NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: United States Files Forfeiture Action to Recover $6.7 Million in Stolen Funds

    Source: Office of United States Attorneys

    PORTLAND, Ore.—The United States Attorney’s Office (USAO) filed a civil forfeiture action to recover more than $6.7 million in funds alleged to be proceeds of a financial fraud scheme.

    “Civil forfeiture is a powerful and important tool in cases like this, and it allows the government to move quickly to seize the stolen funds, seek legal ownership of them, and then promptly return them to the victims,” said Katie de Villiers, Chief of the Asset Recovery and Money Laundering Division for the District of Oregon. “This was only possible here because the crime was reported to law enforcement. The most important takeaway for the public is that if you find yourself the victim of a similar scam, do not delay in contacting law enforcement.”

    As alleged in the forfeiture complaint, in February 2025, the City of Portland was targeted by a business impersonation scheme. The scammer, posing as an employee of a company contracted by the city, gained access to a payment system and changed the contractor’s bank account information to an account provided by the scammer. In March 2025, the City of Portland notified law enforcement that a payment intended for the contractor had been diverted to an unauthorized bank account.

    On April 16, 2025, the USAO and FBI sought and obtained a federal seizure warrant. The same day, the FBI executed the warrant and seized $6,748,680 of fraudulently-obtained funds. The FBI was able to swiftly seize proceeds of the crime, which were still located in the unauthorized account.

    Federal law enforcement uses civil forfeiture to recover proceeds of a crime and attempt to return those proceeds to victims quickly. This is especially important in online-related scams where scammers are often overseas and unable to be identified, hindering a criminal prosecution and forfeiture.

    The case was investigated by the FBI and Portland Police Bureau. The civil forfeiture action is being handled by Julia E. Jarrett and Katherine A. Rykken, Assistant U.S. Attorneys for the District of Oregon.

    The accusations in the complaint, and the description of the complaint, constitute only allegations that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the property is subject to forfeiture.

    MIL Security OSI –

  • MIL-OSI USA: Congressman David Scott Requests $40 Million in FY2026 Community Project Funding Priorities for Georgia’s 13th District

    Source: United States House of Representatives – Congressman David Scott (GA-13)

    WASHINGTON D.C. – Today, Congressman David Scott (GA-13), a senior member of the House Agriculture and House Financial Services Committees, announced a list of fifteen Community Project Funding priorities in the 13th Congressional District for the Fiscal Year (FY) 2026 appropriations cycle.

    Each Fiscal Year, Members of Congress can request Federal funding from the House Committee on Appropriations for up to fifteen community projects in their home districts. As part of that process, Congressman David Scott solicited requests through stakeholder meetings and member level engagement and submitted the list of projects outlined below. These Federal dollars provide vital resources to improve transportation and water infrastructure, enhance public safety, and help veterans access lifesaving health care.

    “In every vote I cast and every bill I fight for, my focus is simple: delivering results for the people I represent in the 13th District,” said Congressman David Scott. The nearly $40 million in Federal funding I have requested are going directly back into our neighborhoods—to repair roads, modernize schools, expand access to clean water, and create good-paying jobs. These priorities represent crucial investments in infrastructure and services that will strengthen our communities and bolster local economies for Georgians. I look forward to working closely with officials from across the district on each request to ensure we address the needs of the hard-working families we serve.”

    Congressman Scott’s project include:

    Project Name: City of Jonesboro Pedestrian Improvements Project
    Explanation of Request: The City of Jonesboro would use this funding to make pedestrian improvement in high-traffic areas, including the installment of sidewalks, adding pedestrian crosswalks, installment of ADA accessibility features, lighting, and turnup/turndown walls as required to tie with existing grades.

    Project Name: Rockdale Veterans Transportation Assistance Project
    Explanation of Request: Rockdale County would use this funding to purchase a new vehicle to supplement its Veteran Transportation Program, which assists honorably discharged Rockdale County veterans of any age with trips to the Veterans Hospital in Decatur and the VA clinics in Stockbridge and Covington.

    Project Name: Newton County Sheriff Department Equipment Project
    Explanation of Request: The Newton County Sheriff’s Office would use this funding to purchase ten FAP-30 FBI-certified LES fingerprint sensors that would be used for mobile applications such as roadside stops, crime scene investigations, and serving warrants. Together, this equipment would give the law enforcement agency the capability to fingerprint offenders and victims efficiently and quickly.

    Project Name: Henry County Panola Road Resurfacing Project

    Explanation of Request: Henry County would use this funding to resurface 3.5 miles of Panola Road from Fairview Road to State Route 155. Panola Road serves as a critical east-west connection in northern Henry County, providing access to commercial areas, the City of Stockbridge, and the nearby Hartsfield-Jackson Atlanta International Airport.

    Project Name: Gwinnett County Walton Court Booster Station
    Explanation of Request: The Gwinnett County Board of Supervisors would use this funding to upgrade the booster station facility, including installing a standby power source and updating the existing electrical system. This project with ensure that Gwinnett County residents will have adequate access to drinking water.

    Project Name: Newton County Salem Road Utility Relocation Project
    Explanation of Request: The Newton County Water and Sewage Authority would use this funding to relocate 15,640 feet of critical water main, 75 valves, 26 fire hydrants, and 1,050 feet of 10-inch sewer piping to accommodate proposed improvements to State Route 162 in Newton County.

    Project Name: Clayton County Police Department Precinct Anti-Crime Taskforce Project
    Explanation of Request: The Clayton County Police Department would use this funding to purchase and outfit fifteen police cruisers which will conduct gang enforcement operations, surveillance, and offender apprehension. The police cruisers would be outfitted with lighting and siren systems as well as hardware kits that support the Police Department’s in-car cameras.

    Project Name: Lawrenceville Police Department Equipment and Technology Update Project
    Explanation of Request: The Lawrenceville Police Department would use the funding to purchase four standard police cruisers which would conduct high-visibility enforcement, first-aid kits, trauma bags, mechanical breaching kits, a hydraulic breaching kit, a reusable training breach door, 16’ telescopic ladders, public safety camera trailers,  Bluetooth communication equipment, safety barriers, ballistic shields, gas masks, and tactical camera kits.

    Project Name: City of Conyers Technology and Equipment for Strategic Preparedness Project
    Explanation of Request: The City of Conyers Police Department would use this funding to purchase a mobile command vehicle and LTE-enabled portable radios to improve officer preparedness during large-scale incidents, high-threat situations, hostage rescue, and disaster response while enhancing the safety of first responders and civilians.

    Project Name: MARTA Securing Rail and Bus Facilities Project
    Explanation of Request: MARTA would use this funding to install anti-climb, anti-cut fencing around at bus yards and rail yard facilities to prevent unauthorized access to hazardous and dangerous areas.

    Project Name: Rockdale River Trail Connector Project
    Explanation of Request: Rockdale County would use this funding to connect two disconnected portions of the Rockdale River Trail. Connection these two portions of the trail would provide greater access to centers of business, downtown Conyers, recreational opportunities, and the Monastery of the Holy Spirit.

    Project Name: Oxford Haygood Avenue Water Main Replacement Project
    Explanation of Request: The City of Oxford would use this funding to disconnect the existing iron water main, install a new resilient water main, and reconnect water services lines to ensure residents of the City of Oxford have necessary access to drinking water.

    Project Name: Jonesboro Enhancing Law Enforcement and Public Safety Project
    Explanation of Request: The City of Jonesboro Police Department would use this funding to purchase one portable message board trailer, three portable LED light tower trailers, one speed detection trailer, thirty stop sticks, four rapid ID devices, four alcohol detection services, eight police cruisers, ten laptops, thirty body cameras, and twenty-six in-car cameras. This equipment will improve officer reporting, access to real-time information, and public communication during public emergencies.

    Project Name: Alcovy Road Transmission Main Replacement Project
    Explanation of Request: Newton County would use this funding to install 4,200 linear feet of 36-inch water main to replace the existing transmission lines. This project would ensure potable water for nearly all residents of Newton County.

    Project Name: Gwinnett County Harvest Gwinnett Mobile Kitchen Project
    Explanation of Request: Gwinnett County would use this funding to purchase a 16-foot box truck with a lift for its “Live Healthy Gwinnett” initiative. The box truck with allow the county to more easily transport its mobile kitchens across cities and rural areas in the county.

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    MIL OSI USA News –

  • MIL-OSI USA: Labrador Letter: Idaho Cracks Down on Online Child Predators

    Source: US State of Idaho

    Home Newsroom Labrador Letter: Idaho Cracks Down on Online Child Predators

    Dear Friends,
    One of the most important responsibilities of the Idaho Attorney General’s Office is to protect children from online exploitation. As technology evolves, so do the tactics of those who wish to do harm. That is why our Internet Crimes Against Children (ICAC) Task Force is one of the most active and vital units in my office. In April, that commitment led to real results.
    Through a statewide enforcement effort known as Operation Unhinged, the Idaho Internet Crimes Against Children Task Force arrested 12 individuals for crimes involving the online exploitation of children. That number is twice the arrests made during the same month    last year. Seventeen residential search warrants were executed, and three cases have been accepted for federal prosecution. The remaining cases will move forward in Idaho state courts. Several additional investigations are ongoing as forensic experts continue to review the seized devices.
    The Task Force does more than just make arrests; we prosecute the crimes as well. The sentences we obtain are not just numbers. Each conviction represents a child who was protected, a predator who was apprehended, and a community that is now a little bit safer.
    When I became Idaho’s Attorney General, I learned from my team that our ICAC Task Force was facing a backlog of more than 1,400 tips. That was unacceptable. We took swift action to reform the structure and response protocols and hire additional personnel with funding from the Legislature. Today, ICAC responds to new tips within 24 hours. That change has made a real difference in protecting children and stopping abuse before it escalates. In fact, Idaho made more ICAC-related arrests last year, 55, than in the previous three years combined.
    Operation Unhinged was also Idaho’s contribution to a national proactive enforcement campaign that intensifies efforts during the months when children are more vulnerable online. But here in Idaho, we did more than just make arrests. We expanded community outreach, with ICAC attending 53 public safety events in April alone. Nearly 1,400 Idahoans participated in these events, gaining the tools they need to help keep children safe online. At the same time, our team trained 106 law enforcement professionals to better detect and investigate internet crimes against children.
    We also invested in advanced tools to meet evolving threats. One of our most effective new assets is Badger, Idaho’s newest Electronic Storage Detection K9 and a certified therapy dog. Badger is trained to locate hidden digital storage devices, such as thumb drives or SD cards, that criminals often attempt to conceal. During April’s operation, Badger helped locate crucial evidence in eight search warrants. He also participated in seven public presentations, providing both educational engagement and emotional support to our officers and the communities we serve.
    On the legal front, Idaho is leading the way. Last year, the Legislature passed House Bill 465, which criminalizes the use of artificial intelligence to generate child sexual abuse imagery. This new law equips our prosecutors with the tools they need to confront modern forms of exploitation and makes Idaho one of the first states in the country to respond to this emerging threat.None of these achievements would be possible without the dedicated cooperation of our law enforcement partners. Operation Unhinged involved agencies from every part of Idaho, including local police departments, county sheriffs, and federal partners such as the FBI and Homeland Security Investigations. I am grateful to each of them for standing with us in this mission.
    This work is not easy. It requires emotional strength and constant vigilance. But there is no more important calling than protecting the most vulnerable members of our communities. As Attorney General, I will continue to ensure our office has the tools, the talent, and the tenacity to carry out this mission.
    If you suspect a child is being exploited online, please contact your local police, call the ICAC Unit at (208) 947-8702, or file a report at www.cybertipline.com. To access internet safety resources or request a presentation in your community, visit ICACIdaho.org.
    Idaho is not just enforcing the law. We are leading a charge to protect our children and preserve their futures. We will never back down.
    Best regards,

    MIL OSI USA News –

  • MIL-OSI: Ninepoint Partners Announces Estimated May 2025 Cash Distributions for Ninepoint Cash Management Fund – ETF Series

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, May 23, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the estimated May 2025 cash distribution for the ETF Series of Ninepoint Cash Management Fund (the “Fund”). Ninepoint Partners expects to issue a press release on or about May 29, 2025, which will provide the final distribution rate. The record date for the cash distribution is May 30, 2025, payable on June 6, 2025.

    All estimates in this document are based on the accounting data as of May 22, 2025. Due to subscriptions and/or redemptions and/or other factors, the final May 2025 distribution may differ from these estimates and the difference could be material. The information included in this letter is for reference purposes only. Please reconcile all information against your official client statements. This is not intended to be a statement for official tax reporting purposes or any form of tax advice.

    The actual taxable amounts of distributions for 2025, including the tax characteristics of the distributions, will be reported to CDS Clearing and Depository Services Inc. in early 2026. Securityholders can contact their brokerage firm for this information.

    The per-unit estimated May 2025 distribution is detailed below:

    Ninepoint ETF Series Ticker   Cash Distribution per
    unit    		   Notional Distribution
    per unit    		 CUSIP
    Ninepoint Cash Management Fund NSAV   $0.11822   $0.00000 65443X105

    About Ninepoint Partners

    Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

    For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

    Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

    The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

    Sales Inquiries:

    Ninepoint Partners LP
    Neil Ross
    416-945-6227
    nross@ninepoint.com 

    The MIL Network –

  • MIL-OSI Security: SDTX charges another 282 people with immigration and related crimes in support of Operation Take Back America

    Source: Office of United States Attorneys

    HOUSTON – A total of 277 cases have been filed from May 16-22 in border-security related matters in the Southern District of Texas, announced U.S. Attorney Nicholas J. Ganjei. 

    The filed cases include 21 involving human smuggling. A total of 165 people are charged with illegally entering the country, while another 88 face charges of felony reentry after prior removal. Most of those individuals have prior felonies such as narcotics, violent crime, immigration crimes and more. Other relevant cases charged this week relate to other immigration crimes.

    Those charged by criminal complaint include two Mexican males found near Roma after being recently removed. Rogelio Torres and William Rocael have prior convictions for burglary and aggravated assault, respectively, and had been removed from the country just this year, according to the allegations. Another charged includes Roberto Martinez who had already previously received an 84-month sentence for the same crime. Regardless, he was found near Cuevitas after his removal in 2020. Five more Mexican males – Jose Salvador Orozco-Olivares, Jesus Misael Espinoza-Garza, Rigoberto Santana-Guerra, Gaspar Garcia-De La O and Celso Jassel Cantu-Mendiola are also charged with illegal reentry after being removed on dates ranging from 2018-2024 but found again in the Rio Grande Valley area this past week. They are also alleged to also have prior felonies. All of these individuals could face up to 20 years in federal prison, if convicted.

    As part of the ongoing efforts, charges are also being filed against those that have failed to register and be fingerprinted. In one such case this week, Victor Manuel Herrera-Herrera admitted he had illegally entered the United States in April 2024 near Brownsville and has remained in the country since that time without having registered or been fingerprinted as required by law.

    In addition to the new cases, the sixth and final person admitted her role in a human smuggling conspiracy that resulted in death. Cynthia Gabriela Muniz Carreon and five others were part of a transnational human smuggling organization responsible for moving illegal aliens across the southern border of Texas. Their actions led to the death of a Guatemalan man and several other dangerous events, including a rollover crash. Although many of the aliens were from Guatemala, the smuggling group instructed them to falsely claim Mexican nationality which ensured they would be removed to Mexico instead of their home country, making it faster and easier for the organization to smuggle them back into the United States. Ledgers revealed the organization generated approximately $79,000 in smuggling proceeds between April 12 and 17, 2024, alone. All six face up to life in federal prison.

    In McAllen, an illegal alien was sent to prison for 36 months after distributing cocaine with children in his vehicle. On Aug. 14, 2024, law enforcement conducted surveillance on Heriberto Marin-Hebert and observed him making hand-to-hand exchanges around McAllen. They conducted a traffic stop, at which time he threw a box containing of cocaine in a ditch in an attempt to avoid detection. Authorities found multiple individually wrapped baggies of cocaine in the box as well as additional baggies of cocaine, drug scales, drug paraphernalia, two firearms and over $12,000 in cash at his residence. 

    A Mexican national received 135 months for smuggling methamphetamine and heroin into the country in Brownsville federal court this week. Ramon Gustavo Alfaro Velez drove his Ford F-150 to the Veterans International Port of Entry. Authorities referred him to a secondary inspection, uncovering 43 bundles hidden within a non-factory compartment beneath the bed liner which contained a white substance that field-tested positive for methamphetamine, weighing 139 kilograms. Velez admitted he was being paid $4,000 to travel to Dallas, collect narcotics proceeds and transport them to Mexico. He also admitted he had knowingly transported proceeds into Mexico on at least five prior occasions.

    Also sentenced was a human smuggler for transporting aliens in his pickup truck after they had crossed the Rio Grande River via raft. Julian Alberto Soto tried to evade law enforcement by fleeing an attempted traffic stop at a high rate of speed. He eventually stopped, and authorities discovered all 10 passengers in his vehicle were in the country illegally. The court noted his involvement in a separate smuggling attempt involving 20 illegal aliens and found Soto’s repeated involvement in human smuggling warranted a sentence that would promote respect for the law and deter future illegal conduct. Judge Crane emphasized that the repeated violations took place in Roma and the close timing of these incidents demonstrated a pattern of recurring behavior. He received 46 months.

    In Houston, an illegal alien was ordered to serve 54 months this week for unlawfully returning to the United States. His term of imprisonment will run consecutively to another sentence for driving while intoxicated he received after running through a stop sign in August 2022. Rodolfo Hernandez-Marchan has previous convictions for illegal reentry, evading arrest and assault of a family member.

    Another human smuggler – a 38-year-old resident of Chatanooga, Tennessee – was ordered to serve 18 months after unlawfully transporting illegal aliens through the Falfurrias Border Patrol (BP) checkpoint. Upon his arrival, Josef Alquan Rutley claimed he was traveling to Laredo, denied having any passengers and said he was looking for a load. An x-ray scan revealed 22 illegal aliens locked inside the trailer with no means of escape. All were from the countries of Ecuador, El Salvador, Guatemala, Honduras and Mexico.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement (ICE) – Homeland Security Investigations, ICE – Enforcement and Removal Operations, Border Patrol, Drug Enforcement Administration, FBI, U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives with additional assistance from state and local law enforcement partners.

    The cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    Under current leadership, public safety and a secure border are the top priorities for this district. Enhanced enforcement both at the border and in the interior of the district have yielded aliens engaged in unlawful activity or with serious criminal history, including human trafficking, sexual assault and violence against children. 

    The Southern District of Texas remains one of the busiest in the nation. It represents 43 counties and more than nine million people covering 44,000 square miles. Assistant U.S. Attorneys from all seven divisions including Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo work directly with our law enforcement partners on the federal, state and local levels to prosecute the suspected offenders of these and other federal crimes. 

    An indictment or criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

    MIL Security OSI –

  • MIL-OSI Security: Colombian National Pleads Guilty to $66 Million Ponzi Scheme, Funded Chateau Wedding and Lavish Vacations with Investments

    Source: Office of United States Attorneys

    MIAMI – Efrain Betancourt, Jr., 36, a dual citizen of Colombia and the United States, pleaded guilty on May 21 to operating a $66 million Ponzi scheme through his payday loan company, Sky Group USA, LLC (Sky Group).

    According to the facts admitted at the change of plea hearing, Betancourt was the Chief Executive Officer and sole owner of Sky Group. Betancourt managed Sky Group and sold promissory notes to investors to raise funds. Betancourt and his co-conspirators claimed that Sky Group was in the business of funding small-dollar, short-term loans to consumer borrowers. To purportedly generate these short-term loans, Betancourt and his co-conspirators raised approximately $66 million from over 600 investors from January 2016 to March 2020.

    Betancourt made materially false statements to investors regarding the use of their funds, including that investor funds would be used for the sole purpose of making consumer loans and associated business costs. In truth, Betancourt operated a Ponzi scheme, generating revenue primarily through new investor money and using the newly raised money to make scheduled payments to previous investors.  Sky Group only made about $12.2 million off consumer loans, and Betancourt and his co-conspirators used millions of dollars to pay undisclosed sales agent commissions. Betancourt misappropriated over $6.5 million for his own personal use, including a luxurious wedding at a chateau in France and other lavish group vacations with friends and family.

    Betancourt’s sentencing hearing is set for August 14 before U.S. District Judge Darrin P. Gayles. Betancourt faces a maximum sentence of up to 20 years in prison.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; acting Special Agent in Charge Brett D. Skiles of the FBI Miami; and Russell C. Weigel, III, Commissioner, Florida Office of Financial Regulation (OFR) made the announcement.

    The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt, relating to the same investment fraud scheme alleged in the indictment. The SEC’s proceeding was resolved in July 2022.

    FBI Miami, the FBI’s South Florida Fraud Task Force, and OFR investigated the case. SEC’s Miami Regional Office provided assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20399.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Three people sentenced to prison for scheme to bill Medicare for millions of dollars in unnecessary medical equipment

    Source: Office of United States Attorneys

    ALEXANDRIA, Va. – Three people have been sentenced to prison for their roles in a multi-million-dollar Medicare billing scheme.

    According to court documents, in November 2018, Jeremie Vargas Ramirez, 50, of Vienna, Jordana Lee Arpa, 42, of Vienna, and several other business partners agreed to create Kynetic Medical Group, doing business as NOVA DME, a durable medical equipment (DME) supplier. Ramirez was the de facto owner of NOVA DME and handled the day-to-day business operations, including business development, advertising, marketing, and billing. Arpa and Ramirez agreed that Arpa would be named as President and CEO of NOVA DME to conceal from Medicare that Ramirez was NOVA DME’s true owner.

    NOVA DME was approved in June 2021 to operate as a Medicare provider based on Arpa’s false statements, and Arpa, on behalf of NOVA DME, acknowledged Medicare’s prohibition on direct solicitation to beneficiaries. Arpa’s false statements facilitated the fraud scheme.

    In early 2021, Ramirez enlisted Dennis William Karnes, 56, of Lake Elsinore, California, to help make NOVA DME more profitable. Karnes had worked in the DME industry since at least 2000 and had taught classes on wheelchair sales and billing. Ramirez asked Karnes for DME “leads,” a list of insured customers who needed and were prescribed DME.

    Karnes assisted in procuring “leads” from foreign-based coconspirators, but many of these leads were for Medicare beneficiaries who did not need or want DME. Karnes introduced Ramirez to co-conspirators in Mexico and Russia. Though the standard industry practice is to vet leads to ensure they are legitimate before billing Medicare or other insurers, Karnes and Ramirez knew the leads were not vetted. Based on the frequency of complaints and returns, they also knew that many of the leads were fraudulent, though NOVA DME still submitted claims for reimbursement to Medicare.

    Karnes acted as a health care consultant to Ramirez and NOVA DME. Even though Karnes knew Ramirez and NOVA DME submitted claims for unnecessary and unwanted DME for Medicare beneficiaries, if Medicare denied a claim, Karnes often altered and resubmitted claims for approval.

    Around February 2022, Karnes introduced Ramirez to a Russian-based co-conspirator who owns and controls multiple DME companies throughout the United States. Karnes also knew that all the owner’s U.S.-based companies were eventually closed, some due to suspicions of billing fraud. From around January 2022 until June 2024, Karnes was responsible for transferring money on behalf of the companies because he was U.S. based and could conduct financial transactions without arousing as much suspicion as would a Russian-based businessperson. In addition to Karnes, a Russian-based associate was responsible for all Medicare billing for the companies.

    From approximately February 2022 until December 2023, with Ramirez’s permission, the Russian-based owner and associate submitted claims for Medicare beneficiaries on behalf of NOVA DME. Medicare sent payment for approved claims to NOVA DME via check or direct deposit. They then directed Karnes how much money to collect from Ramirez for the leads and where to send the money. At the Russian-based owner’s direction, Karnes instructed Ramirez to make regular payments to the Russian-based owner via a shell company called Sharp Ventures, LLC, which facilitated the laundering of Medicare fraud proceeds to Russia and elsewhere outside the United States. The payments ranged from $10,000 to $50,000 on a roughly weekly basis.

    DME recipients and their caretakers returned the DME and complained directly to Ramirez that they did not request or need the DME they received. Ramirez frequently relayed those reports of returned DME and customer complaints to Karnes.

    From January 2022 through December 2023 NOVA DME billed Medicare approximately $13,526,920 and was paid approximately $7,610,462, of which at least $4,060,000 to the Russian-based owner via Sharp Ventures, LLC at Karnes’ direction. Over the same period, Medicare received at least 508 complaints from at least 491 Medicare beneficiaries about NOVA DME. The complainants reported beneficiaries did not receive services from the provider, did not know the provider, returned the items but did not receive a refunds, and suspected identity theft.

    From this scheme, NOVA DME, Ramirez, and Arpa received at least $2,256,787 in fraudulent proceeds from Medicare. Karnes personally profited at least $888,500.

    Ramirez pled guilty on Jan. 31 to conspiracy to commit healthcare fraud. On April 18, he was sentenced to two years in prison and ordered to pay restitution of $2,256,787.

    Karnes pled guilty on Jan. 31 to conspiracy to commit healthcare fraud. On May 2, he was sentenced to two years in prison and ordered to pay restitution of $2,256,787.

    Arpa pled guilty on Feb. 7 to conspiracy to making false statements relating to healthcare matters. She was sentenced today to sic months in prison and ordered to pay restitution of $2,256,787.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Emily Odom, Special Agent in Charge of the FBI Washington Field Office’s Criminal and Cyber Division; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.

    Assistant U.S. Attorney Zachary H. Ray prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1: 25-CR-13 (Ramirez); 1: 25-CR-14 (Karnes); and 1: 25-CR-15 (Arpa).

    MIL Security OSI –

  • MIL-OSI Security: Norman Man Sentenced to Serve 25 Years in Federal Prison for Production of Child Pornography

    Source: Office of United States Attorneys

    OKLAHOMA CITY – JACOB EDWARD KAMOLZ, 39, of Norman, has been sentenced to serve 300 months in federal prison for production of child pornography, announced U.S. Attorney Robert J. Troester.

    On September 17, 2024, a federal Grand Jury returned a four-count Indictment against Kamolz, charging him with production, attempted production, possession, and distribution of child pornography. According to public record, in August 2024, Kamolz connected with an FBI Online Covert Employee (OCE) who purported to be a juvenile on a social media messaging application. Over the course of several days, Kamolz sent child sexual abuse material (CSAM) to the OCE and requested that they send CSAM in return. Public record further reflects that, after his arrest, the FBI determined Kamolz produced CSAM with a child using his cell phone.

    On December 17, 2024, Kamolz pleaded guilty and admitted he used a minor to produce CSAM.

    At the sentencing hearing on May 20, 2025, U.S. District Judge Joe Heaton sentenced Kamolz to serve 300 months in federal prison, followed by supervised release for life. In announcing his sentence, Judge Heaton emphasized the nature and circumstances of the offense.

    This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorney Jordan Ganz prosecuted the case.

    This case is also part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.

    Reference is made to public filings for additional information. 

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  • MIL-OSI Security: Lawton Couple Pleads Guilty for their Roles in Child Sex Trafficking Conspiracy

    Source: Office of United States Attorneys

    OKLAHOMA CITY – NIA HALL, 30, and JACKIE DUNCAN, 35, both of Lawton, have pleaded guilty for conspiring to commit sex trafficking, announced U.S. Attorney Robert J. Troester. 

    On January 21, 2025, a federal Grand Jury returned a three-count Indictment against Hall and Duncan, charging them with sex trafficking of children, sex trafficking by force, fraud, or coercion, and conspiracy to commit sex trafficking. According to public record, in May 2024, two juveniles ran away from a juvenile group home in Lawton, Oklahoma, and were entered into law enforcement databases as missing juveniles. One of the juveniles was located by officers with the Plano Police Department on July 16, 2024, at a motel in Collin County, Texas, where she disclosed that she and the other missing juvenile had been sex-trafficked. The juvenile told officers that after she and the other juvenile had fled the group home, they were approached by two people, later identified as Hall and Duncan, at a gas station. The juveniles began living with Hall and Duncan, who soon after transported the juveniles to various cities in Texas, where they performed sex acts for money, which Hall and Duncan kept. In return, the juveniles were provided food and shelter. The juvenile told authorities she had recently escaped Hall and Duncan’s car in the Dallas area. On September 30, 2024, the second juvenile was found and recovered in San Antonio, Texas.  She recounted a similar story of being sex-trafficked by Hall and Duncan in exchange for food and shelter. During the investigation, local and federal law enforcement reviewed sex advertisements associated with Hall. These advertisements contained photos of the juveniles. Hall and Duncan were arrested on December 16, 2024.

    On May 19, 2025, Hall pleaded guilty to Count 3 of the Indictment, and admitted she knowingly worked with Duncan to recruit and transport the juveniles for purposes of commercial sex acts, and that she knew the victims were under the age of 18. Duncan pleaded guilty to Count 1 of the Indictment on April 30, 2025, and admitted he knowingly recruited two minors under the age of 18 to cause them to engage in commercial sex acts, and that he aided and abetted Hall to do the same. 

    At sentencing, Hall and Duncan face up to life in federal prison, Duncan faces at least 10 years in federal prison, and both face fines of up to $250,000. 

    This case is the result of an investigation by the Bureau of Indian Affairs, FBI, Lawton Police Department, Choctaw Nation Lighthorse Police Department, Oklahoma Highway Patrol, Oklahoma Bureau of Narcotics & Dangerous Drugs Control, Fort Smith Police Department, Arkansas State Police, San Antonio Police Department, Plano Police Department, and Fort Worth Police Department. Assistant U.S. Attorneys Jordan Ganz and Brandon Hale are prosecuting the case.

    This case is also the result of an investigation by the Tornado Alley Child Exploitation Task Force, which is led by HSI. The Tornado Alley Child Exploitation Task Force is an implementation of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse.  PSC 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 PSC, please visit www.justice.gov/psc.

    Reference is made to public filings for additional information.

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  • MIL-OSI Security: Arkansas Drug Ring and Their California Suppliers Sentenced to a Combined 132 Years in Federal Prison

    Source: Office of United States Attorneys

    EL DORADO – Fifteen members and associates of a South Arkansas drug trafficking organization, including two Los Angeles-area narcotics suppliers, have been sentenced to serve a combined 1,591 months in the U.S. Bureau of Prisons.  The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place between August 7, 2024, and May 21, 2025, in the United States District Court at El Dorado, Arkansas.  There is no parole in the federal system. 

    According to court records, between August 2021 and August 2022, Christopher Walters, age 45, of Magnolia, operated a drug trafficking organization (DTO) responsible for distributing kilograms of methamphetamine in and around Columbia County, Arkansas.  Walters sourced bulk methamphetamine from Michael Cummings, a 46-year-old Southern California business owner who doubled as an interstate narcotics supplier.  Cummings employed Robert Leonne Morris, age 47, of Los Angeles, to deliver methamphetamine and other drugs to Walters in Arkansas, at times by rail.  Walters then engaged numerous South Arkansas DTO members and associates in storing, transporting and distributing that methamphetamine, and attempting to do so, before sharing the substantial profits with Cummings.

    On August 10, 2022, the Federal Bureau of Investigation (FBI) and its state and local partners executed search warrants at multiple Columbia County properties owned or controlled by DTO members and associates, including Walters.  In so doing, investigators found and seized methamphetamine, fentanyl, cocaine, more than 15 firearms, including tactical rifles, and thousands of dollars in cash.

    Between September 2022 and March 2023, a federal grand jury sitting in the Western District of Arkansas returned indictments charging 15 members and associates of Walters’ DTO, including Cummings and Morris, with a total of fifty (50) felony counts.  All 15 defendants pleaded guilty to one or more felony violations of the Controlled Substances Act, and have been sentenced as follows:

     

    Defendant

    Prison Term

    Sentence Date
    Christopher Walters, 45, of Magnolia, Arkansas

    222 months

    December 6, 2024
    Michael Cummings, 46, of Los Angeles, California

    162 months

    March 21, 2025
    Jvance Radford, 47, of Magnolia, Arkansas

    144 months

    August 22, 2024
    Joseph Lowe, 38, of Magnolia, Arkansas

    140 months

    August 12, 2024
    Robert Leonne Morris, 47, of Los Angeles, California

    121 months

    May 21, 2025
    Lacadran D. Thomas, 37, of Magnolia, Arkansas

    120 months

    August 22, 2024
    Marcus S. Jordan, 42, of Waldo, Arkansas

    110 months

    December 4, 2024
    Hendrick Johnson, 27, of Magnolia, Arkansas

    108 months

    September 11, 2024
    Dawnisha D. Jordan, 40, of Magnolia, Arkansas

    98 months

    August 7, 2024
    John L. Grissom, 40, of Magnolia, Arkansas

    97 months

    August 7, 2024
    Jarrod D. Wilson, 38, of Magnolia, Arkansas

    78 months

    March 20, 2025
    Nyterious L. Sharp, 32, of Waldo, Arkansas

    60 months

    August 23, 2024
    Antonio J. Johnson, 41, of Magnolia, Arkansas

    54 months

    August 22, 2024
    Malaysia D. Benjamin, 36, of Los Angeles, California

    41 months

    December 5, 2024
    Mario L. Meadows, 36, of Magnolia, Arkansas

    36 months

    May 21, 2025

     

    In addition to his 162-month prison sentence, a $100,000 money judgment was also entered against Cummings, representing his profits from the year-long conspiracy to distribute methamphetamine in South Arkansas.  That judgment is executable against Cummings’ assets in California and elsewhere. 

    U.S. Attorney David Clay Fowlkes made the announcement.

    The case was investigated by the Magnolia Police Department, the 13th Judicial District Drug Task Force, the Union County, Arkansas, Sheriff’s Office, the El Dorado Police Department, the Arkansas State Police and the Federal Bureau of Investigation.

    Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.

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

    Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

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  • MIL-OSI Security: Utah Drug Trafficking Ringleader Sentenced to 22 Years in Prison

    Source: Office of United States Attorneys

    Career offender and previously convicted felon of drug-related crimes ordered by the court to forfeit over $300,000 in cash, three firearms and two vehicles

    SALT LAKE CITY, Utah – Llobani Federico Figueroa, aka “Pablo,” 33, of Magna, Utah, was sentenced to 264 months’ imprisonment after he admitted to operating a continuing criminal enterprise in the District of Utah, which had ties to California and Mexico.

    The sentence, imposed by U.S. District Court Judge Howard C. Nielson, Jr., comes after Figueroa pleaded guilty on December 11, 2024, to continuing a criminal enterprise and possession of methamphetamine with intent to distribute. In addition to the sentence, Figueroa was ordered by the court to 10 years’ supervised release and forfeited over $300,961.00 in U.S. currency, three firearms, firearm accessories and ammunition, and two vehicles.

    According to court documents and statements made at Llobani’s change of plea and sentencing hearings, Figueroa, beginning at the age of 18, engaged in over a decade-long series of drug trafficking offenses. However, between at least December 2022 and August 2023, Llobani engaged in continuous drug trafficking. Specifically, according to court documents, Figueroa was the primary conduit among multiple Californian and Mexico-based sources of supply and broker/distributors in the District of Utah. Figueroa admitted that he regularly obtained methamphetamine, heroin, and cocaine. He then caused those controlled substances to be transported to Utah by courier, and he maintained various locations in which the controlled substances were stored and sold. His drug trafficking enterprise involved five or more people, including his co-defendants and others. See prior press release here: Utah Fugitive and Alleged Drug Trafficking Ringleader Among 28 Defendants Charged in Major Multi-Agency Operation.

    Llobani further admitted his role in the drug trafficking organization was as a manager or supervisor and he recruited other participants and organized couriers to distribute controlled substances on his behalf. He then delegated other responsibilities to his coconspirators and admitted his organization could not have functioned without the involvement and assistance of these others.

    In addition to Figueroa’s prior convictions, he is the subject of three pending criminal cases with the state of Utah. The pending charges include, but are not limited to, possession with intent to distribute a controlled substance, a first degree felony; distribution of methamphetamine, a federal class A felony; and manslaughter, a second degree felony.

    “As a decades-long drug-trafficker, Mr. Figueroa has been a threat and danger to the people of our state,” said Acting U.S. Attorney Felice John Viti for the District of Utah. “His well-deserved decades-long sentence will serve as a reminder that those who peddle poison into our communities in violation of federal law for their own financial gain will face justice and forfeit their ill-gotten gains.”

    “An individual struggling with substance abuse isn’t just a statistic. It’s someone’s son, daughter, a friend. Too many families have been devastated by an epidemic that Mr. Figueroa directly contributed to,” said Special Agent in Charge Mehtab Syed of the Salt Lake City FBI. “Drugs and violent crime go hand-in-hand. The FBI is committed to dismantling criminal organizations in our steadfast effort to keep our communities safe.”

    “This operation exemplifies the dedication and skill of our street crimes unit,” said West Valley City Police Chief, Colleen Jacobs. “Their meticulous investigation was key in the arrest of a significant drug trafficker, and led to the dismantling of a major source of illicit drugs in our state. This success underscores our unwavering commitment to public safety and the relentless pursuit of those who endanger our neighborhoods.”

    The case was investigated jointly by the FBI Safe Streets Violent Task Force and West Valley City Police Department.

    The U.S. Attorney’s Office for the District of Utah prosecuted the case. 
     

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  • MIL-OSI Security: United States Recovers Approximately $2.5 Million of Cryptocurrency Involved in Fraudulent Confidence Schemes

    Source: Office of United States Attorneys

                WASHINGTON – United States District Court Judge Amir H. Ali has ordered forfeiture of approximately $2.5 million worth of virtual currency involved in cryptocurrency confidence schemes to the United States, announced U.S. Attorney Jeanine Ferris Pirro, Chief John Lynch of the Computer Crimes and Intellectual Property Section of the Department of Justice, and FBI Special Agent in Charge Stacey Moy of the San Diego Field Office.

                “Whether they are in our district’s streets or hiding behind a computer screen abroad, the United States will continue to hold fraudsters and grifters responsible, seize money they scam from hardworking Americans, and use our authority to compensate victims,” said U.S. Attorney Pirro.

                “Cryptocurrency confidence schemes defraud and manipulate vulnerable victims into losing devastating amounts of money,” said Moy of the FBI’s San Diego Field Office. “We hope today’s announcement brings a measure of justice to the victims and serves as a reminder, the FBI will hold fraudsters accountable, no matter where they are located.”

                Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and fraud scams – should contact the FBI’s Internet Crime Complaint Center at https://www.ic3.gov.

                In this case and others, the United States of America utilizes asset forfeiture to punish and deter criminal activity by depriving criminals of property used in or acquired through illegal activities; to promote and enhance cooperation among federal and foreign law enforcement agencies; and most importantly, to recover assets that may be used to compensate victims. For more information, please visit https://www.justice.gov/afp.

                This matter was investigated by the FBI San Diego Field Office. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit provided valuable assistance. The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets.

               This case was prosecuted by Assistant U.S. Attorneys Rick Blaylock Jr., Asset Forfeiture Coordinator, and Kevin Rosenberg, Acting Deputy Chief of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia—along with Trial Attorney Stefanie Schwartz and Gaelin Bernstein from the Computer Crime and Intellectual Property Section of the Department of Justice. Supervisory Paralegal Gina Torres provided valuable assistance.

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  • MIL-OSI Security: Defendant Convicted in Armed Assault Gets 18 Year Prison Term

    Source: Office of United States Attorneys

                WASHINGTON – Aaron Brown, 29, of Washington, D.C., was sentenced today in Superior Court to 18 years in prison for assault with intent to kill (while armed) stemming from the killing of 13-year-old Malachi Lukes in March of 2020, announced U.S. Attorney Jeanine Ferris Pirro, FBI Assistant Director in Charge Steven J. Jensen of the Washington Field Office, ATF Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division, and Chief Pamela Smith of the Metropolitan Police Department (MPD).

                Brown also pleaded guilty to the assault with intent to kill charge on December 20, 2024, before Judge Rainey Brandt. Brown’s charge stemmed from his participation in a shooting after Lukes’s homicide. Previously, a jury found three of Brown’s co-defendants, Stephon Nelson, Tyiion Freeman and Koran Jackson—guilty of first-degree murder while armed, several counts of assault with intent to kill while armed, conspiracy to commit various firearms offenses and other firearms-related charges.  Freeman received 108 years; Jackson was sentenced to 164 years in prison while Nelson received 108 ½ years of incarceration.

                Between February 1, 2020, and May 31, 2020, the defendants, along with one other defendant (whose case was severed pre-trial and will be tried in August 2025), participated in a conspiracy to illegally possess, carry, and transfer firearms for the purpose of using those firearms in the commission of dangerous and violent crimes. Jackson, Freeman, Nelson along with Brown and the severed defendant, are members and associates of neighborhood crews. Between 2019-2020, the defendants’ neighborhood crews were feuding with other crews and the feud escalated when Tahlil Byrd, also known as Slatt Goon, was killed in September 2019.

                On March 1, 2020, Brown along with his co-defendants (Jackson, Freeman and the severed co-defendant) participated in two shootings in two separate neighborhoods over the span of 10 minutes. At 2:08 p.m., the defendants, who were traveling in a stolen Kia Soul, followed 13-year-old Malachi Lukes, along with his three friends, into the Ninth Street area of the 600 block of S Street, N.W., where two defendants exited the Kia Soul and opened fire on them. Malachi Lukes was shot in the back as he fled. The bullet traveled through his heart and lung causing him to collapse to his death. Brown remained in the car while the shooting took place. The defendants then traveled to another neighborhood where members of the rival crew were known to gather and at 2:18 p.m., opened fire on individuals in that block. No injuries were reported in that shooting spree. Brown was one of the shooters. 

                In announcing the sentence, U.S. Attorney Pirro, FBI Assistant Director in Charge Jensen, ATF Special Agent in Charge Spotswood and Chief Smith commended the work of those investigating the case from the MPD and ATF along with the Arlington County Police Department. They also thanked the Arlington County Sheriff Department; U.S. Marshals Service; U.S. Capitol Police; D.C. Department of Forensic Sciences; DOJ Computer Crime and Intellectual Property Section; Montgomery County Police Department; D.C. Department of Corrections; and the Internal Revenue Service—Atlanta Branch. 

                They also commended the efforts of those who provided assistance with the case including Lead Paralegal Sharon Newman, Supervisory Paralegal Tasha Harris, Paralegals April Urbanowski and Alyssa Schroeder, former Superior Court Operations Manager Linda McDonald, and Victim Witness Advocate Jennifer Allen. They acknowledged the work of Assistant U.S. Attorneys Michelle Jackson, Tamara Rubb, and Nebiyu Feleke, who prosecuted the case.

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  • MIL-OSI Security: Virginia Man Sentenced for Torching His Car on U.S. Capitol Grounds as Former President Carter Laid in State

    Source: Office of United States Attorneys

                WASHINGTON – Adrian J. Hinton, 36, of Lorton, Virginia, was sentenced today to one year of supervised release, plus 125 hours of community service, for setting his car ablaze with “napalm” on the grounds of the U.S. Capitol. The sentencing was announced by U.S. Attorney Jeanine Ferris Pirro and Chief J. Thomas Manger of the U.S. Capitol Police.

                Hinton pleaded guilty on Jan. 31, 2025, before U.S. District Court Judge Amit P. Mehta to a charge of destruction of government property.

                According to court documents, on January 8, 2025, Hinton drove his vehicle from Virginia into Washington, D.C., arriving shortly before 5 p.m. on U.S. Capitol Grounds. Hinton parked on First Street NW between Pennsylvania Avenue and Maryland Avenue near the memorial to Ulysses S Grant.

                Several minutes later, he removed a bottle containing an unknown liquid from his car. He spread the liquid on the top of the vehicle and ignited it. Bystanders reported the burning car to the U.S. Capitol Police. Along with USCP officers, agents responded from the FBI and the Bureau of Alcohol, Tobacco and Firearms and Explosives.

                Bomb technicians rendered the scene safe. Officers found no explosives or accelerants in the vehicle but found matches, a bottle, and a knife adjacent to the vehicle. After waiving his Miranda rights and agreeing to speak with law enforcement, Hinton told agents he had developed a plan to set his vehicle on fire near the U.S. Capitol to draw attention to his displeasure with the recent election results. Hinton said he had researched how to make homemade napalm with a mixture of household fluids.

                On January 8, 2025, President Carter was laying in state at the Capitol Rotunda and numerous elected officials were visiting the Capitol Rotunda.

                This case was investigated by the U.S. Capitol Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the FBI Washington Field Office. The matter is being prosecuted by Assistant U.S. Attorney Emory V. Cole.

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  • MIL-OSI Security: Two Texas Residents Operating a Visa Racket Indicted for Visa Fraud, Money Laundering, and RICO Conspiracy

    Source: Office of United States Attorneys

    Two Texas residents, Abdul Hadi Murshid, 39, and Muhammad Salman Nasir, 35, both originally from Pakistan, a law firm, and a business entity were charged by indictment with conspiracy to defraud the United States, visa fraud, money laundering conspiracy, and Racketeering Influenced and Corrupt Organization Act (RICO) conspiracy, announced Acting United States Attorney for the Northern District of Texas Chad E. Meacham.  Murshid and Nasir were also charged with unlawfully obtaining and attempting to obtain United States citizenship.

    According to the indictment, Abdul Hadi Murshid, Muhammad Salman Nasir, the Law Offices of D. Robert Jones PLLC, and Reliable Ventures, Inc. engaged in a scheme to commit visa fraud to enrich themselves and others, and to cause individuals to fraudulently obtain entry into and immigration status in the United States.  It is alleged that Murshid, Nasir, and others submitted and caused to be submitted false and fraudulent visa applications for individuals who were not United States citizens (hereinafter referred to as “visa seekers”), and applications to adjust status of the visa seekers so the visa seekers could enter and remain in the United States.

    “These defendants are charged with engaging in extensive measures to hide a massive, multi-year, immigration fraud scheme through which they reaped substantial personal financial gain,” said Acting U.S. Attorney Chad E. Meacham.  “Pursuing criminal charges to deter and punish this type of flagrant disregard for the lawful immigration process is a top priority of this Office.”

    “The defendants allegedly oversaw an international criminal enterprise for years that repeatedly undermined our nation’s immigration laws. These laws are necessary to protect national security and safeguard the lawful immigration process,” said FBI Dallas Special Agent in Charge R. Joseph Rothrock. “The FBI and our law enforcement partners will hold any individual accountable that misuses their position of trust for personal profit.” 

    As part of the scheme, the indictment alleges that the defendants exploited the EB-2, EB-3, and H-1B visa programs.  Specifically, the defendants caused classified advertisements to be placed in a daily periodical for non-existent jobs.  These advertisements were placed in order to satisfy a Department of Labor (“DOL”) requirement to offer the position to United States citizens before hiring foreign nationals.  Once they received the fraudulently obtained certification for from the Department of Labor, the defendants filed a petition to the U.S. Citizenship and Immigration Services (“USCIS”) to obtain an immigrant visa for the visa seekers.  At the time the petitions were submitted, the defendants also submitted an application for legal permanent residence so that the visa seekers could also obtain a green card.  According to the indictment, to make the non-existent jobs look legitimate, the defendants received payment from visa seekers, then returned a portion of the money back to the visa seekers as purported payroll. 

    The defendants made their initial appearances before U.S. Magistrate Judge Rebecca Rutherford on May 23, 2025, and the government moved for their detention. The detention hearings are scheduled for May 30, 2025, before U.S. Magistrate Judge Brian McKay.
    An indictment is merely an allegation of criminal conduct, not evidence.  Like all defendants, Murshid, Nasir, and the business entities are presumed innocent until proven guilty in a court of law. 

    If convicted, the defendants face up to 20 years in federal prison.  Murshid faces denaturalization if convicted of unlawfully obtaining and attempting to obtain his United States citizenship.

    The Federal Bureau of Investigation conducted the investigation.  The Department of Homeland Security – Homeland Security Investigations, U.S. Citizenship and Immigration Services, the Department of State Diplomatic Security Service, and the Department of Labor Office of Inspector General provided significant assistance to the investigation. Assistant U.S. Attorneys Ted Hocter, Tiffany H. Eggers, and Jongwoo Chung are prosecuting the case.
     

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  • MIL-OSI Security: U.S. Attorney’s Office Filed 134 Border-Related Cases This Week

    Source: Office of United States Attorneys

    SAN DIEGO – Federal prosecutors in the Southern District of California filed 134 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.

    The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

    In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

    A sample of border-related arrests this week:

    • On May 16, Elizabeth Janeth Ramirez-Martinez, a U.S. citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Ramirez-Martinez was stopped at the Otay Mesa Port of Entry by Customs and Border Protection officers, who found a Vietnamese national crammed into a compartment in the dash of her vehicle. The undocumented immigrant told officers that before they made their way to the border, the defendant had placed him in the compartment and secured it using screws.
    • On May 19, Fernanda Barrios Monzon, a legal permanent resident of the U.S., was arrested and charged with Bringing in Unlawful Aliens without Presentation and Importation of a Controlled Substance. According to a complaint, the defendant drove her vehicle through the San Ysidro Port of Entry but was stopped when a Customs and Border Protection officer noticed a man lying on the floor of the vehicle, under the feet of the defendant’s children. The officer further discovered 271 pounds of methamphetamine hidden throughout the vehicle.
    • On May 20, Gustavo Hernandez Oliveros, was arrested and charged with Deported Alien Found in the U.S. According to a complaint, Border Patrol agents located Hernandez Oliveros hiding in brush about two miles north of the border and two miles east of the Otay Mesa Port of Entry. He was previously deported in November 2018.

    Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:

    • On May 23, Jair Valdez-Hernandez, a Mexican national who was previously convicted of felony attempted carjacking in 2017, was sentenced in federal court to 10 months in custody for illegally entering the U.S. After illegally reentering the U.S., in July 2024, Valdez-Hernandez was convicted of corporal injury to a spouse/cohabitant and within the two months following that conviction was arrested twice for violating domestic violence protective orders.
    • On May 23, Rogelio Herrera-Rodriguez, a Mexican national who was previously convicted of voluntary manslaughter and corporal injury to a spouse causing great bodily injury and removed from the United States, was sentenced in federal court to 24 months for again reentering the U.S. illegally.
    • On May 23, Sacramento Sagrero-Pahua, a Mexican national, was sentenced in federal court to 36 months in custody for bringing aliens to the United States for financial gain. On August 26, 2023, Sagrero-Pahua guided a group of eight illegal aliens into the United States near Otay Mountain before being caught by Border Patrol agents. Among the group Sagrero-Pahua guided was an armed guard, who brought a gun with him to protect the group as it traveled toward the U.S.-Mexico border.
    • On May 19, 2025, Oscar Eduardo Audelo-Rodriguez, a Mexican national, who admitted to fleeing border patrol agents by boat in Mission Bay, was sentenced in federal court to 8 months in custody for alien smuggling.

    Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

    The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: U.S. Attorney’s Office for the Western District of Texas Adds 334 New Immigration Cases This Week

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    SAN ANTONIO – Acting United States Attorney Margaret Leachman for the Western District of Texas announced today, that federal prosecutors in the district filed 334 new immigration and immigration-related criminal cases from May 16 through May 22.

    Among the new cases, Salvadoran felon Erick Douglas Serrano-Aleman was arrested by Van Horn Border Patrol agents for being an illegal alien present in the U.S. A criminal complaint indicates Serrano-Aleman was previously convicted of transporting and selling a controlled substance as well as accessory. In 2004, he was convicted for illegal re-entry in Nogales, Arizona. Serrano-Aleman has been deported twice and allegedly claims to be a member of the Sureño 13 gang.

    In El Paso, multiple alleged human smugglers were arrested, including U.S. citizen Ernesto Covarrubias and Tanya Joselyn De La Paz-Nunez, a Mexican national in possession of a legal B1/B2 Visa Border Crossing Card. Covarrubias, as the vehicle driver, and De La Paz-Nunez allegedly picked up five illegal aliens inside a pecan orchard near the Tornillo Port of Entry, intending to transport them to a stash house.

    U.S. citizen Gabriela Ivon Trejo-Gonzalez was arrested after U.S. Border Patrol agents allegedly observed six individuals crawl through a breach in the border fence near the Paso Del Norte Port of Entry and board Trejo-Gonzalez’s vehicle. The defendant allegedly drove away at a high rate of speed and continued in an attempt to evade law enforcement before becoming inoperable. Trejo-Gonzalez allegedly claimed she would be paid $500 per alien. She was convicted for alien smuggling in New Mexico in June 2023 and probation violation in October 2023.

    Juan Pedro Carmona-Cerritos, a Mexican felon, was arrested in El Paso and charged with illegal re-entry. Carmona-Cerritos was last removed from the U.S. in April 2009. He was previously convicted of child abuse in 2004 and second degree reckless homicide in 2005 in Waukesha, Wisconsin, for which he was sentenced to a total of approximately three years in prison. Guatemalan national Ramon Cortes-Velasquez was also arrested for illegal re-entry in El Paso, having been convicted of assault causing bodily injury to a family member in February and removed from the U.S. to Guatemala in March.

    Mexican nationals Jose Rolando Arenas-Aleman and J Angel Nava-Sanchez were arrested near Del Rio. According to court documents, Arenas-Aleman was arrested May 14 by U.S. Border Patrol agents for being an illegal alien present in the United States. He had previously been removed to Mexico for the second time through Laredo on Sept. 6, 2024 following his second conviction for Driving While Intoxicated. Nava-Sanchez was arrested May 15 after allegedly crossing the Rio Grande River near Del Rio. Nava-Sanchez was convicted twice in Tarrant County. He was found sentenced to 45 days in jail for a DWI in July 2022 and 29 days in jail in August 2018, for assault causing bodily injury to a family member.

    A U.S. citizen was arrested May 19 during a traffic stop on Highway 85 near Dilley. A criminal complaint alleges that Alex Guadalupe Nieto was the driver of a vehicle transporting six illegal aliens. The complaint alleges that Nieto stated he and another individual drove from Houston, picking up the six illegal aliens on the side of the road, and that he had expected to be paid $500.00 to transport the aliens.

    In Austin, Mexican national Juan Robledo-Trevino aka Octavio Garcia-Sanchez was taken into federal custody by Immigration and Customs Enforcement after being arrested and sentenced to 10 days in the Travis County Jail for failure to identify. Robledo-Trevino has two prior convictions for illegal re-entry, and four previous DWI convictions. He’s been removed from the U.S. to Mexico four times, most recently in November 2016, and voluntarily returned to Mexico twice.

    Mexican national Jose Hernandez-Martinez was taken into ICE custody in Austin where he had been arrested for his second DWI and spent 20 days in the Travis County Jail. Hernandez-Martinez has a prior illegal entry conviction along with convictions for theft and assault causing bodily injury to a family member. He voluntarily returned to Mexico in 2006, and has been twice removed from the U.S.

    Edgar Aguilar-Mejia, a Guatemalan national, was also taken into ICE custody in Austin. Aguilar-Mejia was convicted twice in 2023 for illegal re-entry and has been removed from the U.S. three times before, as recent as April 2024.

    These cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with additional assistance from state and local law enforcement partners.

    The U.S. Attorney’s Office for the Western District of Texas comprises 68 counties located in the central and western areas of Texas, encompasses nearly 93,000 square miles and an estimated population of 7.6 million people. The district includes three of the five largest cities in Texas—San Antonio, Austin and El Paso—and shares 660 miles of common border with the Republic of Mexico.

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

    Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –

  • MIL-OSI Security: District of Arizona Charges 314 Individuals for Immigration-Related Criminal Conduct this Week

    Source: Office of United States Attorneys

    PHOENIX, Ariz. – During the week of enforcement operations from May 17, 2025, through May 23, 2025, the U.S. Attorney’s Office for the District of Arizona brought immigration-related criminal charges against 314 individuals. Specifically, the United States filed 117 cases in which aliens illegally re-entered the United States, and the United States also charged 176 aliens for illegally entering the United States.  In its ongoing effort to deter unlawful immigration, the United States filed 20 cases against 21 individuals responsible for smuggling illegal aliens into and within the District of Arizona.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), ICE Homeland Security Investigations (HSI), U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Recent matters of interest include:

    United States v. Angel Said Ojeda-Figueroa: On May 17, 2025, a Bureau of Land Management Ranger initiated a vehicle stop on Angel Said Ojeda-Figueroa. Ojeda-Figueroa initially failed to stop, but when the vehicle entered a neighborhood, Ojeda-Figueroa pulled over and all four occupants exited and tried to flee. Ojeda-Figueroa and the three passengers were apprehended and determined to be citizens of Mexico, illegally present in the United States. Ojeda-Figueroa was charged by complaint with transportation of aliens for profit. [Case Number: MJ-25-5992]

    United States v. Tomas Ortiz-Lopez: On May 19, 2025, Tomas Ortiz-Lopez, was charged with Re-entry of a Removed Alien. Tomas Ortiz-Lopez was previously removed from the United States in 2000 after being convicted of a felony drug conviction, in the United States District Court, District of New Mexico. [Case Number: MJ-25-0543]

    United States v. Gabriel Jimenez-Diaz: On May 20, 2025, Border Patrol Agents attempted to initiate a vehicle stop on Gabriel Jimenez-Diaz, who failed to yield. Agents deployed a Vehicle Immobilization Device, and four subjects absconded from the vehicle. After a search, agents located and apprehended Jimenez-Diaz and three passengers from the vehicle. Agents determined that all four individuals were citizens of Mexico, illegally present in the United States. Jimenez-Diaz was charged by complaint with transportation of aliens for profit. [Case Number: MJ-25-6199]

    United States v. Juan Carlos Carmona-Maya: On May 20, 2025, Juan Carlos Carmona-Maya, was charged with Re-entry of a Removed Alien. Juan Carlos Carmona-Maya was previously removed from the United States in 2014 after being convicted of Theft of Means of Transportation, a felony offense, in the Superior Court of Arizona, Maricopa County. [Case Number: MJ-25-05251]

    United States v. Luis Fernando Ibarra, Jr.: On May 21, 2025, Border Patrol Agents received a report of two subjects hiding in the backyard of a residence near the border in Nogales, Arizona. Luis Fernando Ibarra Jr. drove to the residence, stopped, and two subjects ran toward his vehicle. Before they reached the vehicle, one subject was apprehended by the Nogales Police Department and the other successfully fled the area. Later in the day, Agents observed the same vehicle return to the area and a subject got into the vehicle. Agents tried to initiate a vehicle stop, but Ibarra Jr. ran a red light and fled at a high rate of speed, maneuvering recklessly and driving on the wrong side of the road. Ibarra Jr. then sped through several parking lots before driving into the Santa Cruz River where his vehicle became stuck in the sand. At that point, officers apprehended Ibarra Jr. and the passenger, who was determined to be a citizen of Mexico, illegally present in the United States. Ibarra Jr. was charged by complaint with transportation of aliens for profit. [Case Number: MJ-25-6247]

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

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

    RELEASE NUMBER:    2025-083_May 23 Immigration Enforcement

    # # #

    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: Unlicensed Adviser Charged In $4 Million Investment Fraud Scheme Targeting Elderly And Vulnerable Victims

    Source: Office of United States Attorneys

    CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that federal charges were filed against Jon Patrick Kubler, 52, of Redondo Beach, California, for allegedly orchestrating a $4 million investment scheme that targeted elderly and vulnerable victims.

    James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

    According to allegations in the criminal indictment, from December 2017 to April 2023, Kubler defrauded about 30 investors out of more than $4 million through an investment fraud scheme.

    Despite not being licensed as an investment adviser, Kubler allegedly provided investment planning and management services to victims who were unsophisticated investors, elderly, and the beneficiaries of settlements or life insurance proceeds. Throughout the scheme, Kubler allegedly made false and fraudulent representations to victims, concealed and omitted material facts, and told deceptive half-truths to induce victims to invest in commercial real estate through companies he owned and operated, including Aksarben Evolution, LLC and Green Saddle, LLC.

    To further the scheme and to convince investors their investments were profitable, Kubler allegedly made Ponzi-style payments to victims, using new investors’ money to pay existing investors, purporting the pay-outs were the result of successful investing and not funds from new victims Kubler had solicited. It is further alleged that Kubler used a portion of the investors’ money to pay for personal expenses and to make cash withdrawals, among others.

    According to allegations in the indictment, in 2022, a victim investor received a letter from U.S. Securities and Exchange Commission (SEC) regarding its investigation into alleged securities fraud by Kubler. In an effort to conceal the scheme and that he was being investigated by the SEC, Kubler misled the victim by telling her that she did not need to respond to the SEC and that it was normal to receive a letter from the SEC after receiving a large settlement from a third party, as the victim had.

    Kubler is charged with securities fraud and transactional money laundering. If convicted, he faces a maximum sentence of 20 years in prison for the securities fraud offense and 10 years for the transactional money laundering offense. A federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney Ferguson thanked the FBI in Charlotte for its investigation of the case.

    In addition to the criminal charges, in September 2023, the SEC announced that it obtained a temporary asset freeze, restraining order, and other emergency relief in the U.S. District court in the District of Nebraska against Kubler and several of the entities under his control, for allegedly engaging in a multi-year Ponzi scheme that misappropriated and misused investors’ funds. A final judgment was entered on January 22, 2025, in which Kubler agreed to be permanently enjoined from violating the securities laws and to pay disgorgement and civil penalties.

    Special Assistant U.S. Attorney Eric Frick and Assistant U.S. Attorney Graham Billings are in charge of the prosecution.

    The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

     

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  • MIL-OSI Security: Ex-Law Enforcement and Former Military Officers Charged in Alleged Sham Raid to Extort O.C. Man at Behest of Chinese National

    Source: US FBI

    LOS ANGELES – Four ex-law enforcement and military officers are scheduled to be arraigned today on a four-count superseding indictment that alleges they acted as a sham law enforcement team that entered an Irvine man’s home and threatened him and his family with violence and deportation unless he turned over nearly $37 million and signed away his rights in a business – worth tens of millions of dollars – that he shared with a wealthy Chinese national who secretly financed the bogus raid.

    The superseding indictment filed on August 1, charges the following defendants with one count of conspiracy to commit extortion, one count of attempted extortion, one count of conspiracy against rights, and one count of deprivation of rights under color of law:

    • Steven Arthur Lankford, 68, of Canyon Country, a retired Los Angeles County Sheriff’s Department (LASD) deputy who stopped working for LASD in 2020 and owns a Santa Clarita-based process service company;
    • Glen Louis Cozart, 63, of Upland, a former LASD deputy who owns and operates a San Bernardino County-based private investigation and security services company;
    • Max Samuel Bennett Turbett, 39, of Australia, a United Kingdom citizen and former member of the British military who owns an Australia-based private investigation and asset recovery business; and
    • Matthew Phillip Hart, 41, of Australia, an Australian citizen and former member of the Australian military who owns an Australia-based risk management services business.

    The defendants are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.

    “It is critical that we hold public officials, including law enforcement officers, to the same standards as the rest of us,” said United States Attorney Martin Estrada. “It is unacceptable and a serious civil rights violation for a sworn police officer to take the law into his own hands and abuse the authority of the Los Angeles County Sheriff’s Department.”

    “The defendants in this case allegedly believed they could carry out vigilante justice by using official police powers to enter the home of vulnerable victims and extorting them out of millions of dollars,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will not tolerate civil rights violations by anyone who takes the law into their own hands for personal gain or otherwise.”

    According to the superseding indictment, the Irvine businessman – identified as “Victim 1” – had an ongoing business dispute with an unindicted co-conspirator – the wealthy Chinese national – regarding their respective ownership interests in Jiangsu Sinorgchem Technology Co. Ltd., a China-based rubber chemical manufacturer. Their dispute led to at least three lawsuits in China and one in Atlanta. In October 2013, the Chinese national alleged in a civil court filing that China had issued a “red notice” for Victim 1, which Victim 1 understood was linked to his business dispute with the unindicted co-conspirator.

    In December 2018, the unindicted co-conspirator allegedly contacted Turbett to help locate and recover assets from Victim 1. She said that the long and costly litigation had not been “the smart way” to handle her dispute with Victim 1 and asked Turbett to find a different “solution to finish the problem.” She promised Turbett that if he helped her, “we can both retire.”

    In June 2019, Turbett and the unindicted co-conspirator drafted purported settlement agreements calling for Victim 1 to transfer assets – including approximately $36,972,386 in cash as well as lucrative shares in Jiangsu Sinorgchem – to the unindicted co-conspirator.

    Turbett allegedly hired Cozart to locate Victim 1 and assemble a team to obtain Victim 1’s signature on the settlement agreements. Cozart, in turn, hired Lankford, then an LASD deputy, who searched Victim 1’s name and date of birth in the National Crime Information Center database using his Justice Data Interface Controller terminal at LASD, in violation of LASD policy that law enforcement databases only be used for law enforcement purposes and not for personal use.

    Turbett and Hart flew from Australia to Los Angeles, where they met with Cozart and Lankford to discuss plans for the sham raid. 

    On June 17, 2019, Lankford – in violation of LASD policy – drove an unmarked LASD vehicle to Victim 1’s home with Cozart, Hart and Turbett, the superseding indictment alleges. Lankford and Cozart then approached Victim 1 outside his home. Lankford allegedly identified himself as a police officer and showed his badge, while Cozart falsely identified himself as an “Immigration” officer.

    Under the guise of a legitimate law enforcement operation, the defendants allegedly entered the home, where they forced Victim 1, his wife, and their two children into one room, took their phones, and prevented them from leaving for hours. Victim 1 was slammed against a wall and choked, the superseding indictment states. Defendants allegedly also threatened to deport Victim 1 and his wife and permanently separate them from their 4-year-old son unless Victim 1 complied with their demands. 

    Fearing for his and his family’s safety, the superseding indictment alleges that Victim 1 ultimately signed the documents, thereby relinquishing his multimillion-dollar interest in Jiangsu Sinorgchem.

    Although Lankford told Victim 1 that he would be arrested and deported if he reported the incident to police, Victim 1 immediately contacted the Irvine Police Department (IPD) after defendants left his home. Lankford thereafter spoke with an IPD officer and falsely claimed that he had been at Victim 1’s home for a legitimate law enforcement purpose, that Victim 1 consented to all parties being in his home, and that no force was used.

    By November 2019, all the defendants had been paid for their efforts. The unindicted co-conspirator paid Turbett’s company approximately $419,813 for services rendered and emailed Turbett to thank him for a “very good job,” the superseding indictment alleges.

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

    If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison for each extortion-related count and up to 10 years in federal prison for each deprivation of rights-related count.  

    The FBI is investigating this matter. The Los Angeles County Sheriff’s Department and Irvine Police Department provided substantial assistance.

    Assistant United States Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: California Man Sentenced for Assaulting Law Enforcement with a Dangerous Weapon During January 6 Capitol Breach

    Source: US FBI

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

                David Dempsey, 37, of Santa Ana, California, was sentenced to 240 months in prison, 36 months of supervised release, and ordered to pay $2,000 in restitution by U.S. District Judge Royce C. Lamberth. Dempsey previously pleaded guilty to two felony counts of assaulting, resisting, or impeding certain officers with a deadly or dangerous weapon on Jan. 4, 2024.

                According to court documents, Dempsey traveled to Washington, D.C., with others from his home in California and, on the morning of Jan. 6, 2021, attended the “Stop the Steal” rally at the Ellipse. Dempsey was later interviewed standing near a wooden structure representing a hanging gallows, which was fitted with a noose and sign stating, “This is Art.” Dempsey wore a black helmet, vest, sunglasses, and an American flag gaiter covering his neck, mouth, and nose.

                During the interview, Dempsey was asked what he thought of this “work of art” (the gallows), to which he replied, in part: This isn’t just art. This is necessary” and “Them worthless f— s—holes like f— Jerry Nadler, f— Pelosi, uh Clapper, Comey, f— all those pieces of garbage, you know, Obama, all these dudes, Clinton f— all these pieces of s—. That’s what they need. They don’t need a jail cell. They need to hang from these m—f— while everybody videotapes it and f— spreads it on YouTube, B—Tube or whatever f— social media there is.”

                Later, Dempsey walked with others toward the U.S. Capitol building and made his way to the Lower West Terrace Tunnel, the site of some of the most violent attacks against law enforcement on January 6th. Here, Dempsey joined the crowd, pushing into a line of police officers defending the Tunnel. At about 3:36 p.m., Dempsey climbed atop other rioters’ shoulders, arms, and backs to get to the front line.  Upon reaching the front, Dempsey threw a short pole-like object into the Tunnel, striking a police officer. Dempsey shouted, “F— you b—ass cops.”  Dempsey then grabbed onto a police riot shield and continued to yell insults at police.

                At approximately 3:57 p.m., Dempsey attempted to throw a flagpole at officers in the Tunnel, but his throw was inadvertently blocked by a police riot shield held by another rioter. He then grabbed onto an officer’s baton and attempted to pull it away. At about 3:59 p.m., Dempsey, using the Tunnel’s wooden frame as support, kicked the shields of law enforcement officers four times.

                At about 4:01 p.m., Dempsey took a long pole from the crowd and swung it at officers in the Tunnel, striking their shields. He then used his foot to push away a crowd member attempting to take the pole away from him. Court documents say that a short while later, at about 4:07 p.m., Dempsey sprayed two separate bursts of pepper spray into the line of officers.

                For the next several minutes, Dempsey continued his assault on officers in the Tunnel including by throwing water bottles at police, spraying pepper spray at officers, swinging a metal crutch, which struck police; swinging an aluminum people, which also struck police; throwing a folded-up metal pole; and swinging and throwing a long wooden pole, which struck police.

                At about 4:42 p.m., Dempsey retreated from the crowd to rinse pepper spray from his eyes and face. He then returned to the front line and swung a flagpole at the line of officers, striking an officer’s riot shield. Finally, at 5:03 p.m., Dempsey threw two objects at officers in the Tunnel.            

                The FBI arrested Dempsey on Aug. 26, 2021, in California.

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

                This case was investigated by the FBI’s Los Angeles and Washington Field Offices, which identified Dempsey BOLO #399 in its seeking information photos. Valuable assistance was provided by the United States Capitol Police and the Metropolitan Police Department.

                In the 43 months since Jan. 6, 2021, more than 1,488 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including nearly 550 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

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

    MIL Security OSI –

  • MIL-OSI Security: Campaign Treasurer for Candidate for Brooklyn Borough President Pleads Guilty to Scheme to Defraud New York City’s Campaign Finance Board

    Source: US FBI

    Defendant Used Straw Donors and Submitted Forged Documents in Attempt to Steal $400,000 in Matching Funds From New York City

    Earlier today, in federal court in Brooklyn, Erlene King pleaded guilty to wire fraud in connection with her attempt to steal funds from New York City’s Campaign Finance Board (CFB).  Today’s proceeding was held before United States District Judge Carol Bagley Amon.  When sentenced, King faces up to 20 years in prison.

    Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

    “Instead of playing by the rules New York City established for free and fair elections, the defendant attempted to use the city’s matching funds program to give the campaign an unfair advantage,” stated United States Attorney Peace.  “My Office and our law enforcement partners are focused on rooting out corruption in our electoral system to ensure that all candidates are operating on a level playing field.”

    Mr. Peace expressed his appreciation to the CFB for its cooperation and assistance during the investigation. 

    “Erlene King deprived New York City residents of a fair election by attempting to manipulate hundreds of thousands of dollars in donor contributions to unlawfully favor her candidate,” stated FBI Assistant Director in Charge Dennehy.  “King abused her position as a campaign treasurer and attempted to profit from exploiting a system designed to represent the voices of the city.  The FBI remains steadfast in its mission to eliminate any source of corruption polluting our city’s democratic processes.”

    CFB Overview

    The CFB oversees and administers a publicly funded campaign finance system in connection with municipal elections in New York City.  This includes a “matching funds program” that provides eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, the program “empowers New Yorkers in every neighborhood to make their voices heard in city elections.”  In addition, the CFB maintains that “by encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.”

    Candidates running for the Office of the Brooklyn Borough President in the 2021 election cycle were eligible to participate in the CFB’s matching funds program if they met certain criteria.  Among other things, to be eligible to receive public funds, candidates were required to meet a two-part fundraising threshold. Specifically, a candidate had to collect a minimum number of donations and raise a minimum amount of money from New York City residents before the CFB paid any matching funds.

    For candidates who ran for the Office of the Brooklyn Borough President during the 2021 election cycle, candidates received up to $8 in matching funds for each $1 of eligible contributions, up to $175 per contributor.  If a candidate received an eligible contribution of $175, then that candidate could collect up to $1,400 in matching funds.  In total, the matching funds program provided up to $1,457,777 in public matching funds to a candidate for the Office of the Brooklyn Borough President.  Because campaigns for Brooklyn Borough President during the 2021 election cycle needed to raise at least $50,000 in eligible contributions to receive any matching funds, any candidate who was eligible to receive matching funds necessarily received at least $400,000 in matching funds from the CFB.

    The Scheme

    King served as the campaign treasurer for a candidate who ran in a primary for the Office of the Brooklyn Borough President during the 2021 election cycle (Candidate #1).  King admitted that she obtained fraudulent donations for the purpose of inducing the CFB to provide matching funds to Candidate #1’s campaign. A number of those contributions, which were obtained at King’s direction, were fraudulent nominee contributions made in the names of individuals who either did not personally fund the contributions or were later reimbursed for their contributions (i.e., straw donors).  For example, King used CashApp to send money to intermediaries and instructed them to distribute the money to fund contributions from straw donors to Candidate #1.  Other fraudulent contributions were made in the names of individuals whose identities were stolen and who had not personally contributed to Candidate #1. The CFB ultimately determined that the campaign submitted fictitious records and did not pay any public matching funds to the campaign.

    The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States  Attorneys Philip Pilmar and Eric Silverberg are in charge of the prosecution, with the assistance of Paralegal Specialist Rachel Friedman.

    The Defendant:

    ERLENE KING
    Age: 71
    Brooklyn, NY
    E.D.N.Y. Docket No. 24-CR-374 (CBA)

    MIL Security OSI –

  • MIL-OSI Security: Mount Vernon Police Sergeant Pleads Guilty to Depriving an Individual of His Constitutional Rights

    Source: US FBI

    During a Call for Assistance, Sgt. Mario Stewart Tased a Handcuffed, Restrained Individual Seven Times in Two Minutes

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that MARIO STEWART, a Sergeant with the Mount Vernon Police Department (“MVPD”), pled guilty today to using excessive force against an individual (the “Victim”) while in Mount Vernon, New York, in violation of the Victim’s rights under the U.S. Constitution.  STEWART pled guilty today before U.S. Magistrate Judge Andrew E. Krause.

    Acting U.S. Attorney Edward Y. Kim said: “Mario Stewart betrayed his duty as a Sergeant with the Mount Vernon Police Department.  Stewart was called to the scene to aid a person in emotional distress.  But instead of rendering aid, he deployed his taser on the individual seven times in the span of roughly two minutes, while the individual was helpless, and while several other MVPD officers were on scene to assist.  This Office will fiercely protect constitutional rights and hold accountable those who abuse their authority to violate those rights.”

    According to the allegations contained in the Indictment and statements made in court:

    On or about March 26, 2019, STEWART was employed as a Sergeant with the Mount Vernon Police Department.  STEWART was assigned to the MVPD’s Emergency Services Unit, which is responsible for, among other things, responding to individuals who are experiencing mental health crises.  On that day, STEWART and six other MVPD officers received a call to assist the Victim in Mount Vernon, New York, as the Victim was experiencing a mental health crisis. 

    At the scene, STEWART and the other MVPD officers restrained the Victim, handcuffing his hands behind his back and securing his legs in a restraint bag in preparation to transport the Victim for medical assistance.  When the MVPD officers were unable to pull the restraint bag over the Victim’s chest because the Victim was holding onto one of the bag’s straps, STEWART directed the Victim to release the strap.  While STEWART deployed his taser all seven times, the Victim remained laying on the ground, handcuffed with his hands behind his back and his legs secured in the restraint bag.  STEWART’s actions caused bodily injury to the Victim, including extreme pain.

    *               *                *

    STEWART, 46, of Brooklyn, New York, pled guilty to one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison.

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

    Mr. Kim praised the outstanding investigative work of the Federal Bureau of Investigation, and thanked the Westchester County District Attorney’s Office and the Mount Vernon Police Department for their assistance with the investigation.

    The prosecution is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Sam Adelsberg and Jared Hoffman are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: PAC Treasurer Pleads Guilty to Multi-Year Scheme to Defraud PAC Donors

    Source: US FBI

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced that ROBERT PIARO, the treasurer of multiple political action committees (“PACs”), pled guilty today to committing telemarketing wire fraud in connection with his scheme to defraud donors to his PACs through false and misleading statements.  PIARO pled guilty before U.S. District Judge Arun Subramanian. 

    Acting U.S. Attorney Edward Y. Kim said: “Robert Piaro deceived hundreds of thousands of donors through false statements and misrepresentations about how contributions to his PACs would be spent.  Piaro’s fraudulent actions not only undermined the trust of donors but also exploited their interest in supporting certain causes for his own personal gain.  Today’s plea highlights this Office’s dedication to holding accountable those who misuse political organizations to defraud and mislead the public.”

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

    PACs are entities registered with the Federal Election Commission that may be tax-exempt and collect money to advocate on behalf of or against certain causes and political candidates. 

    From at least in or about 2017 up to and including at least in or about December 2022, PIARO was the treasurer and operator of four PACs: Americans for the Cure of Breast Cancer, the Association for Emergency Responders & Firefighters, the US Veterans Assistance Foundation, and Standing By Veterans (the “PIARO PACs”).  PIARO raised millions of dollars from hundreds of thousands of donors nationwide through false statements and misrepresentations about how contributions to the PIARO PACs would be spent.  For example, at PIARO’s direction, the PIARO PACs misrepresented to donors that donations would be used to advance specific legislation, educate lawmakers, and conduct and fund research, when PIARO did not and did not intend to follow through on those representations.    

    If you believe you are a victim of fraud perpetrated by PIARO, please contact USANYS.PACFraud@usdoj.gov or the Federal Bureau of Investigation (“FBI”) at 1-800-CALL-FBI or tips.fbi.gov, and find more information here: https://www.justice.gov/usao-sdny/united-states-v-robert-piaro.

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    PIARO, 74, of Fredonia, Wisconsin, pled guilty to one count of wire fraud in connection with telemarketing, which carries a maximum sentence of 25 years in prison.

    The maximum potential sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.  PIARO is scheduled to be sentenced by Judge Subramanian on April 14, 2025.

    Mr. Williams praised the outstanding investigative work of the FBI.   

    This case is being handled by the Office’s Public Corruption Unit.  Assistant U.S. Attorneys Rebecca T. Dell and Jane Kim are in charge of the prosecution.

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  • MIL-OSI Security: Trader Arrested for Stealing Trade Secrets From Global Quantitative Trading Firm

    Source: US FBI

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging CHEUK FUNG RICHARD HO with theft and attempted theft of trade secrets.  The charges in the Indictment arise from HO’s alleged scheme to steal trade secrets from his former employer (“Firm-1”), a global quantitative trading firm.  HO was arrested this morning in Los Angeles, California, and will be presented this afternoon before U.S. District Court for the Middle District of California, Magistrate Judge the Honorable Joel Richlin.

    Acting U.S. Attorney Edward Kim said: “As alleged, Cheuk Fung Richard Ho abused the trust his former employer placed in him and stole trade secrets to use at his own quantitative trading firm.  Ho allegedly tried to cover his tracks by lying to his former employer repeatedly and asking his employees to delete evidence.  Thanks to the FBI, Ho is now in custody.”

    FBI Assistant Director in Charge James E. Dennehy said: “Cheuk Fung Richard Ho allegedly stole and unlawfully shared private proprietary information to clandestinely develop his own firm in collaboration with his employer’s competitors.  The defendant allegedly abused his trusted position by breaching company confidentiality agreements to the detriment of his former firm.  The FBI will continue to apprehend any individual who attempts to garner success through manipulative and dishonest business strategies.”

    As alleged in the Indictment:[1]

    From approximately July 2019 to approximately August 2021, HO was a research developer and quantitative trader at Firm-1, a global, quantitative trading firm, which trades in equities and other securities on exchanges located in the U.S. and abroad.  Firm-1’s proprietary source code (“Firm-1’s Source Code”), the development of which took years and cost Firm-1 more than one billion dollars, has been the linchpin of Firm-1’s success in these markets.  During the period of HO’s employment at Firm-1, Firm-1 took substantial measures to protect the confidentiality of its Source Code.  Among other things, Firm-1 limited access to Firm-1’s Source Code to only those individuals, like HO, who needed access to it in connection with the duties of their employment.  Employees with access to Firm-1’s Source Code were required to enter into agreements with Firm-1 in which they acknowledged the importance of keeping Firm-1’s Source Code secret and promised to protect the confidentiality of that Source Code throughout their employment—and after their employment concluded.  Firm-1 also implemented numerous physical and network security protocols to prohibit unauthorized access to Firm-1’s Source Code.

    In or about the spring of 2021, HO secretly started his own quantitative trading firm (“Firm-2”), which partnered with one of Firm-1’s competitors (“Firm-3”). While still employed at Firm-1, and while taking advantage of the nearly complete access to Firm-1’s Source Code afforded to him as a result of that employment, HO stole valuable trade secrets from Firm-1 (the “Stolen Trade Secrets”) for use in developing the source code for Firm-2 (“Firm-2’s Source Code”). The Stolen Trade Secrets included, among other things, some of the very building blocks of Firm-1’s Source Code, known as “Atoms,” as well as some of its predictive formulas, known as “Alphas.” By stealing these trade secrets, HO was able to quickly launch Firm-2 and begin trading successfully.

    Aware that he had misappropriated Firm-1’s trade secrets—and knowing that this theft would injure Firm-1—HO repeatedly lied to Firm-1 about his plans after his employment with Firm-1 concluded.  For example, when Firm-1 asked HO about his post-Firm-1 employment plans, HO omitted any mention of the fact that he had started Firm-2 and he misrepresented his affiliation with Firm-3.  And once Firm-1 learned that HO had started Firm-2, HO sought to destroy evidence.  He directed his employees to delete their internal communications and further directed them to delete the source code history for Firm-2’s Source Code, a direction that HO’s employees did not follow.

    *               *                *

    HO, 36, of Los Aneles, California, is charged with one count of theft and attempted theft of trade secrets, which carries a maximum sentence of 10 years in prison.

    The statutory maximum sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

    Mr. Kim praised the investigative work of the FBI.

    This case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Rushmi Bhaskaran and Ni Qian are in charge of the prosecution.

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

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

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  • MIL-OSI Security: Conspiracy and Fraud Charges Added Against Operator of Central California Bio-Lab and His Partner in Connection with Sale of Millions of Dollars in COVID-19 Test Kits

    Source: US FBI

    FRESNO, Calif. — The operator of a Reedley lab, who was indicted in November 2023, faces additional charges of conspiracy and wire fraud after a federal grand jury returned a 12-count superseding indictment today, U.S. Attorney Phillip A. Talbert announced.

    Jia Bei Zhu, 62, a citizen of China, was previously indicted for distributing adulterated and misbranded COVID-19 test kits in violation of the federal Food, Drug, and Cosmetic Act and making false statements to authorities about his identity and involvement with the biolabs. The superseding indictment also charges Zhu’s romantic and business partner, Zhaoyan Wang, 38, a citizen of China, who operated the biolabs Universal Meditech Inc. (UMI) and Prestige Biotech Inc. (PBI) in Fresno and Reedley along with Zhu. UMI and PBI distributed COVID-19, pregnancy, and other types of test kits.

    According to court documents, from August 2020 through March 2023, Zhu and Wang conspired to defraud buyers of UMI and PBI’s COVID-19 test kits. They imported hundreds of thousands of COVID-19 test kits from Ai De Ltd., which was a company in China that they controlled, and falsely represented to the buyers that the test kits were made in the United States. They illegally imported the COVID-19 test kits, which they were not approved to import, by falsely declaring them as pregnancy test kits, which they were approved to import.

    Zhu and Wang also falsely represented to the buyers that UMI and PBI could make up to 100,000 COVID-19 test kits per week in the United States and that the test kits were made in connection with other labs that were certified by the Centers for Disease Control and Prevention. Finally, they falsely represented to the buyers that the test kits were approved by the Food and Drug Administration (FDA). Zhu and Wang made over $1.7 million through their fraud.

    When buyers requested to inspect UMI and PBI’s facilities in Fresno and Reedley, Zhu and Wang denied them access and fabricated reasons for the denial. The fabricated reasons included that the facilities were undergoing construction and renovation, and that proprietary and confidential information and technology was inside. In reality, however, they did not want the buyers to know that UMI and PBI were obtaining the COVID-19 test kits from China.

    Zhu is currently detained in custody pending his federal trial. His next status conference is scheduled for Sept. 11, 2024. Wang is not in custody.

    This case is the product of an investigation by the Federal Bureau of Investigation and the FDA Office of Criminal Investigations. Assistant U.S. Attorneys Arelis Clemente, Joseph Barton, and Henry Carbajal III are prosecuting the case.

    If convicted, Zhu and Wang each face maximum statutory penalties of 20 years in prison for the conspiracy and wire fraud charges, and an additional three years in prison for the distribution of adulterated and misbranded medical device charges. Zhu also faces another five years in prison for the false statements charge. Any sentences, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Zhu and Wang are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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  • MIL-OSI Security: Sacramento County Man Pleads Guilty to Cyberstalking

    Source: US FBI

    SACRAMENTO, Calif. — Michael Jameson Chand, 32, of Sacramento County, pleaded guilty today to cyberstalking, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, Chand intentionally engaged in a course of conduct to harass or intimidate the victim, Jane Doe, and used a cellphone and the internet to do so. This course of conduct caused Jane Doe substantial emotional distress, in part, because Chand had previously committed crimes against her. In 2017, Chand was convicted in California for offenses that included eliciting child sexual exploitation material from Jane Doe, who was 15 years old at the time. Chand was sentenced to two years in jail for that conviction.

    On Dec. 23, 2019, while on parole, Chand posted a public Facebook post under an alias, including Jane Doe’s full name, falsely claimed that she was dating a murderer, and asking, “please everybody help me get her into a mental hospital if you want her contact info let me know please.” Then, between June and October of 2020, he called her approximately 176 times and left 63 voicemail messages. Many of the voicemail messages contained insults and threats against Jane Doe and her family.

    Additionally, Chand created multiple social media accounts, some under aliases, to contact and harass Jane Doe. Using such accounts, he made posts publicly naming Jane Doe, and saying things that were designed to harass and intimidate Jane Doe. For example, in a public Facebook post made on August 5, Chand listed Jane Doe’s full name, her city and state of birth, and included a photo from her social media account, and falsely stated that “she killed her ex [boyfriend].” He also falsely claimed that Jane Doe had planned to move in with and would expose her “baby” to a “rapist,” and wrote, “Please help me find a way to get the poor kid away from her.”

    This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Sheriff’s Office, and the Sacramento Valley Hi-Tech Task Force. Assistant U.S. Attorneys Adrian T. Kinsella and Christina McCall are prosecuting the case.

    Chand is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 7, 2025. Chand faces a maximum statutory sentence of five years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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  • MIL-OSI Security: Gastonia Man is Indicted for Laundering Over $380,000 in Wire Fraud Scheme

    Source: US FBI

    CHARLOTTE, N.C. – A federal grand jury returned a criminal indictment this week, charging Matias Alexander Vinces Aguayo, 24, formerly of Gastonia, N.C., with conspiring with others to launder over $380,000 in illegal proceeds from a wire fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

    According to allegations in the indictment, during the scheme, Aguayo owned and operated Keys ‘N Go, a North Carolina company located in Gastonia, which maintained online payment processing accounts with Stripe and Square. In addition, the indictment further alleges that Aguayo owned and controlled personal and business bank accounts with a financial institution, including in the name of Keys ‘N Go, and a cryptocurrency exchange account at Binance.US.

    According to allegations in the indictment, Aguayo’s co-conspirators used fraudulently obtained personally identifying information (PII) to open bank accounts online in order to receive promotional money and other fraudulently obtained funds, which was then deposited into the bank accounts. A co-conspirator of Aguayo then allegedly sent the bank account information to Aguayo, who used it to withdraw the money from the accounts via the Keys ‘N Go accounts at Stripe and Square. It is further alleged that, after receiving the Stripe and Square deposits into the Keys ‘N Go bank account at the financial institution, a co-conspirator provided Aguayo with directions to transfer the proceeds from the accounts Aguayo controlled to overseas bank accounts in Pakistan and to cryptocurrency addresses. In total, Aguayo allegedly transferred at least $240,000 to cryptocurrency addresses and via wire transfers. Aguayo earned compensation for his role in the scheme, including keeping a percentage of the money initially deposited into the accounts he controlled.  

    The money laundering conspiracy charge carries a maximum sentence of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction.

    The charges against Aguayo are allegations and the defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.

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

    Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case. 

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  • MIL-OSI Security: Urine Drug Testing Laboratory and Owner Agree to Resolve False Claims Act Allegations

    Source: US FBI

    CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that LabXperior Corporation (LabXperior) and owner Tina Ball (Ball) have paid $235,000 to resolve allegations that they violated the Federal False Claims Act and North Carolina False Claims Act by knowingly billing North Carolina Medicaid (Medicaid) for urine drug tests that were medically unnecessary and resulted from violations of the Anti-Kickback Statute.

    The United States and State of North Carolina alleged that from September 28, 2016, through December 20, 2017, LabXperior submitted claims to Medicaid for urine drug tests that were false. The claims were false because they were the result of an illegal kickback arrangement between LabXperior and BPolloni Consulting, LLC (BPolloni), an entity that referred urine drug tests to LabXperior. Under the arrangement, LabXperior paid BPolloni a percentage of the revenue or profit from the Medicaid reimbursement for each urine drug test that BPolloni arranged for another entity, Do It 4 the Hood Corporation (D4H), to send to LabXperior. The Chief Executive Officer of BPolloni and other individuals who operated D4H previously pleaded guilty to conspiracy to commit health care fraud and Anti-Kickback Statute violations arising from D4H’s illegal kickback arrangements with urine drug testing laboratories.

    In addition to being tainted by illegal kickbacks, the United States and State of North Carolina alleged that claims for drug tests that LabXperior submitted to Medicaid were false because the tests were medically unnecessary. Specifically, the orders for the tests were not patient-specific and did not reflect a qualified medical provider’s determination of the patient’s need for the testing.

    The civil settlement and resolution of claims obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the FBI in Charlotte, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, the Office of Inspector General of the United States Department of Health and Human Services, and the Internal Revenue Service Criminal Investigations.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.

    Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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  • MIL-OSI Security: Last Two Defendants Sentenced to Prison for Large Methamphetamine Distribution Conspiracy

    Source: US FBI

    LAS VEGAS – The last two of seven defendants charged in a drug trafficking conspiracy have been sentenced for their roles in distributing large quantities of methamphetamine from California and Mexico to Nevada.

    Ivan Salazar, a four-time convicted felon, aka “Evil,” (40) and Domingo Montes, a three-time convicted felon, aka “JR,” (36) were sentenced Tuesday by U.S. District Judge Kent J. Dawson to 140 months and 100 months in prison, respectively.

    According to court documents, in 2019, law enforcement began investigating co-conspirator Luis Arellano and other members of the Pomona Sur Lokotes (PSL) drug trafficking organization. In 2020, Salazar and Montes conspired with others to distribute 946 grams and 204 grams of methamphetamine, respectively, in Las Vegas. Salazar and Montes obtained the methamphetamine from Arellano, the leader of the drug trafficking organization.

    Salazar and Montes each pleaded guilty in November 2022 to conspiracy to distribute a controlled substance.

    The other members of the drug trafficking conspiracy were sentenced earlier. Luis Arellano, aka “Lewis Arellano” and “Laughter,” (31) pleaded guilty and was sentenced to 168 months in prison; Jacqueline Martinez (31) pleaded guilty and was sentenced to 78 months in prison; Amelio Che Medina (45) pleaded guilty and was sentenced to 97 months in prison; Anna Barrios (34) pleaded guilty and was sentenced to 90 months in prison; and Victor Manuel Rodriguez, aka “Smokey” (39) pleaded guilty and was sentenced to 100 months in prison.

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

    The FBI’s Safe Streets Gang Task Force and Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Kimberly Sokolich prosecuted the case.

    This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

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