NewzIntel.com

Category: Finance

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

    Source: US FBI

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

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

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

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

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

    # # #

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

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

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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

    Source: US FBI

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

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

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

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

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

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

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

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

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

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

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

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  • MIL-OSI Security: Kern County Woman Sentenced to Five Years for $825,000 Credit Card Fraud Scheme Where She Used Identities Stolen From Health Care Providers

    Source: US FBI

    FRESNO, Calif. — Karina Arceo, 34, of Wasco, was sentenced to 60 months in prison and 3 years of supervised release for conspiring to commit bank fraud and committing aggravated identity theft in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced today.

    “The defendant used patient healthcare files to commit fraud and identity theft instead of treating those files with the care and sensitivity they deserve,” said U.S. Attorney Talbert. “Let this case serve as a warning those who consider abusing such access to patient files: my office will work tirelessly with the FBI and our law enforcement partners to investigate and prosecute fraud and identity theft crimes committed with sensitive patient information.”

    “Arceo violated her employer’s trust by abusing her access to personally identifiable information, fueling an elaborate, greed-driven scheme that she and her partner enjoyed until they were taken into custody,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case should serve as a reminder to all to freeze and routinely check your credit to ensure accounts are not opened without your knowledge. It is also a reminder to would-be criminals that the FBI will identify and pursue anyone who abuses a position of trust to exploit others for personal gain.”

    According to court records, from February 2016 through August 2022, Arceo and her partner and co-defendant, Miguel Leyva, stole the personally identifiable information (PII) for more than 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked.

    As part of their fraud scheme, Arceo and Leyva used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities and made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Fresno County, Kern County, the Bay Area, and elsewhere. The fraudulent purchases included home appliances, furniture, wall art, automobile accessories, designer clothing and shoes, luxury camping equipment, tickets to concerts and sporting events, and travel, among other items. Indeed, they used fraudulent purchases to remodel their home kitchen and their child’s room.

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

    Selfie of defendants celebrating after fraudulent purchase at Bed, Bath, & Beyond

    Arceo’s sentence was enhanced because text messages that she exchanged with Leyva showed that she was the leader of the scheme. Arceo would pull the stolen PII used to open the fraudulent credit cards from her cloud account and send it to Leyva. The text messages also showed that Arceo would coach Leyva on how to make the fraudulent purchases. For example, she would tell him which cashiers to target at the stores and what to say if the cashiers started asking questions. Finally, the text messages showed that Arceo used lyrics from a popular hip-hop song at the time to describe herself as being “the boss” of the scheme who “makes money move” and to Leyva as just being a “worker.”

    Leyva was previously sentenced to 65 months in prison.

    At the sentencing hearing, Arceo submitted a letter to the court that Leyva wrote from prison where he tried to minimize her role in the scheme and identified himself as being the leader. That argument was rejected by the court.

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

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  • MIL-OSI Security: Placer County Man Pleads Guilty to Child Exploitation Charges

    Source: US FBI

    SACRAMENTO, Calif. — Randy Anger, 57, of Carnelian Bay, pleaded guilty today to distribution and receipt of child pornography, United States Attorney Phillip A. Talbert announced. 

    According to court documents, in May 2021, Anger distributed and received child sexual abuse material on the Kik Messenger app while communicating with Brent Hooton.  Hooton was separately charged and convicted in the Eastern District of California with production and distribution of child pornography and was sentenced to 27 years in prison.  In November 2021, Anger also received several images of child sexual abuse material on the Wickr app.

    This case was the product of an investigation by the Federal Bureau of Investigation, with assistance by Homeland Security Investigations and the Placer County Sheriff’s Office. Assistant United States Attorney Denise N. Yasinow is prosecuting the case.

    Anger is scheduled to be sentenced on March 31, 2025, by U.S. District Judge Dale A. Drozd.  On both the distribution and receipt counts, he faces a mandatory minimum sentence of 5 years in prison and a maximum statutory penalty of 20 years in prison per count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

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  • MIL-OSI Security: Two Aryan Brotherhood Prison Gang Members Sentenced to Two Consecutive Life Terms in Prison for RICO Conspiracy and Murder in Aid of Racketeering

    Source: US FBI

    SACRAMENTO, Calif. — Ronald Yandell, 62, of Pinole, and William Sylvester, 56, of Norco, were each sentenced today by U.S. District Judge Kimberly J. Mueller to two consecutive life terms in prison for murder in aid of racketeering and various other RICO-related crimes, United States Attorney Phillip A. Talbert announced.

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

    Yandell’s murder in aid of racketeering

    According to evidence presented at trial, on August 15, 2015, two inmates carried out a brutal murder of another inmate at CSP-Sacramento on Yandell’s order.  Before the murder, Yandell offered the two inmates membership in the Aryan Brotherhood if they were able to execute the killing.  About a year after the murder, DEA intercepted calls made by Yandell over a contraband cellphone in which he bragged about directing the murder and sponsoring the killers for membership in the gang.  Yandell also directed that money earned from Aryan Brotherhood criminal activities be directed to support the two murderers.

    Sylvester’s murder in aid of racketeering

    According to evidence presented at trial, on October 7, 2001, Sylvester murdered another inmate at CSP-Sacramento to earn his membership in the Aryan Brotherhood.  In particular, Sylvester murdered the other inmate because the victim was a member of a gang that refused to recognize the Aryan Brotherhood’s authority and, as a result, members of the victim’s gang were marked for death. 

    To carry out the murder, Sylvester and another inmate used substantial planning and premeditation to carry out the attack within an extremely-restrictive prison environment. They used inmate-manufactured weapons and surprised the victim with multiple lethal stab wounds to the victim’s body. Sylvester earned membership in the gang for carrying out the killing.

    In April 2024, following a nine-week trial before, a federal jury found Yandell, Sylvester, and co-defendant Danny Troxell, 71, guilty of RICO conspiracy, conspiracy to murder, murder in aid of racketeering, and multiple counts of drug trafficking.  Troxell will be sentenced on February 18, 2025.

    Charges remain pending against one defendant, Kevin MacNamara, 44, of La Palma.

    The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

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

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  • MIL-OSI Security: Sacramento Man Sentenced to 39 Months in Prison for Using Stolen Credit Card Numbers to Buy Gift Cards

    Source: US FBI

    SACRAMENTO, Calif. — Steven Raymon Waller, 46, of Sacramento, was sentenced Tuesday by U.S. District Judge Dale A. Drozd to 39 months in prison for access device fraud. 

    According to court documents, between November 2017 and March 2019, Waller used stolen credit card numbers to buy at least $927,000 worth of gift cards from a national retailer.  

    In addition to the prison sentence, Judge Drozd ordered Waller to serve three years of supervised release and to pay $927,000 in restitution to the retailer.

    This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Nicholas M. Fogg prosecuted the case.

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  • MIL-OSI Security: South Lake Tahoe Man Indicted on 12 Counts of Wire Fraud in Cryptocurrency Trading Scam

    Source: US FBI

    SACRAMENTO, Calif. — A federal grand jury returned a 12-count indictment against Daniel Chartraw, 51, formerly of South Lake Tahoe, charging him with wire fraud, United States Attorney Phillip A. Talbert announced.  The indictment was unsealed this week after Chartraw’s arrest.

    According to court documents, Chartraw was responsible for defrauding multiple victims in a cryptocurrency investment scheme.  Chartraw claimed that his companies, Crypto-Pal LLC and TDA Global, were developing and possessed a proprietary algorithm that was capable of generating exceptional returns on cryptocurrency investments.  However, instead of investing money from his victims as he promised, Chartraw used the money to fund his personal lifestyle and travel.

    This case was the product of an investigation by the Federal Bureau of Investigations. Assistant United States Attorney Jessica Delaney is prosecuting the case.

    If convicted, Chartraw faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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  • MIL-OSI Security: U.S. Attorney’s Office Recognizes the Contributions of State, Local, and Federal Law Enforcement Partners to the Mission of the U.S. Department of Justice

    Source: US FBI

    SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert is pleased to announce the recipients of the 2023 Eastern District of California Law Enforcement Awards. These awards are presented annually to law enforcement agencies and investigators in the District’s Sacramento and Fresno divisions to recognize outstanding collaboration between federal, state, and local law enforcement in addressing public safety issues in this region.

    “Congratulations to all of our award recipients on being chosen and for their efforts to address dangerous crimes that threaten the residents of the Eastern District of California,” said U.S. Attorney Talbert. “We owe a debt of gratitude to these agencies, detectives, and agents who conduct extensive investigations to seek justice for victims and for the public. It is a privilege for our office to work alongside them to keep our communities safe.”

    Outstanding Law Enforcement Agency Awards

    The Outstanding Law Enforcement Agency Award is presented to a local or state law enforcement agency that has demonstrated outstanding professionalism, commitment to public safety partnerships, and strong support for the U.S. Attorney’s Office’s initiatives.

    The Fresno Multi-Agency Gang Enforcement Consortium (MAGEC) is the 2023 recipient of the Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Fresno Division. MAGEC received the award for two investigations. The first led to the arrest and charging of more than 25 Norteño gang members in Parlier and surrounding communities for murder, drug trafficking, gun trafficking, and witness and victim intimidation. The second led to the charging of 10 members of the MS-13 gang for six different murders committed in and around the Mendota area. MAGEC is composed of personnel from the Clovis Police Department, the Fresno Police Department, the Kerman Police Department, the Kingsburg Police Department. the Parlier Police Department, the Sanger Police Department, the Selma Police Department. the Fresno County Sheriff’s Office, the California Highway Patrol, and the Fresno County District Attorney’s Office, working in partnership with the California Department of Corrections and Rehabilitation, the Fresno County Probation, the California Department of Justice’s Special Operations Unit, Homeland Security Investigations, DEA, ATF, and FBI. MAGEC demonstrates our shared commitment to keeping our communities safe from violent criminal gangs through teamwork among federal, state, and local law enforcement partners.

    The Sacramento Hi-Tech Crimes / Internet Crimes Against Children (ICAC) Task Force is the 2023 recipient of Eastern District of California Law Enforcement Award for Outstanding Law Enforcement Agency in the Sacramento Division. The ICAC Task Force received the award for investigations that led to the successful charging and prosecution of some of the Sacramento region’s most serious sexual offenders in 2023, including multiple defendants who produced child pornography and sexually abused minors. Those defendants included a physician, a nurse practitioner, and an adoptive and foster father who sought to sexually exploit young children. The ICAC Task Force is composed of personnel from the El Dorado County District Attorney’s Office, the Placer County Sheriff’s Office, the Sacramento County Sheriff’s Office, the San Joaquin County Sheriff’s Office, the Citrus Heights Police Department, the Elk Grove Police Department, the Folsom Police Department, the Rocklin Police Department, the Tracy Police Department, the Sacramento Police Department, the California Department of Justice, the California Highway Patrol, and the California Department of Corrections and Rehabilitation, as well as from Homeland Security Investigations and the FBI. The ICAC Task Force exemplifies commitment to protect the most vulnerable in our community by thoroughly investigating internet-facilitated crimes against children.

    Outstanding Individual Awards

    The Outstanding Investigator and Outstanding Federal Agent awards are presented to local, state, and federal law enforcement officers who have demonstrated outstanding professionalism; timely, thorough, quality investigations; exceptional knowledge and investigative skill; energy and commitment to public safety; and commitment to law enforcement partnerships and teamwork.

    The Outstanding Investigator award for the Sacramento Division was given to Yuba County Sheriff’s Office Peace Officer Sixto Torres for his work as a DEA Task Force Officer on Operation Splazh Down, an investigation into a large-scale, poly-drug distribution organization in the Sacramento Area. During Operation Splazh Down, TFO Torres identified the leadership structure of a drug trafficking organization. As a result of his efforts and that of his team, DEA seized more than 500 pounds of methamphetamine and large amounts of cocaine, fentanyl, heroine, and firearms. Torres dedicates exceptional energy to his investigations and consistently exemplifies professionalism and service before self.

    The Outstanding Investigator award for the Fresno Division was given to Fresno County Sheriff’s Office Sergeant Scott Schwamb for his work with the Internet Crimes Against Children Task Force. One case where Schwamb was the lead investigator culminated in a 21‑year prison sentence for the defendant. That case began when Schwamb received information that hidden cameras were recording a minor in her bedroom and bathroom. Despite having already worked a full shift, Schwamb reviewed the evidence and assembled an investigative team that evening and applied for a search warrant. By early the next morning, evidence had been collected at the suspect’s home and work and the suspect had been interviewed. Schwamb continued to work on the case by preparing for trial and was the prosecution’s key law enforcement witness at trial. While working on the Task Force, Schwamb has assisted in the investigation of hundreds of leads involving child sexual exploitation, and as a result, dozens of cases have been prosecuted by the U.S. Attorney’s Office and the Fresno County District Attorney’s Office.

    The Outstanding Federal Agent award for the Sacramento Division was given to FBI Special Agent Jessi Groff for her work as a member of FBI’s international terrorism squad. She has led the investigations into some of the most important cases in the District, using her unique ability to master details of a case while never losing sight of the big picture. Her work is often unheralded and tedious, yet Special Agent Groff maintains a positive demeanor and attitude. Throughout her years of service, she has become a bedrock of federal law enforcement.

    The Outstanding Federal Agent award for the Fresno Division was given to Homeland Security Investigations Special Agent Jackie Lovato for his work on the Fentanyl Overdose Resolution Team (FORT). Agent Lovato has spearheaded the investigation into dozens of fentanyl traffickers in the Central Valley, including some who caused overdose injuries and deaths. One of his cases led to charges against 20 fentanyl and cocaine traffickers, including the self‑proclaimed counterfeit M-30 fentanyl “King of Fresno.” Special Agent Lovato has also offered support to overdose victims and their families and played a key role in educating the public about the dangers of fentanyl in schools, hospitals, law enforcement agencies, and other organizations.

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  • MIL-OSI Security: Mexican National Sentenced to 12 Years in Prison for Methamphetamine Trafficking

    Source: US FBI

    SACRAMENTO, Calif. — Orlando Torres Angulo, 30, of Mexico, was sentenced by U.S. District Judge Kimberly J. Mueller to 12 years in prison for conspiracy to distribute methamphetamine, two counts of distributing methamphetamine, and use of a cellphone in aid of racketeering, Acting U.S. Attorney Michele Beckwith announced.

    According to court documents, in February 2021, Torres Angulo conspired with other individuals in both Mexico and California to distribute methamphetamine in pound quantities. Torres Angulo arranged for the delivery of 4 pounds of methamphetamine to a customer, who was in fact an undercover officer in Fresno. Torres Angulo later delivered another 2 pounds of methamphetamine to the undercover officer in Roseville. While discussing this deal, Torres Angulo told the undercover officer that he would set aside 15 pounds of methamphetamine if the undercover officer came to his place in Tulare. Torres Angulo then helped coordinate a third deal for 10 pounds of methamphetamine in Terra Bella.

    This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, Homeland Security Investigations, and the Tri-County Drug Enforcement Team (TRIDENT). Assistant U.S. Attorney David W. Spencer prosecuted the case.

    This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.

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  • MIL-OSI Security: Georgian National and Son Charged with Laundering More Than $500,000 They Believed to Be Drug Cartel Proceeds

    Source: US FBI

    Defendant Yohanan Eligoola Also Attempted to Sell Surface-to-Air Missiles to People He Believed Were Acting on Behalf of the Cartel

    Damian Williams, the United States Attorney for the Southern District of New York, and Spencer L. Evans, the Special Agent in Charge of the Las Vegas Field Office of the Federal Bureau of Investigation (“FBI”), announced the arrest of YOHANAN ELIGOOLA and DAVID ELIGOOLA in connection with a conspiracy to launder money that the defendants believed to be narcotics proceeds.  The individuals who purported to be operatives of a narcotics cartel were in fact undercover law enforcement officers (the “Undercover Agents”), and YOHANAN ELIGOOLA also attempted to sell those individuals various weapons, including surface-to-air missiles.  YOHANAN ELIGOOLA was arrested on April 15, 2024, in New York, New York, and presented yesterday before U.S. Magistrate Judge Katharine H. Parker in the Southern District of New York.  DAVID ELIGOOLA was arrested yesterday in Miami, Florida, and presented before a U.S. Magistrate Judge in the Southern District of Florida.

    U.S. Attorney Damian Williams said: “As alleged, Yohanan Eligoola worked with individuals he believed to be representing a drug cartel to launder hundreds of thousands of dollars and to sell them deadly weapons, including surface-to-air missiles.  Unbeknownst to him, those cartel members were in fact undercover FBI agents.  Our law enforcement partners and the career prosecutors of this Office work relentlessly to disrupt dangerous criminal activity.”

    FBI Special Agent in Charge Spencer L. Evans said: “FBI Las Vegas would like to thank our partners at the SDNY U.S. Attorney’s Office, FBI New York, and FBI Miami for their diligent work leading to these arrests.  We are committed to working collaboratively and utilizing our partnerships to combat organized crime groups to stem the illegal flow of weapons that endangers U.S. national security.”

    As alleged in the Complaints:[1]

    The Undercover Agents represented to YOHANAN ELIGOOLA that they worked for a drug cartel, and YOHANAN ELIGOOLA arranged to launder their narcotics proceeds.  Over the course of 2023, YOHANAN ELIGOOLA, DAVID ELIGOOLA — YOHANAN ELIGOOLA’s son — or their co-conspirators received large quantities of cash from the Undercover Agents on five separate occasions.  In total, they received more than $500,000 in cash, and returned all of it — minus their fee — back to the Undercover Agents in the form of laundered cryptocurrency and bank wires.

    YOHANAN ELIGOOLA informed the Undercover Agents that he could launder up to $1 million in cash per day on behalf of the cartel and that “the bank will never ask you a question” when YOHANAN ELIGOOLA transferred the laundered funds back to them.

    Before he had received any money from the Undercover Agents, YOHANAN ELIGOOLA asked one of them if the money was “from drugs.”  The Undercover Agents told him that it was and that they were “dealing with Colombians.”

    YOHANAN ELIGOOLA also offered to sell the Undercover Agents various munitions and bragged that he controlled a large fraction of the defense industry in a particular country.  YOHANAN ELIGOOLA further claimed that he marked up munitions he sold by approximately 500% because they were “black market.”  The Undercover Agents informed YOHANAN ELIGOOLA that they “have issues with aircraft,” referred to “the fucking helicopters,” and asked for “stingers.”  Because the Undercover Agents represented that they worked for a drug cartel, the Undercover Agents meant that government helicopters had been interdicting the operations of the cartel, and the Undercover Agents wanted Stinger missiles — which are man-portable surface-to-air missile systems that are effective in shooting down helicopters — in order to shoot down those helicopters. 

    YOHANAN ELIGOOLA asked the Undercover Agents to send him a list of the type of munitions they wanted to purchase and offered to let the Undercover Agents visit him in other countries to see the munitions firsthand.

    The Undercover Agents subsequently requested a number of weapons, including rifles, grenades, rocket-propelled grenades, anti-tank weapons, suicide drones, and Stinger missiles.  YOHANAN ELIGOOLA responded that he could provide most of those weapons and listed the prices he would charge.  As to the Stinger missiles, YOHANAN ELIGOOLA offered FN-6 and FN-16 man-portable surface-to-air missile systems as alternatives.

    On April 15, 2024, the Undercover Agents met with YOHANAN ELIGOOLA at a restaurant in New York, New York, in order to make a down payment on the surface-to-air missiles.  The Undercover Agents provided YOHANAN ELIGOOLA with $690,000 in cash as a down payment for approximately eight such missiles.  YOHANAN ELIGOOLA was then arrested by the FBI.

    *                *                *

    YOHANAN ELIGOOLA, 58, of the nation of Georgia, and DAVID ELIGOOLA, 34, of Hallandale Beach, Florida, are each charged with conspiracy to launder money, which carries a maximum sentence of 20 years in prison. 

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

    Mr. Williams praised the outstanding work of the FBI.

    The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Micah Fergenson and Kevin Mead are in charge of the prosecution.

    The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    [1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.

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  • MIL-OSI China: Global Trade and Investment Promotion Summit 2025: A snapshot of Beijing Initiative

    Source: People’s Republic of China – State Council News

    Editor’s note: Global business and trade leaders on Thursday came together at the Global Trade and Investment Promotion Summit 2025 to launch a Beijing Initiative, calling for further cooperation in the digital era to drive global growth and shared prosperity. Here, China.org.cn walks you through the highlights of the initiative.

    .

    MIL OSI China News –

  • MIL-OSI Security: Greene County Man Sentenced to Nine Years in Prison for Distribution, Receipt, and Possession of Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Drew Caswell, age 26, of Cairo, New York, was sentenced today to 9 years in prison for distribution, receipt, and possession of child pornography.  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 New York State Police (NYSP) Superintendent Steven G. James made the announcement.

    As part of his previous guilty plea, Caswell admitted that he used a file-hosting service to download child pornography and then distributed multiple image and video files of child pornography by publicly posting them to a social media site.  Caswell also admitted that on August 7, 2023, he possessed child pornography on his cell phone, including nearly 300 images and videos of toddlers and infants being sexually abused.

    United States District Judge Anne M. Nardacci also ordered that Caswell serve a 20-year term of post-incarceration supervised release.  Caswell will be required to register as a sex offender after his release from prison.

    The FBI and its Child Exploitation Task Force—which includes members of federal, state, and local law enforcement agencies, including Troop F of the New York State Police and its Computer Crimes Unit—investigated the case. Assistant U.S. Attorney Mikayla Espinosa prosecuted the case as part of Project Safe Childhood.

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

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  • MIL-OSI Security: Umar Koon Sentenced to Prison on Federal Drug Charge

    Source: US FBI

    Burlington, Vermont – The United States Attorney’s Office stated that Umar Koon, 46, of The Bronx, New York, was sentenced today in United States District Court in Burlington, to six months of imprisonment following his guilty plea to a charge that he possessed fentanyl, cocaine base and cocaine with intent to distribute. United States District Judge William K. Sessions III ordered that Koon serve three years of supervised release following completion of his prison term. The court ordered Koon to surrender to the Bureau of Prisons on January 21, 2025 to begin serving his sentence.

    According to court records, the Northwestern Vermont Drug Task Force and the Federal Bureau of Investigation began an investigation of Koon in the summer of 2023 after obtaining information that Koon was selling fentanyl in the Chittenden County area. Between September and November 2023, investigators, utilizing a confidential informant, made seven controlled purchases of fentanyl and cocaine base from Koon. Investigators arrested Koon on November 14 after he returned to Burlington from New York City on a bus. Agents seized a suitcase Koon was carrying, obtained a state warrant to search the bag, and recovered distribution quantities of cocaine, cocaine base and fentanyl. They also seized $1500 in cash from Koon’s person.

    Koon was held without bail on state drug charges until December 6, 2023 when he was released to live in New York City. On December 7, 2023, a federal grand jury returned an indictment charging Koon with seven counts of distributing narcotics and one count of possessing other narcotics with intent to distribute. Federal agents arrested Koon at his home in The Bronx on December 12. The State of Vermont has dismissed its case in favor of this federal prosecution.

    Koon is represented by Mark Kaplan, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.

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  • MIL-OSI Security: Former Rensselaer County Elections Commissioner Sentenced for Identity Theft

    Source: US FBI

    ALBANY, NEW YORK – Jason Schofield, age 45, of Troy, New York, was sentenced today to 1 year of probation, and to pay a $2,000 fine and a $1,200 special assessment, for unlawfully using the names and dates of birth of voters to fraudulently apply for absentee ballots for elections held in Rensselaer County in 2021. 

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

    Schofield was an Elections Commissioner at the Rensselaer County Board of Elections (“RCBOE”) from April 2018 until December 2022, when he resigned in anticipation of his guilty plea.

    In pleading guilty to a 12-count indictment, Schofield admitted that in 2021, he unlawfully possessed and used the names and dates of birth of voters in connection with 12 absentee ballot applications he submitted in the voters’ names to the New York State Voter Absentee Ballot Application Request Portal. 

    Schofield admitted that for each application, he falsely certified that he was the voter requesting the ballot.  He also admitted that he took personal possession of 9 of these ballots, while knowing and intending that RCBOE records would falsely reflect that the ballots had been mailed to the voters. 

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

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  • MIL-OSI Security: Pennsylvania Man Arrested After Driving to Albany for Planned Sexual Abuse of Minor

    Source: US FBI

    ALBANY, NEW YORK – David Gruber, age 39, of Chadds Ford, Pennsylvania, was arrested last week and charged with traveling across state lines to the Capital Region with the intent to engage in illicit sexual conduct with a minor. 

    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 New York State Police Superintendent Steven G. James made the announcement.

    According to a criminal complaint, in November 2024 Gruber began communicating with an individual to discuss and plan his sexual abuse of a person he believed to be a 9-year-old child residing in Albany County, New York.  Gruber planned to drive from Pennsylvania to Albany County and pay $300 in order to sexually abuse the person he believed to be a child.  On December 5, 2024, Gruber was arrested after arriving in Albany at a prearranged meeting location. Gruber had $460 in cash on him at the time of his arrest. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

    Gruber initially appeared before United States Magistrate Judge Daniel J. Stewart on December 6 and was ordered detained.  He faces a maximum term of 30 years in prison, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender.  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.

    FBI and the New York State Police are investigating the case. Assistant United States Attorney Matthew M. Paulbeck is prosecuting the case as part of Project Safe Childhood.

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

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  • MIL-OSI Security: Albany Man Sentenced for Trafficking Cocaine and Marijuana

    Source: US FBI

    ALBANY, NEW YORK – Brian Scott, age 44, of Albany, was sentenced today to 10 years in prison, to be followed by 5 years of supervised release, for conspiring to distribute at least 5 kilograms of cocaine and 100 kilograms of marijuana, and for distributing cocaine.

    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); New York State Police Superintendent Steven G. James; and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

    As part of his previously entered guilty plea, Scott admitted that between June 2020 and October 2023, he was a member of a drug trafficking organization that trafficked cocaine and marijuana in the Capital Region and the North Country. Scott admitted that he and a co-conspirator routinely sent drug couriers, whom they referred to as “horses,” between the Capital Region and the North Country to transport cocaine to the North Country and marijuana to the Capital Region. Scott also admitted that he trafficked at least 7 kilograms of cocaine, which he obtained from another co-conspirator, and that he sold over 400 grams of cocaine to another person.

    Scott was also ordered to forfeit $4,865 in seized drug money and to pay a forfeiture money judgment in the amount of $17,180.

    FBI, New York State Police, and HSI investigated the case, which was prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Joseph Hartunian.

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  • MIL-OSI Security: North Carolina Man Pleads Guilty to His Role in Scheme That Defrauded Hundreds of Companies Out of Millions of Dollars

    Source: US FBI

    ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Nicholas Scarantino, 30, of North Carolina, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to commit mail fraud, which carries a maximum penalty of 20 years in prison and a $250,000 fine.

    Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that Scarantino owned Direct Chemicals in the State of California. Between July and November 2021, he and others mailed thousands of fictitious invoices in the name of Direct Chemicals to victim companies located all over the United States. Approximately 873 victim companies were tricked and defrauded into paying these fictitious invoices, totaling of approximately $861,268.66. Several companies in the Western District of New York were victimized. The companies are located in Henrietta, Lakewood, Brockport, Andover, Rochester, Avon, Tonawanda, and Niagara Falls.

    The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Postal Inspection Service, under the direction of Inspector in Charge Ketty Larco-Ward, Boston Division, and the Internal Revenue Service-Criminal Investigations, under the direction of Special Agent-in-Charge Thomas M. Fattorusso.

    Sentencing is scheduled for March 17, 2025, before Judge Wolford.

    # # # #

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  • MIL-OSI Security: Falconer Woman Pleads Guilty to Sex Trafficking and Drug Charges

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Cora Waddington, 25, of Falconer, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl and 50 grams or more of methamphetamine, and benefitting financially from trafficking in persons. The charges carry a mandatory minimum penalty of five years in prison and a maximum of life.

    Assistant U.S. Attorneys Joshua A. Violanti and Maeve E. Huggins, who are handling the case, stated that between October and December 2022, Waddington conspired with Zaid Mendoza a/k/a Diamond, and Kelvin O. Thomas to conduct a sex trafficking operation utilizing two victims with drug addictions. Waddington, Mendoza, and Thomas provided shelter to the victims at a W. Main Street residence in Falconer, and provided them with food, clothing, and daily quantities of heroin and fentanyl in exchange for their performance of commercial sex acts for money. The proceeds went to Mendoza who then provided clothes, food, spending money, heroin, and methamphetamine to Waddington. The victims, through force and threats of force, performed commercial sex acts at both “in calls” at the W. Main Street residence, and “out calls.” Waddington transported the victims to “out calls.” Waddington, Mendoza, and Thomas utilized the website Skipthegames.com to entice customers for their sex trafficking scheme.

    Waddington was also an organizer, leader, manager, and supervisor in Mendoza’s drug trafficking operation. She provided heroin and fentanyl, and methamphetamine to the victims, as well as Mendoza’s other drug customers. In October 2022, law enforcement stopped Waddington’s vehicle, which included Mendoza as a passenger. Waddington had an outstanding warrant and was arrested. Officers recovered methamphetamine on her person, as well as a bag of fentanyl on Mendoza’s person. On December 7, 2022, a search warrant was executed at the West Main Street residence, during which cash, drug paraphernalia, a semi-automatic pistol, and multiple plastic bags of narcotics were recovered.

    The plea is the result of an investigation by the Jamestown Police Department Metro Drug Task Force, under the direction of Chief Timothy Jackson; the Chautauqua County Sheriff’s Office County Drug Task Force, under the direction of Sheriff James Quattrone; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; Homeland Security Investigations, under the direction of Special Agent-in-Charge Erin Keegan; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarantino III, New York Field Division; and the Town of Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.

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

    This investigation is also assisted by the Western New York Human Trafficking Task Force, a multi-disciplinary task force that brings law enforcement and social service agencies together to identify and investigate human trafficking utilizing a victim centered and trauma informed response, was also part of this effort.

    Sentencing is scheduled for May 13, 2025, before Judge Sinatra.

    # # # #

     

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  • MIL-OSI Security: Buffalo Man Sentenced for His Role in Narcotics Conspiracy Which Resulted in a Triple Homicide

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that James Reed a/k/a Fatts,  42, of Buffalo, NY, who was convicted of narcotics conspiracy, conspiracy to obstruct justice, use of fire to commit a felony, and accessory after the fact, was sentenced to serve 166 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.

    Assistant U.S. Attorneys Michael J. Adler, Maeve E. Huggins, and Joseph M. Tripi, who handled the case, stated that beginning in 2014, Reed, and others, began receiving and selling marijuana, heroin, and cocaine. Reed, and his co-conspirators utilized 973 Fillmore Avenue to store, package, and sell the illegal narcotics. In furtherance of the narcotics conspiracy, on September 15, 2019, Reed accompanied co-defendant Jariel Cobb to purchase a kilogram of cocaine from Miguel Anthony Valentin-Colon and Dhamyl Roman-Audiffred, who served as Cobb’s sources of supply. Valentin-Colon, along with his wife. Nicole Marie Merced-Plaud, their minor son, and Roman-Audiffred, arrived in their vehicle, a white minivan, at a residence on Roebling Avenue, as directed by Cobb. Roman-Audiffred exited the van and entered the residence’s kitchen, at which time co-defendant Deandre Wilson hit her in the head with a blunt object and she fell to the floor. Wilson then went outside and shot and killed both Valentin-Colon and Merced Plaud, in the presence of their minor son, who was seated in a child’s car seat. Wilson then drove the minivan and parked it on Scajaquada Street near Kilhoffer Street in Buffalo.

    A short time later, Reed and Cobb moved the body of Dhamyl Roman-Audiffred from the kitchen into the residence’s basement, where they dismembered her body. Cobb placed the body parts into multiple trash bags and placed them into the trunk of his vehicle, and then Cobb and Reed drove to a residence on Box Avenue, removed the trash bags, and placed them into a burning fire in a fire pit area in the backyard.

    The following day, during the early morning hours of September 16, 2019, Cobb and Wilson retrieved the minivan from Scajaquada Street, with the bodies of Miguel Valentin-Colon and Nicole Marie Merced-Plaud still inside, as well as their minor son. They drove the minivan into the yard of a residence on Tonawanda Street and doused the vehicle and the bodies with gasoline, lighting the vehicle and bodies on fire. They took the minor child and left him on a stranger’s porch on Potomac Avenue in Buffalo.

    James Cobb and Deandre Wilson were previously convicted. Cobb was sentenced to serve 20 years in prison, while Wilson was sentenced to serve three life sentences.

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

    The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia; the Erie County Central Police Services Forensic Laboratory, under the direction of Commissioner James Jancewicz. Additional assistance was provided by the Erie County District Attorney’s Office, under the direction of District Attorney Michael Keane.

    # # # # 

     

    MIL Security OSI –

  • MIL-OSI Security: Twenty-Five Metropolitan Detention Center Inmates, Their Associates and a Former Correctional Officer—Charged in a Dozen Criminal Cases at the Federal Jail in Brooklyn

    Source: US FBI

    Charges Include a Range of Violent Assaults and Contraband Smuggling in Continued Effort by Law Enforcement to Combat Crime Inside the Prison

    Today the United States Attorney’s Office for the Eastern District of New York announced criminal charges against 25 defendants in 12 separate cases relating to violence and contraband smuggling at the Metropolitan Detention Center (MDC-Brooklyn) in Sunset Park, Brooklyn. These include charges against 15 inmates for violent assaults against other inmates from May 2024 to the present; a former correctional officer for attempting to smuggle contraband into the facility on January 21, 2025; an inmate for orchestrating a contraband smuggling operation between April and June 2024; an inmate for smuggling ceramic scalpels into the facility on October 12, 2024; an inmate for possession of contraband and continuing to commit fraud while detained at MDC-Brooklyn; and an MS-13 gang associate for attempting to smuggle a large package of contraband, including 18 cellphones and marijuana, to other MS-13 gang members incarcerated at MDC-Brooklyn.

    Previously, nine inmates at MDC-Brooklyn were charged by the Office in September 2024 for violence and contraband smuggling.  In addition, the Office, in conjunction with the United States Attorney’s Office for the Southern District of New York (USAO-SDNY) and more than a dozen law enforcement partners, assisted in October 2024 with a week-long multi-agency operation aimed at detecting and seizing contraband from MDC-Brooklyn.

    John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Kathleen Toomey, Associate Deputy Director, Federal Bureau of Prisons, announced the charges.

    “The safety and security of our federal detention facilities is paramount,” stated United States Attorney Durham.  “As alleged, in several separate charging instruments, inmates viciously attacked fellow detainees, a correctional officer betrayed his duty by attempting to smuggle drugs into the facility, several inmates orchestrated elaborate contraband smuggling operations and yet another inmate continued to engage in fraud schemes while detained.  These actions undermine the order and security of MDC-Brooklyn and endanger everyone within its walls.  My Office is working tirelessly to hold accountable those who commit violent acts or introduce contraband into the prison, whether they are inmates or staff.  These charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be uncovered, and you will be held accountable.”

    Mr. Durham thanked the U.S. Bureau of Prisons and the FBI New York Field Office for their investigative work in these cases, as well as the United States Attorney’s Office for the Southern District of New York and the Department of Justice, Office of Inspector General for their assistance.

    “These 25 defendants, an array of inmates and a former correctional officer, allegedly committed numerous violent attacks against fellow inmates and orchestrated various schemes to smuggle contraband into the prison,” stated FBI Acting Assistant Director in Charge Backschies. “These cases reflect the alleged extreme disregard for adhering to the rules designed to protect the other inmates and correctional staff within the institution. The FBI will never tolerate any individual, regardless of their incarceration status, who engages in deviant behavior that threatens the safety and stability of our federal facilities.

    “The Federal Bureau of Prisons would like to thank the FBI and the EDNY for their partnership and support to further prevent and prosecute violence and contraband in our facilities, through our unified efforts we are making our facilities safer for our employees and those in our custody,” stated Federal Bureau of Prisons Associate Deputy Director Toomey.   

    A summary of the cases follows:

    U.S. v. Mike Josie

    Mike Josie has been charged by indictment with assault in a federal detention facility in connection with his participation in an assault of another inmate at MDC-Brooklyn on May 26, 2024.  As alleged, Josie brutally attacked another inmate in his housing unit who was sitting at a table in a common area of the unit.  Josie approached the victim from behind and made several slashing motions towards the victim’s face.  After the assault, the victim was taken to a nearby hospital to treat lacerations to his neck and face. If convicted, Josie faces up to10 years in prison.  Josie is scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Assistant United States Attorney Sean Fern is in charge of the prosecution.

    U.S. v. Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez

    Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez are charged by complaint with conspiracy to smuggle contraband into MDC-Brooklyn.  As alleged, between April and June 2024, Campbell used a contraband cell phone to conspire with others to smuggle contraband into MDC-Brooklyn.  In several voice recordings found on the phone, Campbell explained his method of throwing a “line” out of a window of MDC-Brooklyn for a co-conspirator on the outside to “hook” or attach contraband, which could then be pulled back inside.  On June 30, 2024, Diez, Guerrero, Mora, and Rodriguez attempted to execute Campbell’s scheme by pulling a rope through the window of the recreation room in their housing area.  At the other end of that rope, correctional officers found what appeared to be suboxone, marijuana, a scalpel, a phone charger, lighters, and cigarettes.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorneys Russell Noble and Elizabeth D’Antonio are in charge of the prosecution.

    U.S. v. Sean Smith, Rasheed Chapman and Antwan Mosley

    Sean Smith, Rasheed Chapman and Antwan Mosley have been indicted by a grand jury for the June 2, 2024 assault of another inmate at MDC-Brooklyn.  The defendants violently assaulted the victim, slashing him across the face and neck and causing serious lacerations.  The victim was then chased through the housing unit and struck repeatedly by his assailants. If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Kamil Ammari is in charge of the prosecution.

    U.S. v. Adil Duran

    Adil Duran has been charged in an indictment with assault with a dangerous weapon, assault resulting in serious bodily injury and possessing contraband in prison.  As captured on video surveillance footage, on July 11, 2024, Duran slashed another inmate in the face and neck with a sharpened weapon, causing serious lacerations that required sutures.  If convicted, Duran faces up to 20 years in prison.  Assistant United States Attorney Kate Mathews is in charge of the prosecution.

    U.S. v. Erik Steadman and Javaughn Horton

    Erik Steadman and Javaughn Horton have been charged by complaint with assault in a federal detention facility for the September 5, 2024 assault of another inmate at MDC-Brooklyn.  As alleged, Horton and Steadman approached another inmate in their unit and began punching him repeatedly in the face until he fell to the ground.  The defendants continued punching and kicking the victim in the face, causing a significant laceration to his face.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Molly Delaney is in charge of the prosecution.

    U.S. v. Angel Villafane

    Angel Villafane, a member of the gang Valentine Avenue Crew, has been indicted for possession of 21 ceramic scalpels smuggled into MDC-Brooklyn on October 12, 2024.  As alleged, while sitting in the visiting room at MDC-Brooklyn, Villafane removed a ball full of ceramic scalpels from a bag of Doritos chips and placed them in his shirt.  Correctional officers later discovered the scalpels during a search.  If convicted, the defendant faces up to five years in prison. Department of Justice Trial Attorney Margaret P. Mortimer is in charge of the prosecution.

    U.S. v. Juan Lopez and Jose Rivera

    Juan Lopez and Jose Rivera have been indicted for assaulting another inmate and possessing contraband weapons.  As alleged, on November 11, 2024, Lopez and Rivera slashed and stabbed another inmate in their housing unit.  The victim was seated at a table when Rivera snuck up behind him and slashed him multiple times in the head and neck with a sharp object. As the victim ran to seek help, Lopez tried to prevent him from reaching the correctional officers’ station by swinging his own weapon, stabbing the victim in the arm.  The victim suffered three lacerations to the back of his head, one laceration to his neck and a puncture wound to his forearm.  If convicted, the defendants face up to 15 years in prison.  Assistant United States Attorney Russell Noble is in charge of the prosecution.

    U.S. v. Tyquan Robinson

    Tyquan Robinson has been charged in a five-count superseding indictment with conspiracy to commit wire and bank fraud, conspiracy to commit wire fraud, bank fraud, aggravated identity theft and possession of contraband in prison.  Robinson was originally detained at MDC-Brooklyn for his alleged role in defrauding a court-appointed criminal defense attorney by obtaining a stolen $125,000 Treasury check issued to the attorney as payment for representing indigent defendants and stealing his identity.  In October 2024, officers at the MDC performed a search of Robinson’s cell. Inside his locker, the officers discovered that Robinson had hidden a contraband cellphone inside of a box of Raisin Bran cereal. An examination of this contraband cellphone revealed that even while incarcerated at the MDC, Robinson was participating in a separate fraud scheme from his original charges by discussing stealing checks issued to others, opening multiple bank accounts, and exchanging third parties’ personally identifiable information.  If convicted, Robinson faces up to 30 years in prison.  Assistant United States Attorney James R. Simmons is in charge of the prosecution with the assistance of Special Agent Anthony Cunder.

    U.S. v. Jairon Ortega-Corea

    Jairon Ortega-Corea, an MS-13 gang associate, was charged by indictment with attempting to provide contraband to inmates at MDC-Brooklyn.  He was arrested on March 3, 2025 in Minnesota.  The charges stem from the December 2, 2024 discovery, by MDC-Brooklyn employees, of a package on the fourth-floor roof of the jail containing 18 cellular telephones, approximately 345 grams of marijuana and one liter of drinking alcohol, among other items.  The prior evening, a witness had observed the attempted smuggling of the package into MDC-Brooklyn, when it was pulled up by a rope dangled out of the window of an empty cell within the unit that houses MS-13 members.  An investigation subsequently revealed that the defendant, who is related to a high-ranking MS-13 member housed at MDC-Brooklyn, purchased several of the contraband items at a local Walmart the day prior to the discovery.  At the time of the purchase, Ortega-Corea was communicating with MS-13 inmates at MDC-Brooklyn who were using a different contraband phone.  If convicted, Ortega-Corea faces up to 20 years in prison.  Assistant United States Attorneys Megan E. Farrell, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.

    U.S. v. Najee Jackson

    Najee Jackson, a former correctional officer at MDC-Brooklyn, has been indicted by a grand jury for attempting to smuggle contraband into the facility.  On January 21, 2025, Jackson, who was employed as a correctional officer, arrived at MDC-Brooklyn to begin working a night shift. After making several failed attempts to clear the metal detector in the staff screening area, Jackson removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana and cigarettes. Jackson resigned from the Bureau of Prisons two days later.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorneys Turner Buford and Russell Noble are in charge of the prosecution.

    U.S. v. Devone Thomas

    Devone Thomas, who was previously charged with the June 7, 2024 killing of Uriel Whyte inside of the MDC Brooklyn, is now additionally charged by complaint with possession of a contraband weapon.  On February 28, 2025, Thomas was transported to federal court in Brooklyn for a status conference in connection with his murder case. Upon his return to MDC-Brooklyn after the court appearance, a blade was found in Thomas’s groin area.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorney Elizabeth D’Antonio is in charge of the prosecution.

    U.S. v. Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez and Elvis Trejo

    Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez, and Elvis Trejo have been charged by complaint with assault in a federal detention facility for their roles in what became a unit-wide fight between inmates at MDC-Brooklyn. As alleged, on February 22, 2025, Castro, Lopez, Nunez, Rodriguez and Trejo, along with other as-yet uncharged individuals, approached another inmate in their unit, armed with weapons, and began chasing and stabbing him.  The victim was stabbed 18 times and required hospitalization for his injuries. The brawl ultimately resulted in at least five inmates, including the victim, requiring transportation to a local hospital for further treatment.  Gillespie, who was not a part of the initial group attacking the victim, joined the brawl after it began, and, also armed with a weapon, assaulted a fellow inmate in the course of the fight.  The fight resulted in more than 20 inmates requiring medical assessments, and at least 10 inmates appeared to have wounds consistent with being stabbed or slashed.  If convicted, each defendant faces up to 10 years in prison.  Assistant United States Attorney Stephen Petraeus is in charge of the prosecution.

    *          *          *

    The Office’s General Crimes Section is principally responsible for handling these cases, with substantial contributions from the Public Integrity Section, the Organized Crime and Gangs Section and the Office’s Long Island Criminal Section.  In addition to the Assistant United States Attorneys and Special Agent listed above, Special Agent Danielle Williams, Law Enforcement Coordinator Specialist Herbert Martin and Paralegal Specialists Matias Burdman and Erin Payne have provided substantial support on these cases.

    The charges in the indictments and complaints described above are allegations, and the defendants are presumed innocent unless and until proven guilty.

    The Defendants:

    MIKE JOSIE
    Age: 25

    E.D.N.Y. Docket No. 25-CR-76 (FB)

    ————–

    DARYL CAMPBELL
    Age: 39

    IAN DIEZ
    Age: 20

    JONATHAN GUERRERO
    Age: 34

    ABEL MORA
    Age: 23

    MAYOVANEX RODRIGUEZ
    Age: 30

    E.D.N.Y. Docket No. 25-MJ-72

    ————–

    SEAN SMITH
    Age: 34

    RASHEED CHAPMAN
    Age: 21

    ANTWAN MOSLEY
    Age: 23

    E.D.N.Y. Docket No. 25-CR-58

    ————–

    ADIL DURAN
    Age: 23

    E.D.N.Y. Docket No. 25-CR-9 (ARR)

    ————–

    ERIK STEADMAN
    Age: 24

    JAVAUGHN HORTON
    Age: 30

    E.D.N.Y. Docket No. 25-MJ-70

    ————–

    ANGEL VILLAFANE
    Age: 40

    E.D.N.Y. Docket No. 25-CR-71 (HG)

    ————–

    JUAN LOPEZ
    Age: 26

    JOSE RIVERA
    Age: 20

    E.D.N.Y. Docket No. 25-CR-72 (CBA)

    ————–

    TYQUAN ROBINSON
    Age: 30

    E.D.N.Y. Docket No. 24-CR-51 (AMD)

    ————–

    JAIRON ORTEGA-COREA
    Age: 23

    E.D.N.Y. Docket No. 25-CR-83

    ————–

    NAJEE JACKSON
    Age: 32

    E.D.N.Y. Docket No. 25-CR-67 (OEM)

    ————–

    DEVONE THOMAS
    Age: 25

    E.D.N.Y. Docket No. 24-CR-360 (EK)

    ————–

    BRIAN CASTRO
    Age: 24

    FRANKLIN GILLESPIE
    Age: 34

    JUAN LOPEZ
    Age: 68

    JOWENKY NUNEZ JR.
    Age: 22

    HUGO RODRIGUEZ
    Age: 29

    ELVIS TREJO
    Age: 24

    E.D.N.Y. Docket No. 25-MJ-73

    MIL Security OSI –

  • MIL-OSI Security: Ten Chinese Nationals Charged with Large-Scale Hacking of U.S. and International Victims on Behalf of the Chinese Government

    Source: US FBI

    Eight Defendants Were Employees of i-Soon, a Chinese Company Hacking at the Direction of the Chinese Government, and Two Defendants are Chinese Officials Who Directed the Hacks

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Sue J. Bai, the Head of the U.S. Department of Justice’s National Security Division; and Leslie R. Backschies, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a two-count criminal Indictment charging 10 defendants with a years-long hacking scheme committed through the Chinese company i-Soon.  At the direction of the People’s Republic of China (“PRC”) government, i-Soon employees hacked and attempted to hack victims across the globe, including a large religious organization in the U.S., critics and dissidents of the PRC government, a state legislative body, U.S. government agencies, the ministries of foreign affairs of multiple governments in Asia, and news organizations. i-Soon’s victims were of interest to the PRC government because, among other reasons, they were prominent overseas critics of the PRC government or because the PRC government considered them threatening to the rule of the Chinese Communist Party.  The 10 defendants remain at large.

    Acting U.S. Attorney Matthew Podolsky said: “State-sponsored hacking is an acute threat to our community and national security. For years, these 10 defendants—two of whom we allege are PRC officials—used sophisticated hacking techniques to target religious organizations, journalists, and Government agencies, all to gather sensitive information for the use of the PRC. These charges will help stop these state-sponsored hackers and protect our national security. The career prosecutors of this Office and our law enforcement partners will continue to uncover alleged state-sponsored hacking schemes, disrupt them, and bring those responsible to justice.”

    National Security Division Head Sue J. Bai said: “The Department of Justice will relentlessly pursue those who threaten our cybersecurity by stealing from our government and our people. Today, we are exposing the Chinese government agents directing and fostering indiscriminate and reckless attacks against computers and networks worldwide, as well as the enabling companies and individual hackers that they have unleashed. We will continue to fight to dismantle this ecosystem of cyber mercenaries and protect our national security.”  

    Acting Assistant Director in Charge Leslie R. Backschies said: “The charges announced today expose the PRC’s continued attempts to spy on and silence anyone it deems threatening to the Chinese Communist Party. As alleged in the indictment, the Chinese government tried to conceal its efforts by working through a private company, but their actions amount to years of state-sponsored hacking of religious and media organizations, numerous government agencies in multiple countries, and dissidents around the world who dared criticize the regime. The FBI will continue to work tirelessly to disrupt our adversaries’ use of emerging technology to silence dissent and undermine the rule of law across the globe.”

    As alleged in the Indictment:[1]

    The PRC’s Ministry of State Security (“MSS”) had responsibility for the PRC’s domestic counterintelligence, non-military foreign intelligence, and aspects of the PRC’s political and domestic security. The PRC’s Ministry of Public Security (“MPS”) had responsibility for the PRC’s public and political security, including responsibility for law enforcement. To acquire information of interest to the PRC government in a manner that obscured their involvement, the PRC’s MSS and MPS used an extensive network of private companies and contractors in China to conduct unauthorized computer intrusions (“hacks”) in the U.S. and elsewhere.

    One of those private companies was i-Soon.  From approximately 2016 through 2023, i-Soon and its personnel engaged in the numerous and widespread hacking of email accounts, cell phones, servers, and websites at the direction of, and in close coordination with, the PRC’s MSS and MPS. i-Soon generated tens of millions of dollars in revenue and at times had over 100 employees.

    i-Soon’s primary customers were PRC government agencies.  It worked with at least 43 different MSS or MPS bureaus and charged the MSS and MPS between approximately $10,000 and $75,000 for each email inbox it successfully hacked.

    The victims of i-Soon’s hacking included:

    • A newspaper based in New York, New York, that publishes news related to China and is opposed to the Chinese Communist Party.
    • An additional newspaper based in New York, New York.
    • The U.S. Defense Intelligence Agency, an agency within the Department of Defense that specializes in defense and military intelligence.
    • The U.S. Department of Commerce and the International Trade Administration, an agency within the Department of Commerce that promotes U.S. exports and defends against unfair trade practices.
    • A religious organization based in the U.S. that has thousands of churches and congregations and millions of members.
    • A Texas-based organization founded by a prominent critic of the PRC government focused on promoting human rights and religious freedom in China.
    • A news service funded by the U.S. government that delivers uncensored domestic news to audiences in Asian countries, including China, and is headquartered in Washington, D.C.
    • A state research university in the U.S.
    • The New York State Assembly, a part of the legislature of the state of New York.
    • A religious leader who lived outside of China and the U.S.
    • A newspaper based in Hong Kong, China, that has actively covered the politics of Hong Kong and continues to do so today.
    • The foreign ministry of Taiwan.
    • The foreign ministry of India.
    • The foreign ministry of South Korea.
    • The foreign ministry of Indonesia.

    In many instances, the PRC government was particularly interested in these victims because they had criticized the PRC government.  In other instances, the PRC government was particularly interested in foreign ministries because those foreign ministries were in communication with the U.S.

    In some instances, i-Soon conducted its hacking at the direct request of the MSS or MPS. In other instances, i-Soon conducted hacks on its own initiative and then sold, or attempted to sell, the stolen data to different bureaus of the MSS or MPS.

    i-Soon also trained MPS employees how to hack independently of i-Soon and offered a variety of hacking methods for sale to its customers.  i-Soon touted what it called a “industry-leading offensive and defensive technology” and a “zero-day vulnerability arsenal” used to successfully hack computer systems.  One of i-Soon’s products was software called the “Automated Penetration Testing Platform.” i-Soon advertised the platform’s ability to send email phishing attacks, to create files with malware that could provide access to victims’ computers if opened, and to clone websites of victims in order to induce them to submit personal information. An image of the interface for the Automated Penetration Testing Platform is below:

    Another of i-Soon’s products was software that allowed the user to gain unauthorized access to online accounts or computer systems by deciphering passwords—also called “password cracking.” This platform was called the “Divine Mathematician Password Cracking Platform.” An image of the interface for the Divine Mathematician Password Cracking Platform is below:

    i-Soon also sold software specifically designed to target victim accounts on a variety of computer systems and applications, including Microsoft Outlook; Gmail, the email service provided by Google LLC; the social media network X, formerly known as Twitter; the cellphone operating system Android; and the computer operating systems Windows, Macintosh, and Linux. i-Soon advertised its bespoke software as being able to overcome the unique defenses of these systems.

    For example, with respect to Twitter, i-Soon sold software with the capability to send a victim a spear phishing link and then to obtain access to and control over the victim’s Twitter account. The software had the ability to access Twitter even without the victim’s password and to bypass multi-factor authentication. After a victim’s Twitter was compromised, the software could send tweets, delete tweets, forward tweets, make comments, and like tweets. The purpose of this software was to help i-Soon’s customers, including the PRC government, use hacked Twitter accounts to understand public opinion outside of China. For example, the software could be set to keep track of keywords appearing in tweets or messages. i-Soon referred to this software as its “Public Opinion Guidance and Control Platform (Overseas).” An image from the “Public Opinion Guidance and Control Platform (Overseas)” is below:

    The 10 defendants charged are WU HAIBO, a/k/a “shutd0wn,” a/k/a “Boss Wu,” a/k/a “吴海波,” the Chief Executive Officer, and leader, of i-Soon; CHEN CHENG, a/k/a “lengmo,” a/k/a “Chief C,” a/k/a “Jesse Chen,” a/k/a “陈诚,” the Chief Operating Officer of i-Soon; WANG YAN, a/k/a “crysolo,” a/k/a “王堰,” the leader of one of i-Soon’s “penetration testing” teams; WANG ZHE, a/k/a “ken73224,” a/k/a “王哲,” the Sales Director of i-Soon; ZHOU WEIWEI, a/k/a “nullroot,” a/k/a “周伟伟,” the leader of i-Soon’s “Technology Research and Development Center”; WANG LIYU, a/k/a “PICNIC350116,” a/k/a “王立宇,” an MPS officer based in Chengdu, China; and SHENG JING, a/k/a “sjbible,” “盛晶,” the defendant, an MPS officer based in Shenzhen, China.

    If you have information leading to the identification or location of these 10 defendants, please reach out to the Department of State at rewardsforjustice.net.

    *               *                *

    HAIBO, 43; CHENG, 40; GUODONG, 32; LI, 31; YAN, 35; ZHE, 44; WEIWEI, 37; LIANG, 28; LIYU, 36; and JING, 36, all nationals of China, are charged with conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison, and conspiracy to commit wire fraud, which carries a maximum sentence of 20 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. Podolsky praised the outstanding work of the FBI.

    The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel, Steven J. Kochevar, and Kevin Mead are in charge of the prosecution.  Trial Attorney Gregory J. Nicosia Jr. of the National Security Division’s National Security Cyber Section provided valuable assistance.

    The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Six Defendants Sentenced to Prison for Corruption at Rikers Island

    Source: US FBI

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced the sentences imposed on former Rikers Island corrections officers JASON SKEET, CHANTAL DE LOS SANTOS, and STEPHANIE DAVILA; former Rikers Island program counselor SHANEQUA WASHINGTON; former Rikers Island contractor KENNETH WEBSTER; and former Rikers Island inmate KRISTOPHER FRANCISCO, each for conspiring to commit honest services wire fraud in connection with their involvement in corruption at Rikers Island.  The last of the defendants to be sentenced, DAVILA, was sentenced to 12 months and a day in prison today by U.S. District Judge Lorna G. Schofield.  The remaining five defendants were previously sentenced to terms of prison ranging from 12 months to 40 months. 

    Acting U.S. Attorney Matthew Podolsky said: “The defendants—former Rikers Island employees, a Rikers Island contractor, and an inmate—engaged in corruption on Rikers Island by agreeing to have contraband smuggled into the Rikers Island jail facilities in exchange for tens of thousands of dollars in bribes.  The defendants’ crimes contributed to a dangerous contraband market within Rikers Island, making Rikers Island less safe for inmates and officers alike.  The sentences imposed in this case demonstrate this Office’s commitment to hold accountable those who criminally abuse their positions of public trust and undermine the security of jails for their own benefit.”

    According to the Complaints, Informations, public court filings, and statements made in court:

    SKEET, DE LOS SANTOS, DAVILA, WASHINGTON, WEBSTER, and FRANCISCO engaged in conspiracies to smuggle contraband, including, among other things, controlled substances—such as fentanyl, marijuana, and synthetic cannabinoids, commonly known as “K2”—cellphones, and cigarettes, into Rikers Island in exchange for thousands of dollars in bribe payments.  Each of the charged conspiracies involved a Rikers Island insider—either a corrections officer, program counselor, or contractor—who was responsible for smuggling contraband into the facility; a co-conspirator outside of Rikers Island who provided the contraband and/or bribe payments to the insider; and an inmate co-conspirator who received the contraband smuggled by the insider.  The inmate who received the contraband from the insider typically sold at least part of the contraband to other inmates inside Rikers Island, in exchange for thousands of dollars in payments to the inmate or the inmate’s co-conspirators. In particular:

    From at least January 2020 through June 2022, SKEET, who was then a corrections officer assigned to the Northern Infirmary Command on Rikers Island, smuggled contraband into Rikers Island approximately 100 times in exchange for more than $45,000.

    From at least March 2022 through April 2022, WASHINGTON, who was then a program counselor assigned to the Robert N. Davoren Center on Rikers Island, smuggled contraband into Rikers Island in exchange for approximately $13,000.

    From at least May 2022 through September 2022, WEBSTER, who was then an employee of a Rikers Island contractor and a former Rikers Island inmate , smuggled contraband into Rikers Island in exchange for more than $64,000.

    From at least March 2022 through June 2022, DE LOS SANTOS, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to WASHINGTON and WEBSTER, so that they would smuggle the contraband to inmates inside Rikers Island.

    From at least July 2021 through August 2021, DAVILA, who was then a former Rikers Island corrections officer, passed contraband and made bribe payments to a Rikers Island corrections officer (“CC-1”), so that CC-1 would smuggle the contraband to FRANCISCO inside Rikers Island.

    From at least July 2021 through August 2021, FRANCISCO, who was then an inmate incarcerated in the Anna M. Kross Center on Rikers Island, directed DAVILA to provide bribe payments and contraband to CC-1, so that CC-1 would smuggle contraband to FRANCISCO inside Rikers Island.

    *                      *                      *

    Each of the defendants pled guilty to one count of conspiracy to commit honest services wire fraud.  A chart containing the sentences that the defendants received is set forth below.

    Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation and the New York City Department of Investigation.

    The case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Adam Z. Margulies and Jonathan Rebold are in charge of the prosecution.         

    Defendant

    Age

    		 Sentence of Imprisonment
    Stephanie Davila

    31

    		 12 months and a day
    Chantal De Los Santos

    31

    		 15 months
    Kristopher Francisco

    29

    		 37 months
    Jason Skeet

    47

    		 37 months
    Shanequa Washington

    40

    		 12 months and a day
    Kenneth Webster

    43

    		 41 months

    MIL Security OSI –

  • MIL-OSI Security: Man Arrested After Threats to ‘Hunt Down’ Corporate Executives and Their Families

    Source: US FBI

    RALEIGH, N.C. – A Wendell man was arrested on a criminal complaint for the interstate communication of threats toward executives at Advanced Auto Parts.

    “Whether targeting a kid in a classroom or a boss in a boardroom, we won’t normalize violent threats meant to intimidate workers or strike fear in families.  Threats to kill are not how we resolve differences in America, and it’s a federal crime,” said U.S. Attorney Michael F. Easley, Jr.  “We’ll take swift action against anyone threatening an American anywhere in the world for what they believe, how they pray, or where they work.  Period.”  

    According to court documents, on December 6, 2024, the Federal Bureau of Investigation (FBI) was contacted by Advance Auto Parts about threatening messages sent through the company’s website demanding the company change the “moron who administrates your app and webpage” and provided a deadline of December 25. If the company did not comply, the customer stated threats such as: 

    “I live in Raleigh and am an expert sniper…I vow that I will hunt down your entire executive board and put bullets in their FAMILIES…there will be no stopping me from punishing your executives by murdering their families for refusing to improve the accuracy of your website search function.”

    The complaint alleges that, through investigative means, law enforcement determined that Edward Scott Huffman, 46 of Wendell, sent the messages.  The complaint alleges that Huffman was interviewed and admitted to sending the messages. The complaint further alleges that, during a search of Huffman’s cellphone, law enforcement found a picture of a rifle mounted with a scope and a text message conversation in which Huffman stated he would have murdered UnitedHealthcare CEO, Brian Thompson, if he was given $50,000 and a rifle that couldn’t be traced back to him.

    Huffman is charged with one count of transmitting a threat in interstate commerce. If convicted, he faces a maximum penalty of five years in prison.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The FBI and Wendell Police Department are investigating the case and Assistant U.S. Attorney Leonard Champaign is prosecuting the case.

    A copy of this press release is located on our website.

    A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Armed Robber From New York Sentenced to 10 Years

    Source: US FBI

    RALEIGH, N.C. – A New York man was sentenced to 120 months in prison for robbing Lowest Price Tobacco and Vape in Knightdale.  On September 19, 2024, Mekhi Marquise Hooi pled guilty to Hobbs Act Robbery and brandishing a firearm in furtherance of a crime of violence.

    According to court documents and other information presented in court, Mekhi Hooi, 20, entered the Lowest Price Tobacco and Vape in Knightdale. Hooi then charged the clerk while brandishing a 9mm firearm, and demanding the clerk put money and tobacco products in a bag.  During the robbery, Hooi threatened to shoot the clerk if he did not move faster. Hooi fled the scene and was ultimately apprehended in New York City and extradited to North Carolina to face his charges here.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Knightdale Police Department investigated the case and Assistant U.S. Attorney Charles E. Loeser 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. 5:24-CR-62-D-RN.

    MIL Security OSI –

  • MIL-OSI Security: Second Whiteville Man Sentenced to Nearly Six Years in Prison for Gunfire That Injured Pregnant Woman

    Source: US FBI

    RALEIGH, N.C. – A Whiteville man was sentenced to 71 months in prison for possessing a firearm by a felon.  On October 17, 2024, Robert Jamar Avant pled guilty to the charges.

    “This reckless shootout, adjacent to t-ball fields where hundreds of kids and parents were playing, left a pregnant woman shot and enduring an emergency c-section to save her baby.  It is a miracle the baby survived, and the Whiteville Police Department deserves credit for their swift action on this case,” said U.S. Attorney Michael F. Easley, Jr.  “We’ve cemented firm partnerships with local law enforcement throughout Eastern North Carolina to shut down senseless violence that degrades communities and puts innocent lives at risk.  Those partnerships led to a statutory maximum sentence against one of the shooters.  We won’t stop fighting for our communities until every kid lives free from gun violence.”

    According to court records and evidence presented to the court, Robert Avant, 33, and his co-defendant, Dashaud Maultsby, opened fire on a group of men at the Sandy Ridge Apartment Complex in Whiteville on May 13, 2021. The incident began when Maultsby got into an argument with his girlfriend while at the apartment complex. After leaving the area, he returned with Avant and they began firing AR-15 rifles at an unidentified group of men, who then returned fire. Avant retreated to his vehicle while Maultsby continued shooting as he also moved towards the vehicle. In the process, Maultsby attempted to shoot with one hand as he got into the vehicle, but his rifle fell and discharged accidentally, hitting Avant in the head.

    The Whiteville Police Department (WPD) responded swiftly to the scene and found Avant injured from the gunshot wound while sitting in his vehicle. As officers tended to Avant, they noticed and secured his AR-15 rifle and a pistol that were located near his leg. Avant was a convicted felon and prohibited from possessing firearms.  Avant was taken to a local hospital for treatment. Additionally, a pregnant woman was shot in the torso during the incident, which necessitated an emergency cesarean section to save her child’s life. Following the events, WPD officers apprehended Maultsby and Avant.

    On June 6, 2024, Maultsby was sentenced to 10 years, the maximum sentence allowed by statute. His criminal history includes a prior conviction for attempted trafficking of opium.

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

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation (FBI) and Whiteville Police Department investigated the case and Assistant U.S. Attorney Jaren E. Kelly is 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 the case number 7:23-cr-00087.

    MIL Security OSI –

  • MIL-OSI Security: Charlotte Jury Convicts Armed Bank Robber

    Source: US FBI

    CHARLOTTE, N.C. – A Charlotte jury returned a guilty verdict today against Kendall Charles Alexander, Sr., 60, of Baltimore, Maryland, for the armed robbery of a Bank of America branch, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.

    According to filed court documents and evidence presented at trial, on October 15, 2021, at approximately 10 a.m., Alexander and his co-defendant, Derrius Fleming, robbed at gunpoint the Bank of America branch located at 212 Iverson Way in the Southend area of Charlotte. Trial evidence established that Alexander entered the bank holding a loaded semi-automatic rifle.  Fleming went directly to an unarmed security guard at the corner of the building and forced her inside at gunpoint with his loaded semi-automatic rifle. Once inside, Alexander and Fleming threatened to kill the employees and customers if they did not comply with their demands. The victims were ordered to the ground and Alexander ordered the manager to open the vault room and the vault. Alexander loaded a bag with the money from the vault while Fleming kept watch over the victims.

    According to trial evidence, using GPS tracking, law enforcement tracked Alexander and Fleming who had met up with a third individual. Alexander and Fleming attempted to burn their getaway car and got into the car with the third man. Ultimately, the robbers crashed that vehicle, at which point Alexander and Fleming fled on foot across I-77. All of the stolen money was recovered from a bag dropped by Alexander.

    The jury convicted Alexander of armed bank robbery with forced accompaniment, brandishing a rifle, including a short-barreled rifle, in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Alexander has prior convictions for attempted murder of a federal officer, use of a firearm in commission of a felony, possession and discharge of a firearm during a crime of violence, and armed bank robbery. He was also on federal supervised release for committing a bank robbery in Maryland. Because of his violent criminal history, Alexander faces a mandatory sentence of life in prison.

    Alexander will remain in federal custody pending sentencing. A sentencing date has not been set.

    Fleming has pleaded guilty to brandishing a short-barreled rifle in furtherance of a crime of violence and been sentenced to ten years in prison.

    In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.

    Assistant U.S. Attorneys Erik Lindahl and David Kelly are prosecuting the case.

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

    MIL Security OSI –