NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Searcy Man Sentenced to 30 Years in Prison for Producing Child Pornography

    Source: US FBI

          LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.

          In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.

          Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.

          Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.

    # # #

    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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  • MIL-OSI Security: FBI Little Rock Presents National Safe Online Surfing Award to LISA Academy West Elementary in Little Rock

    Source: US FBI

    LITTLE ROCK, AR—Today, LISA Academy West Elementary in Little Rock, Arkansas, was presented with the FBI Safe Online Surfing (FBI-SOS) Internet Challenge’s national award. Under the guidance of computer teacher Vickie Carroll, LISA Academy students scored a composite score of 95.33 percent to win the March 2022 award in the Starfish category. For the month of March 2022, a record-breaking 173,011 students from 2,086 schools across all 50 states and fpur U.S. territories participated in the FBI-SOS Internet Challenge.

    “The impressive accomplishment achieved by the students and teachers at LISA Academy West Elementary reflects highly upon Little Rock and the entire state of Arkansas,” said FBI Little Rock Special Agent in Charge James A. Dawson. “We hope Arkansas students and teachers continue to educate themselves through our SOS program about online safety.”

    “Educating students about staying safe online is extremely important to us at LISA Academy West Elementary,” said Vickie Carroll. “Our students completed several online courses on Internet safety to educate themselves and prepare for the FBI-SOS competition. They were thrilled to learn they placed first in the competition and were even more excited about meeting real-life FBI agents!”

    FBI-SOS is a free initiative designed to educate third through eighth-grade students about cyber safety. All public, private, and home schools are eligible to participate in this entertaining and educational web-based program which can be accessed year-round. The website features six grade-specific “islands” for students to visit. Each island includes games, videos, and interactive features which address the protection of personal information, password strength, cell phone safety, social networking, and online gaming safety. The videos also include real-life stories of kids who have encountered cyberbullies and online predators.

    Each month of the academic year, schools compete for the national award in one of three categories determined by the number of students participating from each school: Starfish (5-50 participants); Stingray (51-100); and Shark (100+). Kids and adults of all ages can explore the site, play the games, watch the videos, and learn about cyber safety. However, the competitive exam can only be taken by third to eighth-grade students whose classes have been registered by their teachers.

    The FBI-SOS Internet Challenge was developed with the assistance of the National Center for Missing and Exploited Children with input from teachers and schools throughout America. Visit the FBI-SOS website at sos.fbi.gov for more information or contact the FBI Little Rock Office Community Outreach Specialist at (501) 221-9100.

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  • MIL-OSI Security: U.S. Attorney’s Office Joins in Recognizing Missing and Murdered Indigenous Persons Awareness Day and Announces Appointment of Regional MMIP Coordinator

    Source: US FBI

    PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon joins its partners across the federal government, as well as people throughout American Indian and Alaska Native communities, in recognizing May 5, 2024, as National Missing and Murdered Indigenous Persons (MMIP) Awareness Day.

    The office also announced today the appointment of an MMIP Regional Coordinator based in the District of Oregon. Cedar Wilkie Gillette, who since June 2020 has served as the District of Oregon MMIP Coordinator, will now serve as regional coordinator for the Northwest Region under the Justice Department’s MMIP Regional Outreach Program. The Northwest Region includes the states of California, Hawaii, Idaho, Montana, Oregon, and Washington.

    Ms. Wilkie Gillette will work alongside Ms. Bree R. Black Horse who was appointed in February 2024 in the Eastern District of Washington to serve as the MMIP Assistant U.S. Attorney for the Northwest Region.

    “We are delighted that Cedar Wilkie Gillette will serve as northwest regional coordinator for the Justice Department’s MMIP Regional Outreach Program. This program is a critical next step in the department’s ongoing effort to address this crisis, which has affected tribes and communities across our region and country. Cedar is abundantly qualified for this position and we are eager for her to expand the great work she has done here in Oregon throughout the Northwest Region,” said Natalie Wight, U.S. Attorney for the District of Oregon.

    “There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”

    Launched in July 2023, the MMIP Regional Outreach Program permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered indigenous people. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, tribal, local, and state law enforcement and non-governmental partners on MMIP issues. 

    The regional outreach program program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to U.S. Attorney’s Offices promoting public safety in Indian Country and fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022. 

    The Department’s work to respond to the MMIP crisis is a whole-of-department effort. In March, the Departments of Justice and the Interior released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered indigenous peoples and human trafficking crisis.

    Over the past year, the Department awarded $268 million in grants to help enhance Tribal justice systems and strengthen law enforcement responses. These awards have also gone toward improving the handling of child abuse cases, combating domestic and sexual violence, supporting Tribal youth programs, and strengthening victim services in Tribal communities.

    For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website. Click here for more information about reporting or identifying missing persons.

    In early 2022, the District of Oregon established an MMIP Working Group to increase multi-agency communication and collaboration in support of and response to Oregon-connected MMIP cases. The working group includes representatives from each of the nine federally recognized Tribes in Oregon, the FBI, Bureau of Indian Affairs, U.S. Department of Interior Regional Solicitor’s Office, U.S. Marshals Service, Oregon Department of Justice, Oregon State Medical Examiner’s Office, and Oregon State Police.

    Prior to joining the U.S. Attorney’s Office in 2020, Ms. Wilkie Gillette served as a law fellow for Earthjustice, a nonprofit environmental law organization. She has a juris doctorate from the Vermont Law School and a bachelor’s degree in applied social justice and human rights activism from the University of Minnesota. Ms. Wilkie Gillette is an enrolled member of the Mandan, Hidatsa, and Arikara Nation and a direct descendant of the Turtle Mountain Band of Chippewa. She has conducted extensive research on indigenous human rights and environmental justice issues.

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  • MIL-OSI Security: Hot Springs Man Sentenced to 27 Months for Pandemic Funds Fraud

    Source: US FBI

                Hot Springs, Arkansas – David Clay Fowlkes, United States Attorney for the Western District of Arkansas, announced that on May 26, 2022, James Heritage, 39 of Hot Springs, Arkansas, was sentenced to 27 months in prison and ordered to pay $469,082.73 in restitution after pleading guilty to two counts relating to fraud committed against the United States Small Business Administration’s Paycheck Protection Program (PPP) and numerous state unemployment benefits administrators.

    According to plea documents in the case, Heritage applied for and received a PPP loan for $183,937.32, using falsified employee and payroll data.  In addition, Heritage applied for and received Pandemic Unemployment Assistance, a supplemental form of unemployment benefits, from thirty different states, by falsely representing to those states’ benefits administrators that he was eligible for the benefits.

    Both the Paycheck Protection Program and Pandemic Unemployment Assistance program are parts of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law passed in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.

    The case was investigated by the Department of Labor Office of the Investigator General, the Federal Bureau of Investigations, the United States Postal Inspection Service, and the Small Business Administration Office of the Inspector General. Assistant United States Attorney Hunter Bridges prosecuted the case for the United States.

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

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

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  • MIL-OSI Security: Tigard Repeat Offender Sentenced to Federal Prison for Transporting a Victim Across State Lines for Illegal Sexual Activity and Laundering Proceeds Through a Bottled Water Company

    Source: US FBI

    PORTLAND, Ore.—A Tigard, Oregon man with a lengthy criminal history was sentenced to federal prison today for transporting an adult victim across state lines for illegal sexual activity and laundering the proceeds through a Portland-based bottled water company.

    Johnell Lee Cleveland, 42, was sentenced to 108 months in federal prison and seven years’ supervised release. He was also ordered to pay $32,115 in restitution to the Oregon Department of Employment. The sum of restitution Cleveland must pay to his adult victim will be determined at a later date.

    “In the summer of 2020, Johnell Cleveland received a rare early release from federal prison he could have used as an opportunity to chart a new path away from criminality. Unfortunately, he did the exact opposite, diving headfirst into a remarkable series of crimes,” said Steven T. Mygrant, Chief of the Narcotics and Criminal Enterprises Unit of the United States Attorney’s Office for the District of Oregon. “We thank the FBI, IRS, and PPB for their efforts in holding Cleveland accountable and securing this nine-year prison sentence.” 

    “Johnell Cleveland has demonstrated a flagrant disregard for the law,” said Douglas A. Olson, Special Agent in Charge of the FBI Portland Field Office. “Even after serving a prison term, Cleveland continued his chronic criminal behavior with money laundering, wire fraud, and transporting an adult victim for illegal sexual activity. The FBI, along with our partners, is dedicated to maintaining the safety of our communities, and with Cleveland behind bars, our community is more secure.”

    “30 days is long enough to form positive habits; it is also more than long enough to return to bad ones, as Mr. Cleveland unfortunately chose to do,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (CI), Seattle Field Office. “Given a second chance, Mr. Cleveland did not choose to better himself. Instead, he proceeded to cause immense harm to the people and to the communities around him. This sentencing shows that CI, along with our partners in law enforcement, will bring justice to repeat offenders as many times as needed, as Mr. Cleveland is finding out today.”

    According to court documents, in July 2019, Cleveland was sentenced to 57 months in federal prison for distributing cyclopropyl fentanyl, possessing a machine gun and money laundering. In the summer of 2020, nineteen months before his original projected release date, Cleveland sought and was granted a compassionate release from prison based on health risks associated with the COVID-19 pandemic.

    Less than 30 days following his release from prison, Cleveland and an associate submitted a fraudulent insurance policy application for nine pieces of jewelry previously seized by law enforcement. Approximately four months after Cleveland and his associate were issued an insurance policy worth more than $100,000, his associate submitted a false burglary report to the Las Vegas Police Department claiming her Mercedes-Benz sedan and various personal property, including the nine pieces of insured jewelry, had been stolen. Seeking reimbursement, Cleveland quickly notified his insurance company of the purported jewelry theft.

    While his insurance fraud scheme was ongoing, in October 2020, Cleveland devised a separate scheme to fraudulently obtain COVID relief program funds. On October 14, 2020, he applied for Pandemic Unemployment Assistance (PUA) benefits for a five-month period beginning in April 2020, claiming he was unemployed because of the COVID-19 pandemic. In reality, Cleveland was unemployed during this time because he was in federal prison. Despite his false claims, Cleveland’s application was approved, and he began receiving PUA benefits.

    Investigators later learned that during this same time period, Cleveland transported for illegal sexual activity an adult woman he had, in August 2020, commenced a romantic relationship with. Cleveland told the woman that he needed money to get his business ventures off the ground and fund their future together. Over time, Cleveland became less friendly and more menacing toward the woman, demanding she travel frequently and engage in more commercial sex. Meanwhile, Cleveland kept all the money the woman earned and threatened her with various punishments he claimed to have used on other women, including locking her in a dog cage.

    To conceal and disguise the nature of his victim’s proceeds, Cleveland used the money to pay business expenses for the bottled water company, including costs for bottling and manufacturing, rental of corporate office space in Portland, merchandising, and a monthly retainer with a modeling agency.

    On November 3, 2021, Cleveland was arrested without incident in Portland. The same day, investigators seized Cleveland’s vehicle. A subsequent search of the vehicle resulted in the discovery of a secret compartment in the driver-side door that concealed a loaded handgun.

    On October 19, 2021, a federal grand jury in Portland returned an indictment charging Cleveland and his insurance fraud associate with conspiring to commit and committing wire fraud. Later, in on March 10, 2022, Cleveland was indicted a second time for sex trafficking by force, fraud, and coercion; illegally possessing a firearm as a convicted felon; and money laundering. 

    On February 4, 2024, Cleveland pleaded guilty to both counts of his fraud indictment and a three-count superseding criminal information charging him with transportation for illegal sexual activity, illegally possessing a firearm as a convicted felon, and money laundering.

    This case was investigated by the FBI, IRS CI, and the Portland Police Bureau Human Trafficking Unit. It was prosecuted by Peter Sax and Nicole Bockelman, Assistant U.S. Attorneys for the District of Oregon.

    If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.

    Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In February 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.

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  • MIL-OSI Security: Hartford Man Sentenced to 30 Years for Sexual Exploitation of a Child

    Source: US FBI

                Montgomery, Alabama – On Tuesday, June 7, 2022, Steven Anthony Jackson, a 21-year-old from Hartford, Alabama, was sentenced to 360 months in prison for sexual exploitation of a child, announced United States Attorney Sandra J. Stewart. Following his 30-year prison sentence, Jackson will be on supervised release for the remainder of his life and will be required to register as a sex offender. There is no parole in the federal system.

                According to his plea agreement and other federal court documents, Jackson specifically admitted that, in 2019, he enticed a 12-year-old girl to send nude photos to him via computer or smartphone. Jackson pleaded guilty to the charge on April 18, 2022.

                This case was investigated by FBI offices in Mobile, Alabama; Little Rock, Arkansas; and Columbus, Ohio, along with the Alabama Law Enforcement Agency, the Geneva County, Alabama Sheriff’s Office; and the Knox County, Ohio Sheriff’s Office. Assistant United States Attorney J. Patrick Lamb prosecuted the case.

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  • MIL-OSI Security: FBI Warns Public to Beware of Scammers Impersonating FBI Agents and Other Government Officials

    Source: US FBI

    PORTLAND, OR—The FBI Portland Division has seen an increase in reports of scammers falsely representing themselves as FBI agents, or a representative of another government agency, and sending couriers to pick up cash or gold payments.

    Be advised, federal agencies do not call or e-mail individuals threatening arrest or demanding money. Scammers often spoof caller ID information, and these phone calls are fraudulent even if they appear to be coming from an agency’s legitimate phone number. Recipients should hang up immediately and report the call.

    There are many versions of the government impersonation scam, and they all exploit intimidation tactics. Typically, scammers will use an urgent and aggressive tone, refusing to speak to or leave a message with anyone other than their targeted victim; and will urge victims not to tell anyone else, including family, friends, or financial institutions, about what is occurring.

    Payment is demanded in various forms, in this new version of the scam, victims are asked to withdraw money as either cash or gold and give that to a courier who arrives at their home. Other tactics include prepaid cards, wire transfers, and cash, sent by mail or inserted into cryptocurrency ATMs. Victims are asked to read prepaid card numbers over the phone or text a picture of the card.

    According to the Internet Crime Complaint Center (IC3), 14,190 people reported being victims of government impersonation scams in 2023, with losses totaling more than $394 million dollars. Here in the Portland Division, which includes all of Oregon, financial losses exceeded $1.7 million dollars in 2023.

    The scammers typically target older adults. In 2023, almost half the complainants reported to be over 60 (40%), and experienced 58% of the losses (almost $770 million) nationally. Complainants over the age of 60 lost more to these scams than all other age groups combined, and reportedly remortgaged/foreclosed homes, emptied retirement accounts, and borrowed from family and friends to cover losses in these scams. Some incidents have resulted in suicide because of shame or loss of sustainable income.

    The FBI will never:

    • Call or e-mail private citizens to demand payment or threaten arrest. You will also not be asked to wire a “settlement” to avoid arrest.
    • Ask you to use large sums of your own money to help catch a criminal.
    • Ask you for wire transfers or gift cards.
    • Call you about “frozen” Social Security numbers or to coordinate inheritances.

    Scams impersonating the FBI and other government agencies are a persistent problem and can also occur via e-mail. Common hallmarks of a scam e-mail include misspellings, missing words, and incorrect grammar. Fraudulent e-mails may give the appearance of legitimacy by using pictures of the FBI Director and/or the FBI seal and letterhead.

    Members of the public seeking to confirm that they have been contacted by an actual FBI employee are encouraged to call the FBI Portland Division at 503-224-4181 and ask to be connected directly.

    If you think you are a victim of this, or any other online scam please file a report with your local law enforcement agency and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.

    More information about government impersonation schemes and other online fraud schemes can be found at https://www.fbi.gov/scams-and-safety/common-fraud-schemes.

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  • MIL-OSI Security: Jury Finds Doctor Guilty in $10 Million TRICARE Scheme

    Source: US FBI

          LITTLE ROCK—An Alexander doctor has been convicted for his involvement in a multi-million-dollar kickback conspiracy at the conclusion of a week-long trial. A federal jury found Joe David “Jay” May, 41, guilty on all 22 counts for which he was indicted.

          The jury returned their verdict Thursday evening after deliberating for about three hours. United States District Judge Kristine Baker presided over the trial, and Judge Baker will sentence May at a later date. 

          “Dr. May used his signature as a rubber stamp to help his friends rake in millions of dollars in kickbacks from fraudulent prescriptions,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “His crimes are a reprehensible abuse of his Hippocratic oath and his medical license. Our office and our federal law enforcement partners at the FBI and Department of Health and Human Services Office of Inspector General (HHS-OIG) are resolved to continue to bring to justice all other health care professionals who defraud our nation’s healthcare systems.”

          A grand jury returned an indictment against May in January 2020. The indictment alleged that May signed off on illegitimate prescriptions for pain cream in order to trigger a payout from TRICARE, the nation’s insurance for veterans.  A pharmacy promoter paid recruiters to find TRICARE beneficiaries, regardless of whether they needed the drugs, and then paid others to get medical professionals, including Jay May, to rubber stamp prescriptions for TRICARE beneficiaries.

          TRICARE paid over $12 million for compounded drugs prescribed through this scheme. Evidence at trial indicated that May wrote 226 prescriptions over the course of ten months, for which TRICARE paid $4.63 million. All but one of those prescriptions were supplied by drug sales representatives, Glenn Hudson and Derek Clifton, both of whom have pleaded guilty in the scheme, and directed to prescribers, May and a nurse practitioner named Donna Crowder, who has also pleaded guilty. May accepted cash bribes totaling nearly $15,000 and signed off on the prescriptions without consulting patients and without determining whether or not the prescription was needed.

          One recruiter hosted a meeting at Fisher Armory in North Little Rock. At that meeting, he signed people up for the drugs and offered to pay them $1,000. Thirteen of those patients were routed to Dr. May, who signed each prescription, and this group alone cost TRICARE $370,000. The conspirators learned that reimbursements from TRICARE might fall in May 2015, so April was the last opportunity to profit from the program. In the last ten days of April 2015, May signed 59 prescriptions, for which TRICARE paid $1.4M. During a single 9-week period at the height of the scheme, May deposited $9,925 cash; an FBI forensic accountant testified this was more cash than he deposited in 2014 and 2016 combined.

          “TRICARE is dedicated to serving our veterans, military members, and their families,” said FBI Little Rock Special Agent in Charge James Dawson. “Dr. May displayed a lack of integrity by defrauding millions from our nation’s military insurer and lying to our Agents in an effort to conceal his crimes. The FBI is committed to working alongside our partners at the U.S. Attorney’s Office to protect our service members and their loved ones from corrupt medical professionals like Dr. May.”

          “Dr. May engaged in a kickback scheme that undermined federal health care programs,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “This verdict is a testament to strong law enforcement partnerships committed to holding physicians accountable for providing quality care to beneficiaries of these programs,” said HHS-OIG Special Agent in Charge Miranda Bennett.

          The statutory penalties for May’s convictions are: wire fraud, mail fraud, and falsifying records, not more than 20 years imprisonment; violation of the anti-kickback statute, not more than 10 years imprisonment; and conspiracy and making false statements, not more than five years imprisonment. In addition to any sentence imposed, May will also serve an added four years for convictions on two counts of aggravated identity theft. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not more than three years of supervised release.

          The investigation was conducted by the FBI and HHS-OIG. The case was prosecuted by Assistant United States Attorneys Alexander Morgan and Stephanie Mazzanti.           

    # # #

    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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  • MIL-OSI Security: Arkansas Man Sentenced to 50 Years in Federal Prison for Sexual Exploitation of a Minor

    Source: US FBI

    FAYETTEVILLE – A Tontitown man was sentenced today to 600 months in prison without the possibility of parole on two counts of Sexual Exploitation of a Minor via Production of Child Pornography. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.

    According to court documents, in July 2021 Agents with the Federal Bureau of Investigations received a lead regarding the exchange of child sexual abuse material between an individual in Florida with a user located in Tontitown, Arkansas. The investigation led the FBI to Joshua Paul Brown, 32.

    A residential search warrant was obtained and executed at Brown’s residence. Subsequent forensic examination of the electronics taken from Brown’s residence revealed Brown had produced multiple videos of child sexual abuse material with a minor. 

    Brown was indicted by a Grand Jury in the Western District of Arkansas in November 2021 and entered a plea of guilty in February 2022.

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

    The FBI, Benton County Sheriff’s Office and Tontitown Police Department investigated the case.

    Assistant U.S. Attorney Carly Marshall prosecuted the case.

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

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  • MIL-OSI Security: Butte County Man Indicted for Child Enticement

    Source: US FBI

    SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Kevin Leslie Gipson, 58, of Oroville, charging him with attempted coercion and enticement of a minor to engage in sexual activity, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Gipson attempted to persuade, coerce, and entice a minor to engage in oral copulation and to commit lewd and lascivious acts on a child under 14 years old.

    This case is the product of an investigation by the Sacramento Sheriff’s Office, the Sacramento Valley Hi-Tech Crimes Task Force/Internet Crimes Against Children Task Force and the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica Delaney is prosecuting the case.

    If convicted, Gipson faces a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

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  • MIL-OSI Security: FBI Cleveland Seeking Candidates to Fill Two Mission Critical Positions for Its Downtown Cleveland Location

    Source: US FBI

    CLEVELAND, OH—FBI Cleveland announced it is seeking candidates to fill two positions during a mission-critical hiring campaign for its downtown Cleveland field office:

    Data Analyst

    This on-site role is well suited for the candidate with coding, mathematics, statistics, data analysis, and data visualization experience. Candidates must have the following education or combination of education and work experience, including a bachelor’s degree from a U.S.-accredited college or university in:

    • Computer Science
    • Engineering
    • Information Science
    • Information Systems Management
    • Mathematics
    • Operations Research
    • Statistics – Technology Management

    or, a combination of education and experience, to include 24 course hours in one or more of the fields above. Starting at $44k – range to $123,584

    Digital Operations Specialist

    This role is ideal for the technical expert who will serve on our investigative teams and specialize in criminals’ use of technology. The incumbent will be skilled in computer science and familiarity with different operating systems, physical computer components and architectures, virtual machines, and scripting. Additionally, have knowledge of networking and routing protocols, network securities methodologies, and operations of various communications media, and knowledge of common computer and network methods of infection, and attack methods and techniques.

    Candidates must have a combination of education and work experience, including a bachelor’s degree from a U.S.-accredited college in a related discipline. Starting at $55k – range to $90k.

    The FBI offers a full suite of benefits, including annual leave, 11 federal holidays, sick leave starting at 13 days, Military and Parental leave, wellness hours, and free on-site parking. For a complete listing of benefits and FBI employment eligibility requirements, visit FBIjobs.gov.

    Interested candidates for these positions can send their resumes directly to the hiring manager at Applicants.cv@fbi.gov with the name of the position in the subject line. No phone calls, please.

    The FBI is the nation’s premier law enforcement agency with a worldwide presence and 56 field offices across the United States and serves to uphold the U.S. Constitution and protect the American Public. FBI Cleveland covers the 40 northern-most counties of the state encompassing close to 6 million people and is home to over 300 Special Agents and professional staff among its downtown Cleveland headquarters and eight resident agencies.

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  • MIL-OSI Security: Brazilian Man Charged with Making Extortionate Threats to Publicize Stolen Data Obtained by Unlawful Computer Intrusion

    Source: US FBI

    Newark, N.J. – A citizen and resident of Brazil was charged with making extortionate threats to publicize data stolen from the Brazilian subsidiary of a New Jersey company, U.S. Attorney Philip R. Sellinger announced.

    Junior Barros De Oliveira, 29, of Curitiba, Brazil was charged with four counts of extortionate threats involving information obtained from protected computers in violation of Title 18, United States Code, Section 1030(a)(7)(B) and four counts of threatening communications in violation of Title 18, United States Code, Section 875(d) in an indictment unsealed today in Newark federal court.

    According to the Indictment:

    In March 2020, De Oliveira gained unauthorized access and exceeded authorized access to the computer systems of Victim 1-Brazil, the Brazilian subsidiary of a New Jersey company.  Exploiting this access, De Oliveira obtained confidential customer information relating to approximately 300,000 customers of Victim 1-Brazil.  In September 2020, De Oliveira began contacting U.S. representatives of Victim 1, including its CEO, in an attempt to extort money from Victim 1-Brazil.  De Oliveira demanded over approximately $3,000,000 in Bitcoin in exchange for keeping the stolen data confidential and not publicizing it.

    Each of the four counts of making extortionate threats in relation to information obtained from protected computers carry a maximum prison term of 5 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater.  Each of the four counts of threatening communications carry a maximum prison term of 2 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater.

    U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation (“FBI”)’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado.

    The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark.

    The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

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  • MIL-OSI Security: Chief Science Officer of Publicly Traded Health Care Company Charged for Insider Trading Scheme Utilizing 10b5-1 Trading Plans

    Source: US FBI

    Second Indictment Stemming from Fraud Section’s Data-Driven Initiative to Identify 10b5-1 Trading Plan Abuses

    Note: View a copy of the indictment here.

    An indictment was unsealed today charging a former U.S. citizen with engaging in an insider trading scheme involving the stock of Humanigen Inc., a publicly traded biopharmaceutical company. Dale Chappell, 54, who was formerly the chief scientific officer and member of the Board of Directors of Humanigen, was arrested on Dec. 20 in Switzerland based on the U.S. criminal charges. The United States will seek Chappell’s extradition to stand trial in the District of New Jersey.

    According to court documents, between June and August of 2021, Chappell avoided more than $38 million in losses by selling millions of shares of Humanigen stock while in possession of material nonpublic information about Humanigen’s application to the Food and Drug Administration (FDA) for approval of a drug to treat COVID-19 called Lenzilumab. Chappell — who sold the Humanigen shares through funds that he controlled — is alleged to have engaged in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Humanigen stock.

    The indictment alleges that, in March 2021, Humanigen announced that it planned to seek emergency use authorization (EUA) for Lenzilumab. However, between April and May 2021, FDA staff allegedly informed Humanigen that Humanigen was unlikely to meet the criteria for issuance of an EUA. As alleged, knowing that this information was not disclosed publicly by Humanigen, Chappell sold the funds’ Humanigen stock, and later also implemented Rule 10b5-1 plans to trade more Humanigen stock holdings. After Humanigen publicly announced that the FDA had declined EUA approval for Lenzilumab, Humanigen’s stock price declined approximately 50%.

    Chappell is charged with one count of engaging in a securities fraud scheme and four counts of securities fraud for insider trading. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme charge and 20 years in prison on each of the insider trading charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The case is part of a data-driven initiative led by the Criminal Division’s Fraud Section to identify executive abuses of 10b5-1 trading plans. Chappell’s alleged trading was identified by the Fraud Section through its data-analytics tools. A Rule 10b5-1 trading plan, which allows a corporate insider of a publicly traded company to set up a plan for selling company stock, can offer an executive a defense to insider-trading charges. However, the defense is unavailable if the executive is in possession of material nonpublic information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5‑1.

    Principal Deputy Assistant Attorney General Brent Wible, head of the Justice Department’s Criminal Division; U.S. Attorney Philip R. Sellinger for the District of New Jersey; and Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division made the announcement.

    The FBI is investigating the case. The Justice Department’s Office of International Affairs is handling the request for Chappell’s extradition.

    Trial Attorneys David Austin and Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Romano for the District of New Jersey are prosecuting the case.

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

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  • MIL-OSI Security: Essex County Man Charged with Firearms and Drug Trafficking Offenses

    Source: US FBI

    NEWARK, N.J. – An Essex County man has been indicted for firearms and narcotics offenses, U.S. Attorney Philip R. Sellinger announced.

    Raishaun Lofton, 30, of Newark, New Jersey, was charged by indictment with one count of possession of a firearm and ammunition by a convicted felon, one count of possession of ammunition by a convicted felon, one count of possession with intent to distribute fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime.  He appeared today before United States Magistrate Judge Almonte in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    On February 22, 2024, during an investigation, police officers recovered from Lofton a privately made firearm with no serial number, nine rounds of 9mm ammunition, 81 glassine envelopes containing fentanyl, and plastic jugs commonly used to distribute illegal drugs.  On April 22, 2024, video surveillance footage depicted Lofton firing a different firearm into the air during an argument.  One of the bullets from the firearm that Lofton shot entered a nearby living room where a family with two children was watching a movie.  During the subsequent investigation, law enforcement recovered the firearm that Lofton had fired.

    The two counts of possession of a firearm and ammunition by a convicted felon each carry a maximum sentence of 15 years in prison and a maximum fine of $250,000.  The count of possession with intent to distribute fentanyl carries a maximum sentence of 20 years in prison and a maximum fine of $1,000,000.  The count of possession of a firearm in furtherance of a drug trafficking offense carries a mandatory minimum sentence of five years in prison, which must run consecutively to the sentence imposed on the other counts, a maximum sentence of life in prison, and a maximum fine of $250,000.

    U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda, with the investigation that led to the charges.

    The government is represented by Assistant U.S. Attorney Eli Jacobs of the General Crimes Unit in Newark.

    The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

    Defense counsel: Tatiana Nnaji, Esq., Assistant Federal Public Defender, Newark

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  • MIL-OSI Security: Essex County Convicted Felon Admits Drug Trafficking and Possession of Firearms, Including Two Assault Rifles

    Source: US FBI

    NEWARK, N.J. – An Essex County, New Jersey, man today admitted distributing cocaine, possessing with intent to distribute cocaine and heroin, and possessing three firearms, including two assault rifles with high capacity magazines, U.S. Attorney Philip R. Sellinger announced.

    Azmar Carter, a/k/a “Bizzy,” 32, of East Orange, pleaded guilty before U.S. District Judge Madeline Cox Arleo to a superseding information charging him with two counts of distribution and possession with intent to distribute cocaine, possession of firearms and ammunition by a convicted felon, and possession with intent to distribute heroin and cocaine.

    According to documents filed in this case and statements made in court:

    In 2021, law enforcement began investigating a drug trafficking organization that operates primarily in and around Orange, New Jersey and distributes narcotics throughout Essex County. During the investigation, Carter distributed cocaine to law enforcement in May 2021 and in July 2021. Subsequently, on August 18, 2021, law enforcement searched Carter’s residence and car in East Orange, New Jersey and recovered the following items: one Draco AK 47 rifle; one Smith and Wesson AR rifle; one .40 caliber pistol; ninety-four rounds of associated ammunition; a distribution quantity of heroin and cocaine; and approximately $7,177.00.

    The drug trafficking offenses carry a maximum potential penalty of 20 years in prison, and a fine of $1 million.  The possession of firearms and ammunition by a convicted a felon offense carries a maximum potential penalty of 10 years in prison, and a maximum fine of $250,000.  Sentencing is scheduled for April 30, 2024.

    U.S. Attorney Sellinger credited special agents and members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; members of the Orange Police Department, under the direction of Police Director Todd Warren, Chief Vincent Vitiello and Captain Brian Mooney; members of the Elizabeth Police Department, under the direction of Chief of Police Giacomo Sacca and Police Director Earl J. Graves; members of the East Orange Police Department, under the direction of Chief Phyllis Bindi; member of the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda and Chief of Police Sharonda Morris; and the Belleville Police Department, under the direction of Chief Mark Minichini, with the investigation leading to the charges and arrests.

    This case is part of Operation Orange, which is a part of the Newark Violent Crime Initiative (VCI), which was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, N.J. State Parole, Union County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, N.J. Department of Corrections, the East Orange Police Department, the Orange Police Department and the Irvington Police Department.

    The government is represented by Assistant U.S. Attorney Benjamin Levin, Chief of the General Crimes Unit in Newark.

    Defense counsel: Christopher D. Adams, Esq.
     

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  • MIL-OSI Security: Springfield Man Sentenced to 14 Years in Federal Prison for Repeatedly Possessing and Distributing Child Sexual Abuse Material

    Source: US FBI

    EUGENE, Ore.—A Springfield, Oregon man was sentenced to federal prison today for repeatedly possessing and distributing photos and videos depicting child sexual abuse.

    Randy Lee Cook, 43, was sentenced to 168 months in federal prison and a life term of supervised release.

    According to court documents, in 2006, Cook was convicted of state child pornography charges in Missouri and served a significant prison sentence for sending child sexual abuse material to a minor, engaging in sexual chats with the minor, and then engaging in additional sexual chats with an undercover law enforcement officer posing as a minor and propositioning the decoy minor for sex. Following his release from prison, Cook was required to register as a sex offender.

    In the summer of 2020 and spring of 2021, investigators learned that Cook had resumed distributing child sexual abuse material online, this time using Kik Messenger, an instant messaging mobile application. Investigators traced multiple Kik accounts to Cook and learned he was residing in Springfield. On June 11, 2021, investigators executed search warrants on Cook’s residence, truck, and person. Cook’s phone was found to contain approximately 194 images and 63 videos depicting child sexual abuse.

    In July 2021, Cook was charged by criminal complaint with possessing and distributing child pornography and arrested. On July 20, 2023, a federal grand jury in Eugene indicted him on the same charges.

    In December 2023, while Cook’s case was being litigated, an FBI task force officer in Louisiana investigating an unrelated matter began conversing with an individual on Kik who was later determined to be Cook. In conversations online with the officer, Cook claimed to have engaged in sex acts with children and sent the agent an explicit video of a child. On December 14, 2023, Cook was arrested a second time when he was leaving his Springfield residence to plead guilty in federal court.

    On January 24, 2024, Cook pleaded guilty to three counts of distributing child pornography and one count of possessing child pornography.

    This case was investigated by the FBI Eugene Resident Agency with assistance from the FBI New Orleans Field Office, Lane County Sheriff’s Office, Bossier Parish Sheriff’s Office, and Shreveport Police Department. It was prosecuted by William McLaren, Marco Boccato, and Mira Chernick, Assistant U.S. Attorneys for the District of Oregon.

    Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

    Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, they re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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  • MIL-OSI Security: Jersey City Gang Member Charged with Violent Crime in Aid of Racketeering and Weapons Offense for Role in Shooting

    Source: US FBI

    NEWARK, N.J. – A member of the Rutgers neighborhood street gang operating in the area of Triangle Park in Jersey City, New Jersey, is charged for his role in shooting rival gang members, U.S. Attorney Philip R. Sellinger announced.

    Micah Reid, aka “Nips,” 33, of Jersey City is charged by complaint with one count of violent crime in aid of racketeering activity and one count of discharging of a firearm during a crime of violence.  Reid made his initial appearance today before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    Reid is a high-ranking member and associate of the Rutgers neighborhood street gang, which operates in the area of Triangle Park in Jersey City.  The gang has historically engaged in retaliatory acts of violence against rival neighborhood street gangs operating in the area of the Salem Lafayette Apartments and the area of Wilkinson Avenue, Ocean Avenue, Martin Luther King Drive, and Wegman Parkway.  

    On October 1, 2023, Reid, driving a stolen vehicle, shot at members and associates of rival street gangs who were exiting a nightclub on Culver Avenue in Jersey City.  In total, six individual suffered gunshot wounds.  Law enforcement later recovered the firearm used in the shooting from Reid’s residence while executing a search warrant.  

    Reid faces a maximum sentence of 30 years in prison on the violent crime in aid of racketeering charge, and a statutory mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison on the firearm offense, which must run consecutively to any other sentence imposed.  Both offenses carry a maximum fine of $250,000.

    U.S. Attorney Sellinger credited investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge L.C. Cheeks Jr., and the Jersey City Police Department, under the direction of Director James Shea, with the investigation leading to the charges.

    This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

    The government is represented by Assistant U.S. Attorney Alison Thompson of the General Crimes Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
     

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  • MIL-OSI Security: U.S. Attorney’s Office Secures Guilty Plea in Fatal DUI Case

    Source: US FBI

    ALBUQUERQUE – A Farmington man entered a guilty plea to one count of involuntary manslaughter stemming from a fatal car crash in 2024.

    There is no parole in the federal system.

    According to court documents, on September 22, 2024, Irvin Virgil Wauneka, Jr., 35, an enrolled member of the Navajo Nation, was operating a motor vehicle while under the influence of alcohol, having consumed approximately half a pint of Jim Beam whiskey. Jane Doe was a passenger in the vehicle. Wauneka‘s impaired driving resulted in a head-on collision with another motor vehicle. Tragically, Jane Doe suffered fatal injuries and was pronounced dead at the scene of the crash.

    At sentencing, Wauneka faces up to eight years, followed by three years of supervised release.

    Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Farmington Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant U.S. Attorney Brittany DuChaussee is prosecuting this case.

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  • MIL-OSI Security: Convicted Felon Sentenced to More Than Six Years in Prison on Gun Charge

    Source: US FBI

    TUSCALOOSA, Ala. –  A federal judge yesterday sentenced a Demopolis man for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    Chief U.S. District Court Judge L. Scott Coogler sentenced Terrance Jamela Armstead, 31, of Demopolis, Alabama, to 80 months in prison. Armstead pleaded guilty to one count of being a felon in possession of a firearm in October 2022.  

    According to court documents, on October 13, 2020, the assistant police chief of the Eutaw Police Department was at the One Stop gas station in Eutaw.  While there, he observed a fight between Armstead and another individual.  The assistant chief intervened and sprayed both individuals with pepper spray.  Armstead succumbed to the pepper spray and attempted to run, but fell.  In taking him into custody, the assistant chief recovered a Smith & Wesson .40 caliber semi-automatic pistol from Armstead’s waistband.  The pistol had been reported stolen to the Eutaw Police Department a few months prior to the incident. 

    “The illegal possession of a firearm by a convicted felon risks turning any minor dispute into a deadly confrontation,” said U.S. Attorney Escalona.  “We are grateful for the actions of the Eutaw Police in this case to prevent further violence.” 

    The FBI investigated the case, along with the Eutaw Police Department.  Assistant U.S. Attorney Alan Baty prosecuted the case.

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  • MIL-OSI Security: Trussville Man Charged in Multi-Million-Dollar Kickback and Health Care Fraud Case

    Source: US FBI

    BIRMINGHAM, Ala. – Another individual has been charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

    A federal grand jury yesterday week returned a five-count indictment against John Alan Robson, 40, of Trussville, on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to the indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson allegedly conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers.

    One of those services was electro-diagnostic testing provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. According to the indictment, medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks.

    The case against Robson is related to several other cases that have resulted in convictions in the last year. Dr. Eric Beck, 64, of Huntsville, pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme. John Hornbuckle, 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray, 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered.

    Early last year, a jury convicted Dr. Mark Murphy, 65, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman, 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers and received payments for the prescriptions he generated.

    Beck, Hornbuckle, Ray, Mark Murphy, Jennifer Murphy, and Bowman are all awaiting sentencing. Other co-conspirators have already been sentenced.

    The maximum penalty for conspiracy to commit health care fraud is ten years in prison; the maximum penalty for conspiracy to receive kickbacks is five years in prison; each kickback count also carries up to ten years.

    The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it. 

    An indictment contains only charges.  Each defendant is presumed innocent unless and until proven guilty.

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  • MIL-OSI Security: Two Individuals Sentenced for Kidnapping Resulting in Death

    Source: US FBI

    BIRMINGHAM, Ala. – A federal judge today sentenced two individuals, in separate but related cases, for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge L. Scott Coogler sentenced Patrick Devone Stallworth, 42, and Derick Irisha Brown, 32, both of Birmingham, to life in prison.  Stallworth and Brown were convicted in 2022 of one count of kidnapping and one count of conspiracy to kidnap a minor victim. The jury further found that the minor victim’s death resulted from the kidnapping.

    According to court documents, on October 12, 2019, Birmingham Police Department responded to a report that a three-year-old girl was missing near the Tom Brown Village Housing Development in Birmingham, Alabama. Stallworth and Brown traveled in a Toyota Sequoia to the Tom Brown Village Housing Development on that day and kidnapped 3-year-old Kamille “Cupcake” McKinney.  Her body was found on October 22, 2019.  

    “There is no greater responsibility for federal law enforcement than to investigate and prosecute those who commit senseless and horrendous acts of violence against young children.” U.S. Attorney Escalona said. “I want to personally thank the dozens of law enforcement members and community volunteers who assisted in both big and small ways in the investigation and bringing justice to the victim and her family.”

    “While today’s sentencing can’t take away the pain or fill the void of loss for Kamille’s family, I sincerely hope there is some comfort in knowing those who committed this heinous crime have been brought to justice,” SAC Peeples said.  “The FBI and its’ law enforcement partners are committed to bringing to justice those who seek to prey on our children, the most vulnerable members of our society”.

    The Federal Bureau of Investigation and the Birmingham Police Department investigated the case, with assistance from the United States Marshals Service.  Chief of the Criminal Division Lloyd C. Peeples and Assistant U.S. Attorneys Blake Milner and Brittany Byrd prosecuted the case. 

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  • MIL-OSI Security: Pain Clinic Owners Sentenced for Unlawfully Distributing Opioids and Multi-Million-Dollar Health Care Fraud

    Source: US FBI

    BIRMINGHAM, Ala. – A judge sentenced a Tennessee physician and his wife yesterday for unlawfully distributing opioids and defrauding insurers through their now-shuttered Alabama clinics.  

    Chief U.S. District Court Judge L. Scott Coogler sentenced Mark Murphy, 66, and his wife, Jennifer Murphy, 66, both of Lewisburg, each to twenty years in prison for conspiracy to unlawfully distribute controlled substances and conspiracy to commit health care fraud, along with various substantive counts related to the same, and conspiring to defraud the United States and receiving kickbacks. 

    “Dr. Murphy and his wife preyed on countless vulnerable patients and stole tens of millions of dollars from Medicare and other taxpayer-funded health insurance programs,” said U.S. Attorney Escalona.  “Our office will continue to prosecute drug dealers and health care fraudsters to the full extent of the law.” 

    “The abuse of prescription drugs, especially opioids, is a serious problem in our communities,” said DEA Assistant Special Agent in Charge Towanda Thorne-James. “All too often, this abuse leads to addiction, shattered lives, and even death.  For the health and safety of our citizens, DEA and our law enforcement partners will continue to target those who illegally distribute these potentially dangerous drugs.  We hope that the sentences in this case serve as a reminder to anyone who might illegally divert pharmaceuticals that they will be held accountable for the harm they cause.”

    “Mark and Jennifer Murphy learned today that unlawfully distributing controlled substances, committing health care fraud, and receiving kickbacks comes with hefty legal consequences,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Their conviction today serves as a lesson to others who think no one is paying attention.”

    According to court documents and evidence presented at trial, Mark Murphy and Jennifer Murphy owned and operated North Alabama Pain Services (NAPS), which closed its Decatur and Madison offices in early 2017.  Mark Murphy was the sole doctor at the two locations, and the evidence at trial showed that some patients went months or years without seeing him during their monthly office visits, even though they continued to get opioid prescriptions that he had pre-signed.  Over the approximately five-year period leading up to the clinic closing its Alabama locations, the evidence at sentencing showed, Murphy wrote prescriptions for more than ten million opioid pills, including millions of oxycodone 30 mg tablets.  During the same five-year period, Murphy and his wife Jennifer, who helped run the clinics, ordered tens of millions of dollars of unnecessary items and services that were paid by taxpayer-funded and private insurance programs. The Murphys received kickbacks for those orders and prescriptions.  In all, Medicare, TRICARE, and Blue Cross Blue Shield of Alabama were billed more than $280 million as a result of the fraud and kickback schemes, and paid more than $50 million.  Mark Murphy and Jennifer Murphy were each ordered to pay more than $50 million in restitution. Jennifer Murphy was also convicted of tax-related charges for underreporting clinic income.

    Also yesterday, co-conspirator, Christie Rollins, 52, of Petersburg, Tennessee, was sentenced to twenty-four months in prison for her role in selling medically unnecessary durable medical equipment and expensive topical creams at NAPS.  Rollins agreed to pay restitution of more than $564,000.

    Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Prim F. Escalona for the Northern District of Alabama; Special Agent in Charge Bradford L. Byerly of the Drug Enforcement Administration (DEA) New Orleans Field Division; Special Agent in Charge Carlton L. Peeples of the FBI Birmingham Division; Special Agent in Charge James E. Dorsey of IRS Criminal Investigation (IRS-CI) Atlanta Field Office; and Special Agent in Charge Tamela E. Miles of the Department of Health and Human Service Office of the Inspector General (HHS-OIG) Atlanta Region made the announcement.

    FBI, HHS-OIG, IRS-CI and DEA investigated the case.

    Assistant Chief Jillian Willis and Trial Attorney Emily Gurskis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney J.B. Ward of the Northern District of Alabama prosecuted the case.

    The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 90 defendants who are collectively responsible for distributing more than 105 million pills. The ARPO Strike Force is part of the Health Care Fraud Strike Force Program, which since March 2007 has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at: https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

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  • MIL-OSI Security: Birmingham Attorney Sentenced to More Than Eight Years in Prison for Possession of Child Pornography

    Source: US FBI

    Birmingham, Ala. – A federal judge sentenced a Birmingham attorney today for possession of child pornography announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge Annemarie Axon sentenced Chase Tristian Espy, 36, of Vestavia, to 97 months in prison followed by 20 years supervised release. Espy pleaded guilty to possession of child pornography in October 2022. Espy was also ordered to pay additional special assessments of $15,000.00 pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act and $5,000.00 pursuant to the Justice for Victims of Trafficking Act.  Assessments collected under these statutes are used to fund and enhance victim services. Espy was remanded into the custody of the U.S. Marshal.

    “No one is above the law, and today’s sentence sends a message to anyone who preys on innocent children.  We will use every tool available to us to investigate and prosecute those who target children for abuse,” U.S. Attorney Escalona said.  “I commend the hard work and commitment of our local, state, and federal law enforcement partners to bring this defendant to justice.” 

    In October 2022, Espy pleaded guilty to possession of child pornography arising out of events that occurred from March 2021 to August 2021.  Court documents reveal that the investigation was initiated when Espy engaged in online chats with an undercover law enforcement officer whom Espy believed was a 15-year-old girl.  Upon being arrested, Espy’s cell phone was seized, and a search warrant was obtained.  From this search, approximately 69 videos and four images of child sexual abuse material were found.

    The FBI Birmingham’s Child Exploitation Human Trafficking Task Force (CEHTTF), the Homewood Police Department, and the Alabama Law Enforcement Agency (ALEA) participated in this investigation.  Assistant U.S. Attorneys R. Leann White and Jonathan Cross are prosecuted the case.

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

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  • MIL-OSI Security: New Hope Man Sentenced for His Role in Multi-Million-Dollar Kickback and Health Care Fraud Cases

    Source: US FBI

    HUNTSVILLE, Ala. – A federal judge has sentenced another individual charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

    Last Friday, Chief United States District Court Judge L. Scott Coogler sentenced John Hornbuckle, 53, of New Hope, to 80 months in prison. In November 2022, Hornbuckle pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Between 2012 and 2018, Hornbuckle owned QBR. According to the plea agreement in Hornbuckle’s case, QBR billed insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Hornbuckle caused QBR to pay medical providers a per-patient fee for the tests they ordered from QBR that were reimbursed by insurers, including Medicare and other government health care programs. The payments were disguised as hourly payments for the provider’s time and the time of the provider’s staff, but the provider was actually paid a fee per patient who received a test. Insurance programs paid more than nine million dollars for the medically unnecessary tests that QBR paid doctors to order.

    Hornbuckle was also ordered to pay $9,192,005.20 in restitution, a fine of $250,000, and forfeiture of $176,449.19.

    The case against Hornbuckle is related to several other cases that have resulted in convictions in the last year. Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, were sentenced last week. Brian Bowman, 41, of Gadsden, has pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. James Ewing Ray, 52, of Gadsden, has pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered. John Alan Robson, 40, of Trussville, was indicted last month on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to his indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors.

    Brian Bowman and James Ray are awaiting sentencing.

    The FBI and HHS-OIG investigated the cases.  Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the cases.

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  • MIL-OSI Security: Two Individuals Indicted on Gun Charges Appear in Federal Court

    Source: US FBI

    BIRMIGHAM, Ala. — Yesterday, two individuals were arrested by FBI agents and appeared in federal court, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. 

    Charles Edward Kilgore, 31, of Heflin, and Thomas Austin Griffith, 24, of Anniston, were arraigned before U.S. Magistrate Judge Nicholas A. Danella on charges of being a felon in possession of a firearm. Kilgore and Griffith are being held in the custody of the U.S. Marshal until their detention hearings which are set for March 14.  

    According to the indictments, Kilgore illegally possessed a Glock .40 caliber pistol on January 6, 2023, in Cleburne County. Griffith illegally possessed a Glock .40 caliber pistol on December 9, 2022, in Calhoun County.

    The maximum penalty for being a felon in possession of a firearm is 15 years in prison.

    The FBI North Alabama Violent Crime Task Force investigated the case, along with the Calhoun County Sheriff’s Office and the Oxford Police Department. Assistant U.S. Attorney Michael A. Royster is prosecuting the case.

    An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty.

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  • MIL-OSI Security: Seven Indicted for Role in Prison-Based Phone Scam and Paying Bribes to Corrections Officers at the William E. Donaldson Correctional Facility

    Source: US FBI

    BIRMINGHAM, Ala. – A federal indictment unsealed yesterday charges seven individuals for their participation in a prison-based telephone scam and conspiring to smuggle cell phones, controlled substances, and other contraband to inmates at the William E. Donaldson Correctional Facility (Donaldson) in Bessemer, Alabama, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick Davis. 

    A seventeen-count indictment filed in U.S. District Court charges Keith Devon Perry, aka “Keep Paper,” 30, of Anniston, Kierro Deandrew Nelson, aka “10K,” 32, of Montgomery, Shedrick Romon Johnson, aka, “Cett,” 43, of Montgomery, Deangelo Lamon Russell, aka “Dee,” 31, of Anniston, Desmond Arterrio Nelson, aka “Dez,” 35, of Montgomery, and Aleshia Nelson,” aka “Leshia,” 30, of Montgomery, with conspiracy to commit an offense against the United States, using a facility in interstate commerce in furtherance of an unlawful activity, and conspiracy to distribute a controlled substance. Perry, Kierro Nelson, Johnson, and Brantley Glen Wheatley, aka “Queen B,” 29, of Tuscaloosa, are charged with conspiracy to commit wire fraud. Perry, Johnson, and Wheatley are charged with wire fraud. Perry and Wheatley are charged with aggravated identity theft. Perry, Kierro Nelson, Johnson, Wheatley, and Russell are charged with conspiracy to commit money laundering.

    The defendants include current and former inmates at Donaldson, as well as family members of two inmates. The charges stem from a larger investigation into fraud and corruption at Donaldson that has to date resulted in nine additional individuals being charged. Those individuals include Wilson Brian Clemons, Ricardo Poole, Sr., Kortney Jovan Simon, Otis Lee Bowers, Terry Ray Bradshaw, Rennita Renee Perry, Kiara Reshell Anderson, Ricardo Poole, Jr., and Rhonda Thompson Poole.

    According to the indictment, between July 2021 and February 2022, the defendants used contraband cell phones, social engineering techniques, and spoofing technology to trick retailers into transferring them funds under fraudulent pretenses. The proceeds of these telephone scams were then used to, among other things, finance the purchase of controlled substances and to pay bribes to corrections officers at Donaldson.

    The charges of conspiracy to commit an offense against the United States and use of a facility in interstate commerce in furtherance of illegal activity both carry a maximum sentence of five years in prison The charges of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and conspiracy to distribute and possess with the intent to distribute a controlled substance each carry a maximum penalty of 20 years in prison. Aggravated identity theft carries a mandatory sentence of two years in prison.

    The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorneys Edward J. Canter and John M. Hundscheid are prosecuting the case. The Alabama Department of Corrections Law Enforcement Services Division, the Drug Enforcement Administration, and the Federal Bureau of Investigation have assisted in the investigation.

    An indictment contains only charges. The defendants are presumed innocent unless and until they are proven guilty.

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  • MIL-OSI Security: Massachusetts Man Pleads Guilty to Sexual Exploitation of a Child and Travel with Intent to Engage in Unlawful Sexual Activity

    Source: US FBI

    ALBANY, NEW YORK – Frank Twing, Sr., age 33, of West Stockbridge, Massachusetts, pled guilty today to one count of sexual exploitation of a child involving a then-15-year-old victim and one count of travel with intent to engage in unlawful sexual conduct involving an approximately 12-year-old victim. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Twing admitted that he engaged in a sexual relationship with a 15-year-old child during which he created sexually explicit videos depicting that child. He also admitted to traveling from his home in Massachusetts to New York, planning to have sex with an approximately 12-year-old child.

    At sentencing scheduled for March 6, 2025, before United States District Judge Mae A. D’Agostino, Twing faces a mandatory minimum imprisonment term of 15 years and a maximum imprisonment term of 60 years, post-release supervision of at least 5 years and up to life, a fine of up to $250,000, special assessments, restitution to the victims, and forfeiture of the property he used to commit he offenses. Twing also will be required to register as a sex offender upon his release from prison.

    This case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, the New York State Police, and the Massachusetts State Police Detective Unit assigned to the Berkshire County District Attorney’s Office, which itself also assisted in the investigation. Assistant U.S. Attorneys Michael D. Gadarian and Benjamin A. Gillis are prosecuting the case as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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  • MIL-OSI Security: Medical Billing Company Owner Pleads Guilty to Health Care Fraud

    Source: US FBI

    ALBANY, NEW YORK – Scott Newcombe, age 40, of Plattsburgh, New York, pled guilty today to health care fraud. 

    United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Naomi Gruchacz, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Regional Office, made the announcement.

    Newcombe admitted that from approximately April 2020 through April 2023, he acted as the office manager and health care claims biller for two physicians’ practices in Plattsburgh through a company that he formed called SJ Healthcare Management Services, LLC (SJHMS).  SJHMS charged a fixed monthly fee under which Newcombe performed various management, administrative, and billing services for the practices.  He admitted that he submitted false and fraudulent claims to public and private insurers on behalf of those practices for services that, in some instances, were never provided and, in other instances, were provided at lower reimbursement rates than the amounts billed.  For example, Newcombe admitted that he submitted claims to insurers for medical procedures that were purportedly performed by a provider on him but which, in fact, never occurred. 

    Newcombe is scheduled for sentencing on February 28, 2025.  He faces up to 20 years in prison and a term of post-imprisonment supervised release of up to 3 years.  A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.

    The FBI and HHS investigated this case.  Assistant U.S. Attorneys Michael D. Gadarian and Adam J. Katz are prosecuting the case.

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  • MIL-OSI Security: Former Troy City Council Member Sentenced for Identity Theft

    Source: US FBI

    ALBANY, NEW YORK – Kim McPherson, age 63, of Troy, New York, was sentenced today to 1 year of probation, and to pay a $1,500 fine, for identity theft in connection with her casting of absentee ballots in two other people’s names in elections held in 2021.

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

    McPherson successfully ran for re-election to the Troy City Council in 2021, first in the Working Families Party primary and then in the general election.  In pleading guilty in June 2022 to the unlawful possession and use of a means of identification of another person, she admitted that in the primary election, she unlawfully cast an absentee ballot in the name of another person, and that in the general election, she unlawfully cast absentee ballots in the names of two people other than herself.

    As part of her plea agreement, McPherson resigned from the Troy City Council.

    The FBI investigated this case and Assistant U.S. Attorney Michael Barnett prosecuted this case.

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  • MIL-OSI Security: Anchorage Man Sentenced to 10 Years for Heroin Trafficking

    Source: US FBI

    ANCHORAGE, ALASKA – U.S. District Judge Joshua M. Kindred sentenced an Anchorage man on April 19, 2023, to 10 years and 5 months imprisonment followed by eight years of supervised release for distributing heroin.

    According to court documents and evidence presented at trial, Jason McAnulty, aka “Snoop,” 40, distributed approximately 126 grams of heroin to a law enforcement source during two undercover operations in June 2020, netting himself $6,300.  Law enforcement began investigating McAnulty after learning that he was a source of heroin supply in the Anchorage area. In July 2020, law enforcement executed a search warrant at McAnulty’s residence where they found more than $34,000 cash and other distribution contraband. An Alaska jury convicted McAnulty of the heroin distribution following a five-day trial in March 2022. 

    McAnulty was previously convicted in 2004 for first-degree robbery, a serious violent felony, that mandated a minimum 10-year prison sentence. The United States also presented evidence of McAnulty’s extensive and violent criminal history at the sentencing hearing in support of the sentence, including McAnulty’s 2015 federal conviction for attempted witness tampering in another federal criminal trial.

    “Dangerous opiates such as heroin pose an ongoing threat to communities throughout Alaska,” said U.S. Attorney S. Lane Tucker for the District of Alaska.  “This sentence serves as a reminder that we will prosecute and hold accountable those who are harming our communities, and with our law enforcement partners, will persist in our disruption of heroin trafficking operations in this district.”

    “McAnulty supported the opioid and heroin epidemic through his illegal drug distribution activities, posing a significant threat to communities in Alaska,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI and the Anchorage Police Department will continue working together to hold drug traffickers accountable, and to stop the flow of deadly drugs into our communities.” The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) program, investigated the case.

    Assistant U.S. Attorneys George Tran and Stephan Collins prosecuted the case.

    This case is part of Alaska’s High Intensity Drug Trafficking Area (HIDTA). HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska.

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