NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: U.S. Attorney’s Office Secures Plea in Case Involving Sexual Contact with Minors

    Source: US FBI

    ALBUQUERQUE – A Newcomb man pleaded guilty to federal charges of sexual contact with two minors.

    According to court documents, Roderick Bitsilly, 61, an enrolled member of the Navajo Nation, admitted to engaging in sexual contact with Jane Doe 1, a child under 12, between February and August 2014. Additionally, Bitsilly pleaded guilty to similar charges involving Jane Doe 2, also under 12, between September 2019 and September 2020.

    Bitsilly will remain in third-party custody at a halfway house pending sentencing, which has not yet been scheduled. At sentencing, Bitsilly faces up 75 months in prison. Upon his release from prison, Bitsilly will be subject to no less than five years up to life of supervised release and must register as a sex offender.

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

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorney Caitlin L. Dillon is prosecuting the case.

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  • MIL-OSI Security: Schenectady Man Sentenced to More Than 15 Years on Methamphetamine Conviction

    Source: US FBI

    ALBANY, NEW YORK – Ocyris Morgan, age 36, of Schenectady, New York, was sentenced today to 188 months in prison for possessing methamphetamine with the intent to sell it.

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Morgan admitted that he intended to sell the 21.4 grams of methamphetamine law enforcement seized from his house on June 1, 2023, and when he overheard agents saying they found between one-half and one ounce of methamphetamine, Morgan corrected them, “21.7, to be exact.”  Morgan also admitted to receiving $10,130 over the course of 12 instances in which he sold a total of 93 grams of methamphetamine and 50 grams of cocaine base to several customers.  He further admitted to possessing a firearm and bullet-proof vest.

    Chief United States District Judge Brenda K. Sannes also imposed a 4-year term of supervised release and ordered Morgan to forfeit the $10,130 he made from the drug sales. 

    The FBI’s Capital District Safe Streets Task Force—made up of FBI Special Agents as well as members of other federal, state, and local law enforcement agencies, including the Schenectady Police Department—investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

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  • MIL-OSI Security: The Grand Health Care System and 12 Affiliated Skilled Nursing Facilities to Pay $21.3 Million for Allegedly Providing and Billing for Fraudulent Rehabilitation Therapy Services

    Source: US FBI

    Company Admits that Supervisory Officials Falsified Information in Medical Records

    ALBANY, NEW YORK – Strauss Ventures LLC doing business as The Grand Health Care System and 12 affiliated skilled nursing facilities (collectively, the Grand), have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled, or that simply did not occur as billed. Many of the settling facilities are located in upstate and central New York, including in Albany, Oneida, Madison, Columbia, and Herkimer counties.

    “Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said United States Attorney Carla B. Freedman.  “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”

    The settlement resolves allegations that from as early as January 1, 2014 to September 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported. 

    As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.” 

    The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.

    “We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.” 

    The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York nursing home between January 1, 2016 and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there. 

    The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

    “Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”

    “The Grand admitted to providing unnecessary care to our most vulnerable, to include knowingly keeping patients in their facilities and away from their loved ones when they needed them most,” said Craig Tremaroli, Special Agent in Charge of the FBI’s Albay Field Office. “This settlement illustrates the FBI’s commitment to working with our partners to protect federally funded healthcare programs from abuse by companies looking to line their pockets with taxpayer dollars.”

    “As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” stated Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

    “Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Acting Special Agent in Charge Brian J. Solecki of DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold DoD contractors accountable for their fraudulent activity and ensure America’s service members are not subject to unnecessary risk.”

    The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by two former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:19-cv-1311.

    The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI, Albany Field Office; DCIS, Syracuse Resident Agency, and the New York State Attorney General’s Office investigated the matter. Assistant U.S. Attorney Adam J. Katz and Senior Trial Counsel Christelle Klovers represented the United States.

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  • MIL-OSI Security: Warren County Man Pleads Guilty to Attempted Online Enticement of a Minor

    Source: US FBI

    ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, pled guilty today to the attempted online enticement of a minor.

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl in an attempt to entice the child into engaging in sexual acts with him.  Cutter also admitted that on that same date, he travelled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl.  Cutter was arrested by law enforcement shortly after arriving at the location.

    At sentencing on November 11, 2024, before United States District Mae A. D’Agostino, Cutter faces at least 10 years and up to life in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the smartphone Cutter used to commit his offense.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Cutter will also have to register as a sex offender upon his release from prison.

    This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Warren County Sheriff’s Office.  Assistant U.S. Attorney Allen J. Vickey is prosecuting the case as part of Project Safe Childhood. 

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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.

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  • MIL-OSI Security: Arkansas Man Admits Traveling to Albany for Sexual Contact with Minor and Transporting Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Kyle Biswell, age 38, of Prairie Grove, Arkansas, pled guilty today to traveling from Arkansas to Albany, with the intent to engage in illicit sexual contact with a child, and to transporting child pornography in interstate commerce.

    United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Biswell admitted that between January and April 2023, he communicated with an individual he believed was the mother of an 11-year-old girl through an internet-based social networking application and using his cellular phone.  Over the course of those communications, Biswell expressed his interest in engaging in sexual contact with the 11-year-old and ultimately purchased airfare to travel from his home in Arkansas to Albany, with the intent to engage in illicit sexual contact with the child on April 8, 2023.  Upon his arrival in the Capital Region on April 8, 2023, Biswell was arrested by FBI agents, and admitted that he had traveled from Arkansas to Albany for the purpose of engaging in sexual acts with a child he believed to be 11 years old.  Biswell further admitted that he brought child pornography with him on his cell phone.  The cell phone was subsequently searched by the FBI and found to contain numerous videos and images depicting child pornography, including several videos depicting the sexual abuse and rape of children under the age of 5.   

    At sentencing on November 13, 2024, before United States District Judge Anne M. Nardacci, Biswell faces at least 5 years and up to 30 years in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to a life term.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the cell phone Biswell used to commit his offenses.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Biswell will also have to register as a sex offender upon his release from prison. 

    The FBI investigated the case. Assistant U.S. Attorney Benjamin S. Clark is prosecuting the case as part of Project Safe Childhood.  Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s 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.

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  • MIL-OSI Security: Rutland Man Charged with Unlawful Firearm Possession and Maintaining a Drug Premises

    Source: US FBI

    Burlington, Vermont – The United States Attorney’s Office stated that on July 18, 2024 the federal Grand Jury in Burlington returned an indictment charging Daniel McSwiggan, 51, of Rutland, Vermont, with drug and gun offenses. The two-count indictment alleges that, between late June and early July 2024, McSwiggan possessed two firearms as an unlawful drug user and made his residence available for drug use and distribution. McSwiggan will be arraigned in the coming days.

    According to court records, in late June and early July of this year, McSwiggan possessed two firearms, knowing that he was an unlawful user of cocaine base, and made his residence in Rutland available for use and distribution of cocaine base. Court records also allege that, in the early morning hours of June 24, 2024, McSwiggan shot a rifle at a suspected drug distributor outside of his residence. On July 2, 2024, law enforcement executed a search warrant at McSwiggan’s residence and recovered a Savage Model 10 .308 caliber rifle, a Ruger 10/22 .22 caliber rifle, 282 rounds of ammunition, cocaine base, and drug paraphernalia.

    The United States Attorney emphasizes that the charges in the indictment are accusations only and that the defendant is presumed innocent unless and until proven guilty. If convicted, McSwiggan faces maximum penalties of 15 years in prison and a $250,000 fine for the unlawful firearm possession, and 20 years in prison and a $500,000 fine for making his residence available for drug use and distribution. Any sentence will be determined by the U.S. District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.

    United States Attorney Nikolas P. Kerest commended the investigatory and collaborative efforts of Homeland Security Investigations, the Rutland City Police Department, the Rutland Town Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation and the Vermont State Police.

    The United States is represented in this matter by Assistant U.S. Attorney Corinne M. Smith. McSwiggan is represented by Federal Public Defender Michael Desautels.

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

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  • MIL-OSI Security: Buffalo Man Going Back to Prison on Drug and Gun Charges

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Victor Marshall, 51, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine and being a felon in possession of a firearm and ammunition, was sentenced to serve 156 months in prison by U.S. District Judge Richard J. Arcara.

    Assistant U.S. Attorney Pierre Richard Antoine, who is handling the case, stated that in June 2014, Marshall was sentenced to serve 130 months in federal prison and five years’ supervised release after being convicted of conspiracy to distribute 500 grams or more of cocaine. As a condition of supervised release, Marshall was ordered not to commit another federal, state, or local crime. In March 2022, Marshall was indicted by a federal grand jury on drug and gun charges, and subsequently admitted that he committed the conduct alleged in the indictment, violating his supervised release.

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

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  • MIL-OSI Security: Sex Offender Convicted on New Child Pornography Charge

    Source: US FBI

    ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jordan E. Brodie, 37, of LeRoy, NY, pleaded guilty to possession of child pornography following a previous conviction for possession of child pornography, before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.

    Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in May 2023, Brodie, a convicted sex offender under the active supervision of the Genesee County Probation Department, became involved in a chat application in which he and others traded child pornography. Brodie uploaded at least one of the images to a different platform, which then reported the image to the National Center for Missing and Exploited Children.  An investigation by the New York State Police determined that the upload took place from Brodie’s home in LeRoy. A search warrant was executed at Brodie’s residence during which investigators seized his phone, and the contents of the social media account that uploaded the image. Images of child pornography depicting children less than 12 years old were recovered from both the phone and the social media account.  Some of images included violence against children. Brodie was previously convicted of a child pornography charge in May 2021 in Genesee County, for which he was being actively supervised at the time of the current offense. 

    The plea is the result of an investigation by the New York State Police, under the direction of Major Miklos Szoczei II, the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the National Center for Missing and Exploited Children.

    Sentencing is scheduled for October 21, 2024, at 9:15 a.m. before Judge Siragusa.

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  • MIL-OSI Security: Uzbekistan Man Extradited From Ukraine and Arraigned on Charges of Stealing Millions of Dollars in Cryptocurrency

    Source: US FBI

    Buffalo, N.Y.-U.S. Attorney Trini E. Ross announced that Nikita Andreevich Sklyuev a/k/a Valeriy Dorojkin, 37, of Uzbekistan, was extradited from Ukraine and arraigned today on an indictment charging him with wire fraud and fraudulent use of unauthorized access device. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

    Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment, in June 2018, Sklyuev submitted a computer software application, “EOSIO Wallet Explorer,” to Apple to be sold through the Apple App Store. The EOSIO Wallet Explorer purported to be a cryptocurrency wallet, but was in fact a malicious computer software application designed to steal the cryptocurrency user’s private key, thereby giving Sklyuev access to the user’s cryptocurrency funds. In September 2018, an individual in the Western District of New York (Victim) purchased the EOSIO Wallet Explorer application and then installed it on his iPhone. Once the Victim entered his private key following the installation, Sklyuev had unauthorized access to the Victim’s cryptocurrency wallet, which contained approximately 2,092,395.5356 EOS cryptocurrency, which at the time was valued at approximately $11.8 million dollars. On September 25, 2018, Sklyuev changed the private key to the Victim’s wallet, which resulted in the Victim losing all control and access to his wallet. In February 2019, Sklyuev transferred the EOS cryptocurrency from the Victim’s wallet to numerous other online wallets that were under his control.

    Sklyuev was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 3, 2024. Today’s arraignment follows the successful June 20, 2024, extradition of Sklyuev from Ukraine. The Justice Department’s Office of International Affairs worked with Romanian and Ukrainian authorities to secure his arrest and extradition.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the U.S. Marshals Service, under the direction of Marshal Charles Salina.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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  • MIL-OSI Security: Oregon Man Arrested for Indecent Exposure After Flight From Oregon to New Hampshire is Diverted to Buffalo

    Source: US FBI

    BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Neil McCarthy, 25, of Oregon, was arrested and charged by criminal complaint with indecent exposure, which carries a maximum penalty of six months in prison and a $5,000 fine.

    Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated according to the complaint, on July 3, 2024, the Niagara Frontier Transit Authority (NFTA) Police were called to Gate 2 at the Buffalo Niagara International Airport, to respond to a report made by an American Airlines flight that a man exposed himself and urinated in the aisle of the aircraft while the plane was in flight. The aircraft was diverted from the original destination of Manchester, New Hampshire, to Buffalo. When the flight landed, an officer boarded the airplane and spoke to a flight attendant, who said that McCarthy had exposed himself and urinated on the flight. McCarthy was taken into custody and escorted off the plane.

    McCarthy made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on his own recognizance.

    The complaint is the result of an investigation by the Niagara Frontier Transit Authority Police, under the direction of Chief Brian Patterson and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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  • MIL-OSI Security: Former Rochester Firefighter Pleads Guilty to Child Pornography Charges

    Source: US FBI

    ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Brett Marrapese, 32, of Irondequoit, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to distribution and receipt of child pornography, The charges carry a mandatory minimum penalty of five years in prison per count, a maximum of 40 years, and a $250,000 fine.

    Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between January 2016, and June 13, 2023, Marrapese used a cell phone, laptop computer, an email account, and multiple social media and internet chat applications, including Omegle; Kik; Snapchat; and Instagram, to produce, receive, distribute, and possess child pornography. In total, Marrapese received more than 600 images of child pornography that he obtained from others via the internet. He also posed as a teenage boy causing minors to produce and send to him sexually explicit images of themselves. Some of the images that Marrapese distributed and received depicted violence against and sexual abuse of children, infants, and toddlers. 

    The plea is the result of an investigation by the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction Special Agent-in-Charge Matthew Miraglia.

    Sentencing is scheduled for November 6, 2024, at 1:00 p.m. before Judge Wolford.

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  • MIL-OSI Security: Bronx Tax Preparer Pleads Guilty to Filing Tens of Thousands of False Tax Returns Causing $145 Million in Fraudulent Tax Loss

    Source: US FBI

    Rafael Alvarez Perpetrated and Oversaw One of the Largest Ever Tax Frauds by a Return Preparer

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today the guilty plea of RAFAEL ALVAREZ, a/k/a “the Magician,” to a two-count Superseding Information charging ALVAREZ with one count of conspiracy to defraud the U.S. and steal government funds and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return.  The charges arise from ALVAREZ’s orchestration of a decade-long, $145 million tax fraud scheme to file tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce the individuals’ tax burden.  As part of today’s guilty plea, Alvarez agreed to pay the Internal Revenue Service (“IRS”) $145 million in restitution and forfeit over $11.84 million in fraudulent proceeds he received from his criminal conduct.  ALVAREZ pled guilty today before U.S. District Judge J. Paul Oetken.

    Acting U.S. Attorney Edward Y. Kim said: “Rafael Alvarez became known as ‘the Magician’ by his customers for his supposed ability to make their tax burden disappear.  But, as today’s guilty plea shows, there was no magic to what Alvarez was doing – he was committing a serious federal crime by falsifying tens of thousands of tax returns and, in the process, depriving the IRS of $145 million in tax revenue.  Today’s guilty plea, in one of the largest ever tax frauds by a return preparer, should serve as an important reminder to tax professionals that this Office will vigorously investigate and prosecute tax offenses.”

    As alleged in the Indictment and Superseding Information and statements made in public filings and court proceedings:

    From at least in or about 2010, up to and including in or about 2020, ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”).  ATAX was a high-volume tax preparation company located in the Bronx, New York, which prepared approximately 90,000 federal income tax returns for its customers during this period.  ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers.  During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the IRS in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS.

    In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of $145 million in tax revenue.  ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.”  Additionally, ALVAREZ agreed as part of his plea agreement that he was a leader of the scheme and attempted to obstruct or impede the administration of justice with respect to the investigation of the tax fraud scheme when he and an ATAX employee made false statements to an IRS Revenue Agent.  ALVAREZ’s operation of ATAX helped the company generate approximately $12 million in fraudulent proceeds over the duration of the fraud.

    *                *                *

    ALVAREZ, 61, of Cortland Manor, New York, pled guilty to one count of conspiracy to defraud the U.S. and steal government funds, which carries a maximum sentence of five years in prison, and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return, which carries a maximum sentence of three years in prison.  ALVAREZ is scheduled to be sentenced by Judge Oetken on April 11, 2025.   

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

    Mr. Kim praised the outstanding investigative work of the IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration in this case.

    This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney David R. Felton is in charge of the prosecution. 

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  • MIL-OSI Security: ‘Incognito’ Market Owner Pleads Guilty for Operating One of the Largest Illegal Narcotics Marketplaces on the Internet

    Source: US FBI

    Rui-Siang Lin Used the Identity of “Pharoah” to Operate Incognito Market, Which Sold More Than $100 Million of Illegal Narcotics to Customers Around the World

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that RUI-SIANG LIN, a/k/a “Ruisiang Lin,” a/k/a “林睿庠,” a/k/a “Pharoah,” a/k/a “faro,” pled guilty to narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication in connection with LIN’s operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. LIN pled guilty today before U.S. District Judge Colleen McMahon and is scheduled to be sentenced on March 27, 2025.

    Acting U.S. Attorney Edward Y. Kim said: “Rui-Siang Lin led a prolific online narcotics bazaar that sold more than $100 million of narcotics around the world.  While Lin profited millions of dollars from his sophisticated scheme, the community suffered.  Lin and his “Incognito Market” exacerbated the opioid and fentanyl crisis and put the community in danger.  Lin now faces a lengthy term in prison.”

    According to the allegations contained in the Indictment, Complaint, and statements made in public filings and in public court proceedings:

    Incognito Market was an online narcotics bazaar that existed on the dark web.  Incognito Market formed in October 2020.  Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines.  Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.”  LIN operated the Incognito market under the online pseudonym “Pharoah” or “faro.”  As “Pharoah” — the leader of Incognito market — LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.

    Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service.  Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

    After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice.  Incognito Market sold illegal narcotics and misbranded prescription medication, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:

    Listings included offerings of prescription medication that was advertised as being authentic but was not.  For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market.  Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.

    Each listing on Incognito Market was sold by a particular vendor.  To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee.  In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers.  LIN collected millions of dollars of profits from Incognito.  To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected.  The bank enabled buyers and sellers to stay anonymous from each other.  The bank’s graphic interface is pictured below:

    On March 12, 2020, before Incognito Market launched, LIN emailed himself a rough diagram of a darknet marketplace.  That diagram, which is pictured below, contains features consistent with the operation of Incognito Market.

    *                *                *

    RUI-SIANG LIN, 23, of Taiwan, pled guilty to one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to sell adulterated and misbranded medication, which carries a maximum potential sentence of five years in prison.

    The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

    Mr. Kim praised the investigative work of the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Food and Drug Administration Office of Criminal Investigations, and the New York City Police Department.  

    This effort is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the U.S. using a prosecutor-led, intelligence-drive, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    The case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo are in charge of the prosecution.

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  • MIL-OSI Security: New York City Resident Pleads Guilty to Operating Secret Police Station of the Chinese Government in Lower Manhattan

    Source: US FBI

    Defendant Admitted That He Conspired to Act as an Illegal Agent of the Chinese Government

    BROOKLYN, NY – Today in federal court in Brooklyn, Manhattan resident Chen Jinping pleaded guilty to conspiring to act as an agent of the government of the People’s Republic of China (PRC), in connection with opening and operating an undeclared overseas police station in lower Manhattan for the PRC’s Ministry of Public Security (MPS).  Today’s proceeding was held before United States District Judge Nina R. Morrison. When sentenced, the defendant faces up to five years in prison.

    Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

    “A priority of my Office has been to counteract the malign activities of foreign governments that violate our nation’s sovereignty by targeting local diaspora communities in the United States,” stated United States Attorney Peace.  “Today, a participant in a transnational repression scheme who worked to establish a secret police station in the middle of New York City on behalf of the national police force of the People’s Republic of China has pleaded guilty to conspiracy to act as an illegal agent.  We will continue our efforts to protect the rights of vulnerable persons who come to this country to escape the repressive activities of authoritarian regimes.”

    “Today’s guilty plea holds the defendant accountable for his brazen efforts to operate an undeclared overseas police station on behalf of the PRC’s national police force — a clear affront to American sovereignty and danger to our community that will not be tolerated,” stated Assistant Attorney General Olsen.  “The Department of Justice will continue to pursue anyone who attempts to aid the PRC’s efforts to extend their repressive reach into the United States.”

    “Today, Chen Jinping admitted to his role in audaciously establishing an undeclared police station in the heart of New York City and attempting to conceal the effort when approached by FBI New York,” stated FBI Assistant Director in Charge Dennehy. “This illegal police station was not opened in the interest of public safety, but to further the nefarious and repressive aims of the PRC in direct violation of American sovereignty. The FBI is unwavering in our duty to protect both the freedoms enshrined in the Constitution and the security of our nation from oppressive hostile governments.”

    As alleged in court filings and facts presented at the plea proceeding, Chen Jinping and co-defendant Lu Jianwang conspired to act as illegal agents of the PRC government and also obstructed justice by destroying evidence of their communications with an MPS official (the MPS Official).  While acting under the direction and control of the MPS Official, the defendants worked together to establish the first known overseas police station in the United States on behalf of the Fuzhou branch of the MPS.  The police station—which closed in the fall of 2022—occupied an entire floor in an office building in Manhattan’s Chinatown.  Chen and Lu  helped open and operate the clandestine police station.  None of the participants in the scheme informed the U.S. government that they were helping the PRC government open and operate an undeclared MPS police station on U.S. soil.

    In October 2022, the FBI conducted a judicially authorized search of the illegal police station.  In connection with the search, FBI agents interviewed both defendants and seized their phones.  In reviewing the contents of these phones, FBI agents observed that communications between the defendants, on the one hand, and the MPS Official, on the other, appeared to have been deleted.

    Lu Jianwang has pleaded not guilty to the charges and is awaiting trial.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorneys Alexander A. Solomon and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

    The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

    The Defendant:

    CHEN JINPING
    Age: 60
    Manhattan, New York

    E.D.N.Y. Docket No. 23-CR-316 (NRM)

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  • MIL-OSI Security: Former Executive of Airline and Co-Conspirator Sentenced in a Money Laundering Conspiracy

    Source: US FBI

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that SHUKHRATJON MIRSAIDOV and SHUKHRAT ABDULLAEV were sentenced to one year and a day and 24 months in prison, respectively, for their roles in operating a money laundering scheme from June 2019 to February 2022, using the U.S. bank account of an international airline (“Airline-1”) with a hub at John F. Kennedy International Airport in New York, where MIRSAIDOV was the lead U.S.-based executive.  U.S. District Judge Loretta A. Preska imposed MIRSAIDOV’s sentence today and ABDULLAEV’s sentence on September 4, 2024, following the defendants’ guilty pleas to conspiracy to commit money laundering. 

    Acting U.S. Attorney Edward Y. Kim said: “For years Shukhratjon Mirsaidov and Shukrat Abdullaev engaged in a scheme to launder healthcare fraud proceeds through the accounts of an international airline in order to conceal the illicit nature of these funds.  Laundering schemes that use real businesses to conceal crime proceeds are often particularly difficult for law enforcement to detect.  This case demonstrates that this Office will continue to root out money laundering, no matter how sophisticated, wherever it occurs and that those responsible will be held to full account.”  

    According to allegations in the Indictment, the criminal Complaint, public filings, and statements made in court: 

    In the course of the money laundering conspiracy, MIRSAIDOV and ABDULLAEV used a U.S. company bank account for Airline-1 (the “Airline-1 Bank Account”) to operate a check-cashing scheme and to launder hundreds of thousands of dollars of healthcare fraud proceeds.  As a senior executive, MIRSAIDOV was one of two signatories for the Airline-1 Bank Account.  Between approximately June 2019 and August 2021, MIRSAIDOV deposited into the Airline-1’s Bank Account over 100 checks drawn from accounts controlled by seven shell companies that were used to launder the proceeds of healthcare fraud.  For example, the shell companies had received insurance payments for medical services purportedly provided by a doctor, but the doctor did not, in fact, provide such services.  The shell companies were primarily funded by payments from medical clinics, physicians, and medical diagnostic testing companies and had no relation whatsoever to the airline industry. 

    MIRSAIDOV obtained the checks from the shell companies from ABDULLAEV, who was not an employee of Airline-1 and who obtained the checks from the perpetrators of the healthcare fraud scheme.  MIRSAIDOV and ABDULLAEV collected cash generated from Airline-1 ticket sales and fees, and instead of depositing that cash into Airline-1’s bank account, used the cash to illegally cash the shell company checks.  ABDULLAEV gave the cash generated from the airline ticket sales and fees to the perpetrators controlling the shell companies.

    MIRSAIDOV and ABDULLAEV not only used the Airline-1 Bank Account to launder healthcare fraud proceeds from the shell companies, but also used the Airline-1 Bank Account to launder funds represented to be fraud proceeds in a series of sting transactions.  Between approximately June 2021 and February 2022, law enforcement, with the assistance of a confidential source (“CS-1”), conducted a series of sting money laundering transactions involving MIRSAIDOV, ABDULLAEV, and the Airline-1 Bank Account.  CS-1 asked ABDULLAEV to cash checks and transmit funds abroad and agreed to pay ABDULLAEV a four percent fee to do so.  ABDULLAEV told CS-1 a portion of the fee went to MIRSAIDOV.  During the transactions, CS-1 represented to ABDULLAEV that the funds were healthcare fraud proceeds.  Overall, CS-1 provided ABDULLAEV with 14 checks totaling $210,000 issued from a covert law enforcement account held in the name of a fictitious company.  MIRSAIDOV, working with ABDULLAEV, deposited 12 of the checks totaling $190,000 into the Airline-1 Bank Account.  CS-1 received cash from ABDULLAEV in exchange for the checks, and in one instance, ABDULLAEV coordinated the delivery of U.S. currency to an individual abroad in exchange for some of the checks.  During the course of these sting transactions, in a recorded conversation with CS-1, MIRSAIDOV admitted, in sum and substance, that he received many checks from ABDULLAEV and that MIRSAIDOV gave ABDULLAEV cash in exchange for the checks.  CS-1 informed MIRSAIDOV, in sum and substance, that the checks from CS-1 came from a medical company and that the company disguised the check payments in its financial reporting by claiming the check deposits were for business class flight tickets.  MIRSAIDOV nevertheless expressed a willingness to work directly with CS-1 to conduct check cashing using the Airline-1 Bank Account.       

    Participants in the underlying healthcare fraud scheme who laundered their crime proceeds with the assistance of MIRSAIDOV and ABDULLAEV using the Airline-1 Bank Account have been charged by this Office in U.S. v. Tariverdi, et al, No. 24 Cr. 599 (JPO).

    *                *                *

    In addition to the prison sentence, MIRSAIDOV, 46, of Fort Lee, New Jersey, was ordered to pay forfeiture in the amount of $674,171.  ABDULLAEV, 39, of Brooklyn, New York, was sentenced to three years of supervised release and was ordered to pay forfeiture in the amount of $704,171.   

    Mr. Kim praised the outstanding work of the Federal Bureau of Investigation. 

    The case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Cecilia Vogel, Christopher Brumwell, and Vladislav Vainberg are in charge of the prosecution.

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  • MIL-OSI Security: Member of Cypress Gangsta Crips Gang Charged with 2015 Murder

    Source: US FBI

    Earlier today, a two-count indictment was unsealed in federal court in Brooklyn charging Jason Soto, also known as “Twin,” a member of the Cypress Gangsta Crips (CGC), a subgroup of the Eight Trey Crips based in the Cypress Hills Houses of East New York, Brooklyn, with the February 2015 murder of Shakim Rivera, the leader of the CGC.   The defendant was arrested this morning and will be arraigned before United States Magistrate Judge Sanket J. Bulsara.

    Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the arrest and indictment.

    “This indictment makes clear that my Office and our law enforcement partners are relentless in our pursuit of violent gang members who have committed murders and harmed communities like the Cypress Hills Houses for far too long,” stated United States Attorney Peace.  “We are reducing gang and gun-related violence and saving lives through a coordinated effort to target the most violent offenders, like this defendant.”

    “Jason Soto, a Crips gang member, allegedly appointed himself as judge, jury, and executioner to murder his own leader as twisted justice for the death of a fellow member. Soto’s alleged actions contributed to the infestation of gang violence plaguing a Brooklyn housing complex and endangered the lives of thousands of its residents. With the assistance of our law enforcement partners, the FBI will continue to apprehend any gang member wreaking havoc in our communities,” stated FBI Assistant Director in Charge Dennehy.

    “The residents of the Cypress Hills Houses, along with all New Yorkers in every neighborhood, deserve to live their lives without fear,” stated NYPD Commissioner Tisch.  “The NYPD and our law enforcement partners are dedicated to systematically dismantling the gangs and crews responsible for crime and violence in New York City. I commend the collaborative efforts of our NYPD investigators, the FBI, and the U.S. Attorney’s Office for the Eastern District of New York in identifying and holding accountable those who terrorize our communities.”

    As detailed in the indictment and other court documents, since at least February of 2015, Soto was a member of the CGC, which operated in the Cypress Hills Houses and elsewhere.  CGC members committed acts of violence to promote the gang, enforce the rules of the gang, keep rivals in fear of CGC and earn money for the gang through firearm and narcotics trafficking and robberies.

    The investigation revealed a deadly gang turf war fought in the Cypress Hill Houses—in the midst of residential buildings, stores and a playground—between gangs that have aligned themselves by where their members live within the housing complex.  The Bloods gang associated with the “Frontside” section of Cypress feuded with the CGC members of the “Backside” and “Teamside” sections of Cypress.  An internal war broke out in 2015 within the CGC when high-ranking member Demetrius Graham, also known as “Duke,” was murdered on February 19, 2015. Believing that CGC leader Shakim Rivera was responsible for Graham’s murder, members of CGC planned retaliation.

    On February 19, 2015, Soto traveled from Pennsylvania to Brooklyn to carry out Rivera’s murder.  On February 22, 2015, Soto lured Rivera to the vicinity of 9011 Bayview Place in the Canarsie neighborhood of Brooklyn.  As alleged, Soto and another member of the CGC shot and killed Rivera, the leader of CGC, in retaliation for Graham’s murder.

    The indictment is the result of a long-term investigation initiated by the FBI, the NYPD and the Office in 2015 in response to gang-related violence in and around the Cypress Hills Houses.  The investigation has resulted in charges against over 20 defendants for drug trafficking, illegal weapons possession, robbery and murder.

    If convicted, the defendant faces a mandatory sentence of life in prison, or possibly the death penalty.

    The charges announced today are allegations, and the defendant is presumed innocent unless and until proven guilty.

    The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States  Attorneys Emily J. Dean and Andy Palacio are in charge of the prosecution, with the assistance of Paralegal Specialist Theodore Rader.

    The Defendant:

    JASON SOTO
    Age:  36
    Queens, New York

    E.D.N.Y. Docket No. 24-CR-511 (RER)

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  • MIL-OSI Security: New York Cyberstalker is Sentenced to 15 Years in Prison

    Source: US FBI

    CHARLOTTE, N.C. – Russell J. Martini, 47, of Bay Shore, New York, was sentenced today to 180 months in prison followed by three years of supervised release for cyberstalking a female victim and related offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.

    According to court documents and court proceedings, in April and May of 2022, Martini sent repeated harassing and threatening communications to an individual identified in court documents as “Jane Doe.” Jane Doe knew Martini and had obtained a protection order in New York that prohibited the defendant from contacting her. In April 2022, Jane Doe moved from New York to Charlotte. Soon thereafter, Martini began a cyberstalking campaign against Jane Doe, and used texts, emails, and social media platforms to send Jane Doe and members of her family harassing messages and threats of death and bodily injury. Martini also created a public social media account in Jane Doe’s name and used a compromising photo of the victim as a profile picture. Court documents show that Martini threatened to publish sexual photos and videos of Jane Doe online and on popular social media websites if Jane Doe did not respond to his communications.

    According to filed court documents, in May 2022, Martini sent Jane Doe emails in which he threatened to kill her, “cave her face in,” “leave her in a pool of blood,” and kill her animals.  Then, Martini traveled to Charlotte and attempted to kidnap Jane Doe. Martini waited at Jane Doe’s apartment complex and attacked her as she walked up the stairs to her apartment. Martini then attempted to drag the victim to his car, but a bystander intervened, and Martini fled. After the attack, Martini sent Jane Doe an email asking her if she was “ready for round two” and threatened to kill her.

    Court records show that Martini was convicted of stalking another female victim in 2018. In support of Martini’s 15-year sentence, U.S. District Judge Robert J. Conrad, Jr. cited Martini’s lengthy criminal history involving similar behavior, his inability to comply with previous terms of probation, and the need to protect the public from Martini.

    On September 28, 2023, Martini pleaded guilty to cyberstalking, stalking, and communicating interstate threats.

    In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case.

    Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuted the case.              

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  • MIL-OSI Security: North Carolina Man Found Guilty of Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach

    Source: US FBI

              WASHINGTON— A North Carolina man was found guilty of assaulting law enforcement and other felony and misdemeanor offenses related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

              A federal jury in the District of Columbia found Brett Alan Rotella, also known as Brett Ostrander, 35, of Kannapolis, North Carolina, guilty on Sept. 11, 2024, of three felony offenses, including obstruction of law enforcement during a civil disorder, and two counts of assaulting, resisting, or impeding certain officers. In addition to the felonies, Rotella was convicted of three misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, and impeding passage through the Capitol grounds or buildings.

              U.S. District Judge Randolph D. Moss will sentence Rotella on Dec. 13, 2024.

              According to court documents and evidence presented during the trial, on Jan. 6, 2021, at approximately 2:24 p.m., Rotella was identified among a crowd of rioters amassed on the West Plaza of the U.S. Capitol building in Washington, D.C., wearing distinctive clothing that included a red skull cap, a black sleeveless puffy vest over a red sleeveless shirt, and white or gray long shorts. He carried a long pole with at least two flags affixed to it at various points during the day.

               According to police body-worn camera footage, just minutes after his arrival at the West Font, Rotella approached a police barricade and forcibly pushed it toward a Metropolitan Police Department officer, while shouting inflammatory remarks.

              At approximately 2:33 p.m., as the police line on the West Plaza became overwhelmed and was forced to retreat, Rotella was observed taking charge of a group of rioters, directing their movements by periodically signaling with his hand to “hold” and leading them up the southwest stairs toward the Capitol.

              Video footage from the Lower West Terrace showed that at approximately 2:40 p.m., Rotella followed retreating officers into the Lower West Terrace Tunnel, the site of some of the most violent attacks against law enforcement that day. Inside the Tunnel, as officers attempted to hold back the rioters, Rotella continued his advance, even after pepper balls containing chemical irritant were fired at him.

              Evidence during the trial showed that the mob, including Rotella, breached the Capitol entrance at the Tunnel by smashing the glass pane of one of the locked doors and forcing the doors open. CCTV and body-worn camera footage depicted Rotella entering the Tunnel and joining others in a concerted effort to physically assault police officers inside. Inside the Tunnel, Rotella pushed against police shields and attempted to leverage his body to push through the police line and into the building.

              Rotella left the Tunnel at approximately 2:55 p.m., but remained in the vicinity for approximately ninety more minutes, joining a large crowd that repeatedly surged against the police line.. Further video evidence depicted Rotella counting down and leading a coordinated push by the mob against the officers.

              Rotella was later observed grabbing a large orange ladder and handing it toward the front of the crowd in an apparent attempt to use it against the officers. Video footage showed Rotella pushing the ladder into the Tunnel and pushing against other rioters near him in an effort to collectively breach the police line.

              The FBI arrested Rotella on Aug. 29, 2023, in Mooresville, North Carolina.

              This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of North Carolina and the U.S. Attorney’s Office for the Middle District of North Carolina.

              This case is being investigated by the FBI’s Charlotte and Washington Field Offices, which identified Rotella as BOLO (Be on the Lookout) #82 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

              In the 44 months since Jan. 6, 2021, more than 1,504 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 560 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

              Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Twelve Defendants Sentenced for Violent Home Invasion Robberies to Steal Cryptocurrency

    Source: US FBI

    A Florida man was sentenced to 47 years in prison on Wednesday for his role in a scheme involving a series of home invasion robberies targeting cryptocurrency. Between Sept. 5 and Sept. 12, a total of 12 men have been sentenced for their role in the scheme.

    According to court documents and evidence presented at the trial, Remy Ra St Felix, 25, of West Palm Beach, and his co-conspirators stole over $3.5 million from victims through SIM swapping and violent home invasions in which they held victims at gunpoint, assaulted them, and bound them with plastic cable ties. St Felix was convicted on June 25 by a federal jury in Greensboro, North Carolina, after a six-day trial. In addition to his sentence of incarceration, St Felix was sentenced to five years of supervised release and ordered to pay $524,153.39 in restitution.

    According to court documents and evidence presented at trial, beginning in late 2020, St Felix’s co-conspirator, Jarod Gabriel Seemungal, 23, of West Palm Beach, and foreign co-conspirators stole cryptocurrency from victims’ accounts at exchanges. They obtained access to the accounts by gaining control of the victims’ phone numbers through SIM swapping. In 2022, Seemungal and his co-conspirators devised the home invasion scheme and recruited St Felix and others to assist with the invasions. St Felix later became the leader of the home invasion crew. In September 2022, St Felix and members of the crew committed violent home invasions in Delray Beach and Homestead, Florida. In Delray Beach, the victims were held at gunpoint in their home. In Homestead, a man and his family were held at gunpoint in their home, and then the man was abducted, held hostage, and beaten, before the man was found by law enforcement 120 miles from his home.

    Later in 2022, St Felix and his crew targeted a Little Elm, Texas, man and made several trips to attempt the robbery. In December 2022, Seemungal and a Houston-based crew comprised of Deangelo Lee Contreras, 21, Tristian Rene Gamez, 21, Victor Gonzalez, 27, Jesus Salazar, 24, Cristian Valdez, 21, and Jesus Gerardo Valdez, Jr., 27, all of Houston, Texas, committed the home invasion. The Little Elm man and members of his family were held at gunpoint and restrained in their home for over three hours, during which time members of the crew tortured the man and his mother. The perpetrators stole approximately $150,000.00 in cash, two Rolex watches, and a valuable necklace and pendant.

    In April 2023, St Felix and Elmer Ruben Castro, 23, of West Palm Beach, invaded the home of a wife and a husband in Durham, North Carolina. Prior to the invasion, St Felix’s co-conspirators obtained unauthorized access to the couple’s email account and conducted multiple days of surveillance on their home. During the invasion, the men violently assaulted the couple, threatened them with guns, and restrained them with plastic cable ties. They forced the man to provide access to his computer and cryptocurrency exchange account. Seemungal then remotely accessed the computer and stole over $150,000.00 worth of cryptocurrency. Conspirators laundered the funds through anonymity-enhanced cryptocurrencies, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks.

    In July 2023, St Felix traveled from Florida to Long Island, New York, to commit a home invasion of a family of five. Before St Felix could do so, however, he was arrested. At the time of his arrest, St Felix was in possession of two firearms and plastic cable ties.

    Throughout the conspiracy, the conspirators communicated via an encrypted messaging application to plan their crimes. They identified targets and discussed how to gain entry to homes, the tools required to carry out the crimes, the technical aspects of cryptocurrency, and the patterns of life of their targets.

    They also circulated pictures of their targets and their targets’ homes. In addition to the home invasions described above, conspirators used the encrypted messaging application to plan additional home invasion robberies in Fort Lauderdale, Florida; Orlando, Florida; and Georgia. Seemungal and the foreign co-conspirators financed the purchase of rental cars, hotel rooms, and firearms by co-conspirators Haisel Daily, 22, of West Palm Beach, and Ruben Matias Nicolopulos Silva, 22, of Lake Worth, Florida, to use during the robberies.

    Seemungal was also sentenced yesterday to 20 years in prison followed by five years of supervised release and ordered to pay $4,038,479.39 in restitution. Seemungal pleaded guilty on December 19, 2023, for his role in the scheme to steal cryptocurrency by hacking victims’ cryptocurrency accounts as well as the home invasion and robbery scheme.

    On Feb. 6, Castro pleaded guilty to conspiracy to commit kidnapping and kidnapping. He is scheduled to be sentenced on Oct. 1.

    On May 29 and 30, nine of St Felix’s and Seemungal’s co-conspirators pleaded guilty to conspiracy to commit kidnapping, and were sentenced as follows:

    • Jose Alfredo Avila, 27, of West Palm Beach, was sentenced on Sept. 11, to 20 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
    • Contreras was sentenced on Sept. 5, to 15 years in prison, followed by five years of supervised release and ordered to pay $355,800.00 in restitution.
    • Daily was sentenced on Sept. 5, to 25 years in prison, followed by four years of supervised release and ordered to pay $524,153.39 in restitution.
    • Gonzalez was sentenced on Sept. 6, to 12 years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.
    • Nathan Noel Quintana, 24, of Royal Palm Beach, Florida, was sentenced on Sept. 6, to 16 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
    • Silva was sentenced on Sept. 5, to 12 years in prison, followed by five years of supervised release and ordered to pay $524,153.39 in restitution.
    • Cristian Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
    • Jesus Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
    • Jesus Manuel Santiago, III, 23, of West Palm Beach, is scheduled to be sentenced on Oct. 1.

    Also, on May 29 and 30, Salazar and Gamez pleaded guilty to conspiracy to interfere with commerce through robbery. Salazar was sentenced on Sept. 5, to five years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution. Gamez was sentenced on Sept. 11, to eight years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.

    The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices.

    The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case. The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.

    NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Ohio Man Sentenced to Prison for Dogfighting and Drug Distribution

    Source: US FBI

    An Ohio man was sentenced today to 21 months in prison and three years supervised release after pleading guilty to dogfighting and fentanyl distribution. For today’s sentence, he will serve nine months concurrent with, and 12 months after, the 10 years he is already serving on the drug charges.

    Michael Valentine, 40, of Bidwell, previously pleaded guilty to two counts of raising and training dogs for the purpose of fighting, and five counts related to fentanyl distribution. He was sentenced on Jan. 26, 2023, to serve 10 years in prison for the drug distribution charge and five years of supervised release. In total, Valentine will serve 11 years in prison followed by five years of supervised release.

    “Dogfighting is a barbaric offense that cruelly harms animals and endangers the surrounding community,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s sentencing demonstrates that those engaged in this horrific practice face significant punishment.”

    “Valentine’s crimes endangered both humans and dogs,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Thanks to the work of our investigative partners, hundreds of grams of fentanyl were taken out of circulation before reaching our local communities and more than 50 dogs were removed from the defendant. It is appropriate that Valentine will spend a significant amount of time in federal prison.”

    “The relevant provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity including drug trafficking and illegal possession of firearms,” said Acting Special Agent in Charge Robert J. Springer of the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG). “The USDA-OIG thanks the Justice Department, who prosecuted the case, and Gallia County Sheriff’s Office and the FBI for their assistance with the investigation.”

    According to court documents, law enforcement first investigated Valentine for dogfighting offenses in 2019 after a dog attacked a small child living with him. That investigation led to a search warrant of the Valentine’s residence and the seizure of 40 dogs. The search also recovered numerous items of dog fighting paraphernalia, including treadmills, veterinary supplies and dogfighting videos.

    On March 8, 2022, a second search warrant was executed at the Valentine’s residence as part of a fentanyl-distribution investigation. That search revealed dog fighting paraphernalia, as well as two assault-style rifles. In addition, a search of a nearby parcel of land revealed 677 grams of fentanyl and 69 grams of cocaine packaged for distribution, and an additional 11 dogs, which Valentine was keeping for purposes of dogfighting. Valentine had previously sold 141 grams of fentanyl from the property.

    The case was investigated by USDA-OIG and the FBI with assistance from the Gallia County Sherriff’s Office.

    This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

    Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting the case.

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  • MIL-OSI Security: Jury Finds Former Deportation Officer Guilty of Federal Crimes Related to Depriving Immigrant Victims’ Civil Rights

    Source: US FBI

    CINCINNATI — A federal jury convicted a former ICE deportation officer today for crimes related to abusing his position to deprive the civil rights of victims under his supervision in the Alternatives to Detention (ATD) program.

    Andrew Golobic, 52, of Cincinnati and Mason, Ohio, was found guilty on four counts including obstructing a sex trafficking investigation, deprivation of rights under color of law, witness tampering and destruction of records in a federal investigation.

    The verdict was announced this evening following a trial that began on Jan. 8 before Senior U.S. District Judge Michael R. Barrett. The jury began deliberations on Jan. 19 and found Golobic guilty on four of seven counts.

    Golobic was convicted of depriving a woman under his supervision in the U.S. Immigrations and Customs Enforcement (ICE) Alternatives to Detention (ATD) program of her fundamental right to bodily integrity, by forcing her to engage in nonconsensual sex. ATD allows certain asylum seekers and other immigrants who ICE has determined pose a low risk to public safety to remain in their communities while their immigration cases are pending. After being approached by agents from FBI and the Department of Homeland Security Office of the Inspector General in June 2020, Golobic deleted evidence from his cellphones. 

    Golobic was employed as a deportation officer with ICE from 2006 to 2020 and was assigned to the ICE office in Blue Ash, Ohio. He was assigned to the ATD program from approximately 2015 to 2020.

    In his role, Golobic supervised immigrants with vulnerable backgrounds including those fleeing violence, exploitation, and sexual assault. Golobic knew he had power over women under his supervision. Golobic had discretion over the degree of freedom and movement afforded to participants under his supervision. He had the authority to decide the type of monitoring, frequency of reporting and level of supervision, as well as the authority to recommend that ATD participants who violated conditions of the program be detained or deported. 

    Golobic’s sentence will be determined by the Court based on federal sentencing guidelines and other factors at a future hearing.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and John R. Pias, Special Agent in Charge, Department of Homeland Security Office of the Inspector General (DHS-OIG) announced the verdict. Assistant United States Attorneys Ebunoluwa A. Taiwo and Ashley N. Brucato are representing the United States in this case.

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  • MIL-OSI Security: Two Columbus Police Officers Arrested on Drug Charges Related to Stealing, Selling Multiple Kilograms of Cocaine

    Source: US FBI

    COLUMBUS, Ohio – Two Columbus police officers have been arrested on federal charges alleging they stole multiple kilograms of cocaine and provided it to others to sell.

    John Castillo, 31, of Grove City, and Joel M. Mefford, 34, of London, Ohio, were arrested today and appeared in federal court this afternoon, at which point their cases were unsealed.

    According to Mefford’s indictment, in February 2020, he was investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. It is alleged Mefford, without a warrant, discovered two kilograms of cocaine in the rafters of the garage. Mefford allegedly unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The defendant allegedly gave the stolen narcotics to an individual to sell.

    Similarly, in February and March 2020, Mefford was investigating drug-trafficking activity at houses on Ambleside Drive and Kilbourne Avenue in Columbus. On March 7, 2020, the officer allegedly took a bag containing multiple kilograms of cocaine from the house on Ambleside Drive and arrested an individual there. He then allegedly traveled to the house on Kilbourne Avenue and removed a kilogram of cocaine. That same day, it is alleged Mefford turned in one kilogram of cocaine to evidence and stole the other kilograms to be sold.

    It is further alleged that Mefford stole 20 kilograms of cocaine from the Columbus police property room in April 2020, replacing it with fake cocaine.

    Mefford also allegedly deposited more than $72,000 in cash derived from the cocaine sales into his personal bank account.

    Castillo’s indictment alleges that in February 2021, Castillo took approximately 10 kilograms of cocaine from a house on North Everett Avenue and did not turn it into evidence. He allegedly planted two additional kilograms of cocaine for law enforcement discovery later that day at the house. The 10 kilograms of cocaine were allegedly stored in another person’s basement before they were given to another individual to sell.

    Castillo and Mefford are charged in separate indictments with possessing with intent to distribute five kilograms or more of cocaine, a federal crime punishable by at least 10 years and up to life in prison. Mefford is also charged with money laundering and two counts of possessing with intent to distribute 500 grams or more of cocaine.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Zrinka Dilber, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the charges. Assistant United States Attorney Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case. The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigations, the Ohio Auditor of State’s Office and the Columbus Division of Police.

    An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

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  • MIL-OSI Security: Columbus Woman Pleads Guilty to Kidnapping Infant Twins

    Source: US FBI

    COLUMBUS, Ohio – A Columbus woman pleaded guilty in U.S. District Court today to two counts of kidnapping a minor.

    As part of the plea, parties involved in the case have recommended a sentence of 20 years in prison for Nalah T. Jackson, 25.

    “There is no greater responsibility than protecting our youth,” said U.S. Attorney Kenneth L. Parker. “This community watched in horror as Nalah Jackson preyed on two vulnerable babies. Today, she admitted her crime and agreed to spend 20 years in prison for her actions.” 

    According to court documents, between Dec. 19, 2022, and Dec. 22, 2022, Jackson kidnapped two minor children in Columbus and traveled interstate with one of them. 

    Specifically, close to 10pm on the night of Dec. 19, Jackson walked out of Donatos Pizza on North High Street in Columbus and drove away in a black Honda Accord that had been left running in the parking lot. Two twin five-month-old infants were buckled in the back seat. The infants’ mother was inside Donatos to pick up a delivery order at the time.

    Over the next several hours, Jackson drove from Columbus to Dayton and to various other locations in central and western Ohio.

    Jackson arrived at the Dayton International Airport close to 3am. She parked in an economy lot and left the infants in the car while she entered the airport. Jackson attempted to hire an Uber to find the stolen car in the economy lot, but could not pay, and ultimately found the stolen car on foot. After finding the vehicle, Jackson left one of the infants in the parking lot at approximately 4am. A passerby parking their vehicle saw the baby in his car seat wrapped in a quilt between two vehicles and alerted security.

    After Jackson left the Dayton International Airport parking lot at high speeds, she traveled to Indianapolis with the second baby still in the vehicle.

    She arrived at a Papa Johns Pizza on Indiana Avenue near the university district at approximately 8am on Dec. 20, and exited the stolen car on foot. She never returned to the vehicle, leaving the second baby strapped in his car seat in the back seat of the car.

    The baby remained strapped in the car seat for the next two-and-a-half-days while family members, concerned citizens and law enforcement officers continued to search for him.

    By happenstance, an Indianapolis woman encountered Jackson after she abandoned the stolen vehicle on Dec. 20. Jackson was selling stolen merchandise outside of a local gas station. The woman gave Jackson a ride to a nearby shopping plaza and gave Jackson her cell phone number in case Jackson came across any more holiday gifts for resale.

    That night, the woman noticed several social media posts regarding the kidnapping and recognized Jackson as the alleged kidnapper. The woman called her cousin, and together they formulated a plan to meet up with Jackson to confirm her identity, recover the infant if possible and lead Jackson to law enforcement.

    On Dec. 22, the women met up with Jackson, whom they traced to a local residence through a phone number Jackson had previously used to call one of them. The women confirmed that Jackson was the same person identified as the kidnapping suspect and drove her to several shopping centers in Indianapolis, all-the-while surreptitiously attempting to contact law enforcement in Columbus and Indianapolis.

    Eventually, one of the women was able to route local law enforcement to their vehicle over the phone by pretending that she was speaking with her boyfriend and providing updates on her location. The women tried to signal to Indianapolis police that Jackson was the kidnapping suspect, and eventually told officers when they were removed from Jackson’s immediate presence.  Jackson provided a false name and another individual’s identification card to the officers. After some time, the officers confirmed Jackson’s identity and arrested her for kidnapping. After the arrest, they let the two women go without interviewing them about their time spent with Jackson.

    The two women decided to continue searching for the missing infant. They discovered a bus schedule that Jackson left behind in the backseat of their vehicle and decided to focus their search on a bus route near the university district.

    While driving around searching that area to no avail, and with driving conditions worsening quickly due to an impending snowstorm, the women decided to get something to eat before heading home. As they were pulling into a Blaze Pizza, they noticed a black Honda Accord at the nearby Papa Johns and noticed snow had already accumulated on the car.

    They drove up to the stolen car and attempted to open the back door, which was locked. The driver’s door did open. Due to an overwhelming foul smell coming from the car, and the silence of the baby, one of the women screamed, assuming the baby was deceased. Upon hearing the scream, the baby alerted and began crying. One of the women removed the baby from his car seat and began comforting him.

    The women then noticed an empty Indianapolis police cruiser parked nearby and began looking for officers, who they found on their lunch break inside the Blaze Pizza. Indianapolis police then relocated to Papa Johns Pizza and took custody of the baby, taking him to a local hospital. The infant was treated for dehydration, heart abnormalities due to the dehydration, extreme diaper rash and skin deterioration due to him being buckled in a car seat for three days while sitting in his own excrement.

    U.S. Attorney Parker acknowledged the numerous law enforcement agencies who have assisted in this case, including FBI offices in Columbus, Dayton and Indianapolis; the Columbus, Dayton, Huber Heights, Riverside, Vandalia, Dayton International Airport and Indianapolis police departments; the Montgomery County Sheriff’s Office; Ohio State Highway Patrol and U.S. Marshals Service’s Southern Ohio Fugitive Apprehension Strike Team (SOFAST).

    Assistant United States Attorneys Emily K. Czerniejewski and Noah R. Litton are representing the United States in this case.

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  • MIL-OSI Security: Ohio Man Pleads Guilty to Multiple Federal Charges, Including a Freedom of Access to Clinic Entrances (FACE) Act Violation, for Threatening a Reproductive Health Services Clinic

    Source: US FBI

    An Ohio man pleaded guilty today to a misdemeanor charge under the Freedom of Access to Clinic Entrances (FACE) Act, which prohibits a person from intentionally interfering with or intimidating any person because that person is providing reproductive health services. Mohamed Waes, 33, of Columbus, also pleaded guilty to felony charges of communicating interstate threats and conspiracy to commit money laundering.

    According to court documents and statements made in court, on July 5, 2022, Waes intentionally interfered with and intimidated employees of Planned Parenthood of Greater Ohio by threatening over the phone to burn down their building because they were providing reproductive health services.

    “Threatening to burn down facilities that provide reproductive health services is not just unlawful, it’s conduct that frightens and obstructs patients and providers of reproductive services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing the FACE Act to protect all patients who seek reproductive health services and to protect all staff and facilities that provide these services.”

    “We will hold accountable individuals who make threats of force against health service providers and institutions,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “At the U.S. Attorney’s Office, we will do our part in charging those who break federal laws. As a society, we must handle our disagreements in a more civil way than threats of violence and intimidation.”

    “Mohamed Waes made a credible threat to commit violence and harm others,” said Acting Special Agent in Charge Cheryl Mimura of the FBI Cincinnati Field Office. “The FBI will continue to aggressively pursue civil rights violations and work with our partners to keep the community safe.”

    “Waes played a crucial role in a business email compromise scheme by attempting to launder nearly $2 million in fraud proceeds,” said Acting Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation (IRS:CI) Cincinnati Field Office. “IRS:CI remains committed to following the money and bringing those who launder illegal proceeds to justice.”

    According to court documents, Waes also conspired with others from on or about March 21, 2019, through on or about March 4, 2020, to launder funds using business email compromise (BEC) fraud schemes. As part of this conspiracy, scammers created fake email domains which mimicked legitimate email domains and then sent emails to various companies impersonating vendors and asking that payments be made on actual invoices to bank accounts controlled by Waes and others. Waes attempted to launder a total of $1,972,792.84 in BEC proceeds, of which he successfully laundered $273,982.08.

    A sentencing hearing will be set at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Cincinnati Field Office and IRS:CI investigated the case.

    Assistant U.S. Attorneys Jennifer Rausch and Peter Glenn-Applegate for the Southern District of Ohio and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.

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  • MIL-OSI Security: Former Employee of Eye for Change Youth and Family Services Sentenced to Prison for Fraudulent Medicaid Billing Practices

    Source: US FBI

    CLEVELAND – Eric King, 35, of Cleveland, Ohio, was sentenced today to 36 months in prison by U.S. District Judge Pamela A. Barker, U.S. Attorney Rebecca C. Lutzko announced today. King was also sentenced to 3 years of supervised release, $1,800 in special assessments, and restitution of $483,165.38.

    King, a former employee of Eye For Change Youth and Family Services, Inc., a non-profit corporation in Cleveland, was previously found guilty after a jury trial of 13 counts of health care fraud, one count of false statement relating to health care matters, and five counts of aggravated identity theft.

    According to court documents, trial testimony, and today’s sentencing hearing, from June 2018 through May 2021, King defrauded Medicaid by causing Medicaid to be billed for services not actually performed or for services that were not actually performed for the amount of time the billing codes reflected; for falsifying progress notes into Medicaid beneficiary electronic records; for creating false progress notes; and for using the identities of clients without authorization to bill Medicaid. As a result of King’s conduct, Medicaid paid over $483,000 for fraudulent billings.

    The investigation preceding the indictment was conducted by the Cleveland Division of the FBI, the Department of Health and Human Services — Office of the Inspector General and the Ohio Attorney General’s Healthcare Fraud Section. This case was prosecuted by Assistant U.S. Attorneys Edward D. Brydle and Brian M. McDonough, and Special Assistant U.S. Attorney Jonathan L. Metzler.

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  • MIL-OSI Security: Cleveland Area Brothers Indicted for Fraud and Money Laundering Schemes

    Source: US FBI

    CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio announced today that a federal grand jury sitting in Cleveland returned a twenty-two count indictment charging two Cleveland area brothers with multiple fraud and money laundering schemes.

    Zubair Mehmet Abdur Razzaq Al Zubair, 41, recently of Bratenahl, Ohio, and his brother Muzzammil Muhammad Al Zubair, 30, recently of Pepper Pike, Ohio, face one count of conspiracy to commit wire fraud, 14 counts of wire fraud, one count of conspiracy to engage in money laundering, four counts of money laundering, and one count of theft of government funds. Zubair Al Zubair also faces one count of harboring a fugitive.

    The indictment charges that from June 2020 through August 2023, the Al Zubair brothers engaged in multiple schemes, including an investment fraud scheme, a Small Business Administration COVID-19 relief Emergency Income Disaster Loan scheme, a cryptocurrency mining scheme, a commercial real estate lease scheme, and a residential real estate lease scheme. According to the facts alleged in the indictment, the Al Zubair brothers obtained funds and property from victims under false pretenses and spent the proceeds on luxury items, such as cars, travel, entertainment, firearms, and jewelry. They allegedly falsely claimed to have extraordinary wealth and government connections. Zubair Al Zubair also allegedly falsely claimed to be married to a princess and to be a member of a royal family in the United Arab Emirates. The defendants also allegedly made false claims about potential investments returns, about property they owned or controlled, and about their intentions, among other falsehoods alleged in the indictment. Through these false claims, the Al Zubair brothers allegedly obtained millions of dollars from their victims. In addition to the fraud and money laundering charges, Zubair Al Zubair is also charged with providing a place to stay and transportation to a fugitive wanted on federal criminal charges.

    An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

    If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

    The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew W. Shepherd.

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  • MIL-OSI Security: FBI Cleveland Shares Recap and Highlights From FY 2023

    Source: US FBI

    Drug and Weapons Trafficking, Crime, and Fraud Continue to be a Problem Across Northern Ohio

    CLEVELAND, OH—FBI Cleveland and its eight Resident Agencies closed out a busy fiscal year facing a myriad of growing and evolving threats across the 40 northern-most counties of Ohio. FBI Cleveland covers the 40 northern-most counties in the State of Ohio.

    “The trends we are seeing are not unique to the big cities in America, whether it’s violent crime, threats of terrorism, cybercrime, or drugs, guns, or human trafficking. From smallest and most rural towns to the larger and more populous cities, criminal enterprises are here, and operating in the backyard of all our communities,” said FBI Cleveland Special Agent in Charge Greg Nelsen.

    In fiscal year 2023, the division noted the following accomplishments:

    • Over 600 drug seizures.
    • Nearly 500 weapons recovered.
    • Over 400 arrests and indictments, each.
    • Nearly 400 convictions.
    • Just over 400 sentencings.
    • Over 15 children identified.
    • Just under 20 children located.

    The division conducted over 115 disruptions, which is an operation in which we can articulate the routine operation of a criminal street gang (CSG) or group of criminals working together that was disrupted by an action or set of arrests conducted.

    Additionally, the division recorded 15 dismantles, which are a set of operations or close of an investigation in which the FBI can articulate complete dismantlement of a CSG or group. Disruptions and Dismantlement’s must be approved by FBI headquarters.

    A few of the highlights from the year include the arrest of 31 individuals of a drug trafficking organization in Marion, Ohio in June 2023. Arrest warrants led to the discoveries of 3 kilograms of fentanyl, 2 kilograms of cocaine, more than a kilogram of meth, 15 firearms and more than $25,000 in cash. That is enough fentanyl to kill every person in Columbus, Cincinnati, and Cleveland.

    Additionally, the sentencing of Discovery Tours CEO Joseph Cipolletti who embezzled over $550,000 and $1.5 million from his family’s student travel company for his personal use, bilking schools, students, and their families of destination field trips to Washington D.C.

    Finally, the sentencing of a 37-year-old Massillon man sentenced to 30 Years in prison and lifetime supervision for kidnapping a 5-Year-Old child and possession of child pornography.

    “Our focus is unwavering; to protect the American public and uphold the U.S. Constitution. The nearly 300 special agents and professional staff of the division work tirelessly every day of the year; the FBI doesn’t close. We all want the same thing – to feel safe in our homes, at work or school, in our community, and, to build a brighter future for the next generation, Nelsen added.”

    FBI Cleveland is headquartered in downtown Cleveland with Resident Agencies in Painesville, Youngstown, Akron, Canton, Mansfield, Lima, Toledo, and Sandusky. To report a federal violation of law to the FBI Cleveland, or to any FBI field office, call 1-800-CALL-FBI or tips.fbi.gov.

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  • MIL-OSI Security: Northern Ohio Man Sentenced to Prison for Coercion and Enticement of a Minor and Transportation of a Minor Across State Lines for Sexual Activity

    Source: US FBI

    TOLEDO – Jeffrey Deitsch, 36, of St. Marys and later Spencerville, Ohio, was sentenced on February 1, 2024, to 210 months in prison by U.S. District Judge Jeffrey J. Helmick, after he pleaded guilty to coercion and enticement of a minor and transportation of a minor across state lines for illicit sexual activity. Deitsch was also sentenced to 25 years of supervised release after he serves his prison term and ordered to pay a $200 special assessment and an additional assessment of $5,000 under the Justice for Victims of Trafficking Act.

    According to court documents, Deitsch met a 15-year-old Illinois girl online, drove from Ohio to Illinois less than a week later, and transported her back to Ohio where he engaged in illicit sexual activity with her. On June 25, 2020, Allen County Sheriff’s Deputies were dispatched to a hotel in Lima after receiving a report that the Illinois runaway was staying there with Deitsch, who was more than twice her age. Sheriff’s Deputies located the victim who later advised that Deitsch had told her to tell anyone who asked that she was 18. Deitsch admitted to law enforcement that he knew the victim’s age before transporting her and engaging in the sex acts.

    Deitsch had just been released from state prison the month before, after having served a prison term for abduction of a different female.

    The investigation was conducted by the Federal Bureau of Investigation in Lima, Ohio. This case was prosecuted by Assistant U.S. Attorneys, Tracey Tangeman and Angelita Cruz Bridges.

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  • MIL-OSI Security: Huron Man Charged With More Than $2.5 Million in COVID-19 Relief Fraud

    Source: US FBI

    TOLEDO – A federal grand jury in Toledo returned an indictment on February 7, 2024, charging Daniel R. Hitlan, of Huron, Ohio, with three counts of bank fraud and five counts of money laundering related to filing false applications for Paycheck Protection Program loans.

    The indictment charges that between April 14, 2020 and May 13, 2020, Hitlan submitted three false PPP loan applications and received funding totaling $2,578,318.  Hitlan applied for the loans using two businesses that he owned: Sailor Sales, LLC and Daniel Robert Hitlan.  Hitlan applied for the loans at three separate banks.  In each instance, he falsely stated the number of employees for the businesses and claimed to have payroll expenses when in fact the businesses had no payroll expenses.  Hitlan supported the PPP loan applications by creating and submitting fictitious payroll documents and payroll forms with his application. 

    It is further alleged that Hitlan used the proceeds to conduct several financial transactions to include a check for $88,811.27 for the purchase of a 2020 Cadillac Escalade, another check for $48,232.63 for the purchase of a 1968 Chevrolet Corvette, two wires for the purchase of real estate in the amounts of $179,013.97 and $248,423.89, and a debit card transaction for $20,000 to a jeweler for the purchase of Rolex watches. 

    An indictment is only a charge and not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

    If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum.

    The investigation was conducted by IRS–Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gene Crawford.

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  • MIL-OSI Security: Coordinated action to take down the most dangerous malware variants

    Source: Eurojust

    This week’s actions follow the largest ever operation against botnets from May 2024, Operation Endgame. This year during Endgame 2.0, the measures targeted the successor groups of malware taken down by the authorities and other relevant variants: Bumblebee, Lactrodectus, Qakbot, DanaBot, HijackLoader, Trickbot, and WarmCookie. As these variants are at the beginning of the cyberattack chain, disrupting them damages the entire ‘cybercrime as a service’ ecosystem. 

    The malware taken down this week is known as ‘initial access malware’. It is used for initial infection, helping cybercriminals to enter victims’ systems unnoticed and load more malware onto their devices, such as ransomware. 

    Due to the global nature of cybercrime, cross-border investigations are key for taking action against disruptive cybercrimes. Since 2024, Eurojust has provided essential support to ensure effective judicial cooperation. Coordination by Eurojust ensured that authorities could exchange information and align their investigative efforts. Europol supported the operation from the outset, providing coordination, operational and analytical support, cryptocurrency tracing, and facilitating the real-time exchange of information between the various partners involved.

    ©BKA, Germany, 2024.

    German, French, Dutch, Danish, British, American and Canadian authorities joined forces from 19 to 22 May to take action against the world’s most dangerous malware variants and the perpetrators behind them. In total 37 suspects were identified and international arrest warrants were obtained against 20 individuals criminally charged. Over 300 servers worldwide were taken down and 650 domains were neutralised. During the action week, EUR 3.5 million in cryptocurrency was seized making the total cryptocurrency seized during Endgame EUR 21.2 million. 

    Operation EndGame will now continue with follow up actions announced on the dedicated website from the international coalition. Several key suspects behind the malware operations are now subject to international and public appeals. The German authorities will publish eighteen of them on the EU Most Wanted list as of 23 May.

    The following authorities carried out the operation:

    • Germany: German Federal Criminal Police Office; Public Prosecutor; General’s Office Frankfurt am Main – Cybercrime Office; German Federal Office for Information Security
    • France: PPO Paris section J3 (Cybercrime Unit); BL2C (Cybercrime unit Préfecture de Police); OFAC (National Office against Cybercriminality)
    • Netherlands: Netherlands Public Prosecution Service (National Office); Netherlands Police
    • Denmark: National Special Crime Unit – NSK; NC3 | High Tech Crime
    • United Kingdom: National Crime Agency
    • United States: Federal Bureau of Investigation (FBI); U.S Department of Justice’s Computer Crime and Intellectual Property Section; U.S. Attorney’s Office for the Central District of California
    • Canada: Royal Canadian Mounted Police (RCMP)

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