NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Aryan Brotherhood Prison Gang Member Sentenced to Life in Prison for Murder-in-Aid of Racketeering

    Source: US FBI

    SACRAMENTO, Calif. — Jason Corbett, 52, of Paradise, was sentenced today by U.S. District Judge Kimberly J. Mueller to life in prison for murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, between 2011 and 2016, Aryan Brotherhood (AB) members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. AB members oversaw a significant heroin and methamphetamine trafficking operation from their California prison cells using smuggled cellphones to direct drug trafficking activities, order murders, and oversee other criminal activities inside and outside of the prisons.

    According to Corbett’s plea agreement, on July 28, 2018, Corbett murdered an inmate at High Desert Prison as part of an AB-related killing. Corbett admitted that he committed the murder because the victim falsely claimed to be an AB member and had run up a significant drug debt at his previous prison — both violations of the AB’s expected codes of conduct. Corbett willfully, deliberately, and with premeditation, murdered the victim in order to maintain his status within the gang.

    On Jan. 3, 2024, Corbett’s co-defendant in the murder, Pat Brady, 54, pleaded guilty to the same murder in aid of racketeering. He was sentenced to life in prison on Aug. 5, 2024.

    In April 2024, following a nine-week trial, a federal jury found three of Corbett’s co-defendants guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking. Ronald Yandell, 62, and Billy Sylvester, 56, are scheduled to be sentenced by Judge Mueller on Nov. 19, 2024. Danny Troxell, 71, will be sentenced at a date to be set by the Court.

    During a status conference today, Kathleen Nolan, 70, of Calimesa, entered a guilty plea for her part in the drug trafficking conspiracy with AB members and associates. She is scheduled to be sentenced on Dec. 17, 2024. Charges are pending against Kevin MacNamara, 44, of La Palma. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

    This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.

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

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  • MIL-OSI Security: Former UC Davis and Davis Club Water Polo Coach Sentenced to Over Seven Years in Prison for Distribution of Visual Depictions of Minors Engaged in Sexually Explicit Conduct

    Source: US FBI

    SACRAMENTO, Calif. — Daniel Joseph Noble, 28, residing in San Diego County, was sentenced Thursday by U.S. District Judge Daniel J. Calabretta to seven years and three months in prison for knowing distribution of visual depictions of minors engaged in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. Noble was also ordered to pay $20,000 in restitution to the victims of his crimes.

    According to court records, between March 10, 2022, and April 12, 2022, Noble participated in a Kik private group chat dedicated to sharing videos of children being sexually abused or exploited. Noble shared over a dozen video files with the Kik group. Some of those files that Noble shared showed prepubescent minors being sexually and sadistically abused by adults. At the time he engaged in this conduct, Noble was working as the assistant water polo coach for UC Davis men’s team and the associated youth team.

    “This sentence of more than seven years sends a clear message that this content and the horrific abuse it depicts is neither legal nor acceptable in our society,” Special Agent in Charge Sid Patel of the FBI Sacramento Field Office stated. “The FBI continues to make the pursuit of individuals who produce, share, and consume content that is the result of abuse of a child a top priority. We are deeply committed to working with our law enforcement partners and prosecutors in an effort to protect children.”

    This case was the product of an investigation by the Federal Bureau of Investigation in Sacramento and in Jacksonville, Florida, and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant U.S. Attorney Christina McCall prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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  • MIL-OSI Security: Project Safe Neighborhoods News for September 2024

    Source: US FBI

    SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following actions in federal PSN cases.

    Indictments

    Anthony Carter, 22, of Elk Grove, and Isaiah Rowland, 28, of Antelope, were indicted on Aug. 15, 2024, each charged with being a felon in possession of a firearm. The indictment was unsealed following their arrests on Sept. 5. According to court documents, Carter is prohibited from possessing a firearm due to prior felony convictions for reckless evasion of a peace officer, felon in possession of a firearm, and possession of a firearm by a person on probation. Rowland, too, is prohibited from possessing a firearm due to prior felony convictions for robbery, failure to appear on a felony charge, and carrying a loaded firearm. This case is the result of the ongoing collaboration between the Sacramento Police Department and its local, state, and federal partners as part of a Public Safety Partnership (PSP) to address violent crime in the community. Started in 2022, the Sacramento PSP is a multi-faceted violence-reduction strategy that relies on innovative data-driven strategies to promote public and community safety. Participating PSP partners include: the Sacramento District Attorney’s Office, Sacramento FBI, Sacramento DEA, Sacramento ATF, the Sacramento U.S. Marshals, and the U.S. Attorney’s Office. Assistant U.S. Attorney Zulkar Khan is prosecuting the case.

    Richard Lee Dazo, 38, of West Sacramento, was indicted on Sept. 12, 2024, charged with being a felon in possession of a firearm and ammunition. According to court documents, on Aug. 13, 2024, Dazo was found to be in possession of a loaded Remington 870 shotgun and a pellet gun loaded with live ammunition. Dazo is prohibited from possessing a firearm due to prior felony convictions for assault with force likely to produce great bodily injury and criminal street gang activity, being a felon in possession of a firearm, possession of metal knuckles, and possession of a concealed dirk or dagger. This case is the product of an investigation by the West Sacramento Police Department, FBI Safe Streets Task Force, and Yolo County District Attorney’s Office. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case.

    If convicted, defendants Carter, Rowland and Dazo face a maximum statutory penalty of 15 years 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

    Guilty Plea

    Sean Arthur Robinson, 37, of Stockton, pleaded guilty on Sept. 10, 2024, to illegal possession of a firearm. According to court documents, law enforcement officers recovered a loaded Glock 27 semi-automatic firearm and a loaded magazine inside a vehicle while serving a search warrant at Robinson’s residence in Stockton in September 2022. The firearm had previously been reported stolen from Sacramento. Robinson is prohibited from possessing firearms due to prior convictions for elder abuse and for carrying a loaded firearm in public. Law enforcement’s investigation into Robinson began at least as early as May 2021, when surveillance footage captured him engaging in a violent shootout at the Grand Hyatt Hotel near San Francisco International Airport. During this incident, Robinson and a compatriot attempted to carjack at least two other vehicles. Following the shootout, law enforcement officers seized a black duffel bag that surveillance footage captured Robinson carrying just before the firefight began and contained three illegal firearms. This case is the product of an investigation by the FBI with assistance from the San Francisco Police Department. Assistant U.S. Attorneys Justin Lee and Sam Stefanki are prosecuting the case.

    Robinson is scheduled to be sentenced on Jan. 7, 2025. He faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    Sentencings

    Jacob Harding-Abeyta, 31, of Vallejo, was sentenced on Sept. 10, 2024, to four years and nine months in prison for being a felon in possession of a firearm and possession of cocaine for sale. According to court documents, on Oct. 7, 2020, a parole search of Harding-Abeyta’s residence resulted in the discovery of a loaded .45-caliber Springfield XDS firearm in his bedroom. Harding-Abeyta is prohibited from possessing firearms or ammunition because he was previously convicted in Solano County for attempted murder in 2014. Officers also discovered 39 grams of powder cocaine, a digital scale, plastic baggies, and other drug paraphernalia. A search of the defendant’s phone revealed that he was selling this and other cocaine. Additionally, Harding-Abeyta also admitted in his plea agreement that he committed obstruction of justice by attempting to suborn perjury of a witness during a prior evidentiary hearing in this case. This case was the product of an investigation by the Solano County Sheriff’s Office, the Solano County District Attorney’s Office, the ATF, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Haddy Abouzeid, Jason Hitt, Adrian T. Kinsella prosecuted the case.

    Sovan Leng, 34, of Stockton was sentenced on Sept. 10, 2024, to two years and six months in prison for being a felon in possession of a firearm. According to court documents, on Oct. 16, 2023, Leng was found to be in possession of a Glock-17 9 mm pistol. Leng is prohibited from possessing a firearm due to several prior felony convictions for assault with a deadly weapon, carrying a loaded firearm, possession of a stolen vehicle, being a felon in possession of a firearm, and possession of a controlled substance. This case was the product of an investigation by the Stockton Police Department and ATF. Assistant U.S. Attorneys Alstyn Bennett and Zulkar Khan prosecuted the case.

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

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  • MIL-OSI Security: Tehama County Man Sentenced to Over 19 Years in Prison for Child Exploitation Offense

    Source: US FBI

    SACRAMENTO, Calif. — Eduardo Castillo, 39, of Corning, was sentenced today to 19 years and seven months in prison for online enticement of a minor for sexual purposes, U.S. Attorney Phillip A. Talbert announced.

    Castillo had previously fled to Mexico to avoid prosecution; however, he was returned to the United States in August 2023 thanks to the collaboration of the FBI, Mexican law enforcement officials, and Mexican immigration officials.

    According to court documents, between July 13, 2020, and Aug. 27, 2020, Castillo used a cellphone and the internet to entice at least five minor victims into sending him images and videos of themselves engaging in sexually explicit conduct.

    During that timeframe, Castillo posed as one or more teenage girls on social media platforms such as Snapchat and Instagram. Using images of teenage girls that he had downloaded from the internet, Castillo initiated chats and then exchanges of images with his male victims. Castillo then asked for child sexual abuse material in return, assuring his victims that the images and videos would be deleted. In reality, Castillo screen-recorded the videos and images and saved them on his devices.

    This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the 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: Attorney General Garland Honors U.S. Department of Justice Employees and Others for Their Service at Annual Awards Ceremony

    Source: US FBI

    SAN DIEGO – Attorney General Merrick B. Garland today announced the recipients of the annual Attorney General’s Awards recognizing extraordinary work of Justice Department employees and others. Recipients included several San Diego-based federal prosecutors and San Diego County District Attorney Summer Stephan.

    “Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”

    San Diego recipients include:

    • Chief of National Security and Cybercrimes John Parmley; Assistant U.S. Attorneys Fred Sheppard and Sabrina Feve; FBI Special Agents Amy Poling, Adam James, Marina Shalfeyeva, Nicholas Arico, and Udell Hardy; and FBI Supervisory Special Agent Edison Constante. They received the Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security, which recognizes outstanding achievements and contributions toward protecting U.S. national security. They were singled out for their work on an espionage case. Please see https://www.justice.gov/usao-sdca/pr/four-chinese-nationals-working-ministry-state-security-charged-global-computer.

      “This extraordinary team identified and exposed a worldwide computer-hacking campaign,” said U.S. Attorney Tara McGrath.  “Their perseverance and dedication disrupted China’s efforts to steal trade secrets and sensitive data from universities, companies, and governmental organizations around the globe.”
       

    • First Assistant U.S. Attorney Peter Ko, second-in-command of the U.S. Attorney’s Office, was recognized for exemplary leadership over the course of his DOJ career. “Mr. Ko has demonstrated outstanding professionalism and commitment to justice for more than two decades,” McGrath said. “I can’t think of anyone more deserving of this recognition.”
       
    • San Diego County District Attorney Summer Stephan received the Attorney General’s Award for Meritorious Public Service. Each year the DOJ gives out just one award for meritorious public service nationwide. The award is designed to recognize significant contributions of citizens and organizations that have assisted the Department in accomplishing its mission and objectives.

      “During Summer Stephan’s tenure as DA, San Diego has remained one of the safest large cities in America,” McGrath said. “Collaborative law enforcement relationships have been a hallmark of DA Stephan’s leadership.  Her work with Department of Justice partners has resulted in dozens of high-impact cases, from fentanyl trafficking and elder fraud to illegal firearms and violent crime.”

    For a comprehensive list of all award winners, please see https://www.justice.gov/opa/pr/attorney-general-merrick-b-garland-honors-justice-department-employees-and-partners-70th-and.

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  • MIL-OSI Security: Man Sentenced to 12 Years for Sex Trafficking a 15-Year-Old Girl

    Source: US FBI

    NEWS RELEASE SUMMARY – February 12, 2024

    SAN DIEGO – Gabriel Joseph Gonzalez of Pomona, California was sentenced in federal court today to 12 years in prison for sex trafficking a 15-year-old girl in early 2023.

    Gonzalez pleaded guilty in July 2023 to one count of sex trafficking of a minor. The victim was a runaway living at a group home in Los Angeles County when Gonzalez began trafficking her. Gonzalez had known the victim since she was 13. He enticed her to leave the group home to engage in commercial sex work for Gonzalez’s financial benefit. He then transported the victim to San Diego and forced her to walk areas known for prostitution on Dalbergia Street in San Diego and Roosevelt Avenue in National City.

    During January 2023, Gonzalez forced the victim to engage in commercial sex work every day for seven straight days– except for the victim’s 16th birthday. He allowed her to take that day “off.”

    The victim escaped by calling 911. She was rescued by the San Diego Police Department on January 26, 2023, and the case was turned over to the San Diego Human Trafficking Task Force.

    Even after entering a guilty plea in July 2023, Gonzalez attempted to continue to traffic the victim while in custody through jail calls. U.S. District Judge Larry Alan Burns pronounced the 12-year sentence, noting Gonzalez’s “absolute lack of remorse” in his conduct while in custody and his continued victimization of the minor.

    “The victim’s courage to call 911 in this case was extraordinary,” said U.S. Attorney Tara McGrath. “Her trust in law enforcement demonstrated that when someone reports abuse, the public servants in this community are all hands on deck to bring abusers to justice.”

    “Human trafficking and sexual exploitation of a minor is inexcusable,” said Attorney General Rob Bonta. “At the California Department of Justice, we are fighting to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all our partners for their collaboration in the California DOJ-led San Diego Human Trafficking Task Force. I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results.”

    “The vital work being done by local and federal partners on the Human Trafficking Task Force to combat sex trafficking cannot be quantified,” said FBI San Diego Special Agent in Charge Stacey Moy. “The violence or coercion that is committed against sex trafficking victims can have a lasting negative impact on the victim, their families, and the community for years to come.”

    If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.

    This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.

    DEFENDANTS                                             Case Number 23-cr-0513-LAB                              

    Gabriel Joseph Gonzalez                                            Age: 20                                   Pomona, CA

    SUMMARY OF CHARGES

    Sex Trafficking of a Minor – Title 18, U.S.C., Section 1591(a) and (b)(1)

    Maximum penalty: Up to life in prison and $250,000 fine; Ten-year mandatory minimum sentence

    AGENCY

    San Diego Police Department

    National City Police Department

    Federal Bureau of Investigation, San Diego

    San Diego Human Trafficking Task Force

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  • MIL-OSI Security: Former U.S. Border Patrol Agent Pleads Guilty to Attempting to Distribute Methamphetamine and Receiving Bribes

    Source: US FBI

    SAN DIEGO – Former U.S. Border Patrol Agent Hector Hernandez pleaded guilty in federal court today, admitting that he used his official position to smuggle unauthorized immigrants and illegal drugs across the border in exchange for money.

    According to his plea agreement, Hernandez admitted to using his official position to open border fences and allowing undocumented immigrants and controlled substances to enter the United States from Mexico. Hernandez also admitted to moving the drugs from the Southern District of California to other locations within the United States.

    “Agent Hernandez betrayed his badge and his country,” said U.S. Attorney Tara McGrath. “Instead of providing protection from smugglers and drug traffickers, he joined them.”

    “Border Patrol Agent Hernandez broke the public’s trust and abandoned his oath,” said DEA Special Agent in Charge Shelly Howe. “Law enforcement officers are required to uphold the law, not break it.”

    “It’s always disheartening when individuals misuse their positions of trust within our government for nefarious activities,” said FBI San Diego Special Agent in Charge Stacey Moy. “Let this be a clear message, that we are absolutely resolved with our partners to rigorously investigate and pursue justice in all cases—even when they involve one of our own.”

    “Department of Homeland Security Office of the Inspector General is grateful for the continued collaboration with our law enforcement partners as we root out corruption and crime along the Southwest Border. Today’s plea agreement sends a clear message that federal employees will be held accountable for their actions,” said the DHS Inspector General, Dr. Joseph V. Cuffari.

    Hernandez admitted to taking Mexico-based smugglers on a tour of the US/Mexico border, identifying the best locations to sneak unauthorized immigrants into the United States, and sharing the locations of monitoring devices and cameras near the border to help them evade detection. Hernandez also admitted to opening restricted border fences on at least five occasions and allowing immigrants to enter the United States for cash payments of $5,000 each time.

    On May 9, 2023, Hernandez met with someone he believed to be a drug trafficker but who was, in fact, an undercover federal agent. During this meeting, Hernandez agreed to pick up a bag full of narcotics that would be hidden near the border fence and bring it to the undercover agent in exchange for $20,000. Undercover agents loaded the bag with 10 kilograms of fake methamphetamine, one pound of real methamphetamine, and a tracking device, before placing the bag in a storm drain near the border fence.

    Later that evening and while on duty, Hernandez drove his official vehicle to the storm drain and retrieved the bag. He drove the bag to his residence in Chula Vista and left it there for the remainder of his work shift. On May 10, 2023, after his shift was over, Hernandez returned home, retrieved the bag, and drove to meet with the undercover agent. He was arrested at that meeting. Upon arrest, investigators confirmed the bag still contained both the fake and real methamphetamine.

    After Hernandez was arrested, agents searched his residence and found close to $140,000 in cash and 9 grams of cocaine. By Hernandez’s own admission, at least $110,000 of the seized cash represented proceeds from narcotics trafficking and bribery.

    As part of his plea agreement, Hernandez forfeited his personal vehicle used to bring the drugs to the undercover agent; $110,000 of the seized cash; and his interest in the residence where the drugs were maintained.

    This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Lawrence A. Casper.

    Hernandez is scheduled to be sentenced on April 19, 2024 at 9 a.m. before U.S. District Judge Janis L. Sammartino.

    DEFENDANTS                                Case Number 23cr1114-JLS                              

    Hector Hernandez                              Age: 55                          Chula Vista, CA

    SUMMARY OF CHARGES

    Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846

    Maximum penalty: Life imprisonment with a 10-year mandatory minimum

    Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2)

    Maximum penalty: Fifteen years in prison

    INVESTIGATING AGENCIES

    Department of Homeland Security, Office of the Inspector General

    Drug Enforcement Administration

    Federal Bureau of Investigation

    IRS Criminal Investigation

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  • MIL-OSI Security: FBI San Diego Warns of Romance Scams

    Source: US FBI

    SAN DIEGO—Scammers are targeting victims using online dating sites. A whirlwind online romance can turn into fraud that causes victims to lose large amounts of money. Romance scams, a type of confidence fraud, begin when an individual believes they are in a romantic relationship and is tricked into sending money, personal information, financial information, or items of value to the perpetrator. They may also be deceived into laundering money or other valuable items to assist the perpetrator.

    In a romance scam, the scammers target and take advantage of people looking for companionship or romantic partners and con them out of their money. The criminals who carry out romance scams typically target victims via social media messaging and emails with the intention of establishing a relationship and building trust as quickly as possible.

    Confidence fraud/romance scams have resulted in one of the highest amounts of financial losses when compared to other Internet-facilitated crimes. The FBI’s Internet Crime Complaint Center (IC3) received more than 19,000 complaints about confidence fraud in 2022, with reported losses of nearly $740 million.

    FBI San Diego is monitoring a trend where romance scams turn into crypto investment fraud schemes. The scam starts similarly as an online relationship, but instead of asking for cash, the scammer convinces the victim to invest in cryptocurrency. To demonstrate the returns on investment, victims are directed to websites that appear authentic but are instead controlled by the scammer. Once the victim makes a purchase, they are unable to cash out their investments and the scammer disappears.

    If you develop a relationship with someone you meet online, FBI San Diego suggests the following tips to avoid becoming a victim of a romance scam:

    • If it doesn’t feel right, then it probably isn’t. Trust your instincts.
    • If you suspect an online relationship is a scam, stop all contact immediately.
    • Do not give any personal information or money to anyone you have only communicated with by telephone or online.
    • Be careful what you post online. Scammers can use details shared on social media platforms and dating sites to legitimize their story.
    • If you are planning to meet someone in person you have met online, proceed with caution, especially if you plan to travel to a foreign country. Review the State Department’s travel advisories before arranging travel. (travel.state.gov)

    Anyone who believes they’ve been a victim of fraud or knows someone who may be a victim should file a report on ic3.gov or call the FBI San Diego Field Office at (858) 320-1800. For more information on romance scams, visit www.fbi.gov/romancescams.

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  • MIL-OSI Security: Husband and Wife Plead Guilty to $5 Million Unemployment Fraud Scheme

    Source: US FBI

    NEWS RELEASE SUMMARY – February 15, 2024

    SAN DIEGO –Eduard Buse and Florentina Sima pleaded guilty in federal court today to fraud and money laundering charges, admitting they participated in a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic.

    Buse and Sima were indicted by a federal grand jury in October 2023 along with 12 others. The indictment alleged that the fraud scheme involved helping hundreds of undeserving applicants apply for benefits using fraudulent documents. In their respective plea agreements, Buse and Sima admitted the fraud resulted in almost $5.2 million in bogus claims paid by the state of California.

    “These covid relief funds were meant to provide critical financial relief during the pandemic. Instead, the money was used to buy luxury cars and jewelry,” said U.S. Attorney Tara McGrath. “We will not only continue to prosecute those who diverted money intended to serve as a lifeline, but we will pursue every avenue to recover and return that money to public use.”

    “The Covid-19 pandemic placed an enormous financial strain on millions of Americans; however, some individuals decided to use other people’s pain as an opportunity for financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “Our pursuit of justice for those affected by fraud during the pandemic will not stop until each and every person who took advantage of individuals during this critical time is prosecuted for defrauding the U.S. government and innocent people.”

    “The defendants’ abuse of programs designed to help people in need during and in the wake of the Covid pandemic is particularly despicable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse, they took money intended to help people keep their heads above water and showered themselves with luxury items. IRS Criminal Investigation is committed to rooting out this sort of evil by following the money to bring people like these defendants to justice.”

    According to Buse’s plea agreement, he not only collected $28,350 in undue EDD benefits for himself but also facilitated payouts of $244,050 to 14 co-conspirators, including Sima. Buse then sent $128,902.99 and Sima sent $58,881.53 of fraud proceeds to their associates in Romania through money service businesses.

    Buse admitted that he purchased a 2020 BMW X6 for $105,044 in Glendale, California, with proceeds from the fraud and shipped it from San Diego to Romania on April 28, 2023.

    On November 13, 2023, Romanian authorities served search warrants on addresses affiliated with Buse at the request of the United States. They seized the BMW with California license plates along with approximately $9,476.50 in U.S. currency; a Rolex Yacht Master II and a rose gold luxury men’s watch purchased for $15,550 U.S. dollars; a Rolex Sky Dweller watch; a Breitling 1884 men’s watch; and a Rolex Oyster Perpetual Date women’s watch.

    As part of their plea agreements, Buse and Sima agreed to forfeit the BMW, cash and luxury watches, along with all other property seized in connection with the case.

    Buse also agreed to forfeit $128,902.99 and agreed to pay restitution in the amount of $244,050 to the State of California Employment Development Department. Sima agreed to forfeit $58,881.53 and pay the same amount in restitution to the State of California Employment Development Department.

    Buse and Sima are scheduled to be sentenced on May 20, 2024, at 9 a.m. before U.S. District Judge Larry A. Burns. This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu.

    DEFENDANTS                                             Case Number 23CR2090-LAB                                

    Eduard Buse                                                    Age: 30                                   Transient, Romanian

    Florentina Sima                                              Age: 29                                   Transient, Romanian

    SUMMARY OF CHARGES

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

    Title 18, U.S.C. § 1343 — Wire Fraud

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

    Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments

    Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater

    AGENCY

    Federal Bureau of Investigation

    San Diego Police Department Economic Crimes Unit

    IRS Criminal Investigation

    California Employment Development Department Investigative Division

    U.S. Department of Labor Office of Inspector General

    U.S. Department of Homeland Security

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

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  • MIL-OSI Security: San Francisco Tow Company Operator Charged with Insurance Fraud and Money Laundering

    Source: US FBI

    Jose Badillo and a Co-Defendant Are Accused of Submitting a Fraudulent Auto Insurance Claim and Pocketing the Proceeds

    SAN FRANCISCO – Jose Vicente Badillo and Jessica Elizabeth Najarro appeared in federal court today to face mail fraud, wire fraud, and money laundering charges related to a scheme to defraud an auto insurance company, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. Rita F. Lin, United States District Judge.

    According to an indictment returned by a federal grand jury on July 9, 2024, Badillo, 28, and Najarro, 30, both of San Francisco, conspired to defraud an insurance company by submitting a fraudulent insurance claim on a wrecked car that Badillo purchased in June 2019. The indictment alleges that, when Badillo bought the car, it was undrivable, with severe front-end damage and a non-functioning engine. Nevertheless, the indictment says, Najarro obtained an insurance policy on, and later took title to, the car before falsely reporting to the insurance company in July 2019 that she had been in a single-car accident in it in San Francisco. The indictment further alleges that Najarro spoke with, and made materially false statements and misrepresentations to, an insurance representative in another state, after which the insurance company processed and approved her claim and sent her an insurance reimbursement check for $34,037.48. The indictment alleges that the full amount of the insurance reimbursement check was deposited a few days later into a Wells Fargo Bank account controlled by Badillo.

    The indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

    Both defendants are charged with one count each of (i) conspiracy to commit mail and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and (iv) money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

    Badillo and Najarro were arrested in San Francisco on August 8, 2024, and released on a $50,000 bond at their initial appearances later that day. Both defendants are next scheduled to appear in court on August 12, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel.

    An indictment merely alleges that crimes have been committed, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Badillo and Najarro each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. They face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for either or both defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS CI.
     

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  • MIL-OSI Security: San Jose Man Sentenced to Nearly Three Years for Defrauding Investors of $4.7 Million

    Source: US FBI

    Joon Woo Kim Started An Investment Fund Focused On Publicly Traded Electric Vehicle Companies But Secretly Diverted Investors’ Funds To His Failing Private Business And Lost Millions

    SAN FRANCISCO – Joon Woo Kim was sentenced today to 33-months in prison for two fraud schemes – the first, a scheme to mislead investors to contribute millions to an electric vehicle investment fund he formed in San Francisco, and the second, a scheme to obtain multi-million dollar business loans by lying to a bank – announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp.  The sentence was handed down by United States District Judge James Donato.

    On March 4, 2024, Kim, 58, of San Jose, Calif., pleaded guilty to two fraud charges against him, one count of committing wire fraud and the other for making false statements to a bank to obtain a loan.  The first fraud scheme occurred from June 2015 through March 2022 and involved creating and running an investment fund that Kim named the M5 Doctors Fund.  Kim admitted in his plea agreement that he ran the M5 Doctors Fund, along with a separate management entity M5 Management, with the intent to deceive investors.  Kim represented to investors that he would invest the funds of the M5 Doctors Fund in securities of electric vehicle companies, including Tesla, and would always invest only in publicly traded securities.  Instead, Kim transferred nearly all the millions invested by investors in the M5 Doctors Fund into a failing private company called CKR Enterprise, Inc. (CKR).  CKR was a wholesale food distribution company operated by Kim and his wife and owned by them, among others.

    Kim defrauded investors out of $4,690,000 due to his transfer of the M5 Doctors Fund assets to CKR.  While this was occurring, Kim continued to mislead investors by sending quarterly reports to them suggesting their money was invested in public securities such as Tesla.

    Kim engaged in a second fraud scheme in which he defrauded Hanmi Bank by applying for two loans for CKR, a $1,300,000 line of credit and a $3,200,000 business loan.  Kim admitted the bank loan application contained materially false and fraudulent representations.  Based on those representations, Kim obtained the proceeds of these loans.

    In a memorandum filed for the sentencing hearing, the government argued that Kim gained the trust of his investors due to his impressive profile, which included multiple Ivy League degrees and extensive investment experience.  Many M5 Doctors Fund investors were non-profit institutions that could invest only in public securities and would not have invested with Kim if they knew the truth, that is, that Kim transferred their money to a private company owned by Kim and his wife.  The government pointed out that while Kim drained this fund, he continued to deceive his investors into believing the fund still had money that it no longer had.

    A federal grand jury charged Kim on June 27, 2023, with multiple counts of wire fraud, bank fraud, and making a false statement to a bank.  In his plea agreement, Kim pleaded guilty to one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014.

    In addition to the 33-month term of imprisonment, U.S. District Judge James Donato sentenced the defendant to a three-year period of supervision following his release from prison and ordered Kim to pay more than $4.7 million in restitution to his victims.  Kim was ordered as one condition of his supervised release to make at least three 30-minute presentations to university MBA classes to inform students about the consequences of engaging in fraudulent business practices and behaviors.

    Kim was ordered to surrender into custody on September 3, 2024.

    Chris Highsmith is the Assistant U.S. Attorney prosecuting the case, with the assistance of Tina Rosenbaum and Aarian Beti and Victim Specialist Alicia Guevara.  The prosecution is the result of an investigation by the FBI.
     

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  • MIL-OSI Security: San Francisco Tow Company Operator Charged in Second Insurance Fraud Case

    Source: US FBI

    Jose Badillo and His Co-Defendants Are Accused of Submitting Fraudulent Auto Insurance Claims Regarding Multiple Vehicles

    SAN FRANCISCO – Jose Vicente Badillo, Kirill Afanasyev, Jason Naraja, and Jaime Respicio have been charged in an indictment with various crimes related to two schemes to defraud auto insurance companies, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. James Donato, United States District Judge.

    According to an indictment returned by a federal grand jury on August 20, 2024, Afanasyev, 36, Badillo, 28, both of San Francisco, and Respicio, 38, of Pleasant Hill, California, conspired to defraud an auto insurance company by submitting a fraudulent insurance claim on a wrecked car that Afanasyev purchased in May 2019. The Indictment alleges that, when Afanasyev bought the car, it was undrivable, with significant front-end damage. Nevertheless, the Indictment says, Respicio obtained an insurance policy on, and later took title to, the car before Afanasyev, posing as Respicio, falsely reported to the insurance company in August 2019 that Respicio had been in a single-car accident in it in San Francisco. The Indictment further alleges that Afanasyev made materially false statements and misrepresentations to the insurance company, after which the insurance company processed and approved the claim and sent Respicio an insurance reimbursement check for $47,856.34. The Indictment alleges that Badillo participated in this scheme to defraud by agreeing to falsely document that his towing company had towed the wrecked car from the purported accident location.

    The Indictment alleges that Afanasyev, Badillo, and Naraja, 37, of Hayward, California, engaged in a second conspiracy and scheme to defraud another insurance company by submitting a fraudulent insurance claim regarding an accident involving multiple vehicles that had been staged by Badillo in San Mateo County. Specifically, the Indictment alleges that Badillo and Afanasyev planned the staged accident in which Badillo loaded a vehicle carrier with four vehicles (several of which were inoperable or had pre-existing damage) and purposefully drove them off the road on Guadalupe Canyon Parkway in San Mateo County in August 2019. The Indictment alleges that, after Badillo reported this “accident” to his insurance company, Badillo, Afanasyev, Naraja, and another individual all made false or misleading statements to an insurance company representative. The Indictment alleges that the insurance company ultimately denied Badillo’s claim as fraudulent but nevertheless paid one of Badillo’s towing companies $5,210 for its recovery, towing, and storage of vehicles involved in the staged accident.

    The Indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

    In the first conspiracy and scheme to defraud, Afanasyev, Badillo, and Respicio are charged with one count each of (i) conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; and (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Afanasyev and Respicio are also charged with one count of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

    In the second conspiracy and scheme to defraud, Afanasyev, Badillo, and Naraja are charged with (i) one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and (ii) four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.

    Naraja and Respicio were arrested in Hayward and Pleasant Hill, respectively, on August 27, 2024, and released on $50,000 bonds at their initial appearances on August 28, 2024. Naraja is next scheduled to appear in court on August 29, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel. Respicio is next scheduled to appear in court on September 5, 2024, at 10:30 a.m., before the Hon. Alex G. Tse for arraignment and identification of counsel. Badillo was previously arrested and made his initial appearance in another insurance fraud case on August 8, 2024. He is scheduled to appear before the Hon. Lisa J. Cisneros for arraignment and identification of counsel in both cases on August 30, 2024, at 10:30 a.m. Afanasyev’s initial appearance and arraignment has been scheduled for September 9, 2024, at 10:30 a.m. before the Hon. Alex G. Tse.

    An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Afanasyev, Badillo, and Respicio each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. Afanasyev and Respicio face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. Similarly, Afanasyev, Badillo, and Naraja each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 5 through 9, which charge wire fraud and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1343, 1349, and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for any or all of the defendants. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Assistant U.S. Attorneys Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS-CI. The U.S. Attorney’s Office, the FBI, and IRS-CI appreciate the assistance and support of the San Francisco Police Department in this insurance fraud investigation.
     

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  • MIL-OSI Security: San Francisco Resident Sentenced to One Year in Prison for Stealing More Than $340,000 in Funds Intended for Low-Income Families

    Source: US FBI

    SAN FRANCISCO – Gregory Finkelson was sentenced to one year in prison for theft of government property in connection with his fraudulent receipt of hundreds of thousands of dollars in low-income housing benefits, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG) Special Agent in Charge Mark Kaminsky; and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Michael Mosley of the Oakland Field Office. Finkelson’s sentence was imposed by the Honorable James Donato, United States District Judge, on September 9, 2023.

    The Section 8 Certificate Program is a rent subsidy program funded by HUD and administered in San Francisco by the San Francisco Housing Authority (SFHA). The program is intended to help low- and moderate-income families afford housing, and it has income limits and other eligibility requirements that applicants must meet to qualify for assistance.

    In his plea agreement, Finkelson, 64, admitted that, between approximately August 2006 and February 2020, he wrongfully claimed $341,455 in Section 8 Program subsidies by falsely reporting that he did not own his San Francisco residence, which he bought using a straw purchaser, and that he was merely an employee of a company that he in fact owned and operated out of his residence. Specifically, Finkelson admitted that he used the name of a Russian national living in Russia to purchase his San Francisco home, claiming, wrongfully, that she was his landlord and that he made rent payments to her. Finkelson also admitted he opened several bank accounts, including in the Russian national’s name, and that he used these bank accounts to conceal his use of the ill-gotten Section 8 Program subsidies. He then used the funds he fraudulently obtained to benefit himself, including by funding his business, paying his credit card bills, and making payments on a timeshare in Hawaii. His residence is now worth $2.4 million.

    In a memorandum filed for the sentencing, the government noted that Finkelson continued his fraudulent conduct even after SFHA acted to terminate his Section 8 subsidies. Because of his conduct, the government argued, Finkelson deprived low-income families actually in need of housing over the entire period of his scheme. According to the government, Finkelson’s actions damaged public trust in the government’s role as a fiduciary for taxpayer dollars.

    Finkelson was indicted by a federal grand jury on July 25, 2023. He pleaded guilty on May 7, 2024, to theft of government property and aiding and abetting, in violation of 18 U.S.C. §§ 641 and 2.

    In addition to the one-year term of imprisonment, Judge Donato further sentenced Finkelson to a three-year period of supervision following his release from prison and ordered Finkelson to pay $341,455 in restitution, which represents the total amount he admitted he stole from the government. Finkelson was ordered to surrender into custody on September 16, 2024.

    Assistant United States Attorneys Christiaan Highsmith and Kevin Yeh are prosecuting the case with the assistance of Claudia Hyslop. The prosecution is the result of a joint investigation by the FBI, HUD OIG, and IRS-CI, with assistance from SFHA.
     

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  • MIL-OSI Security: CEO of East Bay-Based Internet Companies Sentenced to More Than Seven Years in Prison for Committing Wire Fraud

    Source: US FBI

    Alan Anderson Sentenced In Connection With Scheme To Raise Money By Creating False Impression of Profitability and Viability for Companies Marketing Child-Friendly Services

    SAN FRANCISCO – Alan Anderson was sentenced today to 88 months in prison and ordered to pay restitution for defrauding investors by lying to them about the profitability of his internet companies, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. Anderson’s sentence was imposed by the Honorable Edward M. Chen, U.S. District Judge.

    Anderson, 61, of Walnut Creek, pleaded guilty on Jan. 4, 2024, to two counts of wire fraud.  In connection with pleading guilty, Anderson admitted that from Apr. 22, 2010, through May 2018, he was the majority shareholder and CEO of three companies: Imbee.com, a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children.  Anderson further admitted that he falsely claimed that the companies were either being acquired or were expanding existing partnerships or contracts with large, well-established companies to induce individuals to invest in his businesses.  To further his falsehoods, and to create an appearance of legitimacy for his false claims, Anderson created false contracts, purchase orders, and other documentation that he sent to investors.  Anderson created and sent these false documents to investors with the intent to deceive or cheat them.

    At sentencing, Judge Chen found that Anderson began lying to investors in September 2011, that his long-running fraud spanned years, and that over the course of the scheme Anderson defrauded investors out of approximately $8.825 million.

    A federal grand jury indicted Anderson on October 13, 2021, charging him with four counts of wire fraud and one count of securities fraud.

    In addition to the prison term, Judge Chen also sentenced the defendant to a three-year period of supervised release and ordered that he pay restitution in an amount to be determined during a further hearing on October 10, 2024.  The defendant will begin serving the prison term on January 6, 2025.

    Assistant U.S. Attorneys Christiaan Highsmith and Sailaja Paidipaty are prosecuting the case with the assistance of Mark DiCenzo.  The prosecution is the result of a multi-year investigation by the FBI.
     

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  • MIL-OSI Security: Fort Washakie Man Sentenced for Murder in the Second Degree

    Source: US FBI

    Ezekiel Frank James Ute, 23, of Fort Washakie, Wyoming, was sentenced to 192 months’ imprisonment with five years of supervised release for second degree murder. U.S. District Court Judge Kelly H. Rankin imposed the sentence on Oct. 31.

    According to court documents, on Jan. 2, 2024, a group of five people, including Ezekiel Ute, were drinking alcohol and driving around the Wind River Indian Reservation when Ute began driving recklessly and saying he was going to intentionally wreck the car. When Ute stopped the car, one of the passengers (P1) got out and refused to get back in. The victim also got out to coax P1 back into the car. As they argued, Ute got out and stabbed the victim multiple times.

    After the stabbing, Ute forced P1 back into the car then drove away, leaving the victim by the side of the road. The passengers urged Ute to turn around so they could help the victim. Ute eventually drove back, but as soon as P1 and another passenger (P2) got out of the car Ute sped off with the remaining passenger in the back seat. Despite P1 and P2’s attempts to save the victim, he died from his injuries the following morning. In addition to the passengers’ statements, Ute acknowledged during an interview that he may have stabbed the victim while under the influence of alcohol.

    Ute was arrested on Jan. 4, indicted on March 13, and pleaded guilty on July 15. This crime was investigated by the FBI and the Bureau of Indian Affairs Wind River Police Department. The case was prosecuted by Assistant U.S. Attorney Timothy W. Gist.

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

    Case No. 24-CR-00040

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  • MIL-OSI Security: Colorado Man Sentenced to Prison for Assaulting Law Enforcement During the January 6 Capitol Breach

    Source: US FBI

                WASHINGTON— A Colorado man was sentenced to prison today after he previously pleaded guilty to assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Patrick Montgomery, 51, of Littleton, Colorado, was sentenced to 37 months in prison and 36 months of supervised release by U.S. District Judge Randolph D. Moss.

                Montgomery was previously convicted of felony offenses of obstruction of an official proceeding and assaulting, resisting, or impeding certain officers. Following the Supreme Court’s decision in Fischer v. United States, the government voluntarily moved pre-sentencing to dismiss Montgomery’s conviction on obstruction of an official proceeding.

                According to court documents, on the morning of Jan. 6, 2021, Montgomery and co-defendants Brady Knowlton, and Gary Wilson met at the Yours Truly hotel in Washington, D.C., and walked to an area near the Washington Monument and the Ellipse to hear the speakers at the “Stop the Steal” rally. After the rally, the three men made their way to the West Front of the U.S. Capitol building, crossing over inside the restricted perimeter.

                At approximately 2:02 p.m., Montgomery grabbed a law enforcement officer’s baton and attempted to wrestle it away from the officer. The officer held onto the baton and fell to the ground with Montgomery. The two then attempted to wrestle control of the baton from each other while Knowlton and Wilson watched nearby. During the scuffle, Montgomery kicked the police officer in the chest.

                After this incident, the three men ascended the Upper West Terrace Stairs with a mass of individuals and approached the Upper West Terrace Door. As they approached, the exterior double doors were propped open, people were screaming, and a loud alarm sounded as people were streaming into the Capitol building. Inside the doors, signage stated, “EMERGENCY EXIT ONLY.” The three men entered the Capitol building via the Upper West Terrace Door at approximately 2:35 p.m.

                After entering the building, the three men climbed the stairs to the second floor, entered the Rotunda, and climbed the stairs to the third floor. At about 2:40 p.m., the three were walking together in the hallway on the third floor towards the Senate Gallery, at which point Knowlton stated, in substance, “We have a right to choose our electors. We’re not going to have communist China choose them for us. We’re not going to have the Democratic Party choose them for us.” Court documents say that Montgomery and Wilson were a few feet away from Knowlton when he made this statement.

                At approximately 2:43 p.m., the three men entered the Senate Gallery, where they saw another rioter jump down to the Senate Floor.

                The three men left the Senate Gallery and proceeded to the second floor to an area near the Senate Floor, where they confronted a U.S. Capitol Police officer. Knowlton yelled at the officer: “This is not about us. This is bigger than me, it’s bigger than you. It’s about this – everyone’s right to self-government . . . We’re with you guys. You think these people in this building would fight for you?” Montgomery yelled: “You gotta stop doing your job sometime and start being American. You gotta quit doing your job and be an American!” Wilson yelled: “We came all the way from our job to do your job, and the freaking Senators’ job!”

                After this confrontation, the defendants exited the Capitol building at approximately 2:53 p.m.

                The FBI arrested Montgomery on Jan. 17, 2021, in Colorado.

                Co-defendant Brady Knowlton is awaiting sentencing, and Gary Wilson was previously sentenced to 30 days incarceration followed by 12 months supervised release for his role in the events of the day.

                The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting this case. The U.S. Attorney’s Offices for the District of Colorado and Utah provided valuable assistance.

                The FBI’s Denver and Washington Field Offices investigated this case. The FBI listed Montgomery as BOLO (Be on the Lookout) #459 in its seeking information photographs. The U.S. Capitol Police and the Metropolitan Police Department provided valuable assistance.

                In the 45 months since Jan. 6, 2021, more than 1,532 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 571 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

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

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  • MIL-OSI Security: Colorado Recidivist Sex Offender Sentenced to 35 Years in Prison for Crimes Against Children

    Source: US FBI

    DENVER – A Colorado man was sentenced yesterday to 35 years in prison and a lifetime term of supervised release for his distribution of child sexual abuse material (CSAM) and involvement with a dark-web website dedicated to CSAM.

    According to court documents, while still on parole for a 2013 Colorado conviction for sexual exploitation of a child, registered sex offender Christopher Carl Meier, 41, of Denver, became a member of a dark-web website dedicated to CSAM depicting boys and the discussion of the sexual abuse of minor boys. On July 9, Meier pleaded guilty to conspiracy to distribute CSAM and five counts of distribution of CSAM. Meier was a member of the website for more than 18 months and made more than 600 posts on the website. On this website, Meier advertised and distributed images and videos depicting minor boys engaged in sexual conduct. He made statements on the website admitting that he produced this material by tricking the boys into thinking that they were interacting online with a girl their own age, and by enticing them to disrobe and engage in sex acts on webcam. The FBI is aware of at least 65 victims of Meier’s conduct.

    Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting U.S. Attorney Matthew Kirsch for the District of Colorado; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.

    The FBI Child Exploitation Operational Unit and Denver Field Office investigated the case.

    Acting Deputy Chief Kyle Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado prosecuted the case.

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

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  • MIL-OSI Security: Hamden Man Admits Trafficking Narcotics in Southwestern Connecticut

    Source: US FBI

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that CHRISTIAN PICHARDO, also known as “Swerve,” “Craig,” and “Bobby Shmurda,” 30, of Hamden, pleaded guilty yesterday in Bridgeport federal court to a narcotics trafficking offense.

    According to court documents and statements made in court, an investigation by the FBI Bridgeport Safe Streets Task Force and the Bridgeport Police Department identified Pichardo as a significant distributor of fentanyl, heroin, cocaine, crack, and narcotic pills in southwestern Connecticut.  During the investigation, investigators intercepted calls and text messages between Pichardo, his associates, and their drug customers over court-authorized wiretaps, and made controlled purchases of narcotics from Pichardo and his associates.

    On July 17, 2024, a grand jury in Bridgeport returned a superseding indictment charging Pichardo and seven alleged co-conspirators with controlled substances offenses.

    Pichardo pleaded guilty to conspiracy to distribute, and to possess with intent to distribute, 40 grams or more of fentanyl and quantities of cocaine, heroin, and other opioids, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.  He is scheduled to be sentenced on June 26. 

    Pichardo has been detained since his arrest on August 5, 2024.

    This matter is being investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department.  The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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  • MIL-OSI Security: Nye County Resident Sentenced to Prison for Distribution and Receipt of More Than 250,000 Images of Child Sexual Abuse Material

    Source: US FBI

    LAS VEGAS – A Pahrump, Nye County, resident was sentenced today by United States District Judge James C. Mahan to 108 months in prison followed by a lifetime term of supervised release for distributing and receiving more than 250,000 images depicting the sexual abuse of children as young as infants on an online peer-to-peer file sharing network.

    David Michael Burak (41) pleaded guilty on February 24, 2023, to distribution or receipt of child pornography.

    According to court documents, investigators with the Internet Crimes Against Children Task Force were investigating the sharing of child sexual abuse material on a peer-to-peer file sharing network. During the investigation, it was observed that a device was distributing files depicting child sexual abuse material. On July 19, 2022, investigators executed a search warrant on Burak’s residence. Part of the residence was used for a daycare business catering to pre-school age children. Investigators seized multiple digital devices that were later found to contain more than 250,000 files of child sexual abuse material. Forensics also showed that Burak used these devices to receive and make available for download files of child sexual abuse material on the internet.

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    The FBI and the Las Vegas Metropolitan Police Department investigated the case. United States Attorney Supriya Prasad prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.

    Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or online at www.cybertipline.org.

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  • MIL-OSI Security: Las Vegas Resident Sentenced to 10 Years in Prison for Child Sex Trafficking

    Source: US FBI

    LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge Richard F. Boulware II to 10 years in prison followed by 20 years of supervised release for attempted child sex trafficking and possession of child sexual abuse material.

    James Allen Wynhoff (41) pleaded guilty in September 2022 to attempted sex trafficking and possession of child pornography. In addition to the prison term, under the Sex Offender Registration and Notification Act, Wynhoff is required to register as a sex offender.

    According to court documents, on March 31, 2022, Wynhoff contacted a person he believed to be a 15-year-old child on the messaging application Kik. Through Kik messages, he solicited and agreed to pay $100 to the child to have sex with him. Furthermore, Wynhoff admitted to possessing 11 videos of child sexual abuse material depicting children as young as toddlers. He has a federal felony conviction in Utah for Interstate Travel with Intent to Engage in Illicit Sexual Contact.

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    The FBI and Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Supriya Prasad prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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.

    If you suspect that you have information about possible child sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children’s CyberTipline at 1-800-THE-LOST (1-800-843-5678).

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  • MIL-OSI Security: Las Vegas Man Sentenced to More Than 12 Years in Prison for Sex Trafficking Children While Visiting Metro-Detroit

    Source: US FBI

    DETROIT – A Las Vegas man who sex trafficked children in metro-Detroit while visiting the area in December 2020 was sentenced to 12 years and 6 months in prison, United States Attorney Dawn N. Ison announced today.

    Ison was joined in the announcement by Acting Special Agent in Charge Devin J. Kowalski, of the Federal Bureau of Investigation, Detroit Field Division.

    Jquon Wroten, 31, pled guilty to two counts of sex trafficking of a minor in April 2023. Wroten was sentenced today by United States District Judge Bernard A. Friedman.

    Law enforcement first began investigating Wroten while attempting to locate two minor females who had run away from the Lansing area in late 2020. A relative of one of the minors contacted law enforcement with information and expressed fears that the minors were being trafficked in the Detroit area. Law enforcement recovered the minors from a motel room in Southfield, Michigan in December 2020 and learned that Wroten had recruited the minors to work for him after meeting them in a local motel while he was in town. Wroten and an adult female associate took the minors to a local beauty supply store and bought items in an effort to make them look older. Wroten then set up a commercial sex date for the minors at a residence in metro-Detroit and drove the minors to the date, where they engaged in commercial sex with multiple men. Wroten took proceeds from the sex trafficking for his own use.

    “The sex trafficking of children is a hideous crime that preys on some of our district’s most vulnerable citizens,” said U.S. Attorney Ison. “The court’s sentence today is a just punishment and will prevent the defendant from further victimizing children here or anywhere else.”

    “Protecting young people from dangerous predators is a top priority for the FBI in Michigan and across the country,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. “Mr. Wroten in an example of how manipulative these criminals can be. I commend the work of the special agents, deputies, police officers, and prosecutors who worked to make our children safer by ensuring he remains behind bars for a significant period of time.”

    This case was investigated by the FBI Detroit Division, FBI Las Vegas Division, FBI San Francisco Division, SEMTEC (Southwest Michigan Trafficking and Exploitation Crimes), and State of Michigan Children’s Protective Services.

    The case was prosecuted by Assistant U.S. Attorneys Meghan Sweeney Bean and Eaton Brown.

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  • MIL-OSI Security: Nye County Captain Indicted for Federal Violations

    Source: US FBI

    LAS VEGAS – Captain David E. Boruchowitz (42), a deputy Sheriff with the Nye County Sheriff’s Office, appeared in federal court today following his arrest on federal wire fraud, perjury and civil rights violations, arising from the February 2019 false arrest of the former CEO of Valley Electric Association (VEA), a Pahrump-based utility cooperative.

    United States Magistrate Judge Brenda Weksler arraigned Boruchowitz on the charges contained in a federal indictment and set the date for trial to begin on October 16, 2023, before United States District Judge Andrew P. Gordon.

    According to the indictment, Boruchowitz falsely arrested the former CEO without probable cause on charges that she embezzled services from VEA. The indictment further alleges that the false arrest was part of a larger scheme to defraud the former CEO of her job by falsely alleging in various court documents that the CEO embezzled services from the VEA. According to the indictment, Boruchowitz made false statements and omitted material facts in order to obtain the court documents under false pretenses as part of a broader plan to get the CEO fired from her job at VEA. The indictment alleges that Boruchowitz committed federal wire fraud when he caused press releases to be issued from the Nye County Sheriff’s Office that falsely alleged that the investigation and arrest of the CEO was the result of court authorized process when, in truth and in fact, he obtained the process under false and fraudulent pretenses and without probable cause.

    Lastly, the indictment charges that Boruchowitz perjured himself when he falsely testified during a federal civil deposition about his knowledge and level of involvement in the circumstances surrounding the arrest.

    A conviction on the civil rights charge carries a maximum term of imprisonment of one year. The wire fraud and perjury violations each carry a 20-year and five-year term of imprisonment, respectively, for each count.  

    United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    The FBI investigated the case. Assistant United States Attorneys Steven Myhre and Bianca Pucci are prosecuting the case.

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

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  • MIL-OSI Security: Nevada Resident Pleads Guilty to COVID-19 Fraud Scheme

    Source: US FBI

    LAS VEGAS – A Nevada woman pleaded guilty Monday to fraudulently seeking over $1 million in COVID-19 Paycheck Protection Program (PPP) loans.

    According to court documents, Karen Chapon, aka Karen Hannafious, 53, submitted six fraudulent PPP loan applications to three financial institutions for her companies. From April 2020 to July 2020, Chapon made multiple false statements about her companies’ respective business operations and payroll expenses, and submitted false documents to support the loan applications, including false federal tax filings. As part of the loan applications, Chapon falsely stated that she had not been convicted of a felony in the past five years, but in fact, she pleaded guilty to felony fraud offenses in 2016. She received four loans totaling approximately $596,931. Chapon used fraudulently obtained funds for her own benefit, including the purchase of a Mercedes Benz SUV.    

    Chapon pleaded guilty to one count of bank fraud. U.S. District Judge James C. Mahan scheduled sentencing for November 29, 2023. She faces a maximum statutory penalty of 30 years in prison, a five-year term of supervised release, restitution, and a fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

    The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

    Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; Special Agent in Charge Spencer L. Evans for the FBI; Inspector General J. Russell George for the Treasury Inspector General for Tax Administration (TIGTA); and Special Agent in Charge Weston King for the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region, made the announcement.

    This case was investigated by the FBI, TIGTA, and SBA-OIG. Trial Attorneys Lucy Jennings and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva of the District of Nevada are prosecuting the case.

    In May 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 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 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 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: Former Owner of Collapsed Nursing Home Empire Admits $38 Million Tax Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.

    Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.

    “Schwartz ran a vast, multistate nursing home empire, but cheated taxpayers out of more than $38 million so he could line his own pockets. Having admitted his crime, he will now be held accountable. My office will continue to work with our law enforcement partners to prosecute those who willfully participate in tax fraud schemes.”

    U.S. Attorney Philip R. Sellinger

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

    Schwartz, an insurance broker and operator of Skyline Management Group LLC (Skyline), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.

    According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the IRS trust fund taxes withheld from the pay of employees of Skyline and related companies. From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS. As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

    The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for April 10, 2025.

    U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to today’s guilty plea.

    The government is represented by Assistant U.S. Attorneys Kendall Randolph and Daniel H. Rosenblum of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

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  • MIL-OSI Security: West New York Financial Advisor Sentenced to 41 Months in Prison for Role in Multimillion-Dollar Health Care Fraud Conspiracy

    Source: US FBI

    CAMDEN, N.J. – A West New York financial advisor was sentenced today to 41 months in prison for 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced.

    Kaival Patel, 55, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler. U.S. District Judge Edward S. Kiel imposed the sentence today in Camden federal court.

    “This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”

    U.S. Attorney Philip R. Sellinger

    According to documents filed in this case and the evidence at trial:

    Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.

    Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.

    Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.

    To date, approximately 48 people have been convicted or pleaded guilty in the overarching conspiracy.

    In addition to the prison term, Judge Kiel sentenced Patel to three years of supervised release and ordered him to pay restitution of $4.72 million.

    U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.

    The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division and R. David Walk Jr., Deputy Chief of the Criminal Division.

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  • MIL-OSI Security: Bergen County Investment Advisor Admits Stealing Millions of Dollars from Clients

    Source: US FBI

    TRENTON, N.J. – A former broker and investment advisor today admitted stealing more than $3 million from five clients, U.S. Attorney Philip R. Sellinger announced.

    Kenneth A. Welsh, 42, of River Edge, New Jersey, pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to and indictment charging him with four counts of wire fraud and one count of investment advisor fraud.

    According to documents filed in this case:

    From July 2017 through March 2021, Welsh, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated at least $3 million from five clients. Welsh, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud the five clients by diverting money from their brokerage accounts to accounts under his control. Welsh then used the unlawfully obtained money to fund his gambling and to purchase high-end, luxury items for himself.

    Each of the wire fraud counts carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The investment advisor fraud count carries a maximum potential penalty of five years in prison and a $10,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for March 26, 2025.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, with the investigation leading to the guilty plea.

    The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.

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  • MIL-OSI Security: Monmouth County Man Charged with Armed Bank Robbery

    Source: US FBI

    TRENTON, N.J. – A Monmouth County, New Jersey, man made his initial court appearance today for an alleged armed bank robbery, U.S. Attorney Philip R. Sellinger announced today.

    Jeffrey L. Kniffin, 50, of Wall Township, is charged by complaint with one count of armed bank robbery. He appeared before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court and was detained. A detention hearing is scheduled for November 25, 2024.

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

    On Oct. 23, 2024, Kniffin entered a bank in Wall Township, New Jersey, and demanded cash from a bank teller before grabbing and displaying for the teller a firearm. On several occasions during the robbery, Kniffin instructed the teller and other bank employees who were present, “Don’t do anything stupid.” After taking by force and intimidation cash from the teller, Kniffin fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded firearm and more than $17,000 in cash.

    The count of armed bank robbery carries a maximum penalty of 25 years in prison and a fine of $250,000.

    U.S. Attorney Sellinger credited officer of FBI Newark’s Jersey Shore Safe Streets Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charges. He also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance.

    The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.

    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: Essex County Man Sentenced to 70 Months in Prison for Defrauding Victims in Car Theft and Fraudulent Resale Scheme

    Source: US FBI

    NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 70 months in prison for defrauding victims by orchestrating a multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.

    Warren Guerrier, 47, of Newark, previously pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an indictment charging him with conspiracy to commit wire fraud.

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

    From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. Guerrier and his conspirators identified vehicles to steal, then photographed, tracked, and advertised them for sale on the internet. The buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.

    The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims. As a result of the scheme, Guerrier and his conspirators collected approximately $285,000.

    In addition to the prison term, Judge Martini sentenced Guerrier to three years of supervised release and ordered restitution of $291,637.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark and Special Agent in Charge Lyonel Myrthil in New Orleans, with the investigation leading to the sentencing.

    The government is represented by Assistant U.S. Attorney Jessica R. Ecker of the Criminal Division in Newark.

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  • MIL-OSI Security: Former High School Teacher Found Guilty of Possessing Child Pornography

    Source: US FBI

    ABERDEEN, MS – A federal jury convicted a Booneville man for possessing child sexual abuse materials after hearing evidence for three days in a trial before Senior District Judge Glen H. Davidson in Aberdeen, Mississippi.

    According to court documents and evidence presented at trial, Andrew Murphy, 36, a former high school science teacher, was found guilty today for possessing child pornography. Sentencing has been scheduled for July 28, 2025, at the U.S. Courthouse in Aberdeen, Mississippi.

    Over two days of testimony, the government presented evidence to establish that Murphy collected images of child exploitation material, child nudity, child erotica, and images of children engaged in sexual activity, using a peer-to-peer network online.

    The statutory penalties are up to ten years imprisonment, five years to life on supervised release, and registration on the sex offender registration.

    “The case presented to the jury by AUSAs Parker King and John Herzog clearly established the guilt of this teacher who possessed images that demonstrated his sexual interest in children,” said U.S. Attorney Clay Joyner. “I cannot overstate the importance of our partnership with the Mississippi Attorney General’s Office, the FBI, and our local law enforcement partners, such as the Prentiss County Sheriff’s Department, in protecting children, and this partnership will continue to do just that.”

    “For every image of child pornography there is a child who is a victim and who will relive his or her abuse over and over again while that image circulates. We are committed to holding all predators who exploit Mississippi children accountable, and particularly those that hold positions of trust and care for our children,” said Attorney General Lynn Fitch. “I appreciate the strong partnership our office has with the U.S. Attorney’s Office and the FBI.  Together, we are dedicated to serving justice for the victims in this case and all others.”

    “Safeguarding our society’s future begins with protecting children in our community from predatory individuals like, Andrew Murphy,” said Special Agent in Charge Robert Eikhoff of the FBI Jackson Field Office. “Murphy held a position of trust and violated that trust that our communities had in him with these heinous crimes against our youth; it will not be tolerated. The FBI maintains a steadfast commitment, in working alongside our federal, state, and local partners, to protect the innocence of our minors, and aggressively investigate predators, like Murphy, to hold them accountable and make sure they are brought to justice.”

    The case was investigated and conducted by the Mississippi Attorney General’s Office and the FBI.

    Assistant U.S. Attorneys Parker S. King and John Herzog are prosecuting the case.

    The case against Andrew Murphy was brought as part of the Project Safe Childhood nationwide initiative by the Department of Justice to combat the 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, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. 

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  • MIL-OSI Security: Arkansas Woman Sentenced to 36 Months in Federal Prison for Stealing Over $300,000 From Elderly Customers at a New Hampshire Credit Union

    Source: US FBI

    CONCORD – An Arkansas woman was sentenced today in federal court for stealing over $300,000 from elderly customers at a New Hampshire credit union, Acting U.S. Attorney Jay McCormack and U.S. Attorney Jonathan D. Ross announce.

    Tyra Brown, 27, of Benton Arkansas, was sentenced by U.S. District Judge Brian S. Miller of the U.S. District Court for the Eastern District of Arkansas to 36 months in prison and three years of supervised release.  On January 23, 2025, Brown pleaded guilty in the Eastern District of Arkansas to one count of wire fraud.

    “The defendant deliberately abused her position of trust and chose to target elderly account holders, knowing some of whom were unfamiliar with electronic banking,” said Acting U.S. Attorney McCormack.  “The U.S. Attorney’s Office and our law enforcement partners are vigilantly working to protect Granite Staters from fraudsters like the defendant.”

    “Tyra Brown had no compunction about swindling elderly victims out of their hard-earned money. What she did isn’t just cowardly, it’s cruel,” said James Crowley, Acting Special Agent in Charge of the FBI Boston Division.  “The FBI will never stop working to shut down elder fraud schemes like this one.”

    Brown was a customer service representative for a New Hampshire credit union.  Because of her job, Brown could access customers’ personal identifying information, security questions and answers, and account balances. She was only permitted to access customer account information for business purposes, such as to answer customer questions on calls. Brown used that access to steal $301,674.89 from at least 10 elderly victims and attempted to steal $428,526.85 in total. Brown used wires, electronic debits, and Zelle to transfer victim funds to other accounts.

    The Federal Bureau of Investigation in New Hampshire led the investigation.  Assistant U.S. Attorneys Alexander S. Chen of the District of New Hampshire and Katie Hinojosa of the Eastern District of Arkansas prosecuted the case.

     

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