NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: CEO of Health Care Software Company Convicted of $1 Billion Fraud Conspiracy

    Source: US FBI

    MIAMI – A federal jury convicted the CEO of Power Mobility Doctor Rx, LLC (DMERx) for his role in operating a platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.

    According to court documents and evidence presented at trial, Gary Cox, 79, of Maricopa County, Arizona, and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries who provided their personally identifiable information and agreed to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Cox and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for these items. As part of the scheme, Cox connected pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders transmitted using the DMERx platform. Cox and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid kickbacks and bribes for the orders.

    The fraudulent doctors’ orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when in fact purported telemedicine companies paid doctors to sign the orders without regard to medical necessity, based only on a brief telephone call with the beneficiary or no interaction with the beneficiary at all. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these claims. According to evidence presented at trial, Cox and his co-conspirators concealed the scheme through sham contracts and by eliminating from doctors’ orders what one co-conspirator described as “dangerous words” that might cause Medicare to audit the scheme’s DME suppliers.

    “Medicare fraud undermines the integrity of our nation’s most critical healthcare programs, which are relied upon by millions of patients, doctors and honest healthcare professionals.” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Fraud of this kind wastes taxpayer dollars and increases the cost of healthcare for all Americans. Together with our law enforcement partners, we will relentlessly pursue those who steal from taxpayers and exploit our healthcare system for their own personal gain”

    “The defendant orchestrated a scheme to defraud government health care benefit programs on a massive scale, creating fraudulent doctors’ orders used to bill insurers over $1 billion,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “Americans are all too familiar with junk mail and spam calls that target seniors to steal their personal information and promote waste, fraud, and abuse in our economy. The Criminal Division will continue to aggressively prosecute health care fraud schemes to hold criminals accountable, protect the vulnerable, and recover financial losses.”

    “Fraud schemes perpetrated against veterans are abhorrent and will be thoroughly investigated,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, will continue to combat these schemes to ensure the integrity of VA’s healthcare programs for veterans and their families.”   

    “The defendant deliberately exploited the federal health care system by prioritizing personal enrichment over the medical needs of vulnerable patients,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “By fraudulently billing the government for medically unnecessary durable medical equipment, the defendant not only violated the law but also assaulted the public’s trust placed in health care providers. There is zero tolerance for those who abuse federal health care programs, and HHS-OIG remains steadfast in its commitment to ensure that individuals who engage in such egregious fraud are held fully accountable.”

    “Medicare fraud and other health care related frauds are, unfortunately, nothing new,” said Assistant Special Agent in Charge Mark McCormick of the FBI Miami Field Office. “As such, the FBI and our partners devote considerable resources to investigate, arrest, and prosecute those committing this fraud. The victims are U.S. taxpayers – you and me.  Our message to those who commit health care fraud and steal from U.S. taxpayers is clear: you will be caught, and you will face justice.”

    Cox was convicted of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and make false statements in connection with health care matters. Cox faces a maximum penalty of 20 years in prison for the conspiracy to commit health care fraud and wire fraud conviction, 10 years for each health care fraud conviction, five years for the conspiracy to pay and receive health care kickbacks conviction, and five years for the conspiracy to defraud the United States and make false statements in connection with health care matters conviction. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HHS-OIG, FBI, VA-OIG, and DCIS investigated the case.

    Trial Attorneys Darren C. Halverson and Jennifer E. Burns of the Criminal Division’s Fraud Section are prosecuting the case. Fraud Section Trial Attorneys Andrea Savdie and Shane Butland assisted in the prosecution. Trial Attorney Evan N. Schlom with the Fraud Section’s Special Matters Unit provided valuable assistance.

    The charges contained in an information are merely accusations. All defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20271.

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  • MIL-OSI Security: FBI Cleveland Focuses on Missing Northern Ohio Children During Outreach Event

    Source: US FBI

    Members of the community are invited to learn about child safety

    FBI Cleveland, together with the Cuyahoga County Sheriff’s Office, the Cleveland Division of Police, Bellefaire JCB, and the Canopy Child Advocacy Center, will staff a community table to spread awareness of missing children in our area and share child safety information with the community.

    Who: FBI Cleveland, Law Enforcement and Community Partners

    What: National Missing Children’s Day

    When: Wednesday, June 18, 2025

    Where: Westown Square (10820 Lorain Avenue)

    Time: 11:00 a.m. to 2:00 pm.

    While National Missing Children’s Day was May 25, the FBI wants to help the public understand that every day, children either go missing or remain missing, and someone either knows something about a disappearance or knows of someone who has information to bring that child home. It is important to know that the FBI will look at all tips and leads, and people who submit information can do so anonymously.

    “When the FBI receives a call that a child has gone missing, we know the clock is ticking. Our mission is to identify, locate, and recover the child victim,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “That is why our business and law enforcement partnerships are a vital component to the work we do and, our partnership with the community is crucial for helping us locate missing children.”

    During the event, the FBI and its partners will provide important safety information for parents, guardians, and caregivers to keep children safe and share posters of many of the still-missing children from across Northern Ohio. Many don’t realize that a child can be “missing” when the child has run away, is lost, or otherwise abducted—not only by a stranger but also by a family member, for example, a non-custodial parent or, in some cases, a family member who poses an extreme risk to the child, such as a registered sex offender.

    How the FBI is involved

    The FBI was given jurisdiction under the “Lindbergh Law” in 1932 to immediately investigate any reported mysterious disappearance or kidnapping involving a child of “tender age”—usually 12 or younger. However, the FBI goes one step further:

    • When any child is missing under the age of 18, the FBI can become involved as an assisting agency to the local police department.
    • There does not have to be a ransom demand.
    • The child does NOT have to cross the state lines or be missing for 24 hours.

    Research indicates the quicker the reporting of the mysterious disappearance or abduction, the more likely the successful outcome in returning the child unharmed.

    To report a missing child

    • National Center for Missing and Exploited Children: 1-800-THE-LOST (1-800-843-5678)
    • FBI: 1-800-CALL-FBI (1-800-225-5324)

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  • MIL-OSI Security: Ecuadorian National Sentenced for Illegally Entering the U.S. After a Prior Removal

    Source: US FBI

    PORTLAND, Maine: An Ecuadorian national was sentenced today in U.S. District Court in Portland for illegally entering the U.S. after a prior removal.

    U.S. District Judge John A. Woodcock, Jr., sentenced William Ariel Tamay Guaman, 23, to time served (approximately seven months in prison). Tamay Guaman pleaded guilty on April 3, 2025.

    According to court records, on February 4, 2025, agents from U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and the FBI conducted surveillance at a South Portland residence. After observing Tamay Guaman get into a van, agents followed him and conducted a traffic stop. An ERO agent familiar with Tamay Guaman approached the driver and asked for their name. Tamay Guaman provided a false name and was directed to step out of the vehicle. After briefly fleeing on foot and resisting arrest, Tamay Guaman was taken into custody. He had previously been removed from the U.S. in September 2023.

    ICE-ERO investigated the case with assistance from the FBI.

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

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  • MIL-OSI Security: Crow Agency woman pleads guilty to false statements

    Source: Office of United States Attorneys

    BILLINGS – A Crow Agency woman accused of making false statements to federal law enforcement admitted to charges today, U.S. Attorney Kurt Alme said.

    The defendant, Micah Taryn Faith LaForge, 24, pleaded guilty to false statement. LaForge faces 5 years of imprisonment, a $250,000 fine, and 3 years of supervised release.

    U.S. District Judge Susan P. Watters presided and will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not yet been set.  LaForge was released pending further proceedings.

    The government alleged in court documents that on January 18, 2023, a gunshot victim arrived at the emergency room at the IHS Crow/Northern Cheyenne Hospital in Crow Agency. He was pronounced dead upon arrival. He was transported to IHS in a vehicle driven by LaForge.

    LaForge lied to medical personnel and a BIA Special Agent at the hospital and then later that same day to an FBI Special Agent and a different BIA Special agent. She told all of these individuals she was driving between Crow Agency and Dunmore when she saw the gunshot victim lying in the road. LaForge claimed she stopped and loaded him into the passenger side of her vehicle and drove directly to IHS. LaForge continued with the lie by traveling to the purported location where she claimed that she saw the gunshot victim lying in the road with a BIA Special Agent. The agent noted there was no evidence, i.e., blood, shell casings, sign of a struggle that would support LaForge’s claim that this was the location where she encountered the gunshot victim.

    The gunshot victim was actually shot at a house on Crow River Road. The day after the initial statement, LaForge contacted law enforcement and admitted she had lied the day before. Her lie about finding the gunshot victim in the middle of the road stymied the investigation for over 15 hours as the investigators had only the false information she provided about the location, which kept the investigators from going to the residence where the victim was shot and collecting evidence. The firearm was never recovered.

    Assistant U.S. Attorney Zeno Baucus prosecuted the case. The FBI and BIA conducted the investigation.

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  • MIL-OSI Security: Jury Finds District Man Guilty of Conspiracy to Distribute PCP

    Source: US FBI

                WASHINGTON – Norman Morris, 44, of the District of Columbia, was found guilty by a federal jury on Tuesday, June 3, 2025, of one count of conspiracy to distribute and possess with intent to distribute phencyclidine (PCP).

                The verdict was announced by U.S. Attorney Jeanine Ferris Pirro, DEA Special Agent in Charge Ibrar A. Mian of the Drug Enforcement Administration Washington Division, FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office, and Chief Pamela Smith of the Metropolitan Police Department.

                Sentencing for Morris, aka “Fibble,” is pending and will be set at a later date.

                According to court documents and testimony at trial before Judge Dabney L. Friedrich, the DEA and the FBI began conducting a criminal investigation in September 2023 of local PCP and fentanyl distributors, a group that included Morris and co-defendants Lamont M. Langston, Kelvin Sanker, and Jamar Bennett.

                Morris conducted apparent drug transactions outside of his residence on the 200 block of 58th Street NE. The transactions were monitored by law enforcement from November 2023 to March 2024. During this same period, Bennett and Langston were observed meeting at Morris’s residence to exchange suspected narcotics and cash.

                During the investigation, Bennett sold more than two kilograms of PCP to undercover officers over the course of nine transactions. The PCP was supplied by Langston and was stored and prepared by Sanker at Sanker’s home. Morris also retrieved 32 ounces of PCP from Sanker at the request of Langston after Langston was arrested with PCP and two firearms. Sixteen ounces of the PCP retrieved by Morris was sold to an undercover officer by Bennett.

                Bennett, 45, of the District, pleaded guilty Apr. 11, 2024, to conspiracy to distribute one kilogram or more of PCP and unlawful possession of a firearm by a convicted felon and was sentenced to 121 months in prison.

                Sanker, 43, of the District, pleaded guilty Oct. 22, 2024, to conspiracy to distribute and possess with intent to distribute PCP and was sentencing to 65 months in prison.

                Langston, 44, of the District, pleaded guilty Dec. 19, 2024, to conspiracy to distribute one kilogram or more of PCP.  Langston’s sentencing is scheduled for June 30, 2025.

               This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.

               This case was investigated by the the FBI’s Washington Field Office, DEA’s Washington Division, and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Peter Roman of the Violent Crime and Narcotics Trafficking Division, and Special Assistant U.S. Attorney Adam Stempel, with valuable assistance from Paralegal Michael Asmutis.

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  • MIL-OSI Security: FBI Dallas and the North Texas Internet Crimes Against Children Task Force Announce the Results of Operation Soteria Shield

    Source: US FBI

    The North Texas Internet Crimes Against Children Task Force and FBI Dallas’s North Texas Child Exploitation Task Force announce the conclusion of Operation Soteria Shield, a month-long collaborative enforcement effort conducted in April 2025 aimed at rescuing children from online sexual exploitation and bringing perpetrators to justice. This operation was run in conjunction with the National Internet Crimes Against Children Task Force and was jointly managed by the FBI Dallas Division, Dallas Police Department, Plano Police Department, Wylie Police Department, and Garland Police Department.

    More than 70 Texas law enforcement agencies joined forces throughout the month of April to combat the exploitation of children in the digital space. These agencies leveraged the expertise of highly skilled computer crimes investigators that worked around the clock to identify victims and apprehend offenders engaged in the production, distribution, and possession of child sexual abuse material.

    Operation Soteria Shield resulted in the rescue of 109 children and the arrest of 244 offenders. In addition to these enforcement actions, investigators seized extensive volumes of digital evidence, including terabytes of illicit data stored on electronic devices that were used in the commission of these crimes. These devices are undergoing forensic analysis and may lead to further arrests and the identification of additional victims.

    “Operation Soteria Shield brought together over 70 agencies from across the state of Texas, including police departments, federal agencies, state and federal prosecutors, children’s advocacy centers, and the National Center for Missing & Exploited Children. We had a common goal, which was to rescue children from abuse and exploitation,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “This was not an easy operation, but a necessary one. The FBI and our law enforcement partners will continue to protect the children in our communities, and we will hold child predators accountable for their crimes.”

    “Operation Soteria Shield was a massive team effort and a powerful reminder of what we can accomplish when we unite around one clear mission: protecting our kids and holding offenders accountable. I am proud that the Dallas Police Department is the lead agency for the North Texas Internet Crimes Against Children Task Force, and am grateful for the many, many agencies who contributed to this successful operation,” said Dallas Police Chief Daniel C. Comeaux.

    “Online exploitation of children is one of the most insidious crimes we face as a society. It reaches into every community, crosses every boundary, and leaves lasting harm on its youngest victims. Operation Soteria Shield brought together an unprecedented level of collaboration and resolve to confront this crisis head-on. Through this operation, we not only rescued children from unimaginable abuse, but we also sent a clear message: those who seek to harm our children online will be found and brought to justice. Our work is far from over, but this effort has made our communities safer and brought hope to those who need it most.” Said Plano Police Chief Ed Drain.

    “The coordinated efforts of all agencies involved in Operation Soteria Shield serve as a powerful demonstration of unwavering dedication in the battle against online child exploitation. By exposing the darkest corners of the Internet, this operation has targeted predators who seek to harm vulnerable children,” said Wylie Police Chief Anthony Henderson. “The trauma inflicted by these crimes runs deep, affecting not only the victims, but also their families and entire communities. With every arrest made and every child protected, the operation moves us closer to a safer community. Every step forward in this operation reflects a shared commitment to protecting the most vulnerable and ensuring those who seek to exploit children are brought to justice.”

    “The Garland Police Department is proud to stand alongside our local, state, and federal partners in the fight against those who exploit our most vulnerable, our children. Operation Soteria Shield was more than an enforcement effort; it was a mission to rescue, protect, and restore hope,” said Garland Police Chief Jeff Bryan. “The scale of this operation sends a strong message: predators will be pursued, and survivors will never stand alone. We are grateful to the FBI, the National Center for Missing & Exploited Children (NCMEC), and all the agencies involved for their tireless work. This operation demonstrates our shared commitment to the safety of every child in every community.”

    Operation Soteria Shield stands as a powerful example of what can be accomplished with coordinated, interagency cooperation. It reflects the shared commitment of law enforcement professionals across Texas to relentlessly pursue those who prey on children and to ensure that survivors are no longer silenced or hiding in the shadows.

    The participating agencies also extend their gratitude to the National Center for Missing & Exploited Children (NCMEC) for their unwavering support. NCMEC analysts provided vital intelligence and case coordination that proved instrumental to the success of this operation.

    List of Participating Agencies:

    Abilene Police Department, Allen Police Department, Alvarado Police Department, Amarillo Police Department, Arlington Police Department, Army Criminal Investigative Division, Aubrey Police Department, Azle Police Department, Bartonville Police Department, Breckenridge Police Department, Cedar Hill Police Department, Children’s Advocacy Center of Collin County, Cleburne Police Department, Colleyville Police Department, Collin County District Attorney’s Office, Collin County Sheriff’s Office, Cooke County Sheriff’s Office, Crowley Police Department, Dalhart Police Department, Dallas Children’s Advocacy Center, Dallas Police Department, Dawson County Sheriff’s Office, Denton County Sheriff’s Office, DeSoto Police Department, U.S. Attorney’s Office for the Eastern District of Texas, U.S. Attorney’s Office for the Northern District of Texas, Ellis County Sheriff’s Office, Elm Ridge Police Department, Ennis Police Department, Euless Police Department, Fannin County Sheriff’s Office, Fate Police Department, FBI Dallas Field Office, FBI El Paso Field Office, FBI San Antonio Field Office, Fort Worth Police Department, Frisco Police Department, Garland Police Department, Grand Prairie Police Department, Grand Saline Police Department, Grayson County Sheriff’s Office, Gregg County Sheriff’s Office, Haltom City Police Department, Harrison County Sheriff’s Office, Homeland Security Investigations, Honey Grove Police Department, Hopkins County Sheriff’s Department, Hurst Police Department, Irving Police Department, Johnson County Sheriff’s Office, Joshua Police Department, Kaufman County Sheriff’s Office, Kaufman Police Department, Lamesa Police Department, Lone Star Police Department, Lubbock Police Department, McKinney Police Department, Midlothian Police Department, National Center for Missing & Exploited Children, Naval Criminal Investigative Service, North Richland Hills Police Department, Office of Inspector General, Plano Police Department, Prosper Police Department, Richardson Police Department, Richardson Police Department SWAT, Rockwall County District Attorney’s Office, Rockwall County Sheriff’s Office, Rockwall Police Department, Rowlett Police Department, Royse City Police Department, Sachse Police Department, San Antonio Police Department, Snyder Police Department, Tarrant County Human Trafficking Task Force, Tarrant County Sheriff’s Office, Terrell Police Department, Texas Department of Public Safety, University of Texas System Police, White Settlement Police Department, Wilmer Police Department, and Wylie Police Department

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  • MIL-OSI USA: In Senate Floor Speech, Durbin Denounces Political Violence, Criticizes Trump’s Decision To Deploy National Guard Troops To California Without Consent Of California State Officials

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    June 10, 2025
    In his speech, Durbin also pointed out the hypocrisy of Trump Administration officials, who supported pardons for January 6 rioters, as they call for the arrest of any protestor that commits violent acts against law enforcement
    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, delivered a speech on the Senate floor in response to President Trump’s abuse of power in deploying National Guard troops to California without the request or consent of California state leaders.  Durbin began by condemning political violence of all kinds while reiterating that Americans have a right to peacefully protest. 
    “I condemn violence, vandalism, including violence against law enforcement.  There is no place in legitimate protests for that to occur,” Durbin began.  “What is happening in Los Angeles, as brought to my attention over the weekend, is something we need to address.  However, addressing it effectively means not grandstanding, but giving law enforcement the resources they need to control the situation.  Neither the Governor of California nor the Mayor of Los Angeles asked for the National Guard troops that President Trump is sending.”
    “Governor Newsom said the decision to deploy the National Guard, without appropriate training or orders, risked seriously escalating the situation,” Durbin continued.  “What is clear is that President Trump manipulated these protests as an excuse to politicize the military and divert resources from pressing national security and disaster relief responsibilities.”
    Durbin explained that it’s been 60 years since a president has sent in the National Guard for a domestic operation without a request from the governor.  Durbin then noted that while President Trump has made strong statements about his Administration’s intolerance of violence toward law enforcement during these protests, he provided clemency to more than 1,500 individuals who participated in the violent insurrection at the U.S. Capitol on January 6, 2021.  The violence at the Capitol that day led to the death of five police officers and the injuries of more than 140 others.
    “This weekend, the President wrote on social media that Los Angeles was ‘invaded and occupied’ by ‘violent, insurrectionist mobs,’ and directed three of his top cabinet officials to take any actions necessary to ‘liberate Los Angeles from the Migrant Invasion,’” Durbin said.  “His FBI Director, Kash Patel, also wrote on X, ‘Hit a cop, you’re going to jail… doesn’t matter where you came from, how you got here, or what movement speaks to you.’”
    “It seems President Trump and Mr. Patel forgot what happened on January 6th at the U.S. Capitol when a violent mob—summoned by a bitter, defeated former President—ransacked the Capitol Complex… The insurrectionist mob, the rioters who came into the Capitol on January 6th looked through my desk.  You can see it on CSPAN,” Durbin said.  “On his first day back in office in his second term, what did President Trump do to these cop haters?  He issued a blanket pardon to [nearly] 1,500 of them despite their conviction… for that riot that took place in this building, including those who violently assaulted law enforcement officers.”
    “It appears FBI Director Patel’s comment [that] if you, ‘hit a cop, you’re going to jail,’ only applies to people who President Trump doesn’t agree with,” Durbin concluded.
    Video of Durbin’s remarks on the Senate floor is available here.
    Audio of Durbin’s remarks on the Senate floor is available here.
    Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
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  • MIL-OSI Security: Weston Man Pleads Guilty to Insider Trading Offense

    Source: US FBI

    David X. Sullivan, United States Attorney for the District of Connecticut, and P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that RYAN SQUILLANTE, 40, of Weston, waived his right to be indicted and pleaded guilty before U.S. District Judge Vernon D. Oliver in Hartford to an insider trading offense.

    According to court documents and statements made in court, working from his home, Squillante was employed as the Head of Equity Trading at Irving Investors, an investment company headquartered in Denver, Colorado.  As a result of his position at Irving Investors, Squillante received material non-public information (“MNPI”) about various publicly traded companies.  On 15 different occasions between August 2022 and May 2023, Squillante used MNPI for his own benefit by executing transactions in securities of these companies, making a total profit of $220,912.

    As an example, in February 2023, Squillante received MNPI about Praxis Precision Medicines, Inc. (“Praxis”), a clinical-stage biopharmaceutical company whose common stock traded on the NASDAQ.  Between February 27 and March 2, 2023, Squillante “sold short” 38,086 shares of Praxis at an average price per share of approximately $3.04.  On March 3, 2023, before the market opened, Praxis announced poor results from its drug trial, stating that the drug’s effects did not achieve its primary endpoint with statistical significance.  Following the announcement, Squillante “covered” his short sale by purchasing 38,086 Praxis shares at an average price per share of approximately $1.82, making a profit of approximately $46,421.

    Squillante pleaded guilty to securities fraud, an offense that carries a maximum term of imprisonment of 20 years.  Judge Oliver scheduled sentencing for August 29.

    This matter is being investigated by the Federal Bureau of Investigation with the assistance of the Securities and Exchange Commission.  The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.

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  • MIL-OSI Security: Waterbury Man Sentenced to Prison for Role in Drug Trafficking Ring

    Source: US FBI

    David X. Sullivan, United States Attorney for the District of Connecticut, announced that JOSE DELROSARIO-CANELA, also known as “Domi,” 39, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 32 months of imprisonment, followed by three years of supervised release, for his participation in a Waterbury drug trafficking ring.

    According to court documents and statements made in court, the FBI’s Waterbury Safe Streets Gang Task Force and other law enforcement agencies investigated two drug trafficking organizations based in the city of Waterbury.  One organization operated in the area of William Street and the other operated in the area of Maple Avenue.  The investigation, which included court-authorized wiretaps on multiple phones, video surveillance, GPS tracking of vehicles, and numerous controlled purchases of narcotics, revealed that the two organizations distributed cocaine, crack, and fentanyl through a network of sellers.  The organizations shared sources of supply and worked together to further their operations.

    During the investigation, law enforcement made two controlled purchases of crack cocaine from Delrosario-Canela, one of the main street-level distributors for the Maple Avenue organization.

    Seventeen individuals were charged with federal offenses as a result of the investigation.  Delrosario-Canela and several codefendants were arrested on November 29, 2023.  In association with the arrests, investigators executed multiple search warrants and seized approximately 700 grams of crack cocaine, more than 900 vials (“caps”) of crack, approximately 200 grams of loose fentanyl, more than 1,600 dose bags of fentanyl/heroin, two stolen firearms, numerous rounds of ammunition, and more than $39,000 in cash.

    Delrosario-Canela has been detained since his arrest.  On February 11, 2025, he pleaded guilty to conspiracy to distribute and to possess with intent to distribute controlled substances.

    The FBI’s Waterbury Safe Streets Gang Task includes members from the FBI, the Waterbury Police Department, the Naugatuck Police Department, and the Connecticut Department of Correction.  The DEA, U.S. Marshals Service, Homeland Security Investigations (HSI), Connecticut State Police, Wolcott Police Department, and Meriden Police Department have assisted the investigation.

    This case is being prosecuted by Assistant U.S. Attorneys Natasha Freismuth and Shan Patel through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    U.S. Attorney Sullivan thanked the Waterbury State Attorney’s Office for its cooperation in the investigation and prosecution of this case.

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  • MIL-OSI USA: Governor Kehoe Signs SB 81 into Law

    Source: US State of Missouri

    JUNE 10, 2025

    Jefferson City — Today, Governor Mike Kehoe signed Senate Bill (SB) 81 into law in a significant move to strengthen public safety across Missouri.

    “Public safety remains one of our top priorities, and with this bill, we are reinforcing that with real action,” said Governor Mike Kehoe. “From improving oversight and licensing to supporting law enforcement and victims of childhood abuse, this legislation gives the state the tools it needs to strengthen public safety measures.”

    SB 81 is a comprehensive public safety package that includes a variety of provisions aimed at reinforcing criminal background checks, modernizing fireworks regulations, supporting families of law enforcement officers, continuing funding for emergency response preparedness, and strengthening protections for victims of childhood sexual abuse. SB 81, sponsored by Senator Kurtis Gregory and Representative Tim Taylor, includes the following provisions:

    • License Reciprocity for Law Enforcement Spouses: Adds spouses of law enforcement officers to the list of individuals who receive expedited reciprocity for their occupational licenses.
    • Line of Duty Compensation Sunset Extension: Extends the sunset of the Line of Duty Compensation Act to December 31, 2031. The Line of Duty Compensation Act is for public safety officers who have tragically died in the line of duty. This extension continues to award the family of the fallen safety officer with $25,000, which could be used for any number of financial needs.
    • Expanding Criminal Background Checks: In response to a 2021 FBI policy change, SB 81 gives statutory authority to numerous state board and agencies to allow fingerprint-based criminal background checks. This permits Missouri to continue processing background checks as usual, ensuring that individuals are properly vetted to serve the public.
    • Missouri Emergency Response Commission (MERC) Fee Extension: Reauthorizes vital fee collections to ensure Missouri remains prepared for hazardous material-related emergencies.
    • Modernizing Fireworks Regulations: Updates Missouri’s fireworks laws to match current national safety standards and gives the State Fire Marshal oversight to inspect facilities, enforce compliance, and ensure safe public displays.
    • Trey’s Law: Authorizes that NDAs signed after August 28, 2025, shall no longer be enforceable for childhood sexual abuse actions brought and broadens the list of criminal acts that qualify as “childhood sexual abuse” under civil law.

    For more information on SB 81, click here. To view photos from the bill signing, click this link.

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    MIL OSI USA News –

  • MIL-OSI Security: Melbourne Man Sentenced to Five Years for Investment Fraud Scheme

    Source: US FBI

    Orlando, FL – U.S. District Judge John C. Antoon II has sentenced Thomas Gaffney (59, Melbourne) to five years in federal prison for conspiracy to commit wire fraud. The court also entered an order of forfeiture in the amount of $487,750, which represents the amount of proceeds the defendant obtained from the wire fraud conspiracy. Gaffney pled guilty on January 23, 2025.

    According to court documents, between 2018 and 2021, Gaffney and others co-operated VerdeGroup as an investment fraud scheme. In furtherance of this scheme, Gaffney solicited investors primarily though advertisements for VerdeGroup in various local and national newspapers across the country. 

    The advertisements solicited would-be investors to provide funds for private loans to fund businesses engaging in legal marijuana cultivation, technologies, and pharmaceuticals in states where doing so was legal under state law. In exchange, investors were promised a 12% annual return on their investment.

    The statements in these advertisements were false and fraudulent. In reliance on the information in the advertisements, investors called the listed number and spoke, most often, with co-conspirator-1. In concert with and at the direction of Gaffney, co-conspirator-1 would repeat and add to the false and fraudulent information about VerdeGroup and the state of its business to entice victims to invest with VerdeGroup. Once a victim expressed an interest in investing, co-conspirator-1 or Gaffney would send promotional materials to the victim about VerdeGroup, including brochures and a term sheet with instructions for how to invest with VerdeGroup. Co-conspirator-2 received the investments from the victims and then remitted the funds to the defendant and other co-conspirators. 

    After victims invested with VerdeGroup, Gaffney and co-conspirator-1 continued to make false and fraudulent statements to investors about how their money was being used and the state of VerdeGroup. Instead of using the money to fund private business loans as promised, VerdeGroup never provided any loans to any businesses or individuals. Rather, the conspirators used a small portion of the money to make the “Ponzi” type payments to investors. The rest of the funds were used for the personal benefit of Gaffney and his co-conspirators. Specifically, Gaffney received $487,750 as proceeds of the scheme. He used this money to pay for personal expenses, including cruises and expensive jewelry. He also used a significant portion of the funds to cover costs at a pizza restaurant that he helped operate.

    This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Amanda S. Daniels.

    MIL Security OSI –

  • MIL-OSI Security: Two Dallas Men Charged with Assaulting a Federal Agent with a Deadly Weapon and Methamphetamine Trafficking

    Source: Office of United States Attorneys

    Andres Saucedo, Jr., of Dallas, was charged and arrested on June 4, 2025, for shooting at an undercover FBI Task Force Officer who was surveilling Saucedo to interrupt and stop a robbery of methamphetamine from another individual in the Dallas, Texas area, announced Acting United States Attorney for the Northern District of Texas Nancy E. Larson.  

    According to a criminal complaint filed June 3, 2025, Saucedo and another individual, Angel Flores, were involved in importing and trafficking large quantities of methamphetamine and heroin obtained from a Mexico-based drug trafficking organization.  Court documents reveal that Flores sold undercover agents a kilogram of heroin for $7,200 in the Dallas area late last year.  Flores, Saucedo, and others working with them continued selling kilogram quantities of methamphetamine to numerous other individuals from that time until Flores was arrested on May 21, 2025.  The two even orchestrated the sale of two kilograms of methamphetamine on May 20, 2025, the day before Flores was apprehended by FBI SWAT.  

    During the investigation, according to court documents, agents discovered that Flores, Saucedo, and others plotted to rob another drug trafficker of thirty to forty kilograms of methamphetamine on May 19, 2025.  While surveilling Flores and Saucedo to prevent this robbery, Flores and Saucedo realized they were being followed and attempted to lure two federal agents to a place where other coconspirators in their group would ambush and shoot them.  Before reaching the planned ambush location, Saucedo fired a gun at an undercover FBI Task Force Officer in one of the vehicles.  The undercover officer was an FBI Task Force Officer with the Dallas Police Department who was working with the OCDETF North Texas Strike Force.  The Task Force Officer was not struck by the gun fire but had to abandon surveillance at that time for safety.  

    The complaint charges Saucedo with his role in conspiring to distribute methamphetamine, as well as assaulting, resisting, or impeding a federal agent by using a dangerous and deadly weapon.  Flores was also charged by complaint with similar crimes in May 2025.

    Saucedo was previously convicted in Federal District Court for the Northern District of Texas, Fort Worth Division in December 2011, for conspiracy to possess with the intent to distribute cocaine.  He was sentenced to serve 144 months in federal prison by United States District Judge Terry Means in 2012.  Court documents reflect that in that case, Saucedo also conspired with a group of individuals who not only distributed cocaine, but also robbed other drug traffickers as well.

    At his initial appearance on Friday, June 6, 2025, in front of U.S. Magistrate Judge Brian McKay, Saucedo was detained in federal custody.  Flores previously appeared before U.S. Magistrate Judge Rebecca Rutherford on Friday, May 23, 2025, and was also detained in federal custody.  If convicted, Saucedo and Flores face a maximum penalty of life imprisonment.

    “We are fighting drug trafficking on multiple dangerous fronts, as demonstrated by this case,” said Acting U.S. Attorney Nancy E. Larson. “Beyond the tragic effects of the illegal drugs that cross our country’s border and flood our communities, drug traffickers unleash significant violence on each other, in our neighborhoods, and against the brave law enforcement officers attempting to stop them.  The full prosecution of those in the drug trade and the violence they bring is a top priority for the safety of our law enforcement partners and our citizens.”

    “This incident serves as a stark reminder of the danger agents and task force officers face every day,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “The FBI stands by our colleagues as they carry out their duties to keep our communities safe and pledge to investigate those who use violence against law enforcement.”

    “Assaulting a Federal Agent can never be tolerated and undermines the very fabric of our ability to conduct drug investigations safely and effectively,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “We do our jobs to make our community safer, and we will use every tool available to investigate and prosecute those who feel violent acts against our agents are held accountable.”

    “The Dallas Police Department could not be more proud of the work that was done by the women and men of not only our department, but our Federal partners as well,” said Chief of Police Daniel Comeaux of the Dallas Police Department.  “These joint task force and collaborations are essential in keeping our community and its members safe.”

    A criminal complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty in a court of law.  

    This operation was conducted by the OCDETF North Texas Strike force with Special Agents and Task Force Officers from DEA, FBI, HSI, the Dallas Police Department, Grand Prairie Police Department and Coppell Police Department all participating.
    Assistant U.S. Attorney Courtney Coker is prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Second Arrest Made Following Montgomery Dry Cleaner Business Robbery

    Source: Office of United States Attorneys

                Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the arrest of a second man in connection with the March 10, 2025, robbery of a Montgomery, Alabama dry-cleaning business. On May 22, 2025, a criminal complaint was filed in the United States District Court in Montgomery charging 57-year-old Spencer Thomas, a resident of Prattville, Alabama, with armed robbery and carjacking. Law enforcement arrested Thomas on May 27, 2025, after locating him in Las Vegas, Nevada. Thomas’s charging documents were unsealed late last week.

                Thomas is the second individual charged in the case. Previously, 58-year-old Zedekiah Sykes was also indicted on charges of armed robbery and carjacking.

                The arrests follow a joint investigation by the Federal Bureau of Investigation (FBI), Montgomery Police Department, Alabama Law Enforcement Agency (ALEA), and the Metro Area Crime Suppression (MACS) Unit, with assistance from the Montgomery County District Attorney’s Office. Thomas is scheduled to be arraigned in Montgomery on June 17, 2025. Zedekiah Sykes’ trial is currently set for August 11, 2025.

                A criminal complaint and indictment are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

                If convicted on all charges, Thomas and Sykes each face up to 25 years in federal prison. There is no parole in the federal system. The cases are being prosecuted by Assistant United States Attorneys T. Paul Markovits and Brandon W. Bates.

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

    MIL Security OSI –

  • MIL-OSI: Agilitas Energy Commissions Energy Storage System in Houston

    Source: GlobeNewswire (MIL-OSI)

    WAKEFIELD, Mass., June 10, 2025 (GLOBE NEWSWIRE) — Agilitas Energy, a leading developer and operator of renewable energy and energy storage systems, today announced the commissioning of a 9.96 megawatt (MW) / 22.4 megawatt-hour (MWh) battery energy storage system (BESS) in Houston, Texas. This project marks the first distributed generation BESS interconnected to CenterPoint Energy’s distribution system and participating in Electric Reliability Council of Texas (ERCOT)’s wholesale delivery market.

    A leading independent power producer (IPP), Agilitas Energy, will leverage its expertise in energy storage to operate the BESS to provide essential services to ERCOT. The newly operational BESS will strengthen grid resiliency during peak events and will lower electric system costs by participating in the ERCOT energy and ancillary services markets.

    By providing diverse and reliable energy reserves, the BESS supports ERCOT’s efforts to maintain a stable and resilient power grid and provide options to the peaker and fossil-fuel-based plants that grid operators traditionally call upon during peak demand periods.

    “This project underscores our confidence that ERCOT—long recognized as one of the premier energy markets in the U.S.—will increasingly value the unique benefits that only energy storage can provide,” said Barrett Bilotta, President, CEO and Co-founder of Agilitas Energy. “This project not only underscores our commitment to improving grid reliability with cost-effective energy but is also a significant step in our continued national expansion.”

    ​“CenterPoint Energy is happy to serve Agilitas Energy as a customer, helping to support a diverse and reliable portfolio of generation available to our customers,” said Tony Gardner, SVP and Chief Customer Officer at CenterPoint Energy.

    Looking ahead, Agilitas Energy is on track to commission a similar project, scheduled for commercial operation later this year. This project will add another 9.96 MW and 22.4 MWh of energy storage capacity to the grid, further expanding the Agilitas Energy footprint in Texas and fulfilling its commitment to delivering distributed energy solutions to the region.

    For more information about Agilitas Energy and its projects, please visit https://agilitasenergy.com/.

    About Agilitas Energy

    Agilitas Energy is a leading independent power producer (IPP) in renewables and energy storage with a mission to propagate clean energy on a national scale. As the largest integrated developer, builder, owner and operator of energy storage and solar PV systems in the northeastern U.S., Agilitas Energy specializes in distributed energy solutions, and manages the entire end-to-end lifecycle of the projects that deliver predictable, cost-efficient, clean energy for off-takers, utilities and municipalities. The company has more than one gigawatt (GW) of renewable energy and energy storage projects in its pipeline across the U.S. To learn more, please visit: https://agilitasenergy.com/.

    About CenterPoint Energy, Inc.
    CenterPoint Energy, Inc. (NYSE: CNP) is a multi-state electric and natural gas delivery company serving approximately 7 million metered customers across Indiana, Minnesota, Ohio, and Texas. The company is headquartered in Houston and is the only Texas-domiciled investor-owned utility. As of March 31, 2025, the company had approximately $44 billion in assets. With approximately 8,300 employees, CenterPoint Energy and its predecessor companies have been serving customers for more than 150 years. For more information, visit CenterPointEnergy.com.

    Contact

    Alex Banat
    agilitas@v2comms.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/18db521a-55fe-4779-bd22-06338f2c03e3

    The MIL Network –

  • MIL-OSI Security: Portland Man Faces Federal Charges for Distributing Fentanyl and Possessing a Firearm Following Fatal Overdose Investigation

    Source: Office of United States Attorneys

    PORTLAND, Ore.—A Portland man has been charged with distributing fentanyl and possessing a firearm following a fatal overdose investigation by the Multnomah County Sheriff’s Office.

    Daryl Antonio Edward Turner, 43, has been charged by criminal complaint with distribution of fentanyl, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.

    According to court documents, on June 2, 2025, Multnomah County Sheriff’s Office deputies responded to a suspected fatal overdose near Wood Village, Oregon. Deputies seized a substance suspected to be fentanyl from the scene and quickly developed leads of the alleged fentanyl supply source, later identified as Turner.  

    On June 5, 2025, investigators contacted Turner in Portland and seized a firearm, counterfeit pills suspected to contain fentanyl, and $922 in cash. When questioned by investigators, Turner admitted that he possessed fentanyl for further distribution, acknowledged the dangers of fentanyl, and was aware the substance could kill people.

    Turner made his first appearance in federal court today before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.

    This case was investigated by the FBI and the Multnomah County Dangerous Drug Team (DDT). It is being prosecuted by AUSA Scott Kerin, Assistant U.S. Attorney for the District of Oregon.

    The Multnomah County DDT is supported by the Oregon-Idaho High Intensity Drug Trafficking Area Program (HIDTA) and is composed of members from the Multnomah County Sheriff’s Office, Multnomah County Parole and Probation, Gresham Police Department, the FBI, and U.S. Marshal’s Service (USMS).

    The Oregon-Idaho HIDTA program is an Office of National Drug Control Policy (ONDCP) sponsored counterdrug grant program that coordinates with and provides funding resources to multi-agency drug enforcement initiatives.

    A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

    Fentanyl is a synthetic opioid 80 to 100 times more powerful than morphine and 30 to 50 times more powerful than heroin. A 2-milligram dose of fentanyl—a few grains of the substance—is enough to kill an average adult male. The wide availability of illicit fentanyl in Oregon has caused a dramatic increase in overdose deaths throughout the state.

    If you are in immediate danger, please call 911.

    If you or someone you know suffers from addiction, please call the Lines for Life substance abuse helpline at 1-800-923-4357 or visit www.linesforlife.org. Phone support is available 24 hours a day, seven days a week. You can also text “RecoveryNow” to 839863 between 2pm and 6pm Pacific Time daily.

    MIL Security OSI –

  • MIL-OSI Security: Onondaga County Man Pleads Guilty to Possession of Child Pornography and Supervised Release Violations

    Source: Office of United States Attorneys

    SYRACUSE, NEW YORK – Edward McKeraghan, 59, of Syracuse, New York pled guilty last week in United States District Court to possession of child pornography, and also admitted violating conditions of his federal supervised release.  United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement. 

    McKeraghan, a federally convicted sex offender on supervised release for a prior child pornography offense, admitted that he possessed child sexual abuse material on an unreported and unmonitored internet-capable phone that he obtained in violation of his conditions of federal supervision.  The phone was discovered by the United States Probation Office during a routine home visit.

    Sentencing is scheduled for October 15, 2025.  For the child pornography offense, McKeraghan faces a mandatory minimum sentence of 10 years in prison, with a maximum sentence of 20 years, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life.  He also faces up to an additional 2 years for violating the terms of his supervised release.  A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is convicted of violating, the U.S. Sentencing Guidelines and other factors.

    U.S. Attorney John A. Sarcone III said, “Repeat sex offenders pose a grave threat to society, particularly to our children.  My office will continue to vigorously prosecute all child exploitation offenses in the Northern District of New York.”

    FBI Special Agent in Charge Craig L. Tremaroli stated, “Mr. McKeraghan’s actions are especially disturbing, given he is a convicted predator on supervised release. Our children are among the most vulnerable members of our community, and the FBI’s Child Exploitation and Human Trafficking Task Force is committed to working together to protect them any way we can.

    The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force is investigating the case with assistance from the United States Probation Office.  Assistant United States Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York is prosecuting the case.

    Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: San Diego Man Sentenced for Sending Hate-Filled Email with Death Threat

    Source: Office of United States Attorneys

    SAN DIEGO – George Joseph Wellinger II was sentenced in federal court today to six months in custody and four months of home confinement for intentionally threatening a member of the LGBTQ community with violence via email.

    Wellinger admitted in his plea agreement that he intentionally selected this victim based on the victim’s actual or perceived sexual orientation, and because of the defendant’s animus toward members of the LGBTQ community.

    According to court documents, the victim was targeted after being interviewed for a KTLA news report about a hate-inspired murder in Lake Arrowhead in August 2023.

    According to the plea agreement, the threatening email called the victim “another alphabet clown that wants to take a dirt nap, too,” and included a link to the KTLA news report which featured the victim and others discussing the murder of a Lake Arrowhead business owner who had been gunned down for hanging a Pride flag in her business.

    The email continued: “We know what you look like and know where are you are….only a matter of time….Love it….get ur ghey on sister….scissor it up….we coming for ur rainbow azz. Click Click!!!”

    “This was a particularly cruel act. No one should have to live in fear,” said U.S. Attorney Adam Gordon. “The U. S. Attorney’s Office is committed to protecting the civil rights of everyone in our community.”

    “Today’s sentence serves as a stark reminder there is no place for hate crimes in San Diego or anywhere,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “The FBI’s commitment to investigate hate crimes underscores the seriousness of these offenses. It is not just about enforcing the law but protecting our community and ensuring the rights of individuals to live free of fear.”

    If you or anyone you know believes you have been the victim of a hate crime, please contact the FBI at www.tips.fbi.gov. Assistant U.S. Attorneys Jacqueline M. Jimenez and Alicia Williams are prosecuting this case.

    DEFENDANT                                               Case Number: 24-CR-1591                                      

    George Joseph Wellinger II                            Age: 49                                   San Diego, CA

    CHARGE

    Transmitting a Threatening Communication – Title 18 U.S.C., § 875(c)

    Maximum penalty: Five years in prison

    INVESTIGATING AGENCY

    Federal Bureau of Investigation

    For more information and resources about the department’s work to combat hate crimes, visit https://www.justice.gov/hatecrimes.

    MIL Security OSI –

  • MIL-OSI China: Washington, D.C. in preparation for military parade

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

    The capital city of the United States is gearing up for Saturday’s military parade to honor the 250th birthday of the Army and the 79th birthday of President Donald Trump.

    “We’re preparing for an enormous turnout,” Matt McCool of the Secret Service’s Washington Field office, was quoted on Monday by The Associated Press as saying. More than 18 miles of “anti-scale fencing” would be erected and “multiple drones” would be in the air, according to the officer. The entire District of Columbia is normally a no-fly zone for drones.

    Army officials have estimated around 200,000 attendees for the evening military parade, and McCool said he was prepared for “hundreds of thousands” of people.

    A total of 175 magnetometers would be used at security checkpoints controlling access to the daytime birthday festival and the nighttime parade. Metropolitan Police Department chief Pamela Smith predicted major impacts to traffic and advised attendees to arrive early and consider forgoing cars for the Metro.

    The military parade has been designated a National Special Security Event, similar to a presidential inauguration or state funeral. That status is reserved for events that draw large crowds and potential mass protests. It calls for an enhanced degree of high-level coordination among D.C. officials, the Federal Bureau of Investigation, Capitol Police and Washington’s National Guard contingent, with the Secret Service taking the lead.

    The Army birthday celebration had already been planned for months. But earlier this spring, Trump announced his intention to transform the event, which coincides with his 79th birthday, into a massive military parade complete with 60-ton M1 Abrams battle tanks and Paladin self-propelled howitzers rolling through the city streets. 

    MIL OSI China News –

  • MIL-OSI Security: Huntington Man Sentenced for Child Pornography Crime

    Source: Office of United States Attorneys

    HUNTINGTON, W.Va. – Mark Radford, 33, of Huntington, was sentenced today to time served and 15 years of supervised release for possession of child pornography. Radford must also register as a sex offender.

    According to court documents and statements made in court, on or about November 3, 2020, law enforcement officers seized Radford’s cell phone. A forensic examination of the cell phone revealed approximately 22 images depicting minors engaged in sexually explicit conduct. Radford admitted to downloading the images from the internet. Radford further admitted that some of the images depicted prepubescent children engaged in sexual conduct.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).

    United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Lesley C. Shamblin and Julie M. White prosecuted the case.

    This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-61.

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: Memphis Man Sentenced to Seventeen Years for Trafficking 17-Year-Old Female to Perform Commercial Sex Acts

    Source: Office of United States Attorneys

    NEW ORLEANS, LA – Acting U.S. Attorney Michael M. Simpson announced that DOMINIQUE PEEPLES (“PEEPLES”), age 28, from Memphis, Tennessee, was sentenced on May 28, 2025, after previously pleading guilty to Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.

    According to court documents, PEEPLES brought a seventeen-year-old female (“Minor Victim”) from Memphis, Tennessee to New Orleans, Louisiana; Jackson, Mississippi; and Houston, Texas, and required her to engage in commercial sex acts.  During this time, PEEPLES was aware of Minor Victim’s age.  PEEPLES advertised Minor Victim on websites commonly used to advertise sexual services in exchange for money and kept all or most of the proceeds from her work.   PEEPLES waited in a vehicle and watched Minor Victim while she solicited commercial sex “dates.”  Minor Victim worked under PEEPLES’ supervision between August of 2020 and her escape in mid-January 2021.  After Minor Victim ran away, PEEPLES posted a video on social media in which he boasted about exploiting Minor Victim and pointed firearms at the screen.

    U.S. District Court Judge Sarah S. Vance sentenced PEEPLES to seventeen (17) years in prison.  PEEPLES was also sentenced to ten (10) years of supervised release after release from prison. Judge Vance further ordered PEEPLES to pay $120,000 in restitution to Minor Victim, and a $100 mandatory special assessment fee.  PEEPLES will also have to register as a sex offender.

    This case was part of a broader investigation involving defendants JEREMY TALBERT and MACEO ROBERTS, both of whom have pleaded guilty for related sex trafficking crimes.  In February 2025, U.S. District Court Judge Susie Morgan sentenced ROBERTS to 22.5 years of imprisonment for conspiring to traffic three minors and two adults.  In March 2025, U.S. District Court Judge Lance Africk sentenced TALBERT to 18 years for trafficking a fourteen-year-old minor to New Orleans.

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

    Acting U.S. Attorney Simpson praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter.  Assistant United States Attorneys Maria M. Carboni of the Financial Crimes Unit and Jordan Ginsberg, Supervisor of the Public Corruption Unit, are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Founder of Sexual Wellness Company “OneTaste” and Former Head of Sales Convicted of Forced Labor Conspiracy

    Source: Office of United States Attorneys

    Defendants Nicole Daedone and Rachel Cherwitz Used Deception and Abuse to Obtain Their Victims’ Labor and Services

    Earlier today, in federal court in Brooklyn, a federal jury convicted Nicole Daedone, the founder and former Chief Executive Officer of OneTaste, Inc. (OneTaste), a sexual wellness education company, and Rachel Cherwitz, the company’s former head of sales, of forced labor conspiracy in connection with their coercive scheme to obtain the labor and services of certain OneTaste employees.  To achieve their goal, the defendants and their co-conspirators subjected the victims to economic, sexual, emotional, financial, and psychological abuse, as well as surveillance, indoctrination, and intimidation.  The verdict was returned after a five-week trial before United States District Judge Diane Gujarati.  When sentenced, Daedone and Cherwitz each face up to 20 years in prison.

    Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.

    “The jury’s verdict has unmasked Daedone and Cherwitz for who they truly are: grifters who preyed on vulnerable victims by making empty promises of sexual empowerment and wellness only to manipulate them into performing labor and services for the defendants’ benefit,” stated United States Attorney Nocella.  “I commend the witnesses who testified at trial notwithstanding the trauma that they experienced at the defendants’ direction.  It is my hope that the just conclusion of this process will bring them closure, and that future charlatans think twice about exploiting human beings in this manner.”

    “Today’s verdict sends a clear message— controlling your labor force by relying on lies, manipulation, and abuse is a crime. The victims in this case were offered sexual empowerment and wellness as a pathway to healing past trauma, but instead received various forms of abuse and manipulation on behalf of Daedone and Cherwitz for the financial benefit of OneTaste. The FBI will continue to ensure those responsible for forced labor schemes are made to answer for their crimes,” stated FBI Assistant Director in Charge Raia.

    OneTaste was a privately held company founded by Daedone in 2004.  Its principal place of business was San Francisco, California, and it operated at various locations within New York, Los Angeles, Denver, Austin, and London.  OneTaste promoted itself as a sexually focused wellness education company that offered hands-on classes on “orgasmic mediation” (OM), which involved stroking a woman’s genitals for 15 minutes.  OneTaste generated revenue by providing courses, coaching, OM events, and less-publicized courses in other sexual practices in exchange for a fee.  

    As proven at trial, between 2006 and May 2018, Daedone and Cherwitz obtained the labor and services of multiple young women who had turned to OneTaste for healing and spirituality by coercing them to perform labor, including sexual labor, for the defendants’ benefit.  OneTaste advertised that its courses and teachings could heal past sexual trauma and dysfunction.  Daedone and Cherwitz used abusive and manipulative tactics designed to control OneTaste members by making them emotionally and psychologically dependent on OneTaste, including encouraging them to incur debt by opening lines of credit to finance the expensive courses, subjecting them to constant surveillance in communal homes, collecting sensitive information about their prior trauma and sexual histories, depriving them of sleep, and subjecting them to sexual abuse.

    Once they had secured the loyalty and indebtedness of certain OneTaste members, Daedone and Cherwitz engaged in abusive employment practices.  They directed OneTaste members to work long hours seven days per week with little or no compensation; that work included manual labor and the provision of sexual services.  For example, Daedone and Cherwitz coerced their victims to sexually service OneTaste’s current and prospective investors, clients and employees for the financial benefit of the company.  Three witnesses testified about how they were coerced into becoming a “handler” for OneTaste’s initial investor, who was also Daedone’s boyfriend, which required them to live with him, perform demeaning sex acts at his direction, and cook for him.  Multiple other witnesses testified that they were coerced under threat of termination, demotion, ostracism, and financial and spiritual ruin by Daedone and Cherwitz into performing various sex acts with OneTaste’s potential clients and investors. In 2017, Ms. Daedone sold OneTaste—a company built on the backs of coerced and unpaid or substantially underpaid labor—for $12 million.

    The government’s case is being handled by the Office’s Human Trafficking and Civil Rights Section.  Assistant United States Attorneys Kayla C. Bensing, Kaitlin T. Farrell, Nina C. Gupta, and Sean Michael Fern are in charge of the prosecution with assistance from Paralegal Specialists Liam McNett and Marlane Bosler.

    The Defendants:

    NICOLE DAEDONE
    Age:  57
    New York, New York

    RACHEL CHERWITZ
    Age:  44
    Philo, California

    MIL Security OSI –

  • MIL-OSI Security: Nigerian citizen sentenced in million-dollar stolen mail credit card fraud scheme

    Source: Office of United States Attorneys

    HOUSTON – A 64-year-old man who illegally resided in Houston has been sentenced for his role in a large-scale mail theft and credit card fraud scheme, announced U.S. Attorney Nicholas J. Ganjei.

    Omokehinde Muyiwa Oyegoke-Tewogbade pleaded guilty Feb. 19.

    U.S. District Judge Andrew S. Hanen has now ordered him to serve 24 months in federal prison and to pay restitution in the amount of $839,555.75. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment as Oyegoke-Tewogbade had overstayed his visa and was unlawfully present in the United States.

    Over a six-month period between November 2022 and May 2023, Oyegoke-Tewogbade and co-conspirators schemed to steal U.S. mail containing new credit cards and bank statements intended for account holders. They contacted financial institutions to activate the stolen cards, increased credit limits and altered account information. They then used the cards to purchase goods, services, gift cards, cash and merchandise at retail stores.

    In total, they fraudulently activated at least 120 stolen credit cards, causing an estimated $1 million in losses to Chase Bank.

    Four others had also previously pleaded guilty to the same charges – Christopher McGee, 43, Daniel Sanchez, 37, Bradley Kane Zarco, 39, and Travis Castaneda Qawasmeh, 28, all of Houston. Sanchez has already been sentenced to 41 months, while the others are pending their hearings.  

    Oyegoke-Tewogbade will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Karen Lansden prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Former President of Allentown Title Company Pleads Guilty to Defrauding Title Insurance Underwriter, Clients, and U.S. Government

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney David Metcalf announced that Louis Belletieri, 43, of Allentown, Pennsylvania, entered a plea of guilty today before United States District Judge Jeffrey L. Schmehl on two counts of wire fraud, charges arising from his scheme to defraud a title insurance underwriter and clients and his fraudulent application to the Small Business Administration (SBA) to obtain Economic Injury Disaster Loans (“EIDL”).

    In May of this year, the defendant was charged with those offenses by information.

    As detailed in court documents, Belletieri was the president of Allentown-based Security Settlement Services of Pittsburgh d/b/a Legacy Title (“Legacy Title”), which he purported to operate for the purpose of providing title and real estate closing services to clients in connection with real estate transactions.

    In or about November 2013, the defendant, as Legacy Title’s president, entered into a contract with a title insurance underwriter, in which the underwriter appointed Legacy Title as its agent for the purpose of issuing title insurance commitments, policies, endorsements for Pennsylvania properties.

    Legacy Title and Belletieri maintained an escrow account to receive funds in connection with these and other client real estate transactions. The money from customers, mortgage lenders, and others was typically transferred electronically into Legacy Title’s escrow account.

    Belletieri should have maintained the funds in the escrow account for the purpose of conducting real estate transactions and disbursing funds as appropriate and for the purpose for which they were entrusted, such as to pay off mortgages, pay taxes, obtain title insurance, and pay for other expenses in connection with real estate transactions.

    As further detailed in court filings and admitted to by the defendant, he instead used the funds in the escrow account for personal reasons, including, among other things, to place online sports bets.

    During the course of the scheme, Belletieri regularly made and caused to be made electronic transfers of funds to and from the escrow account to, from, and among Legacy Title’s business operating account, his personal bank account, his credit card account, and online sports betting platforms.

    From in or about March 2020 through in or about September 2023, Belletieri made electronic transfers of funds from the escrow account to his personal account totaling approximately $6,434,500, and from the escrow account to the business operating account totaling approximately $2,460,190, many of which were not for legitimate business purposes.

    Belletieri took numerous steps to conceal his fraud upon his clients and the title insurance underwriter, including by submitting a fraudulent application to the SBA on behalf of Legacy Title to defraud the SBA and obtain funds via the EIDL program. In connection with this application, the defendant entered into fraudulent loan agreements with the SBA, falsely agreeing that he would use the proceeds of the loan solely as working capital to alleviate economic injury related to the Covid-19 pandemic.

    When the SBA disbursed the EIDL funding to Legacy Title and Belletieri pursuant to his fraudulent application, Belletieri used significant portions of the proceeds for personal uses, rather than as working capital for Legacy Title. As a result, the defendant caused the SBA to disburse a total of approximately $825,000 due to his fraud.

    Belletieri is scheduled to be sentenced on September 12 and faces a maximum possible sentence of 40 years’ imprisonment.

    The case was investigated by FBI Philadelphia’s Allentown Resident Agency with assistance from the Lehigh County District Attorney’s Office and is being prosecuted by Assistant United States Attorneys John J. Boscia and Rebecca J. Kulik.

    MIL Security OSI –

  • MIL-OSI Security: Former state worker pleads guilty in scheme to steal nearly $900,000 in state tax dollars

    Source: Office of United States Attorneys

    Defendant abused role as credit card custodian to embezzle money he then failed to report on his income taxes

    Tacoma – A 48-year-old Olympia resident pleaded guilty today in U.S. District Court in Tacoma to wire fraud in connection with his scheme to steal nearly $900,000 from his former employer – the State of Washington – announced Acting U.S. Attorney Teal Luthy Miller. Matthew Randall Ping pleaded guilty to wire fraud and making and subscribing a false tax return. Ping is scheduled for sentencing by U.S. District Judge Tiffany M. Cartwright on September 9, 2025.

    According to the charging information and the plea agreement, Ping began working for the Washington State Office of Administrative Hearings (OAH) in 2009. By 2017 he had been promoted to the role of Management Analyst and served as the department’s credit card custodian. Between 2019 and 2023, Ping used a sophisticated scheme to abuse his credit card access so he could embezzle at least $878,115 from the state agency.

    The plea agreement and charging information detail how Ping hid the fraud from his employer. Ping opened accounts with payment processors and gave the accounts display names that indicated the accounts were associated with legitimate OAH business vendors. Between 2019 and 2021, Ping secretly charged more than $330,000 to OAH credit cards as purported payments to these vendors. In fact, the money went to accounts Ping controlled. In 2021, Ping set up an account via a different payment processor and continued the fraud, stealing approximately $530,000 in additional funds from OAH. Ping also used OAH credit cards to buy $17,359 in personal items from Verizon and Walmart.

    Ping also circumvented state procedures designed to detect credit card fraud. For example, OAH required that Ping’s co-workers review and approve Ping’s credit card transactions, but Ping would provide false or incomplete lists of transactions during that review process. After the review, Ping would add in his fraudulent charges and upload and approve payment himself without the required oversight on his fraudulent transactions. He also took steps to manipulate the accounting data to make it more difficult to determine that he had violated protocol by uploading, reviewing, and approving his own transactions

    In all Ping secretly executed 210 transactions with the phony vendors he created for a total loss to the state of $860,756. The improper charges on his state issued credit card total $17,359, bringing the total loss to the State of Washington to $878,115.

    The embezzlement was first discovered by the Washington State Auditor’s Office. Ping resigned his position in 2023 when the theft was discovered.

    Even as he was embezzling, Ping failed to report the stolen funds on his income tax returns.  For tax years 2020-2023, the resulting tax loss totals $240,247. Ping has agreed to pay full restitution to the state and to the IRS for his tax obligation.

    The FBI and the Internal Revenue Service Criminal Investigation (IRS-CI) worked with the Auditors Office on the criminal investigation.

    The case is being Prosecuted by Assistant United States Attorney Dane A. Westermeyer.

    MIL Security OSI –

  • MIL-OSI Security: Rapid City Man Sentenced to Just Over Ten Years in Federal Prison for Voluntary Manslaughter

    Source: Office of United States Attorneys

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Voluntary Manslaughter. The sentencing took place on June 6, 2025.

    Vincent Boesem, age 32, was sentenced to ten years and one month in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

    A federal grand jury indicted Boesem in March 2023. He pleaded guilty on March 14, 2025.

    Between July 3, 2022, and July 4, 2022, Boesem and his elderly uncle had been drinking together at the uncle’s home within the Pine Ridge Reservation. While intoxicated with alcohol and methamphetamine, Boesem became enraged and beat the victim about his head, face, and body. Although Boesem ultimately called 911 to get medical help, the victim succumbed to his injuries. Boesem acted in the heat of passion, that is, in an uncontrollable rage and with an extreme emotional disturbance.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court.

    This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Knox prosecuted the case.

    Boesem was immediately remanded to the custody of the U.S. Marshals Service.

    MIL Security OSI –

  • MIL-OSI USA: Chinese National Pleads Guilty to Acting at the Direction of North Korea to Export Firearms, Ammo, and Technology to North Korea

    Source: US State of California

    An illegal alien from China pleaded guilty today to federal criminal charges for illegally exporting firearms, ammunition and other military items to North Korea by concealing them inside shipping containers that departed from the Port of Long Beach, California, and for committing this crime at the direction of North Korean government officials, who wired him approximately $2 million for his efforts.

    Shenghua Wen, 42, of Ontario, California, pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and one count of acting as an illegal agent of a foreign government. Wen has been in federal custody since his arrest in December 2024.

    According to his plea agreement, Wen is a citizen of the People’s Republic of China who entered the United States in 2012 on a student visa and remained in the U.S. illegally after his student visa expired in December 2013.

    Prior to entering the United States, Wen met with officials from North Korea’s government at a North Korean embassy in China. These government officials directed Wen to procure goods on behalf of North Korea.

    In 2022, two North Korean government officials contacted Wen through an online messaging platform and instructed him to buy and smuggle firearms and other goods – including sensitive technology – from the United States to North Korea via China.

    In 2023, at the direction of North Korean government officials, Wen shipped at least three containers of firearms out of the Port of Long Beach to China en route to their ultimate destination in North Korea. Wen took steps to conceal that he was illegally shipping firearms to North Korea by, among other things, filing false export information regarding the contents of the containers.

    In May 2023, Wen purchased a firearms business in Houston, paid for with money sent through intermediaries by one of Wen’s North Korean contacts. Wen purchased many of the firearms he sent to North Korea in Texas and drove the firearms from Texas to California, where he arranged for them to be shipped.

    In December 2023, one of Wen’s weapons shipments – which falsely reported to U.S. officials that it contained a refrigerator – left the Port of Long Beach and arrived in Hong Kong in January 2024. This weapons shipment was later transported from Hong Kong to Nampo, North Korea.

    In September 2024, Wen – once again acting at the direction of North Korean officials – bought approximately 60,000 rounds of 9mm ammunition that he intended to ship to North Korea.

    In furtherance of the conspiracy and at the direction of North Korean officials, Wen also obtained sensitive technology that he intended to send to North Korea. This technology included a chemical threat identification device and a handheld broadband receiver that detects known, unknown, illegal, disruptive or interfering transmissions.

    Wen also acquired or offered to acquire a civilian airplane engine and a thermal imaging system that could be mounted on a drone, helicopter, or other aircraft, and could be used for reconnaissance and target identification.

    During the scheme, North Korean officials wired approximately $2 million to Wen to procure firearms and other goods for their government.

    Wen admitted that at all relevant times he knew that it was illegal to ship firearms, ammunition, and sensitive technology to North Korea. He also admitted to never having the required licenses to export ammunition, firearms, and the above-described devices to North Korea. He further admitted to acting at the direction of North Korean government officials and that he had not provided notification to the Attorney General of the United States that he was acting in the United States at the direction and control of North Korea as required by law.

    Wen faces a maximum penalty of 20 years in prison on the count of violating the IEEPA and a maximum penalty of 10 years in prison on the count of acting as an illegal agent of a foreign government. Sentencing is scheduled for Aug. 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General for National Security John Eisenberg, U.S. Attorney Bilal A. Essayli for the Central District of California, and Assistant Director Roman Rozhavsky of the FBI Counterintelligence Division made the announcement.

    The FBI, Homeland Security Investigations, Defense Criminal Investigative Service (DCIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Department of Commerce Bureau of Industry and Security (BIS) are investigating the case.

    Assistant U.S. Attorney Sarah E. Gerdes for the Central District of California and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: Founder of Orange County Based Non-Profit Charged in 15-Count Indictment Alleging He Bribed County Supervisor in $12 Million Scheme

    Source: US FBI

    SANTA ANA, California – The founder of a now-shuttered non-profit organization has been indicted on federal charges alleging he bribed then-Orange County Supervisor Andrew Hoang Do to obtain approximately $12 million in COVID-19 pandemic-related funds, pocketed the bulk of that money, then laundered it to avoid detection by law enforcement, the Justice Department announced today.

    Peter Anh Pham, 65, of Garden Grove, is charged with one count of conspiracy to commit wire fraud, one count of conspiracy to commit honest services wire fraud, six counts of wire fraud, six counts of concealment money laundering, and one count of bribery.

    Also charged in the indictment is Thanh Huong Nguyen, 61, of Santa Ana, who is charged with one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of concealment money laundering.

    Pham is considered to be a fugitive from justice. Nguyen’s initial appearance and arraignment are expected to occur on Monday in U.S. District Court in Santa Ana.

    “These two defendants are charged with conspiring with a corrupt politician to pad their pockets while the nation suffered under the weight of COVID-19,” said United States Attorney Bill Essayli. “My office and our law enforcement partners will continue our efforts to prosecute individuals who cashed in on government aid intended to help those impacted by the largest public health emergency in a century.”

    “This conspiracy was a house of cards built on lies, betrayal, and insatiable greed,” said Orange County District Attorney Todd Spitzer. “Today’s indictments are another critical step in ensuring accountability – and consequences – for those who conspired to use the County of Orange’s COVID-19 funds as their personal ATMs – and to return those stolen funds to their rightful owners – the community for which these funds were originally intended.” 

    According to the indictment that was returned on Wednesday and unsealed today, Pham was a friend and associate of Do, 62, of Santa Ana, who served on the Orange County Board of Supervisors from 2015 until his resignation in October 2024. In that role, Do was one of five supervisors on the Board, which is responsible for the county’s $9 billion annual budget.

    Do pleaded guilty in October 2024 to one count of conspiracy to commit bribery concerning programs receiving federal funds and is scheduled to be sentenced on June 9, when he will face a sentence of up to five years in federal prison. 

    From June 2020 to October 2024, Do used his official position as a county supervisor to vote for millions of dollars in county funds to be allocated in his district, subject to disbursement at his sole discretion. Do then steered county contracts and grants to Pham and Nguyen, the indictment alleges. 

    For example, in June 2020, Do voted to approve an agenda item that, in part, allocated $5 million in federal COVID-19 pandemic-relief funding to a county nutrition program. As part of this agenda item, Do authorized himself a budget of $1 million to develop that nutrition program in his district, which he could distribute without further approval from the rest of the Board. Eight days after Do voted to approve the agenda item, Pham founded the Huntington Beach-based non-profit organization Viet America Society (VAS).

    Pham, through VAS, and Nguyen, through a Garden Grove-based group called Hand-to-Hand Relief Organization Inc. (H2H), entered into contracts and beneficiary agreements with the county. In many of these contracts, VAS and H2H falsely represented that they would reimburse the county for any funds not spent for the contract’s intended purpose. In each of the beneficiary agreements, VAS and H2H falsely certified that all funds would be used solely for the grant’s intended purpose.

    In exchange for Pham’s bribes in the form of payments to his two daughters, Do used his official position as a county supervisor to advocate for VAS and H2H so county employees would approve contracts and beneficiary agreements between the county and these organizations. Do and his staff – including his chief of staff – edited the terms of those contracts and agreements to make them more favorable to Pham and Nguyen. Through the influence of Do and his staff, the county wired funds to Pham and Nguyen. 

    After receiving county funds, Pham and Nguyen transferred most of the money to other entities they controlled. They then spent large portions of the funds to pay personal expenses such as rent and bills, to pay off debts owed by their other businesses, and to make personal investments such as purchasing commercial and residential real estate. Pham and Nguyen also used county funds to bribe Do through payments to his daughters.

    Pham also used county money to pay the eventual wife of Do’s chief of staff, under the guise that she was providing consulting services to VAS. Do’s chief of staff then used his position in Orange County’s government to help VAS and H2H obtain county contracts, edited the contracts’ terms to make them more favorable to VAS and H2H, and helped those organizations fulfill reporting requirements and get paid.

    When required to submit invoices to the county to account for how the money was being spent, Pham and Nguyen submitted false documents, claiming to have used all the funds – all solely for legitimate purposes and according to the contracts’ terms.

    To disguise the funds’ source, Pham and an associate caused checks from county funds to be written to a Westminster-based company called D Air Conditioning Co. LLC. This company then issued checks from its corporate bank account to Pham, Pham’s associate, and one of Do’s daughters.

    In total, Pham and Nguyen unlawfully acquired approximately $12 million in county funds through this conspiracy.

    An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.

    If convicted of the charges, Pham and Nguyen would face a statutory maximum sentence of 20 years in federal prison for the conspiracy count, each wire fraud count, and each money laundering count. Pham also would face up to 10 years in federal prison for the bribery count. 

    The FBI, the Orange County District Attorney’s Office Bureau of Investigation, and IRS Criminal Investigation are investigating this matter.      

    Assistant United States Attorneys Nandor F.R. Kiss and Rosalind Wang of the Orange County Office, Assistant United States Attorney Tara Vavere of the Asset Forfeiture and Recovery Section, and Senior Deputy District Attorney Avery T. Harrison and Deputy District Attorney Anthony J. Schlehner of Orange County District Attorney’s Office are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Southern California Nurse Indicted for Multimillion-Dollar Hospice Fraud in Fresno and Kern Counties

    Source: US FBI

    FRESNO, Calif. — A federal grand jury returned a six-count indictment charging Jessa Zayas, 34, of Santa Clarita, with health care fraud and aggravated identity theft for submitting millions of dollars in of fraudulent claims for hospice care to Medicare, Acting United States Attorney Michele Beckwith announced today.

    Hospice is a type of care and support for terminally ill patients. Medicare is a federal health insurance program that covers certain hospice expenses. Generally, a patient must be certified as being terminally ill to qualify for hospice care payments under Medicare.

    According to court records, Zayas was the CEO and owner of Healing Hands Hospice and Humane Love Hospice, which are based in Van Nuys, while also working another full-time job.  Zayas caused Healing Hands and Humane Love to fraudulently bill Medicare for hospice care supposedly provided to over 100 people who were not in fact terminally ill. Zayas knew these individuals were not terminally ill as was represented to Medicare, and that they therefore were ineligible for the Medicare hospice payments. The total amount of fraudulent Medicare billings caused by Zayas from June 2023 through May 2025 was at least $2,500,000.

    Zayas and others obtained personal Medicare information for the supposed hospice patients by going to retirement homes in Fresno and Kern Counties. To avoid detection, they made these visits after hours when most of the retirement residences’ managers were gone for the day. Zayas and others knocked on the patients’ doors and asked them for their information so that they could enroll them in hospice. Zayas then caused the Medicare claims to be submitted with false representations about terminal illness and submitted forged doctor’s certifications when Medicare asked for supporting documentation. The Medicare payments were deposited into banks accounts that Zayas controlled.

    The FBI and HHS OIG arrested Zayas and executed a search warrant at her home last week.  Among other evidence, the FBI seized $77,000 in cash that Zayas had hidden in boxes underneath her bed.

    This case is the product of an investigation by the FBI and HHS OIG.  Assistant United States Attorneys Joseph Barton and Brittany Gunter are prosecuting the case.

    If convicted, Zayas faces a maximum term of 10 years in prison and a $250,000 fine for the health care fraud charge.  She also faces an additional mandatory two years in prison for the aggravated identity theft charge, consecutive to any other sentence.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.  The charges are only allegations.  Zayas is presumed innocent until and unless proven guilty beyond a reasonable doubt.

    MIL Security OSI –

  • MIL-OSI Security: Chinese National Pleads Guilty to Acting at the Direction of North Korea to Export Firearms, Ammo, and Technology to North Korea

    Source: United States Department of Justice Criminal Division

    An illegal alien from China pleaded guilty today to federal criminal charges for illegally exporting firearms, ammunition and other military items to North Korea by concealing them inside shipping containers that departed from the Port of Long Beach, California, and for committing this crime at the direction of North Korean government officials, who wired him approximately $2 million for his efforts.

    Shenghua Wen, 42, of Ontario, California, pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and one count of acting as an illegal agent of a foreign government. Wen has been in federal custody since his arrest in December 2024.

    According to his plea agreement, Wen is a citizen of the People’s Republic of China who entered the United States in 2012 on a student visa and remained in the U.S. illegally after his student visa expired in December 2013.

    Prior to entering the United States, Wen met with officials from North Korea’s government at a North Korean embassy in China. These government officials directed Wen to procure goods on behalf of North Korea.

    In 2022, two North Korean government officials contacted Wen through an online messaging platform and instructed him to buy and smuggle firearms and other goods – including sensitive technology – from the United States to North Korea via China.

    In 2023, at the direction of North Korean government officials, Wen shipped at least three containers of firearms out of the Port of Long Beach to China en route to their ultimate destination in North Korea. Wen took steps to conceal that he was illegally shipping firearms to North Korea by, among other things, filing false export information regarding the contents of the containers.

    In May 2023, Wen purchased a firearms business in Houston, paid for with money sent through intermediaries by one of Wen’s North Korean contacts. Wen purchased many of the firearms he sent to North Korea in Texas and drove the firearms from Texas to California, where he arranged for them to be shipped.

    In December 2023, one of Wen’s weapons shipments – which falsely reported to U.S. officials that it contained a refrigerator – left the Port of Long Beach and arrived in Hong Kong in January 2024. This weapons shipment was later transported from Hong Kong to Nampo, North Korea.

    In September 2024, Wen – once again acting at the direction of North Korean officials – bought approximately 60,000 rounds of 9mm ammunition that he intended to ship to North Korea.

    In furtherance of the conspiracy and at the direction of North Korean officials, Wen also obtained sensitive technology that he intended to send to North Korea. This technology included a chemical threat identification device and a handheld broadband receiver that detects known, unknown, illegal, disruptive or interfering transmissions.

    Wen also acquired or offered to acquire a civilian airplane engine and a thermal imaging system that could be mounted on a drone, helicopter, or other aircraft, and could be used for reconnaissance and target identification.

    During the scheme, North Korean officials wired approximately $2 million to Wen to procure firearms and other goods for their government.

    Wen admitted that at all relevant times he knew that it was illegal to ship firearms, ammunition, and sensitive technology to North Korea. He also admitted to never having the required licenses to export ammunition, firearms, and the above-described devices to North Korea. He further admitted to acting at the direction of North Korean government officials and that he had not provided notification to the Attorney General of the United States that he was acting in the United States at the direction and control of North Korea as required by law.

    Wen faces a maximum penalty of 20 years in prison on the count of violating the IEEPA and a maximum penalty of 10 years in prison on the count of acting as an illegal agent of a foreign government. Sentencing is scheduled for Aug. 18. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General for National Security John Eisenberg, U.S. Attorney Bilal A. Essayli for the Central District of California, and Assistant Director Roman Rozhavsky of the FBI Counterintelligence Division made the announcement.

    The FBI, Homeland Security Investigations, Defense Criminal Investigative Service (DCIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Department of Commerce Bureau of Industry and Security (BIS) are investigating the case.

    Assistant U.S. Attorney Sarah E. Gerdes for the Central District of California and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI USA: Former Corrections Officer Sentenced to Over Six Years in Prison on Federal Civil Rights Charges in Connection with Death of Inmate at West Virginia Jail

    Source: US State of California

    A former corrections officer from the Southern Regional Jail in Beaver, West Virginia, was sentenced today for failing to intervene to stop other officers from assaulting an inmate, identified by the initials Q.B., on March 1, 2022. Q.B. died as a result of the officers’ assault. Ashley Toney, 25, was sentenced to 78 months in prison.

    According to her plea agreement, then-Correctional Officer Toney acknowledged that she responded to a call for officer assistance after Q.B. tried to push past another correctional officer and leave his assigned pod. Toney and other officers restrained and handcuffed Q.B. and then escorted Q.B. to an interview room, where multiple officers struck and injured Q.B. while he was restrained, handcuffed and posed no threat to anyone, as punishment for attempting to leave his assigned pod. Toney admitted that she had an opportunity to intervene to stop other officers from assaulting Q.B. but chose not to make any reasonable effort to do so.  

    Toney pleaded guilty before U.S. District Court Judge Joseph R. Goodwin on Aug. 8, 2024.

    “This former corrections officer violated her duty as a law enforcement officer, and the public trust,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “I thank our Civil Rights Division prosecutors and the Assistant U.S. Attorneys who saw these cases through appropriate sentencing.”

    “The defendant’s inaction led to the death of a 37-year-old man, and afterwards she attempted to shield herself and fellow officers from being held accountable for his death,” said Acting U.S. Attorney Lisa G. Johnston for the Southern District of West Virginia. “Through her criminal conduct, the defendant violated the public’s trust in the law enforcement system she swore to uphold. I commend the Civil Rights Division for their outstanding advocacy in this case.”

    Six corrections officers were charged in this case. In November 2024, three of those defendants — Mark Holdren, Corey Snyder, and Johnathan Walters — each pleaded guilty in connection with the use of unreasonable force against Q.B., resulting in his death. In August 2024, Jacob Boothe pleaded guilty to failing to intervene to protect Q.B. from the officers’ assault. Sentencing hearings for Holdren, Snyder, Walters, and Toney are scheduled for July 9.

    On Jan. 27, 2025, a federal jury returned a guilty verdict at trial for the sixth indicted defendant, Chad Lester, a former Lieutenant at the Southern Regional Jail, finding him guilty on three obstruction of justice charges for his role in conspiring to cover up the death of Q.B. On May 15, Judge Goodwin sentenced Lester to 210 months.

    Prior to their respective indictments, former correctional officers Steven Nicholas Wimmer and Andrew Fleshman each pleaded guilty to conspiring to use unreasonable force against Burks. On May 8, 2025, U.S. District Court Judge Frank W. Volk sentenced Wimmer to 108 months. Fleshman is scheduled for sentencing before Judge Volk on July 14.

    Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Lisa G. Johnston for the Southern District of West Virginia made the announcement.

    The FBI Pittsburgh Field Office investigated the case.

    Deputy Chief Christine M. Siscaretti and Trial Attorney Tenette Smith of the Justice Department’s Civil Rights Division prosecuted the case in partnership with the U.S. Attorney’s Office for the Southern District of West Virginia.

    MIL OSI USA News –