Che are expected to be arraigned this afternoon in United States District Court in downtown Los Angeles.

    “As the indictment alleges, these defendants built a sophisticated fraud and money laundering scheme that targeted and preyed on our most vulnerable citizens.  They not only stole the victims’ money, but robbed them of their security and trust,” said Acting United States Attorney Joseph T. McNally. “Let this serve as a clear message: If you defraud members of our community, especially the elderly, we will hold you accountable to the fullest extent of the law.”

    “Financial fraud against our elder population has unfortunately lined the pockets of several transnational criminal organizations,” said HSI Los Angeles Acting Special Agent in Charge John Pasciucco. “HSI and our law enforcement partners remain committed to protecting our most vulnerable and ensuring the public is informed of the red flag indicators of elder fraud.”

    According to the indictment, from at least November 2021 and continuing to the present, Verdzekov, Yamie, and Che, and their co-conspirators, created fake identification documents of fictitious people, including passports and driver’s licenses. Using these fake documents, the defendants and their co-conspirators created at least 36 shell companies in California, which conducted no legitimate business and were created solely to advance their crimes.

    Verdzekov, Yamie, and Che, and their co-conspirators, opened at least 145 bank accounts and at least 32 private mailboxes across Southern California using the fake identities and sham businesses.

    In one scheme specifically targeting elderly victims using phone calls and email pop-ups, the defendants and their co-conspirators posed as law enforcement personnel or employees with well-known companies attempting to help the victims maintain the security of their accounts. They then allegedly fabricated claims of victim bank accounts or payment accounts being compromised and needing to be resolved quickly.

    The defendants and their co-conspirators convinced the victims of their purported authority through pictures of fake badges and fake job titles, then requested the victims’ personally identifiable information (PII) and bank account information. Victims were told they needed to move money from their corrupted accounts quickly to ensure they kept all their money, and to move it into accounts that Verdzekov, Yamie, and Che, and their co-conspirators, fraudulently opened and controlled. Victims typically moved money via electronic bank transfers, money orders, cashier’s checks, or personal checks into these fraudulent bank accounts or mailboxes. 

    The defendants and their co-conspirators then deposited the ill-gotten gains into the bank accounts they controlled with the intent of disguising the ownership and control of the funds. Verdzekov, Yamie, Che, and their co-conspirators then withdrew large cash amounts to use the stolen funds on personal expenses, including rental payments.

    In a similar scam, the defendants and their co-conspirators allegedly posed as a real estate owner selling property. Using fake identification and credentials, the defendants deceived victims into believing that they were entering into a legitimate sale of the property and tricked the victims into wiring money or mailing a check to an account or mailbox the defendants and their co-conspirators controlled.

    In total, Verdzekov, Yamie, and Che, and their co-conspirators, laundered at least $10 million in funds taken from at least 100 victims. 

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

    If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison.

    Homeland Security Investigations’ Document Benefit Fraud Task Force, the FBI’s Honolulu Field Office, the U.S. Department of State’s Diplomatic Security Service (DSS), and the United States Postal Inspection Service are investigating this matter.  The investigation remains ongoing.

    If you think you have been a victim of a scam, immediately contact your bank or financial institution to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity and contact local law enforcement. Additionally, file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov. The Internet Crime Complaint Center is run by the FBI and serves as the country’s hub for reporting cybercrime. 

    Assistant United States Attorneys Sarah S. Lee and Gregg E. Marmaro of the Major Frauds Section are prosecuting this case.

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  • MIL-OSI Security: Attorney General Pamela Bondi Releases First Phase of Declassified Epstein Files

    Source: United States Attorneys General 1

    Today, Attorney General Pamela Bondi, in conjunction with the Federal Bureau of Investigation (FBI), declassified and publicly released files related to convicted sex offender Jeffrey Epstein and his sexual exploitation of over 250 underage girls at his homes in New York and Florida, among other locations. The first phase of declassified files largely contains documents that have been previously leaked but never released in a formal capacity by the U.S. Government.

    “This Department of Justice is following through on President Trump’s commitment to transparency and lifting the veil on the disgusting actions of Jeffrey Epstein and his co-conspirators,” said Attorney General Pamela Bondi. “The first phase of files released today sheds light on Epstein’s extensive network and begins to provide the public with long overdue accountability.”  

    “The FBI is entering a new era—one that will be defined by integrity, accountability, and the unwavering pursuit of justice,” said FBI Director Kash Patel. “There will be no cover-ups, no missing documents, and no stone left unturned — and anyone from the prior or current Bureau who undermines this will be swiftly pursued. If there are gaps, we will find them. If records have been hidden, we will uncover them. And we will bring everything we find to the DOJ to be fully assessed and transparently disseminated to the American people as it should be. The oath we take is to the Constitution, and under my leadership, that promise will be upheld without compromise.”

    Attorney General Bondi requested the full and complete files related to Jeffrey Epstein. In response, the Department received approximately 200 pages of documents, however, the Attorney General was later informed of thousands of pages of documents related to the investigation and indictment of Epstein that were not previously disclosed. The Attorney General has requested the FBI deliver the remaining documents to the Department by 8:00 AM on February 28 and has tasked FBI Director Kash Patel with investigating why the request for all documents was not followed.

    The Department remains committed to transparency and intends to release the remaining documents upon review and redaction to protect the identities of Epstein’s victims.

    A copy of Attorney General Bondi’s letter can be downloaded here.

    Links to released documents below:

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  • MIL-OSI Security: Pineville Man Sentenced to More than 27 Years in Prison for His Role in the Sexual Exploitation of Children and Production of Child Pornography

    Source: Office of United States Attorneys

    ALEXANDRIA, La. – Acting United States Attorney Alexander C. Van Hook announced that Daniel Perryman Collins, 34, of Pineville, Louisiana, has been sentenced by United States District Judge Dee D. Drell to 325 months in prison, followed by 5 years of supervised release, on child pornography charges.  

    This case is the result of an investigation into individuals using the dark web to communicate with others regarding exploiting children on the internet and causing them to produce child pornography. From January to November 2023, Collins and his co-defendant, Michael Bo Peacock, both together and individually, for their sexual gratification, caused minor children to produce child pornographic and sexually explicit images and videos of themselves by the use of threats and blackmail. Collins conducted all of this illegal activity in Pineville, Louisiana, while Peacock was located in the Dallas, Texas area. 

    According to information introduced in court, Collins and Peacock both participated in meeting children and coercing/blackmailing the children to engage in sexually explicit conduct and to produce videos of that conduct. Peacock would often contact a minor victim online and through various social media platforms, including SnapChat, and he and Collins would convince the minor victim to engage in sexually explicit activity and provide a video of that conduct. Collins and Peacock would then blackmail and threaten the victims to provide additional sexually explicit material. As part of the conspiracy, Collins utilized advanced security measures so that those images and materials could not be traced back to himself or Peacock. 

    Collins and Peacock gave each other access to all of the child pornography they had caused minor victims to produce by obtaining an account with an overseas cloud-based file hosting service, so they could post and share the child pornography images and videos that they had produced or obtained. Both defendants had an encryption key to use to access the material they had posted to the site. Through their investigation, agents with the Federal Bureau of Investigation (“FBI”) Child Exploitation Operational Unit determined that Collins and Peacock exploited over 100 child victims and caused them to create child pornography. These images and videos were posted to their shared file hosting account.

    On November 16, 2023, a search warrant was executed at Collins’ residence in Pineville. During the search, law enforcement agents obtained access to the cloud-based file hosting account of Collins and Peacock and were able to download all of the child pornography images and videos which they had created and posted to the account. 

    Collins pleaded guilty to one count of conspiracy to produce child pornography and one count of enticing a minor to engage in criminal sexual activity on November 21, 2024. Peacock pleaded guilty to the same charges on December 23, 2024, and will be sentenced at a later date. 

    “The sexual exploitation of minor children and the activities that these men participated in is horrendous and sickening,” said Acting United States Attorney Alexander C. Van Hook. “These types of cases are becoming more prevalent in the United States and internationally and can happen in your own neighborhood. We encourage parents to be vigilant in keeping an eye out for any suspicious activity that your children could potentially be exposed to. We will continue to work to uncover this type of illegal activity and protect our minor children from offenders like this.”

    “Through relentless investigations and cutting-edge technology, the FBI works every day to uncover hidden networks, identify victims and bring perpetrators to justice,” said FBI Criminal Investigative Division Assistant Director Chad Yarbrough. “Today’s sentencing sends the message that the FBI is committed to protecting vulnerable lives and ensuring no predator can thrive at the expense of our children.”

    The case was investigated by the FBI’s Headquarter-based Child Exploitation Operation Unit, with assistance from the FBI’s New Orleans and Dallas Field Offices, and prosecuted by Assistant United States Attorney Danny Siefker.

    To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as “child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. 

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  • MIL-OSI Security: Kentucky Man Pleads Guilty to Role in Scheme to Defraud Boone County Schools Out of $3.4 Million

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Jesse Marks, 65, of Rush, Kentucky, pleaded guilty today to conspiracy to commit mail fraud. Marks admitted to conspiring with Michael David Barker to overbill the Boone County Schools system while Barker was its maintenance director.

    According to court documents and statements made in court, Marks was the sole owner and operator of Rush Enterprises when Barker contacted him in November 2019 about Rush Enterprises selling custodial and janitorial supplies to Boone County Schools. Marks agreed and began supplying Boone County Schools with supplies including hand soap, trash can liners, facemasks, face shields, and hand sanitizer.

    Marks admitted that he and Barker entered into the overbilling scheme in November 2019. Barker submitted invoices to Boone County Schools on behalf of Rush Enterprises that significantly inflated the number of products that it was delivering. Boone County Schools relied on the fraudulent invoices and mailed checks to Rush Enterprises using the United States Postal Service.

    As part of the agreement with Barker, Marks deposited the checks from Boone County Schools into the business bank account for Rush Enterprises, wrote himself checks on that account that he cashed at various banks, and personally delivered some of that cash to Barker in manila envelopes. Marks admitted that he and Barker initially agreed to evenly split the proceeds of the overbilling scheme after deducting the cost of the products actually delivered to Boone County Schools. Marks further admitted that their agreement changed in October 2020, when Barker began receiving 55 percent of the fraudulent profits.

    Marks estimated that approximately 80 percent of the total payments received by Rush enterprises from Boone County Schools, or $3,448,571.85 out of $4,310,714.82, was for products never delivered.

    Marks is scheduled to be sentenced on June 16, 2025, and faces a maximum penalty of 20 years in prison, up to three years of supervised release, and a $250,000 fine. Marks also owes restitution in an amount to be determined by the Court.

    A federal grand jury returned an 18-count indictment on December 11, 2024, charging Barker, 47, of Foster, with mail fraud, conspiracy to commit mail fraud, theft concerning programs receiving federal funds, and money laundering. Barker’s trial is scheduled for April 15, 2025. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the U.S. Department of Education, Office of Inspector General, the Internal Revenue Service-Criminal Investigations (IRS-CI), the West Virginia State Police, and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU), and the assistance provided by the West Virginia Department of Education.

    United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Gabriel Price is prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:25-cr-6.

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  • MIL-OSI Security: California Man Indicted for Production of Child Sexual Abuse Material and Coercion and Enticement of a Minor

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

    Tampa, Florida – Acting United States Attorney Sara C. Sweeney announces the  unsealing of an indictment charging Rigoberto Rios Gallardo (31, Los Angeles, California) with three counts of production of child sexual abuse material and one count of coercion and enticement of a minor to engage in sexual activity. If convicted on all counts, Rios Gallardo faces a maximum penalty of life in federal prison. 

    According to the indictment, on three dates in August and September 2024, Rios Gallardo used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction. Between August and December 2024, Rios Gallardo knowingly persuaded, induced, enticed and coerced a minor to engage in sexual activity.

    An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

    This case was investigated by the FBI and the North Port Police Department. It will be prosecuted by Assistant United States Attorney Courtney Derry.

    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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.justice.gov/psc.

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  • MIL-OSI Security: Sanford Man Sentenced to 20 Years in Prison for Enticement of a Minor

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

    Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Matthew Reed Dione (37, Sanford) to 20 years in federal prison for enticement of a minor to engage in sexual activity. Dione will also forfeit two hard drives and a cellphone, which were used to commit the offense. Dione entered a guilty plea on July 2, 2024.

    According to court documents, Dione met a child victim on a teen dating website when Dione was 32 years old. He engaged in inappropriate chats with the child victim prior to picking up the victim from the victim’s home late at night and taking the victim to his home. At his home, Dione sexually abused the child and recorded the activity. 

    In January 2023, the FBI executed a search warrant at Dione’s home and seized multiple electronic devices. During a forensic extraction of the seized devices, the FBI located numerous videos and images of child sexual abuse. In many of those videos and images, the minors had Dione’s name written on their bodies. The FBI was able to identify three additional child victims from the child sexual abuse material found on Dione’s devices. The evidence on the devices showed that Dione had been targeting teenage girls for more than a decade.

    This case was investigated by the Federal Bureau of Investigations. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.

    This is another case 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.justice.gov/psc. 

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