NewzIntel.com

Category: Intelligence Agencies

  • MIL-OSI Security: FBI Newark Searching for Fugitive in Stabbing Death

    Source: US FBI

    FBI Newark, Pennsylvania State Police Fugitive Unit, Stroud Regional Police Department, and the U.S. Marshals Service are asking for the public’s help finding Ricky ‘Angel’ Vargas (36), who was charged in federal court with unlawful flight to avoid prosecution after being indicted in Bergen County on first degree murder charges. FBI Newark is offering a reward of up to $15,000 for information leading to his arrest.

    Detectives with the Bergen County Prosecutor’s Office say Vargas stabbed a man on February 4, 2024, at the JoJo’s Bar and Grill in Garfield, NJ. They say Vargas, a member of the Latin Kings gang, stabbed Richard Franceschi, who later died from his injuries.

    Vargas’ last known residence was in East Stroudsburg, Pennsylvania. He also has connections to Chicago, Illinois, and Winter Park, Florida. He does not have a valid driver’s license and is known to use ride share apps and mass transit to get around. He is around 5’5, 200lbs, with numerous tattoos on his arms and hands. He typically has facial hair and wears glasses. 

    Vargas is considered armed and dangerous. Anyone with information regarding his whereabouts is asked to call the FBI at 1-800-CALL-FBI, the FBI Newark Field Office at 973-792-3000, or submit a tip online at tips.fbi.gov. They could receive a reward of up to $15,000 for information leading to his arrest.

    MIL Security OSI –

  • MIL-OSI Security: Former Federal Bureau of Prisons Corrections Officer Sentenced for Sexually Abusing Inmate in His Custody

    Source: US FBI

    BIRMINGHAM, Ala. – A former Federal Bureau of Prisons (FBOP) Corrections Officer, Robert D. Smith, 39, was sentenced today in federal court to 24 months in prison, followed by 15 years of supervised release, for sexually abusing an inmate while he was a corrections officer at the Federal Correctional Institution, in Aliceville, Alabama (FCI-Aliceville).

    Smith previously pleaded guilty to sexually abusing a ward on Jan. 11.

    “Robert Smith’s egregious acts have no place in the Federal Bureau of Prisons, and he has been held to account for abusing of his position of trust,” said Deputy Attorney General Lisa Monaco. “Today sentence marks the latest effort in the Justice Department’s ongoing efforts to root out sexual misconduct within the Federal Bureau of Prisons. The Department will continue our efforts to hold accountable employees who fail to uphold their oath to protect those in their care.”

    “Beyond the view of the cameras and the eyes of potential witnesses, this defendant sexually abused and assaulted vulnerable women inmates and thought he would get away with his crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This case should send an unequivocal message to officials working in correctional settings that we have zero tolerance for sexual assaults of women held inside jails and prisons. We encourage the survivors of these heinous crimes to report acts of official misconduct and violence to the FBI. The Justice Department will continue to aggressively prosecute those who violate the civil and constitutional rights of people detained in correctional facilities.”

    “Corrections officers have the responsibility to ensure the safety and security of those incarcerated in our nation’s prisons,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We will continue to work with our law enforcement partners to investigate and prosecute corrections officers who abuse inmates and violate positions of public trust.”

    “Today’s sentencing holds Smith accountable for the serious crimes he committed,” said Justice Department Inspector General Michael E. Horowitz. “Smith sexually abused multiple inmates and he did so by taking them to areas of the prison without camera coverage. As the OIG has repeatedly found, the effective use of cameras by the FBOP is critical to preventing and deterring such criminal wrongdoing at its facilities.”

    According to court documents and evidence presented at the sentencing hearing, Smith worked as a corrections officer at FCI-Aliceville, which is a low-security federal prison. As part of his duties, Smith was to ensure the safety and security of inmates housed at FCI-Aliceville and to uphold the U.S. Constitution.

    While acting in his capacity as an officer, in or around February 2019, Smith knowingly engaged in a sexual act with a female inmate in official detention, who was under Smith’s custodial, supervisory or disciplinary authority. Smith committed this criminal act when he and his victim were in his office in the facilities department, which was away from cameras and other inmates and officers.

    Smith also admitted to sexually abusing another inmate on a different occasion. Specifically, also while acting in his capacity as an officer, between on or about July 6, 2018, and Nov. 15, 2018, Smith knowingly engaged in a sexual act with a female inmate in official detention, who was under Smith’s custodial, supervisory or disciplinary authority. Smith committed this criminal act in the mechanical room, which Smith accessed with a key, and which was also away from cameras and other inmates and officers.

    DOJ-OIG investigated the case.

    Assistant U.S. Attorney Michael Royster for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section prosecuted the case.

    FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the department’s reform efforts.

    MIL Security OSI –

  • MIL-OSI Security: Owner of Marketing Companies and DME Company Convicted for Role in $100 Million Scheme to Defraud Medicare and Other Insurers and to Violate the Anti-Kickback Statute

    Source: US FBI

    NEWARK, N.J.  A Florida man was convicted by a federal jury for his role in a durable medical equipment (DME) kickback scheme that caused millions of dollars in losses to Medicare and other insurance providers, United States Attorney John Giordano announced.

    Following a month-long jury trial before U.S. District Judge Michael E. Farbiarz, Raheel Naviwala, 36, of Coral Springs, Florida, was convicted on Feb. 28, 2025, of conspiracy to commit health care fraud and wire fraud, one count of health care fraud, conspiracy to violate the Anti-Kickback Statute, and three counts of violating the Anti-Kickback Statute. He was also acquitted of two counts of health care fraud.

    “This Office is committed to prosecuting those like the defendant who seek to profit by defrauding and corrupting our nation’s medical systems,” United States Attorney John Giordano said. “When people siphon millions from Medicare to line their own pockets, regular citizens pay the price. This case demonstrates that serious consequences will follow for such conduct.”

    “The scheme Naviwala and his co-conspirators created to steal money from the government was complex and expansive,” FBI Acting Special Agent in Charge Terence G. Reilly said. “However, FBI Newark and our law enforcement partners have the expertise and grit to dig through mountains of data and find the fraudsters. We want this case to serve as a warning to anyone hoping to capitalize on hiding under the red tape – we are still here, and you will eventually get caught.”

    “The defendant convicted in this case prioritized greed over the provision of appropriate health care services to patients, bilking the federal government for medically unnecessary durable medical equipment,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure the integrity of the federal health care system and hold accountable owners and providers engaging in fraud that targets its programs.”

    “Investigating corrupt schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Mr. Naviwala’s illegal schemes put the TRICARE program and its beneficiaries at risk. We are committed to working with our partner agencies and the Department of Justice to pursue those individuals who selfishly place personal gain over the safety and care of TRICARE beneficiaries.”

    “Schemes such as these compromise the integrity of VA’s programs and services and divert funds from our nation’s deserving veterans,” said Special Agent in Charge Christopher F. Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG will continue to work with our law enforcement partners to root out fraudsters and hold them accountable.”

    According to the evidence at trial:

    Naviwala and his coconspirators purchased lists of Medicare patients’ names, addresses, and phone numbers, and hired telemarketers to convince the patients to get DME (orthotic braces). These telemarketers pre-filled prescriptions and picked the highest-paying braces to bill to insurers. Naviwala then paid telemedicine doctors to sign the pre-filled prescriptions for braces, regardless of whether the patients needed or wanted braces. Generally, the telemedicine doctor did not even speak to the patients before signing the pre-filled prescriptions.

    Naviwala then sold the signed prescriptions to DME supply companies that could bill Medicare, TRICARE, and other insurers for the braces. To conceal the fraud, Naviwala and his coconspirators signed sham contracts and used sham invoices that falsely represented that Naviwala was billing DME supply companies for marketing or consulting.

    Naviwala also owned and operated a DME supply company that was used to bill Medicare, and which submitted claims to Medicare for up to nine braces for a single patient.

    To further conceal his illegal conduct, Naviwala put multiple of his businesses in the names of nominee owners. The nominee owners generally performed no legitimate work for any company and were paid to hide Naviwala’s involvement.

    Medicare and other insurers paid hundreds of millions of dollars to members of the conspiracy and paid at least approximately $100 million for DME associated with Naviwala’s companies. Naviwala personally pocketed more than $10 million in fraud proceeds.

    Conspiracy to commit health care fraud and wire fraud is punishable by a maximum potential penalty of 20 years in prison. Health care fraud is punishable by a maximum potential penalty of 10 years in prison. Conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. Each count of illegal kickbacks is punishable by a maximum potential penalty of 10 years in prison. Each count is also punishable by a fine. Sentencing is scheduled for 10 a.m. on July 29, 2025, before Judge Farbiarz in Newark.

    United States Attorney John Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; HHS-OIG, under the direction of Special Agent in Charge Naomi Gruchacz; DCIS, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to the conviction.

    The government is represented by Assistant U.S. Attorneys Elaine K. Lou, Deputy Chief of the Criminal Division, Matthew Specht of the Special Prosecutions Division, and Aaron L. Webman of the Economic Crimes Unit in Newark.

                                                               ###

    Defense counsel:

    Jamie Hoxie Solano, Esq. New York, New York

    Amy C. Brown, Esq. New York, New York

    Bryan W. McCracken, Esq. New York, New York

    Ifedapo Benjamin, Esq. New York, New York

    MIL Security OSI –

  • MIL-OSI Security: Man Arraigned in Federal Court on Multiple Charges of Sexual Exploitation of Children

    Source: US FBI

    HUNTSVILLE, Ala. – A Lawrence County man was arraigned in federal court last week on multiple child sexual exploitation charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton Peeples.

    A 13-count indictment filed in U.S. District Court charges David Edward Collier, 46, with four counts of sexual exploitation of children, eight counts of transportation of child pornography, and one count of possession of child pornography.

    According to the indictment, between January 2017 and August 2022, Collier used, induced, or coerced minor children to engage in sexually explicit conduct for the purpose of producing any visual depiction of that conduct.  Between October 2022 and September 2023, Collier transported the child pornography.  Collier was also charged with possession of child pornography.  

    FBI North Alabama Violent Crime Task Force and Cybercrime Squad investigated the case along with the assistance of the Lawrence County Sheriff’s Office, Moulton Police Department, Madison County Sheriff’s Office, Huntsville Police Department, and Limestone County Sheriff’s Office. Assistant United States Attorney R. Leann White is prosecuting the case.

    The U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered and released a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities.

    The videos can be accessed from the following locations:

    nationalcac.org/sextortion-prevention/

    https://www.youtube.com/@nationalcac

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

    MIL Security OSI –

  • MIL-OSI Security: Two Individuals Plead Guilty to Health Care Fraud Conspiracy

    Source: US FBI

    HUNTSVILLE, Ala. – A former doctor and her wife pleaded guilty today to crimes involving the medical practice they ran in north Alabama for many years.  United States Attorney Prim Escalona, FBI Special Agent in Charge Carlton Peeples, Drug Enforcement Administration Special Agent in Charge Steven L. Hofer, and Special Agent in Charge Tamela Miles of the Department of Health and Human Service Office of the Inspector General Atlanta Region made the announcement.

    Francene Aretha Gayle, 50, of Apopka, Florida, pleaded guilty before U.S. District. Judge Liles Burke to five counts of unlawful drug distribution, one count of health care fraud conspiracy, and one count of wire fraud conspiracy. Gayle’s wife, Schara Monique Davis, 48, also of Apopka, pleaded guilty to one count of health care fraud conspiracy and one count of wire fraud conspiracy.

    According to the defendants’ plea agreements, between about 2014 and early 2020, Gayle was a doctor who operated a multi-clinic practice in Huntsville, Athens, and Killen. Davis owned the practice and served as business manager. In 2019, the Killen clinic shut down. In March 2020, the Alabama Medical Licensure Commission revoked Gayle’s license, and the other two clinics closed shortly after that.

    Gayle admitted that she had unlawfully distributed drugs, including oxycodone, hydrocodone, and methadone.

    Gayle and Davis both admitted to having conspired to commit health care fraud for several years by billing insurers for office visits under Gayle’s name even when she did not see the patients, was not in the same building, and sometimes was not in the same town. The defendants knew that the billing scheme was fraudulent. In 2015, Blue Cross Blue Shield of Alabama audited the practice and discovered that Gayle was absent, other staff were seeing patients, and yet all office visits were being billed under Gayle’s name. Blue Cross flagged the issue, and Gayle promised it would stop. Instead, the practice continued fraudulently billing insurers for office visits for the next four years. In total, between 2015 and 2020, Medicare, Medicaid, and Blue Cross paid more than $2.3 million for office visits billed under Gayle’s name.

    Gayle and Davis both also admitted to having conspired to commit wire fraud. In March 2020, based on concerns about her prescribing and billing practices, Gayle’s Alabama medical license was revoked.  Months later, Gayle and Davis applied for and obtained more than $450,000 in COVID-19 disaster relief funds through the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program. Those funds were designed to stabilize businesses struggling because of the pandemic. In their funding applications, Gayle and Davis certified that their medical practice needed the money because of economic uncertainty or injury caused by the pandemic. In reality, Gayle and Davis’s practice had closed, and they used COVID-19 funds they received on other things.

    The maximum penalty for unlawful drug distribution is twenty years in prison. The maximum penalty for health care fraud conspiracy is ten years in prison. The maximum penalty for wire fraud conspiracy is twenty years in prison.

    The FBI, DEA, and HHS-OIG investigated the case. The Medicaid Fraud Control Unit of the Alabama Attorney General’s Office provided exceptional investigative assistance after the Alabama Medicaid Agency’s Program Integrity Division initiated the case and referred it. Assistant U.S. Attorneys J.B. Ward and Ryan Rummage are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Birmingham Home Builder Sentenced for $1.2 Million-Dollar Fraud

    Source: US FBI

    BIRMINGHAM, Ala. – A Birmingham-area man has been sentenced for defrauding more than a dozen victims whose homes he had promised to build, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. 

    U.S. District Judge Annemarie Carney Axon sentenced Cecil Wayne Sanford, 58, of Birmingham, to 58 months in prison. Sanford was also ordered to pay forfeiture and restitution of about $1.27 million.  In April 2024, Sanford pleaded guilty to wire fraud. 

    According to the plea agreement, Sanford was a residential builder in Alabama who operated through his business, Stone Pointe Builders, LLC. Between 2020 and early 2022, more than a dozen victims in the Birmingham area contracted with Sanford to build their homes and paid Sanford substantial sums of money (tens of thousands of dollars or more). Yet the victims saw little or no work done despite Sanford’s representations, draws on their construction loans, and invoices for construction-related expenses. Sanford made statements to victims about how their funds would be used and then spent the money in other ways. In February 2022, days after closing with a family on a construction contract and collecting more than $27,000 from the family as a down payment, Sanford moved $10,000 into his personal bank account, withdrew it, abruptly closed the business, and left town.

    The FBI investigated the case. . The Alabama Home Builders Licensure Board assisted in the investigation.  Assistant U.S. Attorney J. B. Ward prosecuted the case.  

    MIL Security OSI –

  • MIL-OSI Security: Trussville Man Sentenced in Multimillion-Dollar Health Care Fraud Case

    Source: US FBI

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

    “This was a crime of greed and indifference to the consequences of the actions to the overall health system,” said U.S. Attorney Prim Escalona. “The crime cost insurers millions of dollars, and it exploited vulnerable patients trying to get appropriate medical care, not run up the tab on insurance. We will continue to fight hard to keep our community safe from serious crimes like this one.”

    “Health care fraud is not a victimless crime. It costs U.S. taxpayers millions of dollars every year. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes,” said James DeLoatch, Acting Special Agent in Charge of the FBI Birmingham Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”

    “Kickback arrangements can compromise medical decisions and threaten the integrity of federally funded health care programs,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence exemplifies our commitment to protecting taxpayer-funded health care programs and the patients they serve.”

    Earlier this week, U.S. District Court Judge L. Scott Coogler sentenced John Alan Robson, 41, of Trussville, to 56 months in prison. Robson was also ordered to pay forfeiture of about $1.1 million, and restitution of about $5.3 million. In February 2024, Robson pleaded guilty to health care fraud conspiracy related to his work with Brian Bowman, James Ray, and others.

    According to Robson’s plea agreement, Robson knew that insurers would not pay for items or services that had been ordered based on kickbacks or that were medically unnecessary for a patient. Yet Robson received kickbacks—from specialty pharmacies, a nerve conduction testing company, and brace suppliers—to generate medically unnecessary orders and prescriptions from doctors’ offices that would be billed to insurance and reimbursed at high rates.

    For example, Robson marketed nerve conduction testing to medical providers for a Huntsville-based company called QBR or Diagnostic Referral Community. QBR paid those providers a flat fee (for example, $50) for each test they ordered that insurance paid for. QBR paid Robson a flat fee for each of those tests, too. QBR paid one of Robson’s medical practices more than $100,000 in per-test kickbacks.

    As another example, Robson marketed high-reimbursing topical creams—such as pain creams and scar creams—to providers on behalf of specialty pharmacies like Global Compounding Pharmacy and Watson Rx Solutions. Robson was paid lucrative commissions on the cream prescriptions that he and his team generated and insurance paid for. Robson got prescriptions for himself and family members regardless of whether those topical creams were medically necessary for the patients. Robson and other sales reps got blank pre-signed prescriptions from medical providers, filled out the prescriptions to make sure insurance would pay for them, and even selected the drugs or drug formulations to make sure insurance would pay for them. Robson admitted that federal insurance programs paid millions of dollars for medically unnecessary prescriptions for which Robson, Ray, and Bowman received commissions.

    This case is the latest in a series of cases involving health care fraud and kickbacks through pain clinics, specialty pharmacies, and a nerve conduction company in north Alabama.

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

    See related press here:

    https://www.justice.gov/usao-ndal/pr/medical-sales-rep-and-former-pain-clinic-owner-sentenced-related-multi-million-dollar

    https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar

    https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care

    https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy

    https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud

    MIL Security OSI –

  • MIL-OSI Security: Alabama Man Pleads Guilty to Violating Iran Sanctions

    Source: US FBI

    BIRMINGHAM, Ala. – Ray Hunt, also known as Abdolrahman Hantoosh, Rahman Hantoosh and Rahman Natooshas, 70, of Owens Cross Roads, pleaded guilty today to conspiracy to export U.S.-origin goods to the Islamic Republic of Iran in violation of trade sanctions.

    According to court documents, in May 2014, Hunt registered Vega Tools, LLC with the Alabama Secretary of State, listing the nature of the business as “the purchase/resale of equipment for the energy sector.” He operated Vega Tools, including purchasing, receiving, and shipping U.S.-origin goods, from locations in Madison County, Alabama. Beginning at least as early as 2015, Hunt conspired with two Iranian companies located in Tehran, Iran, to illegally export U.S.-manufactured industrial equipment for use in Iran’s oil, gas, and petrochemical industries.

    Hunt engaged in a series of deceptive practices to avoid detection by U.S. authorities, including using third-party transshipment companies in Turkey and the United Arab Emirates (UAE) and routing payments through UAE banks, as well as lying to shipping companies about the value of his exports to prevent the filing of Electronic Export Information to U.S. authorities. Hunt lied to suppliers and shippers by claiming the items he purchased on behalf of the Iranian co-conspirators were destined for end-users in Turkey and UAE, while knowing the exports were ultimately destined for Iran. Hunt lied also to U.S. Customs and Border Patrol officers regarding the nature and existence of his business when questioned upon his return from a March 2020 trip to Iran.   

    Hunt pleaded guilty to a conspiracy charge and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Department of Commerce Bureau of Industry and Security is investigating the case with valuable assistance provided by the FBI. 

    Assistant U.S. Attorneys Jonathan “Jack” Harrington, Jonathan Cross, and Henry Cornelius and Trial Attorneys Emma Ellenrieder and Adam Barry of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Kentucky Man Sentenced to 25 Years in Prison Related to Sextortion Scheme

    Source: US FBI

    BIRMINGHAM, Ala. – A Kentucky man was sentenced today on a charge of sexual exploitation of children, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge L. Scott Coogler sentenced Aden Willis Yeager, 22, of Louisville, Kentucky, to 300 months in prison, followed by a life term of supervised release.  As part of his sentence, Yeager was ordered to pay $92,620 in restitution to the victims and a $50,000 special assessment under the Amy, Vicky, and Andy Act. In March, Yeager pleaded guilty to one count of production of child pornography. 

    According to the plea agreement, in November 2020, the West Alabama Human Trafficking Task Force received a CyberTipline report from the National Center for Missing and Exploited Children related to acts of sextortion committed by Yeager towards a minor female. Yeager coerced and enticed the minor to send him nude photos of herself, and then he sold the photos online.  When the minor would refuse to send more pictures, Yeager would threaten to send her nude photos to everyone in her contact list on social media. Further investigation revealed over 60 individual folders in Yeager’s Dropbox account that were labeled by female names and contained sexually explicit images and videos. FBI agents were able to positively identify and locate 19 minor females who had been contacted by Yeager to send pornographic photos.

    FBI Birmingham’s Child Exploitation and Human Trafficking Task Force investigated the case along with FBI Louisville, Kentucky; the West Alabama Human Trafficking Task Force; and the University of Alabama Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.

    The U.S. Attorney’s Office (USAO) and the National Children’s Advocacy Center (NCAC) have partnered and released a digital series to educate parents and caretakers about sextortion and how they can help prevent kids and teens from being victims. This series offers three-to-five-minute videos about current online safety topics and provides essential information about the true dangers of online activities.

    The videos can be accessed from the following locations:

    nationalcac.org/sextortion-prevention/

    https://www.youtube.com/@nationalcac

    If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.

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

    MIL Security OSI –

  • MIL-OSI Security: Pell City Man Sentenced to 71 Months in Prison for Financial Fraud Scheme

    Source: US FBI

    BIRMINGHAM, Ala – A Pell City man has been sentenced in a scheme to defraud more than 40 investors in his various companies out of more than $4.7 million, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    Chief U.S. District Court Judge R. David Proctor sentenced John Michael Golden, 48, to 71 months in prison followed by three years of supervised release.  In April 2024, Golden pleaded guilty to one count of wire fraud.  

    According to the plea agreement and information provided at sentencing, Golden was the founder and owner of Wolf-Tek, LLC; MountainTop Timber, LLC; and DroneTek, Inc. Between January 2018 and at least October 2023, Golden devised a scheme to persuade individuals to invest in his companies. He made various misrepresentations to the investors, including telling them his businesses were about to be sold for millions of dollars to companies such as Amazon, he had timber leases and an ability to harvest timber for profit, and he had hundreds of pre-orders for drones that he simply needed capital to fulfill. Golden also gave some investors Promissory Notes in which he falsely promised lucrative returns on investments within a short period of time. Golden even defrauded a new victim eight days after originally signing a plea agreement.

    To continue his scheme, Golden placated victims by sending them text messages falsely claiming that their money was available and would arrive on specific future dates. Golden subsequently had his bond revoked for contacting victims and making false promises to them regarding repayment. Golden ultimately defrauded investors in his companies out of more than $4.7 million. He used the funds to pay back prior investors and for personal expenses.

    The Federal Bureau of Investigation investigated the case, with assistance from the Alabama Securities Commission. Assistant United States Attorney Ryan Rummage prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Tuscaloosa Woman Pleads Guilty to COVID-19 Pandemic Fraud

    Source: US FBI

    BIRMINGHAM, Ala. – A Tuscaloosa County woman pleaded guilty this week to defrauding the Small Business Administration’s (SBA) Paycheck Protection Program (PPP), announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation (FBI) Special Agent in Charge Carlton L. Peeples.

    Erica Lasha Prewitt, 42, of Tuscaloosa, pleaded guilty before United States District Court Judge L. Scott Coogler to theft of government funds. 

    According to the plea agreement, in August 2020, Prewitt received a fraudulent PPP loan totaling $96,875.  Prewitt made material misrepresentations on the loan application that was supported by fraudulent documentation.  In September 2021, Prewitt submitted a PPP Loan Forgiveness Application in which she claimed her business employed 30 people and the full amount of the loan was spent on payroll costs.  Prewitt never owned or operated a business and did not use the PPP loan funds to retain workers during the COVID-19 pandemic. 

    Prewitt is scheduled to be sentenced on November 26, 2024.  The maximum penalty for theft of government funds is 10 years in prison.

    FBI investigated the case. Assistant U.S. Attorney Jonathan “Jack” Harrington is prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Delta Junction Man Sentenced for “Bud and Breakfast” Fraud Scheme

    Source: US FBI

    FAIRBANKS, Alaska – A Delta Junction man was sentenced today to two years in prison and is required to pay over $580,000 in restitution for running a years’ long scheme to defraud nearly two-dozen investors out of over $600,000.

    According to court documents, from January 2017 to January 2020, Brian Corty, 53, was the organizer and manager of a conspiracy to use false and fraudulent claims to gain investments for a potential business and use the investments for personal gain. As part of the scheme, Corty sold investors units in Ice Fog Holdings LLC to raise capital for a “Bud and Breakfast” which was described as a marijuana theme park, where they would grow, cultivate and sell marijuana, and allow customers to use marijuana on site.

    Corty purchased a building on the Richardson Highway near Salcha, Alaska, as the proposed location of the business. Corty falsely told investors that they were already growing marijuana and generating income and that the business would make millions of dollars in annual sales. Based on these misrepresentations, at least 22 people invested over $600,000 into the fraudulent scheme and the defendant used the money for personal gain, including to refinance his home and pay off debt.

    Corty pleaded guilty in January to one count of conspiracy to commit wire fraud. Corty is also required to serve three years’ supervised release as part of his sentence.

    “Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Ensuring that white collar criminals, like Mr. Corty, are held accountable is a priority for my office. No one is above the law. We will continue work with our law enforcement partners to pursue prosecutions against individuals who choose to exploit unknowing victims through fraudulent means.”

    “Mr. Corty lured investors with promises of prosperity and guaranteed returns, when in truth, he diverted the investor money to fund his own lifestyle,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Those who engage in fraudulent schemes at the expense of others will be investigated and held accountable.”

    The FBI Anchorage Field Office, Fairbanks Resident Agency, with assistance from the Alaska Department of Law, investigated the case.

    Assistant U.S. Attorneys Tom Bradley and Ryan Tansey prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Statement From Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office, Reflecting on the 2024 National Day of Awareness for Missing and Murdered Indigenous Persons

    Source: US FBI

    “In Alaska, the FBI joins partners and tribal communities across the country in honoring the many American Indian and Alaska Native families that have disproportionately been impacted by violence. The FBI is committed to supporting our law enforcement partners to combat violent crime and seek resolution, in pursuit of justice and healing for Indigenous communities throughout Alaska.”

    MIL Security OSI –

  • MIL-OSI Security: California Man Sentenced for Distributing Methamphetamine

    Source: US FBI

    SYRACUSE, NEW YORK – Troy Alexander Mendez, age 25, a resident of California, was sentenced today to 66 months in federal prison for distributing controlled substances. Acting United States Attorney Daniel Hanlon and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    As part of his guilty plea, Mendez admitted that, in August 2023, he sold and shipped over 300 grams of methamphetamine via the U.S. Postal Service to a customer in the Syracuse, New York area. Law enforcement intercepted the package and identified Mendez as the source of the shipment. At the sentencing hearing, the evidence established that Mendez also sold drugs on other occasions and possessed multiple firearms in connection with that drug activity.

    Senior United States District Judge Glenn T. Suddaby also imposed a 5-year term of supervised release to begin after Mendez is released from prison.

    The Federal Bureau of Investigation (FBI) investigated the case, with assistance from the New York State Police. Assistant U.S. Attorney Ben Gillis prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Minnesota Man Sentenced for Airline Assault, Interference

    Source: US FBI

    ANCHORAGE, Alaska – A Minnesota man was sentenced today to five years’ probation for assaulting a flight attendant and interfering with a flight crew’s normal duties.

    According to court documents, on June 24, 2023, Christian Burch, 38, went into the bathroom while he was aboard a flight from Minneapolis to Anchorage. Flight attendants heard a scream coming from the bathroom and tried knocking on the door multiple times. The defendant slammed the door open and walked up the aisleway, appearing shaky and confused.

    After being questioned by another flight attendant, Burch became unresponsive. A registered nurse aboard the flight examined the defendant and suspected he was overdosing. The flight attendants and a male passenger assisted the nurse is administering a dosage of Narcan, but Burch began to violently struggle when the Narcan was inserted into his nose. The flight attendants and multiple passengers were involved in the struggle, and at one point, Burch grabbed one of the flight attendants near her throat. Burch was also bleeding from his nose and mouth during the altercation, causing multiple passengers and flight attendants to come in contact with his blood.

    The nurse was able to administer two doses of Narcan during the altercation and Burch was restrained in one of the cabin seats for the remainder of the flight. Due to Burch’s actions, the flight crew had to stop performing their normal duties to remedy the situation and update the pilots.

    Burch was arrested once the plane landed in Anchorage and served six days in federal custody before being released. Upon his return to Minnesota, he was arrested and held in state custody for 72 days for violating his state parole by leaving the state without permission. Burch pleaded guilty in December 2023 but was arrested in March 2024 for violating his pretrial release and has remained in custody since, serving 66 days total in federal custody.

    “Air travel is a necessity for many Alaskans and tourists, and all who use or work on this mode of transportation should feel safe while aboard an aircraft,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “This case serves as a reminder that we will prosecute anyone who chooses to commit such actions while in our district.”

    “Criminal conduct aboard an aircraft, such as interference with a flight crew, jeopardizes the safety of all passengers and is a federal crime,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “The FBI is committed to investigating federal crimes occurring on commercial aircraft, and holding accountable those that endanger the safety of passengers and flight crews.”

    The FBI Anchorage Field Office, with assistance from the Anchorage Airport Police Department, investigated the case.

    Assistant U.S. Attorney Christopher Schroeder prosecuted the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: South African Man Indicted for Stabbing on Cruise Ship En Route to Alaska

    Source: US FBI

    JUNEAU, Alaska – A federal grand jury in Alaska returned an indictment charging a South African man with assaulting three people with medical scissors while aboard a cruise ship.

    According to court documents, on May 6, 2024, Ntando Sogoni, 35, was allegedly discovered trying to deploy a lifeboat and was taken to the ship’s medical area for an evaluation.

    During his evaluation, he began struggling with a nurse and security guard and fled to another examination room, where he assaulted a female victim, who is a U.S. citizen. He stabbed her with trauma scissors multiple times in the chest, arms and head, causing serious bodily harm. He proceeded to attack two security guards, stabbing one guard, a national of the Philippines, in the head, and stabbing the other guard, a national of Nepal, in the spine.

    He was detained and held in the ship’s jail until arriving in Juneau on May 7, where he was charged by complaint and arrested by the FBI.

    At the time of the assault, the ship was on the high seas and within the special maritime and territorial jurisdiction of the U.S., and on a voyage with a scheduled departure from or arrival in the U.S.

    Sogoni is charged with one count assault with intent to murder in violation of 18 U.S.C. §7(1), (7) and (8) and 113(a)(1), three counts of assault with a dangerous weapon in violation of 18 U.S.C. §7(1), (7) and (8) and 113(a)(3), and three counts of assault resulting in serious bodily injury in violation of 18 U.S.C. §7(1), (7) and (8) and 113(a)(6), The defendant made his initial court appearance on May 9 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison for the one count of assault with intent to murder and 10 years in prison and a $250,000 fine for the other five assault counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney S. Lane Tucker of the District of Alaska, Special Agent in Charge Rebecca Day with the FBI Anchorage Field Office and Supervisory Special Agent Brett Durham of the U.S. Coast Guard Investigative Service (CGIS) Resident Agency Juneau and Resident Unit Anchorage made the announcement.

    The FBI Anchorage Field Office and FBI Juneau Resident Agency, and the CGIS Resident Agency Juneau are investigating the case.

    Assistant U.S. Attorney Jack Schmidt is prosecuting the case.

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

    ###

    MIL Security OSI –

  • MIL-OSI Security: Anchorage Man Sentenced to 11 Years for Drug, Firearm Crimes

    Source: US FBI

    ANCHORAGE, Alaska – An Anchorage man was sentenced yesterday to 11 years in prison and four years’ supervised release for possessing firearms as a felon and possessing drugs with an intent to distribute them.

    According to court documents, on Jan. 28, 2021, law enforcement found Joseph Franks, 42, asleep in a running tow truck along a road in Big Lake. Franks had an active warrant for his arrest and was asked to step out of the vehicle. Upon his arrest, law enforcement found a loaded pistol magazine on his person. They obtained a search warrant for the tow truck and found a backpack containing two stolen pistols, six pistol magazines and over 300 grams of marijuana, among other items, and a safe containing over 60 grams of heroin and paraphernalia commonly used for drug distribution.

    Less than a week later, law enforcement attempted to stop a vehicle in Wasilla, but the vehicle fled, leading to a high-speed chase for several miles. Spike stripes were deployed, causing the vehicle to crash, but the driver, later determined to be Franks, broke the driver’s side window and fled from the vehicle on foot. Franks was apprehended by a K9 and law enforcement found $1,770 in cash and a small container with cocaine on his person, and $3,550 in cash, over 61 grams of marijuana, over 35 grams of meth, over 85 grams of heroin, and small amounts of psilocybin and cocaine inside a locked duffle back in the vehicle’s trunk.

    “Mr. Franks repeatedly disregarded the law and endangered the community with his criminal conduct,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work closely with our law enforcement partners to pursue justice against defendants who choose to commit criminal acts, especially activity that puts our communities at risk like firearm and drug trafficking offenses.”

    “The defendant continued to plague our community with serious crimes involving drugs, stolen firearms, and reckless flight from law enforcement,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “This sentence, stemming from a joint investigation with the Alaska State Troopers, exemplifies our shared commitment in keeping our communities safe.”

    “The sentence handed down in this prosecution is a significant victory in the Alaska State Trooper’s fight against drug trafficking occurring across the State of Alaska,” said Captain Cornelius Sims, Captain of the Alaska State Trooper’s Statewide Drug Enforcement Unit. “The Alaska State Troopers will continue to work tirelessly with our local, state, and federal law enforcement partners to interrupt drug trafficking in Alaska and hold those that peddle these dangerous drugs accountable for their actions.”

    The FBI Anchorage Field Office and Alaska State Troopers investigated the case.

    Assistant U.S. Attorneys Jennifer Ivers and Alana Weber prosecuted the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office Announces Additional Charges Against Leader, Member of Alaska Organized Drug Crime Ring

    Source: US FBI

    ANCHORAGE, Alaska – A federal grand jury in Alaska returned a superseding indictment adding new charges against the leader and a high-ranking member of a large-scale organized drug crime ring operating in Alaska.

    In January, the U.S. Attorney’s Office for Alaska announced charges against 53 defendants allegedly connected to the drug trafficking enterprise. Conspiracy to distribute fentanyl, methamphetamine, heroin and cocaine, continuing criminal enterprise, killing in furtherance of a continuing criminal enterprise, kidnapping conspiracy, kidnapping resulting in death and carjacking resulting in death, were among the original charges against leaders, members and associates of the organization.

    According to court documents, Heraclio Sanchez-Rodriguez, 57, is allegedly the leader of the transnational organized crime and drug trafficking ring targeting Alaska. Tamara Bren, 41, is a high-ranking member known as one of his “wives.” Per the new charges, from August 2022 to September 2023, Bren and Sanchez-Rodriguez allegedly conspired to launder money by directing members of the enterprise to use money transferring services, like wire transfers, mobile applications and money orders, to attempt to launder over $1.3 million in drug proceeds.

    Court documents also charge Sanchez-Rodriguez with allegedly altering and falsifying investigative reports by the DEA, FBI, and U.S. Postal Inspection Service, to impede, obstruct and influence the investigation on Dec. 20, 2023.

    According to the superseding indictment, law enforcement has seized over 92 kilograms of fentanyl, 26 kilograms of meth, 11 kilograms of heroin and 110 grams of cocaine in connection to this enterprise.

    In addition to the original charges, Sanchez-Rodriguez and Bren are charged with one count of money laundering conspiracy in violation of 18 U.S.C. §1956(h), and Sanchez-Rodriguez is charged with one count of obstruction of justice in violation of 18 U.S.C. §1519.

    U.S. Attorney S. Lane Tucker of the District of Alaska, Assistant Special Agent in Charge David Zahn of the Drug Enforcement Administration Anchorage District Office, Inspector in Charge Anthony Galetti of the U.S. Postal Inspection Service Seattle Division, Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office and Special Agent in Charge Adam Jobes of the IRS Criminal Investigation Seattle Field Office made the announcement.

    The Drug Enforcement Administration Seattle Division Office and Anchorage District Office, FBI Anchorage Field Office, IRS Criminal Investigation Seattle Field Office, U.S. Postal Inspection Service Seattle Division and Anchorage Domicile, Homeland Security Investigations Anchorage, Alaska Office, Alaska State Troopers, Anchorage Police Department and Palmer Police Department, with significant law enforcement support from the U.S. Marshals Service, are investigating the case.

    Assistant U.S. Attorneys Stephan Collins, Christopher Schroeder, Karen Vandergaw and Alana Weber are prosecuting the case.

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

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

    ###

    MIL Security OSI –

  • MIL-OSI Security: Rochester Man Charged with Receipt and Possession of Child Pornography

    Source: US FBI

    ROCHESTER, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Daniel P. Walsh, 58, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography. The charges carry a maximum penalty of 20 years in prison, and a $250,000 fine.

    Assistant U.S. Attorney, Kyle P. Rossi, who is handling the case, stated that the according to the complaint, in November 2024, the National Center for Missing and Exploited Children received a report from Google that an individual using an account registered in Walsh’s name, from Walsh’s IP address, uploaded multiple images of child pornography to Google’s platforms. Rochester Police and the FBI executed a search warrant at Walsh’s residence, during which they seized multiple computers and other digital devices. A forensic examination of those devices revealed that Walsh had received and possessed hundreds of images of child pornography, to include child pornography depicting prepubescent minors engaged in sexual conduct with adults. In many instances, Walsh had superimposed the faces of minors that he knew onto the images.

    The defendant made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was released on conditions.

    The criminal complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.                  

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

    # # # #

    MIL Security OSI –

  • MIL-OSI Security: Arizona Man Sentenced to 10 Years for Role in Trafficking Fentanyl to Alaska

    Source: US FBI

    ANCHORAGE, Alaska – An Arizona man was sentenced today to 10 years in prison and three years’ supervised release for supplying hundreds of thousands of fentanyl pills to Alaska over multiple months.

    According to court documents, Odarious Shaw, 25, distributed fentanyl pills to Alaska twice a week for over six months in quantities of 40-50,000 pills per shipment. In some instances, the defendant would ship as many as 500,000 pills at a time.

    Law enforcement learned that Shaw would obtain pills in Arizona and instruct buyers in Alaska to send him $150 via a money transferring service to confirm the transaction. He would then provide a date when a courier would arrive on a commercial flight at the Anchorage airport with the drugs in their checked luggage. Upon arrival, the courier would deliver the pills to the buyer, pick up the cash payment for the drugs and immediately board a flight back to Arizona to deliver the money to Shaw.

    On June 25, 2023, Shaw’s courier and codefendant, Corrion James, 26, arrived at the Ted Stevens International Airport in Anchorage on a flight from Phoenix, Arizona, with a package containing over 41,000 fentanyl pills. James was arrested at the airport after attempting to sell the pills to the arranged buyer. Those pills had an estimated street value of $400-600,000 in Anchorage, and as much as $4.8 million in rural Alaska.

    Shaw continued to try to sell drugs in Alaska after James was arrested but was subsequently arrested in Arizona in August 2023. James pleaded guilty in February 2024 and was sentenced to over three years in prison for his role in the conspiracy.

    At sentencing, Chief U.S. District Court Judge Sharon Gleason found that Shaw was a leader or organizer of the drug trafficking activity in this case and said that she hopes this sentence deters people motivated by greed from trafficking this deadly drug to Alaska.

    “A single pill can destroy someone’s life and the amount of fentanyl Mr. Shaw supplied to Alaska could destroy entire communities,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Illegal fentanyl has absolutely no place here. My office will continue to hinder the inflow of illegal fentanyl into our state by working with our law enforcement partners to disrupt the supply and distribution of this poisonous drug.”

    “During the course of this investigation, the FBI and our law enforcement partners intercepted tens of thousands of illicit fentanyl pills before reaching local Alaska communities, preventing untold violence and devastation,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “With a task force approach, the FBI and our law enforcement partners will continue to identify, disrupt, and hold accountable those who are fueling drug trafficking activities in Alaska.”

    The Alaska State Troopers, Anchorage Police Department and the FBI Anchorage Field Office investigated the case as part of the FBI Safe Streets Task Force and the Alaska High-Intensity Drug Trafficking Area (HIDTA) initiative.

    Assistant U.S. Attorney Christopher Schroeder prosecuted the case.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Ketchikan Man Sentenced to 13 Years and Four Months for Running Child Pornography Distribution Group Chat

    Source: US FBI

    JUNEAU, Alaska – A Ketchikan man was sentenced today to 13 years and 4 months in prison for distributing child pornography through a group messaging platform.

    According to court documents, Walter William Onstad, 46, was an administrator of a messaging group known as “Anything Goes.” The chat was used exclusively to exchange child pornography, with some of the visuals depicting the sexual abuse of pre-pubescent minors.

    Court documents say investigators with the National Center for Missing and Exploited Children received a tip in April 2022 that an individual, later identified as Onstad, sent at least 12 images and videos of child pornography to another user through the messaging platform.

    An investigation revealed that Onstad solicited images depicting child sexual abuse from those wanting to enter the “Anything Goes” group chat. The defendant would personally verify the images, upload the images to the group chat and grant access to people who provided them.

    As the investigation continued, the defendants cell phone was taken by law enforcement and over 300 images and 40 videos of child sexual abuse were in his possession on the phone. The defendant admitted to being responsible for the possession and distribution of over 600 images. Some of the images he possessed and distributed included the sexual abuse of minors as young as infants and toddlers.

    “Mr. Onstad contributed to the victimization of children by running a child sexual abuse material distribution chat and was responsible for sharing hundreds of images of innocent children,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work with law enforcement to relentlessly pursue, arrest and prosecute individuals who traffic images of child sexual abuse and hold them responsible for the incalculable damage they’ve caused.”

    “Innocent children are revictimized each time CSAM is distributed,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “As an administrator of a CSAM distribution operation, Walter Onstad fueled a market that preys on our most vulnerable. No matter how they commit their crimes, those who sexually exploit children will be pursued and held accountable by the FBI and law enforcement partners, for justice and the safety of our children.”

    The Juneau Resident Agency of the FBI Anchorage Field Office, with assistance from the Ketchikan Police Department and North Carolina’s Internet Crimes Against Children (ICAC) Task Force, investigated the case.

    Assistant U.S. Attorney Jack Schmidt prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Chicago Man, Woman Charged in Fraud Scheme Targeting North Pole Business

    Source: US FBI

    FAIRBANKS, Alaska – A federal grand jury in Alaska returned an indictment charging a Chicago man and woman with allegedly running a scheme to defraud a North Pole restaurant of over $128,000.

    According to court documents, from July to August 2022, Jacob Centeno, 39, and Amber Davila, 35, allegedly illegally obtained banking and identification information for the restaurant and restaurant owner by gaining access to their email. The defendants used this information and access to misrepresent themselves as the owner and divert proceeds from the owner’s bank account to a different account registered under a false identity that the defendants created and had access to.

    In total, roughly $128,246 was diverted to the defendants’ fraudulent bank account between Aug. 4 and Aug. 9, 2022.

    As part of the scheme, Centeno and Davila allegedly purchased over $41,000 worth of money orders from the fraudulent bank account over the course of multiple days in Chicago. They then deposited the money orders into their various personal and business accounts in aggregate amounts of less than $10,000. Finally, to further conceal their scheme, they withdrew money from a business account registered in their names and deposited it into their personal accounts.

    Centeno and Davila were arrested in Chicago on June 4 and are charged with one count of aggravated identity theft in violation of 18 U.S.C. §1028A(a)(1), one count of conspiracy to commit wire fraud in violation of 18 U.S.C. §1349, five counts of wire fraud in violation of 18 U.S.C. §1343, one count conspiracy to commit money laundering in violation of 18 U.S.C. §1956(h), 18 U.S.C. §1956(a)(1)(B)(i), and eight counts of money laundering in violation of 18 U.S.C. §1956(a)(1)(B)(i). The defendants will make their initial court appearance on a later date. If convicted, they face a mandatory minimum of two years for aggravated identity theft, which is served consecutive to any other sentence for their alleged crimes. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.

    The FBI Anchorage Field Office, FBI Fairbanks Resident Agency, FBI Chicago Field Office and North Pole Police Department are investigating the case.

    Assistant U.S. Attorneys Carly Vosacek and Michael Heyman are prosecuting the case. The U.S. Attorney’s Office, Northern District of Illinois provided significant legal support in this case.

    If you or someone you know might be a victim of fraud or other crime, you can report it to the FBI at tips.fbi.gov or through the Internet Crime Complaint Center (IC3) at ic3.gov.

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

    ###

    UPDATE: This release has been updated to no longer state that the indictment came back “today” and correct the year in paragraph three from “2024” to “2022” in the text. 

    MIL Security OSI –

  • MIL-OSI Security: Chinle Man Sentenced to 25 Years in Prison for Kidnapping and Assault

    Source: US FBI

    PHOENIX, Ariz. – Jared Josh John, 32, of Chinle, was sentenced on September 11, 2024, by United States District Judge Diane J. Humetewa to 25 years in prison, followed by five years of supervised release. After a jury trial in May 2023, John was convicted of Carjacking, Kidnapping, Robbery, Assault with a Dangerous Weapon, Assault with Intent to Commit Murder, Assault with Intent to Commit a Felony, and Assault Resulting in Serious Bodily Injury.

    In July 2020, the victim was passing through the Navajo Nation on a road trip when John and a co-defendant broke into his car while he was resting for the night. Led by John, the two co-defendants drove the victim into the desert, where John slit the victim’s throat three times and left him to die. The victim survived by playing dead until the defendants left, and then used his clothes to fashion a tourniquet for his neck before going to find help.

    John’s co-defendant, Everickk Matthew Begay, 55, of Chinle, pleaded guilty to Kidnapping, Robbery, and Assault with Intent to Commit a Felony on March 20, 2023. Begay was sentenced on August 14, 2023, to 97 months in prison, followed by five years of supervised release.

    The Federal Bureau of Investigation and the Navajo Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Alanna R. Kennedy and Tracy Van Buskirk, District of Arizona, Phoenix, handed the prosecution.
     

    CASE NUMBER:            CR-21-08113-PCT-DJH
    RELEASE NUMBER:    2024-134_Begay et al.

    # # #

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

    2024-134_Begay et al.

    MIL Security OSI –

  • MIL-OSI Security: Four Leaders of Notorious Nuestra Familia Prison Gang Convicted of Racketeering and Related Crimes

    Source: US FBI

    Trial Evidence Established Defendants Furthered the Aims of the Gang from Prison By Directing Other Members and Associates to Perform Numerous Criminal Acts Including Drug Dealing and Murder

    OAKLAND – A federal jury found David Cervantes (aka “DC”), James Perez (aka “Conejo”), Guillermo Solorio (aka “Capone” aka “Caps”), and George Franco (aka “Puppet”) guilty of racketeering, for their roles as senior members of the Nuestra Familia criminal enterprise, which engaged in murder conspiracies, attempted murder, drug distribution, and money laundering. The jury’s verdict follows a 12-week trial before the Hon. Yvonne Gonzalez Rogers, U.S. District Judge.    

    “Prison gangs are a blight on the criminal justice system and on society,” said Martha Boersch, Chief of the Office of the U.S. Attorney’s Criminal Division. Prisons are supposed to protect the community from further crime and offer people the chance for rehabilitation, but prison gangs frustrate both goals. They perpetuate violence and criminality inside prisons, and through the use of contraband cell phones, gang leaders are able to oversee vast criminal networks on the streets. Successful prosecutions like this send an unmistakable message that this will not be tolerated simply because it’s happening behind prison walls.”  

    “These convictions are the culmination of eight years of complex investigative work by the FBI-led Santa Clara County Safe Streets Task Force. Through tireless investigative efforts and collaboration with our law enforcement partners, we have dismantled a core part of this criminal enterprise, whose illicit drug distribution and violent crime have long plagued our community,” said FBI Special Agent in Charge Robert Tripp. “The FBI remains committed to ensuring that those who lead and engage in such violence, no matter where they operate, are brought to justice.”

    The evidence at trial established that the four defendants—Cervantes, 76; Perez, 70; Solorio, 45; and Franco, 59 – all were senior members of the Nuestra Familia (NF) prison gang, all serving on the General Council, the primary decision-making body for the gang.  Through the testimony of more than 50 witnesses and dozens of wiretapped phone calls, the trial evidence revealed a lucrative and violent criminal enterprise with a presence in every Bay Area county and the roles that each defendant played in it.  

    The trial evidence established that Cervantes was one of the NF’s three “Generals.” As outlined in the Nuestra Familia’s written Constitution, the three generals sat atop the NF organizational structure and made final decisions on serious matters involving governance of the enterprise.  As the sole member of the General Advocates Office, Cervantes oversaw member discipline—a role that at times included deciding when members should be attacked or killed for violating gang rules.  Further, the trial evidence established that Cervantes was responsible for (1) receiving “complaints” containing allegations of member wrongdoing within the NF, (2) appointing investigators to look into alleged wrongdoing of gang members, (3) accepting and modifying “findings and recommendations” of the investigators, and (4) forwarding final recommendations regarding member discipline to a seven-member General Council. Cervantes also was the “Regimental Commander” of the NF street gangs in Kings County.  As Regimental Commander, Cervantes was responsible for overseeing, managing, directing, and otherwise controlling criminal activity conducted by Norteño street gang members in Kings County.  In addition to convicting Cervantes of Racketeering Conspiracy, the jury found Cervantes responsible for the conspiracies to murder Lorenzo “Lencho” Guzman in 2015 and John “Shanks” Reyna in 2019, as well as the attempted murders of Antonio “Sombras” Villagrana in 2015, John “Knockers” Muzquiz in 2016, and Matt Rocha in 2019.  

    The trial evidence demonstrated Perez was another General of the prison gang, specifically, the “General of Prisons.” In this role, Perez was responsible for maintaining authority over all NF regiments within the California prison system. His responsibilities included appointing NF members and associates to leadership positions within California Department of Corrections and Rehabilitation (CDCR) facilities, as well as overseeing and regulating criminal activity occurring in these facilities. In his role as General of Prisons, Perez collected a portion of profits from the prison regiments.  He also was the Regimental Commander of the San Mateo County Street Regiment.  In addition to convicting Perez of Racketeering Conspiracy, the jury found Perez responsible for the conspiracy to murder Lorenzo “Lencho” Guzman, as well as the attempted murders of Antonio “Sombras” Villagrana, John “Knockers” Muzquiz, and Matt Rocha.  

    At trial, the evidence established that Franco was a member of the NF’s “Inner Council” and was Regimental Commander of San Joaquin County.  As a member of the Inner Council, Franco was an advisor to the three NF Generals (two of whom were Cervantes and Perez) and was part of the General Council that, in addition to member discipline, made other significant decisions in conducting the affairs of the NF.  In addition to convicting Franco of Racketeering Conspiracy, the jury found Franco responsible for the conspiracy to murder Lorenzo “Lencho” Guzman, as well as the attempted murder of Matt Rocha.  

    Solorio also was part of the NF “Inner Council” and was an advisor to the NF Generals.  Solorio also was the Regimental Commander over the Monterey County Street Regiment.  The evidence at trial demonstrated Solorio oversaw a prolific drug trafficking operation in Fresno, Calif.  In addition to convicting Solorio of Racketeering Conspiracy, the jury found Solorio responsible for the attempted murder of Matt Rocha.  

    In sum, all four defendants were found guilty of racketeering conspiracy, in violation of 18 U.S.C. § 1962, along with various special findings pertaining to the acts involving murder described above.  The maximum statutory sentence for each defendant is life in prison.  Judge Gonzalez Rogers scheduled the defendants’ sentencings for Mar. 6, 2025.

    The trial of these four defendants marks the culmination of the prosecution of the NF leadership in the Northern District of California.  The prosecution stems from a five-year investigation by the FBI, which resulted in the indictment of 54 Nuestra Familia members and associates, including defendants both on the streets and in California state prisons.  With the jury’s verdict this week, the government has now obtained convictions of all 7 members of the NF’s General Council, its entire senior leadership team.  

    This case is being prosecuted by Mari Overbeck, Leif Dautch, and Aseem Padukone of the Organized Crime Strike Force for the United States Attorney’s Office for the Northern District of California.  The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions), the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, with the assistance of the Santa Clara County Sheriff’s Office, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, and with support from the Alameda County Sheriff’s Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney’s Office, Santa Cruz County Sheriff’s Office, Modesto Police Department, the California Department of Corrections and Rehabilitation, San Francisco Police Department, the Stanislaus County Sheriff’s Department, Sunnyvale Department of Public Safety, and the FBI’s Cryptanalysis and Racketeering Records Unit.  

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

    MIL Security OSI –

  • MIL-OSI Security: Federal Prisoner Sentenced to 45 Years in Prison for Second-Degree Murder

    Source: US FBI

    TUCSON, Ariz. – Romeo Santino Giovanni, 46, was sentenced last week by Senior U.S. District Judge James A. Soto to 45 years in prison, followed by five years of supervised release. Giovanni pleaded guilty to Second Degree Murder on May 23, 2024.

    On July 5, 2016, Giovanni, who was then a federal prisoner at a United States Penitentiary, used a cloth makeshift clothesline to strangle his cellmate to death. Giovanni left pieces of paper on his cellmate’s body, including one that read “lights out.”

    The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Matthew C. Cassell, District of Arizona, Tucson, handled the prosecution.

    CASE NUMBER:           CR-17-1428-TUC-JAS
    RELEASE NUMBER:    2024-143_Giovanni

    # # #

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

    MIL Security OSI –

  • MIL-OSI Security: CEO of CardReady LLC Sentenced to Seven Years in Prison for $19 Million Credit Card Laundering Scheme

    Source: US FBI

    Defendant Created Phony Merchant Accounts to Obtain Credit Card Processing for Fraudulent Telemarketing Scheme

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that BRANDON BECKER, the former CEO of CardReady, LLC (“CardReady”), was sentenced today to seven years in prison for operating a credit card laundering scheme in which BECKER and his co-conspirators stole over $19 million based on false promises that they could reduce thousands of customers’ debt burdens. As part of this scheme, BECKER and his co-conspirators created dozens of sham merchant accounts and false merchant applications, defrauding a credit card processing company and federally insured bank into processing victim payments. BECKER previously pled guilty before U.S. District Judge Loretta A. Preska, who also imposed today’s sentence.

    Acting U.S. Attorney Matthew Podolsky said: “Over a two-year period, Brandon Becker and his co-conspirators preyed on nearly 20,000 victims who were trying to reduce their debt burdens. Becker tasked co-conspirators at CardReady to recruit straw owners for shell companies, and deceived credit card payment processors into fraudulently processing more than $19 million in stolen funds. With today’s sentence, Becker faces the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”

    According to the Superseding Indictment, court filings, and statements made in Court:

    BECKER was the CEO of CardReady, a Los-Angeles based company acting as a sales agent in the credit card processing industry.  As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, and submitted merchant applications on behalf of those merchants to an Independent Sales Organization (“ISO”), referred to in the Indictment as the “New York ISO.”  The New York ISO then evaluated the merchant applications, and referred acceptable merchant accounts for processing up the chain to Payment Processor-1 and to Bank-1.  Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards.

    In or about 2012, BECKER negotiated a deal with co-defendant STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”).  Under this deal, CardReady would retain approximately one-third of E.M. Systems’ credit card sale transactions in exchange for providing E.M. Systems access to the credit card processing network.  For roughly the next two years, SHORT and telemarketers working in boiler rooms for E.M. Systems cold-called customers and offered services, including debt consolidation and interest-rate reduction, which were prohibited by the applicable guidelines from Bank-1 and other associated processing entities (the “Guidelines”), and which – as BECKER knew – would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines.

    In securing payment card processing for E.M. Systems, BECKER concealed that E.M. Systems was the true underlying merchant.  Instead, BECKER and his subordinates and co-conspirators, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”).  The 26 signers for the 26 Sham Merchants typically had no business of their own, and lacked knowledge of E.M. Systems’ business.  In return for signing the paperwork provided to them, the signers were paid a nominal fee from CardReady. 

    BECKER and his co-conspirators prepared and coordinated fraudulent merchant applications for each of the Sham Merchants, through merchant applications that falsely described the Sham Merchants to make them look like legitimate independent businesses and to make it more likely that the associated Sham Merchant Account would be approved for processing by the New York ISO, Payment Processor-1, and Bank-1.  The merchant application for each Sham Merchant also concealed the Sham Merchant’s true association with E.M. Systems.

    By steering E.M. Systems’s payment processing through these Sham Merchant Accounts, BECKER accomplished a number of fraudulent purposes.  First, the use of these Sham Merchant Accounts made it possible for E.M. Systems and other high-risk merchants to conceal their identities from Payment Processor-1 and Bank-1 and to maintain payment card processing.  This was particularly relevant, as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services.  BECKER then caused CardReady to quickly replace the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of E.M. Systems and other high-risk merchants.  Second, the fraudulent processing scheme enabled E.M. Systems and other high-risk merchants to spread out their charges, refunds, and chargebacks across multiple Sham Merchant Accounts.  This enabled them to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.

    BECKER’s use of signers to deceive payment processors was not limited to the E.M. Systems scheme. BECKER and his agents and employees at CardReady systematized the recruitment of over 270 signers and the creation of over 800 Sham Merchant Accounts to be used by more than 30 high risk clients other than E.M. Systems between approximately 2012 and 2016, both before and after the E.M. Systems scheme.

    *                *                *

    BECKER, 53, of Los Angeles, California, pled guilty on August 30, 2024, to one count of conspiracy to commit wire fraud and bank fraud.  In addition to the prison sentence, BECKER was sentenced to three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05, and forfeiture of $11,405,964.00.

    STEVEN SHORT, 48, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud.  On May 2, 2023, SHORT was sentenced to 78 months in prison and three years of supervised release and ordered to pay restitution in the amount of $1,910,600.05 and forfeiture of $8,833,889.69.

    Mr. Podolsky praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.

    This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Vladislav Vainberg and Timothy Capozzi are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Former High-Ranking FDNY Official Sentenced to 20 Months in Prison for Role in Bribery Conspiracy

    Source: US FBI

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that BRIAN CORDASCO was sentenced to 20 months in prison for participating in a conspiracy to solicit and receive bribes in his role as a Chief of the New York City Fire Department (“FDNY”) Bureau of Fire Prevention (“BFP”).  CORDASCO previously pled guilty on October 8, 2024, before U.S. District Judge Lewis J. Liman, who also imposed today’s sentence.

    Acting U.S. Attorney Matthew Podolsky said: “As a chief of the Bureau of Fire Prevention, Brian Cordasco was entrusted to protect the people of New York City and to fairly represent their interests.  Instead, he repeatedly abused his position of power by expediting fire inspection services for those who paid him thousands of dollars in bribes.  The sentence imposed today sends a clear message that government officials who betray the public trust to line their own pockets will be met with just punishment.”

    According to the Indictment, plea agreement, and statements made in court:

    From 2021 to 2023, CORDASCO repeatedly abused his position as a Chief of the BFP by participating in a scheme to solicit and receive $190,000 in total bribe payments from a former FDNY firefighter named Henry Santiago, Jr.  In exchange for those bribe payments, CORDASCO used his authority within the BFP to improperly “expedite” BFP inspections and plan reviews for Santiago’s customers.  CORDASCO personally profited $57,000 as part of this scheme.  To carry out this conspiracy, CORDASCO lied to his BFP subordinates to justify otherwise improper expediting requests.  CORDASCO also lied to law enforcement when interviewed about his involvement in the scheme. 

    If you believe you have information related to bribery, fraud, or any other illegal conduct by FDNY or BFP employees, please contact squad6complaint@doi.nyc.gov or (212) 825-2402. If you were involved in such conduct, please consider self-disclosing through the SDNY Whistleblower Pilot Program at USANYS.WBP@usdoj.gov.

    *               *                *

    In addition to the prison term, CORDASCO, 49, of Staten Island, New York, was sentenced to two years of supervised release and ordered to pay forfeiture of $57,000 and a fine of $100,000.

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

    The prosecution of this case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Jessica Greenwood, Matthew King, and Daniel H. Wolf are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Former Bryant High School Teacher Pleads Guilty to Transportation of a Minor to Engage in Illegal Sexual Activity

    Source: US FBI

          LITTLE ROCK—Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced today that a former Bryant High School teacher has pleaded guilty to transporting a minor across state lines for the purpose of unlawful sexual activity. Heather Hare, 33, of Conway, entered this guilty plea earlier today before United States District Judge Lee P. Rudofsky.

          Judge Rudofsky will sentence Hare at a later date. Transportation of a minor to engage in unlawful sexual activity is punishable by not less than 10 years imprisonment and up to life imprisonment, and not less than five years of supervised release.

          The investigation into Hare revealed that Hare taught Family Consumer Science classes at Bryant High School and met the minor victim on his first day of his senior year. Hare began one-on-one counseling sessions with the minor victim, eventually giving him her personal phone number and primarily communicating with him through Instagram and Snapchat.

          Hare later told the minor victim that she had a dream of them having sex and gave him her home address in Conway. The minor victim and Hare had sex approximately 20 to 30 times throughout the 2021-2022 school term, including multiple times at her Conway residence, in her vehicle, and in her classroom and parking lots at Bryant High School.

          Between April 21 and April 24, 2022, Hare was the sponsor and chaperone for a field trip to Washington, D.C., as part of an extracurricular activity related to the Family Consumer Science courses Hare taught. During the field trip, which included four students, of which the minor victim was the only male student, Hare and the minor victim engaged in the unlawful sexual activity to which she pleaded guilty.

          “This former teacher took advantage of her position of trust and the vulnerability of a minor, using her role to entice and lure this minor into engaging in unlawful sexual activity,” Ross said. “Our office will continue to seek significant penalties against any educational professional who sexually abuse their students.”

          Hare was indicted on August 1, 2023, and charged with one count of interstate/foreign travel for prostitution/sexual activity by coercion and one count of transportation of a minor with intent to engage in criminal sexual activity. In exchange for her guilty plea, the remaining charge was dismissed.

          The case was investigated by the FBI, Bryant Police Department, and Saline County Sheriff’s Office and is being prosecuted by Assistant United States Attorney Kristin Bryant.

    # # #

    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

    X (formerly known as Twitter):

    @EDARNEWS 

    MIL Security OSI –

  • MIL-OSI Security: Sextortion: A Growing Threat Targeting Minors

    Source: US FBI

    Offenders Deceive and Manipulate Victims to Create Sexually Explicit Material for Extortion Purposes

    LITTLE ROCK, AR—The FBI wants to warn parents, educators, caregivers, and children about the dangers of online activity that may lead to the solicitation and enticement of a minor to engage in sexual acts.

    Sextortion involves an offender coercing a minor to create and send sexually explicit images or video. An offender gets sexually explicit material from the child and then threatens to release that compromising material unless the victim produces more. These offenders are seeking sexual gratification.

    Financially motivated sextortion is a criminal act that involves an offender coercing a minor to create and send sexually explicit material. Offenders threaten to release that compromising material unless they receive payment, which is often requested in gift cards, mobile payment services, wire transfers, or cryptocurrency. These offenders are motivated by financial gain, not necessarily just sexual gratification.

    Victims are typically males between the ages of 14 to 17, but any child can become a victim. For financially motivated sextortion, offenders are usually located outside the United States and primarily in West African countries such as Nigeria and Ivory Coast, or Southeast Asian countries such as the Philippines.

    These crimes can lead victims to self-harm and have led to suicide. From October 2021 to March 2023, the FBI and Homeland Security Investigations received over 13,000 reports of online financial sextortion of minors. The sextortion involved at least 12,600 victims—primarily boys—and led to at least 20 suicides.

    In the six-month period from October 2022 to March 2023, the FBI observed at least a 20% increase in reporting of financially motivated sextortion incidents involving minor victims compared to the same time period the previous year.

    “The exploitation of children is a reprehensible crime and will not be tolerated by the FBI,” said Special Agent in Charge Alicia Corder of the FBI’s Little Rock Field Office. “Our office will continue to work with our federal, state, and local law enforcement partners to protect Arkansas children from sextortion and hold these predators accountable.”

    If you or someone you know believes that they are a victim of sextortion or financially motivated sextortion, immediately report the activity to law enforcement. You can report it to the FBI by calling 1-800-CALL-FBI or visiting tips.fbi.gov.

    For more information on sextortion and financial sextortion, visit the FBI’s resources on the threats at: https://www.fbi.gov/sextortion and https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/sextortion/financially-motivated-sextortion.

    MIL Security OSI –

  • MIL-OSI Security: Jury Finds Registered Sex Offender From Michigan Guilty of Interstate Travel to Engage in Illicit Sexual Activity With a Minor; Sexual Exploitation of a Minor; and Receipt of Child Pornography

    Source: US FBI

          LITTLE ROCK—A registered sex offender from Michigan has been convicted of committing multiple sex offenses in Arkansas at the conclusion of a three-day trial. On Wednesday, a federal jury found Jeremy Robert Ward, 33, of Marine City, Mich., guilty on all nine counts for which he was indicted: one count of interstate travel with the purpose of enticing a minor to engage in sexual activity with a minor, six counts of sexual exploitation of a minor, one count of receipt of child pornography, and one count of travel with the purpose to engage in illicit sexual activity with a minor.

          The jury returned their verdict after deliberating for approximately 90 minutes. United States District Judge Kristine G. Baker presided over the trial and will sentence Ward at a later date. One of Ward’s charges carries a mandatory minimum sentence of 25 years in prison.

          “This defendant, who is already a convicted sex offender, continued this abhorrent behavior by acting on his desire to have sex with a minor. He used social media to seek out the victim and took advantage of her innocence,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “This verdict the jury reached sends a clear message that Arkansas juries will not hesitate to convict sex offenders for this type of conduct. If you seek to have sex with children, you will be caught and prosecuted to the fullest extent under federal law.”

          Ward was previously convicted in 2013 in Michigan of three counts possession of child sexually abusive material and one count of accosting a child for an immoral purpose. He is a registered sex offender in Michigan.

          Ward met the 12-year-old minor victim online in September 2022 when he added her to his Snapchat account. He exchanged messages with the victim for approximately three weeks before traveling to Arkansas from his home in Michigan to meet her. On October 15, 2022, he met her face-to-face when he drove up to her in his pickup truck while she was riding her bike near her neighborhood in Bryant. During her encounter with Ward, the victim began surreptitiously recording a portion of her exchange with him. On the video, Ward told her, “I was hoping to take you home” and “I just wish she [her mom] would let you go, especially since I drove all the way down here.” Ward also told the minor victim that she must “think I’m gonna kidnap you or something,” to which she replied, “You probably are about to at this point.” He later asked if she knew of any “private spots,” in an attempt to find a more secluded place to be with her.

          Around the same time, using an application on her cell phone, her father noticed she was outside of the established boundary where she was permitted to be. Her parents went to her location, and her father found the minor victim laying in the grass with Ward, whose pants were around his ankles. Ward then fled into the woods.

          The minor victim testified at trial that while she was in the field with Ward, he attempted to commit sexual acts with her. Subsequent investigation revealed that the victim and Ward communicated through video messages, some of which Ward recorded on his phone. The recorded video messages were recovered from Ward’s phone and included video and still images of the nude minor victim in the shower.

          “Each year thousands of children are targeted and victimized by child predators. Mr. Ward’s heinous crimes highlight the prevalent threat Arkansas youth and families face,” said Special Agent in Charge Alicia D. Corder of FBI’s Little Rock Field Office. “This case is yet another example of FBI Little Rock’s commitment to working with our partners to target individuals who seek to exploit the most vulnerable members of our community.”

          The statutory penalty for sexual exploitation of a minor ranges from not less than 25 years to not more than 50 years. The statutory penalty for traveling with the purpose of engaging in sexual activity with a minor is not less than 10 years imprisonment and up to life imprisonment. The statutory penalty for receipt of child pornography is not less than 15 years and not more than 40 years imprisonment. The statutory penalty for of travel with the purpose to engage in illicit sexual activity with a minor is not more than 30 years imprisonment. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not less than five years to life of supervised release.

          The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Amanda Fields.

    # # #

    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

    X (formerly known as Twitter):

    @EDARNEWS 

    MIL Security OSI –