NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: Ninth Defendant Sentenced to Prison for Involvement in Large-Scale Methamphetamine Trafficking Conspiracy

    Source: US FBI

    LAS VEGAS – A Henderson resident was sentenced Wednesday by U.S. District Judge Andrew P. Gordon to 65 months in prison followed by five years of supervised release.

    Brian Scarborough (47) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance – methamphetamine. Scarborough was the ninth defendant to plead guilty for his role in a large-scale conspiracy to distribute methamphetamine in Las Vegas.

    According to court documents, from a date unknown to April 17, 2019, Scarborough conspired with others – including Miriam Elizabeth Suarez-Contreras, aka “Ella” and “Liz,” who was an organizer of the criminal conspiracy – to distribute methamphetamine in the Las Vegas area. As part of the conspiracy, Suarez-Contreras, a Mexican national, received methamphetamine orders via telephone while she was living in California, and dispatched different drug couriers to deliver the methamphetamine in Las Vegas. On April 3, 2019, the FBI executed a search warrant of Scarborough’s hotel room after he had ordered methamphetamine from Suarez-Contreras via telephone and discovered about 130 grams of methamphetamine and a 9mm handgun.

    Co-defendants Suarez-Contreras was sentenced to 135 months in prison; Roberto Blancas-Mata, aka “Carlos Delgado,” of Las Vegas, was sentenced to 12 months and one day in prison; Rahdsma Henderson, aka “Weezy,” of Las Vegas, was sentenced to 41 months in prison; Stephen Lloyd, of Las Vegas, was sentenced to time served; Doug Stumpf, of Henderson, was sentenced to 46 months in prison; Renea Barnes, aka “Renea Valdez,” of Las Vegas, was sentenced to 48 months in prison; Quentin Armstrong, of Sandy Valley, Nevada, was sentenced to 90 months in prison; and Jose Guillermo Tello-Albarran, of Las Vegas, was sentenced to time served. Charles Parr, aka “Charles Magnuson,” of Salt Lake City, Utah, awaits sentencing.

    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 case was investigated by the Safe Streets Gang Task Force, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. Assistant United States Attorney Melanee Smith is prosecuting this 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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    MIL Security OSI –

  • MIL-OSI Security: Arizona Man Sentenced to 49 Months in Prison for $4.4 Million Conspiracy to Defraud IRS

    Source: US FBI

    NEWARK, N.J. – An Arizona man was sentenced today to 49 months in prison for conspiring to obtain over $4.4 million by defrauding the IRS, U.S. Attorney Philip R. Sellinger announced.

    Walid Khater, 38, of Mesa, Arizona, previously pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the IRS. Walid Khater’s conspirator, Omar Khater, 33, of Fairfield, New Jersey, previously pleaded guilty to the same charges and was sentenced on June 12, 2024, to 57 months in prison.

    According to documents filed in this case and statements made in court:

    Walid and Omar Khater were relatives who worked together and with others to steal victims’ identities, which they used to file false tax returns and fraudulently receive tax refunds from the IRS. They electronically submitted tax documents to the IRS falsely claiming that the individual taxpayers listed on those documents had earned certain income or won thousands – and in some cases millions – of dollars in gambling and lottery winnings. The false filings also claimed tax withholdings on the purported income or gambling winnings that entitled the tax filer to refund payments from the IRS.

    The Khaters and others typically submitted these fraudulent tax filings using the names and personal identifying information of individual taxpayers without their knowledge or permission. The fraudulent filings caused the IRS to pay lucrative tax refunds, totaling $4.49 million, which the Khaters and others directed to various bank accounts that they controlled.

    In addition to the prison term, Judge Martinotti sentenced Walid Khater to three years of supervised release and ordered restitution of $4.49 million.

    U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Jenifer L. Piovesan, and special agents of FBI-Newark, under the direction of Acting Special Agent in Charge Nelson I. Delgado with the investigation leading to the sentencing. He also thanked the NJ Transit Police.

    The government is represented by Assistant U.S. Attorneys Fatime Meka Cano of the Economic Crimes Unit and Katherine M. Romano of the Health Care Fraud Unit in Newark.

    MIL Security OSI –

  • MIL-OSI Security: Disbarred Attorney Admits Defrauding Victims in Ponzi-Like Wire Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – A Somerset County, New Jersey, disbarred attorney today admitted a wire fraud scheme that caused losses of more than $1 million, U.S. Attorney Philip R. Sellinger announced.

    Lawrence Coven, 61, of Hillsborough, New Jersey, pleaded guilty before U.S. District Court Judge Robert Kirsch in Trenton federal court to an information charging him with one count of wire fraud.

    According to documents filed in this case and statements made in court:

    Coven operated and controlled Sunrise Enterprises LLC, which purported to provide financial services to investors. In reality, Coven induced victim investors into sending him funds by falsely representing that he would invest their money through Sunrise in exchange for large profits by providing short-term loans to borrowers who could not obtain standard loans. He falsely guaranteed investors returns of between 10 to 15 percent on their investments and told investors that their investments were risk-free. But instead of investing the money as he promised, Coven diverted investor funds for personal expenses, including utilities, entertainment, real estate, credit card bills, and cash withdrawals. And when investors began asking questions, Coven provided them with false assurances that their money was safe and used money from existing investors to make payments to other investors in a Ponzi-like fashion.

    The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 13, 2025.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.

    The government is represented by Assistant U.S. Attorneys Olta Bejleri and Fatime Meka Cano of the Economic Crimes Unit in Newark.

    MIL Security OSI –

  • MIL-OSI Security: Essex County Man Sentenced to 10 Years in Prison for Unlawful Possession of Ammunition by a Convicted Felon

    Source: US FBI

    NEWARK, N.J. – An Essex County man was sentenced today to 120 months in prison for being a felon in possession of ammunition, Attorney Philip R. Sellinger announced today.

    Lamar McCullough, 30, of Essex County, was convicted by a federal jury on June 7, 2024, of unlawful possession of ammunition by a convicted felon following a trial before U.S. District Judge Katherine Hayden, who imposed the sentence today in Newark federal court.

    According to documents filed in this case and statements made in court:

    On March 5, 2021, members of the Newark Police Department responded to a report of a shooting victim at University Hospital. Surveillance video recorded at 7:22 p.m. showed McCullough shoot a victim four times at close range in the middle of Isabella Avenue in Newark. Four 9-millimeter shell casings were recovered from the area where McCullough discharged the firearm.

    In addition to the prison term, Judge Hayden sentenced McCullough to three years of supervised release.

    U.S. Attorney Philip R. Sellinger credited Newark Police Department, under the direction of Public Safety Director Fritz Fragé, the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.

    The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

    The government is represented by Assistant U.S. Attorneys Jessica Ecker of the Healthcare Fraud Unit and Katherine Calle of the Special Prosecutions Division.

    MIL Security OSI –

  • MIL-OSI Security: Owner of Garfield Counseling Center Sentenced to 15 Months in Prison for Orchestrating Health Care Fraud Scheme

    Source: US FBI

    NEWARK, N.J. – The owner of a New Jersey counseling center was sentenced today to 15 months in prison for her role in a health care fraud scheme involving hundreds of false claims, U.S. Attorney Philip R. Sellinger announced.

    Maria P. Cosentino, 61, of Garfield, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden to an information charging her with participating in a health care fraud scheme. Judge Hayden imposed the sentence today in Newark federal court,

    According to documents filed in the case and statements made in court:

    Cosentino owned Bergen Alliance Counseling Services, which provided counseling services and mental health treatment to children, families, couples, and adults. She admitted that for years she submitted false claims to private health insurance plans for counseling sessions that she never provided. Cosentino falsely claimed that various individuals had received counseling at the center when in fact they had been out of the country, had ceased attending the practice, or had never visited the counseling center at all. The false claims caused insurance plans to issue reimbursement checks to the center even though the individuals had never received any treatment. Cosentino kept the illicit profits, which totaled more than $700,000.

    In addition to the prison term, Judge Hayden sentenced Cosentino to three years of supervised release and ordered her to pay restitution of $708,038.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the guilty plea.

    The government is represented by Assistant U.S. Attorney DeNae Thomas of the Health Care Fraud Unit in Newark.

    MIL Security OSI –

  • MIL-OSI Security: Member of Marion Gardens Jersey City Gang Sentenced to 234 Months in Prison for Racketeering, Violent Crimes

    Source: US FBI

    NEWARK, N.J. – A member of a Jersey City gang associated with the Marion Gardens Housing Complex was sentenced today to 234 months in prison for racketeering, violent crimes in aid of racketeering, drug trafficking, and firearms offenses, U.S. Attorney Philip R. Sellinger announced.

    Jervon Morris, aka “Sticky,” 35, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to racketeering conspiracy and related crimes.

    According to documents filed in this case and statements made in court:

    Morris and his co-defendants are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex, which routinely distributes cocaine and heroin, among other controlled substances, in and around the Marion Gardens Housing Complex. Members and associates of the gang also engaged in acts of violence, including numerous assaults, shootings, and murders, which targeted rival gang members and others. On July 28, 2011, Morris, Kevin Williams, aka “KK,” aka “Kay Kay,” 31, and other members of the Marion Gardens street gang, murdered a victim in the area of Gifford Avenue and Bergen Avenue in Jersey City.

    In addition to the prison term, Judge Cecchi sentenced Morris to three years of supervised release.

    On Feb. 7, 2018, Williams and another member of the Marion Gardens street gang assaulted a victim in the area of Summit Avenue and Magnolia Avenue in Jersey City. Williams was sentenced on Oct. 3, 2024, to 198 months in prison.

    On June 30, 2018, Terick Rogers, aka “Moot,” 32, and two other members of the enterprise shot five people while celebrating “Meech Day” in honor of a deceased fellow gang member. On Aug. 21, 2024, Rogers, was sentenced to 192 months in prison.

    On Jan. 9, 2019, Jakeem Gibson-Madison, aka “Beanz,” 30, and another member of the enterprise, traveled to the area of Grant Avenue and Ocean Avenue to target a rival gang member, at which time three victims were shot at, two of whom were hit. On Aug. 20, 2024, Gibson-Madison was sentenced to 180 months in prison.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the charges.

    This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community.  The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

    The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division for the District of New Jersey in Newark.

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  • MIL-OSI Security: FBI Defeats U.S. Secret Service in Charity Hockey Game

    Source: US FBI

    The FBI won a hard-fought game against its longtime hockey rivals, the U.S. Secret Service, on Saturday night. Most importantly, the game was expected to raise around $20,000 for families of fallen law enforcement officers.

    Despite falling behind early, the FBI’s team rallied to win, 3-2.

    “It was a good, hard-fought battle. It’s always back and forth between our two teams. We know they’re a fast team; so we like to weather the storm with them…We fought back, got a couple goals in the third and took it to them and won,” said Kevin Weinstock, who skates for the FBI team even though he recently left the agency.

    While the on-ice action at Medstar Capitals Iceplex in Arlington, Virginia provided plenty of excitement, two special four-legged visitors stole the show. The FBI’s victim assistance dog, Wally, and retired Secret Service dog, Hurricane, both made appearances at the game. Hurricane participated in the ceremonial puck drop between U.S. Secret Service Chief Operating Officer George Mulligan and FBI Director Christopher Wray.

    The hockey rivalry was put on hold last year, in light of the COVID-19 pandemic. The previously annual tradition dates back to the early 2000s, when then-FBI Director Robert S. Mueller, III, a former hockey player, used to skate with the team in warmups.

    For both the players and the fans, the game offers an opportunity to support their agencies outside of the grueling demands of a typical workday, Weinstock said.

    “I think it gives employees a fun, social event that relates to work, but it’s outside of it,” he said. “It’s something fun you can feel a part of supporting your team.”

    MIL Security OSI –

  • MIL-OSI Security: Melissa Vanek: Anchorage Field Office

    Source: US FBI

    After graduating from the University of California, Berkeley, with a degree in integrative biology and then competing as a professional track and field athlete, I was recruited by the FBI for an intelligence analyst position in the San Francisco Field Office. I worked criminal matters for more than three years before I entered the FBI Academy. I returned to the San Francisco Field Office and spent 12 years as a special agent in the Santa Rosa Resident Agency, working everything from Ponzi schemes to armored car robberies to wine heists to disaster fraud. I am currently coordinating several programs for the Anchorage Field Office.

    Who made a difference in your career? How?

    After 15 years with the FBI, the excitement of being a special agent began to diminish, as I found myself taking my job for granted.

    One day, a colleague handed me a letter that changed everything. The letter was dated April 21, 1972, and it was addressed to a woman named Jane who had expressed interest in becoming an FBI special agent.

    Jane was informed that only men could be employed as special agents, because, as the letter stated: “Due to the diverse situations with which special agents are confronted, many of which are combat in nature, we must employ in that capacity men who are fully qualified and on whom we can rely to discharge effectively under any contingency the full range of duties for which they are responsible.” The letter was signed John Edgar Hoover, Director.

    This letter awakened in me the realization that the professional opportunities I had been afforded were only possible because of those who refused to accept that women were incapable of performing the duties of an FBI special agent. I reflected on how many women, like Jane, received those rejection letters. Instead of conceding defeat, they worked to prove that women undoubtedly belonged among the ranks of FBI special agents. It was not lost on me that in the same year this letter was written, the first two female special agents were accepted into the FBI Academy. I often ponder the impact of Jane’s letter on my career and the careers of all female agents who have contributed to the FBI.

    This letter was a catalyst for me to become a special agent recruiter for the FBI, and I now devote myself to recruiting a diverse range of qualified candidates into the most prestigious law enforcement agency in the world.

    As we now celebrate 50 years of female special agents, Jane’s letter is displayed at my workspace as a reminder of the debt I owe her and so many others for paving the way for not only me, but all past, current, and future female special agents.

    MIL Security OSI –

  • MIL-OSI Security: Former FBI Director Airs Warning About Elder Fraud

    Source: US FBI

    The Websters are among millions of older Americans targeted each year in elder fraud schemes like bogus lottery and romance scams. Fraudsters string along victims with promises of love or riches in exchange for cash advances or assistance moving illegal funds. Losses from these types of scams reach into the hundreds of millions each year and are increasing as the U.S. population ages.

    The Websters’ case was featured on fbi.gov in 2019 and garnered national attention. The couple hopes the new public service announcement (PSA) will remind older people, their families, and caregivers that they need to maintain their guard against sophisticated schemes.

    “Since we have become involved with this issue, we’ve heard sad stories of millions of dollars stolen, lives threatened, and even suicides,” Lynda Webster said. “My husband has been targeted for years. And when one scammer threatened our lives we knew we had to act.”

    The PSA includes archival images of Webster as a Navy officer in World War II and Korea and later as a federal judge and head of the country’s premier intelligence and law enforcement agencies. The scammer who targeted the Websters didn’t know this background, just that Judge Webster was older and might therefore be susceptible to cons that prey on traits like trustworthiness, loneliness, and a yearning for more financial security.

    MIL Security OSI –

  • MIL-OSI Security: Amy Kaskel: Albuquerque Field Office

    Source: US FBI

    I joined the FBI in 1999 and have worked national security and counterintelligence investigations in the New York and Los Angeles offices and at FBI Headquarters. I have also managed human intelligence operations and witness security programs and served as a team leader in the inspection division. In March 2020, I was promoted to assistant special agent in charge of the Albuquerque Field Office.

    What drew you to the FBI?  

    While working as a customs inspector at O’Hare International Airport in Chicago, I met the FBI special agent assigned to the airport. One day he suggested I apply, but I thought all FBI agents were men who had been attorneys, accountants, law enforcement, or military. He explained the FBI was looking for smart, inquisitive people with varied backgrounds and life experiences. 

    I was drawn to the FBI because of the many opportunities, unique travel, interesting training, fascinating overseas assignments, challenging collateral duties, the opportunity to protect the United States, and no more polyester uniform! Now, 23 years later, I am a different person because of the opportunities presented to me in my career and am glad I was encouraged to apply to the FBI.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office and FBI Investigates Suspected Child Sexual Abuse

    Source: US FBI

    ALBUQUERQUE – The FBI is investigating allegations of child sexual abuse involving a minor against a man in Vanderwagen, New Mexico.

    Nolin Leupp, 26, appeared before a federal judge and will remain on conditions of release pending trial, which has not been scheduled, on charges of receiving child sexual abuse material.

    According to court documents, on December 8, 2024, a witness reported a suspected sexual assault involving Leupp and a minor victim. The witness further disclosed concerning communications between Leupp and the victim, including Snapchat messages of a sexual nature and plans to meet late at night.

    During a subsequent interview on December 19, 2024, Leupp admitted to a romantic relationship with the minor. A search of Leupp’s phone revealed four videos of suspected child sexual abuse material, downloaded from Discord and Snapchat.

    If convicted of the current charges, Leupp faces a mandatory minimum of 5 and up to 20 years in prison.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Jesse Pecoraro is prosecuting the case as part of as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

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

    # # #

    MIL Security OSI –

  • MIL-OSI Security: FBI Honors Fallen During 2022 Police Week Events

    Source: US FBI

    As the nation recognizes Police Week, FBI Director Christopher Wray expressed his gratitude to law enforcement officers nationwide and voiced his concern over the growing dangers faced by those who work to keep our communities safe.

    On Monday, the FBI released its annual statistics on law enforcement officers killed in the line of duty. Those numbers show 129 officers were killed in line-of-duty incidents in 2021. Seventy-three of those deaths were felonious.

    “Each and every story is heartbreaking,” Wray said in a video address. “A 30-year Florida deputy murdered one shift shy of retirement. An officer ambushed on his first day on the job, leaving behind a wife and an infant son. A combat veteran and his police dog killed while serving together.”

    Police Week is observed every May and provides an opportunity for law enforcement officers to gather for fellowship events and honor those they lost.

    MIL Security OSI –

  • MIL-OSI Security: T. White: Dallas Field Office

    Source: US FBI

    Prior to joining the FBI, I served as a law enforcement officer with the U.S. Capitol Police for 10 years. I worked as a K9 handler and K9 sergeant before becoming an FBI agent. Since joining the FBI, I have primarily worked organized crime.

    What drew you to the FBI?

    My introduction into law enforcement came at an early age after hearing various stories from my father about his days working as a military police officer. I grew up wanting to be a doctor, however, and went to college to pursue that career. But I found myself more interested in forensic science and took a few graduate courses to further explore that field. Those courses piqued my interest in the FBI, and even though I wasn’t initially selected to be an agent, I was motivated to work even harder to gain relevant experience and reapply. It took me nearly eight years, but I was determined. I contacted the recruiter at my local field office, resubmitted my application, completed the selection process, and was given a class date to begin new agent training at the FBI Academy in Quantico.

    Share the thing you’re most proud of from your FBI career.

    Given the diverse backgrounds within the Bureau, it never occurred to me that I could be the first anything in the FBI. 

    MIL Security OSI –

  • MIL-OSI Security: Kimberly Vagos Blackwood: Boston Field Office

    Source: US FBI

    Born in 1972, the first year women were permitted to be FBI special agents, I started my FBI career as a file clerk in 1996 and became an agent in early 2001. I have worked cases in a number of areas, but have focused on complex financial crimes, health care fraud, and other white-collar investigations.

    What is the best career or life advice you’ve been given?

    In the days and weeks following the terrorist attacks of 9/11, we were all working extremely long hours and not getting a lot of sleep. A few weeks in, I knew I needed to get some exercise, so I snuck out for a quick run. I was feeling guilty and hoping that no one would see me. In the elevator on my way outside, I bumped into a very senior agent. I apologized profusely for sneaking out for a run. 

    MIL Security OSI –

  • MIL-OSI Security: FBI Albuquerque Warns of Government Impersonation Scams

    Source: US FBI

    The FBI Albuquerque Field Office is issuing a public warning about Government Impersonation scams.

    The FBI, along with other federal, state, local, and tribal partners, is working to investigate cases in which scammers are using advanced spoofing scams to steal the public’s hard-earned money.

    According to the FBI’s Internet Crime Complaint Center (IC3), there have been Nationwide reported losses of more than $33 million due to Government Impersonation scams from January through November 2024. While these scams are not new, they have become more advanced and involve networks of criminals. These schemes could be multi-layered and may last several weeks to months until victims realize they are being scammed and their financial accounts have been depleted.

    Special Agent in Charge Raul Bujanda of the FBI Albuquerque Division said, “While the FBI does not want the public to ignore calls that appear to come from law enforcement, be aware that neither the FBI nor any other legitimate law enforcement agency will ever demand cash or gift cards from you or ask you to move your money into an account for safe keeping.”

    Below describes how this scam is typically carried out:

    • Scammers claim to be personnel from the FBI, IRS, U.S. Marshal Service, Secret Service, or other federal agencies or local law enforcement agencies. The scammers “spoof” or fake where they are calling from, so it appears to the victim that they are calling from a legitimate agency.
    • Victims are threatened that a warrant for their arrest has been issued, that they are being implicated in a crime, that their Social Security number is suspended, or that they are simply under investigation and that they must pay a fee or fine to avoid detention.
    • These scammers often demand that the victim act quickly, not get off the phone, and threaten or scare the victim into believing that they will be arrested imminently.
    • Subsequently, some of these scams are much more elaborate, with multiple scammers spoofing different agencies to draw the victim into the scheme. Oftentimes the scammer will send fake documents on what appears to be U.S. Government letterhead to further legitimize the scam and involvement of multiple people.
    • Scammers may also provide victims with phone numbers to call, which lead to an associate of the scammer. This person may tell the victim that they can fix the problem, but that their financial accounts have been “hacked” and the victim should move their money to a secure account number provided by the scammers.
    • The victim is commonly instructed to withdraw money from their bank account and transfer via wire transfer, or deposit into a cryptocurrency kiosk or ATM, or instructed to purchase gift cards and then provide the card information to the fraud actor. Recently, scammers are requesting the victim purchase gold or other precious metals for a courier to pick up.

    A variation of this scam was recently reported in New Mexico:

    A victim received a call from a scammer stating that he worked with The U.S. Marshal Service (USMS) and informed the victim that his social security number had be implicated in a money laundering operation. Following the initial contact, the victim received a subsequent call from a spoofed phone number appearing to be from the local Police Department, this caller confirmed that the victim was in fact under investigation and that he should follow the instructions given by the supposed Marshal. The victim was instructed to withdraw funds from his bank account and deposit them into an ATM. At the time of this scam the ATM was out of service, so the scammer sent someone to pick up the funds from the victim’s residence.

    Tips to Protect Yourself:

    • Know that the U.S. Government and Law Enforcement agencies will not email you or call you unsolicited. Nor will they ever request that you wire money or cryptocurrency, send precious metals, or purchase gift cards to avoid detention or to mitigate an alleged issue with your finances or digital devices.
    • Slow down before taking action. Scammers oftentimes depend on victims to make quick decisions.
    • Always look up your local or federal law enforcement office’s phone number on your own and contact them directly. Do not call the number provided by the caller or allow them to transfer you.
    • Never give out your personal information, including banking information, Social Security number, or other personally identifiable information over the phone to individuals you do not know.
    • Do not click on unsolicited popups, links through text messages, or email links and attachments.
    • Do not contact unknown numbers provided to you in these communications.
    • Do not authorize unknown individuals access to your computer.
    • Do not meet with unknown individuals to deliver cash or precious metals.
    • Be skeptical of individuals representing themselves as officials soliciting donations or demanding payment.

    If you suspect you are a victim of this or any scam, immediately end communications with the subjects and contact law enforcement.

    • If you feel that you are in imminent danger, call 911
    • Contact your financial institution immediately upon suspecting or discovering a fraudulent transfer
    • Report to the FBI at 1-800-CALL-FBI or tips.fbi.gov
    • Submit a complaint to the Internet Crime Complaint Center at ic3.gov

    MIL Security OSI –

  • MIL-OSI Security: Indian Citizen Charged in Multimillion-Dollar Health Care Fraud Scheme

    Source: US FBI

    Owned lab in Everett, WA that billed Medicare $8.7 million for COVID tests that were never legitimately ordered or performed

    Seattle – An Indian national indicted for health care fraud will make his initial appearance today in U.S. District Court in Seattle, announced Acting U.S. Attorney Teal Luthy Miller. Mohammed Asif, 34, was arrested on April 10, 2025, at Chicago O’Hare International Airport while attempting to board an international flight. Asif is charged with health care fraud and conspiracy to commit health care fraud in connection with the operation of American Labworks LLC, a diagnostic testing laboratory in Everett, Washington. The indictment alleges that Asif conspired with others to bill Medicare for COVID-19 tests and other respiratory illness tests that had not been ordered or performed.

    “Medicare provides critical funding for senior citizens’ health care needs, which makes this type of fraud all the more reprehensible,” said Acting U.S. Attorney Miller. “This case stands as an example of how federal law enforcement is working diligently to protect those critical tax dollars from fraud schemes.”

    According to the indictment and an earlier-filed criminal complaint, the Washington Secretary of State has American Labworks being formed in October 2021 and dissolved in March 2025. Washington Department of Health records indicate that its license as a Medical Test Site expired in December 2023. Asif is listed in filings with the state and with Medicare as the owner and director of American Labworks.

    Claims data from April 2024 to December 2024 show that American Labworks billed Medicare more than $8.7 million for laboratory testing services, including for COVID-19 testing. Medicare paid out over $1.1 million to the lab.

    Between June 2024 and March 2025, Medicare received more than 200 complaints from enrollees and others about American Labworks. Many of these complainants reported that Medicare was billed for testing that was never received. For example, one Medicare enrollee noted that Medicare paid American Labworks $545 for COVID-19 tests in August 2023 and March 2024. But the beneficiary had never had any COVID-19 tests on those dates. Multiple Medicare beneficiaries said they too had seen bills for tests that never occurred. Physicians who had allegedly ordered the tests said they had not sent patients to American Labworks, and many patients said they had never heard of the referring physician listed in the records.

    In some instances, the billing records indicated a beneficiary’s testing date of service occurred after other records indicated the beneficiary was dead. And in other instances, the physician who allegedly referred the patient for testing was dead at the time of the date of service.

    Financial records indicate Mohammed Asif received multiple checks and made withdrawals from the American Labworks bank account, which he controlled. In May 2024, he withdrew $260,000 from the American Labworks checking account. Soon after that Asif, who had been in the U.S. on a student visa, retuned to India. He came back to the U.S. in March 2025 as investigators were unraveling the fraud. Prosecutors and special agents with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Federal Bureau of Investigation (FBI) moved quickly to draft the criminal complaint and take Asif into custody. A grand jury then returned the indictment of Asif on April 23.

    Asif is alleged to have conspired with other people to accomplish the fraud. Those coconspirators are not named in the criminal complaint or indictment. The government’s investigation is ongoing.

    “By all appearances, there is nothing legitimate about Mr. Asif’s company.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “Mr. Asif, along with his co-conspirators, used this apparently illegitimate company to fraudulently bill Medicare almost $9 million for tests that were never done. When we receive allegations such as these, the FBI and our partners will aggressively investigate potential fraud against the US taxpayer.”

    “Through this scheme to fraudulently bill Medicare for laboratory testing services never furnished, the defendant diverted taxpayer money that was meant to pay for legitimate medical services,” said Acting Special Agent in Charge Robb Breeden of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to hold accountable those who exploit federal health care programs for their own personal gain.”

    Health care fraud and conspiracy to commit health care fraud are punishable by up to ten years in prison and a fine of up to $250,000.

    The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

    The case is being investigated by HHS-OIG and the FBI.

    The case is being prosecuted by Assistant United States Attorney Philip Kopczynski.

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  • MIL-OSI Security: U.S. Attorney’s Office Secures Plea in Case Involving Sexual Contact with Minors

    Source: US FBI

    ALBUQUERQUE – A Newcomb man pleaded guilty to federal charges of sexual contact with two minors.

    According to court documents, Roderick Bitsilly, 61, an enrolled member of the Navajo Nation, admitted to engaging in sexual contact with Jane Doe 1, a child under 12, between February and August 2014. Additionally, Bitsilly pleaded guilty to similar charges involving Jane Doe 2, also under 12, between September 2019 and September 2020.

    Bitsilly will remain in third-party custody at a halfway house pending sentencing, which has not yet been scheduled. At sentencing, Bitsilly faces up 75 months in prison. Upon his release from prison, Bitsilly will be subject to no less than five years up to life of supervised release and must register as a sex offender.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorney Caitlin L. Dillon is prosecuting the case.

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  • MIL-OSI Security: Schenectady Man Sentenced to More Than 15 Years on Methamphetamine Conviction

    Source: US FBI

    ALBANY, NEW YORK – Ocyris Morgan, age 36, of Schenectady, New York, was sentenced today to 188 months in prison for possessing methamphetamine with the intent to sell it.

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

    Morgan admitted that he intended to sell the 21.4 grams of methamphetamine law enforcement seized from his house on June 1, 2023, and when he overheard agents saying they found between one-half and one ounce of methamphetamine, Morgan corrected them, “21.7, to be exact.”  Morgan also admitted to receiving $10,130 over the course of 12 instances in which he sold a total of 93 grams of methamphetamine and 50 grams of cocaine base to several customers.  He further admitted to possessing a firearm and bullet-proof vest.

    Chief United States District Judge Brenda K. Sannes also imposed a 4-year term of supervised release and ordered Morgan to forfeit the $10,130 he made from the drug sales. 

    The FBI’s Capital District Safe Streets Task Force—made up of FBI Special Agents as well as members of other federal, state, and local law enforcement agencies, including the Schenectady Police Department—investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner prosecuted.

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  • MIL-OSI Security: The Grand Health Care System and 12 Affiliated Skilled Nursing Facilities to Pay $21.3 Million for Allegedly Providing and Billing for Fraudulent Rehabilitation Therapy Services

    Source: US FBI

    Company Admits that Supervisory Officials Falsified Information in Medical Records

    ALBANY, NEW YORK – Strauss Ventures LLC doing business as The Grand Health Care System and 12 affiliated skilled nursing facilities (collectively, the Grand), have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled, or that simply did not occur as billed. Many of the settling facilities are located in upstate and central New York, including in Albany, Oneida, Madison, Columbia, and Herkimer counties.

    “Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said United States Attorney Carla B. Freedman.  “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”

    The settlement resolves allegations that from as early as January 1, 2014 to September 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported. 

    As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.” 

    The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.

    “We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.” 

    The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York nursing home between January 1, 2016 and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there. 

    The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

    “Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”

    “The Grand admitted to providing unnecessary care to our most vulnerable, to include knowingly keeping patients in their facilities and away from their loved ones when they needed them most,” said Craig Tremaroli, Special Agent in Charge of the FBI’s Albay Field Office. “This settlement illustrates the FBI’s commitment to working with our partners to protect federally funded healthcare programs from abuse by companies looking to line their pockets with taxpayer dollars.”

    “As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” stated Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”

    “Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Acting Special Agent in Charge Brian J. Solecki of DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold DoD contractors accountable for their fraudulent activity and ensure America’s service members are not subject to unnecessary risk.”

    The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by two former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:19-cv-1311.

    The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI, Albany Field Office; DCIS, Syracuse Resident Agency, and the New York State Attorney General’s Office investigated the matter. Assistant U.S. Attorney Adam J. Katz and Senior Trial Counsel Christelle Klovers represented the United States.

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  • MIL-OSI Security: Warren County Man Pleads Guilty to Attempted Online Enticement of a Minor

    Source: US FBI

    ALBANY, NEW YORK – Robert Cutter, age 44, of Lake George, New York, pled guilty today to the attempted online enticement of a minor.

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

    Cutter admitted that on June 27, 2023, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year-old girl in an attempt to entice the child into engaging in sexual acts with him.  Cutter also admitted that on that same date, he travelled to a pre-determined location in Warren County, New York, with the intent to engage in sexual acts with the 12-year-old girl.  Cutter was arrested by law enforcement shortly after arriving at the location.

    At sentencing on November 11, 2024, before United States District Mae A. D’Agostino, Cutter faces at least 10 years and up to life in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the smartphone Cutter used to commit his offense.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Cutter will also have to register as a sex offender upon his release from prison.

    This case was investigated by the FBI Child Exploitation Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Warren County Sheriff’s Office.  Assistant U.S. Attorney Allen J. Vickey is prosecuting the case as part of Project Safe Childhood. 

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

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  • MIL-OSI Security: Arkansas Man Admits Traveling to Albany for Sexual Contact with Minor and Transporting Child Pornography

    Source: US FBI

    ALBANY, NEW YORK – Kyle Biswell, age 38, of Prairie Grove, Arkansas, pled guilty today to traveling from Arkansas to Albany, with the intent to engage in illicit sexual contact with a child, and to transporting child pornography in interstate commerce.

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

    Biswell admitted that between January and April 2023, he communicated with an individual he believed was the mother of an 11-year-old girl through an internet-based social networking application and using his cellular phone.  Over the course of those communications, Biswell expressed his interest in engaging in sexual contact with the 11-year-old and ultimately purchased airfare to travel from his home in Arkansas to Albany, with the intent to engage in illicit sexual contact with the child on April 8, 2023.  Upon his arrival in the Capital Region on April 8, 2023, Biswell was arrested by FBI agents, and admitted that he had traveled from Arkansas to Albany for the purpose of engaging in sexual acts with a child he believed to be 11 years old.  Biswell further admitted that he brought child pornography with him on his cell phone.  The cell phone was subsequently searched by the FBI and found to contain numerous videos and images depicting child pornography, including several videos depicting the sexual abuse and rape of children under the age of 5.   

    At sentencing on November 13, 2024, before United States District Judge Anne M. Nardacci, Biswell faces at least 5 years and up to 30 years in prison.  The judge will also be required to impose a term of post-release supervision of at least 5 years and up to a life term.  The court may also impose a fine of up to $250,000, restitution, and forfeiture of the cell phone Biswell used to commit his offenses.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.  Biswell will also have to register as a sex offender upon his release from prison. 

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

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  • MIL-OSI Security: Rutland Man Charged with Unlawful Firearm Possession and Maintaining a Drug Premises

    Source: US FBI

    Burlington, Vermont – The United States Attorney’s Office stated that on July 18, 2024 the federal Grand Jury in Burlington returned an indictment charging Daniel McSwiggan, 51, of Rutland, Vermont, with drug and gun offenses. The two-count indictment alleges that, between late June and early July 2024, McSwiggan possessed two firearms as an unlawful drug user and made his residence available for drug use and distribution. McSwiggan will be arraigned in the coming days.

    According to court records, in late June and early July of this year, McSwiggan possessed two firearms, knowing that he was an unlawful user of cocaine base, and made his residence in Rutland available for use and distribution of cocaine base. Court records also allege that, in the early morning hours of June 24, 2024, McSwiggan shot a rifle at a suspected drug distributor outside of his residence. On July 2, 2024, law enforcement executed a search warrant at McSwiggan’s residence and recovered a Savage Model 10 .308 caliber rifle, a Ruger 10/22 .22 caliber rifle, 282 rounds of ammunition, cocaine base, and drug paraphernalia.

    The United States Attorney emphasizes that the charges in the indictment are accusations only and that the defendant is presumed innocent unless and until proven guilty. If convicted, McSwiggan faces maximum penalties of 15 years in prison and a $250,000 fine for the unlawful firearm possession, and 20 years in prison and a $500,000 fine for making his residence available for drug use and distribution. Any sentence will be determined by the U.S. District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.

    United States Attorney Nikolas P. Kerest commended the investigatory and collaborative efforts of Homeland Security Investigations, the Rutland City Police Department, the Rutland Town Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation and the Vermont State Police.

    The United States is represented in this matter by Assistant U.S. Attorney Corinne M. Smith. McSwiggan is represented by Federal Public Defender Michael Desautels.

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

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  • MIL-OSI Security: Buffalo Man Going Back to Prison on Drug and Gun Charges

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Victor Marshall, 51, of Buffalo, NY, who was convicted of possession with intent to distribute, and distribution of, cocaine and being a felon in possession of a firearm and ammunition, was sentenced to serve 156 months in prison by U.S. District Judge Richard J. Arcara.

    Assistant U.S. Attorney Pierre Richard Antoine, who is handling the case, stated that in June 2014, Marshall was sentenced to serve 130 months in federal prison and five years’ supervised release after being convicted of conspiracy to distribute 500 grams or more of cocaine. As a condition of supervised release, Marshall was ordered not to commit another federal, state, or local crime. In March 2022, Marshall was indicted by a federal grand jury on drug and gun charges, and subsequently admitted that he committed the conduct alleged in the indictment, violating his supervised release.

    The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

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  • MIL-OSI Security: Sex Offender Convicted on New Child Pornography Charge

    Source: US FBI

    ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jordan E. Brodie, 37, of LeRoy, NY, pleaded guilty to possession of child pornography following a previous conviction for possession of child pornography, before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.

    Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in May 2023, Brodie, a convicted sex offender under the active supervision of the Genesee County Probation Department, became involved in a chat application in which he and others traded child pornography. Brodie uploaded at least one of the images to a different platform, which then reported the image to the National Center for Missing and Exploited Children.  An investigation by the New York State Police determined that the upload took place from Brodie’s home in LeRoy. A search warrant was executed at Brodie’s residence during which investigators seized his phone, and the contents of the social media account that uploaded the image. Images of child pornography depicting children less than 12 years old were recovered from both the phone and the social media account.  Some of images included violence against children. Brodie was previously convicted of a child pornography charge in May 2021 in Genesee County, for which he was being actively supervised at the time of the current offense. 

    The plea is the result of an investigation by the New York State Police, under the direction of Major Miklos Szoczei II, the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia and the National Center for Missing and Exploited Children.

    Sentencing is scheduled for October 21, 2024, at 9:15 a.m. before Judge Siragusa.

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  • MIL-OSI Security: Uzbekistan Man Extradited From Ukraine and Arraigned on Charges of Stealing Millions of Dollars in Cryptocurrency

    Source: US FBI

    Buffalo, N.Y.-U.S. Attorney Trini E. Ross announced that Nikita Andreevich Sklyuev a/k/a Valeriy Dorojkin, 37, of Uzbekistan, was extradited from Ukraine and arraigned today on an indictment charging him with wire fraud and fraudulent use of unauthorized access device. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

    Assistant U.S. Attorney Douglas A. C. Penrose, who is handling the case, stated that according to the indictment, in June 2018, Sklyuev submitted a computer software application, “EOSIO Wallet Explorer,” to Apple to be sold through the Apple App Store. The EOSIO Wallet Explorer purported to be a cryptocurrency wallet, but was in fact a malicious computer software application designed to steal the cryptocurrency user’s private key, thereby giving Sklyuev access to the user’s cryptocurrency funds. In September 2018, an individual in the Western District of New York (Victim) purchased the EOSIO Wallet Explorer application and then installed it on his iPhone. Once the Victim entered his private key following the installation, Sklyuev had unauthorized access to the Victim’s cryptocurrency wallet, which contained approximately 2,092,395.5356 EOS cryptocurrency, which at the time was valued at approximately $11.8 million dollars. On September 25, 2018, Sklyuev changed the private key to the Victim’s wallet, which resulted in the Victim losing all control and access to his wallet. In February 2019, Sklyuev transferred the EOS cryptocurrency from the Victim’s wallet to numerous other online wallets that were under his control.

    Sklyuev was arraigned this morning before U.S. Magistrate Judge Jeremiah J. McCarthy and is being held pending a detention hearing on July 3, 2024. Today’s arraignment follows the successful June 20, 2024, extradition of Sklyuev from Ukraine. The Justice Department’s Office of International Affairs worked with Romanian and Ukrainian authorities to secure his arrest and extradition.

    The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the U.S. Marshals Service, under the direction of Marshal Charles Salina.

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

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  • MIL-OSI Security: Oregon Man Arrested for Indecent Exposure After Flight From Oregon to New Hampshire is Diverted to Buffalo

    Source: US FBI

    BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Neil McCarthy, 25, of Oregon, was arrested and charged by criminal complaint with indecent exposure, which carries a maximum penalty of six months in prison and a $5,000 fine.

    Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated according to the complaint, on July 3, 2024, the Niagara Frontier Transit Authority (NFTA) Police were called to Gate 2 at the Buffalo Niagara International Airport, to respond to a report made by an American Airlines flight that a man exposed himself and urinated in the aisle of the aircraft while the plane was in flight. The aircraft was diverted from the original destination of Manchester, New Hampshire, to Buffalo. When the flight landed, an officer boarded the airplane and spoke to a flight attendant, who said that McCarthy had exposed himself and urinated on the flight. McCarthy was taken into custody and escorted off the plane.

    McCarthy made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on his own recognizance.

    The complaint is the result of an investigation by the Niagara Frontier Transit Authority Police, under the direction of Chief Brian Patterson and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.

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

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  • MIL-OSI Security: Former Rochester Firefighter Pleads Guilty to Child Pornography Charges

    Source: US FBI

    ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Brett Marrapese, 32, of Irondequoit, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to distribution and receipt of child pornography, The charges carry a mandatory minimum penalty of five years in prison per count, a maximum of 40 years, and a $250,000 fine.

    Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between January 2016, and June 13, 2023, Marrapese used a cell phone, laptop computer, an email account, and multiple social media and internet chat applications, including Omegle; Kik; Snapchat; and Instagram, to produce, receive, distribute, and possess child pornography. In total, Marrapese received more than 600 images of child pornography that he obtained from others via the internet. He also posed as a teenage boy causing minors to produce and send to him sexually explicit images of themselves. Some of the images that Marrapese distributed and received depicted violence against and sexual abuse of children, infants, and toddlers. 

    The plea is the result of an investigation by the Irondequoit Police Department, under the direction of Chief Scott Peters, and the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction Special Agent-in-Charge Matthew Miraglia.

    Sentencing is scheduled for November 6, 2024, at 1:00 p.m. before Judge Wolford.

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  • MIL-OSI Security: Bronx Tax Preparer Pleads Guilty to Filing Tens of Thousands of False Tax Returns Causing $145 Million in Fraudulent Tax Loss

    Source: US FBI

    Rafael Alvarez Perpetrated and Oversaw One of the Largest Ever Tax Frauds by a Return Preparer

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today the guilty plea of RAFAEL ALVAREZ, a/k/a “the Magician,” to a two-count Superseding Information charging ALVAREZ with one count of conspiracy to defraud the U.S. and steal government funds and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return.  The charges arise from ALVAREZ’s orchestration of a decade-long, $145 million tax fraud scheme to file tens of thousands of federal individual income tax returns that included false information designed to fraudulently reduce the individuals’ tax burden.  As part of today’s guilty plea, Alvarez agreed to pay the Internal Revenue Service (“IRS”) $145 million in restitution and forfeit over $11.84 million in fraudulent proceeds he received from his criminal conduct.  ALVAREZ pled guilty today before U.S. District Judge J. Paul Oetken.

    Acting U.S. Attorney Edward Y. Kim said: “Rafael Alvarez became known as ‘the Magician’ by his customers for his supposed ability to make their tax burden disappear.  But, as today’s guilty plea shows, there was no magic to what Alvarez was doing – he was committing a serious federal crime by falsifying tens of thousands of tax returns and, in the process, depriving the IRS of $145 million in tax revenue.  Today’s guilty plea, in one of the largest ever tax frauds by a return preparer, should serve as an important reminder to tax professionals that this Office will vigorously investigate and prosecute tax offenses.”

    As alleged in the Indictment and Superseding Information and statements made in public filings and court proceedings:

    From at least in or about 2010, up to and including in or about 2020, ALVAREZ was the CEO, owner, and manager of ATAX New York, LLC, also doing business as ATAX New York-Marble Hill, ATAX Marble Hill, ATAX Marble Hill NY, and ATAX Corporation (together, “ATAX”).  ATAX was a high-volume tax preparation company located in the Bronx, New York, which prepared approximately 90,000 federal income tax returns for its customers during this period.  ALVAREZ both prepared tax returns for ATAX customers and recruited, supervised, and directed other ATAX personnel who in turn prepared tax returns for customers.  During this period, ALVAREZ oversaw a sweeping fraudulent scheme, whereby he and his employees submitted false information to the IRS in ATAX customers’ tax returns. This false information, which included, among other things, bogus itemized tax deductions, made-up capital losses, phony business expenses, and fraudulent tax credits, served to fraudulently reduce the customers’ tax liability and increase the customers’ tax refunds from the IRS.

    In total, ALVAREZ oversaw ATAX’s fraudulent submission of tax returns on behalf of customers that deprived the IRS of $145 million in tax revenue.  ALVAREZ was so consistent at falsifying ATAX customer tax returns that he became known to ATAX’s customers as “the Magician.”  Additionally, ALVAREZ agreed as part of his plea agreement that he was a leader of the scheme and attempted to obstruct or impede the administration of justice with respect to the investigation of the tax fraud scheme when he and an ATAX employee made false statements to an IRS Revenue Agent.  ALVAREZ’s operation of ATAX helped the company generate approximately $12 million in fraudulent proceeds over the duration of the fraud.

    *                *                *

    ALVAREZ, 61, of Cortland Manor, New York, pled guilty to one count of conspiracy to defraud the U.S. and steal government funds, which carries a maximum sentence of five years in prison, and one count of aiding and assisting in the preparation of a false and fraudulent U.S. individual income tax return, which carries a maximum sentence of three years in prison.  ALVAREZ is scheduled to be sentenced by Judge Oetken on April 11, 2025.   

    The maximum potential sentences in this case are prescribed by Congress and are 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 IRS, Criminal Investigation, the Federal Bureau of Investigation, and the Treasury Inspector General for Tax Administration in this case.

    This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney David R. Felton is in charge of the prosecution. 

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  • MIL-OSI Security: ‘Incognito’ Market Owner Pleads Guilty for Operating One of the Largest Illegal Narcotics Marketplaces on the Internet

    Source: US FBI

    Rui-Siang Lin Used the Identity of “Pharoah” to Operate Incognito Market, Which Sold More Than $100 Million of Illegal Narcotics to Customers Around the World

    Edward Y. Kim, the Acting United States Attorney for the Southern District of New York, announced today that RUI-SIANG LIN, a/k/a “Ruisiang Lin,” a/k/a “林睿庠,” a/k/a “Pharoah,” a/k/a “faro,” pled guilty to narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication in connection with LIN’s operation and ownership of “Incognito Market,” an online dark web narcotics marketplace that enabled its users to buy and sell illegal narcotics anonymously around the world. LIN pled guilty today before U.S. District Judge Colleen McMahon and is scheduled to be sentenced on March 27, 2025.

    Acting U.S. Attorney Edward Y. Kim said: “Rui-Siang Lin led a prolific online narcotics bazaar that sold more than $100 million of narcotics around the world.  While Lin profited millions of dollars from his sophisticated scheme, the community suffered.  Lin and his “Incognito Market” exacerbated the opioid and fentanyl crisis and put the community in danger.  Lin now faces a lengthy term in prison.”

    According to the allegations contained in the Indictment, Complaint, and statements made in public filings and in public court proceedings:

    Incognito Market was an online narcotics bazaar that existed on the dark web.  Incognito Market formed in October 2020.  Since that time, and through its closing in March 2024, Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamines.  Incognito Market was available globally to anyone with internet access and could be accessed using the Tor web browser on the “dark web” or “darknet.”  LIN operated the Incognito market under the online pseudonym “Pharoah” or “faro.”  As “Pharoah” — the leader of Incognito market — LIN supervised all of its operations, including its employees, vendors, and customers, and had ultimate decision-making authority over every aspect of the multimillion-dollar operation.

    Incognito Market was designed to foster seamless narcotics transactions across the internet and across the world and incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service.  Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

    After logging in with a unique username and password, users were able to search thousands of listings for narcotics of their choice.  Incognito Market sold illegal narcotics and misbranded prescription medication, including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamines, ketamine, and alprazolam. An example of listings on Incognito market is below:

    Listings included offerings of prescription medication that was advertised as being authentic but was not.  For example, in November 2023, an undercover law enforcement agent received several tablets that purported to be oxycodone, which were purchased on Incognito Market.  Testing on those tablets revealed that they were not authentic oxycodone at all and were, in fact, fentanyl pills.

    Each listing on Incognito Market was sold by a particular vendor.  To become an Incognito Market vendor, each vendor was required to register with the site and pay an admission fee.  In exchange for listing and selling narcotics as a vendor on Incognito Market, each vendor paid 5% of the purchase price of every narcotic sold to Incognito Market. That revenue funded Incognito Market’s operations, including paying “employee” salaries and for computer servers.  LIN collected millions of dollars of profits from Incognito.  To facilitate these financial transactions, Incognito Market had its own “bank,” which allowed its users to deposit cryptocurrency on the site into their own “bank accounts.” After a narcotics transaction was completed, cryptocurrency from the buyer’s “bank account” was transferred to the seller’s “bank account,” less the 5% fee that Incognito collected.  The bank enabled buyers and sellers to stay anonymous from each other.  The bank’s graphic interface is pictured below:

    On March 12, 2020, before Incognito Market launched, LIN emailed himself a rough diagram of a darknet marketplace.  That diagram, which is pictured below, contains features consistent with the operation of Incognito Market.

    *                *                *

    RUI-SIANG LIN, 23, of Taiwan, pled guilty to one count of narcotics conspiracy, which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to sell adulterated and misbranded medication, which carries a maximum potential sentence of five years in prison.

    The statutory minimum and maximum sentences are prescribed by Congress and are 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 Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Food and Drug Administration Office of Criminal Investigations, and the New York City Police Department.  

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

    The case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Ryan B. Finkel and Nicholas Chiuchiolo are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: New York City Resident Pleads Guilty to Operating Secret Police Station of the Chinese Government in Lower Manhattan

    Source: US FBI

    Defendant Admitted That He Conspired to Act as an Illegal Agent of the Chinese Government

    BROOKLYN, NY – Today in federal court in Brooklyn, Manhattan resident Chen Jinping pleaded guilty to conspiring to act as an agent of the government of the People’s Republic of China (PRC), in connection with opening and operating an undeclared overseas police station in lower Manhattan for the PRC’s Ministry of Public Security (MPS).  Today’s proceeding was held before United States District Judge Nina R. Morrison. When sentenced, the defendant faces up to five years in prison.

    Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

    “A priority of my Office has been to counteract the malign activities of foreign governments that violate our nation’s sovereignty by targeting local diaspora communities in the United States,” stated United States Attorney Peace.  “Today, a participant in a transnational repression scheme who worked to establish a secret police station in the middle of New York City on behalf of the national police force of the People’s Republic of China has pleaded guilty to conspiracy to act as an illegal agent.  We will continue our efforts to protect the rights of vulnerable persons who come to this country to escape the repressive activities of authoritarian regimes.”

    “Today’s guilty plea holds the defendant accountable for his brazen efforts to operate an undeclared overseas police station on behalf of the PRC’s national police force — a clear affront to American sovereignty and danger to our community that will not be tolerated,” stated Assistant Attorney General Olsen.  “The Department of Justice will continue to pursue anyone who attempts to aid the PRC’s efforts to extend their repressive reach into the United States.”

    “Today, Chen Jinping admitted to his role in audaciously establishing an undeclared police station in the heart of New York City and attempting to conceal the effort when approached by FBI New York,” stated FBI Assistant Director in Charge Dennehy. “This illegal police station was not opened in the interest of public safety, but to further the nefarious and repressive aims of the PRC in direct violation of American sovereignty. The FBI is unwavering in our duty to protect both the freedoms enshrined in the Constitution and the security of our nation from oppressive hostile governments.”

    As alleged in court filings and facts presented at the plea proceeding, Chen Jinping and co-defendant Lu Jianwang conspired to act as illegal agents of the PRC government and also obstructed justice by destroying evidence of their communications with an MPS official (the MPS Official).  While acting under the direction and control of the MPS Official, the defendants worked together to establish the first known overseas police station in the United States on behalf of the Fuzhou branch of the MPS.  The police station—which closed in the fall of 2022—occupied an entire floor in an office building in Manhattan’s Chinatown.  Chen and Lu  helped open and operate the clandestine police station.  None of the participants in the scheme informed the U.S. government that they were helping the PRC government open and operate an undeclared MPS police station on U.S. soil.

    In October 2022, the FBI conducted a judicially authorized search of the illegal police station.  In connection with the search, FBI agents interviewed both defendants and seized their phones.  In reviewing the contents of these phones, FBI agents observed that communications between the defendants, on the one hand, and the MPS Official, on the other, appeared to have been deleted.

    Lu Jianwang has pleaded not guilty to the charges and is awaiting trial.

    The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States  Attorneys Alexander A. Solomon and Antoinette N. Rangel are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

    The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States.  If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.

    The Defendant:

    CHEN JINPING
    Age: 60
    Manhattan, New York

    E.D.N.Y. Docket No. 23-CR-316 (NRM)

    MIL Security OSI –