NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Wasilla Man Sentenced for 2021 Carjacking During Armed Police Altercation

    Source: US FBI

    ANCHORAGE, Alaska – A Wasilla man was sentenced today to over nine years in prison for his involvement in recklessly evading the police and using a firearm during a carjacking in 2021.

    According to court documents, on Dec. 17, 2021, an Anchorage Police officer attempted a traffic stop on Bryson McEneaney, 36, but he evaded the officer and fled north on the Glenn Highway towards Palmer. Palmer Police deployed spike strips to stop the vehicle.  McEneaney avoided the strips by driving into oncoming traffic and stopping the vehicle.

    Officers tased McEneaney as he exited the vehicle, but he was able to continue on foot towards a stopped vehicle.  McEneaney used a rifle to gain control of that vehicle.

    According to a press release from the Anchorage Police Department about the defendant’s actions on Dec. 17, law enforcement located McEneaney in the stolen vehicle on the Palmer-Wasilla Highway. The defendant wrecked the vehicle while attempting to elude Wasilla Police officers and fled on foot. He was located by law enforcement behind a transit building and taken into custody.

    At the time of this conduct, the defendant was previously convicted of multiple violent felonies from 2016, including vehicle theft, assault and burglary.

    “Mr. McEneaney’s selfish and careless actions in 2021 were the pinnacle of his habitual violent offenses over the years. I want to thank our law enforcement partners who did tremendous collaborative work to ensure Mr. McEneaney was off the streets and no longer a threat to our communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “My office will continue to work with law enforcement to prioritize prosecuting violent offenders who continually show disregard for the health and safety of Alaskans.”

    The FBI Anchorage Field Office, Alaska State Troopers, Anchorage Police Department, Palmer Police Department and Wasilla Police Department investigated the case.

    Assistant U.S. Attorney Karen Vandergaw prosecuted the case.

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    MIL Security OSI –

  • MIL-OSI Security: Defendant Sentenced to 16 Months in Prison for Mass Shooting Threat at University of Arizona

    Source: US FBI

    TUCSON, Ariz. – Michael Pengchung Lee, 27, of Tucson, was sentenced today by United States District Judge Rosemary Márquez to 16 months in prison, followed by three years of supervised release. The conditions of supervised release include substance abuse testing, a mental health assessment, location monitoring, and a no-contact provision that precludes defendant from being on the University of Arizona campus. Lee pleaded guilty on April 10, 2024, to Interstate Threats for transmitting threats through interstate communications to commit a mass shooting at the University of Arizona.

    The complaint previously filed in this case alleged that on October 22, 2023, Lee transmitted threats to commit a mass shooting at the university in a group chat on Snapchat. Lee is not a student at the university but expressed a desire to get revenge on “all the chads and stacies!!” “Chads” and “stacies” are commonly used terms by self-described involuntary celibates (incels). Lee made further reference to incel ideology and finished the conversation by stating “im gonna do it guys, my mind is made up and there’s nothing u can do or say to stop me.”

    On April 10, 2024, Lee admitted to sending multiple Snapchat messages on October 22, 2023, to a group chat threatening to commit a mass shooting at the University of Arizona. Lee further admitted that those messages referenced incel ideology, language, and motivations, including referring to a well-known, self-identified incel and mass shooter. Lee also admitted to threatening to commit a mass shooting at the university in at least two other Snapchat conversations, citing the same incel ideology and motivations.

    The Federal Bureau of Investigation and the University of Arizona Police Department, as part of the FBI’s Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. Assistant U.S. Attorney Adam Rossi, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:           CR-23-01694-TUC-RM
    RELEASE NUMBER:    2024-086_Lee

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

    MIL Security OSI –

  • MIL-OSI Security: Fort Defiance Man Sentenced to More Than 15 Years in Prison for Abusive Sexual Contact of a Child

    Source: US FBI

    PHOENIX, Ariz. – Leonard Thomas Stewart, III, 24, of Fort Defiance, was sentenced on June 17, 2024, by United States District Judge Michael T. Liburdi to 188 months in prison, followed by lifetime supervised release. Stewart pleaded guilty to Abusive Sexual Contact of a Child on October 31, 2023. 

    Between October 3, 2017, and July 11, 2019, Stewart engaged in abusive sexual contact with the minor victim on numerous occasions. One instance of sexual contact occurred in Fort Defiance while Stewart and the minor victim were riding horses together. Both the victim and Stewart are members of the Navajo Nation Indian Tribe and the abusive sexual contact occurred on the Navajo Nation Indian Reservation.

    The Federal Bureau of Investigation and the Navajo Nation Police Department conducted the investigation in this case. Assistant U.S. Attorney Christina J. Reid-Moore, District of Arizona, Phoenix, handled the prosecution.
     

    CASE NUMBER:            CR-21-08029-PCT-MTL
    RELEASE NUMBER:    2024-091_Stewart

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

    MIL Security OSI –

  • MIL-OSI Security: Douglas Man Who Burned Two Churches Convicted of Hate Crimes and Arson

    Source: US FBI

    TUCSON, Ariz. – Yesterday, a federal jury in Tucson found Eric Ridenour, 58, of Douglas, guilty of all six arson and hate crimes counts, for the burning of two churches on May 22, 2023.

    Ridenour burned down two churches in Douglas, Arizona: Saint Stephen’s Episcopal Church and First Presbyterian Church. The churches were located on Church Square, a historic district in the border town of Douglas, approximately two hours southeast of Tucson. It is believed to have been the only intersection in the nation containing churches from four different denominations: Southern Baptist, Presbyterian, Episcopal, and Methodist. Trial testimony established that Ridenour intentionally started the fires in both churches because of his hostility towards their practice of having women and members of the LGBTQ community serve in church leadership roles. Ridenour was arrested on May 23, 2023.

    “Religious freedom is sacrosanct in America,” said United States Attorney Gary Restaino. “Arson of a church is deplorable. Arson motivated by objections to the religious principles of a church’s congregation is worse. Many thanks to Saint Stephen’s Episcopal Church and First Presbyterian Church, and their parishioners, for their collective courage in responding to this hate crime.”

    A conviction for Arson of Property Used in Interstate Commerce carries a minimum penalty of five years in prison and maximum penalty of 20 years in prison. A conviction for Obstruction of Free Exercise of Religious Beliefs by Fire carries a maximum penalty of 20 years in prison. A conviction for Using Fire to Commit Federal Felony carries a penalty of 10 years in prison. A second conviction for Using Fire to Commit Federal Felony carries a penalty of 20 years in prison.

    Sentencing is scheduled for October 22, 2024, before United States District Court Judge Scott H. Rash.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Douglas Police Department conducted the investigation in this case. Assistant U.S. Attorneys Austin Fenwick, Ben Goldberg, and Adam Rossi, District of Arizona, handled the prosecution.
     

    CASE NUMBER:            CR 23-00908-TUC-SHR
    RELEASE NUMBER:    2023-093_Ridenour

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

    MIL Security OSI –

  • MIL-OSI Security: Lead Defendant in Long Running Drug Trafficking Conspiracy Extradited to the United States From Mexico

    Source: US FBI

    Justice Department Recognizes Mexican Government for Significant Assistance
     

    TUCSON, Ariz. – Rodrigo Paez-Quintero, a Mexican national, has been extradited from Mexico to the United States to face charges related to drug trafficking. Paez-Quintero’s surrender to U.S authorities after an extradition proceeding in Mexico demonstrates the ongoing cooperation between the United States and Mexico to combat the influx of dangerous drugs, including fentanyl, into the United States.

    Paez-Quintero made his initial court appearance today in the U.S. District Court for the District of Arizona in Tucson.

    “Our fight against international drug traffickers who spread poison into our communities requires all hands on deck,” said Deputy Attorney General Lisa Monaco. “This extradition is yet another example of our partnership with Mexican law enforcement to dismantle deadly cartels and bring drug kingpins to justice.”

    “This indictment alleges coordinated conduct to traffic fentanyl and other illicit drugs into Phoenix,” said United States Attorney Gary Restaino. “Many thanks to our federal, foreign and sovereign tribal partners for their teamwork and dedication.”

    Paez-Quintero is charged in an indictment with Conspiracy to Possess with Intent to Distribute Heroin, Methamphetamine, and Fentanyl and multiple counts of Possession with Intent to Distribute Heroin, Methamphetamine, and Fentanyl. Each count carries a maximum sentence of life in prison and a maximum fine of $10,000,000. In the year prior to March 2019, the indictment alleges defendant’s involvement in at least nine drug trafficking events from the Lukeville Port of Entry, through Ajo and up to Phoenix. According to numerous open sources, Paez-Quintero is the nephew of jailed Mexican drug kingpin Rafael Caro-Quintero.

    An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

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

    The Drug Enforcement Administration – Tucson, Homeland Security Investigations – Sells, and the Federal Bureau of Investigation – Tucson conducted the investigation in this case, with substantial assistance from the Tohono O’odham Nation Police Department. The United States Marshals Service assisted with the extradition efforts. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Paez-Quintero. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.

    CASE NUMBER:            CR-19-2042-TUC-JAS
    RELEASE NUMBER:    2024-094_Paez-Quintero

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

    MIL Security OSI –

  • MIL-OSI Security: Southern Arizona Man Indicted for Second Degree Murder

    Source: US FBI

    TUCSON, Ariz. – Last week, a federal grand jury indicted Santiago Luis Valencia, Jr., 34, of Tucson, on one count of Second Degree Murder. Valencia is an enrolled member of the Pascua Yaqui Tribe.

    It is alleged that on June 15, 2024, the victim and Valencia engaged in a verbal altercation that later turned physical. According to witnesses, Valencia was the initial aggressor and assaulted the victim by striking the back of the victim’s head against a windowsill on the exterior of the residence where the incident occurred. The victim died the following day as a result of the injuries sustained during the fight.

    Second Degree Murder carries a maximum penalty of life in prison, a fine of up to $250,000, and five years of supervised release.

    An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

    The Federal Bureau of Investigation conducted the investigation in this case. Assistant United States Attorneys Nathaniel J. Walters and Caroline Allen, District of Arizona, Tucson, are handling the prosecution.
     

    CASE NUMBER:           CR-24-04265-TUC-JGZ
    RELEASE NUMBER:    2024-096_Valencia

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Arkansas Man Sentenced to 14 Years in Prison for Traveling to Phoenix to Meet Minor for Sex

    Source: US FBI

    PHOENIX, Ariz. – Andrew Lee Butler, 49, of Arkansas, was sentenced last week to 14 years in prison after a jury found him guilty on March 15, 2024, on two charges: Attempted Coercion and Enticement of a Minor and Interstate Travel to Meet a Minor for Sex.

    Butler was arrested on December 8, 2022, at Phoenix Sky Harbor International Airport after he communicated with an undercover FBI special agent’s account on a social media platform that he believed belonged to a 13-year-old girl. During the 38 days of daily chats between Butler and the FBI special agent who posed as the girl, Butler quickly raised the idea of having sex with the girl and planned travel to Phoenix to be with her for a weekend in December 2022. Butler believed the girl’s grandmother would be her caretaker for the weekend and that her mother was out of town. He encouraged the girl to talk with a friend of his who he claimed had been sexually active with older men and who had avoided detection. Butler reserved a hotel room, a car, and planned to pick the girl up after school. Butler encouraged her to talk to her mother about getting the HPV vaccination prior to his arrival as she needed parental approval to get it since she was under age 16.

    Butler’s phone revealed that he had done an internet search for statutory rape laws in Arizona. When Butler was arrested at the airport, he was found in possession of eight sex devices, an emergency contraceptive pill, condoms, and shower gel and a sponge in the girl’s favorite color.

    The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Jennifer Corbet, District of Arizona, Phoenix, AZ, handled the prosecution. 
     

    CASE NUMBER:            CR-22-01695-PHX-SPL
    RELEASE NUMBER:    2024-095_Butler

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

    MIL Security OSI –

  • MIL-OSI Security: Sells Man Sentenced to 235 Months in Prison for Sexual Abuse of a Minor

    Source: US FBI

    TUCSON, Ariz. – Roy Samuel Paredes, 64, of Tucson, was sentenced by United States District Judge James A. Soto on June 24, 2024, to 235 months in prison, followed by a lifetime term of supervised release. Paredes pleaded guilty to Sexual Abuse of a Minor on November 8, 2023.

    In the summer of 2021, Paredes, an enrolled member of the Tohono O’odham Nation, molested a young girl on the Tohono O’odham Nation in Sells, Arizona.

    The Tohono O’odham Nation Police Department and Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Matthew C. Cassell, District of Arizona, Tucson, handled the prosecution.
     

    CASE NUMBER:            CR-22-1914-TUC-JAS
    RELEASE NUMBER:    2024-098_Paredes

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

    MIL Security OSI –

  • MIL-OSI Security: Man Pleads Guilty to Making Threats to Arizona Election Office

    Source: US FBI

    An Alabama man pleaded guilty today to sending threatening messages to election workers with Maricopa County Elections in Phoenix.

    “The functioning of our democracy requires that our country’s public servants be able to do their jobs without fearing for their lives,” said Attorney General Merrick B. Garland. “We have no tolerance for this kind of heinous criminal conduct and the danger it poses to people’s safety and to our democratic process. Threats and acts of violence targeting those who serve the public will be met with the full force of the United States Justice Department.”

    “Violent threats to election workers are threats to our democracy and democratic process. We cannot allow threats of violence against public servants to become normalized,” said FBI Director Christopher Wray. “The FBI takes seriously all threats of violence against public officials and will continue to pursue threats and acts of violence aimed at election workers.

    “Brian Ogstad repeatedly threatened to kill Maricopa County election workers and officials,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “As today’s guilty plea demonstrates, the Department is committed to holding accountable those who target election workers and officials with threats of violence. I am especially grateful to the Election Threats Task Force, which continues to spearhead the Department’s efforts to ensure that public servants who administer our elections can do their jobs free from threats and intimidation.”

    “This guilty plea should send a message to anyone who tries to take the rule of law into their own hands through vigilante justice,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But it also showcases the resilience of public servants. Thanks to the election professionals in Maricopa County who have worked courageously to maintain free and fair elections in spite of the threats received.”

    According to court documents, on Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through Aug. 4, 2022, Brian Jerry Ogstad, 60, of Cullman, sent multiple threatening direct messages to an Instagram social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated, (1) “You did it! Now you are [expletive]. Dead. You will all be executed for your crimes”; (2) “[expletive] you! You are caught!  They have it all. You [expletive] are dead”; (3) “You are lying, cheating [expletive] . . . you better not come in my church, my business or send your kids to my school. You are [expletive] stupid if you think your lives are safe”; and (4) “You [expletive] are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking [sic] stupid. Everyone knows you are lots [sic], cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang [expletive]!”

    Ogstad pleaded guilty to one count of making a threatening interstate communication. He is scheduled to be sentenced on Oct. 21 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Phoenix Field Office is investigating the case, with substantial assistance from the FBI Birmingham Field Office.

    Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.

    This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers—whether elected, appointed, or volunteer—are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. The task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

    The task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

    To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

    MIL Security OSI –

  • MIL-OSI Security: Former Morgan Stanley Financial Advisor Pleads Guilty to Defrauding His Elderly Client

    Source: US FBI

    TUCSON, Ariz. –Ronald Diaz, 40, of Tucson, pleaded guilty on July 18, 2024, to Wire Fraud. Sentencing is scheduled for September 27, 2024, before United States District Judge Scott H. Rash.

    While working as a financial advisor, Diaz engaged in a scheme to defraud an elderly client. To induce the victim into the scheme, Diaz falsely represented an investment opportunity in an “annuity” that “guaranteed” a 10% return. Between November 2020 and July 2022, to disguise his scheme, Diaz directed the victim to transfer $970,000 to Diaz’s family members. Diaz thereafter instructed his family members to distribute most of the victim’s funds back to Diaz. Once he received the funds, Diaz used large portions of the victim’s money for his own personal benefit including gambling at casinos, making a down payment on a 2021 Range Rover, paying credit card debt, remodeling his family pool, paying his mortgage, and paying other personal expenses. Diaz made some “interest” payments to entice the victim into providing additional money throughout the scheme. None of the victim’s money was used towards any legitimate investment. As a result of the scheme, the victim lost over $867,000. As part of his plea agreement, Diaz will be required to pay restitution to the victim’s estate.

    A conviction for Wire Fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or both. 

    The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
     

    CASE NUMBER:           CR-24-04092-TUC-SHR  
    RELEASE NUMBER:    2024-104_Diaz

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: Arizona Man Arrested for Assaulting Law Enforcement and Other Charges During January 6 Capitol Breach

    Source: US FBI

               WASHINGTON — An Arizona man has been arrested on felony and misdemeanor charges for his alleged conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His alleged 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.

               Jason Robert Tasker, 43, of Glendale, Arizona, is charged in a criminal complaint filed in the District of Columbia with felony offenses of assaulting, resisting, or impeding certain officers with a deadly or dangerous weapon and obstruction of law enforcement during a civil disorder. In addition to the felonies, Tasker is charged with four misdemeanor offenses, including entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building, and parading, demonstrating, or picketing in a Capitol building.

               Tasker was arrested on July 30, 2024, in Arizona, and he will make his initial appearance in the District of Arizona.

               According to court documents, Tasker attended the “Stop the Steal” rally in Washington, D.C., on Jan. 6, 2021, and afterward made his way toward the west side of the Capitol building. Tasker then climbed the Northwest Stairs and helped other rioters lower down and remove a bike rack. Tasker then climbed down to the Northwest Lawn and joined a group of rioters that surrounded some United States Capitol Police (USCP) officers.

               Tasker followed the officers around the Capitol building, yelling at them, including, “All of you are dismissed; go home!” Tasker later arrived at the North Screening Entrance on the east side of the Capitol. Here, a group of USCP officers were stationed behind a line of bike rack barricades. Tasker screamed at these officers, and within a few minutes, a group of rioters, including Tasker, broke through the barriers and entered the East Plaza.

               Tasker then walked to the Senate Carriage Door and forced his way to the front of a crowd of rioters attempting to gain entrance into the building. Tasker then flung himself toward a group of police officers guarding the entrance to the building, who pushed him back. These officers then began to attempt to clear rioters from the building. Tasker then lunged at the officers a second time and grabbed onto two USCP officers.

               After Tasker’s alleged second lunge, an officer deployed OC spray that caused him to retreat. Tasker later joined a mob on the East Stairs at around 2:43 p.m. and allegedly entered the Capitol building. Inside, Tasker went through the East Foyer and into the Rotunda. In the Rotunda, Tasker began to take pictures with his cell phone as a police line formed to direct the mob of rioters out of the Rotunda. Tasker approached the police line, confronted the officers, and remained in the building until approximately 3:13 p.m.

               After Tasker left the building, it is alleged that he remained on the Capitol stairs and made a phone call. Tasker can be overheard in a third-party video saying, “I was like the first person in, Momma.” Tasker allegedly remained outside the Rotunda doors for over an hour and continued to confront police.

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

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

               In the 42 months since Jan. 6, 2021, more than 1,470 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 530 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.

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

    MIL Security OSI –

  • MIL-OSI Security: Operation ‘Candyland’ Leads to Multiple Drug Arrests in Marianna and Forrest City

    Source: US FBI

          MARIANNA—A coordinated arrest operation took place this morning in Marianna and Forrest City as part of an ongoing federal drug investigation. Dubbed “Operation Candyland,” this investigation by the FBI, Arkansas State Police, the First Judicial Drug Task Force, and the St. Francis County Sheriff’s Office, focused on individual independent distributors of methamphetamine and cocaine in Lee and St. Francis Counties.

          Law enforcement began early this morning by searching for six suspects, all of whom were indicted for federal drug-trafficking crimes. Two others, who were already in custody when this morning’s roundup began, were also indicted. Five of the suspects were taken into custody: Eddie Bonner, 27, of Marianna, is charged with four counts of distribution of methamphetamine; Lance Hendrix, 39, of Marianna, is charged with four counts of distribution of methamphetamine; Leonard People, 26, of Marianna, is charged with one count of distribution of cocaine; Cedric Woods, 46, of Marianna, is charged with two counts of distribution of cocaine; and Jeremy Buchanan, 32, of Forrest City, is charged with one count of distribution of cocaine. Alfred Bonner, 28, of Marianna, and Clenton Wofford, 42, of Pine Bluff, are in custody stemming from unrelated criminal charges.  Alfred Bonner is charged federally, along with Eddie Bonner, with drug conspiracy and distribution of methamphetamine. Wofford is charged federally with one count of distribution of methamphetamine.  Most of the defendants who were arrested this morning will appear tomorrow afternoon for arraignment before United States Magistrate Judge Patricia S. Harris.

          This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The case is being prosecuted by Assistant United States Attorney Julie Peters.

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

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Repeat Sex Offender Sentenced to More Than 27 Years in Prison for Attempted Enticement of a Minor

    Source: US FBI

          LITTLE ROCK—A repeat and dangerous sex offender against children was sentenced this afternoon for attempted enticement of a minor. United States District Court Judge Jay Moody sentenced Joe Newman, 64, of Star City to more than 27 years in federal prison and, should he survive his prison sentence, supervised release for the rest of his life.

          In early 2020, Star City Police Department began investigating Newman after the mother of a 10-year-old girl reported sexually explicit messages that were being sent to her daughter by Newman on Instagram. Law enforcement initiated a ruse using the child’s Instagram account and agreed to meet Newman.  Newman then sent law enforcement a nude picture of himself, believing law enforcement was the child victim.  Newman was traffic-stopped on his way to meet the victim, and his telephone was seized.

          Investigation of Newman’s Instagram account revealed conversations between himself and numerous other minors, to whom he sent nude pictures of himself. In an interview with law enforcement, Newman admitted to messaging 20 to 30 underage girls in the Lincoln County, Arkansas, area.  In addition, Newman admitted performing oral sex on and receiving oral sex from nine victims, ages eight to 13. 

          Newman is a registered sex offender with several prior convictions for violent sex offenses against children under the age of 16. Newman was originally indicted by a grand jury on December 1, 2020, and charged with four counts related to child pornography, as well as the attempted enticement charge. On Wednesday, Judge Moody sentenced Newman to 327 months’ imprisonment, plus lifetime supervised release. There is no parole in the federal system. 

          The investigation was conducted by the Star City Police Department and the FBI. The case was prosecuted by Assistant United States Attorney Kristin Bryant.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Arkansas Doctor Sentenced to More Than Eight Years in Federal Prison for Accepting Kickbacks, Defrauding TRICARE, and Failed Attempts to Obstruct Investigation

    Source: US FBI

          LITTLE ROCK—An Arkansas doctor at the heart of a $12 million scheme to defraud TRICARE will spend the next 102 months in federal prison. Earlier today, United States District Judge Kristine G. Baker sentenced Joe David May, a.k.a. Jay May, 42, of Alexander, to 102 months’ imprisonment and ordered him to pay more than $4.63 million in restitution to TRICARE, the health insurer for our nation’s military.

          A 2020 indictment charged May with twenty-two counts, including conspiracy, wire fraud, mail fraud, violating the anti-kickback statute, lying to the FBI, falsifying records, and aggravated identity theft. After a six-day trial in June 2022, a jury convicted May on all twenty-two counts.

          Proof at trial showed May stood at the center of a bogus prescription-drug assembly line and, later, went to great lengths in a failed bid to cover it up.

          As part of the scheme, recruiters found military personnel and veterans with TRICARE and filled out prescriptions for compounded drugs in their names—selecting which drugs to supply (usually the most expensive) and how many refills to authorize. All that was missing were prescriber signatures. So, middlemen routed the pre-filled prescriptions to medical professionals, like May, to be rubber stamped without consulting the ‘patient’ or any regard for whether drugs were needed.  TRICARE paid over $12 million for prescriptions generated in this scheme, part of a wave of fraudulent schemes around the country that saw TRICARE spend over $2 billion for compounded prescription drugs in 2015.

          In exchange for thousands in cash kickbacks, May rubber stamped 226 prescriptions for which TRICARE paid over $4.63 million. All but one of his prescriptions were for ‘patients’ May did not know, never treated, and knew nothing about.

          Following the execution of search warrants at compounding pharmacies around the country, May visited the FBI to answer questions about his prescriptions. May lied by claiming he only signed prescriptions for people he evaluated and denying he received kickbacks. Obstruction continued when May got a subpoena for prescriptions and related ‘patient’ records. May turned over but a fraction of the prescriptions he signed and fabricated medical records to make it seem like the drug recipients were really his patients. Finally, as trial approached, May tried to mischaracterize a $5,000 cash kickback as Oaklawn winnings from the 2015 Arkansas Derby.

          All nine of May’s co-conspirators pled guilty to conspiracy and elected to cooperate with federal law enforcement, with several testifying at trial. All but one co-conspirator has been sentenced:

    Name

    Age

    Hometown

    Case No.

    Sentence

    Derek Clifton

    41

    Alexander, Ark.

    4:20-CR-25

    51 mos. imprisonment, $1.1M forfeiture

    Albert Glenn Hudson

    42

    Sherwood, Ark.

    4:20-CR-129

    48 mos. imprisonment, $1.5M forfeiture

    Donna Crowder

    68

    North Little Rock

    4:20-CR-130

    12 mos. 1 day imprisonment, $18K fine

    Jennifer Crowder

    40

    Little Rock

    4:20-CR-131

    12 mos. home confinement, $89K forfeiture

    Keith Benson

    52

    North Little Rock

    4:20-CR-132

    15 mos. imprisonment, $727K forfeiture

    Kenneth Myers, Jr.

    44

    Maumelle, Ark.

    4:20-CR-25

    3 years probation, $68K forfeiture

    Keith Hunter

    54

    Little Rock

    4:20-CR-235

    TBD

          Through the prosecution of May and his nine co-conspirators, the United States has recovered nearly $8 million in restitution, forfeiture, and fines.

          “Our healthcare system is built on trust, and those who abuse it do so at their peril,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Dr. May accepted kickbacks, cheated TRICARE, and tried to deceive federal agents investigating his crimes. Now, he will trade hospital scrubs for a prison uniform. Let his case serve as a warning to others in the medical industry. Our office and our partners at the FBI and HHS-OIG are committed to rooting out anyone who succumbs to the temptation of ‘easy money.’”

          “By defrauding TRICARE, Dr. May stole from our service men and women, military retirees, and their families. He robbed Americans who had sworn an oath to defend our nation, and he pickpocketed American taxpayers,” said FBI Little Rock Special Agent in Charge James A. Dawson. “Today’s sentencing induces accountability, and demonstrates there is no place in our society for the behavior exhibited by Dr. May. The FBI and its partners will continue to aggressively investigate those who undermine the integrity of our nation’s healthcare system.”

          “Federal healthcare programs rely on the honesty and integrity of doctors to prescribe medically necessary medications to their patients,” said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services, Office of Inspector General. “On the contrary, Dr. May signed pre-filled prescriptions filled out by a pharmaceutical rep for patients he had no doctor-patient relationship with and all on the backs of the American taxpayer. HHS-OIG is laser-focused on investigating doctors and other medical professionals who lie, cheat, and steal from American taxpayers for their own personal benefit, and we will continue to work with our law enforcement partners and the U.S. Attorney’s Office to hold them accountable.”

          In addition to the 102-month prison sentence, Judge Baker sentenced May to three years’ of supervised release following imprisonment. May was also ordered to pay more than $4.63 million in restitution and a $2,200 special assessment.  The investigation was conducted by the FBI and HHS-OIG. The case was prosecuted by Assistant United States Attorneys Alexander D. Morgan and Stephanie G. Mazzanti.

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Sex Offender Sentenced to 25 Years in Federal Prison for Child Pornography Offense

    Source: US FBI

    TEXARKANA  – A Hot Springs man was sentenced today to 300 months in prison without the possibility of parole on one count of Transportation of Child Pornography. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, which was held in the U.S. District Court in Texarkana, Arkansas.

    According to court documents, in early 2022, the Federal Bureau of Investigation (FBI) received information from the National Center for Missing and Exploited Children that an individual in Hot Springs had posted numerous images of child sexual abuse material (CSAM) to the social media platform Snapchat. The subsequent investigation determined that all the CSAM posts were made by the same user, who was identified as Brandon Joshua Napier, age 33. At the time, Napier had previously been convicted of Possessing or Viewing Child Pornography and was consequently required to register as a Sex Offender while residing in Garland County.

    Napier was indicted by a Grand Jury in the Western District of Arkansas in June 2022 and entered a plea of guilty in September 2022.

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

    The Federal Bureau of Investigation, the Arkansas Department of Community Corrections, and the Hot Springs Police Department participated in the investigation of the case.

    Assistant U.S. Attorney Carly Marshall and Assistant U.S. Attorney Devon Still prosecuted the case on behalf of the United States.

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

    MIL Security OSI –

  • MIL-OSI Security: Former Arkansas State Senator Sentenced for Role in Bribery Scheme

    Source: US FBI

    A former Arkansas state senator was sentenced yesterday to four years and two months in prison in the Western District of Missouri for accepting multiple bribes in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.

    Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery. On Feb. 3, Hutchison was sentenced to three years and 10 months in prison for his convictions in the Eastern District of Arkansas and Western District of Arkansas. His sentence in the Western District of Missouri will run consecutive to the previous sentence for a total of eight years in prison.

    According to court documents in connection with his plea in the Western District of Missouri, Hutchinson was hired by then-chief operating officer Bontiea Goss as outside counsel for Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based healthcare charity. In exchange for payments and legal work, Hutchinson performed official acts on behalf of Preferred Family Healthcare, including holding up agency budgets and drafting and voting on legislation. Preferred Family Healthcare paid Hutchinson more than $350,000 in monthly retainer payments from May 2014 until 2017.

    In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the company admitted to the criminal conduct of its former officers and employees.

    Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:

    • Former Chief Operating Officer Bontiea Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
    • Former Chief Financial Officer Tommy “Tom” Ray Goss, husband of Bontiea Goss, and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
    • Former Chief Executive Officer Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
    • Former Director of Operations and Executive Vice President Robin Raveendran of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
    • Former executive and head of clinical operations Keith Fraser Noble of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
    • Former employee and head of operations and lobbying in Arkansas Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
    • Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy to steal from an organization that receives federal funds.
    • Former Arkansas State Representative Eddie Wayne Cooper of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
    • Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.

    Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office, Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office, and Acting Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office made the announcement.

    The FBI, IRS-CI, the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation investigated the cases.

    Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorney Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.

    MIL Security OSI –

  • MIL-OSI Security: Former Preschool Teacher’s Assistant Sentenced to 90 Years in Federal Prison for Producing Child Pornography

    Source: US FBI

    Defendant abused preschool-aged children in his care at Miss Selma’s School.

          LITTLE ROCK— Augustus “Gus” Shenker, 23, of Little Rock was sentenced to serve the next 90 years in federal prison for production of child pornography. Shenker was sentenced earlier today by United States District Judge Lee P. Rudofsky.

          In May 2021, FBI received a cyber tip that Dropbox user Augustus Shenker, using an email address that contained his name, possessed seven videos containing child pornography. Investigators determined Shenker’s address and learned that he was employed at Miss Selma’s School in Little Rock, an early education school with children from 18 months old to fifth grade.

          FBI agents obtained a search warrant for Shenker’s home and made contact with him at the school where he worked. Law enforcement seized Shenker’s iPhone and advised him a search warrant was being executed at his residence.

          A review of items seized from Shenker’s residence revealed six videos created in March 2021 that showed Shenker touching the buttocks and vagina of a preschool-age child in a classroom at Miss Selma’s School. His iPhone contained a hidden folder with 19 additional videos, all of which were taken in the same preschool classroom where Shenker worked. Shenker’s face is visible in several of the videos. In addition to the videos of abuse that Shenker produced himself, law enforcement located more than a thousand images of child sexual abuse on Shenker’s phone and other devices. Shenker later admitted making the videos of the preschool-age children during nap time.

          Shenker was first charged in a criminal complaint on May 18, 2021, when the FBI received the initial cyber tip. On June 1, 2021, after the discovery of the videos on his phone, a federal grand jury returned an indictment, charging Shenker with 22 counts of production of child pornography and one count of possession of child pornography. Shenker pleaded guilty to three counts of production of child pornography in December 2022. Judge Rudofsky sentenced Shenker to the maximum of 30 years on each count, to run consecutively, for a total of 90 years. In addition to the 90-year prison term, Shenker was sentenced to life of supervised release following imprisonment.  There is no parole in the federal system.  

          “We are grateful that Judge Rudofsky imposed the maximum sentence allowed by the law against Mr. Shenker,” said United States Attorney Jonathan D. Ross. “This sentence ensures that Mr. Shenker will spend the rest of his life in prison, which means he will never harm another child.  In the Eastern District of Arkansas, we will not waste time empathizing with adults who have a sexual interest in children, but rather resolve to fully investigate and prosecute each and every child predator. Our office, the FBI, and the National Center for Missing and Exploited Children will maintain our commitment to make sure that every criminal that harms and exploits children will be brought to justice.”

          “As an educator, Mr. Shenker was entrusted to support and protect our children,” said FBI Special Agent in Charge James A. Dawson. “Instead, he chose to exploit and manipulate the very children he was hired to teach. Today’s sentence ensures he will never again victimize our community. FBI Little Rock will continue to utilize all resources to protect innocent youth from predators who seek to harm them.”

          The investigation was conducted by the FBI Little Rock Child Exploitation and Human Trafficking Task Force and was prosecuted by Assistant United States Attorney Kristin Bryant.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Arkansas Man Sentenced on Felony and Misdemeanor Charges Related to Capitol Breach

    Source: US FBI

    Defendant Illegally Entered the Office of the Speaker of the House

                WASHINGTON – An Arkansas man was sentenced today in the District of Columbia on felony and misdemeanor charges for his actions during the Jan. 6, 2021, Capitol Breach. 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 presidential election.

                Richard Barnett, 62, of Gravette, Arkansas, was sentenced to 54 months in prison, 36 months of supervised release, and a $2,000 fine, following a sentencing hearing before U.S. District Court Judge Christopher R. Cooper scheduled a sentencing hearing for May 3, 2023. Barnett was found guilty, on January 23, 2023, of all charges including: obstruction of an official proceeding, interfering with a police officer during a civil disorder, entering and remaining in a restricted building or grounds with a dangerous or deadly weapon, disorderly and disruptive conduct in a restricted building or grounds with a dangerous weapon, all of which are felonies.  He was also found guilty of entering and remaining in certain rooms in a capitol building, disorderly conduct in a capitol building, theft of government property, parading or demonstrating in a capitol building.

                According to the government’s evidence, U.S. Capitol Police learned that an individual had entered the restricted office area of the Speaker of the House of Representatives Nancy Pelosi and was photographed with his feet propped up on furniture. Those photos were circulated on numerous news media platforms which identified the individual as Barnett. A search of law enforcement databases confirmed that the individual in the news photographs did in fact appear to be Barnett. 

                Evidence established that Barnett carried a Zap Hike ‘N Strike Walking Staff with spike electrodes with him as he traveled through the Capitol, and that he exposed those spike electrodes as various points that day, including during a face-to-face encounter with a Metropolitan Police Officer. During that encounter, Barnett threatened to call in the mob and push through the line of officers if the officer did not go and retrieve Barnett’s flag, that he had left in the officers of the former Speaker of the House of Representatives, Nancy Pelosi. 

                This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia with valuable assistance from the U.S. Attorney’s Office for the Eastern District of Arkansas.

                This case was investigated by the U.S. Capitol Police and the FBI’s Little Rock, Arkansas and Washington Field Offices, with the assistance of the Justice Department’s National Security Division.

                In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

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

    MIL Security OSI –

  • MIL-OSI Security: Life in Federal Prison for Pope County Drug Trafficker Associated with White Supremacist Gang

    Source: US FBI

          LITTLE ROCK— Marcus Millsap, 55, of Little Rock, was sentenced to life in federal prison for conspiracy to violate racketeering laws, attempted murder in aid of racketeering, and conspiracy to distribute methamphetamine. Millsap was sentenced earlier today by United States District Judge Brian S. Miller.

          Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering,  and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities, including drug distribution, solicitations of murder, and attempted murder.

          At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death. This conduct resulted in Millsap’s conviction for attempted murder in aid of racketeering.

          “The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children, and the United States will seek significant prison sentences.”

          In addition to the life sentence, Millsap was ordered to pay a $200,000 fine and was sentenced to 10 years of supervised release should he ever be released from prison. The investigation was conducted by the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.  

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

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Former Little Rock Police Officer Convicted of Receipt of Obscene Images and Possession of Child Pornography After Three-Day Jury Trial

    Source: US FBI

          LITTLE ROCK— A jury found former Little Rock Police Officer Eddie Scott Seaton, 55, of Cabot, guilty of receiving obscene images and possession of child pornography.  The jury returned their verdict Thursday afternoon to Chief United States District Judge D.P. Marshall, Jr., who presided over the three-day trial.  Judge Marshall will sentence Seaton at a later date.

          Testimony during the trial established that, on December 11, 2019, a Special Agent with the North Dakota Bureau of Criminal Investigations downloaded child pornography from someone using an IP address that returned to Seaton in Cabot.  Nineteen days later, law enforcement executed a search warrant at Seaton’s residence and seized electronic devices belonging to Seaton.  A search of Seaton’s computer revealed almost 300 images of child pornography and over 120 images of obscene anime.  The obscene anime depicted adults raping children and children engaged in sexually explicit conduct.  Law enforcement also located near Seaton’s computer stories handwritten by Seaton that described various instances of an adult female having sex with two minor boys.  Those writings described many of the actions depicted in the obscene anime seized from Seaton’s computer.

          “This case shows that even those who swear to uphold the law can violate it in the most despicable way,” said United States Attorney Jonathan D. Ross. “Commerce in sexually explicit images of children is not a victimless crime, and our office is committed to protecting those most vulnerable in our community. The jury today properly held Mr. Seaton accountable for his receipt and possession of images depicting the sexual exploitation of children.”

          The statutory penalty for receipt of obscene images is not less than five years and not more than twenty years imprisonment.  The statutory penalty for possession of child pornography is not more than ten years imprisonment.  Both offenses of conviction include a penalty of not more than a $250,000 fine and supervised release of not less than five years and not more than life.

          The investigation was conducted by the FBI Little Rock Child Exploitation and Human Trafficking Task Force and Arkansas State Police and is being prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Drug Trafficking Organization Sentenced to More Than 184 Years Combined in Federal Prison

    Source: US FBI

    FAYETTEVILLE – The final member of a Northwest Arkansas drug trafficking organization was sentenced to federal prison for crimes related to the Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearings for the United States District Court in Fayetteville.

    According to court documents, beginning in approximately September of 2020, agents with the Drug Enforcement Administration (DEA) initiated an investigation into a drug trafficking organization operating out of the Fayetteville Division responsible for distributing methamphetamine. During the course of their investigation, investigators identified both Steven Warner and Elmer Francis as leaders of this local group.  Warner was further identified as a methamphetamine source of supply for the local group.

    Those members of the drug trafficking organization indicted federally have been sentenced as follows:

    Steven James Warner aka Misfit:  age 46, McAlester, Oklahoma – Conspiracy to Distribute more than 50 grams of Methamphetamine – 400 months imprisonment and 5-year term of supervised release.

    Elmer Nathaniel Francis aka Nathan:  age 65, Cave Springs, Arkansas – Conspiracy to Distribute more than 50 grams of Methamphetamine – 327 months imprisonment and 5-year term of supervised release.

    Vincent James Burrough: age 58, Spiro, Oklahoma – Conspiracy to Distribute more than 50 grams of Methamphetamine – 270 months imprisonment and 5-year term of supervised release.

    Charley Edward Rouell Jr.: age 52, Stigler, Oklahoma – Conspiracy to Distribute more than 50 grams of Methamphetamine – 250 months imprisonment and 5-year term of supervised release.

    Danial Wayne Plack: age 42, Fayetteville, Arkansas – Distribution of more than 50 grams of Methamphetamine – 188 months imprisonment and 5-year term of supervised release.

    Michael Winberry: age 52, Cave Springs, Arkansas – Conspiracy to Distribute more than 50 grams of Methamphetamine – 180 months imprisonment and 4-year term of supervised release.

    Cassandra Claire Webb: age 34, Fort Smith, Arkansas – Conspiracy to Distribute Methamphetamine – 60 months imprisonment and 3-year term of supervised release.

    Eunice Felicitas Cisneros: age 44, Moreno Valley, California – Conspiracy to Distribute more than 50 grams of Methamphetamine – 135 months imprisonment and 4-year term of supervised release.

    Landon Dale Thompson Jr.: age 42, Van Buren, Arkansas – Conspiracy to Distribute Methamphetamine – 87 months imprisonment and 3-year term of supervised release.

    Christie Michelle Yandell Warner: age 49, Yukon, Oklahoma – Aiding and abetting in the distribution of more than 50 grams of Methamphetamine – 180 months imprisonment and 5-year term of supervised release.

    Paul Eugene Wisdom: age 34, Fayetteville, Arkansas – Possession with Intent to Distribute Methamphetamine – 140 months imprisonment and 3-year term of supervised release.

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

    The Drug Enforcement Administration Fayetteville Resident Office investigated the case, and were assisted by the following federal and local agencies: United States Marshals Service, ATF, FBI, Benton County Sheriff’s Office, Rogers Police Department, Benton County Drug Unit, Bentonville Police Department, 4th Judicial District Drug Task Force, Washington County Sheriff’s Office, Arkansas Department of Community Corrections – Probation and Parole, Arkansas Counter Drug Unit, and the Arkansas State Police.

    Assistant U.S. Attorney Kim Harris prosecuted the case for the United States.

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

    MIL Security OSI –

  • MIL-OSI Security: SoCal Man Pleads Guilty to Hate Crime for Attack on Asian American Woman While Shouting Racial Slurs

    Source: US FBI

    LOS ANGELES – A Southern California man pleaded guilty to a federal hate crime for punching an Asian American woman in the head in Culver City while shouting racial slurs at her.

    Jesse Lindsey, 38, a transient man whose last known address was in Fontana, pleaded guilty to one hate crime count. He has been in federal custody since July 18 and was in state prison on an unrelated conviction prior to then.

    “Hate-fueled acts of violence have no place in our society,” said United States Attorney Martin Estrada. “Enforcing civil rights goes to the core of my office’s mission and we will continue to prosecute hate crimes, especially those committed by individuals whose bigotry results in physical harm to victims.” 

    “The facts of this case shock the conscience,” Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Lindsey’s actions were heinous, despicable, and inhumane. Violating the civil rights of others by engaging in racial violence is antithetical to our values as Americans. The FBI is committed to investigating federal hate crimes and protecting civil rights. Members of the public are urged to report a potential hate crime to the FBI at 1-800-CALL-FBI or online at tips.fbi.gov.” 

    According to his plea agreement, at approximately 1 a.m. on June 14, 2021, the victim was walking to work in Culver City when Lindsey, a white man, approached her and yelled at the victim, whom he perceived to be Asian, “You can’t say hi to a [expletive] white boy?” Lindsey then punched the victim in the head, causing her to fall into the street and hit her head. While the victim lay face down in the street, Lindsey shouted, “You hear what I said, [N-word]? I said good morning, bitch!”

    Emergency personnel later transported the victim to a hospital to treat injuries to her head and ear. The victim received approximately 11 stitches.

    During an interview about the attack, Lindsey made multiple derogatory and profane remarks about people of Asian descent. The plea agreement states that, among other things, Lindsey said the victim might “whoop” him because “those little dudes,” a reference to Asian men, are “[expletive] crazy” and “have fight in them.”

    Referencing the Asian actor known for practicing martial arts, Lindsey said that he thought the victim might pull “some Jet Li [expletive],” according to the plea agreement. 

    “Our community’s rich cultural diversity is our strength, and we are dedicated to ensuring it remains a safe and welcoming environment for all,” said Culver City Police Chief Jason Sims. “I am proud of the work done by the Culver City Police Department in collaboration with the FBI and United States Attorney’s Office to seek justice for the victim in this case. We are resolute in working to hold the suspect in this case accountable for this egregious crime. Such acts of violence will not be tolerated in our neighborhoods.”

    United States District Judge Michael W. Fitzgerald scheduled a March 3, 2025 sentencing hearing, at which time Lindsey will face a statutory maximum sentence of 10 years in federal prison.

    The FBI is investigating this case and received substantial assistance from the Culver City Police Department.

    Assistant United States Attorney Lindsey Greer Dotson is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Agrees to $215 Million Settlement Agreement Related to Assets of Internet Prostitution Ad Service Backpage.com

    Source: US FBI

    LOS ANGELES – The Justice Department today filed a settlement agreement reached between the parties in the civil forfeiture case involving Backpage.com, a now-shuttered internet forum for prostitution ads that included ads depicting sex work of children, in which $215 million in assets traceable to Backpage’s profits, and previously seized by the government from Backpage and its agents, will be forfeited to the United States.

    The forfeited assets – comprised of cash, cryptocurrency, and one parcel of real estate in San Francisco – will be available for a remission process to compensate victims of the crime. Details about the remission process will be announced at a later date. The forfeiture represents more than 80% of the value of the property seized or restrained in the case.

    “This settlement agreement marks a significant milestone in a criminal case involving the sexual exploitation and trafficking of countless women and children,” said United States Attorney Martin Estrada. “The nine-figure dollar amount forfeited in this case will allow for victims to recover and show that individuals who profit from such exploitation and trafficking risk both prison time and financial ruin.”

    For most of its 14-year existence, Backpage dominated the online market for illegal sex work advertising in the United States. While Backpage offered many categories of advertisements, in most years, more than 90% of Backpage’s revenue and activity occurred in the adult-related ad sections. Backpage monetized these advertisements by allowing a variety of pay-for options such as posting ads across multiple geographic areas and increased ad promotion. The company’s CEO eventually admitted that most of the website’s adult ads were for prostitution.

    In April 2018, several Backpage-related corporate entities, including Backpage LLC, pleaded guilty in Arizona federal court to conspiracy to engage in money laundering. Several Backpage owners and executives also have been convicted in this matter, including Michael Lacey, 76, of Paradise Valley, Arizona, was sentenced to five years in prison; Scott Spear, 74, of Phoenix, was sentenced to 10 years in prison; and John “Jed” Brunst, 72, of Phoenix, was sentenced to 10 years in prison. Lacey is free on bail pending appeal.

    According to court documents and evidence presented at trial, from September 2010 until its seizure by the United States in April 2018, Backpage was the internet’s leading forum for prostitution ads. The conspirators knowingly promoted prostitution via various marketing strategies. For example, they engaged in a reciprocal link program with an independent web forum that permitted “johns” to post reviews of prostitution acts with specific women. Additionally, the conspirators used an automated filter and human moderators to remove terms known to indicate sex-for-money, while still allowing the ads to be posted. Through this attempt to sanitize the ads, the conspirators sought “plausible deniability” for what the conspirators knew to be ads promoting prostitution. Over the life of the conspiracy, the conspirators earned more than $500 million. To preserve the money earned, Lacey, Spear, and Brunst laundered the money through numerous shell companies they created in multiple foreign countries.

    The United States Postal Inspection Service, the FBI, and IRS Criminal Investigation investigated this matter. The United States Attorney’s Office for the District of Arizona, which prosecuted the underlying criminal cases, provided substantial assistance.

    Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture and Recovery Section is prosecuting this case.

    The case name and number in this matter are United States of America v. $1,546,076.35 In Bank Funds Seized from Republic Bank of Arizona Account 1889, et al., CV 18-08420 (C.D. Calif.).

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  • MIL-OSI Security: Orange County Man Sentenced to More Than 15 Years in Prison for House Flipping Investment Scam That Raised More Than $17 Million

    Source: US FBI

    LOS ANGELES – A Costa Mesa man was sentenced today to 181 months in federal prison for running fraudulent investment schemes that raised more than $17 million by promising investors – several of them elderly – returns of up to 10% that would be generated through real estate deals that turned out to be bogus, and for disobeying a court order to surrender to federal authorities for violating the terms of his pretrial release.

    Brett Barber, 45, a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital, was sentenced by United States District Judge Otis D. Wright II, who scheduled a January 9, 2025, restitution hearing in this case.

    At today’s hearing, Judge Wright said, “There may not have been bloodshed, but this was real violence. [The defendant] knew these people were in their golden years, and he just took it all.”

    Barber pleaded guilty in October 2023 to two counts of wire fraud and one count of criminal contempt.

    “This defendant enriched himself through a fraudulent investment scheme that solicited millions of dollars from retirement funds belonging to his victims, including older adults,” said United States Attorney Martin Estrada. “My office is committed to protecting vulnerable communities from fraud and other harms. Today’s sentence sends a message to victims that we are here to fight for them and hold con artists and other fraudsters accountable for their actions.”

    From May 2019 to October 2021, Barber participated in two schemes to defraud victim investors out of their money and property.

    In the first scheme, BNZ Capital, its principals, and several marketers raised money by falsely representing that the firm bought and sold real estate projects and “flipped” real estate. Barber, co-conspirator Louis Zimmerle, 65, of Sacramento, and the marketers falsely promised investors a “guaranteed” return of between 8% and 10%, as well as potential bonuses based on successful deals. According to court documents, Barber told investors that their funds were “safe” and “FDIC insured.”

    In fact, while BNZ Capital did purchase some real estate, it did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit. Rather, BNZ primarily used investor funds to pay Barber, Zimmerle, and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. Some of the investors’ money was used to repay earlier investors.

    During this scheme, Barber, Zimmerle, and the marketers solicited or caused to be transferred to BNZ Capital approximately $13.8 million from victim investors. Investigators estimate that actual losses resulting from this scheme are at least $7 million.

    Barber received and kept approximately $2,933,970 of investor money for his personal gain. At least five BNZ Capital investors were elderly, vulnerable victims who suffered substantial hardship because of the fraud committed against them.

    After Barber learned that federal officials were investigating BNZ Capital, he began a second fraudulent scheme, this time involving a company he formed in January 2021 called National American Capital (NAC). The NAC scheme operated, in substance, the same way as the BNZ Capital fraud. That is, Barber and marketers working at his direction lied to investors by saying their money would be used to fund real estate development projects. In fact, there were no such projects, and the only way NAC could repay earlier investors was by soliciting money from new investors.

    Specifically, in October 2021, Barber met with a person he believed was a prospective investor, but who in fact was an undercover law enforcement official. During this meeting, Barber told several lies: that NAC had been in business for 20 years, that it owned 10 parcels of land in Laguna Beach, and that it had purchased property in Newport Beach and turned it into a four-plex. None of these statements was true.

    This scheme caused a loss of at least $3.5 million. Barber received and kept at least $388,669 of investor money for his personal gain.

    During the BNZ Capital and NAC schemes, Barber failed to disclose to investors that he previously was barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).

    Finally, after a federal grand jury indicted Barber in October 2021, he was released on bond. In January 2023, a court found that Barber violated the terms of his pretrial release and ordered him to surrender to the United States Marshals Service by January 13. Barber willfully disobeyed the court’s order and failed to surrender. In March 2023, Barber was arrested in Santa Cruz County, California. He eventually was transferred to federal custody in Los Angeles, where he remains.

    Zimmerle pleaded guilty in January 2022 to one count of wire fraud for participating in the scheme. Judge Wright on June 3 sentenced Zimmerle to five years’ probation, fined him $10,000, and ordered him to pay $684,500 in restitution.

    In October 2021, the United States Securities and Exchange Commission (SEC) filed civil charges against Barber, Zimmerle, and BNZ Capital for fraudulently raising more than $13 million from over 100 retail investors. That litigation remains pending.

    The FBI investigated this matter. The SEC provided substantial assistance.

    Assistant United States Attorneys Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section and Anne C. Gannon of the Orange County Office prosecuted this case.

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  • MIL-OSI Security: Northern California Man Arrested for Allegedly Flying Drone Over and Photographing Vandenberg Space Force Base

    Source: US FBI

    LOS ANGELES – A Northern California man has been arrested on a federal criminal complaint for allegedly flying a drone over and taking photographs of Vandenberg Space Force Base, the Justice Department announced today. 

    Yinpiao Zhou, 39, of Brentwood, is charged with failure to register an aircraft not providing transportation and violation of national defense airspace.

    Zhou was arrested Monday at San Francisco International Airport prior to boarding a China-bound flight and made his initial appearance Tuesday in United States District Court in San Francisco.

    Zhou remains in federal custody pending prosecutors’ appeal of a federal magistrate judge’s decision to release him. No plea was taken and his arraignment is expected to be scheduled in U.S. District Court in Los Angeles in the coming weeks.

    “This defendant allegedly flew a drone over a military base and took photos of the base’s layout, which is against the law,” said United States Attorney Martin Estrada. “The security of our nation is of paramount importance and my office will continue to promote the safety of our nation’s military personnel and facilities.”

    According to an affidavit filed on December 8 with the complaint, on November 30, 2024, drone detection systems at Vandenberg Space Force Base in Santa Barbara County detected a drone flying over the base. The drone systems detected that the drone flew for nearly one hour, traveled to an altitude of almost one mile above ground level, and originated from Ocean Park, a public area next to the base. Base security personnel went to the park, spoke to Zhou and another person accompanying him, and learned that Zhou had a drone concealed in his jacket – the same one that flew over the base. 

    Agents later searched Zhou’s drone pursuant to a federal search warrant and saw several photographs of Vandenberg Space Force Base taken from an aerial viewpoint. A search of Zhou’s cellphone showed Zhou conducted a Google search approximately one month earlier for the phrase “Vandenberg Space Force Base Drone Rules” and messaged with another person about hacking his drone to allow it to fly higher than it could otherwise.

    Zhou is a Chinese citizen and lawful permanent resident of the United States, most recently returning to the United States from China in February 2024. The person accompanying Zhou at Ocean Park most recently entered the United States from China on November 26.

    A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    If convicted, the defendant would face a statutory maximum sentence of four years in federal prison.

    The FBI is investigating this matter.

    Assistant United States Attorney Kedar S. Bhatia of the Terrorism and Export Crimes Section and Trial Attorney Benjamin Koenigsfeld of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. 

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  • MIL-OSI Security: Pasadena Doctor Agrees to Plead Guilty to Conspiring with Attorney to Bilk More Than $3 Million From California’s Workers’ Compensation Fund

    Source: US FBI

    SANTA ANA, California – A physician who worked for an Inland Empire medical company has agreed to plead guilty to conspiring to defraud California’s workers’ compensation fund of millions of dollars by continuing to work on workers’ compensation matters after being suspended due to a prior health care fraud conviction, the Justice Department announced today. 

    Dr. Kevin Tien Do, 59, of Pasadena, agreed to plead guilty to one count of conspiracy to commit mail fraud and one count of subscribing to a false tax return. He is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.

    In his plea agreement, Do admitted that, from October 2018 to February 2023, he conspired to defraud the state of California of millions of dollars of health care funds by defrauding California’s Subsequent Injuries Benefits Trust Fund (SIBTF). The California SIBTF is a special fund administered by California’s workers’ compensation program to provide additional compensation to injured workers who already had a disability or impairment at the time of a subsequent injury.

    Beginning in 2016, Do began to work for Liberty Medical Group Inc., a Rancho Cucamonga-based medical company, for which he would draft SIBTF-related medical reports that Liberty would then bill to the California SIBTF program. In October 2018, California suspended Do from participating in California’s workers’ compensation program, which included the SIBTF, because he had previously been convicted of federal health care fraud in 2003. Despite his suspension, Do continued to work for Liberty on SIBTF-related workers’ compensation matters.

    Do continued to perform similar actions for Liberty that he had been doing before his October 2018 suspension, including compiling and editing reports related to the SIBTF program. To conceal that Do was unlawfully continuing to participate in the workers’ compensation SIBTF program after his suspension, Liberty’s owner came up with a plan. That plan was that Do would continue to author the SIBTF-related reports, which Liberty would then continue to mail to the California SIBTF for payment. Rather than listing Do’s name on the billing forms and the attached medical reports mailed to the California SIBTF, like they had had done before Do’s suspension, Liberty instead fraudulently listed other doctors’ names on the billing forms and attached medical reports, even though Do had drafted and compiled the reports. Do admitted that Liberty was paid more than $3 million by California SIBTF for such reports that Liberty mailed to the California SIBTF for payment after Do’s October 2018 suspension.

    Do’s plea agreement also details that Liberty’s owner edited Do’s medical reports, even though that co-conspirator was not a doctor or other licensed medical professional. 

    Under California law, shareholders/owners of a medical corporation must be licensed in the practice of medicine or other related medical fields, such as a psychologist, registered nurse, or licensed physician assistant.

    In his plea agreement, Do admitted that real owner of Liberty and Do’s co-conspirator was another person who was not a doctor or other medical professional, but rather, was a California attorney then employed as a prosecutor for the Orange County District Attorney’s Office, and who later became an Orange County Superior Court judge during the conspiracy. That true owner who was Do’s co-conspirator not only was a signatory on Liberty’s bank account, but also issued and signed Liberty’s checks to Do and others. The plea agreement specifies that much of the more than $3 million that the SIBTF paid Liberty during the years following Do’s suspension then flowed to another company controlled by Liberty’s owner and his wife, which totaled to more than $1.5 million.

    Do also admitted that he failed to accurately report to the IRS all the money he had been paid by Liberty. Do admitted that on his 2021 tax return, he failed to report approximately $66,227 of the income that Liberty paid him.

    Once Do enters his guilty plea, he will face a statutory maximum sentence of 20 years in federal prison for the mail fraud count and up to three years in federal prison for the tax fraud count. 

    The FBI, IRS Criminal Investigation, and the California Department of Insurance are investigating this matter.

    Assistant United States Attorneys Charles E. Pell of the Orange County Office and Ryan J. Waters of the Asset Forfeiture and Recovery Section are prosecuting the case.

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  • MIL-OSI Security: Santa Paula Doctor Sentenced to Two Years in Federal Prison for Role in Hospice Fraud That Bilked Medicare Out of $3.2 Million

    Source: US FBI

    LOS ANGELES – A Ventura County physician who worked for two Pasadena hospices was sentenced today to 24 months in federal prison for defrauding Medicare out of more than $3 million through claims for medically unnecessary hospice services.

    Dr. Victor Contreras, 69, of Santa Paula, was sentenced today by United States District Judge André Birotte Jr., who also ordered him to pay $3,289,889 in restitution. 

    Contreras pleaded guilty on July 24 to one count of health care fraud.

    From July 2016 to February 2019, Contreras and co-defendant Juanita Antenor, 62, formerly of Pasadena, schemed to defraud Medicare by submitting nearly $4 million in false and fraudulent claims for hospice services submitted by two hospice companies: Arcadia Hospice Provider Inc., and Saint Mariam Hospice Inc. Antenor controlled both companies.

    Medicare only covers hospice services for patients who are terminally ill, meaning that they have a life expectancy of six months or less if their illness ran its normal course.

    Contreras falsely stated on claims forms that patients had terminal illnesses to make them eligible for hospice services covered by Medicare, typically adopting diagnoses provided to him by hospice employees whether or not they were true. Contreras did so even though he was not the patients’ primary care physician and had not spoken to those primary care physicians about the patients’ conditions. Medicare paid on the claims supported by Contreras’ false evaluations and certifications and recertifications of patients.

    In total, approximately $3,917,946 in fraudulently claims were submitted to Medicare, of which a total of approximately $3,289,889 was paid.

    According to Medical Board of California records, Contreras is a licensed physician in California, but has been on probation with the Board since 2015 and is subject to limitations on his practice. 

    Antenor remains at large. Co-defendant Callie Black, 66, of Lancaster, who allegedly recruited patients for the hospice companies in exchange for illegal kickbacks, has pleaded not guilty and is scheduled to go to trial on March 4, 2025.

    An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    The United States Department of Health and Human Services Office of Inspector General, the FBI, and the California Department of Justice investigated this matter.

    Assistant United States Attorneys Kristen A. Williams of the Major Frauds Section and Aylin Kuzucan of the General Crimes Section are prosecuting this case.

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  • MIL-OSI Security: Rancho Cucamonga Man Sentenced to More Than Three Years in Prison for Operating ‘Birth Tourism’ Scheme for Affluent Chinese Clients

    Source: US FBI

    LOS ANGELES – A San Bernardino County man was sentenced today to 41 months in federal prison for operating a “birth tourism” scheme that charged Chinese clients tens of thousands of dollars to help them give birth in the United States to obtain birthright U.S. citizenship for their children.

    Michael Wei Yueh Liu (刘维岳), 59, of Rancho Cucamonga, was sentenced by United States District Judge R. Gary Klausner.

    At the conclusion of a four-day trial, a jury on September 13 found Liu and Jing Dong, (董晶), 47, of Rancho Cucamonga, guilty of one count of conspiracy and 10 counts of international money laundering. Dong is expected to be sentenced in the coming weeks.

    From at least January 2012 to March 2015, Liu and Dong ran a maternity house in Rancho Cucamonga. Liu and Dong rented apartments in Southern California to provide short-term housing and provided other services to pregnant women from China who traveled to the United States to give birth so their children would acquire U.S. citizenship. Typically, within one or two months after giving birth, the women returned to China.

    Among the services Liu and Dong provided were assistance on how to obtain visas to enter the United States, customs entry guidance, housing, and transportation in the United States, as well as assistance applying for U.S. legal documents for the children of their customers.

    Liu and Dong advised their customers on how to hide their pregnancies from the immigration authorities. Liu and Dong also knew – or deliberately avoided learning – that their customers lied on their visa applications submitted to immigration authorities to enter the U.S.

    Generally, their customers’ visa applications falsely stated that the purpose of the trip to the United States was for tourism, when it was to give birth, and the length of the stay was days or weeks, when it was in fact months. The visas also misstated the location where the customers intended to stay, which was defendants’ maternity hotel.

    Liu and Dong or their agents also advised their customers to fly to ports of entry with perceived less customs scrutiny, such as Hawaii, before flying to Los Angeles, to wear loose fitting clothing, to favor certain lines at customs that they perceived to be less strict, and on how to answer the customs officials’ questions.

    Liu and Dong received money from overseas and used that money to promote their scheme.

    Homeland Security Investigations, IRS Criminal Investigation, and the FBI investigated this matter. The Irvine Police Department and the San Bernardino County Sheriff’s Department provided substantial assistance.

    Assistant United States Attorneys Gregory W. Staples and Kevin Y. Fu of the Orange County Office prosecuted this case.

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  • MIL-OSI Security: Southern California Political Operative Arrested on Federal Complaint Alleging He Acted as Illegal Agent of People’s Republic of China

    Source: US FBI

    LOS ANGELES – FBI agents this morning arrested a Chino Hills man on federal charges that allege he acted as an illegal agent of the People’s Republic of China (PRC), including while serving as the campaign manager for a political candidate who was elected in 2022 to the city council of a Southern California city.

    Yaoning “Mike” Sun, 64, was arrested without incident and is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.

    A criminal complaint filed Tuesday and unsealed this morning charges Sun with acting as an illegal agent of a foreign power. Sun is also charged with conspiring with another man, Chen Jun, who was sentenced to federal prison last month for acting as an illegal agent of the PRC government and plotting to target U.S.-based practitioners of Falun Gong, a spiritual practice banned in China.

    According to the complaint, Sun served as the campaign manager and close personal confidante for a Southern California politician (described in the affidavit as “Individual 1”) who was running for local elected office in 2022. During the campaign, Sun allegedly communicated with Chen regarding his efforts to get Individual 1 elected. Chen discussed with Chinese government officials how the PRC could “influence” local politicians in the United States, particularly on the issue of Taiwan, according to the complaint. In November 2022, shortly after Individual 1 was elected to office, Chen instructed Sun to prepare a report on the election that was sent to Chinese government officials, who responded positively and expressed thanks, according to the complaint affidavit. Chen also sent a message to Individual 1 stating that Individual 1 was “doing a good job, I hope you can continue the good work, make Chinese people proud,” the affidavit states.

    “The conduct alleged in this complaint is deeply concerning – the defendant is charged with acting on behalf of the People’s Republic of China to influence our political system,” said United States Attorney Martin Estrada. “We cannot permit hostile foreign powers to meddle in the governance of our country. My office and our law enforcement partners will continue to prioritize the security of our nation and the preservation of the liberties that make this country the envy of the world.”

    “This case highlights the breadth of the PRC’s relentless intelligence and malign influence activities targeting the United States,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to use all the tools at its disposal to identify PRC intelligence operations, disrupt PRC information laundering networks, and bring to justice those who seek to engage in criminal conspiracies to undermine the integrity of our elected officials.”

    About a month after Individual 1’s election, Chen arranged a lunch at a Rowland Heights restaurant with Sun and others, a gathering that Chen described to a PRC official as a “core member lunch,” the affidavit alleges. Chen subsequently described the lunch as “successful” as participants agreed to establish a “US-China Friendship Promotional Association.” While Individual 1 did not attend the meeting, Chen described Individual 1 as being part of the association and Sun serving as vice president. “This is the basic team dedicated for us,” Chen wrote to the Chinese government official.

    Chen instructed Sun in early 2023 to write up another report for Chinese officials describing “you and me cultivating and assisting [Individual 1’s] success,” according to the affidavit. In a February 2023 draft of Sun’s report, Sun described his personal background, his history of working against “Chinese secessionist forces,” and boasted that, “most proudly of all, during the 2022 U.S. midterm elections, I orchestrated and organized my team to win the election for city council member candidate [Individual 1].” In subsequent communications outlined in the affidavit, Chen instructed Sun to include a section on Individual 1, who was to be described as a “New Political Star” with connections to other prominent politicians. The affidavit also states that Chen and Sun discussed their “past struggle fighting Taiwanese independence forces . . . over the years and fighting ‘FLG’ [Falun Gong] influences” in a California city.

    In February 2023, Sun and Chen drafted a second report to PRC officials that requested an $80,000 budget to fund additional pro-PRC activities and to combat “anti-China forces” in the United States.   

    After Chen and Sun discussed a planned trip to the PRC to meet with “leadership,” and after Chen directed Sun to schedule a meeting with the Chinese consul general in Los Angeles, Sun and Individual 1 traveled to China in late August 2023.

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

    The charge of acting as an illegal agent of a foreign government carries a statutory maximum sentence of 10 years in federal prison. The charge of conspiracy to commit an offense against the United States carries a maximum statutory sentence of five years.

    This FBI is conducting the ongoing investigation in this matter.

    Assistant United States Attorney David Ryan, Chief of the National Security Division, and Assistant United States Attorney Amanda Elbogen of the Terrorism and Export Crimes Section are prosecuting this case, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section in the Department of Justice’s National Security Division.

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  • MIL-OSI Security: Bitwise Founders Sentenced to 11 Years and Nine Years in Prison for $115 Million Fraud

    Source: US FBI

    FRESNO, Calif. —Jake Soberal, 38, and Irma Olguin, Jr., 44, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries (“Bitwise”), were sentenced to 11 years and 9 years in prison, respectively, for defrauding people out of approximately $115,000,000, United States Attorney Phillip A. Talbert announced today.

    “Defendants likened themselves to gods and joked about deceiving their well-intentioned investors while committing a massive fraud,” said U.S. Attorney Talbert.  “They lied repeatedly to pull in over $100 million to a dying business venture that they knew never had any meaningful revenue.  To make themselves rich and keep up the façade, they used fabricated bank statements, false financial information, forged documents, and fake loan collateral.  These sentences serve as a reminder of the hazards of such financial crimes, and my office will continue to work with the FBI, IRS Criminal Investigation, and our law enforcement partners to vigorously investigate and prosecute those who commit them.”

    “The willful and egregious fraud carried out by Irma Olguin Jr. and Jake Soberal will have long lasting impacts on not only those who invested in the well-orchestrated scam of Bitwise, but also the nearly 1,000 employees and contractors who abruptly lost their jobs when the Bitwise swindlers ran out of money,” said IRS Criminal Investigation (IRS-CI) Oakland Field Office Assistant Special Agent in Charge Kulbir Mand. “White-collar crimes are damaging to victims, families, and communities alike. IRS-CI and its law enforcement partners are experts at investigating financial crimes and building cases that lead to justice. Today’s sentencing should serve notice that the consequence for committing white-collar crime is severe.”

    “This case demonstrates how disastrous the impact can be when a company’s executives fail to conduct themselves ethically and lawfully.  Bitwise Industries co-CEOs Jake Soberal and Irma Olguin, Jr. repeatedly lied to investors and lenders to keep their massive Ponzi scheme afloat, despite knowing that the business model would never generate positive revenue. The $115 million loss is significant, but the damage to the professional reputations of innocent parties and the loss of more than 900 jobs and associated benefits employees depended on will have a lasting, negative impact on the economy and individual lives,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI remains steadfast, safeguarding our economy by working with all partner agencies to ensure that those who exploit positions of trust to commit large-scale corporate frauds are held accountable for their criminal activity.”

    According to court records, Bitwise was, and still is, the biggest startup company to come from California’s Central Valley.  The company’s objective was to use technology to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be profitable.

    Olguin, Jr. and Soberal received national media attention by appearing in publications like Forbes Magazine and giving Ted Talks where they portrayed Bitwise as being a success.  They also made a substantial annual salary.  By early 2022, however, the company was not generating any revenue and was running low on funds.  Thereafter, Olguin, Jr. and Soberal fabricated financial information for its board and for investor materials and doctored audit reports to make it appear as though Bitwise was generating revenues and turning a profit.  They also altered bank statements and forged bank representatives’ signatures on bank correspondence to inflate the company’s cash balances.  They did so to convince people that Bitwise was excelling when the company was actually failing.

    The following are illustrative examples of Olguin, Jr. and Soberal’s fraud:

    • In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin, Jr. and Soberal represented that Bitwise’s cash balance was over $44,000,000 as of the end of 2021.  They also represented that the company’s revenue was more than $58,000,000.  In reality, the company’s cash balance was less than $12,000,000 at that time and its revenue was non-existent. 
    • In June and July 2022, Olguin, Jr. and Soberal falsely represented to a California-based investment firm that Bitwise had secured a $150,000,000 investment from another, London-based investment firm.  This was done to convince the California-based investment firm to purchase several buildings that Bitwise owned.  Several months later, Soberal falsely represented to another lender that Bitwise still owned those buildings to to provide collateral for another loan from another lender of millions of dollars. 
    • In a March 2023 presentation circulated to investors, Olguin, Jr. and Soberal represented that Bitwise’s cash balance was over $77,000,000 as of the end of 2022.  They also represented that the company’s revenue was more than $143,000,000.  In reality, the company’s cash balance was less than $5,000,000 at that time and its revenue nominal. 
    • Also in March 2023, Olguin, Jr. and Soberal provided an investor with an altered version of an audit of Bitwise that was previously conducted by an international audit firm.  They altered the audit to make it appear as though Bitwise’s revenue was 300 percent higher than the true number. 
    • Also in March 2023, Soberal represented to a long-time Bitwise employee that the company had sufficient resources on-hand to induce the employee to make a significant loan to the company.

    This pattern continued until the end of May 2023 when Bitwise ran out of money and the company collapsed.

    Olguin, Jr. was a computer engineer who had previously run another technology company, and Soberal was an attorney who had previously practiced at a law firm doing intellectual property work.  Moreover, the defendants hired unqualified family members and friends, which allowed them to compartmentalize information and work in secret to spin the false statements needed to conceal and continue with their fraud.  For these reasons, Olguin, Jr. and Soberal received special sentencing enhancements. 

    This case is the product of an investigation by the FBI and IRS Criminal Investigation.  Assistant United States Attorneys Joseph Barton and Henry Z. Carbajal III prosecuted the case.

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