NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Kern County Man Sentenced for Distributing Explosives

    Source: US FBI

    FRESNO, Calif. — Joseph Roy Vigneault, 21, of Lake Isabella, was sentenced today to 18 months in prison for distributing explosives to a non‑licensed person, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, in May 2023, Vigneault and his co-defendant, Michael Roy Anglin, 22, of Wofford Heights, sold and delivered six full boxes and one partial box of Hydromite 880 weighing approximately 350 pounds to a non-licensed person. Vigneault knew or had reason to believe that the Hydromite 880 had been stolen. The boxes containing the explosives were labeled “Explosive, Blasting, Type E” and “Blasting Agent.” The sticks of Hydromite 880 were also individually labeled “Danger” and “Explosive.” Hydromite 880 is one and a half times more powerful than dynamite. Austin Powder West LLC, a licensed explosive distributor, confirmed that 295 sticks of Hydromite 880 went missing from its Lake Isabella storage facility sometime between May 6 and May 11, 2023. The missing explosives included the boxes that Vigneault sold. The value of the unrecovered explosives is $7,603. Vigneault agreed to make restitution to Austin Powder in that amount.

    Anglin has pleaded guilty and is scheduled for sentencing on Oct. 21, 2024. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Kern County Woman Pleads Guilty to Six-Year, $825,000 Credit Card Fraud Scheme

    Source: US FBI

    FRESNO, Calif. — Karina Arceo, 34, of Wasco, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft charges for her role in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.

    According to court records, from February 2016 through August 2022, Arceo and her partner and co-defendant, Miguel Leyva, stole the personally identifiable information (PII) for over 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked. Leyva previously pleaded guilty and was sentenced to five years and five months in prison.

    Arceo and Leyva used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities. They used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so that any communications related to the credit cards would go to them instead of the victims. They then made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Kern County and elsewhere. The fraudulent purchases included home appliances, automobile accessories, designer clothing, tickets to concerts and sporting events, and travel, among other items.

    Arceo and Leyva often resold the items that they fraudulently purchased for cash and reaped a windfall because they did not actually pay for the items. They also used checks that had been stolen from companies in Kern County to access the companies’ bank accounts and make fraudulent payments towards the credit cards so as to keep their scheme going. Altogether, their scheme caused a total actual loss of more than $825,000.

    This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Arelis Clemente are prosecuting the case.

    Arceo is scheduled to be sentenced on Nov. 6, 2024. She faces a maximum penalty of 30 years in prison and $250,000 fine for the conspiracy charge, and a mandatory two years in prison, consecutive to other counts, for the identity theft charge. Any sentence, however, would be determined at the discretion of the court after consideration of the applicable statutory factors and Federal Sentencing Guidelines, which take into account a number of variables.

    MIL Security OSI –

  • MIL-OSI Security: Fresno Resident Pleads Guilty to Distributing Methamphetamine

    Source: US FBI

    FRESNO, Calif. — Dario Mata-Manzo, 32, of Fresno, pleaded guilty today to distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, in June 2022, Mata-Manzo negotiated for the sale of crystal methamphetamine for $1,200 per pound and subsequently delivered 8 pounds of the drug to undercover officers in Fresno.

    This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Fresno County Sheriff’s Office and High Impact Investigation Team (HIIT), a High Intensity Drug Trafficking Area Initiative (HIDTA), which consists of personnel from the California Department of Justice, the Fresno Police Department, the Fresno County Sheriff’s Office, the Fresno County District Attorney’s Office, the California Highway Patrol, the Madera County Sheriff’s Office, the Tulare County Sheriff’s Office, the Kings County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

    Mata-Manzo is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Nov. 20, 2024. Mata-Manzo faces a maximum statutory penalty of life in prison, a mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI Security: Kern County Man Sentenced to 12 Years in Prison for Receiving and Distributing Child Pornography

    Source: US FBI

    FRESNO, Calif. — Marcus Tatum, 32, of Bakersfield, was sentenced today to 12 years and five months in prison, to be followed by 10 years of supervised release, and ordered to pay $45,000 in restitution, for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, between February 2012 and March 2018, Tatum used a laptop computer to knowingly receive and distribute over 600 files containing visual depictions of children engaging in sexually explicit conduct. The files contained images of children under the age of 12 engaging in sexually explicit conduct, as well as engaging in sado-masochistic conduct.

    This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI Security: FBI San Diego Seeking Nominations for 2024 Citizens Academy

    Source: US FBI

    The FBI San Diego Field Office invites community members to experience a behind-the-scenes look at how the Federal Bureau of Investigation investigates crimes and national security threats to our community by applying to the 2024 FBI San Diego Citizens Academy.

    The mission of the FBI Citizens Academy is to foster a greater understanding of the role of federal law enforcement in the community through frank discussion and education.

    Classes for the program will be held Tuesday evenings from 5:00 p.m. to 9:00 p.m. March 5, 2024, to April 22, 2024. During the eight-week academy, students gain insight into the structure and operation of FBI field offices and resident agencies and learn about the services the FBI provides to local and state law enforcement agencies.

    Attendees represent a diverse blend of multiple business sectors, community, academic, and religious leaders who are essential to developing an ambassador group for the field office to represent in the community we serve and live within.

    Nominations for the 2024 class may be submitted by past and/or present FBI employees, Citizens Academy graduates, or any individual wishing to nominate themselves. The deadline for nominations is November 13, 2023. Please visit fbi.gov/sandiego for more information about the Citizen’s Academy and the nomination process. Questions about the Citizens Academy should be sent to FBI San Diego’s Community Outreach team at SD_Outreach@fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Imperial County Dentist and Former Office Manager Plead Guilty in Multimillion-Dollar Medicare Fraud

    Source: US FBI

    SAN DIEGO – Dr. Javad Aghaloo, an Imperial County dentist, and Theresa Flores, his office manager, pleaded guilty in federal court yesterday, admitting that they conspired to defraud Medicare and cover it up. 

    Aghaloo entered a guilty plea to conspiring to commit health care fraud by billing Medicare for procedures that were not covered, not performed, or otherwise not necessary. As part of his plea, Aghaloo agreed to forfeit more than $1 million in property and pay restitution to Medicare in the amount of $8,476,466.23.  Flores entered a guilty plea to obstructing a Medicare audit.

    According to court records, Aghaloo and others recruited Medicare beneficiaries to get dental work done at one of Aghaloo’s offices. To recruit Medicare patients, Aghaloo and Flores marketed dental services to individuals in Imperial County as being covered by Medicare. Aghaloo and Flores knew this was untrue since Medicare does not cover dental services.

    Once a Medicare beneficiary was in one of Aghaloo’s offices, Aghaloo and others performed some type of procedure (usually a tooth extraction) and submitted false claims to Medicare using the person’s Medicare beneficiary number. Since tooth extractions are not covered by Medicare, Aghaloo’s offices instead submitted false claims for procedures like bone grafts that were never performed. 

    Between March 1, 2016, and October 18, 2018, Aghaloo and Flores caused Aghaloo’s dental offices to submit over 7,000 false claims to Medicare, totaling over $18 million for which Aghaloo’s offices were paid $8,476,466.23 by Medicare. 

    To conceal the fraud, between April of 2017 and October of 2018, Flores and Rosas caused false documents to be submitted to Noridian Healthcare Solutions, LLC. (“NHS”), a Federal auditor for the Medicare program.

    Sentencing is set for January 12, 2024, at 9:00 a.m. before U.S. District Judge Jinsook Ohta.

    This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander. 

    DEFENDANT                                               Case Number 23cr0616-JO                                     

    Javad Aghaloo                                                Age: 50                                   San Diego, CA

    Theresa Flores                                                 Age: 45                                   San Diego, CA

    SUMMARY OF CHARGES

    Conspiracy to Commit Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 371.

    Maximum Penalty:  Five years in prison and a fine of $250,000. 

    Obstructing a Federal Audit, a felony, in violation of Title 18, United States Code, Section 1516.

    Maximum Penalty:  Five years in prison and a fine of $250,000. 

    AGENCIES

    Federal Bureau of Investigation.

    U.S. Department of Health and Human Services, Office of Inspector General.

    MIL Security OSI –

  • MIL-OSI Security: Second Executive Admits Participating in $150 Million Fraud on Qualcomm

    Source: US FBI

    NEWS RELEASE SUMMARY – October 5, 2023

    SAN DIEGO – Ali Akbar Shokouhi, the primary investor of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today, admitting his role in a massive fraud.

    Shokouhi, a San Diego resident, pleaded guilty to one count of money laundering related to a transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Shokouhi admitted that he schemed with co-defendant Karim Arabi and others to hide both Arabi’s and Shokouhi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm. 

    Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm.  In that regard, Shokouhi admitted Arabi was intimately involved in Abreezio’s formation, development, and marketing to Qualcomm, including choosing the “Abreezio” name.  Shokouhi further admitted that he referred to Arabi by a different name in text messages with co-conspirators to obscure Arabi’s involvement in Abreezio.  According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in October 2015. 

    Like co-defendant Sanjiv Taneja, who recently pleaded guilty and admitted his own role in the fraud, Shokouhi acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Shokouhi knew.

    Shokouhi further admitted that he and Arabi concealed Shokouhi’s involvement in Abreezio in part because Shokouhi had previously been terminated from Qualcomm because of a conflict-of-interest violation.  As part of his plea agreement, Shokouhi agreed to forfeit over $16 million that he personally received from Qualcomm’s purchase of Abreezio, and to pay restitution.

    This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.

    DEFENDANTS                                 Case Number 22-CR-1152-BAS                                       

    Karim Arabi                                        Age: 57                                   San Diego, CA

    Sanjiv Taneja                                      Age: 60                                   Cupertino, CA

    Ali Akbar Shokouhi                            Age: 64                                   San Diego, CA

    AGENCIES

    Federal Bureau of Investigation

    Internal Revenue Services, Criminal Investigation

    United States Marshals Service

    *The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Former San Diego Police Officer and Three Others Sentenced for Crimes Stemming From Years-long Operation of Illicit Massage Businesses

    Source: US FBI

    NEWS RELEASE SUMMARY – October 13, 2023

    SAN DIEGO – Peter Griffin, a retired San Diego police vice detective, attorney, and private investigator, was sentenced in federal court today to 33 months in custody for his central role in a conspiracy to operate five California- and Arizona-based illicit massage businesses that profited for years by selling commercial sex under the guise of offering therapeutic massage services. 

    Griffin’s three co-defendants – Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott – who managed the illicit massage businesses in Griffin’s network and actively concealed the scheme from law enforcement, were each sentenced to six months in custody.

    According to court documents and admissions in plea agreements, the defendants owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022.  The criminal scheme included incorporating their businesses with state agencies, managing the businesses’ illicit proceeds, advertising commercial sexual services online, recruiting and employing women to perform commercial sex services in the businesses, and benefiting financially from the illegal enterprises. 

    The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to facilitate the illegal businesses. Griffin oversaw nearly every aspect of the illicit businesses, making himself indispensable to their operation, and assumed the role of “boss.” 

    Through the course of the scheme, the defendants exploited the victims, mostly vulnerable, non-English speaking immigrants from Korea and China with limited employment opportunities and financial resources; pressured and expected the employees to perform commercial sex services inside the businesses; and made substantial financial profits from the illegal commercial sexual activity. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.” 

    Griffin, who left the department in 2002, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit.  Throughout the nine-year criminal scheme, Griffin used the experience and skills he acquired through his work as a vice detective – skills honed by his education as an attorney and work as a private investigator – and his reputation as a former police officer to help the businesses evade law enforcement; conceal evidence; pressure employees to engage in commercial sex; maintain a façade of legitimacy; and thwart regulatory inspections, investigations, and any official action against the businesses. 

    According to his plea agreement, on several occasions, Griffin used his status as a former law enforcement officer to falsely assure local authorities that his businesses would be operated legitimately. On another occasion, Griffin flashed his badge to a local officer responding to a citizen complaint regarding one of his illicit businesses.  Additionally, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about working at the illicit massage business. Griffin’s co-defendants similarly informed employees of Griffin’s law enforcement background and his resulting “connections” and promised he would protect the illegal businesses from law enforcement detection. Griffin also abused resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.

    “Illicit massage businesses hide in plain sight in many communities in America, including our district,” said U.S. Attorney Tara K. McGrath.  “Operators of these businesses often profit through exploitation. For years, Peter Griffin used his connections as a former police officer for his own criminal profiteering. The U.S. Attorney’s Office is committed to prosecuting these kinds of offenses, protecting our communities, and ensuring that legitimate local businesses are not tarnished by criminal activity.”

    “No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”

    “Law enforcement professionals swear an oath to protect and defend our communities, and the spirit of that oath should live on even when we stop carrying a badge,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Griffin preyed on people who should have felt safer because of his presence. He and his co-conspirators failed in their attempts to conceal their illicit activities because of our special agents’ unique ability to follow the money and a strong cross-agency effort to find the evidence to bring these predators to justice.”

    “Peter Griffin abused and exploited vulnerable women by pressuring them into providing commercial sex for profit while taking advantage of his status in the community,” said Chad Plantz, special agent in charge for HSI San Diego. “This sentence sends a clear message to those who mistakenly believe they can get away with such repugnant crimes. HSI, in collaboration with our law enforcement partners, will continue to work vigorously to bring to justice those who exploit and victimize vulnerable members of our community.”

    This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.

    DEFENDANTS                                             Case Number 22cr1824-JO                              

    Peter Griffin                                                    79

    Kyung Sook Hernandez                                 59

    Yu Hong Tan                                                  57

    Yoo Jin Ott                                                     46

    SUMMARY OF CHARGES

    Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),

    Maximum Penalty: Five years in prison, $250,000 fine

    Conspiracy to Commit Wire Fraud

    Maximum Penalty: Thirty years in prison, $1 million fine

    Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity

    Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property

    Misprision of a Felony

    Maximum Penalty: Three years in prison, $250,000 fine

    AGENCIES

    Homeland Security Investigations

    Internal Revenue Service Criminal Investigation

    San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable.  The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. 

    U.S. Department of Justice, Money Laundering Asset Recovery Section, Special Financial Investigations Unit

    Federal Bureau of Investigation

    San Diego Police Department

    San Diego Sheriff’s Department

    Escondido Police Department

    San Diego County District Attorney’s Office

    Tempe, Arizona Police Department. 

    Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

    MIL Security OSI –

  • MIL-OSI Security: Former U.S. Navy Service Member Sentenced for $2 Million Insurance Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – October 17, 2023

    SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, was sentenced in federal court to 30 months in prison after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty.

    Toups’ sentence followed his guilty plea to conspiracy to commit wire fraud. According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to Traumatic Servicemembers Group Life Insurance Program, or TSGLI, and Toups personally obtained about $400,000. TSGLI was funded by service members and the Department of the Navy.

    Toups admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities.

    “Lying and stealing funds meant for injured service members is appalling,” said U.S. Attorney Tara McGrath. “The United States Attorney’s Office is committed to protecting those who serve, and this case is an excellent example of law enforcement collaboration to do just that.”

    “Fraudulently filing claims for unearned benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “This sentence holds the defendant accountable for his egregious actions, and the VA OIG will continue to work tirelessly with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”

    “Mr. Toups participated in a fraud scheme that defrauded the American taxpayer and diverted vital money, care, and resources from service members recovering from traumatic injuries,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This sentence demonstrates the commitment of NCIS and its partners to combatting fraud that harms the Department of the Navy and its warfighters.”

    “Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated. The FBI will continue to collaborate with our law enforcement partners to ensure those who commit such acts are held accountable.”

    According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy service members to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.

    Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and others conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.

    According to court records, Toups and his co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.

    DEFENDANT           18CR1674-JLS

    Christopher Toups      46        White, GA

    RELATED CASES

    Kelene Meyer                         18CR1674-JLS                       Jacksonville, FL

    Dr. Michael Villarroel            18CR1674-JLS                       Coronado, CA

    Paul Craig                               18CR1674-JLS                       Austin, TX

    Richard Cote                           18CR1674-JLS                       Oceanside, CA

    Earnest Thompson                  18CR1674-JLS                       Murrieta, CA

    Ronald Olmsted                      20CR0659-JLS                       Mobile, AL

    Anthony Coco                         20CR0197-JLS                       San Diego, CA

    Stephen Mulholland               20CR0052-JLS                       Panama City Beach, FL

    SUMMARY OF CHARGES

    Toups:

    18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    Others:

    18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 1343, Wire Fraud

    Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

    18 U.S.C. § 287, Making a False Claim

    Maximum Penalty: Five years in prison, $250,000 fine

    AGENCIES

    Federal Bureau of Investigation

    Naval Criminal Investigative Service

    Department of Veterans Affairs – Office of Inspector General

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Minnesota Man Charged with Production of Child Pornography

    Source: US FBI

    ST. PAUL, Minn. – Michael Thompson of Minneapolis, Minnesota, has been charged by complaint with one count of production and attempted production of child pornography, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

    According to court documents, on December 29, 2024, Michael Benjamin Thompson, 37, drove from Minnesota to Iowa to visit a teenage minor, whom he had met online.   While there, Thompson engaged the minor in various sexual activities. Thompson and the minor continued messaging and on January 30, 2025, Thompson induced the minor victim to send him sexually explicit images.  

    Thompson was charged via criminal complaint in U.S. District Court. He had his detention hearing on May 2, 2025 before Judge Elizabeth Cowan Wright and was ordered to remain in custody pending further proceedings.

    “We are experiencing an epidemic of online-facilitated sex abuse in Minnesota,” said Acting U.S. Attorney Lisa D. Kirkpatrick.  “My office will continue to aggressively prosecute predators who use the internet to prey on our vulnerable children.”  

    “Crimes against children violations are among the most reprehensible crimes we investigate,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “The FBI remains steadfast in its commitment to ensure that those who exploit or harm children are brought to justice. We will continue to work closely with our partners to pursue offenders and safeguard our communities.”

    This case is the result of an investigation by the FBI and the Ankeny Police Department.

    If you believe you or your child may be a victim of Michael Thompson, please call the FBI tip line at 1-800-CALL-FBI.

    Assistant U.S. Attorney Ruth S. Shnider is prosecuting the case.

    A complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-Led Nationwide Crackdown, Including One in the District of South Dakota

    Source: US FBI

    SIOUX FALLS – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
     
    “The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”

    “Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”

    Those arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In South Dakota, the FBI received a Cybertip through NCMEC that Brandon Rouillard, age 31, of Evergreen, South Dakota, had engaged in sexual conversations with a local 14-year-old girl over Facebook. The FBI investigated the Cybertip and learned Rouillard requested that the 14-year-old send him sexual videos and images constituting child sexual abuse material. Rouillard received and saved the child sexual abuse material to his Facebook account. Rouillard also discussed meeting the 14-year-old for a sexual encounter. Rouillard was arrested on a criminal complaint on May 1, 2025, and his initial appearance was held before a federal magistrate judge on May 2, 2025. He was detained pending a preliminary hearing scheduled for May 9, 2025.

    “The U.S. Attorney’s Office in the District of South Dakota routinely partners with federal, state, local, and tribal law enforcement to hold accountable those who seek to sexually exploit children through social media applications and gaming platforms,” said U.S. Attorney Alison J. Ramsdell. “Whether part of a nationwide effort, a local operation, or an individual investigation, our office does not shy away from aggressively prosecuting those who use the Internet to take advantage of vulnerable youth in our communities.”

    “Protecting children from exploitation is one of the FBI’s highest priorities,” said Special Agent in Charge, Alvin M. Winston Sr., of FBI Minneapolis. “Operation Restore Justice underscores the strength of our partnerships and our shared determination to bring child predators to justice. Those who exploit children should know there is no hiding place – we will find you and bring you to justice.”

    In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. It is of vital importance that parents and guardians talk frequently and openly with children about responsible Internet use. It is also essential that the community understands the warning signs of cyberbullying and sextortion, including:

    1. Sudden changes in behavior, such as becoming withdrawn, anxious, or secretive;
    2. Abruptly deleting social media accounts or frequently creating new accounts;
    3. Turning off or hiding devices in the presence of a parent or other adult;
    4. Clearing their web browser cache and/or history;
    5. Unexplained money or gift cards; and
    6. Spending less time with friends.

    This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children, seeking justice for victims, and raising awareness through community education. These types of cases are brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.

    The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.

    The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.

    Other online resources:

    Electronic Press Kit

    Violent Crimes Against Children

    How we can help you: Parents and caregivers protecting your kids

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

    MIL Security OSI –

  • MIL-OSI Security: Pine Ridge Man Sentenced to 20 Years in Federal Prison for Conspiring to Distribute Methamphetamine Within the Pine Ridge Reservation and in Rapid City

    Source: US FBI

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on May 6, 2025.

    Phil Pond, age 42, was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

    A federal grand jury indicted Pond in January 2024. He pleaded guilty on July 29, 2024.

    From 2022 to 2024, Pond and others conspired to distribute at least 500 grams of methamphetamine in South Dakota. Some of the co-conspirators traveled to the Denver area, and/or acquired the methamphetamine locally from Pine Ridge and Rapid City. Pond knew some of this methamphetamine he was selling would be further distributed. Evidence presented at Pond’s sentencing established that he acted as the enforcer and used intimidation, force, and threats of violence against others to acquire money to satisfy their drug debts. Pond was a leader and organizer of the conspiracy and also provided methamphetamine to a person under the age of 21.

    This case was investigated by the FBI and the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the FBI, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, Martin Police Department, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorneys Megan Poppen and Anna Lindrooth prosecuted the case.

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

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  • MIL-OSI Security: Four Pierre Residents Sentenced to Substantial Terms in Federal Prison for Conspiracy to Distribute a Controlled Substance

    Source: US FBI

    PIERRE – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced four Pierre, South Dakota, residents convicted of Conspiracy to Distribute a Controlled Substance. The sentencings took place on May 5, 2025.

    Whitney Marrowbone, age 30, was sentenced to 11 years in federal prison, followed by five years of supervised release.

    Wendy Mealer, age 49, was sentenced to six years in federal prison, followed by three years of supervised release.

    Brent Larvie, age 36, was sentenced to four years and six months in federal prison, followed by three of supervised release.

    David Rinehart, age 33, was sentenced to two years in federal prison, followed by three years of supervised release.

    All four defendants were each also ordered to pay a $1,000 fine and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

    These convictions stemmed from a drug distribution conspiracy beginning in June 2023 and continuing until September 2024.  Marrowbone, Mealer, Larvie, and Rinehart were involved in an extensive conspiracy with several other individuals to distribute methamphetamine in and around Pierre and surrounding areas. The four co-defendants received significant quantities of methamphetamine from two other co-defendants, Heather and Misty Stahlhoefer, and then further distributed it. During the course of the investigation law enforcement recovered over 550 grams of pure methamphetamine.

    Heather Stahlhoefer is scheduled to be sentenced May 14, 2025, and Misty Stahlhoefer is scheduled to be sentenced July 14, 2025.

    This case was investigated by the FBI North Plains Safe Trails Drug Enforcement Task Force, the Pierre Police Department, the Chamberlain Police Department, and the Lyman County Sheriff’s Office.  This case was prosecuted by Assistant United States Attorney Meghan Dilges.

    Marrowbone, Rinehart, Mealer, and Larvie were immediately remanded to the custody of the U.S. Marshals Service.

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  • MIL-OSI Security: Second Former Memphis Police Officer Pleads Guilty to Federal Civil Rights and Conspiracy Charges Tied to Death of Tyre Nichols

    Source: US FBI

    Memphis, TN – A former Memphis, Tennessee, Police Department (MPD) officer facing federal civil rights charges for the tragic killing of Tyre Nichols pleaded guilty in federal court today.

    Emmitt Martin III, pleaded guilty to civil rights and conspiracy charges arising out of the Jan. 7, 2023, incident. Martin is the second MPD officer to plead guilty in this case.

    On Sept. 12, 2023, a federal jury returned a four-count indictment against Martin and four co-defendants. The charges included using excessive force resulting in the death of Nichols; aiding and abetting each other in using that excessive force; failing to intervene to stop the excessive force; failing to render medical aid; and conspiring or taking action to cover up their misconduct. On Nov. 2, 2023, co-defendant Desmond Mills entered a guilty plea to civil rights and conspiracy charges.

    The remaining three defendants will face a federal trial scheduled for Sept. 9.

    In today’s court appearance, Martin pleaded guilty to counts one and three of the indictment. Count one charged Martin with using excessive force and failing to intervene in the unlawful assault. Count three charged Martin with conspiring to cover up his use of unlawful force by omitting material information and by providing false and misleading information to his supervisor and to others. A sentencing hearing is scheduled for Dec. 5. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors. 

    Attorney General Merrick B. Garland, FBI Director Christopher Wray, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Kevin Ritz for the Western District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the FBI Memphis Field Office made the announcement.

    The FBI Memphis Field Office investigated this case. 

    Assistant U.S. Attorneys David Pritchard and Elizabeth Rogers for the Western District of Tennessee and Special Litigation Counsel Kathryn E. Gilbert, Trial Attorney Andrew Manns and Deputy Chief Forrest Christian of the Justice Department’s Civil Rights Division are prosecuting the case. 

    ###

    Topic

    CIVIL RIGHTS

    Components

    Civil Rights Division 

    Civil Rights – Criminal Section 

    Federal Bureau of Investigation (FBI) 

    USAO – Tennessee, Western

    Press Release Number: 24-1049

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  • MIL-OSI Security: FBI Offering $50,000 Reward for Information Leading to Missing 15-Year-Old Sebastian Wayne Drake Rogers

    Source: US FBI

    NASHVILLE, TN—The FBI Memphis Field Office, Nashville Resident Agency is offering a reward of up to $50,000 for information leading to the location and return of Sebastian Wayne Drake Rogers or to the arrest and conviction of those responsible for his disappearance.

    Sebastian Wayne Drake Rogers, a 15-year-old male, was last seen on February 26, 2024, in the area of Stafford Court in Hendersonville, Tennessee. He was wearing a black sweatshirt, black sweatpants, and black, square-framed glasses. Sebastian has medical conditions, including autism, that may impair his ability to return safely without assistance.

    If you have any information concerning the whereabouts of Sebastian Wayne Drake Rogers, please contact the Sumner County Sheriff’s Office at (615) 451-3838, the Tennessee Bureau of Investigation at 1-800-TBI-FIND or TipsToTBI@tbi.tn.gov, your local FBI office, the nearest American Embassy or Consulate, or you can submit a tip online at tips.fbi.gov.

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  • MIL-OSI Security: United States Attorney Ritz Announces 10 Federal Indictments for Firearm and Violent Crimes

    Source: US FBI

    Memphis, TN – United States Attorney Kevin G. Ritz announced today the indictments of ten individuals who were charged with federal gun and violent crime offenses in West Tennessee.  United States Attorney Ritz also reinforced his office’s commitment to federal prosecution of individuals who commit violent crimes, illegally possess machine-gun conversion devices (also known as “switches”), or commit other federal firearm offenses. 

    “As alleged, these individuals have committed serious federal crimes involving firearms or violent activity,” said United States Attorney Ritz.  “Our office will continue to work with the Project Safe Neighborhoods Task Force and other law enforcement partners to reduce violent crime in our community.  The citizens of Memphis and Shelby County deserve to feel safe.” 

    The following defendants were charged with federal crimes involving switches: 

    • Wayne Sanders, 31. Sanders was charged in June 2024 with being a felon in possession of firearms and possessing a machine gun on February 24, 2024.  A superseding indictment returned on August 29, 2024, charged Sanders with four additional counts related to his arrest by officers in April 2024:
      • Possession of a machine gun;
      • Being a felon in possession of a firearm;
      • Assault of a Task Force Officer with the U.S. Marshals Service; and
      • Brandishing a firearm during and in relation to the assault on a federal officer. 
    • Myles Bowens, 22. Bowens was indicted on August 29, 2024, for being a felon in possession of a firearm and possessing a gun with an attached machine-gun conversion device. 
    • Taveon Earnest, 20. Earnest was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device. 
    • Actavious Ellis, 30. Ellis was indicted on August 29, 2024, for possessing a gun with an attached machine-gun conversion device. 

    The following defendants were charged with other firearm or violent crime offenses: 

    • Nathenael Tekle, 23. Tekle was indicted on August 29, 2024, for four separate armed business robberies in Memphis, committed over a 10-day span in October and November 2023.  He is charged with four counts of robbery of a business affecting interstate commerce and four counts of brandishing a firearm during and in relation to the robberies. 
    • Caran Stokes, 26. Stokes was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.  
    • Tony Thomas, 27. Thomas was indicted on August 29, 2024, on one count of carjacking and one count of brandishing a firearm during and in relation to the carjacking.  
    • Pierre Jones, 34. Jones was indicted on August 29, 2024, for possession of a firearm after having at least three prior convictions for serious drug offenses or violent felonies.  
    • Marcus Oher, 26. Oher was indicted on August 29, 2024, for being a felon in possession of a firearm on two different occasions. 
    • Jermaine Cooper, 35. Cooper was indicted on August 29, 2024, for being a felon in possession of a firearm. 

    These cases are being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation’s Safe Streets Task Force; the Project Safe Neighborhoods Gun Task Force; the Memphis Police Department; and the Shelby County Sheriff’s Office.  Anyone with information about switches or other federal gun crimes can call 1-800-ATF-GUNS (1-800-283-4867).

    The charges and allegations contained in the indictments are merely accusations of criminal conduct, not evidence.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt and convicted through due process of law.  If convicted, each defendant’s sentence will be determined by the Court after review of the factors unique to the case, including the defendant’s prior criminal records (if any), the defendant’s role in the offense, and the characteristics of the violation. 

    These indictments are 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, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results. 

    United States Attorney Kevin Ritz thanked the Assistant United States Attorneys prosecuting these cases, as well as the law enforcement partners who investigated the cases.   

    ###

    For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

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  • MIL-OSI Security: Chattanooga Man Sentenced to 60 Months in Prison for Defrauding Elderly Widow with Dementia of $1.2 Million

    Source: US FBI

    NASHVILLE – Karl Hampton, 65, of Chattanooga, Tennessee, was sentenced to 60 months in prison, followed by 3 years of supervised release, and ordered to pay over $1.2 million in restitution for executing a scheme to defraud an elderly widow who had dementia, announced Henry C. Leventis, United States Attorney for the Middle District of Tennessee.

    Hampton and his wife Deborah, both formerly of Franklin, Tennessee, were indicted in June 2021 on multiple counts of conspiracy and money laundering and Karl Hampton was also charged with eight counts of wire fraud.  After a week-long jury trial in April 2023, Karl Hampton was convicted on all counts.

    At trial, the evidence showed that Karl Hampton met the 86-year-old widow while he was working as an exterminator for a pest control company based in Nashville. Between January 2018 and February 2020, Karl Hampton tricked the woman into believing that he would care for her personally and financially. Hampton held himself out to the woman and others as her “personal representative,” her “son” or “godson,” and pretended that he was acting on her behalf.  In April 2019, Hampton convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will.  He then methodically drained the woman’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards for his own personal expenses.

    Some of the funds Hampton stole came from two investment accounts that belonged to the estate of the woman’s deceased sister. Those funds were supposed to be split between the woman and another individual. Instead, Hampton transferred the funds to himself.

    In total, Hampton took more than $1.2 million. from the woman’s accounts in the form of checks, cashier’s checks, and bank transfers, cash withdrawals, and using the woman’s credit card for his own benefit.  Hampton frequently purchased luxury items, including a car and a luxury SUV, and a 4.3-karat diamond ring that cost more than $21,000. Hampton often spent over $1,000 per day in cash buying lottery tickets.

    Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She was sentenced to time served, 3 years of supervised release, and ordered to pay restitution in the amount of $21,000.

    This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency.  Assistant U.S. Attorney Kathryn Booth prosecuted the case.

    # # # # #

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  • MIL-OSI Security: Tennessee Law Enforcement Officers Graduate from the FBI National Academy

    Source: US FBI

    The FBI National Academy in Quantico, Virginia, graduated 254 law enforcement officers, including five from Tennessee:

    • Lieutenant Clayton Charles Cates, Franklin Police Department
    • Lieutenant Jennifer Caruthers, Dickson County Sheriff’s Office
    • Assistant Chief of Police James Raymond Colvin, Brentwood Police Department
    • Major Daniel Benjamin Jones, Chattanooga Police Department
    • Lieutenant Robert Nelms, Sevierville Police Department

    These officers were among the men and women from 47 states, the District of Columbia, and Guam, who completed the 10 weeks of training and became the 291st class to graduate. The class also included members of law enforcement agencies from 26 countries, seven military organizations, and seven federal civilian organizations.

    The FBI National Academy is a professional course of study for U.S. and international law enforcement managers nominated by their agency heads because of demonstrated leadership qualities. The 10-week program—which provides coursework in intelligence theory, terrorism and terrorist mindsets, management science, law, behavioral science, law enforcement communication, and forensic science—serves to improve the administration of justice in police departments and agencies at home and abroad and to raise law enforcement standards, knowledge, and cooperation worldwide.

    The FBI Memphis Field Office and the FBI Knoxville Field Office congratulate the five members of the law enforcement community in Tennessee for completing this comprehensive training.

    A total of 55,440 graduates have completed the FBI National Academy since it began in 1935. The National Academy is held at the FBI Training Academy in Quantico, the same facility where the FBI trains its new special agents and intelligence analysts.

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  • MIL-OSI Security: Former Tennessee State Public Official and a Corporate Executive Charged with Conspiracy to Obstruct Justice and Commit Perjury in Connection with a $123 Million State Contract

    Source: US FBI

    NASHVILLE – Wesley Olan Landers, 55, of Cumming, Georgia, and Jeffrey Scott Wells, 54, of Canton, Georgia, have been charged by felony information with conspiracy to obstruct justice and to commit perjury in connection with a $123 million contract to provide behavioral health services to Tennessee Department of Corrections (“TDOC”) inmates, announced Thomas J. Jaworski, Acting United States Attorney for the Middle District of Tennessee.

    According to the information, Landers was the Deputy Commissioner and Chief Financial Officer for TDOC from 2012 until March 2020. From at least 2018 until February 2021, Wells was a Vice President of Company B.

    In 2019, Company A provided behavioral health services to TDOC inmates. In anticipation of the contract’s expiration, the State of Tennessee issued Requests for Proposals (“RFP”) for a new TDOC behavioral health services contract. Pursuant to the RFPs, prospective vendors could bid for the new contract. The State received bids from several prospective vendors and, in July 2020, issued a notice of its intent to award the new contract to Company B in Tennessee. The total amount for the new contract was $123,513,819.

    Before the new contract was awarded, from September 2018 until February 2020, Landers (while serving as a Tennessee State official) used his personal email account to provide confidential TDOC information related to the bidding process to Wells. On March 1, 2020, Company B hired Landers as its Vice President of Operations, reporting to Wells. This position was created specifically for Landers; it was not advertised to other candidates and neither Landers nor any other candidates were interviewed before he was hired. By February 2021, senior leadership of Company B learned that Landers had given confidential TDOC information to Wells in connection with the RFPs, and the CEO of Company B fired them both.

    A few months earlier, in October 2020, Company A filed a civil lawsuit relating to the RFPs in federal court in Nashville, naming among others, Company B and the State of Tennessee as defendants. In that lawsuit, Company A served subpoenas for documents and testimony on Landers and Wells for all their communications with TDOC employees related to the RFPs.

    To impede an investigation into a matter within the FBI’s jurisdiction – namely, bribery – and to conceal that Landers gave confidential TDOC information to Wells about the RFPs, Landers and Wells agreed to engage in a cover up and to commit perjury in the federal civil lawsuit. Landers began using a specialized program to delete his personal email account’s communications with Wells that were sought in the subpoena. Landers and Wells both got new cell phones which they used to discuss the need to hide information in response to Company A’s subpoenas and deposition notices. They also both testified falsely under oath in their depositions, including about whether they shared documents related to the RFPs, when they last spoke, and if they communicated on WhatsApp.

    If convicted, both defendants face up to five years in federal prison.

    This case was investigated by the Federal Bureau of Investigation, Memphis Field Office, Nashville Resident Agency. Assistant U.S. Attorneys Taylor J. Phillips and M. Scott Cole are prosecuting the case.

    An information is merely an accusation. All defendants are considered innocent until proven guilty.

    # # # # #

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  • MIL-OSI Security: Tennessee Father and Son Sentenced to Prison for Assaulting Law Enforcement with a Weapon During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON— A Father and son from Tennessee were sentenced to prison today after they were both previously convicted of assaulting law enforcement and other charges stemming from their conduct during the Jan. 6, 2021, breach of the U.S. Capitol. Their 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.

                Mark Waynick, 53, of Charlotte, Tennessee, was sentenced to 54 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution.

                Jerry McKane Waynick, 21, also of Charlotte, Tennessee, was sentenced to 30 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution.

                Both men were sentenced by U.S. District Judge Timothy J. Kelly.

                Mark and Jerry Waynick were each convicted of 11 felony offenses and three misdemeanors, including, among other charges, assaulting law enforcement with a dangerous weapon. The men were found guilty following a bench trial before Judge Kelly.

                According to the evidence presented during the trial, on Jan. 6, 2021, the Waynicks attended the “Stop the Steal” rally in Washington, D.C., near the Ellipse. After the rally, the two men made their way to the U.S. Capitol building wearing helmets, tactical vests, gloves, and goggles. The pair then entered the closed U.S. Capitol grounds shortly after the initial breach of the Peace Circle at 12:55 p.m. The men then made their way to the West Front, where a line of Metropolitan Police Department (MPD) and United States Capitol Police (USCP) officers were attempting to prevent rioters from breaching the Capitol.

                On the West Front, the Waynicks joined other rioters’ efforts to push against a line of police officers just before 1:36 p.m.  During that time, McKane Waynick saw that police officers were attempting to detain another rioter and rushed to the barricade to grab the rioter and pull him away from the officers, interfering with the detention. While grabbing the other rioter, Jerry Waynick swiped at an officer’s riot baton.

                At the same time that McKane Waynick reached for the baton, Mark Waynick swung an American flag attached to a metal pole with a metal finial into the line of police officers. Before the pole hit any officers, an officer intercepted the pole by grabbing it from Mark and throwing it behind the line of police officers. Minutes later, McKane Waynick returned to the metal barricades and joined with at least four other rioters to separate one metal bicycle rack from the others and pull it into the crowd to create an opening in the barricade; however, police prevented them from achieving their intent.

                Less than a minute later, at 1:40 p.m., McKane Waynick picked up a large plastic construction marker, aimed it at police, and hurled it with both hands, striking two officers. Court documents say that this marker weighed approximately ten pounds and was three feet tall. After hurling the object at police, McKane Waynick retreated back into the crowd.

                The Waynicks entered the Capitol building from the Senate Wing Door at 2:20 p.m., just minutes after the initial breach at 2:13 p.m. Once inside, they moved throughout the building for approximately 35 minutes, entering the Will Rogers Hallway, which was outside the House Chamber, and joining with a mob of rioters who pushed past the handful of officers guarding that hallway.

                At approximately 2:35 p.m., the mob pushed through police officers and entered the House Chamber’s Main Door. The Waynicks followed the advancing rioters and moved to within a few feet of the House Chamber as the mob repeatedly chanted, “Break it down!” An individual recording video captured the scene afterward and asked McKane Waynick about what he had seen, to which he replied that he saw “guns” and said, “We’re an imminent threat to the people inside.”

                The Waynicks exited the Capitol building at 2:55 p.m. via the Upper House Door.

                The FBI arrested the Waynicks on Feb. 17, 2022, in Tennessee.

                This case was 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 Middle District of Tennessee.

                This case was investigated by the FBI’s Memphis Field Office and the FBI’s Washington Field Office, which identified Jerry McKane Waynick as #157 on its seeking information photos. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.

                In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 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: Lame Deer Man Sentenced to Over 15 Years in Prison for Rape on Northern Cheyenne Indian Reservation

    Source: US FBI

    BILLINGS – A Lame Deer man who raped a woman on the Northern Cheyenne Indian Reservation was sentenced today to 188 months in prison to be followed by15 years of supervised release, U.S. Attorney Kurt Alme said.

    Adriano Sparkxxx LeBeaux, 21, was found guilty at trial in October 2024 of aggravated sexual abuse as charged in an indictment.

    U.S. District Judge Susan Watters presided.

    In court documents and at trial, the government alleged that on March 8, 2023, the victim, identified as Jane Doe, met up with LeBeaux at a residence in Lame Deer, on the Northern Cheyenne Indian Reservation. LeBeaux told Doe the police were on their way to search the house and that they needed to hide in the basement. Jane Doe had been drinking and did not want to be arrested because Northern Cheyenne is a dry reservation. Hiding in the basement seemed like a good idea to Jane Doe.

    While in the basement, LeBeaux told Jane Doe to lie down in a corner on the floor, and she fell asleep or passed out. At some point, Jane Doe awoke to LeBeaux holding a knife to her throat and then he raped her. Jane Doe left the residence and went to the Indian Health Service Clinic where she underwent a sexual assault exam. An analysis of DNA indicated LeBeaux was the contributor to male DNA identified in the sexual assault exam.

    Assistant U.S. Attorneys Lori Suek and Paul Vestal prosecuted the case, and the investigation was conducted by the FBI, BIA and Northern Cheyenne Investigative Services.

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

    XXX

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  • MIL-OSI Security: Former Altana Federal Credit Union Employee Sentenced to More Than One Year in Prison for Embezzlement and Ordered to Pay Over $65,000 in Restitution

    Source: US FBI

    BILLINGS – A Billings woman who formerly served as the Operations Manager for Altana Federal Credit Union in 2023 was sentenced yesterday to 12 months and 1 day in prison to be followed by 3 years of supervised release and ordered to immediately pay full restitution of $65,046.37, U.S. Attorney Kurt Alme said.

    Kelly Jo Muzzana, 40, pleaded guilty in July 2024 to embezzlement by a credit union employee.

    U.S. District Judge Susan P. Watters presided.

    The government alleged in court documents that throughout 2023, Muzzana served as the Operations Manager for Altana Federal Credit Union in Billings, Montana. In that role, Muzzana had access to customer data and was responsible for managing Altana’s entire fraud-alert process. This included supervising the employees who documented customers’ fraud claims and facilitating what funds were reimbursed by Altana. Muzzana also managed the fraud reporting system and was entrusted to independently authorize bank cards that were re-issued to customers or returned to the bank through the mail.

    During her time as Operations Manager, Muzzana created duplicate bank cards for customers’ accounts and took them home with her. She did the same with cards that Altana received in the mail that were undelivered to customers. Muzzana took numerous bank cards from Altana and used them to make purchases online and in retail stores around Billings, Montana such as Target and Walmart. After using their cards to finance her private spending, Muzzana personally handled many of the subsequent fraud claims to prevent detection by law enforcement.

    Eventually, an Altana customer reported one of Muzzana’s fraudulent purchases to law enforcement. When a detective called Altana to investigate, Muzzana downloaded a recording of the call and, upon learning of the investigation, fled the building and never returned.

    Altana reimbursed its customers all of the money Muzzana stole. In a victim impact statement, Altana’s CEO, Jason Hagadone explained that the credit union “suffered significant reputation risk from this incident. As a financial institution, our members entrust us with one of the most important aspects of their life: their finances. Kelly breached that trust by stealing and using their debit cards.”

    Assistant U.S. Attorney Benjamin Hargrove prosecuted the case. The investigation was conducted by the Billings Police Department and FBI.

    XXX

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  • MIL-OSI Security: United States Seizes More Than $6 Million in Alleged Proceeds of a Crypto-Confidence Scheme

    Source: US FBI

                WASHINGTON – The United States seized over $6 million worth of cryptocurrency from perpetrators overseas, announced U.S. Attorney for the District of Columbia Matthew M. Graves, U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, and FBI Special Agent in Charge Joseph E. Carrico of the Knoxville Division.

                The perpetrators in Southeast Asia targeted one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme.

                The FBI was able to trace victim funds on the blockchain and located multiple cryptocurrency wallet addresses which still held victim funds totaling more than $6 million. 

                Cryptocurrency confidence investment schemes begin by criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetup or investment groups. Next, using various means of manipulation, the criminal gains the victim’s affection and trust. The perpetrator then recommends cryptocurrency investment by touting their own, or an associate’s, success in the field. Means of carrying out the scheme vary, but a common tactic is to direct a victim to a fake investment platform hosted on a website. These websites, and the investment platforms hosted there, are created by criminals to mimic legitimate platforms. The subject assists the victim with opening a cryptocurrency account, often on a U.S.- based exchange, and then walks the victim through transferring money from a bank account to that cryptocurrency account. Next, the victim will receive instructions on how to transfer their cryptocurrency assets to the fake investment platform.

                On its surface, the fraudulent platforms often show lucrative returns, encouraging further investment; however, all deposited funds are actually routed to a cryptocurrency wallet address controlled completely by the perpetrators. The perpetrators frequently allow victims to withdraw some of their “profits” early in the scheme to engender trust and help convince victims of the legitimacy of the platform. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds.

                “In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters,” said U.S. Attorney Graves. “The fact these fraudsters and their accounts are typically located outside the United States, will not stop us or our partners at the FBI from doing all we can to recover the proceeds of these frauds and to hold the people running them accountable.”

                “Investment scams and schemes are not new, but committing fraud with digital currency presents new challenges for law enforcement attempting to recover lost funds,” said Special Agent in Charge Carrico. “The FBI along with our law enforcement partners will continue to investigate allegations of crypto scams, but the best defense is to educate yourself before making any investment. Remember, if it sounds too good to be true, it probably is.”

               Based on data submitted to the FBI’s Internet Crime Complaint Center (https://www.ic3.gov/) in 2022 alone, perpetrators of these schemes targeted tens of thousands of victims in the United States and resulted in over two billion dollars in private assets being siphoned overseas. The loss amount reported in IC3 complaints involving cryptocurrency increased 45% since 2022, from more than $3.8 billion to over $5.6 billion in 2023. 

               The FBI Knoxville Division is investigating the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit are providing invaluable assistance. 

               The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets. This case is being prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr. of the District of Columbia, Assistant U.S. Attorney Joseph DeGaetano of the Eastern District of Tennessee, and Trial Attorney Stefanie Schwartz from the National Cryptocurrency Enforcement Team with the Computer Crime and Intellectual Property Section of the Department of Justice.

    ###

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  • MIL-OSI Security: Federal Jury Convicts Kingston Man of Attempting to Entice Minors to Engage in Unlawful Sexual Activity and Other Child Sex Crime Offenses

    Source: US FBI

    KNOXVILLE, Tenn. – On September 25, 2024, following a-three-day trial in United States District Court at Knoxville, a federal jury convicted Christopher Edward Allen, 34, of Kingston, TN, of nine counts involving child pornography and attempting to entice minors to engage in unlawful sexual activity.  Specifically, Allen was convicted of three counts of attempting to entice a minor to engage in unlawful sexual activity, one count of producing child pornography, two counts of attempting to produce child pornography, two counts of transporting a visual depiction of a minor engaged in sexually explicit conduct, and one count of transferring obscene material.

    Sentencing is set for February 6, 2025, at 2:00 pm, in front of the Honorable Judge Thomas A. Varlan, United States District Judge, United States District Court at Knoxville. Allen faces a sentence of up to life in prison.

    The evidence presented at trial showed that, among other things, Allen used various social media platforms to identify minors online.  Once Allen identified the minors, he enticed them over social media and texting apps to engage in unlawful sexual activity and to send nude images of themselves engaged in sexually explicit conduct.  In two instances, Allen paid the minors for nude images of themselves, which Allen later emailed to himself using the minor’s name as the subject line of the emails.  Allen also sent sexually explicit images of himself to minors using social media.  In at least one instance, Allen met a minor in person at the restaurant where Allen worked.  Allen added the minor to one of his social media accounts.  Later that night, Allen communicated with the minor over social media.  Law enforcement learned of those messages and, with consent from the minor’s parents, assumed the minor’s identity on social media two days later.  That same day, Allen was arrested at a park in Kingston, TN, after arriving with the intent to meet the minor.

    U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) made the announcement.

    FBI and the Tennessee’s Ninth Judicial District Attorney General’s Office investigated the case that led to the indictment and subsequent conviction of Allen.

    Assistant U.S. Attorneys Jennifer Kolman and William A. Roach, Jr., represented the United States at trial.

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

    For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab “resources.”

                                                                                                               ###

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  • MIL-OSI Security: Chattanooga Man Sentenced for Firearm and Explosives Violations

    Source: US FBI

    CHATTANOOGA, Tenn. – On November 1, 2024, Anthony Christopher Lively, 41, of Chattanooga, was sentenced to 54 months in prison by the Honorable Travis R. McDonough, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Chattanooga.  Following imprisonment, Lively will be on supervised release for three years.

    As part of the plea agreement filed with the court, Lively agreed to plead guilty to possession of an unregistered firearm silencer and unregistered destructive devices, in violation of the National Firearms Act (“NFA”), 26 U.S.C. §§ 5841. 5861(d), and 5871.

    According to filed court documents, in August of 2022, law enforcement executed a search warrant at Lively’s Chattanooga home.  Investigators located and seized a Grand Power Stribog, Model SP9A1, 9-millimter, short-barrel rifle (8-inch barrel length) equipped with a foldable stock and a fully loaded magazine; multiple firearm magazines; multiple lists detailing explosive components and parts; and assorted ammunition.  Further investigation revealed that prior to the execution of the warrant, Lively enlisted a family member to remove contraband from his home.  From that family member’s home, law enforcement located and seized a firearm silencer; improvised explosive devices, commonly referred to as “pipe bombs” and “Molotov cocktails”, an improvised incendiary device, commonly referred to as a “Molotov cocktail”, and various fuzes, initiators, and other explosives-related components.  Lively later admitted to purchasing and modifying the short-barrel rifle and firearm silencer and constructing the pipe bombs and Molotov cocktail.  He also admitted that he directed his family member to remove the items from his home.  The firearms and devices were not registered, to Lively or otherwise, in the National Firearms Registration and Transfer Record, as required by the NFA.

    U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement. 

    The criminal indictment was the result of an investigation by Homeland Security Investigations-Chattanooga Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives Chattanooga Field Office; the Federal Bureau of Investigation; Chattanooga Police Department Bomb Squad and Special Victims Unit; and the Hamilton County Sheriff’s Office

    Assistant United States Attorney Kevin T. Brown represented the United States.

    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.

                                                                                                                               ###

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  • MIL-OSI Security: Tennessee Man Convicted of Assaulting Law Enforcement and Other Charges for Actions During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON – A Tennessee man was convicted of assaulting law enforcement and other felony and misdemeanor charges 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.

                Edward Kelley, 35, of Maryville, Tennessee, was found guilty of three felonies, including civil disorder, one count of destruction of government property in an amount over $1,000, and assaulting, resisting, or impeding certain officers.

                In addition to the felonies, Kelley was convicted of eight misdemeanor offenses, including of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, entering and remaining in the Gallery of Congress, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, destruction of government property under $1,000, and parading, demonstrating, or picketing in a Capitol building.

                Kelley was convicted of these charges following a bench trial before U.S. District Judge Colleen Kollar-Kotelly and will be sentenced on April 7, 2025.

                According to evidence presented during the trial, Kelley was identified in open-source images and video footage outside the West Front of the U.S. Capitol building on Jan. 6, 2021, in Washington, D.C. There, Kelley is seen moving to the scaffolding over a set of stairs and becomes involved in an altercation with a United States Capitol Police (USCP) officer where he and two other men throw the officer to the ground.

                Kelley then moves to the top of the stairs with a crowd of rioters before being stopped by law enforcement. However, Kelley is seen in open-source video footage pushing and pulling on a metal barricade with police on the other end. The crowd and Kelley eventually pushed past police and made their way closer to the Capitol building. Kelley arrived just outside the Senate Wing Door and is then seen in an open-source video using a piece of wood to smash and breach the window adjacent to the door. Kelley then entered the building through this window at approximately 2:13 p.m. Evidence showed that Kelley was the fourth person to enter the building through this breached window.

                After entering into the building, Kelley moved to the still-closed Senate Wing Door and kicked it open. As the crowd of rioters poured into the building, Kelley moved further into the building and can be seen in an open-source video confronting Capitol Police Officer Eugene Goodman. Kelley then made his way through several areas of the Capitol, including the Ohio Clock Corridor, the Crypt, the Senate Gallery, and the Rotunda. In another open-source video, Kelley is identified in the Senate Gallery.

                Kelley exited the Capitol through the Rotunda Door at 2:54 p.m. and was inside the building for approximately 40 minutes.

                Kelley was arrested on May 5, 2022, in Tennessee.

                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 Eastern District of Tennessee.

                The case is being investigated by the FBI’s Knoxville and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

                In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 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.

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  • MIL-OSI Security: Four Arizona Swindlers Sentenced for Paycheck Protection Program Fraud

    Source: US FBI

    PHOENIX, Ariz. – Four Arizona residents were sentenced to significant prison terms in connection with their schemes to fraudulently obtain millions of dollars in Paycheck Protection Program (PPP) loans, a federal loan initiative designed to help businesses pay their employees and meet expenses during the COVID-19 pandemic. All four defendants, Willie Mitchell, Sean Swaringer, Kimberly Coleman, and Jason Coleman pleaded guilty to Bank Fraud.

    They were each sentenced as follows:

    • Willie Mitchell, aka Blu Mitchell, 41, of Phoenix, Arizona, was sentenced on February 6, 2023, by United States District Judge G. Murray Snow to 97 months in prison.
    • Sean Swaringer, 57, of Peoria, Arizona, was sentenced on April 4, 2023, by United States District Judge Steven P. Logan to 121 months in prison.
    • Kimberly Coleman, 39, of Mesa, Arizona, was sentenced on April 10, 2023, by Judge Logan to 120 months in prison.
    • Jason Coleman, 41, of Mesa, Arizona, was sentenced on May 15, 2023, by Judge Logan to 60 months in prison.

    In addition to their respective prison terms, all four defendants also were ordered to serve five years of supervised release.

    Mitchell, working with others, fraudulently obtained seven PPP loans totaling $9,470,900. He purchased a vehicle, multiple properties, and vacations with the PPP funds.

    Swaringer obtained four fraudulent PPP loans totaling more than $1.5 million on behalf of two entities: Cryotherapy for Veterans and Cryoworld Therapy, LLC. In addition to his own loans, Swaringer also recruited more than 10 individuals to apply for fraudulent PPP loans. He assisted in preparing and submitting their PPP applications in exchange for kickbacks from their PPP loan proceeds. Swaringer was ordered to pay more than $3.8 million in restitution for his own loans and the kickbacks from at least 15 other PPP loans. Swaringer purchased jewelry, vehicles, vacations, and real estate with the fraudulent funds.

    Kimberly Coleman and her husband, Jason Coleman, collectively prepared and submitted approximately two dozen fraudulent PPP loan applications in an attempt to receive more than $30 million in PPP funds. They were successful in at least 10 of those submissions and fraudulently obtained more than $13 million in PPP funds. The Colemans’ purchases included luxury vehicles and real estate properties, personal property from several high-end retail outlets, vacation, and jewelry.

    The Federal Bureau of Investigation led the investigation in these cases, with significant assistance from Internal Revenue Service – Criminal Investigation, Homeland Security Investigations, and the Small Business Administration-Office of the Inspector General. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecutions.

    CASE NUMBERS:         CR21-00977-001-PHX-GMS
                                              CR21-00981-001-PHX-SPL
                                              CR21-00975-002-PHX-SPL
                                              CR21-00975-001-PHX-SPL
    RELEASE NUMBER:    2023-088_Mitchell-Swaringer-Coleman

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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  • MIL-OSI Security: Salt River Woman Sentenced to 15 Years for Fentanyl Overdose Death of Her Baby

    Source: US FBI

    PHOENIX, Ariz.– Sarah Caitlin Burnette, 23, of the Salt River-Pima Maricopa Indian Community, was sentenced on June 12, 2023, by United States District Judge Steven P. Logan to 180 months in prison. Burnette previously pleaded guilty to Voluntary Manslaughter.

    On February 27, 2021, Burnette’s 18-month-old baby boy died of acute fentanyl toxicity after ingesting the drug. On October 19, 2021, Burnette was charged with murder and child abuse for the fentanyl overdose death of her son, and exposing another child to the same risk of death by fentanyl overdose.

    The Salt River Police Department and FBI jointly conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange and Special Assistant U.S. Attorney Alane Breland, District of Arizona, Phoenix, handled the prosecution. SAUSA Breland is also the Chief Prosecutor for the Salt River Pima-Maricopa Indian Community.

    CASE NUMBER:           CR-21-00867-PHX-SPL
    RELEASE NUMBER:    2023-093_Burnette

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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  • MIL-OSI Security: Inscription House Man Sentenced to More Than 24 Years for Murder

    Source: US FBI

    PHOENIX, Ariz. – Eric Lee Kinney, 37, of Inscription House, Arizona, was sentenced on June 26, 2023, by United States District Judge Dominic W. Lanza to 292 months in prison, followed by five years of supervised release. Kinney pleaded guilty to Second Degree Murder.

    On or about November 5, 2022, Kinney, a member of the Navajo Nation, stabbed the victim to death and later fled from law enforcement. Upon his arrest, Kinney directed law enforcement agents to where he had hidden the murder weapon.

    The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.

    CASE NUMBER:           CR-22-08132-PCT-DWL
    RELEASE NUMBER:    2023-108_Kinney

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

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  • MIL-OSI Security: Little Rock Woman Pleads Guilty to COVID Relief Fraud

    Source: US FBI

          LITTLE ROCK—A Little Rock woman pleaded guilty to bank fraud this afternoon after fraudulently obtaining nearly $2 million in Paycheck Protection Program (PPP) loans intended to provide relief for small businesses affected by COVID-19. Cody Hiland, United States Attorney for the Eastern District of Arkansas, and Diane Upchurch, Special Agent in Charge of the FBI Little Rock Field Office, announced today the guilty plea of Ganell Tubbs, 41.

          At today’s hearing, Tubbs admitted that she purported to own two businesses: The Little Piglet Soap Company, LLC, and Suga Girl Customs, LLC. According to the Arkansas Secretary of State, neither business is in good standing, and both businesses list Tubbs’ residence and personal phone number as the business contact information.

          On April 30, 2020, Tubbs submitted a PPP application representing that Suga Girl Customs had paid $1,385,903 in wages and compensation during the first quarter of 2020. She was approved for a PPP loan of $1,518,887 and received the funds on May 5, 2020, but two days later, she used the proceeds to make an $8,000 payment on her personal student loan. The following week, Tubbs spent approximately $6,000 in online purchases at retailers including Apple, Michael Kors, Sephora, North Face, Nike, and others.

          Similarly, on May 5, 2020, Tubbs submitted another PPP application, this time regarding The Little Piglet Soap Company. Based on the false representations she made in the loan application, The Little Piglet Soap Company received a PPP loan for $414,375.

          “This defendant took almost two million dollars that were intended to keep small businesses afloat during COVID-related shutdowns,” stated U.S. Attorney Hiland. “Hardworking Arkansans needed these funds to pay their employees and support their families, and we will not tolerate fraudsters who lie to obtain these funds and then use them for their personal enjoyment. We ask anyone with information on suspected PPP fraud to please report it.”

          The indictment, which was returned by a grand jury on July 7, 2020, charges Tubbs with two counts of bank fraud, two counts of making a false statement on a loan application, and one count of engaging in a monetary transaction with proceeds of unlawful activity. Tubbs pleaded guilty today to one count of bank fraud in exchange for dismissal of the remaining charges.

          Tubbs’ plea was accepted this afternoon by United States District Judge Brian S. Miller, who will sentence Tubbs at a later date. The FBI, the Small Business Administration – Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration conducted the investigation. Assistant United States Attorneys Pat Harris and Jamie Dempsey are prosecuting the case.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

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