Category: Finance

  • MIL-OSI Security: Former State Employee Sentenced to 20 Months for Pandemic Unemployment Insurance Fraud Scheme

    Source: US FBI

    ALBANY, NEW YORK – Carl J. DiVeglia III, age 36, of Albany, was sentenced today to 20 months in prison for engaging in a fraudulent scheme to obtain more than $1.6 million in unemployment insurance benefits by abusing his position with the New York State Department of Labor (NYSDOL).

    The announcement was made by United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).

    As part of his previously entered guilty plea to conspiracy to commit mail fraud, DiVeglia admitted that he and another former NYSDOL employee, Wendell Giles, abused their state computer access to create and approve false unemployment insurance applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.  DiVeglia admitted responsibility for over $1.6 million in losses to NYSDOL and to personally receiving approximately $225,000 in fraud proceeds.

    United States District Judge Glenn T. Suddaby also imposed a 2-year term of supervised release, to begin after DiVeglia is released from prison.  Judge Suddaby also ordered DiVeglia to pay $1,662,819 in restitution to the State of New York and to forfeit a $225,000 money judgment to the United States.

    Giles was previously sentenced to 36 months’ imprisonment for his role in the scheme.  Four related defendants—Todd Ward, a/k/a “Fats,” age 45, of Troy, New York; Christopher Ward, a/k/a “Reek,” age 46, of Troy; Rocco Resciniti a/k/a “Rock,” age 50, of Albany; and Jamaine Myers, age 46, of Troy—have also pled guilty to fraud charges for their involvement in DiVeglia’s scheme.  Resciniti was sentenced to three years of probation on July 31, 2024, and the remaining defendants are scheduled to be sentenced in the fall.      

    The FBI and USDOL-OIG investigated these cases, with assistance from the NYSDOL Office of Special Investigations. Assistant U.S. Attorneys Joshua R. Rosenthal and Joseph S. Hartunian are prosecuting the cases.

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

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

    MIL Security OSI

  • MIL-OSI Security: Rutland Man Sentenced to 27 Months for Distribution of Cocaine Base

    Source: US FBI

    Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on August 20, 2024, Bradley Saldi, 44, of Rutland, Vermont, was sentenced by Chief United States District Judge Christina Reiss to a term of 27 months’ imprisonment to be followed by a 3-year term of supervised release. Saldi previously pleaded guilty to distributing cocaine base.
      
    According to court records, between May 15, 2023, and June 14, 2023, Saldi made four sales of controlled substances, cocaine base or fentanyl, to a confidential informant at the Highlander Motel in Rutland, Vermont, where Saldi was employed as a handyman.  Prior to these controlled purchases from Saldi, court records indicate that Saldi was involved in the drug trafficking activities of Jose Maldonado and Edgar Correa, who were previously convicted and sentenced in the District of Vermont for their illegal activities.  Saldi also participated with Maldonado and Correa in the assault of an individual related to a presumed drug debt.
      
    United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Vermont State Police Drug Task Force, Federal Bureau of Investigation, Homeland Security Investigations, and Rutland City Police Department.

    The case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt and Jason Turner. Saldi was represented by Mark Oettinger, Esq.

    MIL Security OSI

  • MIL-OSI Security: Texas Man Sentenced to 72 Months for Conspiring with Michael Mann to Defraud Lenders

    Source: US FBI

    ALBANY, NEW YORK – Derek R. Schwartz, age 55, of Coppell, Texas, was sentenced today to 72 months in prison for conspiring with former ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries. 

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

    Schwartz pled guilty in September 2023 to one count of conspiring to commit wire fraud and four counts of wire fraud.  He admitted to helping Mann fraudulently obtain millions of dollars in loans from financing companies.

    Mann obtained millions of dollars in loans from two financing companies, located in New York and Colorado, by falsifying his companies’ receivables.  Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”), owed millions of dollars to his Clifton Park-based companies.  Mann routinely created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for loans.

    Schwartz was a high-level executive at Optum, and then began working for ValueWise in October 2013.  Until about August 2016, he operated TrueHR, LLC, a ValueWise subsidiary based in Dallas, Texas.

    Schwartz admitted that in October 2013, he and Mann asked Luke Steiner, a UHG/Optum employee whom Schwartz used to supervise, to represent to the financing companies that the fake invoices created by Mann were valid and payable by Optum.  With Schwartz’s encouragement, Steiner regularly made these false verifications for six years, ending in August 2019.

    Schwartz also admitted he took these other actions in furtherance of the fraudulent scheme:

    • In 2014 and 2015, he asked two other UHG/Optum employees to verify false invoices that Mann submitted to one of the financing companies, identified in court papers as “Financing Company-1.”  He instructed these employees to respond to Financing Company-1’s inquiries in the same manner as Steiner.
    • From 2014 through 2018, Schwartz lied directly to one of Mann’s lenders, “Financing Company-2.”  Mann falsely represented to Financing Company-2 that one of his companies, Weitz & Associates, needed loans in order to pay its vendors.  As part of its due diligence process, Financing Company-2 verified, with Weitz’ purported vendors, that they were receiving payments from Weitz.  One such purported vendor was TrueHR, a ValueWise company operated by Schwartz.  In fact, TrueHR was not a Weitz vendor, and Schwartz regularly lied to Financing Company-2 about TrueHR receiving payments from Weitz – and continued to do so even after TrueHR ceased to exist as a company.

    Senior United States District Judge Lawrence E. Kahn also ordered Schwartz to serve 3 years of post-imprisonment supervised release and to pay a total of $12,968,505.20 in restitution to Financing Company-1 and Financing Company-2; Judge Kahn ordered Schwartz to pay $2,000 in restitution per month, including while incarcerated. In addition, Schwartz has already made a $1 million restitution payment to the Court for distribution to his victims.

    Mann, formerly of Saratoga County, New York, pled guilty to various crimes in connection with his fraudulent scheme, and was sentenced in August 2021 to 144 months in prison.  Steiner pled guilty in February 2020 to conspiring with Mann and was sentenced to probation.

    The FBI investigated this case, and Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck prosecuted this case.

    MIL Security OSI

  • MIL-OSI Security: Latham Man Arrested for Receipt of Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Eduardo Abreu, age 48, of Latham, New York, was arrested yesterday on a criminal complaint charging him with receipt of child pornography. 

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

    The criminal complaint alleges that on or about August 21, 2024, Abreu received approximately 225 images of child pornography over the internet.  The charges in the complaint are merely accusations.  The defendant is presumed innocent unless and until proven guilty.

    Abreu appeared yesterday in Albany before United States Magistrate Judge Christian F. Hummel, and ordered detained pending a detention hearing scheduled for Thursday, August 29. 

    Abreu faces at least 15 years and up to 40 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Abreu may also be ordered to pay restitution to the victims of his offense and forfeit any devices used in the offense. Abreu would also have to register as a sex offender upon his release from prison.

    The FBI’s Child Exploitation and Human Trafficking Task Force is investigating the case. Assistant U.S. Attorney Allen J. Vickey is prosecuting the case.

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

    MIL Security OSI

  • MIL-OSI Security: Two Men Plead Guilty to Acting as Illegal Agents of the PRC Government and Bribery

    Source: US FBI

    John Chen and Lin Feng Furthered the PRC Government’s Transnational Repression Campaign Against the Falun Gong by Bribing a Purported IRS Official

    Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN CHEN and LIN FENG pled guilty to acting as unregistered agents of the government of the People’s Republic of China (“PRC”) and bribing an Internal Revenue Service (“IRS”) agent in connection with a plot to target U.S.-based practitioners of Falun Gong — a spiritual practice banned in the PRC.  CHEN pled guilty yesterday before U.S. Magistrate Judge Andrew E. Krause and is scheduled to be sentenced on October 30, 2024, before U.S. District Judge Nelson S. Román.  FENG pled guilty today before Judge Krause and will be sentenced on October 31, 2024, before Judge Román.

    U.S. Attorney Damian Williams said: “John Chen and Lin Feng brazenly attempted to bribe an undercover agent they believed to be an IRS agent here in the United States on behalf of the PRC Government in order to harass and intimidate the Falun Gong, a target of PRC repression.  Efforts such as this to repress free speech by targeting critics of the PRC in the United States will not be tolerated.  This Office remains committed to thwarting malicious transnational repression attempts by foreign influences on American soil.”

    According to Indictment and other court documents:

    From at least approximately January 2023 to May 2023, CHEN and FENG worked inside the United States at the direction of the PRC Government, including an identified PRC Government official (“PRC Official-1”), to further the PRC Government’s campaign to repress and harass Falun Gong practitioners.  The PRC Government has designated the Falun Gong as one of the “Five Poisons,” or one of the top five threats to its rule.  In China, Falun Gong adherents face a range of repressive and punitive measures from the PRC Government, including imprisonment.

    As part of the PRC Government’s campaign against the Falun Gong, CHEN and FENG engaged in a PRC Government-directed scheme to manipulate the IRS’s Whistleblower Program in an effort to strip the tax-exempt status of an entity run and maintained by Falun Gong practitioners (“Entity-1”).  After CHEN filed a defective whistleblower complaint with the IRS (the “Chen Whistleblower Complaint”), CHEN and FENG paid $5,000 in cash bribes, and promised to pay substantially more, to a purported IRS agent who was, in fact, an undercover officer (“Agent-1”) in exchange for Agent-1’s assistance in advancing the complaint.  Neither CHEN nor FENG notified the Attorney General that they were acting as agents of the PRC Government in the United States.

    In the course of the scheme, CHEN, on a recorded call, explicitly noted that the purpose of paying these bribes, which were directed and funded by the PRC Government, was to carry out the PRC Government’s aim of “toppl[ing] . . . the Falun Gong.”  During a call intercepted pursuant to a judicially authorized wiretap, CHEN and FENG discussed receiving “direction” on the bribery scheme from PRC Official-1, deleting instructions received from PRC Official-1 in order to evade detection, and “alert[ing]” and “sound[ing] the alarm” to PRC Official-1 if CHEN and FENG’s meetings to bribe Agent-1 did not go as planned.  CHEN and FENG also discussed that PRC Official-1 was the PRC Government official “in charge” of the bribery scheme targeting the Falun Gong.

    As part of this scheme, CHEN and FENG met with Agent-1 in Newburgh, New York, on May 14, 2023.  During the meeting, CHEN gave Agent-1 a $1,000 cash bribe as an initial, partial bribe payment.  CHEN further offered to pay Agent-1 a total of $50,000 for opening an audit of Entity-1, as well as 60% of any whistleblower award from the IRS if the Chen Whistleblower Complaint were successful.  On May 18, 2023, FENG paid Agent-1 a $4,000 cash bribe at John F. Kennedy International Airport as an additional partial bribe payment in furtherance of the scheme. 

    *                *                *

    CHEN, 71, of Chino, California, and FENG, 44, a PRC citizen and resident of Los Angeles, California, each pled guilty to one count of acting as an unregistered agent of a foreign government, which carries a maximum sentence of 10 years in prison, and one count of bribing a public official, which carries a maximum sentence of 15 years in prison.

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

    Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York and Los Angeles Field Offices and Counterintelligence Division and the Office of the U.S. Treasury Inspector General for Tax Administration.  Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.

    The case is being handled by the Office’s White Plains Division and National Security and International Narcotics Unit.  Assistant U.S. Attorneys Qais Ghafary, Michael D. Lockard, and Kathryn Wheelock are in charge of the case, with assistance from Trial Attorney Christina Clark of the Counterintelligence and Export Control Section.

    MIL Security OSI

  • MIL-OSI Security: Tonawanda Man Pleads Guilty to Production of Child Pornography

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael E. Swain, 36, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to production of child pornography, carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.

    Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between October 20 and November 1, 2021, Swain coerced five minor victims to engage in sexually explicit conduct for the purpose of producing visual depictions. Specifically, Swain communicated with a 15-year-old minor female who resided in Colorado using Discord, a social media platform. The communications included sexually graphic conversations, during which Swain requested that the minor female take sexually explicit videos and images and send them to him. In addition, Swain engaged in numerous sexual communications with the minor female from approximately 2019 to 2022, during which other sexually explicit images and videos were sent to Swain. On February 28, 2023, the FBI executed a search warrant at Swain’s residence and seized a desktop computer tower, a laptop computer, and an external hard drive, all of which were found to contain child pornography.

    The plea is the result of an investigation by the Tonawanda Police Department, under the direction of Chief James Stauffiger, the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Stanley Edwards III.     

    Sentencing is scheduled for December 4, 2024, at 2:00 p.m. before Judge Vilardo.

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    MIL Security OSI

  • MIL-OSI Security: Prior Felon Going to Prison on New Child Pornography Charge

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Scott Millar 55, of Buffalo, NY, who was convicted of possession of child pornography, was sentenced to serve 138 months in prison by U.S. District Judge Richard J. Arcara.

    Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated in July 2023, Millar was under the supervision of the United States Probation Department based on a 2009 conviction for possessing child pornography. A condition of his supervision was that he was not allowed to commit another criminal offense. A probationary search of Millar’s telephone revealed images and videos of child pornography. 

    The sentencing is the result of an investigation by the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the United States Probation Office, under the direction of Chief Probation Officer Timothy Englert.

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    MIL Security OSI

  • MIL-OSI Security: Grand Jury Indicts Prior Felon on Drug and Gun Charges

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a three-count indictment charging Robert L. Robinson with possession with intent to distribute cocaine,  possession with intent to distribute cocaine, possession of firearms in furtherance of drug trafficking, and being a felon in possession of firearms. The charges carry a maximum penalty of life in prison.

    Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment and a previously filed complaint, on June 7, 2024, law enforcement executed a search warrant at Robinson’s Buffalo residence. During the search, investigators recovered quantities of suspected cocaine and marijuana, $35,869.00 in cash, two firearms, ammunition, and drug paraphernalia. One of the firearms was reported as a duty weapon stolen from a member of the Miami Dade Police Department on July 18, 2019. After the execution of the search warrant, Robinson was taken into custody.

    Robinson was previously convicted of felony crimes in 2003 and 2011 and is legally prohibited from possessing firearms.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia. 

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

    MIL Security OSI

  • MIL-OSI Security: Cheektowaga Man Pleads Guilty to Child Pornography Charge

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that John Stuart, 35, of Cheektowaga, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to possession of child pornography involving a prepubescent minor, which carries a maximum penalty of 20 years in prison, and a fine of $250,000.

    Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in August 2019, the FBI received a lead indicating that in May 2019, an online user accessed child sexual abuse and exploitation material via a website on the Tor network. Subsequent investigation traced the IP address to Stuart. In October 2020, a search warrant was executed at Stuart’s residence, during which law enforcement seized multiple electronic devices, including two laptop computers, a cell phone, a hard drive, and a desktop computer tower. A forensic review recovered approximately 8,000 videos and approximately 2,000 images of child pornography on one of the laptops, and approximately 150 images and one video of child pornography on the second laptop. Approximately 90 images and 150 videos of child pornography were recovered from the cell phone and approximately 90 images and two videos on the hard drive. Some of the images included depictions of violence against children.

    Stuart also admitted during his plea that during the execution of the search warrant, law enforcement recovered live marijuana plants, more than a pound of dried marijuana ready for consumption, and that he was a chronic user of marijuana. Stuart was also found to be in possession of three firearms. Because he was a user of controlled substances, Stuart was legally prohibited from owning or possessing firearms.

    The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Cheektowaga Police Department, under the direction of Chief Brian Coons. 

    Sentencing will be scheduled at a later date.    

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    MIL Security OSI

  • MIL-OSI Security: Owner of South Gate-Based Tattoo Removal Business Pleads Guilty to Health Care Fraud Scheme That Recruited Paraplegics

    Source: US FBI

    LOS ANGELES – The owner of a tattoo removal business in South Gate pleaded guilty today to federal criminal charges for recruiting paraplegics in a health care fraud scheme that netted more than $1.7 million and for cheating on his taxes.

    Joseph Tusia, 60, of Leominster, Massachusetts, pleaded guilty to a two-count information charging him with health care fraud and tax evasion.

    According to his plea agreement, Tusia operated a laser tattoo removal business in South Gate and 10 durable medical equipment supply companies (DMEs) in California, Nevada, and Massachusetts. Tusia controlled the tattoo removal companies and the DMEs but intentionally withheld his name from bank accounts and state registrations to evade tax liability.

    On December 30, 2015, Tusia and a co-schemer submitted an application to Anthem Blue Cross (“Anthem”) for a small group health insurance plan. Anthem’s small group plan permitted benefits and health coverage for permanent employees who worked full-time. Despite the eligibility requirements, Tusia caused to be submitted to Anthem the names of nine individuals purported to be full-time employees of Tattoo Removal and a person who was a dependent of the Tusia. None of these purported employees were employed by Tattoo Removal or eligible for health insurance coverage under Tattoo Removal’s plan with Anthem. 

    According to his plea agreement, Tusia identified the Purported Tattoo Removal Employees from his friends and associates who were paraplegic and required medical supplies, knowing and expecting that the Purported Tattoo Removal Employees would purchase their medical supplies from the DMEs that were controlled by Tusia and his associates.

    From March 2016 to June 2020, Tusia and his co-schemers submitted fraudulent claims to Anthem on behalf of the DMEs for medical supplies provided to the purported employees, knowing that none of them were eligible for coverage. As a result of these fraudulent claims, Anthem paid the DMEs controlled by Tusia approximately $1,731,215.

    Tusia also admitted in his plea agreement to knowingly and willfully failing to report income he received from the DMEs in tax years 2017 through 2020, totaling more than $1,573,644. Tusia admitted that he failed to pay tax to the IRS and that he took affirmatives steps to evade paying taxes, such as by creating the DMEs and opening bank accounts for the DMEs in the names of his associates and co-schemers.

    United States District Judge George Wu scheduled a December 5 sentencing hearing, at which time Tusia will face a statutory maximum sentence of 10 years in federal prison on the health care fraud count, and up to five years in federal prison for the tax evasion count.

    The United States Department of Labor – Employee Benefits Security Administration, the FBI, and IRS Criminal Investigation are investigating this matter.

    Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.

    MIL Security OSI

  • MIL-OSI Security: Federal Grand Jury Indicts Buffalo Man for Selling Methamphetamine

    Source: US FBI

    BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Mario Pittman Jr., 30, of Buffalo, NY, with possession with intent to distribute methamphetamine, which carries a maximum penalty of life in prison.

    Assistant U.S. Attorney Jeffrey E. Intravatola, who handled the case, stated that according to the indictment and a previously filed complaint, since March 2024, the FBI Safe Streets Task Force and the Lackawanna Police Department have been investigating Pittman’s drug trafficking activities. The investigation included multiple controlled purchases of methamphetamine from Pittman. The investigation also determined that Pittman has two prior violent felony convictions.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Lackawanna Police Department, under the direction of Chief Mark Packard, and the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.

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

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    MIL Security OSI

  • MIL-OSI Security: Investigations and Oversight: Director Wray Discusses FBI’s Commitment to Government Accountability

    Source: US FBI

    The FBI pursues the cause of government accountability by investigating abuses of power by law enforcement officers and the corruption of public officials, and by holding our own workforce to a higher standard, FBI Director Christopher Wray said during the University of Georgia’s 2024 Getzen Lecture on Government Accountability on March 19. The lecture—which is held annually at the school’s Athens, Georgia, campus—invites current and former government leaders and other experts to share their thoughts on government accountability. 

    “Our mission at the FBI is a broad one—to protect the American people and uphold the Constitution of the United States,” Wray said. “It covers everything from cyber to counterintelligence to counterterrorism to working with our partners to tackle violent crime. And, particularly relevant to this afternoon, it includes protecting the vulnerable and holding the powerful accountable.” 

    In the United States, the rule of law comes first and applies to everyone—regardless of their socioeconomic status or position of power (or lack thereof), Wray said. This approach differentiates our nation from “authoritarian regimes, like Russia and China, where the rule of law is subordinated to their leaders’ despotic will,” he added. But to maintain the public’s trust in our justice system, he said, the FBI must demonstrate that it holds powerful people accountable when they break the law. 

    “While there will always be people out there looking to exploit their positions of public trust by serving themselves rather than the American people, with an agency like the FBI on the job—and with institutions like UGA shining a light on why government accountability is so important in the first place—I like our chances,” Wray said. 

    Holding Law Enforcement Accountable 

    The FBI leads federal government efforts to investigate civil rights violations, including the responsibility to investigate what are known as color of law violations. 

    “Those crimes occur when an individual acting under the authority of federal, state, or local laws—under what’s known as the color of law—willfully deprives someone of their constitutional rights,” he explained. “And that deprivation of rights can run the gamut, from excessive force, false arrest, or obstruction of justice to sexual assault, withholding medical care or the failure to keep an individual from harm.  

    While color-of-law violations can be committed by anybody acting under their lawful authority— including probation and corrections officers, public officials, prosecutors, and judges—they too often involve law enforcement officers.” 

    He then described an FBI Jackson Field Office investigation into a group of white law enforcement officers who in January 2023 “kicked in the door of a home where two Black men were staying and subjected them to an hour and a half of pure hell”—including physical and psychological abuse—even though the officers had “no probable cause to believe either had committed a crime.”  

    The officers then went to extraordinary lengths to cover up their actions, including (but not limited to) destroying evidence, planting a gun on a victim, filing fraudulent reports, lying to investigators, and charging a victim with crimes he didn’t commit, Wray said. 

    “All of that came out through the course of the FBI’s investigation,” Wray said, adding that the FBI also learned “three of the officers had committed color of law violations just a month earlier.” 

    The investigation, which Wray said was a group effort between the FBI and “our state and federal partners” resulted in guilty pleas from all six officers, who are now awaiting sentencing. 

    “I recognize that what happened in Mississippi is an extreme example,” he said. “In fact, it’s hard to imagine a more atrocious set of civil rights violations than those carried out by these guys. But, on the flip side, it’s hard to imagine more important work than investigating those crimes and seeking justice for the victims.” 

    These criminals don’t represent “the vast majority of law enforcement officers,” Wray stressed. 

    “I’m the leader of the country’s premier law enforcement agency, and I’ve spent most of my career working shoulder to shoulder with law enforcement officers … so I’ve seen firsthand what they’re made of and what they do to make our communities safer,” he said. These ingredients, he said, include selflessness, courage, character, dedication, and service.  

    Wray added that officers are overworked and underpaid, largely operate outside the spotlight, and are rarely recognized or credited for their efforts. Yet, he said, they do their jobs knowing that each time they bid their families farewell to head to work, they might be doing so for the last time. “It takes a pretty extraordinary person to choose that life,” he said.  

    Wray said the contrast between officers who wear the badge to serve and protect and those who wield their power to harm others makes color of law violations harmful to both their immediate victims and the public’s faith in the way our country holds criminals to account. 

    “We’ve entrusted law enforcement officers with vast power and authority,” Wray said. “And when they abuse it—when they operate as though they’re above the law—they’re not just depriving victims of their civil rights. They’re degrading the public’s trust in our criminal justice system, one violation at a time.” 

    Holding Public Officials Accountable 

    Investigating public corruption is the FBI’s top criminal priority because of its dollars-and-cents cost to our nation’s’ government and taxpayers, which estimates put “at billions of dollars every year,” Wray said.

    Public corruption—which can be carried out by public officials, regardless of how they get their jobs—can also infect and impact everything from border security and neighborhood protection to courtroom deliberations and even the quality of public infrastructure, he added. But at its core, public corruption denigrates the American people’s trust in their government and “undermines the strength of our democracy,” he said. 

    The “secretive nature” of many public corruption violations can make them tricky to detect and prove, Wray said, but the Bureau’s long track record of investigating these types of crimes gives us an advantage. 

    “On any given day, we’re working about 3,500 public corruption investigations with our federal, state, and local partners across the country—and our efforts pay off,” he said. “Over the past five years, we’ve disrupted nearly 2,000 criminal schemes and helped secure more than 3,000 convictions in this arena.”  

    Those convictions include that of former Ohio House Speaker Larry Householder, who, Wray said, led “the most elaborate and extensive corruption scandal the state has ever seen.” 

    Householder orchestrated a bribery scheme in which FirstEnergy—a company that owned two “failing nuclear power plants”—regularly paid off a tax-exempt organization run by Householder. In exchange, Householder’s organization worked to helped get a bill passed that provided “a billion-dollar bailout” for the troubled facilities, Wray explained.  

    These corporate funds helped bankroll Householder’s bid for speaker and other state House candidates’ campaigns and pad the pockets of Householder and his team.  

    “All in all, the FBI’s investigation found FirstEnergy paid upwards of $61 million in bribes to bail out their plants and to put and keep in office politicians like Householder who’d be loyal to the company over their constituents,” Wray said. 

    But what the corrupt politicians and his cronies didn’t know was that the FBI had an inside source who “cooperated with our agents, recorded incriminating phone calls and conversations, and shared text messages sent by members of the conspiracy,” Wray said. As a result, he said, Householder was eventually convicted of racketeering and sentenced to 20 years in federal prison. FirstEnergy signed a deferred prosecution settlement and agreed to pay a $230 million penalty for conspiring to bribe elected officials and others. 

    Holding Ourselves Accountable 

    The FBI’s authority and power enable our public corruption investigations, but they also rightly force us to carry tremendous responsibility and undergo careful scrutiny, Wray said.  
    “The work of the FBI is subject to a wide range of internal and external controls, all with the aim of holding our organization accountable for what we do,” he said. 

    The Bureau’s internal checks and balances include the Office of Professional Responsibility, the Inspection Division’s Internal Affairs Section, and whistleblower protections for all Bureau employees, he said. Department of Justice-level accountability includes oversight from the DOJ Office of Professional Responsibility and the department’s Office of the Inspector General, he added. On top of that, our efforts are monitored by Congress and our investigative steps are subject to judicial review, he noted. 

    “All of those components are in place to make sure people have avenues for reporting violations of the law, dangers to public health and safety, and gross waste, fraud, and abuse” for the FBI to address and correct, he said. The oversight makes the FBI stronger and the public safer, he said. 

    “For the FBI to be the world’s leading law enforcement agency, and for the American public to continue placing their trust in us as an organization, people need to know we’re committed to doing the right thing in the right way,” he said. He stressed that this commitment to process includes maintaining consistent operational rigor, “upholding the Constitution and rule of law,” and “following the facts, wherever they lead.”  

    “Process is what enables us to say, ‘You may not like the result we reached, but you cannot credibly say we didn’t do our work by the book,’ and it’s what allows people to trust us in the long run: the people we do the work for and the people we do the work with,” he said. 

    Learning from the Past 

    Wray also acknowledged the FBI’s missteps with respect to Dr. Martin Luther King Jr.—including an October 1963 wiretap request against the civil rights leader that failed to “present a shred of evidence.” He also reflected on the psychological toll FBI surveillance took on Dr. King. 

    “I do not think any organization can aspire to have an unbiased loyalty to process and truth if it’s not willing to turn the spotlight around and look at itself,” he said. “So that’s something we work hard to do.” 

    The FBI’s mission requires its personnel to simultaneously preserve Americans’ constitutional rights and safeguard their communities, Wray said. And neither requirement may be ignored in the name of the other. 

    New special agents and intelligence analysts now complete a curriculum that incorporates “those difficult historical lessons and how they relate to our core values: respect, compassion, fairness, integrity, accountability, leadership, diversity, and rigorous obedience to the Constitution” to ensure they understand the importance of balancing these professional obligations, Wray said.  

    “Looking back on that dark chapter in our history reminds us what can happen when we become untethered from the rule of law, and from oversight and accountability for our actions,” he added. “And I’m proud to be part of an organization that does not hide from its history, but learns from it, instead.” 

    MIL Security OSI

  • MIL-OSI Security: Protecting Quantum Science and Technology

    Source: US FBI

    As scientists race to develop these technologies, hostile nation-states stealing research and trade secrets is a key risk.

    Some nation-states, such as the People’s Republic of China (PRC), seek to fast-track getting these advanced tools through illegal or otherwise illicit technology transfer—for instance, illegally taking technology from companies or academic institutions and transferring it to the adversary government for its own use.

    When it comes to economic espionage, the government of China is using every possible avenue to steal U.S. companies’ innovation and is engaged in a well-resourced and systematic campaign to steal our intellectual property, compromise the integrity of our academic institutions, and put our companies out of business in pursuit of the “innovation-driven” economic growth highlighted in their Five-Year and Made in China 2025 strategic plans.

    More specifically, the PRC’s Five-Year Plan identifies major technologies China wants to develop within that period, such as semiconductors, quantum computing, artificial intelligence, machine learning, new energy, biotechnology, aerospace, robotics, and the devices and software that contribute to the manufacturing process of any of these technologies.

    In March 2023, China and Russia agreed to deepen their scientific and other cooperation, benefiting their respective militaries’ technology research goals, including nuclear programs.

    Investigating and preventing economic espionage and illicit technology transfer to adversarial governments are among the FBI’s most important work, as the United States’ economic and national security are inextricably linked. Stolen innovation is not just the theft of one idea—it could also result in lost jobs and stolen opportunities for American workers, decreased national power, and reduced leadership in the industries hostile nations seek to dominate in the decades to come.

    The FBI and our NCITF partners have developed security partnerships with technology developers, investors, and end-users to thwart adversaries’ efforts to steal quantum innovations. To aid in keeping the quantum field safe, we are increasing outreach to government research agencies, private sector companies, and academic institutions to help bolster the industry’s cybersecurity defenses and to coordinate any counterintelligence investigations associated with quantum technology.

    Partnerships are vital—the threat from foreign intelligence adversaries has become increasingly complex as they employ an all-tools approach that includes non-traditional collectors, economic and academic influence, and other asymmetric intelligence operations. As a result, no single U.S. counterintelligence agency can fully understand or mitigate these operations on its own. The NCITF, which comprises over 45 government agencies, was born out of this idea. A component of its mission is to protect the quantum research and development landscape, covering all efforts across and within government, academia, and the private sector.

    Within NCITF, the Quantum Information Science Counterintelligence Protection Team (QISCPT) is an interagency unit tasked with protecting the quantum information science technology developed by the U.S. and like-minded nations. This team was created as a result of the National Quantum Initiative Act of 2018, which established a coordinated federal program to provide and support accelerated quantum research for the economic and national security of the U.S.

    The QISCPT puts the FBI and our intelligence and security agency partners within arm’s reach of representatives from all government agencies—not just the law enforcement and intelligence communities—and in contact with key players in the quantum information science and technology ecosystem. This access allows us strategic agility and deep insight into the strengths and vulnerabilities of the field, allowing us to form a nuanced threat picture and positions us to help protect vital U.S. innovation and security.

    The FBI and our NCITF intelligence and security partners understand the value and importance of a diverse workforce, especially in research and innovation environments. International collaboration in emerging technology fields is a boon to U.S. industry and academia. The issue arises when talented foreign researchers, investors and end users are exploited by adversary governments to commit illegal or otherwise illicit acts. It is our mission to stop innocent people from being victimized by an adversary nation state—no matter the nationality of the person transferring the information.

    MIL Security OSI

  • MIL-OSI Security: Investigating Torture: FBI-HSI Investigation Leads to U.S. Citizen’s Conviction for Human Rights Violations in Iraq

    Source: US FBI

    Seeking Victims and Witnesses

    In the meantime, O’Donnell and Burke continued their investigation. They believed that interviews with Roggio’s former employees—largely Estonians, but also other Europeans who’d been handpicked by his special assistant—could help strengthen the case. And that gut feeling proved right.

    When the duo learned that a former female employee of Roggio’s—an Estonian citizen—was slated to travel through John F. Kennedy International Airport in New York, they worked with Estonia’s Internal Security Service to interview her about her experience with Roggio. The woman turned out to be the first international employee of Roggio’s weapons facility. She shared enough information with O’Donnell and Burke to justify a trip to Estonia to conduct a more in-depth interview with her in a friendlier setting.

    Investigators hoped that the interview could help them put the finishing touches on their counterproliferation investigation. But that trip yielded more than just a follow-up conversation.

    It also gave investigators the chance to meet a second former weapons factory employee, who surprised the investigators with a six-year-old cellphone recording that captured Roggio making threats of torture, confessing to that and other crimes, and even speaking to motive.

    This was the first time they’d heard torture allegations concerning Roggio.

    After interviewing these and other former employees, investigators returned to the U.S. with a case, having identified a new and urgent objective: to seek guidance and expertise from the FBI’s International Human Rights Unit to seek a potential prosecution for torture violations.

    The FBI is responsible for investigating torture if the victim is a U.S. person, or if the perpetuator is either a U.S. person or if they’re physically located within our country’s borders. This jurisdiction comes from 18 USC, Section 2340A.

    The agents knew they had to act quickly—and carefully.

    Careful collaboration between the case team, the FBI’s International Human Rights Unit (part of our Criminal Investigative Division), federal victim services providers, multiple FBI legal attaché offices, the U.S. Department of Justice, and our Estonian law enforcement partners enabled the case team to travel to Estonia to conduct forensic interviews with these subjects.

    The investigators got the greenlight to take a joint trip with DOJ prosecutors to explore the matter of torture in great detail. The investigative team leveraged their agencies’ resources and connections, as well as international partnerships, to locate and interview multiple former employees of Roggio’s who may have witnessed or been victims of torture.

    FBI Supervisory Child-Adolescent Forensic Interviewer Jacqueline Goldstein—who, at the time, held a similar role at HSI—helped ensure these conversations were cognizant of the trauma that these people’s experiences with Roggio may have left them with, while still being admissible in court and supporting investigative needs.

    “It’s designed to pass judicial scrutiny,” she said. “So it’s non-leading, non-suggestive. But it’s also trauma-informed so that the investigative interviewing process is uniquely suited to the developmental, cognitive, clinical needs of that individual, and we’re not creating additional trauma in that investigative process.”

    And with that, in August 2021, investigators were finally able to interview Roggio’s victim: a man who’d been held in captivity and subjected to physical and mental torture—including physical beatings, suffocation, and choking—for more than a month.

    “He had very vivid recollection,” O’Donnell said. “Some people blacked out everything. This guy remembered every detail of a lot of what happened.”

    Law enforcement also captured statements from a wider group of former employees who’d been forced to witness Roggio’s brutality against the victim. They also convinced the witnesses to travel to the United States to testify against Roggio in federal court.

    As a result of these efforts, a federal grand jury returned a superseding indictment in 2022—which added a charge of torture and a charge of conspiracy to commit torture to Roggio’s already long list of alleged crimes—and he was again arrested.

    MIL Security OSI

  • MIL-OSI Security: El Salvadoran National Indicted for Firearm Possession

    Source: US FBI

    NEW ORLEANS, LOUISIANA – Acting United States Attorney Michael M. Simpsonannounced that EDGAR YOVANI PEREZ-GUTIERREZ (“PEREZ-GUTIERREZ”), age 27, a native of El Salvador, was indicted on April 24, 2025, for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(8).

    According to court documents, on or about April 10, 2025, PEREZ-GUTIERREZ, an individual unlawfully present in the United States, was found in possession of a Glock handgun.  He was arrested by the New Orleans Police Department, Federal Bureau of Investigation, and Immigration and Customs Enforcement – Enforcement and Removal Operations officers, for violating immigration and federal gun control laws.

    If convicted, PEREZ-GUTIERREZ faces a maximum penalty of 15 years of imprisonment, up to a $250,000 fine, up to three years of supervised release, and a $100 mandatory special assessment fee.

    Acting U.S. Attorney Simpson reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

    Acting U.S. Attorney Simpsonpraised the work of the U.S. Immigration and Customs Enforcement – Enforcement and Removal Operations, the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.

    This case is part of Operation Take Back America [link], a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI

  • MIL-OSI Australia: Two in custody following Launceston CBD incident

    Source: New South Wales Community and Justice

    Two in custody following Launceston CBD incident

    Friday, 23 May 2025 – 3:48 pm.

    Two people are in custody assisting police after an alleged incident involving an imitation firearm in Launceston CBD earlier today.
    Shortly after midday, police received reports of a man in possession of what was believed to be a handgun while in the CBD with another man.
    The men left the area in a small silver Holden hatch before the vehicle was quickly intercepted by police and they were safely taken into custody.
    An imitation firearm was located within the vehicle and seized.
    Nobody was physically injured or threatened during the incident and the men remain in custody assisting police.
    Investigations are ongoing, and anyone with information is asked to contact police on 131 444 or Crime Stoppers on 1800 333 000 or at crimestopperstas.com.au. Information can be provided anonymously.

    MIL OSI News

  • MIL-OSI USA: PSI Chairman Johnson Requests Transparency from Biden Cabinet Officials Regarding the Former President’s Cognitive Decline

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    WASHINGTON – U.S. Sen. Ron Johnson (R-Wis.), chairman of the Permanent Subcommittee on Investigations (“the Subcommittee”), sent letters to 28 former Biden Cabinet members regarding their knowledge of President Biden’s cognitive and health decline during his time in office and while running for reelection. Chairman Johnson requested that these former public officials appear voluntarily before the Subcommittee for interviews by June 6, 2025.

    A recent book detailing the former president’s cognitive and health decline while in office revealed that members of President Biden’s inner circle were alarmed by the state of his health. One Cabinet secretary was reportedly left “upset and disturbed” after meeting with President Biden due to his “mumbly and incoherent” speech. As the chairman’s letter noted, the reported behind-the-scenes concerns stand in stark contrast to Cabinet officials’ public statements portraying the former president as healthy and mentally sharp.    

    “The discrepancy between what Cabinet officials were telling the public about the former president’s health and what they were apparently witnessing and saying privately is astonishing, particularly considering that the former president was seeking reelection. After years of being lied to and kept in the dark, the public deserves full and complete transparency about what was known and when concerning President Biden’s health,” Chairman Johnson wrote. 

    The letters went out to the following former Biden Cabinet-level members:

    1. Lloyd Austin, former Secretary of Defense;
    2. Xavier Becerra, former Secretary of Health and Human Services;
    3. Jared Bernstein, former Chair of the Council of Economic Advisers;
    4. Antony Blinken, former Secretary of State;
    5. William J. Burns, former Director of the Central Intelligence Agency;
    6. Pete Buttigieg, former Secretary of Transportation;
    7. Miguel Cardona, former Secretary of Education;
    8. Marcia Fudge, former Secretary of Housing and Urban Development;
    9. Merrick Garland, former Attorney General;
    10. Jennifer Granholm, former Secretary of Energy;
    11. Isabel Guzman, former Administrator of the Small Business Administration;
    12. Deb Haaland, former Secretary of the Interior;
    13. Avril Haines, former Director of National Intelligence;
    14. Kamala Harris, former Vice President;
    15. Ronald Klain, former White House Chief of Staff;
    16. Alejandro Mayorkas, former Secretary of Homeland Security;
    17. Denis McDonough, former Secretary of Veterans Affairs;
    18. Arati Prabhakar, former Director of the Office of Science and Technology Policy;
    19. Gina Raimondo, former Secretary of Commerce;
    20. Michael Regan, former Administrator of the Environmental Protection Agency;
    21. Julie Su, former Acting Secretary of Labor;
    22. Katherine Tai, former United States Trade Representative;
    23. Linda Thomas-Greenfield, former U.S. Ambassador to the United Nations;
    24. Adrianne Todman, former Acting Secretary of Housing and Urban Development;
    25. Tom Vilsack, former Secretary of Agriculture;
    26. Janet Yellen, former Secretary of the Treasury;
    27. Shalanda Young, former Director of the Office of Management and Budget; and
    28. Jeff Zients, former White House Chief of Staff.

    The letters from Chairman Johnson can be found here.

    Read more about the chairman’s letters here: Axios, Fox News, and Washington Examiner. 

    MIL OSI USA News

  • MIL-OSI Security: Virginia Woman Pleads Guilty to Bank Fraud Conspiracy

    Source: US FBI

    Indictment Charges Nigerian Citizens Living in the New York City Area with Orchestrating Multi-Million Dollar Bank Fraud Conspiracy Using Stolen Identities from Across the U.S.

    ALBANY, NEW YORK – Sherry Ozmore, age 56, of Richmond, Virginia, pled guilty today to conspiracy to commit bank fraud in connection with her role as a “runner” for a nationwide conspiracy to impersonate customers of financial institutions to fraudulently obtain cash, checks, loans, and credit.  United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    Ozmore was indicted in October 2024 as part of a superseding indictment charging the alleged ringleader of the conspiracy, Oluwaseun Adekoya, 39, a Nigerian citizen living in New Jersey, as well as David Daniyan, 60, a Nigerian citizen who according to prosecutors has lived in the United States under stolen identities for decades, with orchestrating a conspiracy to steal the identities of people who resided all over the country and impersonate those people at banks and credit unions to fraudulently obtain cash, checks, loans, and credit. According to documents previously filed in court, the conspirators also allegedly opened bank accounts in the names of identity theft victims, which were then used to deposit and access the funds from checks they had fraudulently obtained from banks and credit unions by impersonating other individuals.  The conspirators’ conduct allegedly involved nearly $3 million in intended losses, over $1.7 million of which was successful.

    Ozmore admitted that she was recruited to join the conspiracy as a runner in or around January 2023 and fraudulently obtained over $195,000 over a five-month period that year from banks and credit unions by impersonating identity-theft victims whose personal identifying information was supplied to her by supervisors.  Ozmore was paid a small portion of the money she fraudulently obtained.

    The following defendants are charged as follows in the superseding indictment: 

    • Adekoya is charged with conspiracy to commit bank fraud, money laundering conspiracy, and nine counts of aggravated identity theft;
    • Daniyan is charged with conspiracy to commit bank fraud, money laundering conspiracy, and four counts aggravated identity theft;
    • Kani Bassie, 36, of Brooklyn, New York, is charged with conspiracy to commit bank fraud and two counts of aggravated identity theft;
    • Davon Hunter, 27, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft;
    • Jermon Brooks, 20, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft;
    • Christian Quivers, 20, of Richmond, Virginia, is charged with conspiracy to commit bank fraud and aggravated identity theft; and
    • Crystal Kurschner, 44, of Brooklyn, is charged with conspiracy to commit bank fraud and aggravated identity theft.

    The prosecution is the result of an ongoing investigation by the U.S. Attorney’s Office and FBI-Albany, which began after the May 2022 arrest of Daniyan, Gaysha Kennedy, 46, of Brooklyn, and Victor Barriera, 64, of the Bronx, by the Cohoes Police Department after the trio had allegedly traveled to the Capital Region to commit bank fraud. 

    Adekoya, Daniyan, Kennedy, and Barriera were originally indicted, along with coconspirators Jerjuan Joyner, 50, of Brooklyn, Akeem Balogun, 56, of Brooklyn, Danielle Cappetti, 46, of the Bronx, and Lesley Lucchese, 53, of Brooklyn.

    At sentencing on May 6, 2025, Ozmore faces a maximum term of 30 years’ incarceration, an order of restitution in the amount of $195,500, and a term of supervised release of up to 5 years.

    Kennedy, Barriera, Joyner, Balogun, Cappetti, and Lucchese have pled guilty to bank fraud conspiracy and are pending sentencing.

    The charges in the superseding indictment are merely accusations. The remaining defendants are presumed innocent unless and until proven guilty.

    FBI Albany is investigating the case, with assistance from the FBI Field Offices in New York, Newark, Richmond and Resident Agencies in Westchester, New York; Brooklyn/Queens, New York; Garrett Mountain, New Jersey; and Fort Walton Beach, Florida.  Additional assistance was provided by other law enforcement agencies, including Immigration and Customs Enforcement – Enforcement & Removal Operations (New York Field Office & Albany sub-office); U.S. Department of State Diplomatic Security Service (Buffalo Field Office & St. Albans Resident Office); U.S. Social Security Administration – Office of the Inspector General; New York law enforcement agencies including the New York State Police; Cohoes PD; Colonie PD; Elmira PD; Corning PD; Plattsburgh PD; Florida law enforcement agencies including the Okaloosa County Sheriff’s Office and Escambia County Sheriff’s Office; the Pennsylvania State Police; Alabama law enforcement agencies including the Calhoun County Sheriff’s Office, Gasden PD, and Rainbow City PD; Georgia law enforcement agencies including the Georgia State Patrol, Bartow County Sheriff’s Office, and Morrow PD; Kansas law enforcement agencies including Lawrence PD and Overland Park PD; New Hampshire law enforcement agencies including Rochester PD, Manchester PD, and Amherst PD; the Delaware State Police; Maryland law enforcement agencies including the Maryland State Police, Harford County Sheriff’s Office and Baltimore County Sheriff’s Office; Wisconsin law enforcement agencies including Onalaska PD and Eau Claire PD; and Indiana law enforcement agencies including the Allen County Sheriff’s Office.

    Assistant United States Attorneys Benjamin S. Clark and Joshua R. Rosenthal are prosecuting this case.

    MIL Security OSI

  • MIL-OSI Security: Two Consulting Companies and Its Owners Plead Guilty to Bid Rigging Scheme Involving New York City Public Schools

    Source: US FBI

    Four defendants, two companies and their owners, have pleaded guilty in the U.S. District Court for the Southern District of New York, for their roles in a bid rigging scheme involving budget and procurement consulting services for New York City (NYC) Public Schools.

    On March 19 and 20, Transcend BS LLC (Transcend), a procurement and training consultant company, and its owner, Victor A. Garrido of Peekskill, New York; and Clark & Garner LLC (C&G), an educational programming consultant for schools and non-profit organizations, and its owner, Donald Clark Garner II, of Brooklyn, New York, pleaded guilty to a violation of Section 1 of the Sherman Act.

    “Defendants targeted the nation’s largest school system with their scheme, undermining the rights of New York City taxpayers to benefit from fair and honest competition,” said Director of the Procurement Collusion Strike Force Daniel Glad of the Justice Department’s Antitrust Division. “The Antitrust Division and its PCSF partners remain steadfast in our commitment to root out fraud, waste, and abuse in procurement processes at any level of government, as we have since 2019.”

    According to court documents, from approximately November 2020 through at least January 2023, Garrido and his co-conspirators, including Garner and C&G, created and submitted artificially high “competitor” bids to make it appear as if Transcend was the lowest bidder for consulting services contracts to circumvent NYC Department of Education’s (DOE) requirement for a competitive bidding process. C&G never provided any of the same services that Transcend provided. Rather, the co-conspirators rigged the bidding process for Transcend to continue to obtain lucrative work orders from New York City public schools without competing fairly. This scheme affected more than $707,000 in work orders to NYC Public Schools and resulted in estimated losses to the NYC DOE of $141,511.

    Prior to forming Transcend and C&G, Garrido and Garner were employed by NYC Public Schools. Garrido was a business manager, providing substantially similar consulting services to various schools, and Garner was a former teacher recruitment manager

    In addition, both Garrido and Garner agreed to pay restitution to New York State Department of Labor for unemployment benefits they improperly received.

    “Victor Garrido and Donald Clark Garner admitted their guilt in scheming to use their companies to artificially control the bidding process for a New York City Department of Education contract,” said Acting Assistant Director in Charge Leslie Backshies of the FBI New York Field Office. “Garrido and Garner will now rightly face justice for attempting to personally benefit at the expense of the New York City taxpayers. The FBI will continue to enforce antitrust laws to ensure a fair and competitive bidding process for government contracts.”

    “SCI is grateful for the opportunity to work alongside our partners at the DOJ Anti-trust Division, the Office of the Inspector General for the Department of Labor, and the FBI in bringing this important case to justice,” said Special Commissioner of Investigation Anatasia Coleman of the Office of the Special Commissioner of Investigation for the NYC School District. “SCI is also pleased to recover tax dollars for New York City taxpayers. Bid-rigging is a serious crime that deprives the school district of vital funds and deprives students of a stable learning environment — and it is a crime that SCI will continue to tirelessly root out.”

    “These guilty pleas underscore the U.S. Department of Labor, Office of Inspector General’s unwavering commitment to safeguard the American workplace from corruption and illegal influence,” said Special Agent-in-Charge Jonathan Mellone of the U.S. Department of Labor, Office of Inspector General Northeast Region. “We will continue to work closely with our law enforcement partners to pursue those who engage in the exploitation of governmental programs within our jurisdiction.”

    The maximum penalty for bid rigging for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Antitrust Division’s New York Office is prosecuting the case, which was investigated with the assistance of the FBI New York Field Office, the SCI for the New York City School District, and the Department of Labor Office of Inspector General.

    Anyone with information about this investigation or other procurement fraud schemes should notify the PCSF at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state, and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

    MIL Security OSI

  • MIL-OSI Security: Convicted Sex Offender is Sentenced to 37 Years for Producing Child Sexual Abuse Material

    Source: US FBI

    The Defendant Used a Minor Victim’s Snapchat Account to Victimize Other Children

    CHARLOTTE, N.C. – A convicted sex offender was sentenced today to 37 years in prison and a lifetime of supervised release for producing child sexual abuse material (CSAM), announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina. Jesse Thomas Cunningham, 30, of Morven, N.C., was also ordered to register as a sex offender after he is released from prison.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division,  Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Roger “Chip” Hawley, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Scott Howell of the Anson County Sheriff’s Office, join Acting U.S. Attorney Cameron in making this announcement.

    According to court documents and court proceedings, in 2021, Cunningham assumed the identity of a minor on Snapchat to communicate with an 11-year-old female. Court records show that Cunningham induced the minor to send him sexually explicit images and videos of herself via Snapchat. Over the course of his communications with the minor victim, Cunningham gained access to the victim’s Snapchat account and used it to persuade two other minor females to create and send him images and videos of themselves engaged in sexually explicit conduct.

    According to court records, on December 7, 2021, law enforcement obtained a search warrant for Cunningham’s phone. A forensic examination of the phone revealed that Cunningham possessed CSAM, including images and videos of the three minor victims he had contacted via Snapchat. During the investigation, law enforcement also found evidence that Cunningham had coerced the minor victims, threatening to expose them publicly online if they did not comply with his demands for additional CSAM. Cunningham has prior criminal convictions of Possessing Obscenity With Intent to Disseminate, Attempting to Extort Another, Felony Secret Peeping, and Indecent Liberties with a Child.

    On October 11, 2024, Cunningham pleaded guilty to producing CSAM. Cunningham will remain in federal custody until he is transferred to the custody of the Federal Bureau of Prisons.

    The FBI, HSI, SBI and the Anson County Sheriff’s Office investigated the case.

    Assistant U.S. Attorney Nick J. Miller with the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

    MIL Security OSI

  • MIL-OSI Security: Businesswoman Sentenced for Orchestrating $1.5 Million Fraudulent Disaster Relief Loan Scheme

    Source: US FBI

    CHARLOTTE, N.C. – Jeannetta Blackmon, also known as Jeannetta Regan, 50, of Charlotte, was sentenced today to 30 months in prison followed by two years of supervised release for obtaining more than $1.5 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for her and her customers, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina. Blackmon was also ordered to pay $1,549,737 in restitution.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina joins Acting U.S. Attorney Cameron in making today’s announcement.

    “Blackmon defrauded loan programs put in place to support businesses fighting to survive during the COVID-19 pandemic. Her scheme was not a lapse in judgment, but a pervasive and deceitful course of conduct. This Office stands ready to identify and prosecute those who exploit government assistance programs for personal gain,” said Acting U.S. Attorney Cameron.

    “Not only did Blackmon prepare fraudulent loan applications for herself, she also charged others to fake their applications as well. The FBI will make every effort to ensure federal relief funds are used as intended,” said Special Agent in Charge DeWitt.  

    According to court records, filed plea documents, and court proceedings, from April 2020 to November 2021, Blackmon executed a scheme to defraud the U.S. Small Business Administration (SBA) and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for her businesses, J Renee Enterprises, Jeannetta Renee Girls Talk, and Jrenee Investments. To obtain the relief funds, Blackmon submitted applications and supporting documents that contained false and fraudulent information regarding her businesses’ income, number of employees, gross revenues, and expenses. Blackmon also created and submitted fabricated bank statements and checks, in furtherance of the scheme. As a result of the fraudulent loan applications, Blackmon received more than $319,000 in disaster relief funds.

    Blackmon also obtained over $300,000 in fees from customers who paid her to prepare and submit on their behalf fraudulent PPP and EIDL applications that contained false and fictitious information on employment data, business income, expenses, and tax information. Based on the fraudulent loan applications, Blackmon’s customers received more than $1.2 million in disaster relief funds. To avoid detection, Blackmon directed her customers to pay her loan preparation fees in checks or peer-to-peer payments.

    On July 25, 2023, Blackmon pleaded guilty to wire fraud and money laundering. She is released on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

    The FBI handled the investigation.

    Assistant U.S. Attorneys Caryn Finley and Benjamin Bain-Creed prosecuted the case.

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

     

     

    MIL Security OSI

  • MIL-OSI Security: Recidivist Sex Offender is Sentenced to 10 Years for Possession of Child Sexual Abuse Material

    Source: US FBI

    CHARLOTTE, N.C. – A registered sex offender was sentenced to 120 months in prison for possession of child sexual abuse material (CSAM) yesterday, announced Lawrence J. Cameron, Acting U.S. Attorney for the Western District of North Carolina. Thomas Robert Boehm III, 36, of Charlotte, was also ordered to register, again, as a sex offender after his release from prison and to pay restitution to his victims.

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

    According to court documents and court proceedings, the National Center for Missing and Exploited Children (NCMEC) referred a tip to law enforcement that a Dropbox account user had uploaded and maintained several video files containing CSAM.  Law enforcement determined that the Dropbox user was Boehm.  Law enforcement executed a search warrant for Boehm’s Dropbox account, and a forensic analysis of Boehm’s files revealed that Boehm possessed the equivalent of over 6,000 images depicting the sexual abuse of children, including children under the age of 12.  Some of the materials maintained by Boehm portrayed sadistic or masochistic conduct or other depictions of violence.  Court documents show that Boehm was a registered sex offender for state convictions related to taking indecent liberties with a child.

    On February 22, 2024, Boehm pleaded guilty to possession and access with intent to view child pornography involving prepubescent minors.  Boehm remains in federal custody.  He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

    The FBI and CMPD investigated the case.

    Assistant U.S. Attorney Katherine Armstrong with the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

    MIL Security OSI

  • MIL-OSI Security: Richlands Man Sentenced to 30 Years for Production of Child Pornography

    Source: US FBI

    WILMINGTON, N.C. – A Richlands man was sentenced today to 360 months in prison followed by 10 years of supervised release for production of child pornography.  Additionally, $74,000 in restitution was ordered to nine victims and he was fined $5000.  On September 17, 2024, Albert Suniga, age 37, pled guilty to the charge.

    According to court documents and other information presented in court, Suniga was investigated by the Department of Homeland Security Investigations (HSI) after receiving two cybertips related in which Google reported to the National Center for Missing and Exploited Children one of its users had uploaded nine images and videos of child pornography, also known as child sexual abuse material (CSAM), to their Google Drive account.  Agents with HSI obtained the internet protocol (IP) address associated with the Google Drive account and then obtained search warrants for the email accounts associated with the IP address and determined they belonged to Suniga.

    The search of Suniga’s email resulted in the discovery of several images and videos of a minor victim that appeared to have been produced by Suniga. Believing a child to be in imminent danger, agents executed a search warrant at the residence associated with the IP address, which was also Suniga’s residence.  When questioned by agents, Suniga admitted to taking images constituting child sexual abuse images of a child in his residence, as well as possessing images of child sexual abuse unrelated to that child.  A digital forensic examination of his email account and his digital devices revealed numerous images and videos.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Department of Homeland Security Investigations, the Federal Bureau of Investigation, the State Bureau of Investigation and Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorney Charity Wilson  prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:24-CR-00008-M.

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    MIL Security OSI

  • MIL-OSI Security: Former Columbus Police Officer Sentenced to More Than Four Years in Prison for Stealing Cocaine From Crime Scenes, Police Evidence Room

    Source: US FBI

    COLUMBUS, Ohio – A former Columbus police officer was sentenced in federal court here today to 50 months in prison for crimes involving more than 15 kilograms of cocaine and money laundering.

    Joel M. Mefford, 35, of London, Ohio, was a Columbus police officer assigned to investigate drug crimes. On three occasions between February and April 2020, Mefford worked with another officer to steal and traffic cocaine.

    “Crimes like those that Mefford committed undermine the integrity of the criminal justice system. Mefford abused his official position for personal gain,” said U.S. Attorney Kenneth L. Parker. “Today’s substantial prison sentence is necessary to reflect the gravity of his offenses and to promote respect for the law. Corrupt public servants will be held accountable.”

    According to court documents, in February 2020, Mefford and the other officer were investigating a drug crime and unlawfully gained access to a detached garage belonging to the subject of the investigation. Without a warrant, they entered the garage and discovered two kilograms of cocaine in the rafters. They unlawfully seized one of the kilograms and left the other to be found during the execution of a search warrant the next morning. The other officer gave the stolen narcotics to another individual to sell.

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

    In April 2020, Mefford and the other officer stole between 10 and 20 kilograms of cocaine from the Columbus police property room and replaced it with fake cocaine. Mefford transported the stolen cocaine in a police cruiser and the other officer later gave the drugs to another individual to sell. The drug proceeds were then given to the other officer, who provided Mefford his cut. Mefford personally received a total of approximately $130,000 from cocaine sales.

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

    A federal grand jury indicted Mefford in December 2023 and he pleaded guilty in August 2024 to two counts of possessing with intent to distribute 500 grams or more of cocaine, one count of possessing with intent to distribute five kilograms or more of cocaine, and one count of money laundering.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.

    Assistant United States Attorneys Peter K. Glenn-Applegate and Elizabeth A. Geraghty are representing the United States in this case.

    The case was investigated by the FBI’s Southern Ohio Public Corruption Task Force, which includes special agents and officers from the FBI, Ohio Attorney General’s Bureau of Criminal Investigation, the Ohio Auditor of State’s Office and the Columbus Division of Police.

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    MIL Security OSI

  • MIL-OSI Security: Belmont County Man Pleads Guilty to Child Exploitation Crimes in Plea Agreement That Calls for 30-to-60-Year Prison Sentence

    Source: US FBI

    COLUMBUS, Ohio – Dennis Stopar, 65, of Flushing, Ohio, pleaded guilty in U.S. District Court today to sexually exploiting minors and possessing child pornography. The plea agreement includes a sentence recommendation of 30 to 60 years in prison. 

    According to court documents, between 2022 and 2023, Stopar sexually assaulted multiple female minor victims, forced a minor male victim to engage in sexual activity with another child and created hundreds of videos and images of the horrific abuse.

    In December 2023, Dropbox, Inc. submitted a cyber tipline to the National Center for Missing and Exploited Children (NCMEC) regarding child pornography being uploaded to a Dropbox account. Dropbox identified the IP address associated with the account within 24 hours. Further investigation revealed Stopar, a convicted sex offender, lived in a trailer on the property identified as the IP address.

    On December 28, Belmont County Sheriff’s Office deputies executed a local search warrant and seized Stopar’s electronic devices. Stopar’s electronic devices were subsequently processed via a federal search warrant, and he was charged federally in April 2024.

    Stopar’s prior sex offense is a rape conviction for sexually abusing a victim beginning when the victim was approximately 6 years old until the victim was 16 years old.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Belmont County Sheriff David L. Lucas announced the guilty plea entered today before U.S. District Judge Michael H. Watson. Assistant United States Attorneys Emily Czerniejewski and Jennifer M. Rausch are representing the United States in this case.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Member of Multimillion-Dollar Ponzi Scheme Involving Off-the-Road Tires Pleads Guilty

    Source: US FBI

    COLUMBUS, Ohio – A member of a $50 million, multi-state Ponzi scheme conspiracy pleaded guilty in federal court here today. 

    John K. Eckerd, Jr., 60, of Dallas, admitted to conspiring to commit wire fraud and tax crimes. In total, Eckerd received at least $14 million from the tire sales scheme. Eckerd’s plea agreement includes a sentence recommendation of 36 to 109 months in prison.

    Conspiring with previously convicted and sentenced defendant Jason E. Adkins, 47, of Jackson, Ohio, Eckerd and others participated in a multi-million-dollar Ponzi scheme.

    According to court documents, Eckerd and other members of the conspiracy portrayed to investors that they were in the business of buying and selling off-the-road tires. Off-the-road tires are over-sized tires that are used on earth moving equipment and/or mining equipment.

    Eckerd recruited investors and represented to investors that he worked with Adkins in tire sales. Few if any transactions were completed as designed. Instead, investor funds were used for the personal use of Eckerd and other members of the conspiracy, and to repay other victims. On multiple occasions, investors who were solicited by Eckerd invested in purported tire deals and then either lost money in tire deals that fell apart or were paid back some or all of their investments with other victims’ money, or both.

    Eckerd also conspired with Adkins to evade the payment of income taxes. Beginning in mid-2016, Eckerd made attempts with Adkins to re-classify payments from Adkins as loans, to avoid tax consequences. He also concealed income through shell entities and nominees. Eckerd has admitted evading the payment of $1,028,454 in taxes.

    A final restitution amount will be set by the Court at sentencing. The plea includes the forfeiture of $14 million, which will be satisfied in part by the forfeiture of Eckerd’s home in McKinney, Texas.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Algenon L. Marbley, Jr. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.

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    MIL Security OSI

  • MIL-OSI Security: USAO Ends 2024 with Notable Achievements to Combat Elder Fraud

    Source: US FBI

    CLEVELAND – Combatting elder fraud continues to be a top priority for the United States Attorney’s Office (USAO) for the Northern District of Ohio, in 2024 and beyond. The office is responsible for prosecuting federal law violations that occur in any of the 40 northern counties in the state of Ohio which the district serves.

    Prosecutors in the USAO’s White Collar Crimes Unit carry out the Department of Justice’s Elder Justice Initiatives, which include a commitment to combatting elder abuse, neglect, financial fraud, and other scams that target our nation’s senior citizens. Elder fraud schemes take a variety of forms that range from small-scale identity thefts to mass mail fraud schemes that steal money and other assets from thousands of elderly victims. Annually, these fraud schemes bilk seniors out of billions of dollars throughout the country.

    “Many fraud crimes that target our elderly population involve criminals taking advantage of this group’s trusting nature. Fraudsters falsely claim to be government officials or promise to help with computer issues, persuading victims to provide fraudsters with access to their personal information,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Our office prioritizes prosecuting those who prey on the elderly members of our communities in an attempt to steal their savings.”

    Notable cases in 2024 that involved elder fraud include:

    U.S. v. Alahmad – A caregiver forged a power of attorney document and used it to apply for, and receive, credit and debit cards in the name of the victim who was an elderly adult. The victim was in a nursing home rehabilitation facility while the defendant made unauthorized withdrawals and purchases using the victim’s credit and debit cards. Alahmad was sentenced to 30 months in prison and ordered to pay restitution of $46,064.30.

    U.S. v. Xie – A Chinese national college student on an F‐1 Visa traveled across the country, worked as a “money mule” who picked up cash from older victims, and then transferred the funds to his handler. Xie was sentenced to 16 months in prison and ordered to pay $188,000 in restitution.

    U.S. v. Wehman – The defendant was charged with wire fraud for stealing from his grandfather by using credit cards, debit cards, and a line of credit. He was sentenced to 37 months in prison and ordered to pay $376,069.46 in restitution.

    U.S. v. Turnipseede – The defendant defrauded approximately 72 investors out of more than $8.5 million through a Ponzi scheme that promised investors double-digit profits achieved through a purported algorithm designed to generate double-digit returns through various sports wagering businesses. Defendant used investor money to maintain the business, seek new sources of funds, pay off earlier investors, and fund personal expenses. He is scheduled to be sentenced March 3, 2025.

    U.S. v. Alexander – The defendant and other involved individuals engaged in a cold‐calling scheme that targeted older investors throughout the United States. They used aggressive and deceptive tactics and promised large returns if the victims participated in wine and whiskey investments. The court sentenced Alexander to three years of probation and ordered him to pay $202,195.58 in restitution.

    U.S. v. Mangukia – Defendants were charged in a conspiracy for falsely posing as customer service employees at a company or bank. Co-conspirators contacted a victim and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The conspirators directed the victim to make a wire transfer, convert cash to cryptocurrency at a Bitcoin ATM, and withdraw cash to purchase gold coins and bars. Defendants then traveled to Ohio to pick up the gold bars.

    U.S. v. Chaudhary – Defendants were charged as part of a conspiracy for falsely posing as customer service employees at a company or bank. Co-conspirators contacted a victim and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The conspirators directed the victim to withdraw cash and had a conspirator pick up the cash from the victim’s home.

    U.S. v. Kai – The defendant approached victims through social media to invest money into cryptocurrency. Victims were instructed to deposit their money through a “service director” affiliated with a cryptocurrency business. The service director informed the victims that deposits were to be made in person and in cash-only transactions. During one of these transactions, Kai was identified as the individual in a vehicle scheduled to take the victims’ money.

    Additionally, USAO staff conducted numerous public outreach efforts to educate the community to be aware of elder fraud scams including:

    • “Courier and Grandparent Scams,” National Consumer Protection Week Meeting
    • “Tops Scams for 2024,” St. Mary of the Woods Senior Living Community, FBI Organized Crime Conference, and Parma Snow Branch Library
    • “Elder Fraud Scams and Robocalls,” St. Mary of the Woods Independent Living
    • “Elder Fraud and Cold Calling Investment Scams,” AARP Podcast interview

    To report crimes, visit https://tips.fbi.gov/home or https://www.justice.gov/elderjustice/financial-exploitation .

    MIL Security OSI

  • MIL-OSI Security: New USAO Task Force to Target Government Contract Fraud

    Source: US FBI

    CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio is spearheading a new, interagency Supply Chain Oversight and Procurement Enforcement (SCOPE) Task Force, created in 2024, to ensure supply chain integrity and prevent procurement fraud. The task force will serve to support the work of the Government Supply Chain Investigations Unit (GSCIU), led by the Department of Homeland Security – Homeland Security Investigations (HSI), based in Washington, D.C.

    The GSCIU investigates procurement and government contract fraud in connection with military, law enforcement, and public health and safety. Examples include investigations into substandard or fraudulent vaccines or medications that are supplied to veterans through Veterans Affairs. Other investigations have focused on faulty electronics and software provided to NASA or the military supply chain, and counterfeit and faulty armor and munitions provided to law enforcement and military personnel.

    “As the first of its kind in the district, this task force brings together the USAO’s white collar crime unit, Homeland Security Investigations, and numerous other federal investigative agencies to address large-scale supply chain and procurement fraud in government contracting,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “We also must be vigilant about products entering the government supply chain stemming from prohibited sources or foreign countries of concern, which presents a national security issue that may potentially sabotage or compromise systems put in place to protect our country, our servicemen and servicewomen, and our citizens.” 

    The task force will hold its first meeting in early February. Topics of discussion will emphasize public health and safety, vaccine and medicine fraud, counterfeit goods, intellectual property theft, and national security. Regional federal agencies that have committed to the USAO-NDOH-led task force include the FBI, NASA, HSI, NCIS, Intellectual Property Rights Center, Defense Criminal Investigative Services, Air Force Office of Special Investigations, Veterans Affairs, General Services Administration, Customs and Border Protection, IRS-Criminal Investigation, U.S. ARMY, and Defense Finance Accounting Service.

    MIL Security OSI

  • MIL-OSI Security: USAO’s Organized Crime and Drug Enforcement Task Force Unit Ends 2024 with Notable Achievements

    Source: US FBI

    CLEVELAND – The Organized Crime and Drug Enforcement Task Force (OCDETF) Unit of the United States Attorney’s Office (USAO) for the Northern District of Ohio is responsible for prosecuting criminal organizations whose members violate federal laws in any of the 40 northern counties in the state of Ohio that the district serves.

    As an independent component of the U.S. Department of Justice, OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle criminal organizations using a nationwide strategy, led by prosecutors, that combines targeting, coordination, intelligence-sharing, and directed resourcing to have the greatest impact in disrupting the operations of organized crime.

    The task force approach facilitates coordination among various federal and local agencies to solve crimes, with agents and officers working side-by-side in the same location, led by a federal prosecutor. This co-located model enables agents from different agencies to share information and collaborate on intelligence-driven, multi­-jurisdictional operations to disrupt and dismantle large-scale criminal operations. Such criminal networks include all forms of transnational crime, including but not limited to drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security.  They may involve, among other illegal activity, the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Northern District of Ohio.

    In the Northern District of Ohio, agents and officers from the FBI, DEA, ATF, Homeland Security Investigations, USMS, U.S. Postal Inspection Service, Internal Revenue Service, and USBP investigate OCDETF cases with ties to the District, working with task force officers from numerous local law enforcement agencies, including the Cleveland Division of Police. Prosecutions are led by the Office of the United States Attorney for the Northern District of Ohio.

    “No one group or agency can effectively combat organized crime, and particularly transnational organized crime, while working in a silo. The OCDETF framework allows our federal investigative agents to coordinate with each other and local law enforcement, sharing both resources and intelligence,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “This model allows us to come together and build the best cases possible that put the members of large-scale criminal networks behind bars and bring their criminal operations to a halt.”

    Notable operations and cases prosecuted by the OCDETF Unit in 2024 include:

    U.S. v. Ojeda-Elenes, et al. – Four individuals, including two individuals with direct connections to the Sinaloa Cartel based in Culiacán, Mexico, were sentenced to prison for a drug conspiracy involving more than 240 pounds of fentanyl and nearly 100 pounds of cocaine.

    U.S. v. Mullins, et al. –Twenty-one members and associates of a Cleveland-based, violent street gang known as the Fully Blooded Felons were arrested and charged between December 2023 and November 2024. The defendants are alleged to have committed numerous federal crimes, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, murder in aid of racketeering, kidnapping in aid of racketeering, assault in aid of racketeering, firearms violations, conspiracy, and drug trafficking.  To date, three defendants have pled guilty.

    U.S. v. Whittaker, et al. – Fifteen people in Lorain County were charged in a 19-count indictment after authorities seized large quantities of fentanyl that included more than 42,000 fentanyl pills.

    U.S. v. Bryant, et al. According to court documents, Brandon Bryant was one of 24 members of a large-scale fentanyl trafficking organization that operated on Cleveland’s eastside between September 2019 and February 2022. He was sentenced to more than 30 years in prison after pleading guilty to conspiracy to distribute and possess with intent to distribute controlled substances, distribution of controlled substances, possession with intent to distribute controlled substances, and use of a communications facility in furtherance of a drug felony. Bryant was also ordered to serve a lifetime term of supervised release following his release from prison. The other 23 co-defendants have also been convicted and sentenced. Some of the more notable prison sentences for his co-defendants include the following: Devon Fair, 35 years; Ramel Drew, 27 years; and Branea Bryant, 24 years.

    U.S. v. Lumbus et al. Eleven people were charged in an international drug trafficking conspiracy that involved the importation of fentanyl, synthetic opioids, and synthetic cannabinoids into the United States, and the distribution of those drugs in Ohio and other states.

    To report crimes, visit https://tips.fbi.gov/home.

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  • MIL-OSI New Zealand: Kaikohe: Investigation continues into little girl’s death

    Source: New Zealand Police

    Northland Police are continuing to investigate the tragic death of a 3-year-old girl in Kaikohe on Wednesday evening.

    Police attended an address on Taraire Street where the girl was initially located unresponsive.

    “A scene examination has taken place today and will continue into tomorrow,” Detective Inspector Rhys Johnston, of Northland CIB, says.

    “These are always difficult investigations, for the whānau, community and the police themselves.”

    At this stage the circumstances are still unexplained. A post-mortem was conducted today and Police are waiting on the results.

    “The investigators are determined to uncover the full facts and have a team of 20 working on the case,” Detective Inspector Johnston says.

    “The enquiry team is supported by staff who’ve arrived from other districts given a number of serious matters being investigated.”

    Investigations into the little girl’s death will continue across the weekend.

    ENDS.

    Nicole Bremner/NZ Police

    MIL OSI New Zealand News